Competitive Strategies Adopted by Kenya Association of Tours and Operators (Kato) to Sustain Growth & Performance in the Hospitality Industry

Abstract

The objective of the study was to establish competitive strategies adopted by Kenya Association of Tour Operators (KATO) to sustain competitive advantage in the local hospitality industry. The study was conducted through a distribution of questionnaires which were distributed to the target audience which included senior managers, tour firm owners, operators, transport managers. The outcome indicated diverse views and other industry related challenges in the industry. KATO is all umbrella body of tour operators‟ transporters. The study indicated that various competitive strategies were being adopted by different firms to boost their competitiveness. Among the popular strategies adopted was focus strategy whereby tour operators tend to serve particular clientele more than serving the entire market. Second popular strategy was differentiation whereby the tour firms have developed different package offering for different clientele so that the market offering or service becomes viable and unique. The focus strategy stressed the concept of customization whereas the differentiation strategies convenience. The study identified various challenges associated with the study, the notable challenges were the introduction of modern technology in transport sector “UBER franchise” which has really affected the operations to some level as most clients opt to connect through the internet for service provision. The second challenge was resource based issue whereby the association doesn‟t have resources to facilitate the modern practices of communication such as “UBER” franchise techniques. The study made recommendations such as the harmonization of policies and procedures to make the services more flexible to client‟s needs. It also noted the upgrading of technology to serve the customer so that the firm becomes competitive in terms of customer satisfaction and perceptiveness. The study also recommended that the association improves the current outline to cope with current technological innovations and practice.