IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i10p473-d1502316.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Michalis Skordoulis & Angelos-Stavros Stavropoulos & Aristidis Papagrigoriou & Petros Kalantonis, 2024. "The Strategic Impact of Service Quality and Environmental Sustainability on Financial Performance: A Case Study of 5-Star Hotels in Athens," JRFM, MDPI, vol. 17(10), pages 1-15, October.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:10:p:473-:d:1502316
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/10/473/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/10/473/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oliver, Richard L & DeSarbo, Wayne S, 1988. "Response Determinants in Satisfaction Judgments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(4), pages 495-507, March.
    2. Ashley S. Otto & David M. Szymanski & Rajan Varadarajan, 2020. "Customer satisfaction and firm performance: insights from over a quarter century of empirical research," Journal of the Academy of Marketing Science, Springer, vol. 48(3), pages 543-564, May.
    3. Gurel Cetin, 2020. "Experience vs quality: predicting satisfaction and loyalty in services," The Service Industries Journal, Taylor & Francis Journals, vol. 40(15-16), pages 1167-1182, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diogo Lima & Ricardo F. Ramos & Pedro Miguel Oliveira, 2024. "Customer satisfaction in the pet food subscription-based online services," Electronic Commerce Research, Springer, vol. 24(2), pages 745-769, June.
    2. Andreas Herrmann & Michael D. Johnson, 1999. "Die Kundenzufriedenheit als Bestimmungsfaktor der Kundenbindung," Schmalenbach Journal of Business Research, Springer, vol. 51(6), pages 579-598, June.
    3. Nenycz-Thiel, Magda & Romaniuk, Jenni, 2011. "The nature and incidence of private label rejection," Australasian marketing journal, Elsevier, vol. 19(2), pages 93-99.
    4. Hsu, Chia-Lin & Chang, Chi-Ya & Yansritakul, Chutinart, 2017. "Exploring purchase intention of green skincare products using the theory of planned behavior: Testing the moderating effects of country of origin and price sensitivity," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 145-152.
    5. Chih-Hsing Liu & Quoc Phong La & Yen-Ling Ng & Rullyana Puspitaningrum Mamengko, 2023. "Discovering the Sustainable Innovation Service Process of Organizational Environment, Information Sharing and Satisfaction: The Moderating Roles of Pressure," Sustainability, MDPI, vol. 15(14), pages 1-26, July.
    6. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    7. Babin, Barry J. & Griffin, Mitch, 1998. "The nature of satisfaction: An updated examination and analysis," Journal of Business Research, Elsevier, vol. 41(2), pages 127-136, February.
    8. Hwanyoung Kim & Sunran Jeon & Jongheon Kim, 2008. "ASP effects in the small-sized enterprise: the case of the Bizmeka service from Korea Telecom," Service Business, Springer;Pan-Pacific Business Association, vol. 2(4), pages 287-301, November.
    9. Friman, Margareta, 2004. "The structure of affective reactions to critical incidents," Journal of Economic Psychology, Elsevier, vol. 25(3), pages 331-353, June.
    10. Vikas Mittal & Kyuhong Han & Carly Frennea & Markus Blut & Muzeeb Shaik & Narendra Bosukonda & Shrihari Sridhar, 2023. "Customer satisfaction, loyalty behaviors, and firm financial performance: what 40 years of research tells us," Marketing Letters, Springer, vol. 34(2), pages 171-187, June.
    11. Ozgul Cetin & Fethiye Erbay, 2021. "Gamification Practices in Museums," Journal of Tourismology, Istanbul University, Faculty of Economics, vol. 7(2), pages 265-276, December.
    12. Ikrame Selkani, 2018. "Festival Attractiveness Literature Review," International Journal of World Policy and Development Studies, Academic Research Publishing Group, vol. 4(9), pages 89-97, 11-2018.
    13. Taher, Ahmed & Leigh, Thomas W. & French, Warren A., 1996. "Augmented retail services: The lifetime value of affection," Journal of Business Research, Elsevier, vol. 35(3), pages 217-228, March.
    14. Chao-Hung Wang & Li-Chang Hsu & Shyh-Rong Fang, 2009. "Constructing a relationship-based brand equity model," Service Business, Springer;Pan-Pacific Business Association, vol. 3(3), pages 275-292, September.
    15. Svenja Damberg & Yide Liu & Christian M. Ringle, 2024. "Does culture matter? Corporate reputation and sustainable satisfaction in the Chinese and German banking sector," Journal of Marketing Analytics, Palgrave Macmillan, vol. 12(1), pages 6-24, March.
    16. Edith Onowe Odia & Simon Ayo Adekunle, 2020. "Determinants Of Customer Loyalty To Mobile Phone Brands," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(special), pages 44-54, June.
    17. Li, Yi & Fumagalli, Elena, 2022. "Spoiled Rotten: How and When Discontinuation of Repetitive and Regular Delight Offers Increases Customer Desire for Revenge," Journal of Retailing, Elsevier, vol. 98(3), pages 412-431.
    18. Filippi, C. & Guastaroba, G. & Speranza, M.G., 2021. "On single-source capacitated facility location with cost and fairness objectives," European Journal of Operational Research, Elsevier, vol. 289(3), pages 959-974.
    19. Antioco, Michael & Coussement, Kristof, 2018. "Misreading of consumer dissatisfaction in online product reviews: Writing style as a cause for bias," International Journal of Information Management, Elsevier, vol. 38(1), pages 301-310.
    20. Wang, Jessie J. & Lalwani, Ashok K., 2019. "The distinct influence of power distance perception and power distance values on customer satisfaction in response to loyalty programs," International Journal of Research in Marketing, Elsevier, vol. 36(4), pages 580-596.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:10:p:473-:d:1502316. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.