Loyalty Programs and Repeat Business
Cornell School of Hotel Administration — “The theory that satisfied guests generate repeat business in the lodging industry was challenged by the results of a study of 364 guests at two similar big-city hotels. Analysis showed only a weak connection between satisfaction and loyalty, which is a precursor to repeat purchases. Examining such factors as purpose of travel and demographics, the study revealed another finding that may give hoteliers pause, especially considering the industry’s huge expenditures on frequent-guest programs. The study found that business travelers were among the least loyal of the guests responding to this survey.”