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As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programmes are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction, and ultimately the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.

Purpose Having Middle Eastern tourism industry as the context, this study aims to examine the impact of the four main dimensions within service innovation (i.e. product, process, organizational and marketing innovations) on tourist satisfaction; subsequently, towards the development of destination loyalty. Realized that religiosity prevails as an important social force that shapes individual behaviours, this study, hence, placed further assessment upon its moderating role, specifically in the relationships between tourist satisfaction and destination loyalty. Design/methodology/approach With adopting the approach of self-structured questionnaire, 214 usable responses had been collected for this study. Obtained data was then analyzed by conducting exploratory factor analysis, confirmatory factor analysis and multiple linear regression analysis through the usage of structural equation modelling. Findings Analysis of obtained data has revealed all the investigated dimensions within service innovation as active predictors to tourist satisfaction, with the exception of product innovation, while having marketing innovation being of highest significance. In turn, tourist satisfaction is found to greatly influence the formation of destination loyalty. Findings then provide notable indication on religiosity as a moderating factor to the proposed relationships within the investigated framework, between service innovation and tourist satisfaction, as well as tourist satisfaction and destination loyalty. Originality/value This study, thus, revealed the level of religiosity, particularly from the standpoint of Islamic perspectives, in playing a critical role towards predicting capability of service innovation on tourist satisfaction, and further, destination loyalty. Contributions hereby lie on theoretical and pragmatic insights concerning aspects of service and Islamic marketing within today’s tourism front.

Creating and maintaining customer loyalty is critical for the sustainability of a hotel in a competitive environment. This research aims to examine factors that influence customer loyalty in the Malaysian hotel industry. Quantitative research approach has been adapted in this research by distributing questionnaires to 200 respondents at Kuala Lumpur International Airport (KLIA) during the survey period. Findings of this research have discovered that perceived service quality, perceived value, customer satisfaction and corporate image are the significant factors in predicting customer loyalty. Trust, on the other hand is not significant in predicting customer loyalty in the hotel industry in Malaysia. Findings of this research provide hotel operators with a better understanding on factors that could lead to customer loyalty, which subsequently will enable them to direct effective hotel services strategies to enhance their long-term business growth by building up a strong and loyal client base.