Work Environment, Service Quality and Customer Retention in Guesthouses in Uganda; Case of Kampala District

Abstract

This study sought to examine the relationship between work environment, service quality and customer retention in guesthouses. The study was cross sectional in that both quantitative and qualitative techniques were used. Factor analysis was carried out and five service quality dimensions were derived. Stratified sampling and later simple random sampling were employed so that good results could be got. The observation method was used to complement on the applied study tools. The results revealed that customers’ perception of the service quality in Kampala Guesthouses fell short of their expectations hence most of them were dissatisfied. The reasons for the above were failure by guesthouses to empower their staff in terms of quality delivery; unfavorable working environment characterized by long hours of work, low pay, job insecurity unfair treat, employment of untrained staff and relatives and a lot of intimidation by managers yet these are the very people who handle customers and provide the service. The study recommended critical empowerment of staff in terms of quality delivery and improvement of the working environment if they are to deliver quality service to customers. Critical areas should be staff training, remuneration, respect, motivation, renovation and repair of buildings, benchmarking, career development and job security.

Keywords: Service quality, Work environment, Guesthouse, Customers, Tourism and hospitality