This study aimed to assessing the effectiveness of service delivery on customer retention in the hotel industry a case study of Kampala Serena Hotel in Kampala City. The objectives of the study were to assess the level of service delivery, to identify the factors influencing customer retention and examine the relationship between service delivery and customer retention at Kampala Serena Hotel. The study set out to assess the effectiveness of service delivery on customer retention in the hotel industry, focusing on Kampala Serena hotel in Kampala city as a case study. The research design employed a descriptive research design which used both quantitative and qualitative approaches of data collection and analysis. Using Yamane's formula, the sample size was determined to be 133, with 80 respondents providing a 60.2% response rate. Data analysis involved the use of both descriptive and inferential statistical methods. Quantitative data were processed using the Statistical Package for Social Sciences (SPSS, version 25.0). Inferential analyses included Analysis of Variance (ANOVA), Pearson correlation, and regression model summaries to examine relationships and test hypotheses. The findings revealed that there is a strong and positive relationship between effective service delivery and customer retention (r = 0.935**, Sig = 000). The Pearson coefficient reflects the degree of linear relationship between the two variables of effective service delivery and customer retention. This reveals that effective service delivery results into customer retention which is one of its core value and objectives. The findings indicate that effective service delivery significantly influences customer retention, highlighting the importance of quality products, effective communication, and personalized attention. The study emphasized the need for hotels to prioritize high-quality service delivery, conduct regular assessments, and implement personalized communication strategies to enhance guest trust and satisfaction, ultimately fostering customer loyalty and positive word-of mouth.

A Research Dissertation Submitted to the School of Sciences in Partial Fulfilment of the Requirement for the Award of Masters’ Degree in Hotel and Tourism Management of Nkumba University, Entebbe Uganda.