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The aim of this study is to test the influence of dimensions of importance (expectations) in hotel services on performance (actual experience) within the context of budget hotels in China. A theoretical model and nine hypotheses are tested to indicate whether the dimensions of importance such as room service, room comfort and reservation process, have any impact on performance dimensions such as in-room dining, front office service, room amenities and hotel access and safety. A final model is proposed which reflects the relationship between the constructs. The study uses a survey and interview technique. Findings from the analysis of 355 respondents from budget hotels in the Hainan province of China suggest statistical significances in several areas of relationship between rating of importance by the budget hotel guests and performance dimensions. Overall, the results indicate a significant difference between …