Do Loyalty Program in the Airline and Hotel Industries Affect Customer Satisfaction and Loyalty?

Eslam Fathy, Heba Zidan

Abstract


This paper offers a framework for studying the frequent loyalty programs’ role in flyers’/guests’ satisfaction and loyalty throughout a hospitality and airlines industries. The purpose of the study aims to examine the effect of loyalty programs on enhancing flyers’/guests’ satisfaction and loyalty and the mediation role of satisfaction between the relationship between frequent loyalty program and loyalty in the context of airlines and hospitality industry. The survey used a three-section format, first section asking the respondents about the frequent loyalty program in hotel, second section asking them about frequent loyalty programs in airlines, and finally, ask about respondents’ profile. 276 questionnaires were collected from twice tourist's frequent membership in loyalty programs (airlines/hotels). This study obtained secondary data from Alexandriahotels and performed the Correlation and regression and mediation models to test the study hypotheses. The results analyzed to draw general conclusions regarding the effect of the frequent loyalty programs on flyers’/guests’ satisfaction and loyalty. Results of this study supported the research hypotheses and indicated firstly, that loyalty programs do have positive significant effects on flyers’/guests’ satisfaction and loyalty. Secondly, the airlines’ frequent loyalty programs have effects more than hotel frequent loyalty programs. Thirdly, the satisfaction significant mediates the relationship between the frequent loyalty program and loyalty. The findings are expected to provide valuable insights for hotel marketers to understand the gap in frequent hotel loyalty programs and develop marketing tactics, improve hotels’ frequent loyalty programs to maintain loyal guests and maximize profitability as well.


Keywords


Flyers, guests, frequent loyalty program, flyers’/guests’ satisfaction, flyers’/guests’ loyalty, effects, affect, correlation, regression, and mediation

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