The strategic responses of tourist hotels to the changes in the environment: a case of tourist hotels in Nairobi

Abstract

Tourist hotel industry has been affected by the changes of environmental factors that have taken place. One major factor whose change has heavily affected this industry is the global security and safety. These changes have reduced the number of tourists visiting Kenya and thus increasing competition for the few tourists by the hotels. This study set out to document the environmental factor-changes that have affected tourist hotels, the strategic responses of tourist hotels to those changes and the constraints they have faced in their effort to respond to the changes in the environment. This was guided by the following objectives: First, to find out the changes of the environmental factors which have affected tourist hotels. Second, to determine the strategic responses that have been applied by the tourist hotels to those changes. Third, to establish the constraints these hotels have faced as they respond to those changes. Primary data was collected using open ended and closed ended questionnaire for a census of 21 hotels. The data was there after analysed using descriptive statistics which involved use of tables, mean scores, and percentages. The study found out that most of the hotels are not owned in a chain of a group of hotels and they get most of their clients from Europe and America. Thus all the travel advisories against citizens from these regions have heavily hit tourist hotels. Hotels said their business is fluctuating and unpredictable and most had changed their long-term planning. The analysis revealed that several environmental factors have changed both positively and negatively. It showed that firms have tried to respond to the negative factor changes to ensure their survival and success. They have done this by using strategies like shrinking selectively, restructuring, marketing and cost management strategies. It was also established that hotels have experienced both internal and external constraints as they respond to those changes. One of the major internal constraints is lack of finances and major external constraints include rigid government policies and competition among others. To succeed therefore hotels will need to understand the environmental changes that have taken place, craft the right strategies and overcome the constraints they face.