Capacity Management and Performance of Five- Star Hotels in Nairobi County; Kenya
Abstract
This study aimed to establish the influence of capacity management strategies on
performance of five-star hotels in Nairobi County. The study also sought to evaluate the
challenges experienced in incorporation of capacity management strategies and its impact
on performance of five-star hotels. The study undertook a census of all 32 five-star hotels
within Nairobi County; Kenya. The study involved a sample of 96 participants drawn
from the strata management structures of the respective five- star hotels within the
Nairobi County. Primary data were used which were collected through questionnaires
from the top-level, middle line and lower level managers. The study used descriptive
statistical tools and the regression model to analyze the collected data. The study found
that various implementation of demand and supply strategies by five- star hotels was
affected by several challenge among them information technology infrastructure, high
costs of operations and seasonality based demand. The study also documented that ICT
plays a key role in enhancing capacity management as well as the performance of fivestar
hotels. The regression results found that price management showed a positive and
significant relationship with performance while demand forecasting reflected positive and
significant relationship with performance. Further, the results showed that the
relationship between outsourcing and creating reservation systems and performance was
positive and significant while there was a positive but insignificant relationship between
the use of part-time employees and performance. Additionally, capacity sharing had a
significant positive effect on performance whilst expansion ante had a positive and
insignificant relationship with the performance of five-star hotels in Nairobi. The
research concluded that price management, demand forecasting, outsourcing and creating
reservation systems and capacity sharing had a statistically significant and positive effect
on performance of five- star hotels in Nairobi County.
Publisher
University of Nairobi
Subject
Capacity ManagementRights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1311]
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