Customer Loyalty in Government-Owned Hospitality Services: The Roles of Marketing Mix, Service Quality, Image, and Satisfaction
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Government-owned accommodation facilities face the dual challenge of providing quality public services and optimizing regional assets to generate local revenue. Although customer satisfaction and loyalty have been widely examined in commercial hospitality, less attention has been given to how these relationships operate in government-owned accommodation. This study examines the relationships of marketing mix, service quality, and image with customer satisfaction and loyalty, while assessing the mediating role of satisfaction at Isen Mulang Guesthouse, a government-owned accommodation facility in Jakarta Indonesia. A quantitative cross-sectional survey was conducted among 216 users selected through purposive sampling. Data were collected using a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that marketing mix, service quality, and image are positively associated with customer satisfaction. However, only service quality has a significant direct relationship with loyalty, whereas marketing mix and image do not. Customer satisfaction has a strong positive relationship with loyalty and significantly mediates the relationships between marketing mix, service quality, image, and loyalty. These findings indicate that tactical marketing efforts and institutional image contribute to loyalty primarily when they generate satisfying service experiences, while service quality has both direct and indirect relevance to loyalty. The study highlights the importance of prioritizing service quality and satisfaction in managing government-owned hospitality assets and strengthening their service and revenue sustainability.
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