Competitive Strategies and Performance of Star-Rated Hotels in Nairobi City County, Kenya

Abstract

The Covid-19 epidemic and the fierce rivalry in the hospitality sector have both had a pivotal role in Kenya's hotel sector's performance decrease. Further, with continuous lockdowns and scaling down of operations the hotel industry in Kenya it’s expected to continue facing challenges. This study strived to examine the effects of competitive strategies on the performance of star-rated hotels in Nairobi County, Kenya. The research was based on the resource-based view theory. The research study used a descriptive research design. The target population was the 83 registered star-rated hotels in Nairobi City County Kenya. The study employed a census sampling method. The study utilized on primary research data with a structured research questionnaire being administered in the study. The collected research data was analyzed with the use of SPSS 25. The survey was able to obtain 81% of the responses from the management team within the hotels. The study concluded there is a positive and statistically significant effect of competitive strategies on the performance of star-rated hotels in Nairobi County. The findings led to the conclusion that innovative strategies, differentiation strategies and market development strategies have a positive and significant effect on the performance of the hotels. The study recommends that the hotels develop new and fresh ways of leveraging new market opportunities. This can be utilized by employing market segmentation and niche market approaches. The hotel should further set to achieve objectives such as being able to focus target clients much more effectively which will lead to customer satisfaction, customer retention and market share.