The identified growing guest loyalty problem in the hospitality sector has
set an urgency for a more comprehensive research to be conducted. A study with a
focus on redefining the concept of loyalty landscape to find out which approach
should be done by hotel businesses that will better-fit for the current market
characteristics might just be the difference in between surviving or losing in today’s
hospitality industry. The aim of this study is to investigate the positive and
significant effects of service quality on perceived value, service quality on customer
satisfaction, perceived value on customer satisfaction and customer satisfaction on
customer loyalty in the guests of five-star hotel services. A quantitative approach
focusing on cause and effect relationship among variables was being done. The
study involved 100 five-star hotel regular guests as samples. The analysis technique
used in this study is Partial Least Square (PLS) Structural Equation Modeling
(SEM), with SmartPLS 3 program as analysis software. The results show that
service quality has a positive and significant effect on perceived value and customer
satisfaction, perceived value does not have a significant effect on customer
satisfaction and customer satisfaction has a positive and significant effect on
customer loyalty. With these results in mind, the study of “The Effects of Service
Quality, Perceived Value and Customer Satisfaction on Customer Loyalty: A Study
of Five-Star Hotel Services in Jakarta” should be beneficial for future researchers
to design thei r investigation on the third hypothesis which was not supported by this
study. Doing so might result in a clearer explanation on loyalty concept, particularly
in luxury market segment such as the sample of t his study. Moreover, the finding
could help practitioners in hotel sector to design for a more strategic plan to enhance
their customer loyalty which seen as the differentiator in the survival of hospitality
business nowadays.


Keywords: Service Quality, Perceived Value, Customer Satisfaction, Customer
Loyalty, SEM, PLS