Abstract

1. LITERATURE


1.1. RESEARCH SUBJECT

Today, it is becoming increasingly difficult to ensure and retain hotel customers in an intensely competitive environment. In this case, it pushes hotel businesses to establish long-term relationships between customers and hotel businesses, new quests to ensure customer satisfaction and retain customers. Hotel businesses have been in various searches to establish long-term relationships with their customers, ensure customer satisfaction and retain customers.


1.2. RESEARCH PURPOSE AND IMPORTANCE

The purpose of this study is to examine the relationship between customer loyalty programs in order to increase the satisfaction of the customers staying in the 5-star hotel operating in the Kyrenia Region in Northern Cyprus and to retain the customers. The importance of customer satisfaction, customer loyalty and loyalty programs is becoming more and more important in hotel businesses and the quality of service provided by hotel businesses, which is an important factor in the competitive environment, is also increasing significantly.


1.3. CONTRIBUTION of the ARTICLE to the LITERATURE

This research concludes that loyalty programs are important to retain and maintain customer satisfaction, but are not very much appreciated in hospitality or other industries, and therefore new research can be done on how to offer better loyalty programs for valued customers in these sectors.


2. DESIGN AND METHOD


2.1. RESEARCH TYPE


Descriptive research type was used in this research. Hypotheses were determined. Because the studies for developing a hypothesis have the characteristics of descriptive research.


2.2. DATA COLLECTION METHOD


This research was carried out by using a simple sampling method from the non-random sampling technique for customers staying in a 5-star hotel operating in the Kyrenia region. There are a total of 153 hotels in Northern Cyprus, 22 of which are in the 5-star hotel group.


2.3. QUANTITATIVE / QUALITATIVE ANALYSIS

The method used was the quantitative method. SPSS version 22. statistical program was used to analyze research data.


 



2.4. RESEARCH MODEL


In accordance with the model of the study, the relationships between customer satisfaction and loyalty have been examined, the purpose of the study and hypotheses have been determined in order for the managers who apply loyalty programs for the customers of 12 five-star hotels operating in Kyrenia to retain the customer.

2.5. RESEARCH HYPOTHESES


H1: Loyalty programs have a significant effect on customer retention.
H1a: There is a significant relationship between satisfaction with customer loyalty programs and customer retention.
H1b: There is a significant relationship between trust in customer loyalty programs and customer retention.
H2: There is a significant relationship between customer satisfaction and customer retention in hotel businesses.
H3: There is a significant relationship between customer loyalty and customer retention.


3. FINDINGS AND DISCUSSION


3.1. FINDINGS as a RESULT of ANALYSIS


In this study, Kaiser Meyer Olkin (KMO) and Barlett test were used to test and Varimax method was used to organize the questions consistent in the data set to make the study manageable and to determine whether the data set was suitable for factor analysis. Findings of the research show that loyalty programs are the most important means of retaining customers, directly affecting customer loyalty and increasing customer satisfaction. Loyalty programs enable the customer to retain after influencing customer satisfaction and loyalty.


3.2. HYPOTHESIS TEST RESULTS


As a result of the research, it has been concluded that customer satisfaction and loyalty programs are important factors that can increase a customer loyalty and these factors are important factors in keeping the customer. When approached from a different perspective, all hypotheses were accepted because the p value was less than 5%.

3.3. DISCUSSING the FINDINGS with the LITERATURE


According to Wijaya (2005); loyalty programs applied increase customer satisfaction and turn them into loyal customer potential. According to Singh and Khan (2012), keeping the customer is the factor that ensures the highest level of profit for the business, this is the customer satisfaction and loyalty that provides this factor. According to Barutçugil (2009) and Lin and Wu (2011), customer satisfaction has a positive effect on customer loyalty and leads to customer retention. Furthermore, Rashid et al. (2015) and Verhoef (2003) stated that improved customer loyalty programs will keep customers in the company, increase customer satisfaction and affect customer retention positively.


4. CONCLUSION, RECOMMENDATION AND LIMITATIONS


4.1. RESULTS of the ARTICLE


As a result of the research, it has been concluded that customer satisfaction and loyalty programs are important factors that can increase a customer loyalty and these factors are important factors in keeping the customer. According to the data obtained from the literature review; loyalty programs applied increase customer satisfaction and turn them into potential loyal customer; Retaining the customer is the factor that maximizes the profit of the business, this is the customer satisfaction and loyalty that provides this factor; Customer satisfaction has a positive effect on customer loyalty and leads to customer retention; Improved customer loyalty programs will increase customer satisfaction and positively affect customer retention by keeping customers within the company. In addition, hotel businesses should focus on loyalty programs that provide a sense of belonging to the customer, strengthen emotional ties with the business and ensure good communication with the customer.
4.2. SUGGESTIONS BASED on RESULTS


Hotel businesses should focus on loyalty programs that provide a sense of belonging to the customer, strengthen emotional ties with the business and ensure good communication with the customer.


4.3. LIMITATIONS of the ARTICLE


Future studies should support this view with richer research structures, as it seems that loyalty programs have failed to achieve consensus on whether customer loyalty creates customer satisfaction. Loyalty programs are important to retain and maintain customer satisfaction, but are not very much appreciated in hospitality or other industries, and therefore new research can be done on how to offer better loyalty programs for valued customers in these sectors.