The Strategic Impact of Service Quality and Environmental Sustainability on Financial Performance: A Case Study of 5-Star Hotels in Athens

Michalis Skordoulis (), Angelos-Stavros Stavropoulos, Aristidis Papagrigoriou and Petros Kalantonis
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Michalis Skordoulis: Department of Tourism Management, University of West Attica, Egaleo Park Campus, GR-12243 Egaleo, Greece
Angelos-Stavros Stavropoulos: Department of Early Childhood Education and Care, University of West Attica, Egaleo Park Campus, GR-12243 Egaleo, Greece
Aristidis Papagrigoriou: Department of Tourism Management, University of West Attica, Egaleo Park Campus, GR-12243 Egaleo, Greece
Petros Kalantonis: Department of Tourism Management, University of West Attica, Egaleo Park Campus, GR-12243 Egaleo, Greece

JRFM, 2024, vol. 17, issue 10, 1-15

Abstract: This study explores the impact of guest satisfaction on the financial performance of 5-star hotels, with a focus on both service quality and environmental sustainability. The purpose of the research is to understand how improvements in key satisfaction dimensions influence hotel profitability, as measured by EBITDA, ROA, and ROE. Satisfaction was measured across SERVQAUL dimensions and the dimension of environmental sustainability. The data were analyzed using the Multicriteria Satisfaction Analysis (MUSA) method and linear regression models to determine the effect of satisfaction on financial performance. Results indicate that responsiveness is the most important factor for guests, while environmental sustainability ranks high in importance but shows lower satisfaction scores. The findings suggest that investing in both service quality and sustainability can significantly enhance a hotel’s financial returns. The study concludes that hotel managers should prioritize improvements in environmental sustainability and responsiveness to optimize guest satisfaction and financial performance.

Keywords: service quality; customer satisfaction; environmental sustainability; financial performance; SERVQUAL; multicriteria analysis (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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