This study assessed the technical (tangible) and functional (human interaction) quality of services in a first-class international health resort and related these to service management effectiveness. Service management is effective when customers judge the overall service quality to be good, they are highly satisfied, they are willing to recommend the firm to others and they intend to repurchase or are predisposed to purchase additional services from the firm. The technical and functional aspects of services quality and their relation to service management effectiveness, were found to be different between the core and supplementary services, between customers and service personnel and between customers with and without experience. The results support the statement that competitive advantage in this industry can be obtained by improving the functional aspects of services management, by better performance of supplementary services and by reducing the gap in perceptions between customers and contact personnel.

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