I. Problem Statement Hospitality and tourism have evolved into truly global industries and are dispersed throughout the world. Due to changes in lifestyle, the services offered by hospitality businesses are now considered necessities. As a result, over the past decade, there has been an exponential growth in hospitality businesses to meet the demands of the growing market. Today, organizations in the hospitality industry are facing stiff competition. Therefore, in the scheme of business, it has become evident that the ultimate goal of any organization in a hypercompetitive market is to maintain a loyal customer base. It is essential for any hospitality organization to look for opportunities to gain a competitive advantage by adopting various strategies. Therefore, hospitality businesses should develop proactive strategies to retain customers, instead of relying on pricing strategies to attract new customers. It can be considered that the customer-supplier relationship and the resulting customer loyalty are necessary prerequisites for any company to thrive in the competitive market. Management thinker Peter Drucker (1973:79) wrote: “Satisfying the customer is the mission and purpose of every company.” Therefore, for many years, business organizations have focused on customer satisfaction programs (Bhote, 1996). It is now clear that it is no longer customer satisfaction, but customer loyalty, that constitutes the dominant factor in the success of a business organization. The increasing sophistication of customer demands also poses a challenge to developing customer loyalty in the service sector (Kirwin, 1992). Modern consumers demand high-quality products and services and show low tolerance for mediocre-quality products and services...... middle of paper ......al Journal of Contemporary Hospitality Management, 19,296–308.MARKOVIĆ, S., & Parson, S. (2010). Measuring customer satisfaction and loyalty in the hotel sector: an empirical analysis. Tourism and Hospitality Management, 8 (2), 45-65..Mak, B. and Sim, J. (2005). Service quality model: Customer loyalty for hotels. Journal of Quality Assurance in Hospitality & Tourism, 8 (2), p45-65.Myongjee, Y., & Bai, B. (2003). Value creation: The impact of strategic alliance on customer loyalty. Journal of Quality Assurance in Hospitality & Tourism, 8 (2), 45-65. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric Theory (3rd ed.). New York, NY: McGraw-Hill, Inc. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: a multi-item scale to measure consumer perceptions of service quality. Retail Journal, 64(1), pp. 12-40.