Application of customer relationship marketing strategies by classified hotels in Kenya

Abstract

The purpose of this study was to establish the extent and applicability of customer relationship marketing (RM) strategies in the hotel industry environment in Kenya. The objectives of the study were to establish the extent to which hotels practice RM, whether there exists significant differences among hotels and the impact of RM on hotel performance. A convenience sample of 50 hotels was studied from a population of 123 classified hotels. Proportionate stratified sampling was used to select sample elements from each star category. Primary data was collected using a structured questionnaire. Drop and pick method was used to collect data from hotels in Nairobi. The researcher administered the questionnaire personally for the respondents outside Nairobi. Of the 50 respondents, 42 (84 percent) responded by completing the questionnaires. Descriptive statistics was used to analyze the data. Frequency distribution tables, mean scores, mode and standard deviation was used to determine the extent to which hotels practice RM. Mann-Whitney U-test and the Spear-man's rank correlation test were used to test whether the practice of RM differs among hotel types and to determine the relationship between the practice of RM and hotel performance in terms of bed occupancy. From the findings, it is clear that hotels apply RM strategies to significantly varying extent. Additionally, there was no relationship between the practice of RM and hotel performance in terms of bed occupancy. The researcher recommended that hotel marketers move beyond satisfaction strategies toward loyalty programmes, optimize the use of information technology and improve human resource practices. The limitations of the study were related to the scope of the research. The study canvassed the views of managers in only 42 of the classified hotels out of 123 hotels. It is acknowledged that this approach does not take full account of the perspectives of other major players in service encounters. Future research should seek to develop more knowledge on relationship quality, customer retention and shareholder value in the hotel industry.