tAs a prominent factor in firms’ profitability and value, customer satisfaction has been given much atten-tion in the measurement of a firm’s financial performance. In the hospitality and tourism industry,however, the effect of customer satisfaction on financial performance has been relatively neglectedbecause of the unique characteristics of the industry and presumably increasing cost for uncertainoutcomes. Based upon this realization, this study empirically examines the relationship between the cus-tomer satisfaction index (CSI) and the companies’ financial performance in the hospitality and tourismindustry (i.e., hotels, restaurants, and airlines). Findings reveal that the impact of customer satisfactionis reflected in the profit margin (PM), return on assets (ROA), return on equity (ROE), proxies of a firm’sprofitability, and in the market value added (MVA), a proxy of firm value. The results indicate that cus-tomer satisfaction positively affect a firm’s profitability and value in the hospitality and tourism industry.Implications and suggestions for future research are discussed