Influence of Operational and Marketing Strategies on Competitiveness of Star Rated Hotels in Western Kenya

Abstract

Achieving and sustaining competitive advantage within the hospitality industry is a challenge and has impacted greatly on the performance of most hotels. Competitive advantage in the hospitality industry has been disenchanted by lack of clear combination strategies in most hotels in Kenya. The aim of this study was to examine the influence of operational and marketing strategies on competitiveness of star rated hotels in Western Kenya. Resource-Based view and Marketing mix model theories guided the study. The study was conducted in Western Kenya region. The study adopted a correlational research design. The target population was employees from 15 hotels in Western Kenya that have earned a star rating from the Tourism Regulatory Authority. The study was census study and therefore all the 75 respondents including General Managers, Human Resource Managers, ICT Managers, Marketing Managers and Operation managers were sampled. Questionnaires with close-ended questions were used to collect primary data. Content validity was determined through consultations and discussions with the experts, academicians and the supervisor. A Cronbach Alpha method was used to determine reliability and data was analyzed using descriptive and inferential statistics with the help of Statistical Package for Social Sciences software. Multiple linear regression analysis revealed a statistically significant positive association between operational strategy and the competitiveness of star rated hotels in Western Kenya (β = 0.134, p < 0.05). Further, results revealed a positive relationship between marketing strategy and the competitiveness of star rated hotels in Western Kenya (β = 0.291 (0.056), p < 0.05). Also, Peason Correlation results showed that operational strategy ((r=.0.614, ρ<0.01) and marketing strategy (r=.0.689, ρ<0.01) were positively and significantly related to competitiveness of star rated hotels in Western Kenya. The findings infers that an increase in the quality or effectiveness of the operational and marketing strategies is associated with an increase in the competitiveness of these hotels. The study recommends that the management of star-rated hotels in Western Kenya should develop a practical operational plan that effectively integrates key elements of time, cost and quality. Furthermore, it is imperative for customer service officers to consistently implement marketing strategy approaches such as establishing strong connections with customers, building brand trust, practicing reciprocity, and promptly resolving conflicts.