Personalized Loyalty Programs and Guest Retention in Five-Star Hotels in Kigali, Rwanda
DOI:
https://doi.org/10.54536/ajth.v4i2.8061Keywords:
Five-Star Hotels, Guest Retention, Loyalty Program Personalization, RwandaAbstract
The hospitality industry increasingly relies on loyalty programs to enhance guest retention and maintain competitive advantage within the luxury hotel sector. Among loyalty program dimensions, personalization has emerged as a critical strategy for influencing customer loyalty through tailored rewards, customized communication, and preference-based service delivery. However, empirical evidence on the effectiveness of personalization in emerging African hospitality markets remains limited. This study examined the influence of loyalty program personalization on guest retention among five-star hotels in Kigali, Rwanda. A convergent mixed-methods design was employed. Quantitative data were collected from 399 active loyalty program members using structured questionnaires, while qualitative data were obtained through semi-structured interviews with 15 purposively selected customer relationship management (CRM) managers and marketing officers from participating hotels. Quantitative data were analyzed using descriptive statistics, Pearson correlation, and simple linear regression, while qualitative data were analyzed through thematic analysis. Findings revealed that personalization was highly rated by respondents (M = 4.25, SD = 0.84). Correlation analysis indicated a strong positive relationship between personalization and guest retention (r = 0.721, p < .001). Regression analysis further showed that personalization significantly predicts guest retention (β = 0.327, p < .001), explaining 52.0% of the variance in retention behavior (R² = 0.520). Qualitative findings corroborated these results by highlighting personalized guest recognition and tailored communication as important drivers of repeat visitation. The study concludes that loyalty program personalization significantly enhances guest retention in Kigali’s luxury hospitality sector. Hotels are encouraged to strengthen CRM capabilities, invest in data-driven personalization strategies, and enhance staff competencies to foster long-term customer loyalty.
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