Abstract

Building up loyalty through relationship marketing as in the case for a budget hotel has been found to be a long term investment and loyal customer were more tolerance towards occasional inferior performances. The objective of this study was to investigate the relationship quality of trust, commitment and satisfaction perceived by the customer that can influence their loyalty towards a budget hotel. A cross sectional data collection approach was employed on a group of 85 hotel guests who were staying in a budget hotel.

This study revealed that there was a direct relationship between relationship quality and loyalty with the exception to trust. Furthermore, this study confirmed that commitment and customer satisfaction acted as important factors in building customer loyalty.

This study implies to service providers in enhancing loyalty is to reach the customer through a mean of communication, customized service and comfort to the customer. Future studies suggest such as replicated of the study in other service industries (e.g. banking, hospitals, insurance, food service, and hotels) and also to consider a bigger sampling frame that will have the ability to be generalize.

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