Impact of Sustainability Practices on Customer Loyalty in Hotels And Resorts: A Study With Special Reference to ooty

Abstract

This study investigates the influence of sustainability and service quality on customer loyalty within the resort industry of Ooty, Tamil Nadu. As an ecologically sensitive hill station facing significant tourism-driven resource pressure, Ooty provides a critical context for examining whether environmental responsibility enhances long-term guest retention. Adopting a descriptive research design, data were collected from 219 resort guests and analyzed using non-parametric tests, correlation. This size allows for adequate data collection to analyze customer perceptions, behaviours, and loyalty patterns effectively. This study employed snowball and convenience sampling, both of which are non-probability sampling techniques.

The findings reveal that while service quality is rated exceptionally high sustainability awareness and attitude serve as more significant predictors of guest outcomes. Correlation analysis confirms a strong positive relationship between customer satisfaction and loyalty. Specifically, sustainability awareness emerged as a stronger predictor than traditional service quality, although individual sustainable practices were not statistically significant on their own.

Despite high levels of satisfaction, guest loyalty remains moderate, with a notable resistance to paying price premiums for eco-friendly services. The study concludes that for resorts in eco-sensitive zones, long-term loyalty is driven by the synergistic integration of operational excellence and transparent sustainability communication.