Quality Standards and Competitiveness of Star Rated Hotels in Nairobi City County, Kenya
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Date
2021
Authors
Musembi, Janiffer Mutio
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Globally, the concept of competitiveness in business is very rife. In the hospitality sector, the
concept of competitiveness has been applied differently in the varied operational segments
and types and in most cases expanded to include the sustainability discourse. Certain business
strategies for instance pricing, brand image, quality and sustainable tourism are at the core of
day to day operations. Although, there has been a plethora of published research, related to
quality in the last decade worldwide, very few studies have been conducted on the area of
quality as an element of competitiveness in Kenya and especially in the hospitality industry.
This study zeroed in on one key segment of tourism’s hospitality sector; the hotel or tourist
accommodation segment, to discuss further the aspect of competitiveness vis-a-vis the quality
standards that are applied. The study therefore sought to determine the effect of quality
standards and competitiveness of hospitality establishments in Nairobi City County, Kenya
by specifically assessing the effect of independent variables; classification system, branding
and ecolabels on the dependent variable; competitiveness. These study objectives were
anchored on three theories; the Resource Based Theory, the brand equity theory and the
dynamic capabilities theory respectively. The study used descriptive research design that
included a cross-sectional survey with the study population being the star rated hotels
currently operating in Nairobi City County, Kenya. The study focused on 54 hotels as per the
data from Tourism Regulatory Authority (TRA). Out of these, 2 Hotels were used for pilot
testing and the remaining 52 Hotels were examined. A pre-test was performed to establish the
instrument’s validity and reliability. Data was gathered using self -administered
questionnaires. Reliability was checked using Cronbach’s alpha coefficient and outcomes
were; classification 0.937, branding 0.933 and eco labels 0.855. Analysis of data was by
quantitative approach using SPSS version 25. Descriptive statistics (by use of measures of
dispersion, means and percentages) and inferential analysis were utilized in the data analysis.
Analysis with the aid of multiple regression displayed the Variables’ relationship strength.
Frequency tables displayed the findings which were explained thereafter. One-way ANOVA
analysis demonstrated independent variables statistically significantly predicted the
dependent variable. Classification and branding were statistically significant in hotel
competitiveness from the multiple regression analysis compared with eco labels. Eco labels
lower influence could be attributed to lack of eco labels by most the hotels in the survey. The
study revealed that classification provide avenue for benchmarking with competitors, help in
marketing hotel locally and abroad and improve the quality of service delivery. Also it was
revealed that branding influence hotel image, hotel recognition and also customer loyalty in
terms of increased attachment. It was established eco labels improve hotel image, attract
customers, improve market share and operational fitness. The study recommended for
suppliers in the tourism and hospitality sector to familiarize and implement existing quality
standards in a bid to become more competitive.
Description
The Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (Strategic Management), Kenyatta University, October, 2021
Keywords
Quality Standards, Competitiveness, Star Rated Hotels, Nairobi City County, Kenya