Impact of Factors that Affect Customer Loyalty during Hotel Stay: A Study of Mediating Role of Customer Satisfaction in Pakistan

Abstract

The study investigates the impact of services cape factors—furnishings, customer service, brand image, and amenities on customer loyalty in the hotel industry of Pakistan, examining customer satisfaction as a mediating variable. The research adopts a quantitative design using a structured Likert-scale questionnaire distributed among hotel guests in Hyderabad, Karachi, and Lahore. Data from 98 valid responses were analyzed through regression analysis using SPSS to test four hypotheses. Findings reveal significant relationships among services cape, customer satisfaction, and customer loyalty. Results further confirm partial mediation of customer satisfaction in the relationship between services cape and loyalty, indicating that the physical and experiential environment significantly enhances guest satisfaction, which in turn strengthens loyalty intentions. The study contributes empirical evidence from a developing-country context to the hospitality literature, emphasizing the pivotal role of service quality and ambience in driving repeat patronage. Managerially, hotel operators are encouraged to prioritize personalized customer service, aesthetic interior design, and functional amenities that align with guest expectations to sustain competitive advantage. Future research should extend to cross-cultural or longitudinal analyses to better understand evolving customer perceptions post-pandemic.