| Summary: | By adopting and adapting the SERVQUAL instrument and factoring in aspects of SERVPERF, the proposed instrument (HOTSPERF) was developed and validated through a survey using a self-administered questionnaire, conducted among a systematic sample of 1200 guests from a cluster of graded Ethiopian hotels. The response from 415 guests was subject to Exploratory Factor Analysis, which resulted in the 25 items of the HOTSPERF instrument loading onto two service dimensions which were labelled “Tangibles” and “Intangibles” and these dimensions produced a reliability (Cronbach Alpha) co-efficient of .096 and .962 respectively. Confirmatory Factor Analysis using maximum likelihood estimation indicated that the standardized factor loading (SFL) values for each of the 25 observed variables compared very well to their corresponding latent variable (greater than 0.90 with significance at p < .001, and had a 95% confidence interval that ranged from 0.88 to 1.11), and the Chi-Square/degree of freedom was 3.2 at p < .001. Thus, HOTSPERF was found to be both a reliable and valid instrument to measure customers’ perceptions of hotel sevice quality.
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