Customer loyalty in hotel industry

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Bowen and Shoemaker, (2003) stated that loyal customer plays a very important role for the hotel industry as today most of the hotels are facing tough competition in the global market place. Today relationship marketing is important for the hotel industry as it is the most effective marketing strategy in hotel industry. Relationship marketing is important for the hotel industry as hotel industry is involved in providing services to its customers. Today most of the hotels provide similar services across globe and it is very difficult to differentiate services from the competitors and therefore it is important for the company to introduce relationship marketing as the effective marketing techniques in their business operations in order to differentiate their services from their competitors. Relationship marketing in hotel industry aimed to improve quality of services provided by the hotel industry and hotel services in order to maximize customer satisfaction and ensure their customers to become loyal to their hotel operations and services.

O’Malley and Prothero, (2002) stated that the most important objective of relationship marketing is to develop and enhance relationship with their customers as well as among their suppliers. Because of this, relationship marketing helps company to develop loyalty among their customers. Barsky and Nash, (2002) stated that customers feelings and emotions while using hotel product and services are important factors of customers satisfaction level and their loyalty towards hotels. Bowen and Shoemaker, (2003) stated that customer satisfaction evaluate how product and services of hotel exceed customers expectations whereas customer loyalty can be evaluated from how customer are satisfied with the product and services of the hotel and whether they will return back to hotel for satisfying their needs and wants. Diller, (2000) stated that customer loyalty is very difficult to be evaluated or to measure it has become crucial factor for the hotels. Customer loyalty is difficult to measure as the value of loyalty depends on both qualitative as well as quantitative factors and therefore it is very challenging part from the hotel to differential their services with the help of introducing relationship marketing their hotel operations.