An Investigation of Service Failures, Recovery Efforts and Customer Satisfaction within a Package Group Tour

Abstract

Service failures seem to be inevitable given the heterogeneous nature of services. In many cases, it is the service recovery efforts performed by service providers after a service failure that affect customer satisfaction. A model is proposed that considers the impact of service failures and recovery efforts on customer satisfaction with the tourism industry. The findings indicate that service failures are related to recovery efforts, and that recovery efforts are related to customer satisfaction. In addition, an analysis of demographic factors suggests that age, employment status, and frequency of non-business trips taken each play a role in these relationships.