Influence of Service Quality on Customer Loyalty in Luxury Hotel Chains in Tanzania

Abstract

Purpose: The aim of the study was to assess the influence of service quality on customer loyalty in luxury hotel chains in Tanzania. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicated a strong correlation between the two factors. High service quality consistently leads to increased customer loyalty within this segment of the hospitality industry. Studies have revealed that luxury hotel guests place significant emphasis on personalized service, attention to detail, and exceptional experiences. When these expectations are consistently met or exceeded, guests are more likely to exhibit loyalty behaviors, such as repeat visits, positive word-of-mouth recommendations, and a willingness to pay premium prices. Additionally, service quality has been found to play a crucial role in shaping guests' perceptions of value and satisfaction, which further contributes to their loyalty. Consequently, luxury hotel chains that prioritize and maintain high levels of service quality are better positioned to foster long-term relationships with their clientele and achieve sustainable competitive advantage in the market. Implications to Theory, Practice and Policy: Expectancy-disconfirmation theory, service profit chain theory and relationship marketing theory may be used to anchor future studies on assessing influence of service quality on customer loyalty in luxury hotel chains in Tanzania. Practitioners in luxury hotel chains can leverage the empirical findings to inform strategic decision-making and enhance service delivery. Policymakers and industry stakeholders can utilize the empirical evidence to advocate for policies that support service quality enhancement initiatives within luxury hotel chains.