Ensuring positive feedback: Factors that influence customer satisfaction in the contemporary hospitality industry

• We examine the extent to which certain hotel features affect customer satisfaction in the European hospitality industry.
• Data were collected from one of the leading online hotel reservation service's systems.
• After controlling for the hotel classification, we identify eight additional factors that affect customer satisfaction.
• Our findings provide assistance to hotel managers in determining the optimal allocation of scarce financial resources.

This study provides insight into the hotel characteristics that have a significant association with customer satisfaction. Data related to a sample of 6768 hotels located in 47 capital cities in Europe are analysed by using a linear mixed model technique. The results confirm the findings of previous studies, which state that hotel star rating is the single most important factor that influences customer experience. Furthermore, the presence of air-conditioning devices in rooms, a bar located within the hotel area, access to Wi-Fi Internet free of charge, membership in a branded hotel chain and price have significant positive associations with customer satisfaction (ceteris paribus). Variables that appear to be adversely associated with customer satisfaction are distance from the city centre, size of the hotel, and general hotel price level in the city where the hotel is located.