Loyalty: A Strategic Commitment

Abstract

A study of 892 luxury-hotel guests, most of whom travel frequently and primarily on business, supports the idea that relationship marketing can benefit luxury-hotel marketing. The authors developed a model of service relationships based on focus groups and customer-loyalty studies. This study primarily tested benefits that hotels could offer guests to foster loyalty. Benefits that garnered strong support were room upgrades, flexible check in and check out, personalized services, and expedited registration; being able to request a specific room; and employees who take guests' problems seriously. Trust is also an antecedent of loyalty; hotels can foster trust by ensuring guest safety, providing consistent service, seeing that employees follow through on guest requests, being truthful, and communicating accurately. Unfortunately, the respondents felt that their hotels fell short on the benefits that foster loyalty and the attributes that foster trust.