The Role of Customer Relationship Management Dimensions on Customer Loyalty in the Hotel Industry in Kenya Maureen Adhiambo

Abstract

Customer Relationship Management (CRM) dimensions are business strategies designed to reduce costs and increase profitability by solidifying customer loyalty. With intense competition among hotels, this study sought to establish whether CRM dimensions in the selected hotels and lodges influence customer loyalty in the hotel industry in Kenya. The main objective of this study was to establish the role of customer relationship management dimensions on customer loyalty in the hotel industry in Kenya. The study used the mixed method, non – experimental cross-sectional survey design because it accorded the researcher an opportunity to capture data from the respondents at a point in time and showed the significant associations among variables. The target population was 147 hotels and lodges listed in the Kenya Association of Hotel Keepers and Caterers (KAHC) Guide 2015. The study opted to study all the listed hotels and lodges thus employing a census approach. The respondents comprised of the 147 customer relationship managers or their equivalent in the 147 hotels and Lodges. The study used a semi - structured questionnaire for data collection. Qualitative and quantitative techniques were used to analyse the data. The results revealed that there was a relationship between technology infrastructure, service quality, customer orientation and customer loyalty. The findings indicated that the hotel industry had effective though not sufficient technology infrastructure. The hotels and lodges had effective reservation systems and the employees had adequate knowledge on how to use the systems. The findings also showed that the employees were customer oriented, handled the customers well and served them at the promised time. The correlation between personalization of services and customer loyalty was found to be positive but statistically insignificant. The study concluded that customer relationship management is an important factor in achieving customer loyalty in the hotel industry. The study recommends that the government and the hotel management to ensure that the hotels are upgraded with modern technological facilities, standardization of the training curriculum for service providers in the hotel industry and come up with well - defined loyalty programmes. The study proposes that future research should be extended to financial and educational institutions whose CRM issues closely relate to those of the hospitality industry.