The Impact of Customer Loyalty Programs on Consumer Decision-Making: Evidence from Coastal Hotels in Albania

Abstract

This study examines the impact of customer loyalty programs on consumer decision-making in the hotel industry. More specifically, it explores the extent to which loyalty programs influence customers’ choice of hotel, intentions to make repeat bookings, and preferences for specific hotel services. The study uses a quantitative research design. Data were collected through a structured questionnaire based on a five-point Likert scale and were administered to hotel customers in the coastal cities of Durrës, Vlora, and Saranda, in Albania, during the period from June to September 2025.

The findings show that customer loyalty programs have a positive effect on consumer decision-making in the hotel sector. In particular, incentives offered through loyalty programs play an important role in the hotel selection, by promote repeat reservations, and increase customers’ preference for certain hotels. The results also indicate that loyalty programs help build stronger relationships with customers and improve customer retention. This study contributes to the existing literature by providing empirical evidence from the Albanian hospitality sector, with a focus on coastal hotels in Durrës, Vlora, and Saranda. In addition, it offers practical implications for hotel managers by highlighting the strategic importance of loyalty programs as a useful tool for attracting customers, building long-term relationships, and increasing retention.