ISSN 2736-1721
Global Journal of Business Management ISSN 2736-1721 Vol. 14 (2), pp. 001-006, February, 2020. © International Scholars Journals
Full Length Research Paper
Empirical analysis of changing business environment on the performance of five-star rated hotels in Nairobi County, Kenya
1Jackline Bett*, 1Jennifer Kilonzo, 2Joseph Kiprotich Ruttoh, and 3Sammy Kimunguyi
1School of Professional Studies, Scott Christian University P. O Box 49-0100, Machakos, Kenya.
2Deparment of Agriculture, Kajiado County, P.O Box 54 Kajiado.
3Jomo Kenyatta University of Agriculture and Technology (JKUAT), P.O. Box 62 000 – 00200 Nairobi, Kenya.
Accepted 04 December, 2019
Abstract
The hotel industry has a prospect to grow the economy of a nation, through employment creation, providing market for industry and farm products and consequently reducing poverty levels. Despite the substantive position of the hotel industry to support the economic development in Kenya, there are external factors that influence its performance that has not been analyzed in Nairobi County. A census survey was done in all the ten five-star rated hotels in Nairobi, from which three respondents comprising of the marketing officer, the front office manager, and the finance manager were selected from each hotel. This made up a sample size of 30 respondents who were interviewed using semi-structured questionnaires. The relationship between the environmental variables and performance of the hotel industry was investigated using multiple regression analysis. The results obtained indicated that economical, technological, international and political aspects positively and significantly influenced the performance of five-star rated hotels, with coefficients of 1.467, 1.226, 1.444 and 1.246 respectively at 5% level of significance. From the findings, it is recommended that five-star rated hotels should exploit internal capabilities, utilize technology and innovation in order to optimize performance. They should also engage with various government and service industry players when formulating policies affecting their industry.
Keywords: Environment, five-star rated hotels, performance, Nairobi County, Kenya.