Reward programs are known as one of the most common tools for creating customer loyalty in the hotel industry, but their effectiveness is strongly influenced by various factors, including the type of reward timing (immediate versus delayed), relationship quality (customer satisfaction), and perceived loyalty value. This study aimed to investigate the role of reward programs in creating customer loyalty in the hotel industry of Kerman city.
Method: This study is applied in terms of purpose and descriptive in nature of correlation. The statistical population included all hotel customers in Kerman city (479 people based on the number of rooms). The sample size was determined by using the Cochran formula to 214 people and the sampling was done by a random stratified method proportional to the size of the class. The data collection tool was the standard questionnaire of Hsin-Hui Sunny-Hu et al. (2010), whose validity was confirmed by the content method and its reliability by using the Cronbach's alpha coefficient (0.875 for the entire questionnaire). The data were analyzed using SPSS software and Pearson's correlation coefficient. The results showed that there is a positive and significant relationship between delayed rewards and customer satisfaction (0.616) and perceived loyalty value (0.261) (p<0.001). In contrast, an inverse and significant relationship was observed between immediate rewards and customer satisfaction (-0.554) and perceived loyalty value (-0.275). Customer satisfaction also showed the strongest correlation with customer loyalty (0.559), and the chain "perceived loyalty value → loyalty to reward programs → customer loyalty" was confirmed with coefficients of 0.382 and 0.261. Reward programs in the Kerman hotel industry lead to loyalty only if they are based on delayed rewards, transparent, fair, and accompanied by customer satisfaction. Immediate rewards without creating relationship quality are not only ineffective, but also have the opposite effect. Kerman hotel managers are advised to design long-term loyalty programs with personalized experiential rewards (based on Kerman's cultural and natural capacities) instead of momentary discounts.