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This research aimed to study demographic characteristics, perceptions of service quality, and loyalty of the customers of budget hotels. Data were collected from 400 budget hotel customers in Chiang Mai Province by questionnaires. The results showed that the perception of service quality was high whereas the level of customer loyalty was moderate. In addition, customers with different levels of income, occupation and the length of stay had different levels of loyalty at 0.05 statistically significant level. Furthermore, the perceptions of service quality were significantly correlated with customer loyalty at 0.01 level.
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