This paper attempts to examine how the level of customers satisfaction of transportation industry and what attributes that contribute to customers satisfaction. The subjects are passengers of city bus operated in Yogyakarta, one of cities in Indonesia which is famous for its title as city of education and culture. The quality of services was assessed using an instrument developed from combined literature review and focus group discussion. The responses of the instrument, which were distributed to subjects using questionnaires, were used to develop house of quality. To identify service attributes that contribute to customer satisfaction, this paper uses Kano’s model. Service attributes are categorised based on their contribution to customers’ satisfaction. Using the model, service attribute that receive highest priority from the perspective of customers should be given highest attention from the company. Using the categorisation, company can identify what attributes that are critical for customer satisfaction and which are less important. Implications for theory and practices as well as direction for future research are also presented.