Hotels are required to improve their customer interactions and services as a
result of the fierce competition in the hotel industry. Social media marketing may
significantly improve brand recognition, consumer satisfaction, and customer
loyalty. The objective of this study is to analyses the impact of several factors on
customer retention at the Haile Resort Hotel in Ethiopia. The study employed a
quantitative research methodology, with a specific focus on hotel guests as the
target demographic. The data was acquired through online questionnaires sent
across various social media platforms. The study established and quantified six
variables: service quality, social media marketing, customer satisfaction, customer
retention, brand image, and brand awareness. The study analysed the variables by
utilizing adapted measures from other studies and assessed them using a Likert
scale. The data analysis was performed using the Structural Equation Model (SEM)
with the Partial Least Squares (PLS) technique, utilizing the Smart PLS 4.0.9.3
software. The study demonstrates that multiple factors exert a substantial impact on
customer retention at Haile Resort Hotel in the Republic of Ethiopia. Customer
retention is positively influenced by the quality of service and the implementation
of social media marketing. Brand image does not act as a mediator between service
quality and client retention. However, it does act as a mediator between social
media marketing and customer retention. client satisfaction acts as a mediator in the
beneficial links between service quality, social media marketing, and client
retention. The hotel's ability to effectively manage its perception and reputation is
crucial, as it directly affects client retention and loyalty. Nevertheless, the level of
recognition a brand has does not have a direct impact on the ability to maintain
customers, indicating that simply being visible is not enough to foster consumer loyalty.