Citation:Jayasinghe, Amith., Wickramarachch, Hirantha., Gamage, Tirushi., Jayasinghe, J.K.P.S.K. & Dayapathirana, Nirmani. (2025). Impact of Online Innovation on Repurchase Intention on Hotels: Customer Experience as a Mediator. Proceedings of the 14th International Conference on Management and Economics (ICME), Faculty of Management and Finance, University of Ruhuna, Matara, Sri Lanka, 505-518.
Date:2025-07-31
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.
