Prospects of Cost Leadership Strategy for Tourism Performance: Are Cost-Reduction Techniques a Solution?

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dc.contributor.authorWanjiku, Joseph Thukia
dc.contributor.authorMunyiri, Esther Kagure
dc.contributor.authorMaingi, Shem Wambugu
dc.date.accessioned2023-10-23T06:55:27Z
dc.date.available2023-10-23T06:55:27Z
dc.date.issued2023-10
dc.descriptionArticleen_US
dc.description.abstractTour operators are critical in Kenya's multi-billion-dollar tourism industry, a vital pillar of the country's economic development agenda. However, recent statistics indicate that tourism performance has declined due to various factors, including political and security unrest, bureaucratic government policies, stiff competition, and the COVID-19 pandemic. Additionally, the emergence of sharing economy platforms such as Airbnb has threatened the traditional business model of tour operators. At the same time, a 16% value-added tax on sales has also put pressure on their revenues. In addressing these challenges, this paper examined how tour operators in Nairobi City County can enhance their performance by implementing a cost leadership strategy in Kenya. A descriptive survey study was conducted with 15 company owners and 210 managerial staff. The respondents answered structured questionnaires and interviews, and the data were analyzed using descriptive and inferential statistics. Correlation analysis revealed a moderate positive relationship between cost leadership strategy and organizational performance (r=0.449, P<0.05), rejecting the null hypothesis, with the strategy explaining 20.2% of the variation in performance (b=0.378, P<0.05). The study recommends that tour operator companies adopt strategic alliances with the supply chain, implement operational efficiency frameworks, entirely automate their services, and follow cost-reduction mechanisms to enhance organizational performance. These findings guide tourism stakeholders, particularly company executive teams, on the organizational performance implications of strategic cost-reduction techniques in the context of Nairobi City County's tour operator industry.en_US
dc.identifier.citationThukia, W. J., Munyiri, E. K., & Maingi, S. W. (2023). Prospects of Cost Leadership Strategy for Tourism Performance: Are Cost-Reduction Techniques a Solution?. Journal of Hospitality and Tourism Management, 6(4), 32-45.en_US
dc.identifier.urihttps://doi.org/10.53819/81018102t4194
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/27043
dc.language.isoenen_US
dc.publisherStratford Peer Reviewed Journals and Book Publishingen_US
dc.subjectCost Leadership Strategyen_US
dc.subjectOrganizational Performanceen_US
dc.subjectNairobi City Countyen_US
dc.subjectTour Operatorsen_US
dc.subjectTourismen_US
dc.subjectCOVID-19en_US
dc.titleProspects of Cost Leadership Strategy for Tourism Performance: Are Cost-Reduction Techniques a Solution?en_US
dc.typeArticleen_US
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