Customer Retention Strategies and Hotel Performance in Classified Hotels in Mombasa County, Kenya
Achieng, Silyvia Askine
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Customer retention has been found to accrue many benefits in the hospitality sector. However, it has become increasingly challenging for hotels to assume there is a constant customer base. Therefore, there was a need for assessing Customer retention strategies and hotel performance in classified hotels in Mombasa County. This study sought to establish the influence of customer service on hotel performance in classified hotels; determine the effect of service, integrity on hotel performance in classified hotels; assess the influence of communication on hotel performance in classified hotels, and determine the moderating effect of relationship marketing on hotel performance in Mombasa County. To gain a deeper insight, the study used Customer service theory and Customer satisfaction theory. The research was conducted in 4, 3, and 2-star ratings, hotels in Mombasa County, Kenya. A descriptive survey research design using a survey approach was used and a sample size of 384 respondents was targeted from 15 classified hotels. Sampling techniques included Stratified technique for the 15 classified hotels and Simple random for the customers in proportion to the number of hotels and Purposive for Food and Beverage Managers. Data was assembled using semi-structured questionnaires from 375 customers and interview schedules from 15 Food and Beverage Managers of the 4- star, 3- star, and 2-star hotels. Cronbach Alpha coefficient test of 70% alpha coefficient was used to gauge the internal reliability of the constructs. Quantitative and Qualitative data analyses were functional in the study. Qualitative data were analyzed to yield numeric data and presented using manual content analysis. Quantitative data were analysed using descriptive statistics such as mean, percentages, and standard deviation. Pie charts, bar graphs, and tables were used for data presentation. Linear and Multiple regression analyses were used to determine the relationship and test the null hypothesis. The results disclosed that Customer retention strategies and hotel performance were interrelated. Based on this outcome, the study concluded that Customer Service had a statistically significant effect on hotel performance (R=0.729; P=0.00); Service Integrity had a statistically significant effect on hotel performance (R=0.420; P=0.007) and Communication had a statistically significant effect on hotel performance (R=0.795; P=0.00) and, Relationship Marketing had a statistically significant moderating effect on hotel performance (R=0.835; P=0.00). Therefore, the study recommends that the various organizations under the Ministry of Tourism such as TRA, KAHCC, and PERAK to come up with policies and guidelines on how hotels' can accord good reception on arrival and promote value and worth for the services and products offere in their sectors. Further, classified hotel managers to explore approaches on how hotel staff should listen to customers’ suggestions, promote staff and customer interactions through the internet, staff training, and enhance customers advertising the hotel through word-of-mouth , which will lead to standardizing customer service, loyalty, return customers,hence higher visitation rates, and increased bed nights per visit, customer commendation, and competitive edge.