This study examines the effectiveness of internal communication on customer satisfaction in the hotel industry, focusing on four selected hotels in Entebbe, Uganda. The research aimed to assess current internal communication practices, determine the impact of these practices on employee engagement and service delivery, and investigate the correlation between internal communication effectiveness and customer satisfaction levels. A mixed-methods approach was employed, involving both qualitative and quantitative data collection methods. A total of 90 respondents participated, providing insights through interviews and questionnaires. The response rates were high, with 91.7% for interviews and 92.9% for questionnaires, ensuring the reliability of the data. The objectives of this study were; (a) to assess the current internal communication practices within the hotels (b) to determine the perceived impact of internal communication on employee engagement and service delivery; and (c) to investigate the correlation between internal communication effectiveness and customer satisfaction levels. Descriptive statistics revealed that strategies such as regular staff meetings, employee training programs on communication skills, and management feedback mechanisms were rated highly by respondents, with mean scores of 3.8778, 3.4556, and 3.4000, respectively. The average assessment of internal communication strategies across all indicators yielded a mean score of 3.8611, suggesting that internal communication practices were generally effective. The correlation analysis revealed a strong positive relationship between internal communication strategies and employee engagement, with a Pearson correlation coefficient of 0.973, significant at the 0.01 level (p = 0.000). This indicates that effective internal communication is closely associated with higher levels of employee engagement, which, in turn, enhances service delivery. The correlation matrix demonstrated a near-perfect positive correlation between these variables, with a Pearson correlation coefficient of 0.975, also significant at the 0.01 level (p = 0.000). This finding underscores the critical role of internal communication in achieving high customer satisfaction. The regression analysis further showed that internal communication effectiveness explained 94.7% (R² = 0.947) of the variance in customer satisfaction levels. In conclusion, the study confirms that internal communication plays a pivotal role in both employee engagement and customer satisfaction in the hotel industry. The findings suggest that hotels in Entebbe, Uganda, can significantly enhance their service quality and guest experiences by strengthening their internal communication practices.

A Research Dissertation Submitted to the School of Sciences in Partial Fulfillment of the Requirement for the Award of the Masters of Science Degree in Tourism and Hospitality Management of Nkumba University