Modelling the relationship between hotel perceived value, customer satisfaction, and customer loyalty

This study using structural equation modelling (SEM) investigates the relationship between the dimensions of customer perceived value, customer satisfaction, and customer loyalty in the context of hotels. The main procedure of this study was to conceptualise hotel perceived value as a multidimensional construct of seven dimensions with both cognitive and affective aspects. Five out of these seven dimensions; specifically, the self-gratification, price, quality, transaction, hedonic dimensions were then found to have a significant direct positive effect on customer satisfaction and/or customer loyalty. Two dimensions of hotel perceived value (aesthetics, prestige) were found to have no significant direct positive effect either on customer satisfaction or customer loyalty. It was also found that four hotel perceived value dimensions (hedonic, price, quality, transaction) had an indirect significant positive effect on customer loyalty through customer satisfaction as a mediator. Finally, customer satisfaction was found to have a direct positive effect on customer loyalty.