An Empirical Study On Effective Mechanism Of Loyalty Program In Hotel Industry

Loyal customers are a major source of corporate profits. Loyalty program as a tool in business relationship marketing, plays an increasingly important role on improving and maintaining customer loyalty, and has become a very important component of corporate marketing strategies. Issues related to customer loyalty program have also begun to attract further attention in the academic world.The hotel industry is one of the earliest businesses that provide loyalty programs, the implementation of the plan is mature, but the theoretical research is still lacking. In particular, the domestic hotel industry, which has started late to provide loyalty programs, is lack of corresponding theoretical support.The purpose of the essay is to do confirmatory research on the customer loyalty and loyalty program theories, according to the reality of China's hotel industry, focusing on the mechanism of loyalty program. And to analysis the loyalty program acts on customer loyalty with the perceived value of customers, through three factors of customer satisfaction, customer confidence and switching cost. Base on that, the essay proposed mechanism model of loyalty program. The essay made suggestions and strategies on how to develop an effective loyalty program with three steps of building the basis, implementing the detail content, and promotion the program in China's hotel industry through confirmatory research phase of the research results and analysis of data.