Abstract:
Purpose
The purpose of this paper is to identify customer loyalty in hotel industry, in this case Hotel M, using American Customer Satisfaction Index Framework.
Design/methodology/approach
Questionnaire of 25 instruments on a 5-point Likert scale was distributed digitally using Google Form to guests of Hotel M. Demographic variables were gender, age, and purpose of stay. The analysis performed on 384 valid responses. Factor analysis was performed to test validity, and reliability was tested through Cronbach‟s alpha from SPSS. Research framework used was based on American Customer Satisfaction Index (ACSI). Hypothesis testing was conducted using AMOS, in which structural equation model was also generated.
Findings
The analysis confirmed that customer satisfaction positively influences customer loyalty of Hotel M. The significant correlations between variables showed that perceived value also positively influences customer satisfaction. On the contrary, customer expectations do not influence perceived value, nor does it directly customer satisfaction.
Originality/value
The researcher believes that the study using ACSI model in hospitality industry in Indonesia has not been done before in through research in Portal Garuda
