SERVICE INNOVATION AND HOTEL BUSINESS PERFORMANCE IN PORT HARCOURT

Abstract

This study investigated the relationship between Service Innovations and Hotel Business Performance in Port Harcourt. Four Objectives and four Research Hypotheses guided the study. The accessible population of this study was drawn from the Customers of 10 selected Hotels in Port Harcourt. A sample size of 246 respondents was drawn using Freud and William’s Formula. The study adopted a descriptive Survey Design. Face and Content validity were employed to assess the relevance of the instrument while Cronbach Alpha Statistics was used to determine the reliability of the instrument. The Research Questions were analyzed using descriptive statistics while the Null Hypotheses were statistically tested using Pearson Product Moment Correlation Coefficient with the aid of Statistical Package for Social Services (SPSS) version 22. The findings showed that New Value System had a positive Correlation with Effectiveness and Sales Revenue (r = 0.751; p=0.000; p < 0.05), (r = 0.862; p=0.000; p < 0.05). New Technological Service Delivery System had a strong Correlation with Effectiveness and Sales Revenue (r = 0.726; p=0.000; p < 0.05), (r = 0.863; p=0.000; p < 0.05). Based on the findings, we concluded that Service Innovation is a determinant of Hotel Business Performance in Port Harcourt. Being a service industry, New Value System and New Technological Service Delivery System would contribute immensely to Hotel Business Performance in Port Harcourt. Therefore, our recommendations were: There should be a department solely responsible for welcoming and taking care of new customers. Warm welcoming and receptions should be given to new customers in the Hotel Industry. Promo packages should be organized for new customers to gain a competitive advantage.