Equity-based customer loyalty mode for the upscale hotels—Alternative models for leisure and business travels

• Upscale hotel's customer loyalty
• Brand equity most effects on leisure traveler
• Relationship equity most effects on business traveler

ABSTRACTThe upscale hotel market is a fiercely competitive one, and the key to success is whether or not a hotel has placed a focus on equity-based customer loyalty. This study aims to evaluate equity-based customer loyalty models for two alternative travel styles, leisure and business travels. To this end, 326 surveys were collected from leisure travelers and 282 from business travelers, with model testing conducted through linear structural equation modelling. The results of this show that leisure travelers are more focused on brand equity while business travelers are focused on relationship equity, and that strengthening these will strengthen customer loyalty. Finally, marketing managerial implications and suggestions for future researches are also discussed.