The impact of customer perceptions of sustainability practices on brand loyalty, with reference to the hotel industry in Sri Lanka

Sustainability practices are a critical aspect of modern businesses and are evident in their success. In the hotel industry, sustainability has evolved from a niche trend to a crucial business strategy, driven by shifting consumer preferences, heightened environmental awareness, and the growing global demand for responsible tourism. Travellers increasingly prioritize eco-conscious options, and hotels are adopting and communicating effective and authentic sustainability practices that can significantly impact their brand loyalty among customers. The World Tourism Organization, in its 2023 sustainability report, stated that 73% of global tourists prefer to select hotels that adopt sustainable practices. This shift in customer preference has led to a significant transformation in the hotel industry. Sri Lankan hotel businesses are also aligned with the global sustainability trend and are increasingly embracing sustainability initiatives, with the intention of establishing a more successful and impactful business. This contemporary research was conducted as a cross-sectional quantitative study to gather the perceptions of tourists who visit and stay in Sri Lankan hotels, regarding sustainability practices and their impact on sustainability. The data were collected through an online structured questionnaire with validated Likert scale items distributed to tourists staying in hotels in Colombo. The sample of the study comprises 384 tourists who visited Sri Lanka in 2024. The data were analyzed using multiple regression analysis. The research results revealed that perceptions of environmental, economic, and social sustainability have a significant impact on brand loyalty. The limitations encountered by the researcher were the quantitative nature of the research, which makes it difficult to capture the true perceptions of the customers, and the limited access to the respondents due to the privacy concerns of the tourists; the researcher suggests conducting a qualitative study by expanding the geographical location of the study in the future.