Customer loyalty: the future of hospitality marketing

For many years hospitality firms have believed that the goal of marketing is to create as many new customers as possible. While hoteliers believed it was important to satisfy the guests while they were on the property, the real goal was to continue to find new customers. This constant search for new customers is called conquest marketing. In the future, conquest marketing will not be sufficient. Instead firms need to practice loyalty marketing or retention marketing. The authors believe that this will be the successful wave of the future in hospitality. The goal of this paper is to present a framework for understanding customer loyalty. We do this first by examining the economics of loyalty. We then define loyalty and explain the difference between frequency programs and loyalty programs. We also show why satisfaction does not equal loyalty. We then introduce the Loyalty Triangle^©, which provides a framework for building customer loyalty. Each leg of the Loyalty Triangle^© is then examined in-depth, including examples of how hotel companies use the Loyalty Triangle^© to develop strategy. Next we present ways to measure the success of loyalty programs. Finally, we present future research issues.     

Tourist experience quality and loyalty to an island destination: the moderating impact of destination image

This study aims to explore the relationships among tourist experience quality, perceived value, perceived price reasonableness, tourist satisfaction with tour experience, and loyalty to an island destination by considering the moderating effect of destination image. The survey was distributed in person at an international airport. The findings revealed that tourists’ involvement with tours is the core of perceived value and price reasonableness, which increases tourists’ satisfaction. Perceived value is a stronger mediator between involvement and satisfaction than perceived price reasonableness. The moderating effect of island image is also uncovered. The theoretical and practical implications are discussed based on the findings.     

Environmental proactivity of hotel operations: Antecedents and the moderating effect of ownership type

This study examines the relative importance of three influential factors (stakeholder pressure, economic opportunities, and top managers’ personal environmental concern) in shaping managerial attitudes toward adoption of green programs in the hotel industry. The results, based on a sample of 235 top managers of hotels affiliated with three U.S. state hotel associations, suggest that stakeholder pressure is the most dominant predictor of managerial attitudes toward adoption of green programs followed by economic benefits and top managers’ personal environmental concern. In addition, the relationship between managerial attitudes toward adoption of environmental programs and organizational environmental commitment is found to be moderated by the ownership style. The relationship is stronger for independent hotels than for chain-affiliated hotels, indicating a more significant role of managerial discretion in implementing environmental strategies at the independent hotel setting than the chain hotel setting.     

Perceived crowding and festival experience: The moderating effect of visitor-to-visitor interaction

The purpose of this study is to explore the influence of two types of perceived crowding (spatial crowding and human crowding) on festival experience as well as how the interactions among visitors moderate the relationship by introducing the variable ‘visitor-to-visitor interaction’. To this end, taking Chinese local cultural festivals as the research object, empirical tests with regression analysis are conducted on 555 questionnaires concerning people's festival experience and perception of spatial crowding and human crowding. The results reveal an inverted U-shaped relationship between perceived human crowding and festival experience, whereas perceived spatial crowding consistently negatively affects the festival experience. Furthermore, the moderating effect of interactions among visitors is confirmed: the quality of interaction has different moderating effects on the relationship between different types of crowding perception and festival experience, and the quantity of interaction positively moderates the relationship between perceived spatial crowding and festival experience.     

Migrant labor in hospitality: The Cyprus experience

The hospitality industry depends to a great extent on migrant employees for its day-to-day operations. Cyprus’ accession to the European Union (EU) in 2004 saw an influx of migrant employees, mainly from ‘New Europe’, a development which posed and continues to pose, numerous organizational challenges. Adopting a qualitative methodology, the study set out to investigate migrants’ employment experiences in Cyprus, via the views of three different groups of employees; managers, local and migrant employees. Findings, can inform both industry stakeholders and academic scholars, while enhancing our collective knowledge regarding migrants’ contributions to the industry, ‘push’ and ‘pull’ factors of migrant employment, their intercultural relationships with the host population, and the impacts that migrant employment can have on the service delivery process.     

Antecedents and outcomes of emotional labour in hospitality and tourism: A meta-analysis

This paper meta-analytically investigates a theoretical framework of emotional labour and its antecedents and outcomes in the hospitality and tourism literature with 57 correlation matrices from published journal papers. Adopting the psychometric meta-analytical methods and meta-structural equation modelling (meta-SEM) methods, the study finds that emotional labour is related to antecedents including personality, emotional intelligence, customer orientation, social support and display rules, as well as related to attitudinal, behavioural, and customer-related outcomes. In addition, strain mediates the relations between emotional labour and its outcomes. This paper is the first meta-analysis on the relations between emotional labour and the antecedents and outcomes in hospitality and tourism management.     

The extension of the theory of person-organization fit toward hospitality migrant worker

The hospitality and tourism industry is suffering from a labor shortage, and migrant workers are supplying a large portion of labor in the contemporary economic market. This study extends the theory of person-organization fit in the context of hospitality migrant workers. This study also examines the effect of person-organization fit on migrant workers’ turnover intentions via job satisfaction and work adjustment. The results reveal that all three levels of fit, person-supervisor, person-group, and person-job, have a significant influence on work adjustment and job satisfaction, which in turn influence migrant employees’ turnover intentions. Among the three types of fit, person-group fit was the only one to have a direct effect on predicting turnover intentions. The findings imply that HR managers should make good hiring decisions for migrant employees based on the perceived three levels of fit between the applicant and the organization.     

How service seasons the experience: Measuring hospitality servicescapes

Hospitality servicescapes incorporate physical complexity and social interaction. These two features are often measured separately but rarely measured together in attempts to uncover consumer perceptions within these settings. A psychometric scale developed within the restaurant setting shows a five-dimensional structure for capturing the personality of a hospitality setting. In contrast to attribute-based measures, this measurement approach highlights the importance of service interactions in shaping consumer perceptions. The items proposed account for the dynamism of the setting including the heterogeneity possible due to high service levels. The scale indicates how certain consumer perceptions, as outlined in the dimensions of the proposed scale, are likely to influence consumer outcome behaviors. Managerially, the scale provides a more precise understanding of consumer perceptions within restaurants. As such, the scale can serve as an interesting positioning tool as well a method to evaluate consumer perceptions of restaurants.     

Measuring the experience of hospitality: Scale development and validation

This paper identifies what customers experience as hospitality and subsequently presents a novel and compact assessment scale for measuring customers’ experience of hospitality at any kind of service organization. The Experience of Hospitality Scale (EH-Scale) takes a broader perspective compared to existing scales, which predominantly measure hospitable behavior of service employees and are specifically developed for organizations in the hospitality industry. A thorough approach containing two qualitative and two quantitative studies resulted in the thirteen-item EH-Scale. The scale measures three experiential factors of hospitality: the experience of inviting (open, inviting, freedom), the experience of care (servitude, empathy and acknowledgement), and the experience of comfort (feeling at ease, relaxed and comfortable).     

Influence of environmental stimuli on hotel customer emotional loyalty response: Testing the moderating effect of the big five personality factors

The aim of this research was to test the moderation effects of the Big Five Factors (BFF) of personality on hotel ambience-guests’ consumption emotions–loyalty relationship. This was an attempt to extend the Stimuli–Organism–Response (S–O–R) that has been widely used in consumer studies without integrating personality factors that may exert effects on the relationships. A self-administered questionnaire was distributed to hotel guests; 563 responses were used in data analysis. The results of the structural model affirm the effect of hotel ambience on guests’ consumption emotions, with those emotions having significant effects on loyalty. Among the personality factors, extraversion, openness to experience and agreeableness significantly moderated the relationships, with groups scoring high in traits having stronger relationships than those lower in traits. Overall, the study supports the extension of the S-O-R with the inclusion of personality. Theoretical and practical implications are discussed.     

The moderating role of nationality on destination experience

ABSTRACT

Differences in tourists’ cultural values are significant factors in their product and service choices, yet they have generally been neglected in the literature. Therefore, this study examined how tourists’ nationalities influence their perceptions of service quality, affective image perceptions, and revisiting intentions. Activities were found to be more determinant on a destination’s affective image for Russian tourists, whereas accommodation, hospitality, and language communication services had a larger effect on German tourists.     

Motivation of internationalization and a moderating role of environmental conditions in the hospitality industry

As internationalization has been widely implemented throughout the tourism industry, it is important to understand what motivates a firm to internationalize its business. Thus, this study examines the motivation for internationalization based on the neoinstitutional theory. This study employs a hierarchical linear modeling (HLM) to test the proposed hypotheses, using the annual firm-level data of the tourism industry, and finds that tourism firms including casinos, hotels, and restaurants are demotivated to diversify their international expansion into different countries as their competitors increase the scope of countries in which they operate. However, if a firm perceives its competitors as speeding up the process of internationalization, that firm will also increase the pace of internationalization. In addition, this relationship between competitors and focal firms' internationalization varies according to environmental conditions (i.e., dynamism, complexity, and munificence). The findings of the study contribute to the internationalization and tourism literature.     

The effect of on-site experience and place attachment on loyalty: Evidence from Chinese tourists in a hot-spring resort

As an antecedent of place attachment, on-site experience plays a key role in obtaining customer loyalty in the context of a hot-spring resort operation. However, few studies have addressed the consequences of on-site experience in terms of its components and examined empirically the relationship between on-site experience and place attachment. This study was focused on ascertaining the dimensions of on-site experience and examining the relationship between on-site experience and loyalty through place attachment. A conceptualization of on-site experience is proposed, with three dimensions: environmental experience, on-site self-related experience, and on-site social interaction. The results revealed interesting relationships between components of on-site experience and place attachment. Finally, managerial implications of the results are discussed for managers of hot-spring resorts.     

Managing customers’ undesirable responses towards hospitality service brands during service failure: The moderating role of other customer perception

This research examines how perceived service failure severity (SFS) in an interactive multi-actor service context may lead to customer retaliation and revisit intention via sequential mediation of dissatisfaction and brand hate. The research also examines how other customer perception, reflected in appearance (OCP-A), similarity (OCP-S) and behaviour (OCP-B), conditions these relationships. In this attempt, the research employs two-experimental studies (Studies 1 & 2) and two self-reported surveys (Studies 3 & 4). Findings from Study 1 establish that service failure leads to retaliation via sequential mediation of dissatisfaction and brand hate. This study also supports that other customer perception can shape the adverse effect of service failure severity on dissatisfaction. Further, in Study 2 it is established that OCP-B is more influential (over OCP-S and OCP-A) in mitigating the adverse effect of SFS on dissatisfaction. Followed by this, Study 3 extends the findings into a different setting, and also confirms the external validity of Studies 1 and 2. Finally, Study 4 incorporates the transactional vs. relational orientation of customers, and the findings elucidate that OCP-B (over OCP-A and OCP-S) dominates in mitigating dissatisfaction for relational customers. However, no such dominance is observed for transactional customers. The findings from the research provide novel insights for managing service failure in hospitality sector.     

Retain or upgrade: The progress-framing effect in hierarchical loyalty programs

Building on goal pursuit theory, this paper addresses an important issue concerning the management of hierarchical loyalty programs (LPs), which are widely used in the hotel industry: how to—through customized communications—motivate LP members to either maintain or upgrade their membership status. Two experimental studies conducted with actual hotel LP members (Experiment 1) and general adult consumers (Experiment 2) provide converging evidence that a to-date (to-go) frame highlighting the accomplished (yet-to-be-accomplished) progress is more effective in motivating LP members to maintain (upgrade) their membership status. This research confirms the progress-framing effect (along with the underlying psychological mechanisms), establishing progress framing as an effective LP communication strategy for motivating hotel LP members toward membership maintenance or upgrading.     

The politics,satisfaction, loyalty,and success of Ph.D. students in hospitality and tourism

The purpose of this study was to explore the roles of organizational politics in educational institutions with regard to graduate students’ satisfaction with supervision and loyalty toward advisors, and thereby success of students in the Ph.D. program, within the hospitality and tourism discipline. The findings demonstrate that satisfaction and loyalty play important roles in doctoral students’ experiences in graduate education. Several implications for students and faculty are discussed.     

The concept of hospitality and an evaluation of its applicability to the experience of hospital patients

Intuitively, it would seem that there is a good case for seeing hospitality as a desirable attribute in a satisfactory hospital stay. This notion is thoroughly examined through the evaluation of various definitions of the concept of hospitality in the literature. The paper suggests a working definition of hospitality which may be both appropriate to the hospital environment, and amenable to evaluation through patient questionnaire analysis.The results show that the working definition of hospitality was credible and would prove to be a useful management tool for evaluating patient services in NHS hospitals.     

The well-being and subjective career success of workaholics: An examination of hospitality managers’ recovery experience

Workaholism and its influence on hospitality managers’ recovery experience, well-being, and subjective career success was examined. Participants were hospitality managers in the hotel, foodservice, airline, and tourism industries in the United States. Data was collected at two time points and the results show that hospitality managers’ recovery experience has a positive relationship with well-being and subjective career success. Furthermore, the positive relationship between recovery experience and job satisfaction and the positive relationship between recovery experience and career satisfaction were found to be stronger for people who are high in workaholism. Theoretical and practical implications based on the results are discussed.     

Responses to COVID-19: The role of performance in the relationship between small hospitality enterprises’ resilience and sustainable tourism development

Tourism is one of the hardest-hit industries by the global pandemic of Novel Coronavirus (COVID-19). Small tourism enterprises have been heavily affected and have had difficulty in business recovery. This research is an early attempt to explore the direct impact of small hospitality enterprises’ resilience on sustainable tourism development as well as indirect impact through performance. A pre-tested questionnaire survey was self-administered to owner-managers of small hospitality enterprises in Greater Cairo, Egypt. The results of structural equation modeling (SEM) using AMOS showed a positive, direct, and significant impact of resilience (planned and adaptive) on sustainable tourism development and indirect influence through performance. The results of the multi-group analysis showed that enterprise type has a significant effect on the results, where restaurant owner-managers expressed more resilience than their hotel counterparts. Several theoretical (for scholars) and practical implications for tourism policy-makers and owner-managers have been discussed and elaborated.     

Market accessibility and hotel prices in the Caribbean: The moderating effect of quality-signaling factors

The purpose of the paper is to investigate the influence of market accessibility on hotel prices and how this influence is moderated by various quality-signaling factors, such as online user ratings, “thumbs up” (recommendation) percentage, hotel class, and chain affiliation. Using a randomized sample of hotels in the Caribbean islands, we employ a three-level mixed-effect linear regression model to investigate the plausible relationship between market accessibility and hotel prices. After controlling for unobserved island-level and hotel-level characteristics, the model indicates that in most periods, low market accessibility (high flight costs) leads to lower hotel prices, and this influence is mitigated by well-established positive reputations as represented by the quality-signaling factors. Our findings imply that hotels should work to increase their reputations to help buffer the impacts of inaccessibility. In an effort to increase market accessibility, one course of action is to reduce airport landing taxes and fees.