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Currently all the businesses are facing hyper competition and all industries are using different components of visual merchandising and atmospherics to attract the customers, get competitive advantage and become leaders in the market by differentiating themselves from their competitors at same time to be successful in the market. Current research is on atmospherics of hotels and its effects on the behavior of customers in Pakistan. It will be helpful for owners, managers and marketers by providing them road-map to develop different strategies to attract and retain customers and ultimately getting a larger market share by eliminating the controversial elements from the hotels and influencing the behavior of customers.