Domestic Guests' Perception of Hotel Capacity Management Practices

In their pursuit of achieving optimal revenues of room capacity, hotels adopt several capacity management practices that can negatively impact guest satisfaction and long-term loyalty. This study aimed to investigate the viewpoint of Egyptian domestic tourists about the practices of room capacity management undertaken by hotels in Egypt. The study focused on four major sets of practices with a total of 18 practices to be examined. A quantitative approach was adopted in this study using questionnaire survey as an instrument for collecting primary data. The sample of this study included 339 participants who were selected using snowball sampling technique to participate in the survey study of this research. The results revealed that all the 18 examined capacity management practices were found to be moderately unacceptable by participants with some significant association between the acceptance of these practices and participants' demographic characteristics and accommodation patterns. The results also showed that the investigated practices were perceived by participants to have a significant negative impact on their both overall satisfaction with hotels and loyalty. The study has also provided some practical recommendations to help hotel managers to avert the negative impacts of these practices on domestic guests' satisfaction and loyalty.