Improving Customer Loyalty in Hotel Industry: The role of Service Justice, Price Fairness, and Trust

Abstract

The increasing competition in the hospitality industry, particularly among non-stars Hotels, highlights the urgency of understanding factors that drive customer loyalty. This study aims to determine the influence of service justice dimensions and price fairness on customer loyalty, with trust as an intervening variable. The research involved 270 respondents who had stayed at non-stars Hotels in Kebumen Regency. The sampling technique used was random sampling, with data collected through a questionnaire instrument. Data analysis was conducted using SEM AMOS. The results indicated that distributive justice and procedural justice positively influence customer loyalty, while interactional justice has no significant effect. Price fairness also contributes to increased loyalty. In terms of trust, both distributive and interactional justice show positive effects. Similarly, price fairness enhances trust. Trust, in turn, positively affects loyalty and serves as a mediator variable. However, trust does not mediate the relationship between procedural justice and loyalty. This study shed a light for non-stars hotel manager regarding on maintaining customer trust by improving service and building customer trust.