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This research evaluated the role of reward membership and commitment on switching costs, defined as the price at which consumers would switch to a nonpreferred hotel brand. Online survey respondents were classified by reward tier and two types of commitment: value (reward program benefits) and affective (emotional attachment to brand). The results showed that all reward program members exhibit value commitment but upper tier members are more likely to develop an emotional bond. Participants rated likelihood to switch in response to 20 pricing scenarios that varied base price for the preferred brand and discount for a nonpreferred brand. Value commitment was associated with greater price sensitivity, whereas affective commitment produced less differentiation between prices and discounts. Findings indicate that value commitment and lower tier membership are associated with a utilitarian perspective, whereas high-tier members or those with high affective commitment value intangible benefits and are less susceptible to discounting by competitors.

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Electronic word-of-mouth has become a driving force for hospitality businesses. Achieving customer loyalty is a primary goal of hospitality businesses, and reward programs are one mechanism for doing so. Customer-based communication channels have the potential to undermine or support these efforts. This study investigated attitudes toward hotel loyalty programs among members of flyertalk.com, a forum for frequent travelers. A content analysis of 1,519 comments from members of five major hotel programs was conducted. The core categories that emerged were program experience, value, process, obtaining status, company-created communication, customer-created communication, and defection motivators and inhibitors. A paradigm model indicated that communication is the most important loyalty antecedent, and that all antecedents influence loyalty via the program experience. The emergent relationships suggest that managers should actively monitor online channels and take action to correct issues that cause member frustration and dissatisfaction. Otherwise, these problems can escalate through the rapid spread of electronic word-of-mouth.

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