The Impact of Monetary Benefits in a Pandemic Situation—Navigating Changes in Customer Loyalty through Negative Switching Barriers in the Hotel Industry

Abstract

The present study examines the impact of monetary benefits on hotel loyalty programs in a pandemic situation, and the relationship between monetary benefits and multidimensional loyalty aspects. Since 2020, international hotel suppliers have focused on monetary investments and promotions through hotel loyalty programs that have seen extraordinary results in the Korean market. Feedback from the market raises questions as to whether these results are caused by true loyalty or economic sensitivity caused by a recession. Thus, it is necessary to investigate this phenomenon from a relationship perspective. In this research, negative switching barrier facets were given a moderating role with multidimensional loyalty factors consisting of attitudinal loyalty, behavioral loyalty, and composite loyalty. A quantitative method was used, in which consumers in Korea were surveyed via an online questionnaire. In total, 494 responses from consumers were analyzed. Notably, negative switching barriers were found to have a negative moderating effect on the relationship between monetary benefits and attitudinal loyalty. This result implies that although the customer is economically sensitive during a recession, monetary benefits and the market situation can cause fatigue that potentially produces obstacles to long-term relationships with the customer. The results of this study highlight the hotel suppliers involved in monetary competition during a pandemic situation and the need to develop solid long-term relationships through customer loyalty strategies.