The Influence of Service Quality on the Positioning of Five Star Hotels—The Case of the Lisbon Area

Abstract

Abstract Tourism in Portugal has expanded very rapidly over the last decades. At present, it accounts for about 8% of the GDP and directly employs more than 300,000 people. The growing numbers of arrivals in Portugal have also led to a rapid expansion of the hotel industry. However, this expansion has been followed by some worrying drops in the occupancy rates of five star hotels. Fierce competition has then become one of the cornerstones of the Portuguese hotel industry. Research conducted in the field of market positioning has highlighted the importance of understanding the preferences attributed by consumers to a given product (“perception”) and how and why products and services are evaluated and purchased. Based on research conducted recently among tour operators and business companies, this paper will look at the way in which service quality influences the positioning of five star hotels. The analysis and conclusions presented in the paper offer grounds for discussion about the way in which five star hotels located in the Portuguese capital and in the surrounding area may improve their image, attract larger numbers of tourists and, as a result of this, prepare themselves for growing competition that has developed in Lisbon and its outskirts. Some of the findings are applicable to other European capitals. Key Words: QualitypositioninghotelLisbon