The role of a Customer-Oriented Service Culture in influencing Customer Retention in the Hotel Industry

Abstract

Abstract The purpose of this study was to assess the influence of customer-oriented service culture on customer retention in the Hotel Industry in Rwanda. The study followed a mixed methods design comprising of descriptive, comparative and correlation research designs. A questionnaire survey was applied to 152 resident guests in 7 of the star rated hotels in Kigali city. The study revealed an average rating of customer orientation practices across the categories of hotels studied. The rating on customer retention was average for lower rated hotel categories, but high for the higher star rated hotels. Lack of strong bonds and true customer loyalty was noted in hotels of lower grade. Positive and moderately significant relationship between customer orientation practices and customer retention was evident. Deficiencies were noted across the customer orientation practices assessed which included development of customer-oriented culture, management of staff and designing service processes for quality service delivery.

Keywords: Service culture, customer retention, hotel industry, customer orientation, Rwanda