Service Quality Dimensions and Customer Satisfaction in the Budget Hotel Sector: Empirical Evidence from Kelantan, Malaysia

This study looks at how customer satisfaction in low-cost hotels in Kelantan, Malaysia, is affected by service quality parameters, particularly assurance, responsiveness, and reliability. A quantitative research design based on Expectation-Confirmation Theory and the SERVQUAL framework was used. A structured online survey using Google Forms was used to collect primary data from visitors who had previously stayed at low-cost motels in Kelantan. SPSS was used to analyze 119 valid replies in total. A sample size of N = 119 offered adequate statistical power, according to an a priori statistical power analysis using G*Power (Power = 0.95, α = 0.05, f2 = 0.15). Descriptive statistics, Pearson correlation analysis, and Cronbach's alpha internal consistency reliability testing were used to examine the data. The results show statistically significant positive connections between customer satisfaction and assurance, responsiveness, and dependability. Notably, the strongest associations with guest satisfaction were seen in staff responsiveness and service dependability. These research findings demonstrate that low-cost hotel operators cannot compete on the basis of pricing alone; professional behavior, timely staff help, and consistent service delivery are crucial for raising visitor happiness and increasing customer retention. This study fills a significant empirical gap in regional Malaysian hospitality literature and offers useful insights for low-cost lodging providers in tourist destinations.

Service Quality, SERVQUAL, Customer Satisfaction, Budget Hotels, Kelantan Tourism

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