I. Problem StatementHospitality and tourism have become truly global industries dispersed throughout the world. Due to changing lifestyles, the services offered by hospitality companies are now considered necessities. Therefore, over the past decade, hospitality businesses have grown exponentially to meet the demands of a growing market. Today, hospitality organizations face intense competition. Thus, in the business scheme, it has become evident that the ultimate goal of any organization in a hyper-competitive 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. Thus, hotel companies must develop proactive strategies to build customer loyalty, rather than relying on pricing strategies to attract new customers. The customer-supplier relationship, and the resulting customer loyalty, can be seen as necessary prerequisites for any business to thrive in a competitive market. Management thinker Peter Drucker (1973: 79) wrote: “satisfying the customer is the mission and goal of every business.” Thus, for many years, business organizations have focused on customer satisfaction programs (Bhote, 1996). It is now becoming clear that it is no longer customer satisfaction, but customer loyalty, which constitutes the dominant factor in the success of a sales organization. The increasing sophistication of customer demands also poses a challenge to the development of customer loyalty in the service sector (Kirwin, 1992). Modern consumers demand high-quality products and services and demonstrate low tolerance for low-quality products and services...... middle of article ......al Journal of Contemporary Hospitality Management, 19,296–308.MARKOVIĆ, S., and Parson, S. (2010). Measuring customer satisfaction and loyalty in the hotel environment: an empirical analysis. Tourism and Hospitality Management, 8 (2), 45-65.. Mak, B. and Sim, J. (2005). Service quality model: Loyalty of hotel customers. Journal of Quality Assurance in Hospitality & Tourism, 8 (2), p45-65. Myongjee, Y. and Bai, B. (2003). Value creation: the impact of the strategic alliance on customer loyalty. Journal of Quality Assurance in Hospitality & Tourism, 8 (2), 45-65. Nunnally, JC and Bernstein, IH (1994). Psychometric theory (3rd ed.). New York, NY: McGraw-Hill, Inc. Parasuraman, A., Zeithaml, VA, & Berry, LL (1988). SERVQUAL: a multiple-item scale to measure consumer perceptions of service quality. Journal of Retailing, 64(1), p... 12-40.