Value for money and customer satisfaction in classified hotels in Dar-es-salaam

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University of Dar es Salaam
Tourism is the most dynamic and growing industry in the world. Hospitality industry forms a major part of the tourism industry. The rapid growth of tourism and hospitality industry in Tanzania started in mid 1980 when the government liberalized the tourism sector and encouraged private and foreign investments. Some necessary efforts have been exerted in improving the quality of accommodation services. In line with other EAC countries, Tanzania, through the MNRT decided to classify its hotels, starting with Dar-es-Salaam and Coastal regions, as part of the strategies to improve hotel industry and provide value for money services to meet quality expectations of visitors. Aware of the classification of hotels in 5 stars categories in 2009, the researcher’s objective was to make a point assessment to enhance general understanding of value for money and customer satisfaction in these classified hotels in Dar-es-Salaam. Specifically, he wanted to know if customers in classified hotels in Dar-es-Salaam receive value for money services; to find out if customers in the hotels were satisfied with service quality provided; to determine the relationship between overall customer satisfaction and rates of prices charged by these hotels. The study adopted a positivist approach using a descriptive research design in which both quantitative and qualitative approaches were employed. The study was conducted among the classified hotels in Dar-es-Salaam. Out of 66 classified hotels, 8 hotels were selected using simple stratified sampling. 100 customers were consulted using undisguised questionnaire. It was found that classification of hotels had influence on perceived value for money services and that service quality and general quality of hotels had great impact on the overall satisfaction of customers. It was discovered that the rates of prices affected negatively the overall customer satisfaction, but the overall satisfaction was contributed more by service quality and general quality of hotels than value for money which was only one among many determinants of service quality. The researcher recommended hotel managements to improve their service quality and adjust their rates of prices in collaboration with government efforts to improve hotel facilities in the country.
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Customer satisfaction, Money, Classified hotels, Hotels, Dar es Salaam
Seneda, E. G. (2011) Value for money and customer satisfaction in classified hotels in Dar-es-salaam, Master dissertation, University of Dar es Salaam. (Available at