LAUSR

The purpose of this study is to analyse and measure the current service quality of Bahir Dar city hotels and design a house of quality to improve the service quality and competitiveness. SERVQUAL and quality function deployment (QFD) models are employed as a service quality measurement, design and customer satisfaction improvement tools. After prioritising customer needs, competitive assessments of hotel services were done from the customers' perspective using house of quality (HoQ). As a result of the differences between expectations and perceptions, service quality gaps are revealed in all hotel service quality dimensions. Generally, the results revealed that the overall hotels' services quality levels are bellow customers' expectations. According to the findings, technical requirements important to enhance service quality and meet customer satisfaction are identified and prioritised. Finally, a house of quality is designed to improve the service quality and competitiveness of hotels.