INTRODUCTION
The service industry exhibits distinct features that
are not shared in the manufacturing industry. Many
service organizations are profit-earning business
enterprises such as hotels, restaurants, and retail
stores (Yang 2005). The hotel and hospitality industry
is often perceived as the most “global” in the
service sector (Mace 1995; Littlejohn 1997). Hence,
substantial capital is invested in designing and
improving hotels each year. On the other hand, a
key challenge for management is achieving customer
satisfaction in an increasingly competitive
marketplace. Therefore, the hospitality industry,
and hotels in particular, have witnessed increasing
competition for high service quality and customer
satisfaction. This is because the majority of hotels
are currently implementing corporate-wide quality
management programs designed to improve service
offerings and market retention. Interest in service
quality has increased in recent years, with a growing
literature relating to the application of total quality
management (TQM) concepts in the service industry,
especially in the hotel industry. There are many
classic cases that have applied quality management
methodologies in this industry. For example, the
Ritz-Carlton Hotel’s TQM program has been widely
recognized as a quality leadership program (Partlow
1993). This led to the hotel winning the Malcolm
Baldrige National Quality Award in 1992 and 1999.
In addition, the Sheraton Hotel recently initiated its
Guest Satisfaction System to enhance its customers’