Perceived Experience, Perceived Value and Customer Satisfaction as Antecedents to Loyalty among Hotel Guests

Abstract

ABSTRACT Despite the hospitality industry reeling under the impact of COVID-19, few studies provide practitioner-oriented perspectives capturing dimensions of guest loyalty within emerging markets. The researchers examine the influence of perception of value and experience on guest loyalty within the context of the Indian hotel industry. A random questionnaire survey of 170 occupants across three renowned hotels during the first week of COVID-19 induced lockdown in India and subsequent analysis using structural equation modeling confirm that both guest loyalty and satisfaction continue to be positively influenced by perception of value and the service experience. Both guest satisfaction and loyalty are strongest among guests who perceive high service value. Guest loyalty is also indirectly influenced by value perception and service experience through the mediation of customer satisfaction. The relationship between perceived experience and guest satisfaction is found to be stronger when perceived service value is higher. The hospitality industry, a vector of pandemic occurrence, can use this opportunity to reset business models. While micro-segmentation is called for in positioning offerings to target groups, efforts to reduce customer sacrifice by simplification of pricing and transaction procedures should be implemented across the spectrum in adjusting to the new normal.