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A record 1,480 new hotels opened, and new records are expected to be set in the coming years (Ford, 1998, p. 59). As a result, an increasing number of hotel firms are pursuing fewer new customers. Under these circumstances, a large share of any firm's resources must be devoted to present customers. Firms may increase sales and their market shares by decreasing prices, expanding their distribution channels, launching promotional campaigns, and retaining their current customers (Cravens, 1994). However, customer loyalty would be a more profitable approach because as a mature industry, the hospitality business must pursue market-share gains, rather than market-growth gains (Jarvis and Mayo, 1986)...
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