The Effect of Services Cape on Customer Loyalty in Ethiopian Hotel Industry

Hotel industry as one of the service providers ‘area is under rising competition to determine that their services are customer centered. The main objective of this study was to examine the effect of services cape on customer loyalty in Ethiopian hotel industry. Quantitative research design was used in this study to test the developed hypothesis. In order to collect primary data, a self-completed questionnaire was distributed for hotel customers’ in Ethiopia. Primary data was collected from all those hotel customers’ who visited and/or stayed at any of the selected star hotel in Addis Ababa, Ethiopia. 400 questionnaires were disseminated and 340 questionnaires were successfully gathered and returned and 321 (80.25%) usable questionnaires were ready for data analysis. The collected data was analyzed by using statistical package for social science (SPSS) version 16.00. The result of this study showed that services cape has a significant positive effecton customer loyalty in Ethiopian hotel industry. Specifically, ambient and design dimensions of Services cape has a significant and positive effect on customer loyalty in the Ethiopian hotel industry. It is recommended that hotel managers need to highly consider hotel services cape and its dimensions in order to achieve loyalty of customers.