Electronic Customer Relationship Management and Performance of Star rated hotels in Kenya

Abstract

ABSTRACT Hotels are striving to build and maintain stronger ties with their clients, and they are also operating in a very competitive climate. Since hotel owners have realized the im-portance of customers and their beneficial impact on the hotel's performance, they are willing to make a focused investment in the field of electronic Customer Relationship Management (e-CRM.) The goal of this study was to look into the relationship be-tween e-CRM and hotel performance in Kenya. The study aimed to provide insights into the e-CRM used by Star rated hotels in Kenya, for hotels to achieve competi-tiveness and improve performance. Specifically, to assess the relationship between e-personalization and the performance of Kenya's Star rated Hotels, and to determine the relationship between electronic service quality and performance of Star rated ho-tels in Kenya. In addition to determining the relationship between electronic technol-ogy infrastructure and performance of Star rated hotels in Kenya, assessing the rela-tionship between electronic innovation and performance of Star rated hotels in Kenya and determining the relationship between electronic customer relationship manage-ment dimensions and performance of Star rated hotels in Kenya to investigate the moderating effect of hotel location on the relationship between e-CRM and perfor-mance of Star rated hotels in Kenya. The study was influenced not only by the hotel industry's poor performance over the last two decades, but also by the mixed results and contentious debate over the effect of electronic customer relationship manage-ment strategies such as e-personalization, e-service quality, e-technology infrastruc-ture, and e-innovation on performance. This study employed cross sectional research design, the population was 112Star rated hotels in Kenya, this was a census study. A structured questionnaire was used to collect data from key managers involved in strategy formulation and implementation. Out of the 112 questionnaires distributed, 90 were returned and found to be usable, representing an 80 percent success rate for this type of research. Correlation analysis was used to perform inferential data analy-sis. Multiple and simple regression analysis were used to fit regression models, and standard F and T tests were used to test hypotheses. According to the findings, e-CRM, as measured by e-personalization, e-service quality, e-technology infrastruc-ture, and e-innovation, was significant and positively related to hotel performance. However, hotel location was not found to be a moderator of the relationship between e-CRM and performance of Kenyan Star rated hotels in Kenya. The study confirms that hotel location is neither a prerequisite nor a factor in the successful implementa-tion of e-CRM in Kenya's Star rated hotels in Kenya. The study advocated for e-personalization when interacting with customers via electronic and social media plat-forms. Based on deliberate high e-service quality processes in hotels, increased im-plementation of e-technology infrastructure, and ensuring e-innovation of their prod-ucts and procedures in hotels. The study’s conclusions and recommendations are that e-CRM significantly affects firm performance in developing countries and they should be implemented in businesses.