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This is a fact that loyal customers not only use the services of the hotel frequently but also suggest the services to other potential clients. It is obvious that loyal customers can guarantee the life of the business in the hotel industry. The theoretical background of the loyalty in the hotel industry indicates that loyalty is a consequence of hotel service quality. The main purpose of this study is to investigate how the service quality ends in loyalty in hotel industry in Iran. Review on the literature revealed that there are some factors between service quality and loyalty. In other words, high service quality can enhance the perceived value and customer satisfaction. Furthermore, this is the satisfaction that increases the loyalty of the clients. This study considers five dimensions of SERVQUAL instrument as factors of service quality in hotel industry which have been applied in similar research successfully. The hypotheses are tested with a convenience data collection approach using data from clients of four Iranian hotels. Findings indicated that some service quality dimensions significantly affect the perceived value. Furthermore, dimensions of service quality and also the perceived value directly influence satisfaction. Finally, satisfaction significantly enhances the loyalty.

How Does Service Quality Lead to Loyalty in the Hotel Industry in Iran