The Effect of Guesthouse Interaction and Physical Environment Quality on Satisfaction and Loyalty: The Case of Foreign Tourists

The purpose of this research is to investigate the effects of the interaction of service contact points and the physical environment quality on satisfaction and loyalty. The study targeted overseas tourists using a guesthouse located in Seoul. The research showed that the interaction of service contact points could be divided into Customer to Customer Interaction (CCI) and Customer to Provider Interaction (CPI). CCI had a positive effect on satisfaction but did not directly affect loyalty whereas CPI had an effect on both satisfaction and loyalty positively. Furthermore, CPI had an influence on satisfaction and loyalty more strongly than CCI did. It was also proved that the Physical environment quality affected satisfaction and loyalty positively. Finally, satisfaction had a strong positively influential relationship on loyalty. Based on these results, theoretical and practical implications for the owners of a guesthouse are presented.