Exploring the Impact of Service Quality on Commitment and Customer Loyalty in Jakarta's 3-Star Hotels

This study will specialize discussion in hotel business sector, particularly the 3-star hotels in Jakarta. 3-star hotels getting tough competition from budget hotels that continue to emerge in Jakarta and surrounding areas. Increased competition in the service industry for causing a company to be very concerned in terms of acquiring and retaining customers. Customer complaints is also the reason research in a 3-star hotels, in addition to the emergence of a budget hotel which adds competition within 3-star hotels. The paper aim to examine and explain the variable service quality, commitment, customer loyalty and influence between these variables. Design/methodology/approach: The unit of analysis in this research is the organization, 3-star hotels in Jakarta. The data collected data through a structured questionnaire based on the review of relevant literatures and an overview of the theories. Data were analyzed using SEM (Structural Equation Modeling). Findings: There is a positive influence of service quality on customer loyalty. They have a strong emotional attachment to the hotel that provides the right services, quickly, in accordance with promised and will promote it among friends, family and colleagues. There is a positive influence of the service quality on commitment. Hotel employees who look neat, show sincerity to help make customers feel an emotional bond, being concerned with the success of the hotel, have a sense of belonging, stayed at the hotel because of the need and hard to stay at another hotel. There is a positive influence of commitment on customer loyalty. Hotels that form a strong emotional bond so customers will choose this hotel brands and do not want to stay at another hotel. Originality/value: Commitment appropriately used in the context of a 3-star hotel to be able to induce customer loyalty, to see the positive influence on the relations to customer loyalty.