Customer Retention and Loyalty in the Independent Mid-Market Hotel Sector

Abstract

Increasing competition from branded budget hotels and upscale, branded, corporately owned hotels suggests the future of some independent mid-market hotels is in jeopardy unless a strong and carefully thought out marketing proposition can be offered to customers. This exploratory article seeks to determine how hotels in the independent mid-market sector can achieve sustained (or long term) customer loyalty and thereby prevent switching by customers to competing budget and corporately owned hotels. From this, conclusions will be drawn on the likely current success of independent mid-market hotels in satisfying customer requirements, attaining loyal customers and limiting switching. of fundamental importance is the question of whether these challenges can be addressed and overcome or whether the future of the independent mid-market hotelier really is at risk.

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