Technology-Driven Financial Services and Profitability of Five Star Hotels in Nairobi City County, Kenya
| dc.contributor.author | Huria, Ann Wambui | |
| dc.date.accessioned | 2026-02-05T09:25:44Z | |
| dc.date.available | 2026-02-05T09:25:44Z | |
| dc.date.issued | 2025-11 | |
| dc.description | A Research Project Submitted To the School Of Business, Economics and Tourism for the Partial Fulfilment for the Award of Master of Business Administration (Finance Option) Kenyatta University Supervisor Anthony Mugetha Irungu | |
| dc.description.abstract | The hotel industry was a vital component of Kenya's economy, particularly in Nairobi City County, which had the highest concentration of five-star hotels in the country. However, between 2020 and 2024, these hotels experienced a significant decline in profitability. Thus, the general objective of this study was to determine the effect of technology-driven financial services on the profitability of five-star hotels in Nairobi City County, Kenya. The specific objectives were to determine the effect of online booking platforms, mobile banking solutions, fintech-based loyalty programs, and automated invoicing systems on the profitability of five-star hotels in Nairobi City County, Kenya. The study was anchored on Transaction Cost Theory, Innovation Diffusion Theory, and Technology Acceptance Model. The research employed a descriptive research design to examine the effect of technology-driven financial services on the profitability of five-star hotels in Nairobi City County, Kenya. The target population comprised all eleven five-star hotels in Nairobi, focusing on the Finance, IT, and Customer Service departments, with a total of 62 respondents. A census was employed, along with purposive sampling to select knowledgeable participants. Data collection was conducted using structured questionnaires, designed with closed-ended questions to facilitate quantitative analysis, and the research followed a defined procedure that included obtaining necessary permissions. A pilot study was conducted from six purposively selected five-star hotels where only one participant from the customer care department in each of the six hotels was selected. The study tested context and construct validity, and reliability was tested using a Cronbach Alpha score, where a threshold of 0.7 was used. The study employed multiple regression analysis to determine how online booking platforms, mobile banking solutions, fintech-based loyalty programs, and automated invoicing systems influenced profitability. Diagnostic tests, including normality, multicollinearity, homoscedasticity, autocorrelation, linearity, and heteroscedasticity tests, were conducted to validate the regression model. Data were analyzed using Microsoft Excel and SPSS version 25.0, with findings presented through pie charts, bar graphs, and frequency tables. Ethical considerations included obtaining informed consent, ensuring confidentiality and anonymity, restricting data usage to research purposes, and upholding unbiased reporting of findings. The study found that online booking platforms (β = 0.843, p < 0.05), mobile banking solutions (β = 1.333, p < 0.05), and fintech-based loyalty programs (β = 0.802, p < 0.05) all had a statistically significant and positive effect on the profitability of five-star hotels in Nairobi City County. Mobile banking had the strongest influence, followed by loyalty programs and online booking. Automated invoicing systems had a positive but statistically insignificant relationship with profitability (β = 0.136, p = 0.382), suggesting their role is limited unless integrated with other fintech innovations. Overall, the average net profit margin of 4.67 indicated moderate profitability among the hotels, with room for improvement through adoption of digital financial technologies. The study concluded that technology-driven financial services, particularly mobile banking, online booking platforms, and loyalty programs, significantly enhance the profitability of five-star hotels. Automated invoicing systems alone do not significantly affect profitability but can support it when integrated with other fintech tools. Five-star hotels should improve their online booking platforms by enhancing usability, accessibility, and real-time reservation features. Investment in mobile banking technologies should be prioritized to streamline payments and support diverse customer needs. Loyalty programs should be personalized and integrated with other digital tools to increase customer retention and long-term profitability | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32281 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Technology-Driven Financial Services and Profitability of Five Star Hotels in Nairobi City County, Kenya | |
| dc.type | Thesis |