How Fostering ‘Room Ownership’ Can Boost Guest Loyalty

A study recently published in the Cornell Hospitality Quarterly suggests a novel strategic lever: psychological ownership. In this research brief, we present the theoretical grounding of psychological ownership, summarize the empirical findings, and translate the insights into actionable strategies.

One goal often espoused by hotel operators is gaining guests’ loyalty by delighting them. Strange as it sounds, however, delighting guests is table stakes in today’s saturated hospitality industry. As brands compete on ever finer margins of service and comfort, loyalty can no longer rest solely on satisfaction. Even as most hotel firms seek and achieve flawless execution, they cannot gain substantial differentiation. So what else moves the needle?

A study recently published in the Cornell Hospitality Quarterly suggests a novel strategic lever: psychological ownership. In this research brief, we present the theoretical grounding of psychological ownership, summarize the empirical findings, and translate the insights into actionable strategies.

The idea is as follows: when guests feel that a hotel room is “theirs,” they are more likely to return, recommend, and engage. We explored this idea using multiple test methods, including an analysis of TripAdvisor hotel reviews, a field study at a Midwestern U.S. hotel, and controlled online experiments using hypothetical scenarios. Across these studies, we found that psychological ownership—not just satisfaction—plays a powerful role in fostering guest loyalty. Moreover, we found that hotels can cultivate this sense of ownership through simple, low-cost guest experience design choices, rather than the expensive upgrades or service overhauls often intended to enhance satisfaction.

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