The Effect of Service Quality and Package Prices on Customer Loyalty Through Umrah Pilgrim Satisfaction as an Intervening Variable at Anhatour & Travel

Abstract

This study employed a quantitative approach with a causal research design. The study population consisted of 1,894 pilgrims, from which a sample of 95 respondents was selected using purposive sampling. Data were collected through questionnaires using a Likert scale and analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method. The results show that service quality and package prices have a positive and significant effect on pilgrim satisfaction. Service quality, package prices, and pilgrim satisfaction were also found to have positive and significant effects on pilgrim loyalty. Furthermore, pilgrim satisfaction positively and significantly mediates the effects of both service quality and package prices on pilgrim loyalty. These findings confirm that pilgrim loyalty is built through the synergy of superior service quality, value-based price perceptions, and satisfaction resulting from the fulfillment of pilgrims' expectations. This study strengthens Expectation Confirmation Theory by demonstrating that the congruence between expectations and service experiences serves as a key mechanism in building pilgrim satisfaction and loyalty. Practically, the findings provide implications for Umrah travel service providers to develop service strategies oriented toward quality, competitive pricing, and pilgrim experience in order to foster loyalty and achieve sustainable competitive advantage.