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

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  • 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

Suggested Citation

  • Volodymyr Khudo, 2026. "The impact of service quality on customer satisfaction in the hotel and restaurant business," Management and Business Articles, Management and Business, vol. 4(1), pages 16-31, May.
    • Handle: RePEc:bdw:emsesd:v:4:y:2026:i:1:p:16-31
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