A transactional approach to customer loyalty in the hotel industry

Purpose The purpose of this paper is to explore the ways in which a transactional marketing approach can generate customer loyalty in a hotel brand. Design/methodology/approach The paper provides a review of the paradigm shift from transactional marketing to relationship marketing, in the services marketing literature. The inductive research used a qualitative approach, with multiple techniques including non-participant observation in several hotels; in-depth interviews with hotel managers; and telephone interviews with hotel customers in the UK. Findings The findings suggest that a transactional approach to marketing can be an effective strategy for hotels, which target niche segments with highly differentiated offers at competitive prices. It was found that this approach can create significant customer loyalty. Research limitations/implications The case study approach and focused sample mean that attempts to generalize the findings should be taken with care. Furthermore, this study does not attempt to measure the effectiveness of transactional marketing on customer loyalty; it reports findings from a qualitative study carried out to explore marketing practices in a small sample of hotels. Practical implications For practitioners, the paper suggests that transactional marketing and relationship marketing can be seen as complementary marketing strategies. Originality/value The paper provides novel insights into hotel culture, hotel/customer relationships, hotel service customization and customer loyalty. The paper challenges the received view that transactional marketing is less appropriate than relationship marketing in achieving customer loyalty in hotel branded operations.