The Role of Customer Brand Engagement on Brand Loyalty in the Usage of Virtual Hotel Operator

Virtual hotel operators have a growing trend in Indonesia during recent years. Two of its main causes is the rise of “budget travelling” and the incentive by the central government to promote tourism industry. Unfortunately, the study of virtual hotel operator itself is still uncommon. The purpose of this study is to explain relationship between the customer brand engagement with attitudinal loyalty and behavioral loyalty from customers in the usage of virtual hotel operators in Indonesia. This research was tested empirically by using PLS-SEM with a sample of 133 respondents, who used hotels operated by virtual hotel operators in Indonesia. The results of this study indicate that sensory experience positively influences customer brand engagement with the virtual hotel operator brand. Furthermore, affective experience positively affects affective and behavioral engagements, whereas intellectual experience positively influences cognitive and affective engagement. Likewise, customer brand engagement can be effective in increasing loyalty, at least on attitudinal level. In addition, attitudinal loyalty positively influences behavioral loyalty on virtual hotel operator. The findings of this study can provide academicians and managers a guide to improve customer engagement and loyalty toward a virtual hotel operator’s brand.