Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Unveiling the Determinants of Tourist Loyalty in the Homestay Tourism Sector: An Empirical Analysis

Zahir Osman, Fairul Ifnee Othman, Christina Mary Richard, Norfardilawati Musa

http://dx.doi.org/10.6007/IJAREMS/v12-i2/17791

Open access

Homestay tourism has gained popularity as a growing travel trend, particularly in Malaysia, where tourists have the opportunity to immerse themselves in the local culture by staying with a host family. However, homestay operators are facing challenges due to a decline in repeat visitors. The purpose of this study is to examine the direct and indirect relationship between image, perceived value, safety, safety satisfaction, and tourist loyalty in the Malaysian homestay tourism industry. The research model incorporates three independent variables: image, perceived value, and satisfaction as a mediator, with loyalty as the dependent variable. Primary data was collected through a survey questionnaire, and 239 sets of clean data were analyzed using structural equation modeling. The convergent validity of the measurement model was evaluated for construct reliability and validity, followed by the assessment of discriminant validity using cross-loading and HTMT ratios. The study findings indicate that image does not directly influence loyalty but instead has a positive and significant impact on loyalty through satisfaction as a mediator. Perceived value, on the other hand, directly influences loyalty but does not significantly influence loyalty when satisfaction acts as a mediator. These results suggest that homestay operators should prioritize enhancing their image and delivering high-quality services at reasonable prices to increase satisfaction and foster loyalty. This study offers valuable insights for homestay operators and policymakers in the tourism industry, emphasizing the importance of understanding customer needs and preferences to create a memorable experience.

Aidi, A. H., Ramli, N., & Salam, Z. (2018). Mediating effect of satisfaction on destination image and destination loyalty. Journal of Tourism, Hospitality, and Culinary Arts, 10(2), 52-67.
Beerli, A., & Martin, J. D. (2004). Factors influencing destination image. Annals of Tourism Research, 31(3), 657-681.
Cai, L. A. (2002). Cooperative branding for rural destinations. Annals of Tourism Research, 29(3), 720-742.
Carrascosa-Lopez, C., Carvache-Franco, M., & Carvache-Franco, W. (2021). Perceived Value and Its Predictive Relationship with Satisfaction and Loyalty in Ecotourism: A Study in the Posets-Maladeta Natural Park in Spain. Sustainability, 13(14), 7860.
Carvache-Franco, M., Alvarez-Risco, A., Carvache-Franco, O., Carvache-Franco, W., Estrada-Merino, A., & Villalobos-Alvarez, D. (2022). Perceived value and its influence on satisfaction and loyalty in a coastal city: a study from Lima, Peru. Journal of Policy Research in Tourism, Leisure and Events, 14(2), 115-130.
Chin, C. H., Wong, W. P. M., Ngian, E. T., & Langet, C. (2022). DOES ENVIRONMENTAL STIMULUS MATTERS TO TOURISTS'SATISFACTION AND REVISIT INTENTION: A STUDY ON RURAL TOURISM DESTINATIONS IN SARAWAK, MALAYSIA. Geo Journal of Tourism and Geosites, 42, 683-692.
Cohen, J. (1992). A power primer. Psychological Bulletin, 112, 155–159. doi:10.1037/0033-
2909.112.1.155
Han, H., Meng, B., & Xi, Y. (2020). The impact of tourist satisfaction on loyalty: A study of rural tourism. Journal of Travel Research, 58(3), 526-540.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). Thousand
Henseler, J., Ringle, C. M., and Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling, Journal of the Academy of Marketing Science, 43(1): 115-135.
Jalasi, A., & Sylvia Nabila, A. A. (2022). Religiosity and attitude influence on muslims’ intention to visit homestays in Sabah, Malaysia. Voice of Academia (VOA), 18(1), 14-28.
Kim, S., Kim, D., & Lee, C. K. (2012). An empirical examination of the relationship between festival quality, satisfaction, and loyalty. Journal of Travel Research, 51(1), 3-17.
Kiswantoro, A., Hendratono, T., Susanto, D. R., Rohman, N., & Maulana, R. (2023). A Bibliometric Analysis on Satisfaction and Loyalty in Homestay. Jurnal Manajemen Perhotelan dan Pariwisata, 6(1), 78-90.
Li, X., Chen, J., & Zhang, Y. (2021). Perceived safety, destination image, and touristsatisfaction in the homestay sector. Journal of Hospitality and Tourism Research, 45(2), 123-137.
Lu, M., & Yi, B. (2022). Homestay customers' perceived value mediates the influence of customer participation and host–customer interaction on customer satisfaction. Social Behavior and Personality: an international journal, 50(4), 1-11.
Nasir, M. N. M., Khan, N. F. A. H., Rasdi, A. L. M., Rahim, M. A., & Kamaruddin, M. (2022). The Parallel Mediators of Tourist Satisfaction and Place Attachment on Perceived Value and Destination Loyalty Relationship. GeoJournal of Tourism and Geosites.
Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469.
Oliver, R. L. (1999). Whence consumer loyalty? [Special issue], Journal of Marketing, 63, 33–44
Osman, Z., & Sentosa, I. (2013). A Study of Mediating Effect of Trust on Customer Satisfaction and Customer Loyalty Relationship in Malaysian Rural Tourism. European Journal of Tourism Research, 6(2), 192-206
Osman, Z., and Sentosa, I. (2013) Mediating Effect of Customer Satisfaction on Service Quality and Customer Loyalty Relationship in Malaysian Rural Tourism. International Journal of Economics Business and Management Studies, 2(1), 25-37.
Osman, Z. (2014) Determinants of Customer Loyalty in Malaysian Rural Tourism. International Journal of Physical & Social Science. 4(1), 161-190
Osman, Z. (2013) An Empirical Study of Direct Relationship of Service Quality, Customer Satisfaction and Customer Trust on Customer Loyalty in Malaysian Rural Tourism. Journal of Tourism Hospitality and Culinary Arts, 5(1), 125-150
Osman, Z., and Sentosa, I. (2013) Service Quality and Customer Loyalty in Malaysian Rural Tourism: A Mediating Effect of Trust. International Journal of Marketing Practices, 1(1), 31-42.
Osman, Z., & Sentosa, I. (2013). Influence of Customer Satisfaction on Service Quality and Trust Relationship in Malaysian Rural Tourism. Business and Management Quarterly Review, 4(2), 12-25
Pike, S., & Ryan, C. (2004). Destination positioning analysis through a comparison of cognitive, affective, and conative perceptions. Journal of Travel Research, 42(4), 333-342.
Podsakoff, P. M., & Organ, D. W. (1986b). Self-Reports in Organizational Research: Problems and Prospects. Journal of Management, 12(4), 531–544. https://doi.org/10.1177/014920638601200408
Ramli, N., Mustafa, M. Z., & Abidin, Z. N. A. (2017). Influence of destination image, tourist satisfaction, and destination loyalty on destination competitiveness: A case of Melaka, Malaysia. Journal of Tourism, Hospitality, and Culinary Arts, 9(2), 147-161.
Reichheld, F. F., & Schefter, P. (2000). E-loyalty: Your secret weapon on the Web. Harvard Business Review, 78(4), 105-113.
Voon, B. H., Jee, T. W., Joseph, C., Hamzah, M. I., Jussem, P. M., & Teo, A. K. (2022). Homestay Service Experience for Tourist Satisfaction and Sustainability Amidst Covid-19 Challenges. International Journal of Business and Society, 23(2), 1127-1146.
Xing, B., Li, S., & Xie, D. (2022). The effect of fine service on customer loyalty in rural homestays: The mediating role of customer emotion. Frontiers in Psychology, 13, 964522.
Zhang, X., & Tang, J. (2021). A study of emotional solidarity in the homestay industry between
hosts and tourists in the post-pandemic era. Sustainability, 13(13), 7458.
Zhang, L., Yang, S., Wang, D., & Ma, E. (2022). Perceived value of, and experience with, a
World Heritage Site in China—the case of Kaiping Diaolou and villages in China. Journal of Heritage Tourism, 17(1), 91-106.

In-Text Citation: (Osman et al., 2023)
To Cite this Article: Osman, Z., Othman, F. I., Richard, C. M., & Musa, N. (2023). Unveiling the Determinants of Tourist Loyalty in the Homestay Tourism Sector: An Empirical Analysis. International Journal of Academic Research in Economics and Management and Sciences, 12(2), 599 – 613.