Impact of Technology-Based Service Innovation on Customer Satisfaction and Loyalty in Luxury Hotels

The rapid advancement of technology has transformed various industries, with the hospitality sector particularly benefiting from innovative service offerings. This study explores the impact of technology-based service innovations on customer satisfaction, customer delight, and long-term loyalty in Indonesia's luxury hotel industry. The aim is to identify how technological innovations influence customer experiences and the subsequent effects on customer behavior, specifically in terms of satisfaction and loyalty. A structured survey was employed to gather data from hotel customers, and the responses were analyzed using path analysis to examine the relationships between service innovations, satisfaction, delight, and loyalty. The results reveal that technology-based service innovations have a significant positive effect on both customer satisfaction and customer delight, with customer delight showing a stronger influence on loyal behavior. Additionally, the study found that both satisfaction and delight are key drivers of customer loyalty. These findings highlight the critical role of technology in enhancing customer experiences and fostering long-term loyalty in the hospitality sector. The study contributes to the growing body of literature on service innovation by providing empirical evidence of its impact on customer behavior in a high-end service context. The implications suggest that luxury hotels should strategically invest in technological innovations to improve service delivery, boost customer satisfaction, and ultimately enhance customer retention and loyalty.