Effect of Service Quality on Behavioral Intentions among Budget Hotels in Machakos County, Kenya

Effect of Service Quality on Behavioral Intentions among Budget Hotels in Machakos County, Kenya

Mwalimu Zipporah Mueni^*, Rayviscic Mutinda Ndivo, Antoneta Njeri Kariru

Murang’a University of Technology, Kenya

^*Corresponding author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90600043

Received: 23 May 2025; Accepted: 27 May 2025; Published: 28 June 2025

ABSTRACT

The hospitality industry through its budget hotel segment, maintains its fundamental role to boost tourism and support economic development across the globe and within Kenya. The main concern for budget hotels is retaining customer loyalty and keeping them as clients as a result of service quality. The objective of the study was to establish the influence of service quality on guest behavioral intentions among budget hotels in Machakos County, Kenya. This study investigated how the SERVQUAL dimensions of tangibility, reliability, responsiveness, assurance, and empathy relate to guest behavioral intentions, which include positive word-of-mouth, willingness to recommend others, and revisit intentions. The study used a mixed-methods approach to study hotel guests among budget hotels in Machakos County, Kenya. A total of 332 from 10 selected hotel guests completed structured questionnaires. Descriptive and inferential statistics were used to analyze quantitative data and to explain the connection between the guests’ experiential value and behavioral intentions. Based on the significant regression coefficient value of 4.294 and service quality produced a statistically meaningful and affirmative impact on behavioral intentions with a p-value of 0.000, which was less than the standard significance level of 0.05; thus, service quality was found to play a major role in influencing behavioral intentions among budget hotels in Machakos County, Kenya. The research results demonstrated that assurance with empathy emerged as a largely influential factor for behavioral intentions because it strengthened the personal connection between staff and customers. The research findings further showed that delivering superior quality of services in budget hotels should become a strategic business approach to create positive behavioral patterns for sustained competitiveness. Budget hotel managers should put training staff at the forefront of their initiatives, along with investments in service infrastructure and creation of policies focused on customers to create superior guest experiences.

Keywords: Behavioral Intentions, Budget Hotels, Hospitality Management, Machakos County, Service Quality

INTRODUCTION

The global hospitality industry drives socio-economic growth by creating jobs while developing tourism traffic and enlarging many countries’ Gross Domestic Product (GDP) (Modi, 2024). The industry transformation leads customers to demand higher service quality because of worldwide trends combined with technological progress and growing service provider and market competition. In hotel industry, service quality stands as a fundamental performance factor which determines guest behavioral intentions and holds influence over customer loyalty and their willingness to return as well as promote the hotel through word-of-mouth (Marcos et al., 2022; Anabila et al., 2022). Service quality encompasses multiple dimensions which SERVQUAL model according to Ali et al. (2021) presents through reliability, responsiveness, assurance, empathy, and tangibles. The five dimensions of service quality provide foundation for customer understanding across multiple industries such as hospitality. Accurate service quality in budget hotels results to both superior customer maintenance, market positioning of the hotel and enhanced profit outcomes (Ali et al., 2021). Across developing economies which include Africa the hospitality industry continues to expand rapidly due to a rising middle-class and urban development and better travel infrastructure facilities (Wijburg et al, 2024). Extensive growth of the hotel industry in Kenya occurs through both local and international tourist flows. The budget hotel segment became essential for price-conscious customers including local tourists, commercial professionals and educational institute students together with conference delegates (Ardiansyah & Leejoeiwara, 2024). The hotels provide fundamental accommodation services at reasonable prices which makes them vital for tourism inclusion efforts while stimulating local growth. The business hotels located across Machakos County and throughout the nation confront distinctive operating issues which diminish their overall service quality. Budget hotels face difficulties with financial constraints combined with insufficient skilled staff together with inadequate infrastructure and insufficient customer service training that prevents them from providing satisfactory services to guests (Oduro, 2024).

The budget hotel segment in Machakos County needs more empirical research about service quality since most research has been studied at high-end hotels along with the entire hospitality sector while omitting the special characteristics and obstacles found in budget hotels. Very few studies exist which measure the impact of service quality dimensions on customer intentions in this specific setting. The inconsistency of service quality between budget hotels in Machakos County emerges from anecdotal sources yet researchers have not investigated the magnitude of these differences regarding customer loyalty and recommend habits or return visits.

This study was carried out to understand the service quality relationship between service quality and behavioral intentions within the budget hotel customer base of Machakos County, Kenya. The research investigates the service quality standards delivered to customers while studying their behavioral responses through an analysis of separate service quality elements. Through closing this research void the study provides valuable recommendations for budget hotel managers and stakeholders to develop effective customer retention methods while improving service delivery.

LITERATURE REVIEW

Service Quality and Behavioral Intentions

Service quality is a major antecedent of behavioral intention in the hospitality industry. Section, and Hidayat (2022) SERVQUAL model that measures the impact of service delivery on customer behavior isolating aspects like tangibles, reliability, responsiveness, assurance and empathy has been widely used. The evaluation of various service quality dimensions has revealed that quality service has a positive effect on behavioral intentions such as repurchase intentions and word-of-mouth communication intentions (Hussain et al., 2023). Continuing apprehensions associated with service quality still underlines global strategies aimed at improving customer satisfaction and loyalty with special reference to the sector of budget hotel chains. For example, Baker and Crompton (2022) examined the factors affecting guest satisfaction in the budget hotels in the USA and established that there are important service product attributes, it is imperative to clean, quick service delivery by staff, and friendly treating of customers. According to their findings, it was evident that although basic at best, compliance with these tenets when done with a strict rundown of the supposed limited budget could create loyalty and guarantee through repeat business.

A paper by Garcia and Mendoza (2020) researched in Mexico City explains the effects of service quality on domestic and international tourists’ plans to come back to budget hotels. Empathy and confidence in the service both strongly impacted the customers’ desire to repeat their stay at budget hotels. So, it seems that Spanish-speaking tourists, in particular, appreciate the staff’s personal touch and action when resolving any issues. It was also found that the model for offering services in budget hotels should be flexible towards both the local culture and requirements from visitors from other countries (Garcia and Mendoza, 2020). When the employees are professional and communicate well, with fast service, guests are much happier. As a result, guests recommended the hotel and chose to return, clearly showing that high standards of culturally fit service encourage them to act positively toward the hotel. In another study carried out by Mthembu and Khumalo (2022) investigated how service quality impacts guests’ decision to return to budget hotels in Durban, South Africa. Results from the research showed that how pleasant the hotel looks and how clean it is can affect the customer’s intentions regarding their behavior. This was mainly the case for guests of budget hotels, who demand that their rooms are safe and clean, even if this means giving up luxuries to save money. The report highlighted that providing reliability and responsiveness is key to making customers stay. Those who noticed their needs being met right away and noticed the staff were reliable tended to come back and tell others positive stories (Mthembu and Khumalo, 2022).

The study by Lee et al. (2016) found, among other significant findings, that service quality can be enforced by lining up customers’ desires with their recognitions of the real benefit involvement. In other words, the crevice between client desires and the real benefit customers’ desires with their recognitions of the real benefit involvement. In other words, the crevice between client desires and the real benefit experience is what determines service quality (Ali et al., 2021). Izogo and Ogba (2015) argued that a number of components contribute to client fulfillment and devotion, counting benefit quality. They too specified SERVQUAL as one of the beat ways to gage benefit quality. SERVQUAL may be an instrument utilized to gage different perspectives of benefit quality with the help of this tool, quality of service is assessed as the distinguishing between client expectations and perceptions on five different fronts: tangibility, dependability, responsiveness, assurance, and empathy. The dimensions used in studies using this tool vary (Section & Hidayat, 2022). However, SERVQUAL is among the highly reliable and qualified modes for assessing quality of service (Gabrow, 2021). Another study carried out by Abdul-Majeed (2021) looks into the effects of service quality on customer loyalty in the selected budget hotels. The author also discovered that both responsiveness and empathy should be considered as the most important dimensions of service since clients acknowledged the importance of an individual approach regardless of the absence of price limits. The study suggested that improved training of specific staff to deliver further these service dimensions was a cost-effective customer loyalty strategy. Client retention was characterized as long-term affinity of a client to remain with a benefit supplier (Yan & Lim, 2022). They claim that other variables too have an effect on client maintenance in expansion to client fulfillment. Client maintenance was characterized by (Lee & Kim, 2022) as the promoting objective of avoiding a client from exchanging to an equal. Client maintenance, concurring to Hamilton-Ibama and Ogonu (2022), demonstrates the customer’s purposeful to repurchase the benefit from the benefit supplier. As a gage of the customer’s purposeful to stay with the benefit supplier, they utilized client maintenance. For them, client fulfillment and benefit esteem are vital preconditions for client maintenance.

On the other hand, research carried out in developing countries have pointed out areas of weakness when it comes to services delivery. For instance, Egbide et al. (2022) recognized that one of the crucial challenges affecting cost control in budget hotels in India is operation inefficiency and the lack of staff motivation. This they concluded by advocating for better training of the human resource within the organization and the application of technology. In another study also carried out with the research participants in Nigeria by Adeola and Evans (2023) established a poor service quality due to constraint of resource and unmotivated manpower as a predictor to poor guest retention. They suggested that employee development programs should be made as an investment and believed that management of quality should be adopted. A few past researches have also explored perceived service quality in African countries but with specification on operators of budget hotel chains given emerging context constraints. For example, Moyo & Sibanda (2023) began assessing service quality perceptions in the atmosphere of the budget hotel segment in South Africa. It wants stated that though price sensitivity influenced guest decisions, perceived service delivery gaps resulted into guests’ dissatisfaction. According to their findings they recommended that changes in hotel toiletries and attitude towards guests can make a significant difference in perceived service quality. On a similar vein, Ahmed et al. (2023) looked at service quality for stake holders in relation to guest loyalty in low-cost accommodation and instead they discovered that more than any other factors, reliability and assurance were the most influential to guest loyalty. The authors recommended that the government should start the funding of the (budget) hotels’ development with the intention of enhancing physical infrastructure and human capital development that would help them enhance the standardized service delivery systems.

The Kenyan budget hotel segment is aware of the challenges involved in delivering standard service quality. In the study Kivuva et al. (2021) which focused on service delivery in budget hotels in Kenya they concluded that guests’ complaints were on service delivery in as much as cleanliness, delays and lack of response to guests’ needs from the service providers. Their study revealed that these problems were more common among facilities that were situated in rural areas of the country because of resource limitation and inadequate professional training of the staff. The authors recommended that BHWs should consider ascertainable quality improvements that in many instances can be acquired for low dollar cost, for example, the adoption of SOPs and staff training. According Odhiambo (2019) budget hotel guests’ preferences for the quality of services that matter most include cleanliness and staff friendliness while staying in Kenyan hospitality establishments. However, the study also revealed that most of the budget hotels were facing issue with the inconsistency which affected guests’ confidence and repeat business.

Behavioral Intentions

A common theme in the literature on hospitality is behavioral intention, especially when it comes to studies on customer satisfaction and service quality. Researchers and management agree that behavioral intention makes up the feedback loop between the quality of the services provided and the happiness of the consumer. Businesses can ascertain if their strategic actions to raise customer satisfaction and service quality levels lead to positive behavioral intention on the side of customers by conducting behavioral intention research. Businesses need to strategically consider behavioral intention in order to reach the customers they want and grow their market share.

Various definitions of behavioral intention have been proposed by researchers. Zeithaml et al. (2020) define behavioral intention as including factors such as price sensitivity, loyalty, repurchase, and recommendation to others. Behavioral intention, according to Tavitiyaman, Qu, Tsang and Lam (2021), is the entirety of actions that suggest whether a customer will buy the same good or service again later on. Behavioral intention has been considered a preliminary indicator of actual conduct, despite its unpredictable nature and temporal variability (Yu et al., 2020). Behavioral intention can be thought of as the customer’s behavioral input to the business regarding the quality of a product or service. Positive behavioral intention is defined by researchers as a customer’s willingness to refer others to the business for services they have received (Mafojane, 2022) tell others about the business in a positive light (Koc et al., 2022), remain loyal to the business, and agree to pay more for the services they receive (Ahmed, Fan & Billah, 2022). Positive behavioral intentions are linked to a service provider’s capacity to persuade clients to do the following: (1) speak well of them, (2) refer them to others, (3) stick with them (i.e., make additional purchases from them), (4) spend more money with them, and (5) pay price premiums, according to Zeithaml et al. (1996). A customer’s intention to pay is expressed by their willingness to pay more. For the benefits that the client now receives from the service provider, a higher price than competitors charge (Abrate, Quinton & Pera, 2021). According to research by Akbari and Wagner (2021), hotel visitors who felt particular feelings (including security, comfort, and welcome) were willing to spend more than they had during their prior visit. In particular, research on the hospitality industry has shown that perceived value directly influences behavioral intention (Ibrahim & Borhan, 2020), additionally, Kwon, Lee & Back (2020) discovered a statistically significant relationship between perceived value and behavioral intention. Studies has demonstrated that behavioral intentions can be accurately predicted by quality, perceived worth, and satisfaction (Yu, 2020). Revisit intentions and word-of-mouth communication are measuring variables for behavioral intentions.

RESEARCH METHODOLOGY

The study used a mixed-methods research design since it combined quantitative and qualitative data. It utilized a pragmatic research philosophy since it made it an optimal approach for behavioral studies like understanding guest service quality views and their hotel behavioral choices in budget hotels. The study was carried out in Machakos County, Kenya situated 63-kilometer southeast of Nairobi. The respondents consisted of 332 guests from the 10 selected budget hotels in Machakos County, Kenya from the initial sample size of 334 guests. The research tool used to collect data consisted of a semi-structured questionnaire consisting of open-ended and closed-ended questions administered to budget hotel guests. A pre-test was carried out to evaluate the validity and dependability of the survey instrument, and the Cronbach’s Alpha served as the statistical tool to measure the scale reliability and it demonstrated high reliability based on a Cronbach’s Alpha result of 0.840. Data were analyzed by using both descriptive and inferential statistics. The quantitative data were then coded, cleaned, and analyzed using SPSS version 20, and results from descriptive statistics were presented by use of frequencies, means, and standard deviations. The research used the Spearman correlation to examine the relationship between service quality and behavioral intentions. The hypotheses of this study were tested using inferential statistical techniques for instance, the ordinal regression model to measure how service quality influenced behavioral intentions with a p-value of < 0.05 level of significance. Ethical principles were followed since a collection letter was obtained from the University for identification, and it was sure that participants were informed.

Limitations

First, to make sure results are honestly and accurately derived, ordinal regression analysis needs to analyze data from a sufficient number of sample cases. The guideline commonly used implies that at least 10 data points for each predictor help give stable results and are sufficient to analyze (Bürkner & Vuorre, 2019). In this study, the factor that affected outcomes the most was service quality, and behavioral intentions were measured on an ordinal scale. For no additional covariates, the guideline is that a model should include at least 10 observations. To ensure the results are reliable and consider the different qualities in data, researchers try to collect information from a larger group of people (Moser & Korstjens, 2018). Moreover, 332 participants were included, which meets and surpasses the minimum and makes the results more confident and general.

The study reviewed various parts of service quality, such as tangibles, reliability, responsiveness, and empathy, in the context of budget hotels in Machakos County, Kenya. This aspect, “assurance,” which focuses on looking at employee knowledge, politeness, and trustworthiness, is not part of the evaluation. Budget hotels in the region are not expected to provide relationship-based service, where their guests tend to prioritize function over feeling. Studies before this one found that reliability and useful amenities are the main factors that affect how satisfied guests are and how they intend to behave. Njau et al. (2017) discovered, through their analysis, that while SERVQUAL dimensions are all meaningful, ‘assurance’ was not as important in influencing customer satisfaction as ‘responsiveness’ or ‘reliability’. This means that, at budget hotels, customers might pick quick and certain service over the familiar aspects of assistance. In light of this, the research looks into aspects that mainly reflect the target context.

A cross-sectional design was applied, and data were gathered on a single occasion. Even though this strategy was useful for finding links between service quality and people’s intentions, it prohibited studying the cause of those links and tracking changes. So, the research cannot show if better services encourage customers to remain loyal. It is easier to find out why something happens and which events follow another using longitudinal studies that follow variables for a long time (ConferenceInc, 2025). Since there was no long-term data in this study, it cannot thoroughly understand the way service quality changes customer behavior. People who took part in the study were chosen by convenience sampling, meaning they were chosen if they happened to be available and willingly joined the study (Katharine, 2023). Even though it is helpful and affordable, there are many biases introduced by this method. Because the sample does not truly reflect all budget hotel guests, the conclusions may not be generalized to a large group. Since the data was not complete and groups were not equally represented, findings cannot be broadly applied to all budget hotel customers in Machakos County, Kenya. On the other hand, since randomization is missing, calculating the sampling error was impossible, which makes the study less reliable from a statistical point of view. The research involved only budget hotels in Machakos County, Kenya. Despite offering a deep understanding of what happens locally, this limits how well the findings can be used somewhere else. There are variations in customer expectations, customs, and service standards in various places, which can alter how someone perceives quality and how they plan to behave (Hult et al., 2019). Because of this, the study’s findings might only apply to budget hotels in the same county and not to hotels in other places internationally.

RESULTS

Demographic Characteristics of The Respondents and Their Moderating Effect on Service Quality and Behavioral Intentions

Figure 1 shows that the study group consisted of approximately equal male and female participants where females accounted for 172 guests (51.8%) and males composed 160 participants (48.2%). Budget hotels in Machakos County welcome guests of equal proportion between men and female based on this data. Female showed higher engagement in budget hotels from the region based on the slightly higher number of female respondents compared to males.

Figure 1: Gender

A hierarchical regression represented in Table 1 was used to explore whether Gender affected the connection between Service Quality and Behavioral Intentions. A mixture of Service Quality and Gender was responsible for explaining 62.4% of the way Behavioral Intentions vary (R² = .624). Model 2 explained more of the variance (R² = .629) because adding the interaction term indicated that Gender may play a moderating role in this relationship.

Table 1: Moderating Effect of Gender on Service Quality and Behavioral Intentions

Among the study participants presented in Table 2, 29.5% fell within the 26-35-year age bracket, and the age group directly after them at 28.9%, consisted of individuals aged 36-45 years. Twenty of every hundred respondents (19.9%) belonged to the 46-55 age range, while the 18-25-year-old guests comprised 16.0% of the research sample. A minority segment of above 55-year-olds made up only 5.7% of the respondents. Budget hotels in Machakos County specifically target guests who belong to their peak professional and family development years, ranging from 26 to 45, because these guests combine business needs with leisure activities.

Table 2: Age Group

The results of the regression analysis in Table 3 show that the Service Quality and Age Interaction is significant (B = 0.071, p = .018). Therefore, Age moderates the relationship between Service Quality and Behavioral Intentions. In particular, the positive coefficient means that as Age rises, people respond more positively to Service Quality with regard to their intentions to act on brand-related behaviors. On the other hand, the main effect of Age is not statistically significant (B = 0.008, p = .659), which shows that Age alone does not directly influence Behavioral Intentions. Therefore, the way Age and Service Quality are connected demonstrates that it is significant to think about Age when examining Service Quality’s impact on customers’ intentions.

Table 3: Moderating Effect of Age on Service Quality and Behavioral Intentions

The primary segment of budget hotel guests from Figure 2 in Machakos County consists of those who earned degrees (41.9%) and master’s degrees (21.7%) with the rest split between PhDs (16.0%), diplomas (11.4%), and certificates (9.0%). Among the guest participants 16.0% had earned PhDs, 11.4% had diplomas and 9.0% held certificates and PhDs. Data reveals that budget hotel patrons in Machakos County possess advanced levels of education that probably defines their standards regarding both hotel service quality and hospitality experiences.

Figure 2: Education Level

According to Table 4, the combination of Service Quality with Education Level (Interaction_Term3) does not have a significant effect (B = 0.048, p = 0.100). So, details about education level do not seem to alter the way service quality impacts the intentions to behave. Moreover, the main effect of Education Level is not significant (B = 0.007, p = 0.720), meaning Education Level does not cause a direct change in Behavioral Intentions. From these findings, the Education Level of customers does not seem to affect the way Service Quality and Behavioral Intentions relate.

Table 4: Moderating Effect of Education Level on Service Quality and Behavioral Intentions

In Figure 3, employment stood as the primary occupation of guest respondents, with 56.0%, while business owners made up 25.9% of respondents. The study included 11.4% of students, along with 6.0% of unemployed persons who participated in the survey. Only 0.6 percent of the respondents selected an unknown occupation category. The research demonstrates that budget hotels exist to serve business and working professionals, yet additionally welcome students and transitional individuals.

Figure 3: Occupation

There was no significant relationship between Service Quality and Occupation, as determined by regression analysis in Table 5 (B = 0.010, p = 0.773). It meant that Service Quality on Behavioral Intentions did not change much with Occupation. Besides, the Occupation effect on Behavioral Intentions was not statistically significant (B = -0.007, p = 0.782). So, after this analysis, Occupation does not seem to affect how Service Quality impacts Behavioral Intentions.

Table 5: Moderating Effect of Occupation on Service Quality and Behavioral Intentions

Table 6 presented the results as follows; the income bracket of Ksh 50,001-80,000 represented the most common group with 24.1% while earnings below Ksh 30,000 constituted 18.4% and employment earnings exceeding Ksh 150,000 constituted 16.9% of the total guests surveyed. Other income brackets included 30,001-50,000 (11.7%), 80,001-100,000 (15.4%), and 100,001-150,000 (13.6%). Budget hotels have the capability to draw customers from different income levels but the middle-income category between Ksh 50,001-80,000 demonstrates the strongest preference. The occurrence of budget hotel customers with more than Ksh 150,000 income demonstrates that price-conscious travelers choose budget facilities regardless of their financial capabilities.

Table 6: Monthly Income

Regression analysis in Table 7 suggested that the effect of Service Quality on Loyalty to a budget hotel depended on Monthly Income, and was not very significant (B = 0.044, p = 0.055). As a result, there was little evidence that Monthly Income changes the link between Service Quality and Behavioral Intentions at the standard significance level. The result for Monthly Income showed it does not have a significant effect on Behavioral Intentions (B = 0.006, p = 0.693). So, based on these findings, Monthly Income is not tied to the way Service Quality and Behavioral Intentions interact.

Table 7: Moderating Effect of Monthly Income on Service Quality and Behavioral Intentions

As per Figure 4, budget hotel selections heavily relied on service quality which accounted for 39.8% of responses to demonstrate hotel guest experience significance. Affordability proved to be the second essential decision driver for customers after service quality (25.0%). Location proved important for selecting budget hotels with reviews and hotel design demonstrating somewhat smaller effects on this decision-making process. The research demonstrates that budget travelers care about finding affordable prices but still want high-quality services with convenient locations while making their choices.

Figure 4: Reason for Selecting Budget Hotel

Figure 5 presents the findings as; guests who were after leisure in the budget hotels accounted for (57.5%) while business travelers selected these hotels as their main option (38.9%). A minority group (3.6%) selected different reasons than leisure or business to explain their hotel stay. Tourists and individuals searching for cost-effective yet non-business lodging use budget hotels as their preferred accommodation choice throughout Machakos County.

The combination of Service Quality and the Reason for Selecting a Budget Hotel does not influence the decision to stay at a budget hotel significantly (B = 0.015, p = 0.514), as shown in Table 8. Therefore, how people perceive Service Quality does not greatly influence their plans to behave favorably simply because they booked a budget hotel. On the other hand, the reason for selecting a Budget Hotel was a significant predictor of ratings (B = -0.027, p = 0.038). So, even if Service Quality is high, there are factors related to budget hotels that may slightly lower a customer’s Behavioral Intentions. So even though the moderation effect was not strong, the relationship between choosing a budget hotel and behavioral intentions deserves attention and can be explored in greater depth.

Table 8: Moderating Effect of Reason for Selecting Budget Hotel on Service Quality and Behavioral Intentions

Figure 5: Purpose of Visit

According to Table 9, the relationship between Service Quality and purpose of visit is not significant (B = 0.062, p = 0.361). Therefore, the purpose of visit did not have a major impact on how Service Quality and Behavioral Intentions are related. Purpose of visit shows a significant impact by making people less active (B = -0.124, p = 0.001). Consequently, regardless of service quality, the aim of a visit direct affects how intentionally someone behaves. Particular reasons for travel result in lower Behavioral Intentions. So, even though the moderation effect is not strong, the direct link between the Purpose of Visit and Behavioral Intentions should be looked into more carefully.

Table 9: Moderating Effect of Purpose of Visit on Service Quality and Behavioral Intentions

Among the visited budget hotels in Machakos County, Kenya, as displayed in Table 10 showed that first-time visitors made up 33.4% of the respondents, and those who visited 2-3 times accounted for 27.1%. Repeat customers form a significant group at 27.4% because they selected multiple visits beyond five occasions. The number of people who had visited 4 to 5 times amounted to 12.0%. Budget hotels in Machakos County, Kenya maintained strong guest loyalty benefits because around 27.4% of their visitors have arrived more than five times.

Table 10: Frequency of Visit

Table 11 shows that the relationship between Service Quality and how often guests visit was not statistically significant (B = -0.007, p = 0.808). It appeared that how often a person visits a restaurant does not have a big effect on their intention to behave a certain way, based on the quality of the service. Frequency of Visit had a statistically significant main effect (B = 0.107, p < 0.001), meaning with more visits, guests were likely to want to behave in a certain manner, despite the level of Service Quality.

Table 11: Moderating Effect of Purpose of Frequency of Visit on Service Quality and Behavioral Intentions

Descriptive Statistics for Service Quality

The first objective of this study was to establish the influence of service quality on guest behavioral intentions

among budget hotels in Machakos County. Service quality was evaluated based on four key dimensions: tangibles, reliability, responsiveness, and empathy. Respondents rated their experiences using a five-point Likert scale, ranging from 1 (Strongly Disagree) to 5 (Strongly Agree). Analysis was conducted and mean and standard deviation are shown in Table 4.

It can be noted from Table 12 that guests expressed strong satisfaction regarding service quality which includes all established aspects. Hotel facility expectations received average scores (4.30) with low standard deviation (0.721) while guests showed similar levels of satisfaction regarding quality of amenities (4.21) with a moderate standard deviation (0.776). The standard deviation value for amenities shows that guests have slightly varied views about hotel amenities. Guests publicly endorsed hotel staff for providing precise services (Mean = 4.37 with SD = 0.768) along with maintaining consistent service delivery to match their promises (Mean = 4.43 with SD = 0.707). Guests commonly perceived hotels as dependable organizations that kept their service promises. The study showed that guests perceived hotel staff as prompt in request replies (Mean = 4.46, SD = 0.700) and efficient in addressing issues (Mean = 4.32, SD = 0.761) according to survey results. Guests reported similar system-wide experiences according to the low standard deviation rates of these variables. Guests confirmed that staff members provided thorough care and attention to hotel guests (Mean = 4.49, SD = 0.739) and hotels successfully handled specific person-centered requests (Mean = 4.30, SD = 0.862). Guest experiences regarding special accommodation showed a marginally elevated standard deviation that may stem from hotel-specific policies or wait times of staff in meeting guest requests. Budget hotel guests demonstrate positive perceptions of service quality by rating staff attentiveness as well as responsiveness and reliability very favorably. Guest perceptions suggest room for enhancement especially through improved delivery consistency and higher quality amenities due to sporadic reports on these aspects of service.

Table 12: Mean and Standard Deviation for Service Quality

Correlation Analysis of Service Quality and Behavioral Intentions

A correlational study shown in Table 13 evaluated how service quality elements (Tangibles, Reliability, Responsiveness, and Empathy) affect behavioral intentions among budget hotel visitors in Machakos County, Kenya. Spearman’s rho correlation coefficients measured both the directional strength and the magnitude of their relationships. The relationship outcome shows that Behavioral Intentions demonstrate a positive connection with all Service Quality dimensions at a p < 0.01 significance threshold. Hotels operating in Machakos County experience better behavioral intentions from guests when they improve their service quality aspects. Guest behavior intentions exhibited the maximum positive correlation with tangibles at (r = 0.720, p = 0.000). Hotel facilities, together with equipment and physical appearance, directly determine guest intentions to come back to the hotel and refer it to others. The research data indicates that reliability shows a significant positive relationship to behavioral intentions (r = 0.645, p = 0.000) since dependable service delivery leads to more positive guest behavioral outcomes. Research findings showed that hotel staff responsiveness yields positive behavioral intentions (r = 0.652, p = 0.000). The research shows that guest satisfaction mainly depends on timely staff intervention and their readiness to help customers. The research findings show a direct positive relationship between empathetic human interactions of hotel staff members (r = 0.663, p = 0.000) with both guest loyalty and return intentions. Research showed that the different service quality dimensions demonstrated strong and meaningful positive relationships with one another. The physical aspects of the hotel facilities strongly matched both the staff’s empathy levels (r = 0.651, p = 0.000) and their ability to respond promptly (r = 0.647, p = 0.000).

Table 13: Correlation Analysis

Notes: BI-Behavioral Intentions

Hypothesis Testing on Service Quality and Behavioral Intentions

The study aimed to test the following null hypothesis: Service quality does not influence behavioral intentions among budget hotels in Machakos County. Additionally, the objective was to establish the influence of service quality on guest behavioral intentions among budget hotels in Machakos County.

An ordinal logistic regression analysis as displayed in Table 14, provides the necessary data to evaluate the relationship between service quality and behavioral intentions. The upgrade from the intercept-only model to the final model resulted in a decrease of -2 Log Likelihood values from 577.425 down to 256.463. The statistical analysis demonstrates a significant enhancement in behavioral intent explanation through service quality inclusion because the Chi-Square value reaches 320.962 (df = 1, p = 0.000). Service quality stands as a highly significant factor that determines behavioral intentions according to the p-value results of 0.000, which was found to be less than the standard value of 0.05.

Table 14: Model Fitting Information

A Pearson Chi-Square test result of 1854.352 in Table 15, together with a p-value of 0.000 from the same table, suggested that the model displays over-dispersed data. The model shows a good fit with the observed data because the Deviance Chi-Square value of 132.545 possesses a p-value of 0.638.

Table 15: Goodness-of-Fit

From Table 16, the model explains 63.9% of behavioral intention variance based on the Nagelkerke R² value of 0.639; thus, service quality predictions show an explanation power of 63.9% in the formation of behavioral intentions.

Table 16: Pseudo R-Square

The results in the parameter estimates in Table 17 demonstrated that service quality produces a significant positive influence on behavioral intentions since service quality had a coefficient value of 4.294 and a Standard Error equal to 0.302, while the p-value was found to be 0.000, which was less than the standard significance level of 0.05. Therefore, the service quality demonstrated in the budget hotels led to substantial growth in the probability that guests displayed positive behavioral intentions toward the budget hotel. Service quality produces a statistically meaningful and affirmative impact on behavioral intentions with a p-value of 0.000, which was less than the standard significance level of 0.05, justifying rejecting the null hypothesis that service quality does not influence behavioral intentions among budget hotels in Machakos County, Kenya, and accepting the alternate hypothesis that is service quality plays a major role in influencing behavioral intentions among budget hotels in Machakos County, Kenya

Table 17: Parameter Estimates (Behavioral Intentions and Service Quality)

Qualitative Content Analysis of Guests on Service Quality

The summarized Table 18 represents content analysis results obtained from 332 guests from 10 selected budget hotels. The qualitative data were presented thematically, using results obtained from the open-ended questions, showing an examination of 332 guests’ reviews from ten budget hotels in Machakos County, Kenya, which shows major points influencing service quality and customer behavior. Improved staff speed, improved cleanliness, quicker service at reception, higher quality toiletries, more available parking, and a greater range of breakfast choices were identified as main concerns, which provided insights into the strengths and areas for improvement on service quality in budget hotels.

Table 18: Key Themes from Qualitative Data

DISCUSSIONS ON QUALITATIVE DATA

The findings from Table 18 are in line with other studies that stress how good service experience helps retain customers and influences their satisfaction. In one study, Baker and Crompton (2022) mentioned that both the cleanliness and friendliness of the staff influence how much guests are satisfied and if they return. Likewise, Abdul-Majeed (2021) points out that how empathetic and responsive staff members are can play a big role in keeping customers loyal. In Machakos County, many guests want improved attention from staff and reduced wait times, which resonates with the fact that prompt and attentive support is vital in hospitality. This idea is also supported by research done by Mthembu and Khumalo (2022), suggesting that reliability and responsiveness directly contribute to people returning to a business. Keeping the place clean and having better toiletries shows that tangibles play a big role in quality service. Moyo and Sibanda (2023) state that having cleanliness and good amenities is valuable for service quality, even at low-priced hotels. Here, the Kenyan case is significant, as Kivuva et al. (2021) and Odhiambo (2019) point out that guests in budget hotels are mostly concerned with how clean the hotel is and how friendly the staff are, so inconsistent service in these areas can lead to a loss of guest confidence. Additionally, guests indicate they want more choices for breakfast and better parking, which means they hope for a wide range of services even when they are on a budget. This is in line with what Garcia and Mendoza (2020) highlighted, that budget hotels need to modify their offerings to please both guests from the area and those from abroad.

DISCUSSION

This study confirmed that service quality attributes consisting of tangibles and reliability together with responsiveness and assurance and empathy enhance customers’ behavioral responses which include visit repetition and sharing recommendations and readiness to pay more. The research supports the SERVQUAL model presented by Section and Hidayat (2022) that shows service delivery as a decisive factor in customer reactions. Both research results show that exceptional delivery of quality service highly predicts positive customer actions committed in budget hotels. The research of Baker and Crompton (2022) found cleanliness together with prompt service and friendly staff to be essential factors that affect guest satisfaction and loyalty within budget hotels despite their resource limitations. The research results support Odhiambo (2019) who identified hotel cleanliness together with friendly staff relationships as essential factors that influence guest satisfaction in budget facilities in Kenya. The significance of responsive and empathetic service delivery as noted by Abdul-Majeed (2021) matches the research results obtained in this study. This research agrees with Izogo and Ogba (2015) who established that superior service quality results when expectations match perceived service experiences. The research investigation showed the existence of some situational problems. The study observed similar service delivery inconsistencies along with delayed response times and guest need inadequacies in the budget hotels of Machakos that Kivuva et al. (2021) reported. The findings match Adeola and Evans (2023) who explained budget hotel guest retention failure comes from resource shortages and unengaged personnel. Moyo & Sibanda (2023) highlighted the primary role of price sensitivity for guest decision-making in South Africa, yet this study demonstrated that service quality dimensions mattered more for repeat business and recommendations in the Kenyan context. Research results verify Zeithaml et al. (2020) by demonstrating that favorable behavioral actions beginning with loyalty and ending with recommendation behaviors exhibit direct connections with service quality and customer satisfaction. The authors validated Yu et al. (2020) findings by demonstrating that perceived service value creates strong predictions for hospitality industry behavioral intentions. The study results validate Kwon, Lee, and Back (2020) by showing a direct link exists between perceived service value perceptions and hotel recommendation and revisit intentions of customers. There is an observed difference between this research and a study according to Abrate et al. (2021), on the analysis that demonstrated guests still react to pricing factors at budget hotels in Machakos County, Kenya, although they might show willingness to pay more for outstanding service.

CONCLUSIONS

Therefore, service quality plays a major role in shaping guest behavioral intentions at budget hotels throughout Machakos County in Kenya. Data analysis validates the use of SERVQUAL model for assessing budget hotel service quality and its connection to behavioral intentions in developing country markets. The study found that favorable behavioral intentions like revisit intentions and customer referrals depend heavily on the four dimensions of responsiveness, tangibles, reliability, and empathy in hotel service quality. Optimal service delivery encounters impediments from service inconsistencies and inadequate responsiveness, together with staff shortages. The research findings mostly match international and regional studies, although Kenyan budget hotels face specific obstacles because of limited resources and insufficient staff training. The study demonstrates that budget constraints do not restrict the positive effects of strategic service quality investments to build client loyalty benefits and market position.

RECOMMENDATIONS

Budget hotel operators should make improving their responsiveness and empathy levels and reliability of their services their main focus for constant development. The investigation showed that fast reaction to guest requirements along with tailored service delivery along with dependable service operations strongly affect the formation of favorable guest experiences. The hotel management must commit to employee training initiatives that develop both staff customer care skills and emotional intelligence abilities, together with service recovery strategies. Staff training to develop essential capabilities will create good relationships with guests while building loyalty among them.

Budget hotels require investments in thorough maintenance of both cleanliness standards and physical facilities and aesthetic appeal because these factors constitute service quality tangibles. The quality of basic hotel maintenance practices, including clean facilities and operational amenities, and friendly environments leads to significant guest perception improvements of hotel values despite budgetary operating limitations. Limited resources should be distributed for hotel facility maintenance and updates by management.

The research suggests that budget hotels should implement guest feedback processes as an essential means to enhance their operations. Management needs to establish feedback procedures through suggestion boxes and digital platforms together with customer satisfaction surveys to collect guest opinions. Customer feedback allows organizations to learn about necessary improvements while allowing services to better match the current expectations of guests.

Budget hotels need to adopt innovative service concepts together with modern technological solutions for better operational excellence and service readiness. Digital adoption by consumers remains high so these changes become vital for business success.

Budget hotels should develop a service environment that demonstrates genuine empathy combined with customized care for their guests. A motivating work environment should be developed by management through rewards and recognition together with advisory leadership. Staff empowerment to resolve guest concerns directly helps customers trust the hotel more while creating loyalty bonds.

To support budget hotels the industry needs tourism regulatory bodies and local government authorities to provide capacity-building support along with subsidized training and policy standards for service quality promotion. Budget hotels in Machakos County alongside surrounding areas like Nairobi County, will thrive through combined work between governmental bodies and hospitality associations and educational institutions that build an operational framework for growth.

Suggestions For Further Research

Budget hotels formed the main subject of investigation in this research. Studies should analyze the difference in guest behavior due to experiential value between various hotel categories, including leisure hotels and luxury hotels in hospitality markets.

New investigations should adopt a longitudinal approach that studies guest behavioral intention modifications across time. A multi-time research method would reveal comprehensive data about how continuous service quality enhancements affect guest loyalty, together with both future return bookings along endorsement recommendations between long duration time periods.

Future research on guest experiential value creation should use Service-Dominant Logic (SDL) along with Expectation-Confirmation Theory (ECT) besides the SERVQUAL model to generate alternative interpretations.

Research should examine the ways technology-based influences create changes to the way hotel visitors experience accommodations and react behaviorally. The analysis of digital technology effects on budget hotel guest satisfaction through online reviews and social media engagement, and its impact on loyalty requires immediate research due to modern digital advances.

Comparative research needs to study how travel purpose and gender demographics and income level, and age classify the interdependencies between experiential value and behavioral customer intentions. Such variable knowledge would help managers develop specific service plans that address different customer demographics.

ACKNOWLEDGMENT

The authors demonstrate their heartfelt appreciation toward budget hotel management in Machakos County for allowing data collection from their budget hotels. The study successfully gathered important insights from the guests who volunteered their participation. We also appreciate Murang’a University of Technology for its continuous academic support, particularly in this study from start to finish.

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