The Impact of Service Quality, Digital Innovation, and Loyalty Programs on Customer Satisfaction and Loyalty in Luxury Hotels

Alhassan Fatawu

Tamale Technical University

Alhassan Mukaramatu

Tamale Technical University

Abdallah Anifa Hillary

Tamale Technical University

Salman Tahiru

Tamale Technical University

Titiakaa Osman Rubamah

Tamale Technical University

Keywords: Customer Satisfaction, Service Quality, Digital Technology, Innovation, Loyalty Programs, Luxury Hotels


Abstract

This study seeks to investigate customer satisfaction and loyalty in luxury hotels in the five northern regions of Ghana. The primary objectives are to assess the impact of service quality on customer satisfaction, evaluate the role of digital technology and innovation in enhancing customer satisfaction, and examine the effectiveness of loyalty programs in fostering customer satisfaction and loyalty. Employing a quantitative research approach, the study utilized a survey design with a sample size of 121 respondents. The analysis revealed several key findings. Firstly, there is a significant positive relationship between service quality and customer satisfaction, emphasizing the necessity for luxury hotels to prioritize aspects such as reliability, responsiveness, assurance, empathy, and tangibles. Secondly, the study highlights the substantial impact of digital technology and innovation on customer satisfaction, indicating that integrating advanced technological solutions and innovative practices into hotel operations is crucial. Lastly, the positive influence of loyalty programs on customer satisfaction confirms their effectiveness in fostering commitment. These findings underscore the strategic importance for luxury hotels to invest in high-quality service, digital transformation, and robust loyalty programs to enhance customer satisfaction and build long-term loyalty.