We have used a relatively novel data source – online guest
ratings of hotels – to understand the relationships between
resource capabilities and customer loyalty. Using structural
equation model, we found support for three hypotheses. We
have found that resource capabilities of hotels, measured in
terms of ratings in terms of different performance variables,
have a significant positive influence on customer loyalty
(measured using guests’ intention to stay again and to
recommend to friends). We have also found that guests’
intention to stay again positively translates to their intention
to recommend the hotel to friends. Finally, we have found
that the positive relationship between resource capabilities
and customer loyalty is not affected by the star ratings of
hotels. These findings are consistent with similar results in the
literature.