Abstract:
The purpose of this paper is to establish the relationship between grading standard as a dimension of hotel rating system and customer satisfaction. 203 hotel guests participated in the study. Survey questionnaires based on a modified performance-only instrument were used to collect data, analysed using SPSS 20.0 and AMOS 22.0. Structural Equation Modelling (SEM) was used to establish the relationships between grading standard and customer satisfaction as latent constructs of the hypothetical model. The underlying factor structure of the manifest variables in the model was established using both unidimensionality test and confirmatory factor analysis (CFA). The study concluded that grading standard is a predictor of customer satisfaction in star-rated hotels. This study recommends that hotel managers need to pay adequate attention to grading standard dimension of the rating system for it provides an array of features or attributes that the hotel may use to enhance customer satisfaction in order remain competitive and distinguish itself from the
competition.
