Researchers have paid a lot of attention to generation Y (millennial) and formulating customer loyalty model for generation Y brings a lot of benefits to industry. The main purpose of this research is retest and develop customer loyalty model found by Anil Bilgihan for gen Y in Indonesia and Taiwan. The same construct and questionnaire were used to find out if it works for developing customer loyalty model in online hotel booking website.
Totally 200 respondents Indonesia and another 200 respondents in Taiwan had been participated successfully on this survey, explanatory and confirmatory factor analysis were then used before finally the resulted revealed that trust had consistently been the most significant factor to e-loyalty in Taiwan, while for Indonesia brand equity was the most significant variable toward it. When positive online experience was important to form loyalty of Indonesian gen Y, it was not really effective in Taiwan. In order to create positive online experience, website should have features that pleasing and motivating its users to come back, usually called as hedonic features, the example of hedonic features are like beautiful design, layout, color, virtual tour and music. Reversely in this study, utilitarian features did not make significant impact to positive online experience for millennial in Taiwan and Indonesia.
