The Effect Of Online Booking System On Customer Loyalty A Case Of Selected Hotels In Addis Abeba

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Date

2020-05

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Publisher

Addis Ababa University

Abstract

Customer loyalty has become highly valuable way of securing competitive advantage for hotels to improve organizational performances. Hotels use provision of online bookingssystem as an important strategy to increase the customer loyalty through quality service. This study was conducted with an objective of identifying effect of online booking system on customer loyalty at selected hotels in Addis Ababa. The study conceptualized and constructed five dimensions of online booking system: reliability,trust, ease of use, perceived usefulness and relative advantage. The study has targeted the users of online booking system. The study followed convenience sampling method that the customers were contacted at hotels. Data were collected from primary sources through questionnaire and analyzed through both descriptive and regression methods. This study has used multistage sampling to sample the customers in the targeted hotels. The hotels for the study were selected through simple random sampling method from the strata of star levels. A total of 9 hotels were targeted with sample size 308 respondents.The descriptive analysis was conducted by using mean and standard deviation and the regression analysis was conducted by using Ordinary Least Square regressions method. The result indicated that online booking system has effect on customer loyalty in the selected hotels. All indicators of online booking system performance (reliability,trust, ease of use, perceived usefulness and relative advantage) positively affect customer loyalty. Based on the findings, the study recommends that further improvement of online booking system that is implemented by the hotels

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Keywords

Online Booking System, customer loyalty, hotel

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