Impact of price fairness, service quality, and destination image on tourist loyalty and satisfaction: A case study of Lake Toba, North Sumatra

Abstract

Tourist loyalty is crucial for enhancing the well-being of local communities in a region. This study aims to investigate how price fairness, service quality, destination image, and tourist facilities directly and indirectly affect tourist loyalty via tourist satisfaction at Lake Toba, North Sumatra. A quantitative method was utilized for this research. The study focused on tourists who visited Lake Toba in 2022, totaling 179,609 individuals. A sample of 280 tourists was selected using an accidental sampling method, where tourists were chosen randomly. The data collection was conducted through questionnaires based on specific indicators for each variable studied. The data was analyzed using the Structural Equation Model (SEM) technique, employing the Partial Least Square (PLS) method. The findings reveal that tourist satisfaction plays a significant role in mediating the impact of price fairness, service quality, destination image, and tourist facilities on loyalty to Lake Toba, both directly and indirectly. The results indicate that price fairness is the most critical factor for tourists when considering returning to Lake Toba. This study suggests that there should be an authority responsible for ensuring price fairness in tourism services and products at Lake Toba to maintain and improve tourist loyalty.