The Relationship Between Halal Service Quality Evaluation and Hotel Price

Abstract

The purpose of this work is to examine the relationship between the quality of halal service and hotel rates. Due to their unique requirements for halal services, Muslim tourist groups have recently gained prominence in the increasingly globalized tourism industry. In order to tackle this, the study delves into the hotel industry's connection to halal services, highlighting the importance of catering to Islamic beliefs through food and lodging. The next step is to examine Muslim travellers’ habits in depth to find out what they look for in halal services while they're away and what influences their purchasing choices. This study builds an all-inclusive halal service quality rating system that includes aspects like facilities, meals, service attitude, and religious assistance. Its purpose is to objectively measure how well hotels meet the specific demands of Muslim tourists. We investigate the correlation between the quality of halal service and hotel rates and verify that our assessment system is effective via empirical research. In highly competitive tourist markets, where providing high-quality halal services could become a key differentiator, the results show that hotels' pricing power is greatly enhanced by improvements to the quality of their halal services. Furthermore, the study shows that market conditions and hotel placement reduce the impact of halal service quality on hotel rates. Prices are especially affected by the quality of halal service in markets where there are more Muslim visitors and hotels that advertise themselves as Muslim-friendly. Important takeaways for hotel management include the possibility that enhancing halal service optimization could result in higher price elasticity and better profitability. In conclusion, this study shows that hotels can charge more for halal services, which is a good sign that the hospitality industry could do more to accommodate Muslim tourists. Theoretically and pragmatically, these finding aids hotel businesses in planning and improving their service offerings, and it helps tourism managers and legislators understand the Muslim tourism market and promote diverse tourism services.