Modelling e-Satisfaction and e-Loyalty of Online Travel Agencies (OTAs) in the Accommodation Sector

Jiet Ping, Kiew (2024) Modelling e-Satisfaction and e-Loyalty of Online Travel Agencies (OTAs) in the Accommodation Sector. DBA thesis, Universiti Malaysia Sarawak.

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Abstract

In the rapidly evolving online travel industry, digital technologies have transformed consumer behaviour, presenting both opportunities and challenges for online travel agencies (OTAs). One major challenge is the erosion of user loyalty, as users can easily switch between OTAs with a single click. The “billboard effect” where users connect directly with properties for future bookings, further intensifies competition. This study identifies factors influencing OTA users’ satisfaction and loyalty, addressing gaps in the literature by focusing on the online-to-offline-to-online (O2O2O) mode. Integrating Expectation Confirmation Theory (ECT) and the Theory of Consumption Values in the context of OTAs (OTA-TCV), this study explores the relationship between consumption values, perceived risk, e-WOM, expectation confirmation, e-satisfaction, and e-loyalty among 267 Malaysian OTA users. Quantitative data were analysed using SPSS for demographic information and descriptive statistics, and SmartPLS for measurement and structural models. The results reveal that monetary value, quality of benefits value, social status value, and electronic word of mouth (e-WOM) significantly influence expectation confirmation, which in turn significantly influences e-satisfaction and e-loyalty. Policymakers are encouraged to enforce regulations that promote transparency and fairness within the industry, while accommodation providers can optimize strategies by tailoring their offerings and services to better align with the preferences and expectations of the customers to enhance customer satisfaction and loyalty. Furthermore, OTAs can leverage insights from this study to prioritize transparency in pricing and harness the power of e-WOM by actively soliciting and showcasing authentic guest reviews and recommendations to build trust and confidence among users.

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