An Examination of Multi-brand Loyalty Among Hotel Loyalty Program Members

Loyalty programs are ubiquitous in the hotel industry, and many consumers are members of multiple loyalty programs. However, in the hospitality and tourism field, the research that examines multi-brand loyalty is scant. Therefore, this dissertation examines the multi-brand loyalty of hotel loyalty program members by examining how consumers divide their spending across multiple programs. This study used a multi-phase approach. First, a content analysis was conducted to evaluate current practices of loyalty programs. Second, a quantitative research method was adopted. Empirical data was collected from 330 respondents. The conceptual relationships among perceived value, experience satisfaction, loyalty, and share of wallet were analyzed through structural equation modeling. A loyalty matrix using attitudinal and behavioral measures was created, and each dimension was evaluated. This study found a significant impact of perceived value and satisfaction on attitudinal loyalty and share of wallet. Additionally, when mapped on a loyalty-continuum matrix, the majority of respondents exhibit high attitudinal loyalty but were split equally between low and high behavioral loyalty. The present study provides important implications. Theoretically, the content analysis found that most loyalty programs provide little differentiation from each other. Similarly, the results from the survey showed that consumers perceive the value of their loyalty programs to be similar. This current study found support for the applicability of the loyalty matrix on hotel loyalty program members with multiple memberships. It also extends the typology by introducing share of wallet to represent actual behavioral loyalty. Practically, this study offers suggestions on how loyalty programs can provide differentiation in the market. The study suggests opportunities on how managers can improve marketing strategies by segmenting customers in a more multi-dimensional way to increase loyalty and share of wallet