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Research Article

EEO. 2021; 20(5): 5121-5131

Digitalization Impact on Customer Loyalty and Customer Satisfaction at Luxury Hotelsin India

Radhika Malhotra, Dr. Priyanka Srivastava, Dr. Parul Jhajharia, Dr. Rajat Gera.


With the advent of digitalization, the emerging and novel trends has been witnessed in society and businesses (Tihinen & Kääriäinen, 2016). Digitalization is also one of the effective among the determinants to placate customer requirements or manage customer complaints. The primary requirements expressed by the customers during their transaction with business organizations are (Loris, 1998) direct resolution of problems related to particular product/service, online access to information provided by the company, and ability to provide interactive support through digitalization.
To survive in the highly globalized economy, customer satisfaction is the key to turn customers into loyal customers. It is imperative for the organizations to produce superior quality products and services for competitive edge that yield highly satisfied and loyal customers (Fecikova, 2004). Customer satisfaction has been a major objective of any business unit. Hansemark and Albinsson (2004) have mentioned that customer retention and market share of the companies’ affect each other. Especially, in the service industry establishing and maintaining long-term relationship with customers (Gronroos, 1994; Berry, 2002) is the major key to success. Today, the customers have a wide array of choice with the emergence of new online channels leading to the high demand for differentiated products. This is very much evident in the hotel sector of this industry. In this cut-throat competition, the service firms are working hard to create added value for its customers for building customer loyalty.
This researchis empirical in nature as survey has been conducted by designing the questionnaire. As the research design is more formal and structured, hence it is descriptive research design. This study has been investigated with 242 sample size and the findings suggest the among various factors digitalization of services plays key role in customer satisfaction for Indian consumers in context to luxury hotels and also establishes relationship to build customer loyalty among customers availing services of luxury hotels in India. The purpose of this paper is to identify the determinants of customer’s satisfaction in context to luxury hotels in India by applying exploratory factor analysis. Customer satisfaction is the independent variable whereas customer loyalty is the dependent variable.Further this paper alsohypothesizes that there exists a significant relationship between customer satisfaction and customer loyalty by conducting regression analysis andexplores the impact of customer satisfaction on customer loyalty by applying ANOVA.This paper also emphasizes the role of digitalization in context to the luxury hotels in India.
The result indicates that digitalization is the key for gaining competitive edge for gaining the customer attention in the hotel sector. Therefore, digitalization of services presents an opportunity for the hotel sector to be in consistent touch with its customers leading to its growth and profitability. Luxury Hotels are aiming to provide their guests with innovative solutions and emerging technologies such as IoT, Virtual Reality & big data leading to increased intensity of customer touch points chiefly to attain their satisfaction, improved experience and greater customer loyalty.

Key words: Customer Relationship Management (CRM), luxury hotels, IoT, customer loyalty,customer satisfaction, Innovative Solutions, India

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