Comparison of generational loyalty models and loyalty programs for Millennial, Generation X, and Baby Boomer hotel customers

Abstract

Purpose This research explores differences in consumer behavior across generational cohorts, particularly focusing on customer loyalty. With Millennials becoming the largest generational cohort, it is crucial to understand loyalty variations, given that many loyalty programs were established during the Baby Boomer era. This study investigates two vital aspects for hotel companies aiming to enhance guest loyalty: antecedents to loyalty and loyalty program design. Design/methodology/approach In part 1, a loyalty model was tested using corporate social responsibility (CSR), personalization, brand identity, and trust as antecedents for customer loyalty in full-service hotels. The study developed models for the overall sample and each generational cohort. Part 2 explored generational preferences regarding commonly offered hotel loyalty program benefits. Findings The study revealed no significant differences across generational cohorts in the loyalty model. Antecedents had similar effects on loyalty creation across all three cohorts. In part 2, the four most desired benefits for all generations were upgrades, customized service, late check-out, and empathetic employees. Practical implications This research supports Millennials' loyalty to hotels and highlights the importance of benefits that offer immediate advantages during a stay, such as upgrades, late check-out, empathetic employees, and personalization. These findings emphasize the need for loyalty program designs that provide faster rewards and personalization options. Originality/value This study pioneers the examination of hotel customer loyalty models across three generations and evaluates loyalty benefits across these cohorts. The results hold significance for researchers and practitioners in the field.