Unveiling the Determinants of Tourist Loyalty in the Homestay Tourism Sector: An Empirical Analysis

Abstract

Homestay tourism has gained popularity as a growing travel trend, particularly in Malaysia, where tourists have the opportunity to immerse themselves in the local culture by staying with a host family. However, homestay operators are facing challenges due to a decline in repeat visitors. The purpose of this study is to examine the direct and indirect relationship between image, perceived value, safety, safety satisfaction, and tourist loyalty in the Malaysian homestay tourism industry. The research model incorporates three independent variables: image, perceived value, and satisfaction as a mediator, with loyalty as the dependent variable. Primary data was collected through a survey questionnaire, and 239 sets of clean data were analyzed using structural equation modeling. The convergent validity of the measurement model was evaluated for construct reliability and validity, followed by the assessment of discriminant validity using cross-loading and HTMT ratios. The study findings indicate that image does not directly influence loyalty but instead has a positive and significant impact on loyalty through satisfaction as a mediator. Perceived value, on the other hand, directly influences loyalty but does not significantly influence loyalty when satisfaction acts as a mediator. These results suggest that homestay operators should prioritize enhancing their image and delivering high-quality services at reasonable prices to increase satisfaction and foster loyalty. This study offers valuable insights for homestay operators and policymakers in the tourism industry, emphasizing the importance of understanding customer needs and preferences to create a memorable experience.