The Impact of Recession on Customer Unethical Behavior in Sharm El Sheikh Hotels: The Role of Rules and Regulation

Given the harmful consequences of customer unethical behavior, the study aims to investigate the moderating role of rules and regulation on the relationship between recession and customer unethical behavior. 
 
Research methodology design – In this study, a quantitative research approach was used. in addition to semi structured interview with hotels managers and team members who witnessed the recession. The research data was analyzed using Smart PLS 3.
 
Findings – It was revealed that hotels in question have experienced severe recession during the last decade that caused unethical behavior such as receiving an illegitimate complaint, problem fabrication, dictating the hotels and illegitimately fraudulent returning payment. Weak implication of the hotel rules and regulation in the sample hotels such as lack of rules and regulation which can deliberately confront the illegitimate customer complaints, not gaining the guest's approval and signature to acknowledge the complaining policy, lack of customer complaints policy in the travel agents’ contracts, lack of the service recovery policy with the trained and empowered team to handle the illegitimate claims, lack of customer preferences. Nevertheless, rules and regulations showed significance between the recession on the hotels’ customers’ unethical behavior as hotels showed tendency to apply the rules and regulation and its proposed provisions.
 
Research value – Findings of this study assist to better understanding of the tourist recession and the emerged customer unethical behavior. Hotels can benefit from this study by developing more effective inhibitors by comply to the rules and regulation.