This chapter presents the procedures and the methods the researcher employed to carry out the study. The section comprises of the research design, target population, sample and sampling procedures, data collecting instruments and procedures and methods of data analysis.
In the data analysis for qualitative data the researcher intend to collect data first, organize the data and analyze it, code the data, create and interpret themes and descriptions (Creswell and Creswell, 2018). Through this, the data will be able to reflect the various trends that the researcher is looking for. Additionally, this will make it easier and more efficient to carry out the research. Qualitative data will be collected by the use of interviews (Course.ccs.neu.edu, n.d.). The interviews will be non-standardized and will be done face to face (Hakansson A, 2013). The questions will be semi structured to allow open ended questions and multiple choice questions (adapted from Saunders, Lewis and Thornhill, 2007). Such interviews will be used to survey issues of concerns to tourists and other hotel users from the manager‘s perspective to give an insight regarding luxury and consumer satisfaction. The survey also will give insight into the preferences of the accommodation facilities available as well as the desired ones (Austin and Sutton, 2015).
Some of the advantages that will favor the researcher to use the secondary data is due to it being cheaper than primary data. (Gail Joiner, 2018) someone else can also use the secondary data other the original researcher. It could be useful to do a qualitative research to understand customers preferences compared to other methods. Secondary data tend to be faster than the primary data and more power and convenient, which can help in getting broad question at a large scale. Having being clear with all those advantages of secondary data it will be better than using primary data which at time. Primary data will be so involving and will take a lot of time compared to the secondary data which is very easy and rapid. Looking at the disadvantage that comes with qualitative analysis, it is renowned to be subjective since its emphasis lies on meanings, and experiences among other things.
Since this paper will be reviewing a large pool of data concerning luxury hotels in the city, the data collection will majorly rely on secondary sources. Taylor, Bogdan & DeVault, (2015) state that secondary sources contribute in raising insight and giving background information need to meet the research aim. Secondary data will include the use of relevant sources such as academic articles and theoretical models to give insights and direction regarding the study objectives. This preference is advantageous for this research taking into consideration of time and credibility of the information collected from these sources. More so, Marshall, (2003) state that there is the depth of information that is difficult to capture in while using primary data. Additionally, there is a higher chance of obtaining s greater insight as compared to using primary data. Also, there is the probability of obtaining greater information which will be able to project the future of the industry.
In this chapter, there is a comprehensive summary of all the data analyzed together with the interpretations and findings. For instance, one research had 60 respondents though not all the respondents handed back their questionnaires at the end of the survey. This showed that the survey was successful with 93.4% of the population giving their views. Hence, according to Oakland (1986) such a survey is always good to proceed to the next step since it had more than the required 75% turn out. The study assessed the demographic characteristics of the respondents including gender, age, departments and their educational levels. (See the demographic table in the Appendix section).
In analyzing the data, a cross-sectional kind of survey was applied which made it possible in providing a holistic and an in-depth insight understanding that was much generalized in the search for the need to set up a luxury hotel brand in Nairobi-Kenya (Gupta, 2004). The most important thing with a cross-sectional design is that it gives room for a researcher to analyze different variables available at a given point of time in a particular population target.
The target study population was on the employees at Hilton hotel which is approximately
500. The focus of the entire research on the Sales, Room Operators, Marketing, and the Human Resource departments each with different number of permanent employees in the hotel. The main idea behind the choice of these departments is because they directly affect both the customer quality output, the hotel employee performance, and the quality expectations of incoming customers in the hotel (Austin & Sutton, 2015).
A sample is a group of objects, people, or items collected from a larger populace for measurement. The sample should be demonstrative of the people to ensure that we can simplify the findings from the study (Course.ccs.neu.edu. (n.d.). In particular, sampling is used to draw decisions about populaces from samples, we must use inferential figures, to allow for the determination of a population‘s features by straight observing one portion or sample of the population (Austin & Sutton, 2015).. Therefore, a population sample is obtained for a number of reasons as it is generally not applied.
A sample is anticipated to reflect the population in which it comes from, however, there is no assurance that any trial will be an exact representation of the population. Chance may decree that an uneven quantity of untypical remarks will be observed (Kb.wisc.edu. 2016). Therefore, a Sampling error can make a sample to be regarded with suspicion about the population. Sampling error encompasses the variances between the population and the sample that are due merely to the specific participants that have been carefully chosen (Kiplagat, Makindi & Obweyere, 2014).
The key cause of sampling error is that the error that arises is due to bad luck which may result in untypical selections. Uncommon units in a populace do occur and there is at all times a likelihood that an unusually large number of them will be selected. The main defense compared to this kind of error is to use a huge enough sample (Marshall, 1996). The sampling error may be owed to either chance or bias. The chance module which is at times also referred to a random error occurs no matter how cautiously the collection procedures are applied, and the lone way to lessen errors of chance-sampling is to choose an adequately large sample (Murgan, 2015).
The focus of the data search has been on the actual market for luxury hotels in Nairobi. The sample taken in consideration represent the 13% of the total (459) of Hotels with 5 stars. They have been selected by considering the region in which the hotels are located. A problem encountered during this search has been the presence of particular cases in which the price was exceptionally high, due the particular location. The city center stands above all of the other locations, as hotels in the former locations they can even have prices of six times higher than the average hotel prices of the other locations. Similarly, some areas in Mombasa has higher than average prices (Taylor, Bogdan & DeVault, 2015). The city of Mombasa has been excluded by the researcher, as their situation and target are different from the one investigated in this study. The other cases are trickier, as it has to be evaluated how much the price is affected by the popularity of the cities in which the hotels are the attractions of the above-mentioned city (both historical and secular), the presence of the ocean and the actual offer of the structure (Ness, 2015). Hotels in other large and famous cities, like Rome or Milan, have been in the average and have been included in the research. Even if hotels located in these cities may have less facilities, this is generally balanced by their central position.
3.5.2.1 Sample size
A study population should be first thought of before deciding on how large a population should be and who or what to include or exclude form the population (Creswell, & Creswell,
2018). Therefore, the sample size can be determined by a number of constraints for instance,
time constraints and the funds available (Kb.wisc.edu. 2016). The sample size relies on the nature of data analysis to be conducted, the anticipated precision of the approximations one desires to attain, the number and kind of contrasts that will be completed, the number of variables to be examined concurrently, lastly is how varied the experimented population is (Joppe, 2000).
3.5.2.2 Sample Size Determination
Various approaches are used to determine the size of the sample and the commonly used is the power of calculation which studies the influence of an examination of a hypothesis. Therefore, to use this approach clear information of what the researcher is examining should be put into consideration and whether it is gain at the completion of the research (Kb.wisc.edu. (2016).
Although the researcher would like to work with a larger population get credible information, the sample that will be used will be designed to meet manageable attributes in terms of time and financial resources (Saunders et al., 2016: 272). The sample the researcher intend to use is non-probability sampling since our population is selected on the basis of a known/visible characteristic (Lunenburg and Irby, 2008). Interviews will be done to various managers in the 5 hotel facilities that have been rated 5 star luxury hotels in the city (Murgan, 2015). Mangers from from Holton Hotel, Intercontinental Hotel, Kempinsky Hotel, Serena Hotel, and Sankara Hotel were interviewed.
Through the use of simple stratifies sampling, the research will be strategically targeted towards collecting a sample from the available 5 star rated hotels within the country. With this method, it will be easier to collect and understand the characteristics of the market as well as the consumer preferences. With this in mind, the division of the strata will help in better understanding the whole hotel industry in Nairobi. The researcher will also use some of semi structured forms of questions such as the success in land of different new clients an also strategic planning skills and strong supervisory skills (Murgan, 2015).
Population entails the entities to be researched (Marshall, 1996). In the case of this study, the research seeks to concentrate on 5 star hotel managers in Nairobi. From this population, the researcher intends to have at least three respondents from each of the hotel chosen population (Joppe, 2000). Collection of results from the interviews conducted will be non-standardized data, the data will be grouped and analyzed based on meanings expressed through words, and the analysis will be conducted through use of conceptualization to deduce the results of the research (Saunders, Lewis and Thornhill, 2012).
Since there is a limited number of hotels rated 5 star, there is a chance that the research will be able to concentrate and identify the ideal characteristics of an individual hotel. Additionally, the researcher will be able to collect information that is universally identifiable among the selected samples. Researching a population that has similar characteristics will be advantageous since it will help with identification of the challenges that all generally face the population. More so, this will make is cost efficient and effective to collect information in regard to the customer base and the strategies used by management in running the hotels. The small sample collected from the study will also help the researcher narrow down the objectives of the study, providing insight in the research.
Feedback from the interviews recorded by the five managers of the top five star hotels indicates that the demographic profile of the subject market area, specifically the population and household income levels, would support the establishment of a luxury hotel brand in Nairobi Kenya particularly due to the increased number of tourists and international conferences that are usually organized in the city. This research revealed that, depending on the source of the information, national trends in the convention center industry can be deemed either positive or negative. It is more relevant to analyze more localized areas when determining trends, particularly since reported national trends tend to overlook secondary or tertiary convention destinations such as Mombasa. However, one trend that appears to be generally consistent is that overall supply growth in the hotel industry has been outpaced by the overall demand growth in recent years, creating a more fiercely competitive environment
A survey research of potential demand for the proposed project from both association and corporate meeting was conducted on managers. Additionally, we conducted interviews with managers in order to determine the types of events that would be attracted to the proposed project in Nairobi. In general, the responses to our surveys resulted in a relatively low projected level of usage as compared to other surveys of this type. This indicates that a substantial marketing effort will be required to both counter negative perceptions and to then create competitive advantages versus other regional convention destinations. For example, the downtown historic attractions could be packaged to provide a reason for conventions and tour and travel groups to both come to downtown and to stay overnight.
Following are summaries of the results of these surveys.
Four of the managers indicated that their organization had used a hotel/convention/conference facility within the past five years for their meeting needs, primarily for trade shows and annual conventions. Of those 5 managers only the Hilton and Sankara Hotel managbers indicated that they had used a hotel/convention/conference facility located in Nairobi for international events within a year. The facilities they indicated using (both within and outside of Nairobi) were generally located in large metropolitan markets. Further, many of the destinations cited as favorable for their clients are located in warm weather areas to the south and west of the subject market area. Based on the survey feedback from the manager of Kempinsky Hotel, peak periods of demand for convention center utilization occurs between September and November, as evidenced by nearly 80 percent of the clients being recorded in. This indicated that their events occur within this time frame.
The following table details the average rating indicated by respondents to various factors as they relate to the selection of a Hotel/Convention/Conference facility. The range of rating levels was between zero (not important) and five (extremely important). As the data indicates, critical factors included air traffic accessibility, free (or low cost) parking, and availability of restaurant/nightlife options. As with many convention center facilities in downtown locations, availability and cost of parking is a significant factor with event coordinators and their constituents, and Nairobi must be proactive in addressing this issue so that it does not become a competitive disadvantage when marketing the proposed facility to potential demand sources.
Average Rating of Factors in Selecting a Hotel/ Convention/ Conference Facility | ||
Factor | Rating(0-5) | |
Air Travel Accessibility Roadway Travel Accessibility Major Market (i.e. Philadelphia) Free (or low cost) Parking Adjacent Hotel Local Culture Tourism Infrastructure Restaurants Nightlife – Bars/Clubs Anticipated Cost per Attendee | 4.3 3.2 3.5 4.0 2.7 2.8 2.8 3.3 3.9 3.0 | |
Note: 0 = Not Important, 5 = Extremely Important Source: PKF Consulting | ||
Table 1 Average Rating of Factors in Selecting a Hotel/ Convention/ Conference Facility
The following table summarizes projected annual usage data based on the results of the Interview.
Projected Annual Usage Data Associations |
Category Total |
Number of Annual Events 18.5 Average Attendance per Event 206 Total Annual Attendance 3,811 Annual Room Nights Generated 2,054 Average Length of Events (Days) 3 Average Convention Center Revenue per Attendee per Event (Excluding Hotel) $50.00 |
Source: PKF Consulting |
Table 2: Projected Annual Usage Data
As the previous table indicates, the responding associations indicated a total of slightly more than 2,000 room-nights of demand for 18.5 events with the Intercontinental Hotel manager recording the highest. We are of the opinion that this number could conservatively be tripled in quantity, to account for non-interviewed managers, invigorated marketing efforts and potential operator (Interstate)-induced referrals. This would result in more than 6,000 occupied room-nights attributable to associations, or approximately 6.0 occupancy points based on an annual available room inventory of 109,500 (300 guestrooms X 365 days annually). The primary reason for our projected increase is there were associations who indicated varying potential levels of usage of the subject Convention Center that either did not respond or indicated varying levels of room-nights required without quantifying that amount. Furthermore, the interview queried a finite number of associations, while through future marketing efforts, the Kenyan Country CVB could reach out to a broader population of associations.
Following is a summary of additional feedback with regard to the proposed facility in
Nairobi:
· According to the manager of Serena Hotel, a resort atmosphere is necessary to attract many of the associations surveyed.
The lack of resort elements (i.e. golf course, spa) in the proposed project are a competitive disadvantage, particularly with the presence of the Hershey Lodge and Convention Center in the region.
· The Hilton Manager indicated that there is a perception that Nairobi is an overly religious area, and this is a deterrent to potential attendees.
· The intercontinental Hotel manager on the other hand recorded that lack of clustered hotels in the Nairobi area is a competitive disadvantage, as it provides potential attendees with fewer lodging options. This is particularly important since the rates at the proposed Hotel are projected to be at the high end of the market.
· Generally all the managers recorded that the relative lack of flight accessibility (flight schedules and price) to and from Nairobi is a competitive disadvantage
The following table details the average rating indicated by the interviewees to various factors as they relate to their selection of a Hotel/Convention/Conference facility. The range of rating levels was between zero (not important) and five (extremely important). As the data indicates, critical factors included major market, air traffic accessibility, and availability of restaurant/nightlife options.
Average Rating of Factors in Selecting a Hotel/Convention/Conference Facility | |
Factor | Rating |
Air Travel Accessibility Roadway Travel Accessibility Major Market (i.e. Philadelphia) Free (or low cost) Parking Adjacent Hotel Local Culture Tourism Infrastructure Restaurants Nightlife – Bars/Clubs Anticipated Cost per Attendee | 4.2 2.5 4.5 2.7 3.0 2.1 2.0 3.9 4.2 2.4 |
Note: 0 = Not Important, 5 = Extremely Important Source: PKF Consulting | |
Table 3: Average Rating of Factors in Selecting a
3 of the 5 respondents indicated that the proposed facility in Kenya would probably take over the hotel industry. The following table summarizes projected annual usage data based on the results of the survey.
Projected Annual Usage Data |
Category Total |
Number of Annual Events 18 Average Attendance per Event 289 Total Annual Attendance 5,195 Annual Room-Nights Generated 2,365 Average Length of Events (Days) 2.5 Average Convention Center Revenue per Attendee per Event (Excluding Hotel) $60.00 |
Source: PKF Consulting |
Table 4: Projected Annual Usage Data
As the previous table indicates, the responding Managers indicated a total of more than 2,300 room-nights of demand for 18 events. We are of the opinion that this number could conservatively be tripled in quantity. This would result in more than 6,900 occupied room-nights attributable to corporate meeting planners, or approximately 6.0 occupancy points based on an annual available room inventory of 109,500 (300 guestrooms X 365 days annually). The primary reason for our projected increase is there were corporate managers who indicated varying levels of potential usage of the subject Convention Center that either did not respond or indicated varying levels of room nights required without quantifying that amount.
Following is a summary of additional feedback with regard to the proposed facility in
Nairobi:
· A resort atmosphere is necessary to attract many of the associations surveyed.
The lack of resort elements (i.e. golf course, spa) in the proposed project are a competitive disadvantage, particularly with the presence of the Sankara and Serena Hotels in the region.
· The location in a major market, and the resulting presence of abundant options for dining and entertainment, is a major need to attract corporate groups.
The term luxury has been used by many scholars to describe the individual urge to gain self-actualization and self-fulfillment that is tied to the greater appreciation of beauty, sophistication, culture, art and the general attributes of the services (Chu, 2014). Other scholars have linked luxury with characters of prestige, quality, the elite status that increases pleasure and exclusive wellness (Pavione et al., 2016). In this thought, luxury hotels have been linked to superfluity product features which entail the attributes of the service or the quality of décor of the hotel as well as its services (Chu, 2014). Additionally, Chu (2014) indicates that luxury orient more on customer experience than it does for the product offered. In that respect, the focus is put on comfort, services, and style as critical parts in guest experience (Chu, 2014).The market analysis has started from the general situation of Luxury good market and its trending.
According to one of the interviewed manager, most of the hotels in Kenya have faced increasing demands from customers due to the unique services they offer. In essence elegance ambiance and class as well as the quality of services offered in hotels become major distinguishing factors that guarantee hotels competitive advantages (Ayodo, 2015). In Kenya, a hotel with a high level of ambiance, and quality services, as well as classy amenities, is referred to as the five Star hotels (Tsuma, 2015). The said attributes form the basis of luxurious hotel brands in Kenya. In another study, Chu (2014) indicates that luxury hotel brands are preferred by the customers due to their ability to provide services out of customer‘s lifestyles fantasy. In this respect, the Hilton Hotel manager noted that the provision of high-end guest experience and customer satisfaction becomes a critical focus in the establishment of luxury hotel brands (Chu, 2014).
In the next few years consumption is expected to be led by millennials, whom, in Kenya, are expected to carry out 45% of the total purchases. However, relevant data also depicts an increase in confidence of the older generations that are expected to intensify their purchases and hotel preference in the future years. Particularly the area of Nairobi, is hilly, and shares several characteristics with Eldoret town, so due to the underdevelopment of the Mombasa‘s territory it was considered useful to see also investigate data on Nairobi‘s tourism. Therefore, the growing of international tourism, mainly from extra European countries, is particularly favorable for upper–middle class and luxury accommodations. The presence in 5 stars hotels had grown by as much as 16% in 2013, having relatively “decelerated” in 2013 (6,5%), their growth rate went up to 11,8% in 2015. Growth was particularly relevant in the rural and hilly areas, with an increase of 20%. The overall market situation is extremely positive and makes it advisable to invest in Luxury tourism industry in Nairobi-Kenya.
An interesting, although foreseeable data is the superiority of the emerging businesses, in Britain, America and United Arab Emirates whereby most successful entrepreneurs have reported to spend more time in new markets compared to the time they spend in mature markets. In addition they portrayed the fact that almost half luxury purchases are done while abroad, again particularly for tourists from emerging markets, which account for about 70% of purchases during a travel. In addition, the luxury market is predicted to grow at an annual rate of 4-5% at least until 2025, and Nairobi is staged to be among cities that would record a significant development rate in Africa.
In essence, a competitive advantage arises when different business entities offer the same products, and the uniqueness is attained by making such services or products more efficient (Tsuma, 2015). However, according to Benedictor (2012), a competitive advantage includes unique attributes that an organization may have to offer its rivals and that it allows the organization to have a substantial ground in the industry. The same has been echoed by Pavione et al., (2016) as they describe luxury brands as a combination of extremely differentiated services that are characterized by excellent quality and uniqueness. In that respect, Tsuma (2015) indicates that a business entity especially a hospitality enterprise needs to produce the greatest relative advantage to keep up with its competitors. The notion of competitive advantage indicates that organizations need to increase product specialization to enhance the advantage. In this respect, luxury and the provision of high-end quality services in the hotel industries would work as a critical remedy in the establishment of the hotel’s competitive advantage (Tsuma, 2015).
Branding in the hotel industry is a relevant factor in developing consumer trust as well as solidifying customer‘s loyalty (Kumar et al., 2017). Branding a hotel to features that are oriented to luxurious attributes has been seen to attract consumer as such brands are perceived to be of quality services as well as of high customer satisfaction (Cheng and Hsu, 2013). Additionally, Kumar and colleagues (2017) observe that quality perceptions that are associated with luxury brands contribute to 25 percent of the successful operations of the hotel.
The development of luxury hotel brands is essential in changing the views and customer loyalty in case of the hospitality industry (Machin & Thornborrow, 2003: 454). Nassar (2017) asserts that the benefits of luxury branding include customer loyalty which leads to increased profit margins. Other benefits linked by the adoption of luxury hotel branding is the improved market share efficiency in competition (Nassar, 2017). The essence of branding also is recognized in claiming market share in the international market and thus such hotels get an opportunity to dominate the industry (Nassar, 2017). Additionally, travellers prefer using branded facilities as compared to independent hotel facilities.
Although, luxury brands have been linked with upgrading infrastructures as well as bring high-end equipment in the hotel, human resources have been identified as another critical feature of these hotels (Khuong, et al., 2015). In the same sense a study carried out by Khuong and colleagues (2015) found that skills and relevant talents are critical in luxury brands as they guarantee improved standards of service delivery. As such, the five star hotels would require inputs from employees with elegant and subtle manner in service delivery (Khuong, et al., 2015).
In another case, brand image of the hotel has been associated with increased influence especially when centered on uniqueness and heterogeneity of the products or the service offered (Rust, Moorman, & Dickson, 2002). In essence, a brand image which carries the attributes of the products and services offered by an organization forms a critical point of reflection in consumer memory leading to repurchasing (Lahap, et al., 2016). In the same aspect, the study carried out by Lahap and colleagues (2016) indicated that the image created by the brand is critical in changing or influencing customer satisfaction in the hotel industry.
Customer satisfaction entails the ability of the business to create value for its customer as well as managing customers’ expectations (Gunarathne, 2014). In essence, the firm demonstrates this by satisfying the needs of their customers. Quality of services has been linked closely with customer satisfaction, and therefore the service offered by the firm becomes critical factors of consideration (Gunarathne, 2014). Additionally as observed by Mousavai, et al., (2015), customer satisfaction is the degree of fulfillment customers get from the services offered and that this fulfillment encourages repeat purchases. Therefore, the achievement of a competitive advantage depends on the quality of services offered by the hotel and their impact on customer retention. The quality of services is considered to be imperative in affecting the consumer satisfaction since the fulfilment is experienced after service delivery (Watiki, 2014).
The hospitality industry is among the service industries experiencing challenges in providing effective and efficient customer services (Benedictor, 2012). The efficiency of customer services, in this case, guarantees the relevance of a hotel or a hospitality enterprise to remain in the industry (Benedictor, 2012). As such, therefore, customer services become an essential part of building up the competitive advantage of the service industries in Kenya. Additionally as noted by Kumar, et al., (2017), in the contemporary world guest are enticed by consistency and quality hotel services that are in most cases offered by the luxury hotel brands across the globe. Such services have been linked to increased customer satisfaction as well as client preferences. In the same aspect, increased levels of guest satisfaction have been noted to increase revenues per hotel room (Kumar et al., 2017). The satisfaction, in this case, indicates that investment in luxury hotel brands guarantees returns on investment.
Benedictor (2012) indicates that customer experience is changing drastically and has become a relevant point to be considered in giving both the established hotel and the upcoming hotels an opportunity for customer retention. In this respect, luxury seems to be the key to keeping up with the changes and advancement of consumer needs (Perry, 2014). Additionally, service industries including the hospitality industry are keenly focusing on consumer satisfaction which seems to be essential in establishing loyalty as well as acting as a competitive advantage (Benedictor, 2012). On another account, Burke & Hanley (2009) indicate that the existence of hotels relies on its ability to offer quality services as a unique competitive advantage.
The notion of customer loyalty has been described as the repeat purchases for a certain brand as well as positive comments regarding the brand and its services (Mousavai, et al., 2015). This form of loyalty has been linked to increased quality of services offered by the firm as well as the treatment given to the customers (Mousavai, et al., 2015). Customer loyalty also has been linked to attitudinal change that make them desire to give positive feedback that can support the brand (Mikkonen, 2017).
Perceived quality is defined as overall consumer judgment about the quality, superior and excellence services offered by a firm (Nassar, 2017). In this line of thinking, therefore, the development of a luxurious hotel brand or the adoption of one would increase consumer quality perception about the hotel. For instance, intrinsic attributes of a certain brand which includes the physical appearance of the hotel bring a sense of excellence which later increases consumer preferences regarding the brand (Nassar, 2017).
Due to the increased requirement of competitiveness in the hospitality industry and the increased growth in the same, offering high quality products as well as delivering quality and effective services is critical. Thus, the company needs to come up with the following cost advantage strategies in order to ensure their competitiveness. Firstly, these include cost leadership, differentiation and the focus on the niche strategies (Molina-Azorín et al., 2015). The cost leadership strategy will ensure that the company will be able to maintain its quality service delivery while at the same time making sure that they are offering these services at a lower cost as compared to the competitors (Pereira-Moliner et al., 2016). Secondly, the differentiation strategy will ensure that the company is delivering services that are of a higher value to the customers in relation to what the competitor is offering. Thirdly, is the niche, where the company should be able to deliver precise service that uniquely suited to a certain group of consumers (Pereira-Moliner et al., 2016). Through this, the target customers will be able to enjoy great services that are customized to their needs and wants.
This cost in service delivery is affected by the adoption of technologies that the business has invested in. However, these technologies also play a critical part when it comes to identification of the scope of competitiveness (Pereira-Moliner et al., 2015). Moreover, this will help the company align its services to the competition and help in its expansion. One of the main advantages that are associated with competitive advantage is its ability to help the business implement its strategies effectively. This enables the company to create high value to the customers in the market as well as gain an edge over the competitors. In the modern world, organizations have resolved to the focus on the customer needs and the ability to meet the needs
of the stakeholders making it necessary to understand the key drivers of the competitive strategies in the market.
This competitive advantage can be implemented through a number of strategies that include the capability of setting up an effective organizational culture, internal and external complexity as well as the ability to value the needs of the customers in the market (Molina- Azorín et al., 2015). Some of the common strategies which contribute to the capability of gaining a competitive edge include structural changes, the ability to make the right market approach, empowerment of the customers, use of the correct technology and the improvement of the processes and systems in the organization.
Nairobi as a tourist destination has been faced with calls to rebrands its hospitality facility to meet a global competitive advantage (Guguyu, 2015). According to James (2018), the city has been experiencing growth in tourism influx which is also attracting global hospitality brands. In this case, therefore, the establishment in this city needs to be upgraded to compete with the upcoming facilities. Additionally, Nairobi is projected to be one of the most established regional hub in East Africa which would mean strategically placing the city in demand for accommodation and conference facilities that meets global hospitality brands standards. Additionally, an article by the Business Today Correspondent (2018) has acknowledged that city is undersupplied in terms of luxury hotels and therefore making it significant concerns for the international hoteliers.
According to a report by the Knight Frank Hotels Africa (2018), Most of the cities in East Africa including Nairobi are experiencing reduced supply of rooms and increase demand of the international-grade hotel facility as they form essential hotspots for business activities (BT Correspondent, 2018). Due to the time factor involved in establishing the attributes of a luxury hotel brand, most of the hotel developers are opting to rebrand and the existing one to meet with increasing demands while adhering to the standards (BT Correspondent, 2018).
Just as mentioned in advance, the advantages of starting a business in Nairobi-Kenya starts with a good road network especially from the airport in addition to the beautiful location within the city with a number of gastronomic amenities everywhere (BT Correspondent, 2018). Considering the above mentioned factors on the positioning of Nairobi, it is appropriate to start a luxury hotel brand with high possibilities of succeeding.
Below are a number of guest segments which are in one way or the other pertinent to the deliberate luxury hotel brand:
Business Travelers
These group plays a great role in the proposed luxury hotel brand due to the fact that they generally occupy a large mark as far as the Nairobi market share is concerned (Guguyu, 2015). Additionally, the presence of almost all the company headquarters in Nairobi contributes to the need for a high class luxury hotel brand where high profile officials can enjoy their stay at night at during their free moments away from work (Kangthe, 2014).
Individual tourists.
The silent area of the hotel as well as the various cooking facilities around the area should be attractive to the possible group that is targeted (Dominici & Palumbo, 2013)). Additionally, the choice of feeling the Kenyan life can be of importance to this section. An expectation of this section resenting a large part of the hotel‘s guest mix, subsequent to the travellers.
Tourists groups
Hotels are strategic in the expensive market where an assumption should entice the tourists as well as they would request in Nairobi is rising where the hotel that is planned to have a good value of price which is found to be rare in Nairobi (Kangthe, 2014).
Guests of incentive travellers
The limited number of congresses and fairs that are held in Nairobi, the segment will characterize a low number of enticement or incentive travellers which will not be of significance to the hotel project.
An important variable that could affect the relevance of the data is the location of the structure, for this reason hotels have been evaluated by considering if they were in a city of interest, near a mountain, on the hills or by the sea (Kangthe, 2014). In general, the most important characteristics have been considered, for example a Hotel in Nairobi has been considered as in a city. Cases that deviate from this analysis have been one, because this hotel had both the attractiveness of the beautiful seaside and interesting ruins that could attract tourist
(Gicobi, 2016). As for Nairobi there it is neither a city of interest, nor in front of a beach, however, these findings will not affect the results in a nullifying way.
Hotels in mountain areas, where is possible to ski, are expected to rise their prices in the winter season, as they will add an attractive feature for their customers. However, as the survey has been done in August, during this month these hotels and their locations have characteristics very similar considering what could attract people, landscape and available facilities (Hunt,
2014). Therefore, data related to these hotels has been considered extremely useful for the research.
The research also analyzed the main facilities that attract people, mainly taking into account what could be offered by the Religious foundation to improve customer satisfaction and retention (Kim, Vogt & Knutson, 2015). An important facility that has been considered, is the presence of an external or internal swimming pool (which resulted extremely popular among hotels). In addition, non-seaside structures (and several seaside hotels) have a spa, either included in the reservation price or by paying an extra charge. As an additional option lot of hotels gives the possibility of massages, but, as this was almost a constant service (always if there were a spa) and offered by additional charge (Kumar, Gargn& Sangaran, 2017). It has not been considered as a variable in this study. Other activities that could be done in the proximity were considered, excluding sea related activities, these activities include hiking, cycling, horse riding and golf playing.
Local food and drink production are considered as a relevant an attractiveness for a territory and this is considered as a strength point for Nairobi. Therefore, Eno gastronomic, which could be defined as food and wine tourism, have been considered in the research. Because of the importance of culinary culture in Italy, all hotels have been taken as equivalent despite the region they are in (Mikkonen, 2017). The presence of an included restaurant, preferably with high cuisine or local products, has been checked, but due to the almost constant presence of an included restaurant, this feature has not been considered in the research (Mousavai et al., 2015). While an offer of wine was part of all restaurant menus, the presence of a wine cellar was not as frequent, as considering that Italian wines are internationally well-known and appreciated, it has been considered as a relevant variable that should be included in the research.
