Improving Consumer Loyalty by Providing Service Excellent and Utilizing Business Relationships

Abstract

The increasingly fierce competition in the hospitality industry requires companies to provide the best quality service and relationships with customers to create loyalty. This study aims to empirically prove the influence of relationships and service quality on guest loyalty in several hotels in Bekasi. The study was conducted on hotels in the Bekasi area, West Java Province, with individual and group repeat guest samples. The sampling technique used was purposive sampling through interviews based on questionnaires, and field observations. The data analysis method used is path analysis. The research's empirical findings prove that the quality of service and the relationship affect guest loyalty. Although the partial relationship has a significant effect on guest loyalty, on the contrary, the quality of service has no impact. Furthermore, the overall contribution of service quality and relationship factors to explain the fluctuations that occur in changes in customer loyalty is only 43 percent. This means that other factors can increase the explanation of changes that occur in hotel guest loyalty.