Because of the assumption that satisfied employees will create
satisfied and loyal customers, which will result in higher sales and,
therefore, higher financial returns, service companies have been
allocating significant resources for employee and customer satisfaction
and retention. However, some researchers raise serious
concerns about the heavy emphasis placed on both employee
satisfactionandcustomer satisfactionandwhether ornot they relate
to bottom-line performance (Bernhardt et al., 2000; Zeithaml et al.,
1990). Gursoy and Swanger (2007) suggest that in hospitality and
tourism industry attention to service and customer satisfaction is
considered to be a ‘‘given’’ factor,which is an expected and a natural
part of day-to-day operations. Hospitality and tourism companies
cannot survive without satisfied customers; however, having
satisfied customersmay not guarantee the success of any hospitality
and tourism business. In order to succeed, a company has to do a
better job in creating satisfactory experiences for both employees
and customers than its competitors. Even though both customer
satisfaction and employee satisfaction and their retention have been
studied extensively, impacts of employee satisfaction and customer
satisfaction on financial performance measures have not received
much attention.