Management and Business
e-ISSN 3041-2420 | UDC 33
|
EN
Submit an article →
← Vol. 4, No. 1, 2026

The impact of service quality on customer satisfaction in the hotel and restaurant business

Volodymyr Khudo

Abstract

The aim of the study was to comprehensively substantiate the impact of service quality on customer satisfaction and the financial performance of the hotel and restaurant business in Ukraine, with an emphasis on postwar transformations and the growth of competitiveness in the industry. The methodological basis included economic and statistical and correlation analysis, comparison, content analysis of reviews and ratings of Ukrainian hotels on the online platforms Booking.com and TripAdvisor. The analysis used data from the State Tax Service of Ukraine and analytical materials from the “National Tourism Organisation of Ukraine” public association. Thanks to a systematic approach, key trends were studied: the share of the hospitality sector in Ukraine’s gross domestic product increased from 1.5% in 2019 to 11.6% at the end of 2024. It was also established that revenues from tourist tax, after peaking at UAH 235.4 million in 2021 and falling sharply in 2022 to UAH 178.9 million and UAH 107.1 million at the end of 2024, recovered by 33%, reaching UAH 142.6 million in the first half of 2025. It was found that in 2024, the average hotel occupancy rate peaked in the Carpathians, reaching 54.6%, exceeding the 2023 figure (54.4%), and the average price per room in Kyiv in January 2025 was UAH 2,236, which is 14% higher than in the same period in 2024. A correlation analysis of monthly occupancy rates and average room rates for the period from January 2024 to February 2025 was conducted, confirming the impact of high service quality on business profitability. An analysis of Ukrainian hotel ratings on Booking.com and TripAdvisor showed that establishments with higher ratings have higher occupancy rates and the ability to set higher prices. The results can be used to develop strategies for improving service quality, digitising processes and refining pricing policies, which will help strengthen the financial stability and long-term competitiveness of Ukraine’s hotel and restaurant sector

Keywords:
financial efficiency; tourist tax; hospitality industry; correlation analysis; pricing policy

References

  1. Abdullah, O., Sufi, T., & Kumar, S. (2022). Service quality and its influence on customer satisfaction and customer loyalty in the restaurants of five-star hotels. African Journal of Hospitality, Tourism and Leisure, 11(6), 2173-2189. doi: 10.46222/ajhtl.19770720.349.
  2. Ahmed, S., Al Asheq, A., Ahmed, E., Chowdhury, U.Y., Sufi, T., & Mostofa, M.G. (2022). The intricate relationships of consumers’ loyalty and their perceptions of service quality, price and satisfaction in restaurant service. The TQM Journal, 35(2), 519-539. doi: 10.1108/TQM-06-2021-0158.
  3. Al-Gasawneh, J.A., Anuar, M.M., Dacko-Pikiewicz, Z., & Saputra, J. (2021). The impact of customer relationship management dimensions on service quality. Polish Journal of Management Studies, 23(2), 24-41. doi:10.17512/pjms.2021.23.2.02.
  4. Amissah, E.F., Addison-Akotoye, E., & Blankson-Stiles-Ocran, S. (2021). Service quality, tourist satisfaction, and destination loyalty in emerging economies. In Marketing tourist destinations in emerging economies: Towards competitive and sustainable emerging tourist destinations (pp. 121-147). Cham: Springer International Publishing. doi: 10.1007/978-3-030-83711-2_6.
  5. Bayad, J.A., Bayar, G., Othman, B.J., Ahmed, S.A., Ismael, N.B., Hamza, P.A., Aziz, H.M., Sabir, B.Y., Sorguli, S., & Anwar, G. (2021). Hotel service quality: The impact of service quality on customer satisfaction in hospitality. International Journal of Engineering, Business and Management, 5(3), 14-28. doi: 10.22161/ijebm.5.3.2.
  6. Biswas, A., & Verma, R.K. (2022). Augmenting service quality dimensions: Mediation of image in the Indian restaurant industry. Journal of Foodservice Business Research, 26(3), 496-527. doi: 10.1080/15378020.2022.2027198.
  7. Booking.com. (n.d.a). Capsule Hotel Constellation 89. Retrieved from https://www.booking.com.
  8. Booking.com. (n.d.b). Emily Resort. Retrieved from https://tinyurl.com/2ruppec9.
  9. Booking.com. (n.d.c). F&B Spa Resort. Retrieved from https://www.booking.com.
  10. Booking.com. (n.d.d). Hotel Complex Ukraine. Retrieved from https://tinyurl.com/5h48y6k4.
  11. Booking.com. (n.d.e). Hotels in the most popular regions of Ukraine. Retrieved from https://tinyurl.com/chyzsjjc.
  12. Booking.com. (n.d.f). Mountain Residence Wellness & SPA. Retrieved from https://www.booking.com.
  13. Booking.com. (n.d.g). Hotel France. Retrieved from https://surl.li/wliane.
  14. Booking.com. (n.d.h). Premier Hotel Odesa. Retrieved from https://surl.li/flweml.
  15. Booking.com. (n.d.i). Motel. Retrieved from https://tinyurl.com/ycye35x2.
  16. Booking.com. (n.d.j). Amsterdam. Retrieved from https://tinyurl.com/33k4eu5e.
  17. Booking.com. (n.d.k). Alexandria Hotel. Retrieved from https://tinyurl.com/54nj9vcs.
  18. Booking.com. (n.d.l). Palm. Retrieved from https://tinyurl.com/4f9wsmwt.
  19. Candra, P., Mahaputra, M.R., & Mahaputra, M.R. (2023). Service quality and customer satisfaction have an impact on increasing hotel room occupancy ratio: Literature review study. Greenation International Journal of Tourism and Management, 1(4), 400-412. doi: 10.38035/gijtm.v1i4.127.
  20. Dmitrishin, B. (2023). Innovations as a determining factor in the development of hotel and restaurant business. Central Ukrainian Scientific Bulletin. Economic Sciences, 9(42), 58-66.
  21. Gushtan, T.V., Domyshche-Medianyk, A.M., Kaganets-Gavrilko, L.P., & Talapa, S.Y. (2025). Innovative technologies in restaurant management: Digital technologies and process automation. Scientific Notes of Lviv University of Business and Law, 44, 194-201.
  22. Harif, M.A.A.M., Nawaz, M., & Hameed, W.U. (2022). The role of open innovation, hotel service quality and marketing strategy in hotel business performance. Heliyon, 8(9), article number e10441.
  23. Horwath HTL. (2021). Ukraine hotel market & Covid-19 impact. Retrieved from https://horwathhtl.com.
  24. Hospitality Financial and Technology Professionals. (2024). Ukraine’s Hotel Market: Adapting to the realities of today and looking for new opportunities. Retrieved from https://www.hospitalitynet.org/news/4122551/ukraines-hotelmarket-adapting-to-the-realities-of-today-and-looking-for-new-opportunities.
  25. ISO 9001. (2025). Quality management systems. Retrieved from https://www.iso.org.
  26. Kurakin, O.B. (2024). Development of the concept of quality service of a hotel enterprise. Scientific Notes of the Vernadsky Taurida National University. Series: Economics and Management, 35(74(4)), 1-10. doi: 10.32782/2523-4803/74-4-1.
  27. Mazur, V. (2025). Psychological factors of service efficiency in the hospitality sector. Economy and Society, 76. doi: 10.32782/2524-0072/2025-76-56.
  28. Mendocilla, M., Miravitlles Matamoros, P., & Matute, J. (2021). QUICKSERV: A service quality assessment tool for the quick-service restaurant industry. British Food Journal, 123(13), 241-259. doi: 10.1108/BFJ-12-2020-1108.
  29. Minich, I. (2025). Mechanisms for adapting international experience in increasing labour productivity in the hotel and restaurant business of Ukraine. Restaurant and Hotel Consulting. Innovations, 8(1), 132-144. doi: 10.31866/2616-7468.8.1.2025.334864.
  30. Mo, Y., & Borbon, N.M.D. (2022). Interrelationship of Total Quality Management (TQM), job satisfaction and organizational commitment among hotel employees in Zhejiang and Hainan provinces in China towards a sustainable development framework. International Journal of Research, 10(3), 1-16. doi: 10.5861/ijrsm.2022.31.
  31. National Tourism Organisation of Ukraine. (2024). Strategic roadmap “Recovery of small and medium-sized businesses in the tourism and hospitality sector in 2023-2033”. Retrieved from https://drive.google.com/file/d/1qN0Uu2j4FmGA-6iZ3eIVsRWUsOG1F59W/view.
  32. Pavlenchyk, A., & Tsizdyn, N. (2025). Strategies for managing foreign economic activity of tourism enterprises in the Lviv Region as a factor in shaping their competitiveness. Development Management, 24(1), 42-56. doi: 10.63341/devt/1.2025.42.
  33. Ribas Hotels Group. (2024). 2024 Ukrainian hotel market overview. Retrieved from https://ribashotelsgroup.ua.
  34. Rogova, N., & Onishchenko, O. (2024). The benefits of innovation to improve the quality of service in hotels and restaurants. Economy and Society, 68. doi: 10.32782/2524-0072/2024-68-86.
  35. Rusavska, V., & Neilenko, S. (2022). Quality as a determining factor in meeting the needs of consumers of products and services of the restaurant business. Restaurant and hotel consulting. Innovations, 5(1), 148-158. doi: 10.31866/2616-7468.5.1.2022.260890.
  36. Sereda, N. (2025). The impact of cultural characteristics on service organization in the hotel and restaurant business in Ukraine. Social Development: Economic and Legal Issues, 1, 64-71. doi: 10.70651/3083-6018/2025.1.08.
  37. Singh, S., Singh, G., & Dhir, S. (2024). Impact of digital marketing on the competitiveness of the restaurant industry. Journal of Foodservice Business Research, 27(2), 109-137. doi: 10.1080/15378020.2022.2077088.
  38. State Tax Service of Ukraine. (2025). Kyiv and Lviv region are the most popular tourist regions: Their budgets account for 43% of the total tourist tax for the first half of the year. Retrieved from https://tax.gov.ua/en/mass-media/news/917930.html.
  39. The State Agency for Tourism Development of Ukraine. (2025). Statistics. Retrieved from https://www.tourism.gov.ua/en/statistics.
  40. Tokareva, V.I., Kravchuk, T.V., & Goryunova, K.A. (2024). Innovative technologies in the hotel and restaurant business: impact on management efficiency and quality of service. International scientific journal Internauka. Series: Economic Sciences, 10(2), 32-38.
  41. Tripadvisor. (n.d.a). Hotel France. Retrieved from https://www.tripadvisor.com/Hotel_Review-g940873-d9794984-Reviews-Hotel_France-Vinnytsia_Vinnytsia_Oblast.html.
  42. Tripadvisor. (n.d.b). Premier Hotel Odesa. Retrieved from https://tinyurl.com/5xfwkwuj.
  43. Tripadvisor. (n.d.c). Senator Maidan. Retrieved from https://tinyurl.com/4enxe3k7.
  44. Tripadvisor. (n.d.d). Mountain Residence. Retrieved from https://tinyurl.com/mbudyhtv.
  45. Tripadvisor. (n.d.e). F&B Spa Resort. Retrieved from https://tinyurl.com/pu4e47u4.
  46. Tripadvisor. (n.d.f). Hotel Ukraina. Retrieved from https://tinyurl.com/5n7dc5fn.
  47. Tripadvisor. (n.d.g). Baczewski Restaurant. Retrieved from https://tinyurl.com/268uufnb.
  48. Tripadvisor. (n.d.h). BAO Modern Chinese Cuisine. Retrieved from https://tinyurl.com/nyppdezj.
  49. Tripadvisor. (n.d.i). Dacha. Retrieved from https://tinyurl.com/2wm97n3x.
  50. Tripadvisor. (n.d.j). Kanapa Restaurant. Retrieved from https://tinyurl.com/337h6h9w.
  51. Tripadvisor. (n.d.k). Fratelli Ristorante & Enoteca. Retrieved from https://tinyurl.com/55srr9mh.
  52. Tripadvisor. (n.d.l). Terrace. Sea View. Retrieved from https://tinyurl.com/r3vbx4e6.
  53. Tripadvisor. (n.d.m). Emily Resort. Retrieved from https://tinyurl.com/ydk32uxz.
  54. Tripadvisor. (n.d.n). Hotel Constellation 89. Retrieved from https://tinyurl.com/vecxadpm.
  55. Tripadvisor. (n.d.o). Capsule Hotel Constellation 89. Retrieved from https://www.tripadvisor.com/Hotel_Review-g295377-d26840571-Reviews-Capsule_Hotel_Constellation_91-Lviv_Lviv_Oblast.html.
  56. World Tourism Organization. (2018). Tourism for development – volume I: Key areas for action. doi: 10.18111/9789284419722.
  57. Yeong, S.N., Knox, D., & Prabhakar, G. (2022). Customer satisfaction and loyalty in Malaysian resort hotels: The role of empathy, reliability and tangible dimensions of service quality. International Journal of Services and Operations Management, 41(4), 444-462. doi: 10.1504/IJSOM.2022.122922.
  58. Zavarika, H. & Zelenko, O. (2024). Analysis of hospitality sphere competitiveness in Ukraine on the basis of social dialogue. European Journal of Tourism, Hospitality and Recreation, 14(1), 99-111. doi: 10.2478/ejthr-2024-0007.
  59. Zeithaml, V.A., Bitner, M.J., & Gremler, D.D. (2017). Services marketing: Integrating customer focus across the firm (7th ed.). New York: McGraw-Hill Education.

Suggested citation

Khudo, V. (2026). The impact of service quality on customer satisfaction in the hotel and restaurant business. Management and Business, 4(1), 16-31. https://doi.org/ 10.59214/mb/1.2026.16