Guests' perceptions on factors influencing customer loyalty

Usha Ramanathan (Newcastle Business School, Northumbria University, Newcastle upon Tyne, UK)
Ramakrishnan Ramanathan (Nottingham University Business School, Nottingham, UK)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Publication date: 8 February 2011

Abstract

Purpose

This paper seeks to explore the performance of UK hotels, in terms of various service attributes, and whether it influences customers' intention to stay again.

Design/methodology/approach

Data are used from online customer ratings of 664 hotels in the UK for the purpose. The approach is based on an interesting use of statistical regression reported in the literature that attempted to classify different cues in hotels as critical, satisfier, dissatisfier, etc. In this study, six prominent attributes are considered, namely: customer service, cleanliness, room quality, value for money, quality of food, and family friendliness, rated by guests, based on their experiences of staying in hotels.

Findings

The findings reveal that “Value for money” is a critical attribute, while “Customer service”, “Room quality” and “Quality of food” are dissatisfiers. Business guests, and guests of independent hotels, exhibit similar behavior, but for leisure guests, and guests of chain hotels, “Value for money” is a dissatisfier.

Practical implications

“Value for money” is a critical attribute, in that good performance, in terms of this attribute, is critical for positively influencing guests' intention to stay again; however, failures in terms of this attribute cannot be compensated by improving service in terms of other attributes. There are three dissatisfier attributes (“Customer service”, “Room quality”, and “Quality of food”), implying that an inadequate performance in terms of these attributes could significantly adversely impact guests' intention to stay again.

Originality/value

This study would appear to be the first to use the extensive data available on the internet on guest ratings of hotels.

Keywords

Citation

Ramanathan, U. and Ramanathan, R. (2011), "Guests' perceptions on factors influencing customer loyalty", International Journal of Contemporary Hospitality Management, Vol. 23 No. 1, pp. 7-25. https://doi.org/10.1108/09596111111101643

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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