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Higher education institutions are the entities of specific business operation having knowledge-based intellectual and innovative products in their fundamental market offer. Bosnia and Herzegovina is a country in transition which refers to education as well, in which the Bologna Declaration has been applied for about last ten years, according to which higher education institutions are autonomous in their operation and they are responsible for the quality of services they provide to students. Non-experimental empirical study was conducted in order to determine student perception of the quality of services in higher education institutions in Bosnia and Herzegovina, Republic of Srpska. The survey was conducted with 863 students, with an average age of 21.5 years, who were divided into two subsamples (the students from public institutions, N = 573 and the students from private institutions, N = 288). The research instrument was an assessment scale based on HEDUQUAL questionnaire, with 30 quality indicators. The scale used to assess the quality of services showed high reliability (Chronbach Alpha 0.966). The students from public higher education institutions expressed moderate satisfaction (Mean 3.14), and the ones from private institutions expressed a slightly higher level of satisfaction (Mean 3.68) at the level of statistical significance Sig. = 0.000. Application of factor analysis (KMO=0.962, Sig. 0.000) in both subsamples, confirmed the one-factor structure of the instrument. Distribution of item observation within the isolated factor is more homogeneous among the students of private faculties (55.44% of the common variance is explained), in contrast to the students from public universities (44.53% of the common variance is explained). In the overall quality of services, the students perceive indicators based on mutual trust (providers and recipients of services) and empathy of employees towards students (quality of relationships between service providers and users) more intensively. The results obtained can be useful for managements of higher education institutions for improving the quality of services at faculties and as a basis for future similar research. [ABSTRACT FROM AUTHOR]