The effectiveness of loyalty programs in the hospitality and travel industry

Authors

  • Dr. Garima Mishra Assistant Professor, Apex University, Jaipur (Raj.) Author

DOI:

https://doi.org/10.67497/ijrip.1.2.56

Keywords:

Loyalty Programs, Customer Loyalty, Hospitality Industry, Travel Industry, Customer Satisfaction, Perceived Program Value, Behavioral Loyalty

Abstract

Background: Loyalty programs have become a cornerstone of customer retention strategies in the hospitality and travel industry. Despite their ubiquitous adoption, evidence on their effectiveness in generating genuine, long-term customer loyalty as distinct from mere repeat purchase behavior driven by reward incentives - remains mixed. This study examines the effectiveness of loyalty programs in the hospitality and travel industry, with a focus on perceived program value, customer satisfaction, behavioral loyalty, emotional attachment, and the moderating role of switching barriers.

Methods: A cross-sectional quantitative survey was administered to 145 loyalty program members across hotel and airline sectors. Data were collected using a structured, self-administered questionnaire based on a five-point Likert scale. Descriptive statistics, Pearson correlation analysis, and multiple linear regression were employed to analyze relationships between study constructs.

Results: Loyalty program participation was positively and significantly associated with repeat purchase behavior (r = 0.61, p < 0.001), customer satisfaction (r = 0.57, p < 0.001), and brand advocacy (r = 0.49, p < 0.001). Perceived value of the program was the strongest predictor of behavioral loyalty (β = 0.52, p < 0.001), followed by emotional attachment (β = 0.38, p < 0.001). Switching barriers moderated the relationship between program satisfaction and loyalty. However, approximately 43% of enrolled members demonstrated low engagement and benefit utilization, indicating a persistent gap between enrollment and active participation.

Conclusion: Loyalty programs are effective in driving repeat purchase behavior when they are designed around perceived value, personalized reward structures, and emotional engagement strategies. Programs that rely solely on transactional incentives demonstrate weaker long-term customer retention. Industry stakeholders are encouraged to invest in post-stay engagement, benefit communication, and behavioral segmentation to maximize program returns.

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Published

14.07.2026

Data Availability Statement

Not applicable

Issue

Vol. 1 No. 2 (2026): May Issue

Section

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How to Cite

The effectiveness of loyalty programs in the hospitality and travel industry. (2026). International Journal of Research, Innovation and Practice, 1(2), 102-111. https://doi.org/10.67497/ijrip.1.2.56

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