Effect of Customer Relationship Management Strategy on Customer Behaviour in the Hotel Industry in Kenya: A Case Study of the Nairobi Safari Club

Abstract

Customer Relationship Management is a technique that innovative companies and sectors find useful in addressing business challenges such as competition and especially in improving their interaction with customers, and thus influencing their behavior. The hotel industry is highly competitive with every organization trying its best to attract and retain a large customer base. On the other hand, Kenya is facing challenges in attracting domestic and foreign tourists due to the recent insecurity incidences. Further, some countries, such as United Kingdom and United States of America, which account for a high percentage of tourists in Kenya, have issued travel advisories on Kenya to their citizens. This poses as a major challenge for the hotel industry. Therefore, this study is motivated by the need to enhance CRM strategy so as to ensure that hotels remain in business despite the various drawbacks that may work against them in the current environment. The purpose of this research was to examine the effect of Customer Relationship Management strategy on Customer Behaviour in the Hotel Industry in Kenya with specific reference to Nairobi Safari Club Hotel. The specific objective of this study was: to establish the effect of utilizing information technology on customer behaviour in the Nairobi Safari Club hotel. The study adopted case study research design and targeted customers and employees of the hotel. The study used stratified random sampling technique to select respondents that participated in the study. A sample of 72 respondents was selected. A semi-structured questionnaire was used to obtain information from the respondents. The questionnaires were administered through drop and pick method. The data generated by questionnaires was checked, edited organized and coded by computer to reduce the mass of data obtained into a form suitable for analysis. The coded data was then analyzed using Statistical Package for Social Science Programme. The research findings revealed that there is a significant positive effect of CRM strategy on customer behaviour. Utilization of ICT, largely influenced customer behaviour at Nairobi Safari Club. Based on the study findings the following specific recommendations are given: Invest in ICT system that allows efficient real time customer interaction; and develop a feedback mechanism to manage communication with key customers and management.