Iloilo City is one of the country’s developing tourist hubs where the best restaurants, museums, historical buildings and churches, hotels, shopping districts, and nightlife in the province await. Added to that, Iloilo City is now an emerging meetings, incentives, conventions and exhibitions (MICE) destination with fast development of tourism facilities, reliable track record of hosting, accessibility in terms of transport and communication, modern amenities, and security. Tourist arrivals in Iloilo increased by 29.36% last year compared to the year 2014. This inevitable growth in international visitor arrivals and domestic travel bring about a corresponding increase in demands for accommodation. Hence, many new hotels mushroomed in the city to address this lodging requirement while older hotels are doing their best to spruce-up both their interiors and upgrade services.
Due to increasing global market competition, many hotel establishments are facing challenges in retaining and attracting customers. Mostly, they are competing with one another on basic price and some quality factors. In order to compete successfully and serve customers much better, quality of service is a vital issue. The more diversification customer’s tastes and preferences become, the higher requirement the hospitality industry needs to meet. Thus, for assessing and improving the quality of service, enhancing customer satisfaction plays an important role to sustainable development of the hospitality industry in the future. Knowing what kinds of travelers choose to stay in their hotel establishment and why travelers made this choice can help the management solidify demand for their current tourism services as well as expand and adapt services to attract new types of tourists.