The Effect of Price and Service Quality on Customer Loyalty: The Mediating Role of Traveloka Customer Satisfaction

Muna Inayah (Telkom University)
Agus Maolana Hidayat (Telkom University)
Arry Widodo (Telkom University)
Nurafni Rubiyanti (Telkom University)

Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 5 (2025): May 2025

This conceptual paper explores the relationship between price, service quality, customer satisfaction, and customer loyalty in the context of Traveloka, a leading online travel agency. Using existing literature, this study proposes a theoretical framework that positions customer satisfaction as a mediator between price and service quality on customer loyalty. Employing a quantitative approach, this research focuses on Traveloka's customer base to analyze how pricing strategies and service quality impact customer retention. The findings indicate that both price and service quality have a positive effect on customer loyalty. Furthermore, customer satisfaction plays a crucial mediating role in strengthening this relationship. The study suggests that improving service quality and offering competitive pricing are essential strategies for increasing customer loyalty in online travel services. These insights contribute to the understanding of customer retention strategies in the highly competitive online travel industry.