Customer satisfaction is the key factor in the formation of a customer‟s wish to return to conduct further business with a service provider (Mittal & Kamakura,
2001). In any event it is likely that especially the highly satisfied customers
will talk to family and friends about their good quality experiences at a hotel or restaurant. Therefore, given what we know about marketing for hospitality businesses success, with the emphasis on price and tangible aspects, we might presume that service quality in South African hotels is under-utilised or shall we say minimalized by hospitality industry managers and owners. If hospitality employees at whatever level are to provide quality service, they need equal access to appropriate education and training. Where a hotel provides the opportunity for employees to use their discretion and gives them greater responsibility and empowers them in the process, higher quality work and service provision will follow. From a research point of view, a review of the current literature reveals very few articles which deal directly with how service quality relates to small hospitality industry businesses such as guest-houses. One older exception, by Reeves and Hoy (1993), draws attention to the fact that the importance from a marketing perspective is to examine how any small business can gain a quality advantage in order to pursue a policy of differentiation in the marketplace. This advantage can only be realistically achieved by maximizing existing strengths in relation to quality service.