The influence of hotel product innovation on customer loyalty in Cape Town

Abstract

The study identifies and examines evidence on how customer loyalty is influenced by hotel product innovation. This examination helps to understand differentiation and the competitive benefits of innovation in product and loyalty for such innovation. The innovation influence provides rationale to extend product innovation as a strategy to differentiate, compete, and gain loyalty in the hotel industry. With increased competition in the hospitality industry, the examination of hotel product innovation becomes imperative for both practical and theoretical relevance. This examination was done using a survey method to collect data from 242 travellers who visited Cape Town, stayed in a graded hotel, and visited Kirstenbosch Gardens during the period of the study. This quantitative survey was supported by data triangulation approach with respondents chosen using systematic random sampling. The semi-structured questionnaire comprised mainly closed-ended and a few open-ended questions. The study found that hotel product innovation has greater influence on customer loyalty and hotel choice. However, not all product innovations have the same level of influence, and not all influences are statistically significant. Therefore, the degree of influence was found to be a useful enabler of competitive and loyalty strategy in the hospitality industry.