A mixed methods study of X Hotels in Bangladesh : evaluating the effectiveness of hotel loyalty programs on customer retention and repeat booking behavior

Abstract

This paper discusses how the hotel loyalty programs are effective in promoting retention, satisfaction, and trust among customers and Hotel X in Bangladesh. Data were gathered on 25 hotel buyers by use of a structured survey in a mixed-method approach and 15 hotel employees and managers using semi-structured interviews. Quantitative findings indicate that perceived value, service satisfaction, and trust have significant impacts on customers loyalty intentions and qualitative information indicates that clear communication, personalised rewards, and regular involvement of staff in the delivery of the program is essential. Based on the frameworks of the theories of loyalty by Kandampelly and Suhartanto (2000) and Olivers (1997), the research shows that emotional and behavioral elements of loyalty are enhanced in case the loyalty programs are pertinent, just, and digitally available. Despite the small sample size, the study carries useful implications to hotel managers, as benefits should be tiered, digital integration, and constant training of the staff are necessary. In the future, research needs to utilize big samples, longitudinal and cross-cultural approach to further understand the dynamics of loyalty in the hospitality industry.