Although service organizations strive to provide high-quality services and get things right from the first time a failure of the service is inevitable as mistakes and errors are inherent characteristics of the service industry due to its intangible nature. As well as providing services without any failure is almost impossible to achieve. Therefore the ingenuity of the service provider represented in how to exploit such negative events that are inevitable to be in favor of the service organization by adopting effective service recovery systems. Therefore the effective service recovery is one of the main keys to gain an advantage over the competitors and it is considered one of the most researched topics in the literature on service quality in the past two decades. Moreover service marketing literature confirms that profitability and growth can be largely determined by loyalty. Thus leading companies today have become aware of the customer loyalty importance as one of the most important intangible assets that firms can have and it represents a necessity to remain in the competitive market.