Impact of Online Innovation on Repurchase Intention on Hotels: Customer Experience as a Mediator.

Abstract

This study investigates the influence of online innovation on repurchase intentions in Sri Lanka's three-star and higher-rated hotels, with customer experience as a mediating factor, focusing on how digital tools like websites and social media shape guest behaviour. The study aims to identify the impact of online innovation on repurchase intention; to determine the impact of online innovation on customer experience; to identify the impact of customer experience on repurchase intention; and to identify whether customer experience mediates the relationship between online innovation and repurchase intention. A structured questionnaire was initially administered to 167 hotel guests who booked online within the past five years as a pilot test to refine the research design and ensure data reliability. Partial Least Squares Structural Equation Modelling was employed to analyze the relationships between online innovation, customer experience, and repurchase intention. The findings reveal that online innovation positively impacts repurchase intentions, with customer experience partially mediating this relationship. The study fills a knowledge gap with a solid sample and outlines the role of digital literacy in new markets. It provides valuable implications with regard to hotels to consider investing in personalization driven by AI and training of staff. It proposes that future research should also incorporate managerial and lower-tier hotel segments to expand on the knowledge.