Mediation Role of Revenue Management Practices on the Linkage between Hotel Determinants and Financial Performance of Hotels in Kenya ()
ABSTRACT
The study aimed at investigating the mediation role of revenue management
(RM) practices on the linkage between the internal and external hotel
determinants and the financial performance of hotels in Kenya. The study used a
quantitative approach adopted a cross-sectional survey research design. The
study sampled 225 revenue managers from all-star-rated hotels in Kenya. Data
were collected by use of a questionnaire. The findings revealed that, there was
evidence of RM practice in hotels (M = 2.44, SD = 0.671) and that the
application of RM has some impacts on the financial performance of hotels (M =
3.35, SD = 1.05). Further, the finding revealed a direct relationship between
internal and external hotel determinants and financial performance of hotels (R
= 0.457, Sig. < 0.05). And an indirect relationship between the internal and
external hotel determinants and RM practices (R = 0.478, sig. < 0.05), and
further, RM practices and financial performance of hotels (R = 0.751 sig. <
0.05). The finding concluded that RM practices mediate the relationship between
internal and external hotel determinants and financial performance (R = 0.759,
sig. < 0.05). The beta value for internal and external hotel determinants
that was initially (0.457) (in the direct relationship) reduced to (0.127)
after introducing RM practices as a vector mediator. The result shows that
there is partial mediation, meaning that RM practices partially mediate the
relationship between internal and external determinants and the financial
performance of hotels. The findings recommend that hotels should enhance the
adoption of RM practices to reduce the negative impacts of determinants and aim
to contribute to hotels’ financial performance. The research adds to the body
of empirical evidence for revenue management and financial performance
conceptualization and description. The findings can aid in the
conceptualization and advancement of future studies on hotel revenue
management.
Share and Cite:
Murimi, M. , Wadongo, B. and Olielo, T. (2021) Mediation Role of Revenue Management Practices on the Linkage between Hotel Determinants and Financial Performance of Hotels in Kenya.
Open Journal of Business and Management,
9, 1805-1835. doi:
10.4236/ojbm.2021.94098.