Marketing Crisis Management and Hotel Performance: Evidence from Hotels in Mombasa County, Kenya

Abstract

Purpose: Tourism is crucial in driving economies and preserving cultural heritage worldwide. The sustainability of tourist destinations depends on their ability to effectively manage and recover from marketing crises that can damage their attractiveness and reputation. Despite the allure of tourist destinations, they are susceptible to various marketing crises, challenging their hospitality industries and local economies. These crises can disrupt visitor flows and tarnish reputations. This study explored the impacts of marketing crisis management practices on hotel performance in Mombasa County, Kenya, within a global context of vulnerable tourist destinations.
 Methodology: This study employed partial least squares structural equation modeling (PLS-SEM) embedded in the causal-comparative research design to explore the relationship between marketing crisis management practices and hotel performance. Data were collected through questionnaires distributed to management staff in 18 star-rated hotels in Mombasa County. Confirmatory composite analysis (CCA) validated the measurement models, and demographics were considered as potential influencers on the relationship. Data were presented in Table format and interpreted using percentages.
 Findings: The findings revealed that communication and public relations (β = 0.417, p < 0.05), marketing strategy adjustment (β = 0.336, p < 0.05), and reputation management (β = 0.186, p < 0.05) significantly and positively affected hotel performance. The three combined practices explained 75.1% of the variance in hotel performance. Based on these findings, hotels in Mombasa County and the broader Kenyan hospitality industry must prioritize effective communication and public relations, agile marketing strategy adjustment, and proactive reputation management as integral components of their crisis management strategies to enhance resilience, foster customer loyalty, and maintain competitiveness, especially in times of crises, such as the ongoing COVID-19 pandemic.
 Recommendations: Effective communication and public relations positively impact hotel performance by fostering emotional connections, repeat business, and positive reviews. Dynamic marketing strategy adjustment enhances resilience and adaptability, attracting safety-conscious and adventurous travelers. Reputation management safeguards trust, credibility, and customer loyalty, mitigating negative perceptions during crises. Combining these practices contributes to substantial positive impacts on hotel performance.