The rapid growth in tourism industry has contributed to an increase in demand for accommodation. Tourists are looking for a comfortable place to rest during their travel and thus there is increased competition in the accommodation sector. Customer satisfaction largely depends on the concept of service quality, customer experience and customer value in hotel industry

This report looks in to the degree of customer satisfaction in cheapsleep Hostel and the factors contributing to satisfaction,customer expectations in relation to received services helps to understand whether the customers are satisfied or not.

The theory part adreeses the determinants of customer satisfaction, the concept of service quality,customer value and experience ,as well as customer loyalty as an end result of customer satisfaction are all discussed.

The research was carried out in the hostel,qualitative and quantative reserch methods were used to collect data.questionners were desigened and given to customers in the hostel,also more data was gathered from the booking.com website.

The results showed that most customers were satisfied with the hostel services, and they would be willing to visit the hostel again as well as recommend it to their friends. Price was the number one reason why most people choose the hostel followed by location.