Case Study on The Hotel Industry in Kenya

Category: Case Study, Hotel
Last Updated: 31 Jul 2021
Essay type: Case Study
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Table of contents

This chapter examines the background on the study, the statement of the research problem and the purpose of the study. The research objectives research questions, the significance of the study, and limitation of the scope of the study are also explained.

Background of study.

Hotel industry is all forms of business relating to provision of accommodation in the lodging, food and drinks and various types of other services that are interconnected and form intended for the public services, both of which use the lodging facilities or ho simply use the services or the production of certain services of the Hotel. As such Hotel mean commercial establishment providing lodging to travelers, tourist and sometimes to permanent residents and often having restaurants, meeting rooms, stores that are available to general public.

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Hotels are being classified into -start-05-star) even though there are no standard methods of assigning those rating and compliance with the customary requirement is voluntary. Hotel chain provides a uniform standard through out non-chain hotel(even within the same country)may not agree on the standard, although both World Health Organization WHO) and International Standard Organization(also)have been trying to persuade Hotels to agree on some minimum requirement as world norm, the entire membership of Paris base International Hotel and Restaurant.

Association opposes any such moves. According to (II&RA) to harmonize the hotels classification base on single grading(which is uniform across national boundary; as a rough guide on the bases of I-star Hotel, 2 star hotel, 3 star hotel. A star hotel and 5 star hotel such rating differentiate the hotels with regard to provision of their services as ranging of emitted amenities but adhered to a high standard of facility, wide cleanliness to widest range of most luxuries premises and guest services as well as swimming pool, sport and facility.

In sass the Government of Kenya was quite aware of the adverse effect of dominance and control of hotel industry by the foreigners due to repatriation of profit, importation of personnel and some foodstuff, therefore establishment of Kenya Tourist Development Corporation in 1965 aimed to break of the monopoly enjoyed by foreigners despite the commitment to the modernization of the hotel industry and sustenance of the tempo of tourism, the Government focused its attention mainly on the international tourism while a substantial amount of money was set aside to promote domestic tourism in the first decade of independence. R. M. Macon, 1992) A continental research study released for Africa Hotel Investment Forum which was for Nairobi September (2012) revealed a positive spike touching on the number of multinational hotel investors rushing to set up operation in sub Sahara Africa. Kenya is emerging as a fast growing hotel investment destination with international chain such as; Best Western, Radios Blur, Park Inn, and Three Cities branded hotel all under construction- and 200- room Lonesome Hotel. New brand on the drawing board; (Mr.. Needed 2012).

Kisser (2003) the term service delivery platform usually to set components that provide service Case Study on The Hotel Industry in Kenya By Chester service different players define its component and it breath and depth is a slightly different way of Maintaining high quality services, the hotel is faced by the challenges of accommodation and food if the services rendered and product issued o not fully fit the customers' expectation, poor quality service deliveries will be established from the customers' perspectives.

Its vital for the hotel industry therefore to acknowledge the message that quality is really about satisfying the needs and expectation of the customers. Menial al (2010) agree that the provision of duty is not easy task to meet because it feature. Product too, and high level of interaction and that implies that their should be high degrees of professional an other factors like staff motivation, efficiency, consistency, speed of the delivery as well as friendliness of the employees s also integral elements for customers and these attributes attract them to revisit.

To ensure public counter ability ,yet to goon optimum impact, through the use of commercial best practice, there is a need or for professional training and education of those personnel responsible for the strategic direction and partial action . Professionalism can be only come from full understanding of all the issues involved ,a sound knowledge of the legal and commercial aspects and the confident to make decision that effectively balance the tension , it has been rated as the most influential factors in gaining the customers' satisfactory loyalty and intentions to revisit.

Profile of Nairobi Serene Hotel

Nairobi Serene Hotel is situated in the heart of Nairobi city; the extensive ground of Serene Hotel contains a fitness centre and spa. Justly fame for its exceptional standards of efficiency services and five- star hospitality, the elegantly sophisticated Nairobi Hotel is a member of the leading Hotel of the World group and is consistently voted "Best Hotel" in Nairobi City by Airline and International Travel Magazine alike. Despite its pivotal central location, the Serene Nairobi Hotel remains true to its title ND offer s an oasis of serenity a mid of bustle of one the Africans most vibrant capital cities.

Nairobi Serene Hotel offer a fine -dinning restaurant with a seasonal menu and extensive wine- cellar Guest can enjoy a variety of snacks and drinks at the pool side bar, cocktails at the Assume Bar. The 24 hrs front desk can organize concierge, limousine and baby setting services or make an appointment for guests at a site hair salon, free private parking is provided and a shuttle is provided upon the request to Zoom Kenya Airport (AKA ) km away, Railway Golf Course is 3 km away and Nairobi Park is within 9 km drive.

The elegant and precious rooms and suites are decorated, with worm colors and wooden furniture, equipped with air conditioning and a private bathroom. The interior deco reflects an entirely Pan Africa theme featuring art and inspiration from Ethiopia, the Massager. West Africa and East Africa, offering a range of dinning experiences, the Hotel in Kenya is renowned for its Madrid fine - dining restaurant which is rated as one of the Seaman's finest. Nairobi Serene Hotel also offers a world class conferences entire and the elusive "mash" Health Club and Spa . The regional corporate events.

Planners, Nairobi Serene Hotel offer unrivalled choice of the executive suits, global connectivity conferences planning proficiency, product launch experts and high- proof international corporate events venues. Organization Structure Source: Serene Journal (1998)

Statement of the problem

The Hotel industry is a broad categories of field within the services industry that Include the lodging and restaurant, event planning them park, transportation cuisine Line and addition fields within the tourism industry, it is several 1 billion dollars industries that mostly depends on the availability of leisure time and dispensable income.

The dynamic of the customers' culture, need and expectation not only computed the hotel industries to high professional in the field. It is also invested in the sophisticated assets challenge the unique services like conferences facilities that can be matched with other partners in the same field . As such the industry has been communication technology where by the manager of the hotel industry are tying to find a working formula to take advantage of the others for proper satisfaction of their customers needs and expectations. For services delivery to be noticed by both parties that is the customers and the hotel management there is a need to find a plan for meeting such objectives in form of strategy and that will enable the management offer continues improvement services delivery. Therefore this study is being looked into to find how the competition, training strategy and Information Communication Technology pose challenge to the hotel industry to the management in service delivery.

Objective of the study

The purpose of this study is to establish challenges facing services delivery in the hotel industry in Kenya with reference to (Serene Hotel)

Specific objective I.

To determine the effect of the staff training on service delivery in Hotel industry it. To establish the effect of competition in service delivery in the Hotel industry iii. To find out the effect of the government policy in the Hotel industry 'v. To investigate how the Information Communication Technology affects service in Hotel industry v.

To find out the effect of the strategy on service delivery in the Hotel industry

Research questions

In order to conduct this research study the successfully, the following questions are asked by the researcher:- I How does the staff training affect services delivery n the hotel industry in Kenya? Ii To what extent does the competition affect delivery in the hotel industry? Iii. How does the government policy affect the delivery in the hotel industry in Kenya?

To what extend does information and communication technology affect delivery in the Hotel industry in Kenya.

What is the role of strategy in the Hotel industry in Kenya?

 Significance of the study

The study has five components of the study that explore whether training staff, Government policy, competition, information and communication and strategy technology have effects or influence services delivery in the hotel industry (Serene Hotel)it opens different aspect of the theory generation that may support further research into services delivery aspect as a whole. . 6. 1 The Organization This study well enables the hotel to beat the competition that will win the customers loyalty and confidence. It will result in increase of the income of the hotel and lead to the growth of the business as well the entire hotel industry. 1. 6. 2 The Employee This study will enable the employees learn new ways of satisfying guests better with world class standards. This study will also help to develop close support between employees and the guest. . 6. Government The government of Kenya is responsible for general welfare of citizens, like any other citizen by offering the employment opportunity , the challenges facing services delivery in Hotel industry ,therefore the Government on rules and regulation in setting any commercial business affecting hotel industry .

Other researchers

The researchers who are doing related study may use this research as their data. The research will also propose other areas which explore further.

Limitation of the study

The unwillingness of some respondent will mostly affect the study adversely, whom re not quit conversant; with 'hotel industry management and the entire needs and expectations of the customer and with regard to services delivery.


Some of the respondents will have the perception that confidentiality of their response will not be kept with a fellow employee so they will not willingly give some information especially touching on the management.


It will be difficult to have access to some confidential information in the hotel under study; the study confined itself into five challenges which are being investigated. Data will be gathered and interviews conducted within the scope of these challenges thus contributing to availability of limited data for analysis since there are many other challenges that the study failed to incorporate and have an effect towards service delivery.

Non-cooperation from respondent

The researcher to experience some aspects of unwillingness to disclose information to be considered important for the study.

They will not be able to cooperate because t of thinking that the study is a private research and collecting information may be used for wrong purpose. However the researcher will overcome his by assuring them it for academic purpose only. 1. 8 Scope of the study. The study is to be carried out in Nairobi Serene Hotel Nairobi city along Kenya Avenue Street to determine challenge facing service delivery in the hotel industry, the target population obtained is 60 employees.

The study is to be taken within five months.



This chapter is a review of relevant literature which is considered necessary in helping to understand the research study. It represent the review of literature on the topic under study which has been done by various researchers, theorist and tutors . The researchers have drawn materials from several sources which are closely related to the theme and objective s of the study .

This will guide the researchers to come up with the best solutions to solve the problem at hand and add more strength to the existing studies in the same field and highlights the identified gaps and presents the conceptual frame work.

Review of Theoretical Literature

Training Staff

Training refers to methods used to give new present employees the skills, they needs to perform their Job . This necessitated by the fact that employees have had to adapt o rapid technological changes, improved product and service delivery, quality and boost productivity to stay competitive.

Employees today need skills in team building, decision making and communication as well as technological and computer skills. Guppy (1992) describes training as any process which the attitude and abilities of the employees to perform specific Job are increased . Training is aimed at achieving the learning necessary for improving Job performance (Kenny and Reid, 1994). According to Cole (1997) training is any activity that is desired towards the acquisition of specific knowledge and skill for the purpose of an occupation or task.

Vigor's and Mayors (1997) view training as enhancement of knowledge which acts not only as motivator to the employees but also an opportunities for better Job that has more responsibility with good achievement . Training is a planned process to modified attitudes, knowledge or skills, behavior through learning experience to achieve Performance in any activity or range of activity. Its purpose is to develop the individual and satisfy the current and future. Man power needs of the organization must be looked into effective training contributes to organization performance .

This was illustrated in a case study how an international companies producing high value added manufactured goods in North America and West Europe. To succeed and survive an organization needs to reinvent themselves regularly . Learning underpins the effort of management team that does not shy away from challenges of change and pro-actively seeks to find better ways of doing things. Manager needs to support and engage in effective learning process . The routine act ,find out what work reflect and refrain retain desirable behavior, needs to permeate all levels of the organization at both individual and the groups level.

These does not mean that the learning for the sake of learning or permanently engaging in one experience as the other experience as the others. Experimentations, reflection and learning will assume grater important as the future become more between learning and control, change and stability, thought and action. Porter ,(1988), points out other key factors for organizations; effective management of customers satisfaction and loyalty, maintain the right skill mix in a rapidly changing environment , enhancing employees flexibility, effective introduction of new routine and technology.

According to Kamala el al (2005) training can be formal or informal; which is either the off the Job or on the Job. In the planning stage of change process managers of change should be able to anticipate the skill that would be required to implement the change and clear plan on training program for the targeted workers. This make up the part that is formal training. Aldrich (1997) however further observes that the organizations are increasingly opting for formal training unstructured, unplanned and easily adopted to situations and individual for keeping the employee current.

In the reality, the informal training is nothing more than employees helping each other out sharing information on work related problems with one another. He observers that perhaps the most important of this outcome as that many manufacturers are supportive of what used to be considered "idle chatter". Training in organization is perceived as a way to respond to the change early which will propel the organization and gain reward in term of security profit or attainment of these goals of training and department arise because the world changes.

These change affect environment which the organization operates, employees are affected by new hanged and they must adopt, learn new skill, cope with different pressure acquire, new knowledge and forge new relationships. Training bring additional resources to individual to enable them change and develop change as affected by political, economic, social ,technology, the law and the environment . The business training views, training not as off investments but as continuous investment not only if it is needed to create the skill workforce but never before have the changes been so expensive.

The things people do, the way they do them and their importance to business is all changing rapidly . He attributed the change the to vast expansion in the development of application of computer automation in the factory and in the office and disappearance of many traditional traders. In conclusion, He said the environment employees trained is also effective depends on the people wanting to learn, change nature and encourage the desire and will to learn. (Tactics el al, 2001).

Training is the process of increasing the knowledge and the skills of the employees for doing particular Job. It's _he organized activity designed to create a change in the thinking and the behavior of people and enable them to do their Jobs in a more effective manner. Industry, it implies importing technical knowledge, manipulative skills, problems solving ability and positive attitude on the other hand development means growth of an individual in all aspect .

An organization makes arrangement for the development of its executive or staff as to improve the efficiency of managements. Training is a large Job centered while development is career bound. To him the need for training arises because of non availability of trained personnel, suitability of enterprise need and proficiency is latest method ( ABA lye, 2005). According to Leasing (2001) training enables the organization viability and transformation process, the primary goals of most of organizations in their viability is continuously influenced environment pressure.

The productivity of the organization depends on the effectiveness of the human resources that the organization process Employees effectiveness of human can be secured by proper training, training ensures that there are technological advance in order to survive and to be effective then should adopt the latest technology mechanization, computerizing and automation. Adoption of latest technology means and methods will not be complete until they are manned by employees processing skills to operate them as much The Nairobi Serene hotel should train employees to enrich them in the areas of changing skills and knowledge from time to time.

Sizable Robinson {2007) Training is specific way in the which learning can take place within the organization. Training can be viewed as the bounded activity focused on equipping employees with the knowledge and the skills necessary to form work roles and responsibilities to the satisfactory standards; 'According to Manpower service commission (MASC.) 1961-62) define raining as plan process to modify attitude, knowledge, or skill behavior through the learning experience to achieve performance in activity or range of activities.

Its purpose in the work situation is to develop the ability of the individual and satisfy the current and future of the organization. From that definition it was further illustrated by IANA McKee, Area HRS manager, Hilton Hotel, Belfast that "we can't train every one to do every thing . The emphasis is getting to learn within the environment where they work and getting to adopt and apply that knowledge . Every customer has different expectations.

There is no way we can train for every eventuality we want our staff to be spontaneous and react and respond to guest expectations" Solomon (2003) - Both training and development can be concerned with development of knowledge skills and attitude but where training is specifically focused on immediate short term requirement of the Job or the task, the concept of the development is to focus on the longer term growth and the development of the individual in a way that fulfill their potential. It is defined as systematic modification of the behavior through learning.

This occurs as a result of education, instruction and the planned experienced . Training is a task oriented as it focuses on the specific areas of work . The training standard are derived from the Job. Training is provided when there is skill gap between an expected and the actual standards of performance. Training is planned process to modify attitude knowledge or skills behavior through learning experience. It aims at achieving effective performance in an activity or range of activities. Its purpose in work situation is to develop the ability . He individual and to satisfy the current and the future manpower needs of the organization, it must eave the purpose. It can be well defined it the learning needs of the organization and the groups and the individual have systematically identified and analyzed (Armstrong 2000) . He further continues by saying that Job analysis for training purposes means examining in details of Job content, the performance standards required in term of quality and output , the skills know ledge and competence needed to perform the Job completely and thus meet performance standards .

This involves analyzing what the individual needs to know. It may be technical or commercial knowledge or may be or immemorial economic or market environment, Procedures to be ;followed or customers, colleagues and subordinates he, she is in contact with and challenge that affects their behavior . Let may also refers to the problems that occurs . And how they applicable to the hotel industry to involve their employees for training make them productive and be relevant to the organization changes as do occur to the business environment.

Decedent & S Robin (1998), training is a learning experience in that it seeks relatively permanent change in an individual that will improve his or her ability to perform on the Job . They typically say training can involves the changing of skills 1 knowledge 1 attitude or social behavior . Let may mean that changing what the employees know, how they work 1 their altitude toward their work, or their interactions with their co-workers or their supervisor. According to Cole (2002) organization adapting systematic approach to training and development would usually be a bout defining their needs for training.

In accordance with a well organized procedure. Such a procedure well entails looking at training need from a number of different perspectives. The organization that is corporate requirement. The department of or function, the Job or occupation group and the individual employees. The particular perspective chosen will depend on the circumstance. For example if the change in the environment of the organization are entering pressure change internally, the corporate perspective needs to be taken . F however the issues is one of the improving skills in particular category of employees then that category of employee under that of occupational group under the focuses for effort. Usually organizations analyses training needs in response to n operational weakness ported in by line managers or to meet the demand of change . The former reason suggested their is something of improving or entertaining guest in Hotel that makes an element in training needs analysis,the later suggest that it can be deployed as an element of planned change in an organization.


by definition n is an effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms. It refers to rivalry among the firms operating in the market to fill the same customers' needs. Competition is all about the on lying to out do the other, Webster (2008), she further said decomposition is a pillar of capitalism in that in stimulate innovations encourage sufficiency or drive down price ,competition causes commercial firms and private sectors to develop new products.

According to Soot Barkiest{ 1997) there are further basic types of competition. These are; pure competition where every industry or firm has a similar product ,monopoly competition where only the one firm sell the product, monopolistic competition is where by the many sellers compete with their reduce on suitable basic and finally, oligopolies competition which is common industry structure and occurs when a few competition control the majority of industry sales. Competition is a business relation in which two parties offering the same service or proving the same product to the market complete to gain customers.

Competitors are those organizations offering the services or products to the same category of the market direct competitors are the most obvious competition competitors, those are other , service providers with the same services to compete for he some customers,{Brown,2008). According to Porter (1992) competition is at the organization may base on the competition. It determine if an organization in a certain industry ,innovation, creativity, cohesive , strategy or implementation can contribute to its performance, Intensity of competition in an industry is neither a master of coincidence or bad lack.

Instead it is rooted in its underlying economic structure and political competitors. To emphasis that there are several players in Hotel industry where Serene Hotel is trying to out do them . Likewise to them, for example Sartor toll, Pan Africa Hotel Jacaranda Hotel all these are providing similar services to the customers and everyone giving each one competition. Competition can either be healthy or unhealthy. Healthy competition has its benefit attributes in any business venture as it leads to improvement of products or services and effective communication . His benefit the consumer. It can also lead one player in such industry like Hotel industry to improve, this is because positive or good competition enables one to admire a competitor's business success and inspire one to improve its services to customers. Unhealthy competition puts competitors firms in an industries too much pressure delivery for results which in most cases end up . Being disastrous to competing firms. Rivalry amongst established firms has negative attribute, each of the firm wants to outdo. He other through authentically means such as lowering prices beyond acceptable levels, stealing customers from the competitors, negative publicity of the competitors as well as waging cold war's in the market arena( Porter 1980) . Threats of new entrants: they bring to the industry anew capacity; desire to gain the market share and substantial resources. Threats from substitute product limit the potential return of an industry by placing a ceiling on the pride. Technology is the most significant barriers to competitors.

This is when technology differences are considerable and infrastructure in the market does hot exist to make friendly . Lack of credible competitor in market spine off new competitors and motivate efficiency for firms to enter the market with better solution portfolio lowering prices or a range of services that is unknown to the market. Consultants act as an advertisement to the competitions that is when a strong nutritional feels all is pride of his own country offers to prevents customers for using or adopting foreign brands .

The ability of the customer to push down prices due to their bargaining power can affect the return in business . This result increased competition particularly market players offering the same product and service in relation to the number of customer. (Kenneth London (2006). Reagan( 2004) also identifies barriers that bars an entry and exist of firms in the market . The government policy is the most significant entry barriers in any market through its protection of local industry against dumping or unfair foreign industries monitors is often the excuse of the government intentions in the market place.

Competition needs mapping in terms of the needs it fills rather than in product term, once the business has been defined, It is necessary to define the served customers groups. The decision should be based on market potential estimate and to company understanding of segments of needs. Reagan further noted that 'competition' is necessary evil. It is necessary for the health of industry and spur new development, competition being an important force needs to be tracked and analyzed and hence

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