CAN RELATIONSHIP BENEFITS MAKE CUSTOMERS COMMITTED AND LOYAL?

Tough competition has pushed four-star hotels in Surabaya to manage their competitive strategies. One of them is by providing relationship benefits to maintain customer commitment and loyalty. Customers experiencing relational benefits may become committed. It can lead them to become loyal to the hotel. This study is to reveal the impact of relationship benefits (confidence, social and special treatment benefits) on customer commitment and the impact of customer commitment on customer loyalty in four-star hotels in Surabaya. Partial Least Square (PLS) is used to analyze data. The results show that relationship benefits have positive and significant impacts on customer commitment; and customer commitment also has positive and significant impact on customer loyalty.