ABSTRACT
In order to be achieve competitive advantage in the market it is not sufficient to attract new customers it is must concentrate on retaining existing customers implementing effective policies of customer satisfaction and loyalty. The customer satisfaction is largely depend on quality of service in the hotel industry. A management approach focused on customer satisfaction can improve customer loyalty, thus increasing the positive image of the tourist destination. Hence, exploring the customer satisfaction of hotel industry attributes in hotel selection is essential. Research on the topic of customer satisfaction, communication, transaction and distribution was the dimensions which translates into the consideration of whether or not customers will return to a hotel or advice it to other tourists, is pivotal to the success of the hospitality business. A quantitative analysis perform using Liket scale of star graded hotels in Sri Lanka. These type of standard questionnaire have used in the internet marketing research (Chailee, 2008). Descriptive statistics, inter-item correlation matrix and factor analysis were used to measure the quality of the data. Through the regression analysis of this case, evaluate the overall customer satisfaction of star hotels and multivariate data analysis was used to analysis the dimensionality customer satisfaction levels in star hotels. We conclude discussing the result and proposing improvement in customer satisfaction Management of the hotel.