Customer satisfaction and customer retention are of prime significance in hospitality industry. Satisfying customers in this competitive and homogeneous market is very difficult and then retaining him for long run and sustainability is even more challenging. Every customer has a different set of needs and requirements and it varies according to the demographics. In this paper researcher has made an attempt to investigate the relationship between demographic variables and customer satisfaction and customer retention. Cross tabulation and Pearson Chi square test was applied and it was found that there is varied impact of demographic variables on customer satisfaction and customer retention.