The research aims to investigate the factors that influence on customers on hotel selection in Chiang Mai, Thailand. This study examines the relation between consumer’s hotel selection and various factors including customer characteristic factors and service marketing mix. The questionnaire was used as an instrument in order to collect data from customers who come to Chiang Mai and stay overnight at a hotel. A structured questionnaire was developed and distributed to 400 respondents. The data analyzed by the statistical package the social sciences (SPSS). The finding shows that product is the most important factor which influence on customers when they choose a hotel in Chiang Mai, especially cleanliness of room. The second important factor is that people are serviced by polite and friendly staff. In addition, customer’s characteristic (income) also has influence on the hotel selection from customers. The result suggests that cleanliness is the top priority for hotel. In other words, hoteliers should also ensure service providers have the best cleaning services which is managed by a team of professionals. This research also suggests that hotel should design training program for all staffs to maintain and enhance customer service standards, especially skill in providing a service with friendliness and politeness. Customers who have an expectation of effective, efficient and excellent services will help in a competitive the business and all of the quality service also help customer to make a decision for hotel selection easily.