Factors influence customer loyalty in hotel industry

Yan, Zhang (2015) Factors influence customer loyalty in hotel industry. Masters thesis, Universiti Utara Malaysia.

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Abstract

There is no doubt that hotel industry develops very fast in modern society and becoming a global industry. More and more people rely on hotel when they are travelling, doing business, visiting friends and relatives and so on. With the intense competition, how to attract customers and what factors influence customers’ loyalty seem to be the main consideration for hotel industry. Thus, the main objective of this research is to examine factors influence customer loyalty in China’s hotel industry. Review of the previous gaps in literature concluded that three predictors were counted as major contribution for customers’ loyalty namely perceived value, service quality, and brand image. Besides, customers’ satisfaction also postulated to mediate such relationship. A survey among 200 respondents from three star rating hotel in Hebei province, China, indicated that brand image has significant relationship on customer satisfaction and loyalty. As postulated, customer satisfaction also partially mediate the relationship between brand image and customer loyalty. Though, it is not statistically significant, hotelier simply cannot ignore the importance of service quality and perceived value because it is part and parcel of brand image indicators. Future research should focus on huge sample that cover other star rating hotels and China province to have better generalization on understanding predictors of customer loyalty in China’s Hotel

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