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Top1. Introduction
Tourism has emerged as a major contributor to the economy of the nation, as many new destinations have opened, and investment in tourism development has resulted in socioeconomic progress, job creation and infrastructure development. The Euromonitor (2018) country report illustrates that Bangladesh has robust economic growth and is possible to continue to do so, as strong consumption supports the economy. There is a shift in concentration in the last several years from luxury to midmarket budget hotels with respect to service quality and customer loyalty. This trend has created a new opportunity for the development of the hospitality industry (Hospitality India, 2014). By 2024, international tourist arrivals are forecasted to 611,000 generating expenditure of BDT 15.5 billion. Travel and Tourism’s contribution to total national investment will rise from 1.5% in 2014 to 1.6% in 2024 (Sanjay & Mallika, 2015).
Many of these tourists undertake thrill-laden journeys throughout the year. Online-savvy backpackers are looking for fresh experiences and are interested in unexplored locations. They obtain tour-related guidelines from social media. On the other hand, domestic tourists specially the ordinary middle class people are mostly remained home centered; high expenditures also discourage many from visiting many expensive places (The Financial Express, 2018).
Xie & Chaipoopirutana (2014) emphasize that the vital to a hotel’s accomplishment is tourists’ satisfaction. Therefore, budget hoteliers need to promote their hotels as well as their products and services and improve local tourists’ satisfaction. Additionally, many tourists are anxious about their budget and saving their money. They prefer to “use less to enjoy more” (Tan, 2014). As there are no statistical (either government or private) data available on how many budget hotels there are in Bangladesh, the researcher cannot share an exact number. Although five-star hotels in Bangladesh draw many loyal customers, budget hotels cannot yet to do so. They cannot even fully satisfy their customers. As the number of budget hotels grows, hoteliers face more competition to satisfy their customers, especially domestic tourists, who now have many options from which to choose. According to Jana & Chandra (2016), customer satisfaction has turn into a significant aspect of the hotel industry. Unlike other industries, the hotel industry success depends on customer retention. If customers are not satisfied by the services they get from the hotel, they will look for better services somewhere else (Jana & Chandra, 2016).
Though a growing concentration on budget hotels has been roused among domestic tourists, but the significant factors for the success of this area in Bangladesh were still to find like China (Wen et al., 2009). To fill this research gap, the researcher tries to find the factors that affect customer satisfaction in budget hotels in Bangladesh. A literature review was performed as part of this procedure; primary data has been collected from 350 respondents in different budget hotels in Bangladesh. Analysis of the primary data was performed by using SPSS version 24. We identified the measurement and conceptual models of this study by using structural equation modeling (AMOS 24.0 software). Furthermore, the research will contribute expressively to the hospitality industry; the outcome can be used to improve the service quality of budget hotels in Bangladesh, as their customers expect less service quality and more price-related offers. This study aims to provide practical contributions to the budget hotels and other tourism sectors. Domestic and international companies can beneðt from the results generated from its results.
Very few studies have been performed to identify the factors that are necessary to satisfy the customer in a budget hotel. No specific components were identified in this regard. Hence, through this research, the author sets the following objectives for this study:
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Which determinants (product, price, place, people, service quality) satisfy the customers in budget hotels in Bangladesh?
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What is the significant relationship between price and customer satisfaction in budget hotels in Bangladesh?