MARKETING MIX STRATEGIES AND ORGANIZATIONAL PERFORMANCE OF CLASSIFIED HOTELS IN THE WESTERN REGION OF KENYA
Abstract
The hotel industry in Western Kenya is a key economic pillar, contributing ~10% of GDP and providing significant employment. Despite this, occupancy rates dropped from 37% in 2018 to 19% in 2020, averaging 25.2% between 2020 and 2024, below the 30–40% break-even threshold, highlighting performance volatility and raising concerns over financial sustainability. While many studies have focused on tourist behavior and satisfaction, limited attention has been given to the hotel industry's role in tourism performance. The general objective of this study was to examine the influence of marketing mix strategies on the organizational performance of classified hotels in western region, Kenya. The specific objectives of the study were; examine the influence of place on the organizational performance, to analyse the influence of promotion on the organizational performance, to establish the influence of price on the organizational performance and to examine the influence of people on the organizational performance of classified hotels in western region, Kenya. The study was anchored on the marketing mix theory. This research adopted a positivist research paradigm. The study employed a descriptive research design. The study targeted a total of 353 respondents drawn from 49 classified hotels in the Western Region of Kenya, including 49 Hotel General Managers, 49 Marketing Managers, 49 Customer Relations Officers, 49 Front Office Managers, 49 Food and Beverage Supervisors, 10 Tourism Officers, and 98 Waitstaff. The study adopted Yamane’s sample size formula. Stratified random sampling was used in selecting 188 respondents. Data was collected using questionnaires. Both descriptive statistics (mean, frequency, percentages, and standard deviation) and inferential statistics (multiple linear regression and correlation analysis) were used for data analysis with the help of SPSS. The study findings indicated that marketing mix components explains 63.4% of the variability in organizational performance of classified hotels. Further, the study findings indicated that place, promotion, price and people have a positive and statistically significant effect on organizational performance of classified hotels in Western Kenya. Specifically, the regression results showed that place had a regression coefficient of β = 0.458 (p = 0.009), indicating a positive and significant effect on organizational performance. Promotion had a regression coefficient of β = 0.681 (p = 0.001), showing the strongest positive and significant influence on organizational performance. Price recorded a regression coefficient of β = 0.594 (p = 0.000), indicating that competitive pricing significantly improves hotel performance. Finally, people had a regression coefficient of β = 0.351 (p = 0.000), demonstrating that employee competence and service delivery significantly enhance hotel performance. The study recommends that classified hotels in the Western Region of Kenya should strengthen the implementation of marketing mix strategies by improving accessibility and strategic location of their facilities, enhancing promotional activities, adopting competitive and flexible pricing strategies, and investing in staff training and development.
JEL: M30 M31, M37, M38