Making it right the third time? pursuing satisfaction and loyalty in a double service recovery

Abstract The study focuses on the complex double service recovery in the context of package tourism. The purpose is to analyze how the first and the second service recoveries affect recovery satisfaction and how satisfaction, in turn, influences customer loyalty. The data consist of an online survey (n?=?220) and path analysis is used to test the hypotheses. According to the results, all justice dimensions (distributive, interactional, and procedural) of the second service recovery had a positive effect on recovery satisfaction. Also, the first recovery had a positive, yet weak, effect on recovery satisfaction. As hypothesized, recovery satisfaction positively affected customer loyalty, that is, positive word-of-mouth behavior and repurchase intention. Even though the distributive justice had a strongest effect on satisfaction, the tour operators should focus especially on interactional justice, which besides satisfaction, had a direct effect also on word-of-mouth behavior and repurchase intention. The study contributes to the academic literature by providing a holistic view on the double service recovery and offers valuable information to tour operators striving for efficient recovery processes.