Customer satisfaction and dissatisfaction in the hospitality sector has been discussed by many researchers (Berezina et al., 2016; Padma & Ahn, 2020; Xu & Li, 2016). Previous studies have paid more attention to customer satisfaction and dissatisfaction in luxury hotels and budget hotels. However, according to New Zealand Trade & Enterprise (2016), the middle scale 3-star hotel is an important sector in the New Zealand hospitality industry. This dissertation, therefore, aims to study the main factors influencing customer satisfaction and dissatisfaction in 3-star hotels in Auckland, New Zealand.

The interpretivist paradigm guided this study and a qualitative methodology was applied. The method of data analysis was thematic analysis. Data on seven 3-star hotels in Auckland was collected. TripAdvisor online customer reviews were applied as the database in this study. 74 customer satisfaction reviews and 52 customer dissatisfaction reviews were posted on TripAdvisor between 2013 to 2020, during the summer peak months in New Zealand.

The main factors affecting customer satisfaction in Auckland’s 3-star hotels were location, room cleanliness and room facilities. Failure to meet customer expectations regarding room facilities and cleanliness are the main factors leading to customer dissatisfaction. Poor staff performance was also an important element that caused customer dissatisfaction in 3-star hotels. The findings of this study are of benefit to hoteliers in 3-star hotels, as these findings could provide suggestions in terms of how to increase customer satisfaction and decrease dissatisfaction. The findings of this study could also contribute towards understanding customer satisfaction and dissatisfaction in the current field of academic research on 3-star hotels.