Service Quality as a Catalyst for Competitive Advantage and Business Performance in Hotel Industry: An Empirical Analysis by PLS-SEM Algorithm

Abstract

This study investigates the vital role of service quality in the hotel industry, focusing on its impact on business performance and competitive advantages. Utilizing cross-sectional survey responses from hotel employees, we employed partial least squares structural equation modelling to analyze the relationships between service quality, competitive advantage, and business performance. Results highlight the pivotal role of quality in enhancing competitive advantages and operational efficiency in the hotel sector. The findings underscore the significant influence of service quality on both competitive advantage and overall business performance in the tourism service sector, leading to positive outcomes such as improved tourist experiences, economic growth, and an enhanced destination image. Additionally, the study emphasizes the importance of competitive advantage, service quality, and innovation in driving business performance, with direct implications for pricing strategies and service quality in the hotel industry.