Abstract: Emotional contagion has a great influence on service communications. The regulation of emotions helps the front line service employee to meet the demands of the customers successfully and hence, helps the organisations to achieve their goals. An analysis of the significance of emotional contagion in service interactions has been done, which also helps to develop a clear understanding in relation to deep acting as well as surface acting. It was seen that customer satisfaction is the most important as well as the most appropriate indicator or predictor of customer loyalty. Although, surface acting is negatively related to customer satisfaction, deep acting is optimistically related to customer satisfaction. Moreover, regulation of emotions helps the service personnel to display the appropriate emotions in front of the target customers, which in accordance with rules of the organisation. It also helps the service personnel to maintain proper work-life balance. Results also show that motivation also helps individuals to regulate emotions successfully and hence, ensure customer satisfaction.