Sri Rahayu
(Faculty of Economics, University of Muhammadiyah Palembang, Indonesia)

 

Abstract: The economic potential of tourism industry should be given attention in order to become a source of foreign exchange incomes and local revenues for the city government of Palembang. Tourists visiting this city increase and other city competitors are also greater in number. The city’s tourist resorts must continuously improve their competitive edge and create tourists’ loyalty in an effort to maintain and develop their business. This research aimed to identify the effect of promotion, service quality, brand image on the Satisfaction of tourists visiting Palembang, and on their loyalty to the visited resorts. It used 300 respondents who visited these resorts: Kuto Besak, Kambang Iwak, Kemaro Island, Punti Kayu Resort, Jaka Baring Lake OPI, OPI Water Fun, and Siguntang Hill. The sample was taken by a purposive sampling technique. This research used Structure Equation Modelling (SEM) analysis and processed the data using Amos version 16.01. The results showed there was no significant effect for the variables of service quality and brand image the tourists’ Satisfaction. The promotion did not have a significant effect on the tourists’ Satisfaction. In addition, there was no significant effect for the variables of promotion and brand image on their loyalty. Finally, there was no significant relationship between the tourists’ Satisfaction on their loyalty.

 

Key words: promotion; quality service; brand image; satisfaction; loyalty; tourists

JEL code: M310