Customer Loyalty Programs and Repeat Patronage in Hotels: The Role of Perceived Service Quality as a Moderator

Abstract


This study investigates the influence of customer loyalty programs on repeat patronage, with perceived service quality as a moderating variable, in selected hotels in Ilorin, Kwara State, Nigeria. Amid increasing competition in the hospitality industry, customer retention is critical for business sustainability. Employing a quantitative survey design, data were collected from 124 hotel guests selected from a population of 180 registered hotels using Cochran’s formula. Descriptive and inferential statistics, including regression analysis, were used to test the research hypotheses. Findings indicate that well-structured, reward-driven loyalty programs significantly enhance repeat patronage, while perceived service quality strengthens this relationship, highlighting that loyalty schemes alone are insufficient without high service standards. The study also notes that incorporating incentive-based strategies from the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment, such as discounts for repeat corporate clients, further enhances loyalty outcomes. The research recommends that hotel operators invest in engaging, transparent loyalty programs while ensuring superior service quality across all customer touchpoints and regularly assess program effectiveness through customer feedback and market research. Although limited to Ilorin and based on self-reported data, the study provides a useful framework for understanding customer loyalty in Nigeria’s hospitality industry, with future research encouraged to explore broader regions and qualitative approaches for deeper insights.

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