Academic Papers A model of graduates' satisfaction and loyalty in tourism higher education: The role of employability Sofia Teixeira Eurico a,n , João Albino Matos da Silva b , Patrícia Oom do Valle b a Polytechnic Institute of Leiria, Portugal b University of Algarve, Portugal article info Keywords: Tourism Satisfaction Employability Image ECSI PLS-PM abstract This study seeks to examine the role of employability in the process of satisfaction and loyalty formation towards higher education institutions (HEI), when considering tourism graduates. It explores how employability has been approached within HEIs and how graduates' satisfaction and loyalty have been assessed in higher education. A structural equation model, including the employability construct, is proposed and validated, and the results confirm that the HEIs' image is strongly influenced by employability. These results might represent a valuable source of information for HEIs in the process of finding the balance between the service provided and the needs of the stakeholders. & 2014 Elsevier Ltd. All rights reserved. 1. Introduction The current competitiveness between countries is based not only on natural resources and/or the availability of cheap labour but also on the knowledge and expertise of the workforce (Kohler, 2004). Therefore, the qualification of human resources as an answer to the industry demands becomes a major aim for Higher Education Institutions (HEIs). These institutions find themselves under greater pressure by political and educational frameworks to prepare students to be employable individuals. HEIs are expected to use strategies that reinforce students' employability capacity. This includes preparing them to cope with the shifting of skill requirements and the constantly evolving technological advances that characterise the labour market (Harvey, 2010). The tourism sector is no stranger to this situation. Its potential for growth, compared with other economic sectors, gives it an undeniable importance (Lee-Ross & Pryce, 2010). In fact, the need for skilled human resources in this sector is growing as companies seek to implement a culture of high quality in the provided services. One of the primary methods of accomplishing this is by improving the educational standards of the workforce (Mayaka & King, 2002; Ballantyne, Packer, & Axelsen, 2009). Since the Tourism industry is a complex system of an intensive workforce, requiring a significant number of human resources, and since the lack of professional qualification necessarily compromises the achievement of quality standards in services, several authors agree on the need for well-trained graduates, leaving this responsibility largely to the HEIs (Ayres, 2006; Barron, 2007; Baum, 2007; Busby, 2003; Catramby & Costa, 2004; Charles, 1997; Choy, 1995; Engberg, 2007; Hjalager, 2003; Tribe, 2003). Contents lists available at ScienceDirect journal homepage: www.elsevier.com/locate/jhlste Journal of Hospitality, Leisure, Sport & Tourism Education http://dx.doi.org/10.1016/j.jhlste.2014.07.002 1473-8376/& 2014 Elsevier Ltd. All rights reserved. n Correspondence to: Instituto Politécnico de Leiria, Escola Superior de Turismo e Tecnologia do Mar, Santuário Nossa Senhora dos Remédios, 2520-641 Peniche, Portugal. Tel.: þ351 262 783 607, þ351 966408603 (Home); fax: þ351 262 783 088. E-mail addresses: sofia.eurico@ipleiria.pt (S.T. Eurico), jsilva@ualg.pt (J.A.M. da Silva), pvalle@ualg.pt (P.O. do Valle). Journal of Hospitality, Leisure, Sport & Tourism Education 16 (2015) 30–42