Factors that Effect the Level of Consumers Loyalty for Budget Hotel in Indonesia

  • Andala Rama Putra Barusman, Tina M. B. Virgawenda, Yola Aprila Arwis

Abstract

The hospitality industry is growing so rapidly recently, especially in Indonesia which has abundant natural resources that attract tourists to visit Indonesia. This phenomenon has opened up the potential growth of budget hotels in Indonesia. The purpose of this study was to determine the factors that affect the level of consumer loyalty in the budget hotel in Indonesia. This research used library and field research method. The data used is primary and secondary data which came from documentation, interviews and survey questionnaires. The data analyzed with qualitative and quantitative methods. Based on the analysis of data, it obtained conclusions that service quality significantly has positive effect to consumers satisfaction; image significantly has negative effect to consumers satisfaction; service quality significantly has positive effect to trust; image significantly has positive effect to trust; consumer satisfaction significantly has positive effect to trust; trust significantly has positive effect to consumers loyalty; consumer satisfaction significantly has positive effect to service quality and trust. On the other hand, consumer satisfaction has not supported mediation between image and trust and trust significantly has positive effect to consumer loyalty.

Published
2020-06-05