thesis.page.titleprefix Effects of cost reduction strategies and guest satisfaction among 2-5 star hotels in the coast region of Kenya
Date
2023-03
Authors
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Publisher
Mount Kenya University
Abstract
Today's high expenses for operation have led to the closing of certain hotels and a decrease
in visitors. Hotels have had trouble managing client connections and obtaining
certifications due to economic constraints that prevent good service delivery. Cost-cutting
in the hotel industry has therefore become essential. The study's goal was to determine the
impact of cost-cutting measures on customer satisfaction in 2 to 5 five-star establishments
in the counties of Mombasa, Kwale and Kilifi along the Kenyan coast. The study's
particular goals included identifying the effects of the management of supply chains
tactics, outsourcing methods, conserving water and energy initiatives, and labor methods
for reducing costs on consumer happiness. Department heads who were assessed to have
information for the study served as respondents for the study, which concentrated on 2, 3,
4, and 5 star hotels. A sample of 205 respondents from a target population of 423
respondents. The study adopted cross sectional survey design and used questionnaires for
data collection. The reliability of the data gathering tool was evaluated using the Cronbach
Alpha test. Multiple regression was utilized to examine the course and magnitude of cost-
cutting methods on satisfaction among customers in Kenya's Coastal region hotels, while
descriptive statistics was employed to collect data on demographics. It was found that
hoteliers in the Kenyan coastal region gave guests' happiness top priority and put a number
of measures in place to raise and maintain visitor contentment. It was found, however, that
not all tactics improved guest pleasure. The study found that measures to conserve water
and energy enhanced client fulfillment in hotels along the country's coast. On the other
hand, labor cost-cutting tactics had a detrimental impact on hotel visitors' pleasure. Cutting
labor costs in order to increase guest pleasure has an adverse relationship with customer
satisfaction (r=-0.1116). Customer fulfillment and measures to save water and energy have
a favorable link (r= 0.09). It was determined through the summary of the model that
variations in energy and water saving measures, as well as a decrease in labor costs
methods, were responsible for 42.7% of the variations in satisfaction among visitors
in hotels (R squared= 0.42). The findings of the research are significant for regulators since
they can be used to create regulations for the hotel and restaurant industry that will aid
hotels in maintaining and enhancing customer happiness. The results of the research can
also teach hoteliers about how cost-cutting measures affect their clients. It also advocated
adopting an organized outsourcing approach and setting up regulations to make sure hotels
adopt conserving water and energy measures. The most recent and efficient supply chain
management methods need to be taught to leaders