Encouraging consumer loyalty: the role of family business in hospitality

Abstract

PurposeThe aim of this paper is to understand the importance of consumer loyalty in the specific context of Hotel Family Business. This study proposes a conceptual model to examine how perceived service quality and corporate social responsibility (SCR) influence guest satisfaction and loyalty, and also how they relate to corporate image, perceived value and price.Design/methodology/approachThrough the structural equation model (SEM), a research model was proposed to examine SQ and CSR affect satisfaction and loyalty to the Douro Family Hotel and also, how they interact with corporate image, perceived value and price. The main purpose is to analyse the drivers of guest loyalty and its importance for the development and sustainability of family hotels in Douro (Portugal).FindingsThe results of the study indicate that CSR and SQ perceived by the guest have a direct and positive effect on guest satisfaction and loyalty to Douro family hotels. These variables are also determinants of the perceived value, corporate image and price.Research limitations/implicationsThe sample is restricted and obtained by the convenience technique, but with sufficient size for the application of the structural equations model. However, the results obtained cannot be generalised to all hotels or contexts, as they only reflect information on family hotels in the Douro.Practical implicationsFamily businesses are a substantial share of the European economy, from the industrial sector to the services industry, including also hospitality. In Portugal, family businesses likewise play a key role, both in terms of wealth creation and job creation.Originality/valueThese findings provide knowledge to family hotels on how they should implement a CSR policy that promotes service quality, corporate image and guest satisfaction, and therefore their loyalty and the competitiveness of the family hotel business.