Research by Davidson (2003) suggests that there is a positive relationship between organisation climate and
customer satisfaction, indicating the benefit of identifying the extent to which employees’ perceptions of customer
satisfaction and customers’ reports of satisfaction match.National studies (Davidson, 2003) on hotel service quality
as measured by customer satisfaction levels have been predictive of hotel performance. For example, research by
Davidson et al. (2002) found in a study of 1443 hotel employees of 14 Australian hotels that there was a causal
relationship between organisational climate, employee perceptions of customer satisfaction and revenue per
available room (RevPAR). Organisational climate accounted for a 30% of the variation in the employee
perception of customer satisfaction. Furthermore, employee perception of customer satisfaction accounted for a 23%
of the variation in the RevPAR between hotels. This supports the importance of focusing on employee satisfaction
levels through the use of performance measurement frameworks that recognise factors such as ‘‘learning and
growth’’.