SEASONALITY AND CONSUMER TRAVEL BEHAVIOUR AND THEIR IMPACT ON THE PERFORMANCE OF STAR-RATED BEACH RESORTS IN THE COASTAL REGION OF KENYA

Abstract

ABSTRACT The hotel sector is considered to have a bright vision for the growth of the travel and tourism industry by providing the country’s economic growth. Kenya’s beach resorts are among the best tourist destinations across the world. Despite increased efforts by the Government of Kenya and stakeholders to make beach resorts a driving force in achieving the national economic growth and development, seasonality and consumer travel behaviour have continued to be a major challenge in the industry. This has resulted to poor performance due to seasonal fluctuations in the volume of business with each season associated with different expectations and demands. The main objective of this study, therefore, was to assess seasonality and consumer travel behaviour and their impact on performance of star-rated beach resorts in the coastal region of Kenya. Specifically, the study sought to determine the relationship between seasonality and performance of star-rated beach resorts; to examine the relationship between consumer travel behaviour and performance of star-rated beach resorts; to evaluate the mediating effect of management strategies on the relationship between seasonality and consumer travel behaviour and performance of star-rated beach resorts; to assess the moderating effect of leadership commitment on the relationship between seasonality and consumer travel behaviour and performance of star-rated beach resorts and to assess the moderating effect of socio-cultural factors on the relationship between seasonality and consumer travel behaviour and performance of star-rated beach resorts. The study used cross-sectional survey design with questionnaires and interview schedule as research instruments. The respondents of the study were 23 managers and 586 randomly selected guests in all-star-rated beach resorts in the coastal region of Kenya. Multiple linear regression analysis was used to test the impact of seasonality and consumer travel behaviour on the performance of star-rated beach resorts as well as to test the moderating effects of leadership commitment and socio-cultural activities on star-rated beach resorts performance. Stepwise regression approach was used to test the mediating influence of management strategies on star-rated beach resorts performance. Seasonality was observed to have a significant negative impact (β = -9.69, p-value = 0.02) on performance of star-rated beach resorts. Consumer travel behaviour was observed to have a significant positive impact on the performance of star-rated beach resorts (β = 5.32, p-value = 0.01). Strategies used to manage impact of seasonality and consumer travel behaviour were observed to have a significant mediating influence on the relationship between seasonality and consumer travel behaviour and performance of star-rated beach resorts (β = 1.807, p-value = 0.025). Leadership commitment was also observed to have a significant moderating influence on the relationship between seasonality and consumer travel behaviour and performance of star-rated beach resorts (β = 0.79, p-value = 0.005). Socio-cultural activities with effective moderation aspects on the relationship between seasonality and consumer travel behaviour and performance of star-rated beach resorts ranged from leisure, holidays, meetings, incentives, conferences and events. Based on the findings, the study recommended that beach resort managers should enhance the three effective marketing strategies (market diversification, price differentiation, improved service quality and product diversification) to manage impacts of seasonality and consumer travel behaviour on the performance of star-rated beach resorts. Beach resort managers should continue improving on leadership commitment as they were found to be viable in handling impacts of seasonality and consumer travel behaviour so that they can gain competitive advantage and remain relevant in the industry. Finally, The Government of Kenya and other tourism stakeholders should enhance coastal beach ambience through setting up viable beach cleaner up policies to attract more consumers