Service failure can put companies out of business if attention is not paid to this problem. The purposes of this study were to investigate the explanatory relationships between hotel guests’ perceptions of (a) service failure; (b) service recovery strategies in each service failure situation and behavioral intentions. This study explained the components of service recovery strategies used when service failure occurs in each situation in a hotel, and to link customer response to service recovery strategies to behavioral intention, as applied to the hotel industry in Tehran. Appropriate measures are identified and a survey is undertaken among 200 Four- star hotel guests. A response rate of 58 per cent is obtained (n=116). Results indicate that dimensions of service failure has positive contribution to service recovery strategies and service recovery strategies have positive contribution to behavioral intentions.In other worda, the hotel guests’ perceptions of service failure and service recovery strategies have an overall effect on behavioral intentions.
)