The Impact of Affective Commitment and Hotel Type in Influencing Guests' Share of Wallet

Abstract

ABSTRACT The recent surge in frequent guest programs has further intensified the battle for customers in the hotel industry. Thus, it is important for hospitality operators to understand how to get a greater share of the guest's lodging dollars. To that end, this study examined the impact of affective and cognitive commitment in driving behavioral loyalty or share of wallet. Our findings suggest that affective commitment is an important determinant of share of wallet, while cognitive commitment failed to predict consumer loyalty towards their preferred hotel brand. Moreover, hotel type (e.g., luxury vs. budget) had an impact on share of wallet. Hotel brands in the upscale and moderate service category seemed to benefit from a higher percentage of the guest's lodging dollars than budget or luxury brands.