An empirical study on mechanism of loyalty program in hotel industry

The hotel industry is one of the earliest businesses that provide loyalty programs (LPs), the implementation of the plan is comparatively mature, but the theoretical research on it is still lacking and lagging. According to the reality of China´s hotel industry, we put forward and testified the mechanism of loyalty program-through customer satisfaction, customer confidence and switching cost, LPs act on customer loyalty with the perceived value of customers. The conclusion had some implications in designing LPs for different grade hotels.