A

Project Report

On

STRATEGIC RESPONSE ON SEASONAL FLUCTUATIONS

WITHIN THE HOTEL AND TOURISM INDUSTRY: A CASE
OF HYATT GROUP OF HOTELS
Submitted in Partial Fulfilment

For

The Award of degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Under The Guidance Of: - Submitted by: -

Dr. Manoj Kumar Meet Abhinav Kumar

Associate Professor Roll No.: - 23RU23002
ASOM ASOM
Raffles University, Neemrana Raffles University, Neemrana

2024
 A

Project Report

On

STRATEGIC RESPONSE ON SEASONAL FLUCTUATIONS

WITHIN THE HOTEL AND TOURISM INDUSTRY: A CASE
OF HYATT GROUP OF HOTELS
Submitted in Partial Fulfilment

For

The Award of degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Under The Guidance Of: - Submitted by: -

Dr. Manoj Kumar Meet Abhinav Kumar

Associate Professor Roll No.: - 23RU23002
ASOM ASOM
Raffles University, Neemrana Raffles University, Neemrana

2024
 STUDENT’S DECLARATION

I, Abhinav Kumar, Enrollment No. 23/0005, MBA(3rd Sem) at Alabbar School Of

Management, Raffles University, Neemrana, hereby declare that the undersigned, declare
that this is my original work and has not been submitted to Raffles University

Signed: Date:

Abhinav Kumar (Roll No. -23RU23002)

This project has been presented for examination with my approval as the appointed
supervisor.

iii
 GUIDE CERTIFICATE

This is to certify the dissertation report title “STRATEGIC RESPONSE ON SEASONAL

FLUCTUATIONS WITHIN THE HOTEL AND TOURISM INDUSTRY: A CASE OF
HYATT GROUP OF HOTELS” has been complete by Abhinav Kumar Roll No.
23RU23002, under the supervision. He is a student in the 3rd Sem of the Raffles University to
be best of my knowledge this work is original.

Signed: Date:

Dr. Manoj Kumar Meet

iv
 ACKNOWLEDGEMENT

I hereby acknowledge the support of My Boss Mr. Ambitash Sir who stood by me
throughout my studies and for their unending support. Thank you for believing in my
abilities from the onset. You encouraged me and ensured that I did my best especially
during those times when I felt unsure of the way forward. You are a rare gem that becomes
more valuable each day. I appreciate you and may God bless you.

I take this opportunity to sincerely thank everyone who supported me throughout this
journey my deepest appreciation goes to Director Dr. Sanjeev Kumar (HOD, Dept.
Alabbar School of Management for his invaluable guidance unwavering support insightful
suggestion and timely encouragement during this preparation

I extend my sincere gratitude to Dr. Manoj kumar Meet for his guidance and support in
preparation of the research project. Without your constant guidance, I would not be able
to do this. I acknowledge the support from Hyatt Hotels and all its employees who took
time to participate in this survey. I am indebted to you for without your genuine support,
this study would not be possible.

My project involved the contributions of many individuals at various stage and I am

thankful to all who played a part, whether directly or indirectly in its success.

By Abhinav Kumar

v
 ABSTRACT
Seasonality is a universal factor in tourism and has often been viewed as a problem,
particularly in economic terms. As tourism has grown from a small element in global
development to one of the major forces of economic and social development throughout
the world, the desire to ensure destinations have a year-round tourism industry rather than
a small seasonal activity has become stronger. However, despite many and varied
attempts to achieve this goal, few destinations have managed to secure year round
tourism.

The purpose of this study was to determine the responsive strategies used by Hyatt hotels
during times of seasonal fluctuations. The study was guided by the following research
questions; What are market innovation strategies used by Hyatt Hotels during seasonal
fluctuations? ;what are service and product based strategies used by Hyatt Hotels during
seasonal fluctuations?, what are operational based strategies used by Hyatt Hotels during
seasonal fluctuations? And lastly what are human resource strategies used by Hyatt
Hotels during seasonal fluctuations.

Descriptive research design was used for this particular study, a population of 261
employees working for Hyatt Group of Hotels was used to draw a sample of 104
respondents. The study used a questionnaire to collect primary data from the respondents.
Data analysis was done using both descriptive and inferential statistics. Descriptive
Statistics analyzed frequencies and percentages and inferential statistics analyzed
correlation and regression analysis. The findings were presented using tables and figures.

The first research objective sought to determine the market innovation strategies and
response to seasonal fluctuations at Hyatt Hotel. The findings of the study revealed that
there is a significant relationship between market innovation strategies and seasonal
fluctuations response, r (0.680); p-value < 0.01. The second research objective sought to
determine product and service strategies and seasonal fluctuation response. The findings
of the study revealed that there is a significant and statistically significant relationship
between product and service based strategies and seasonal fluctuations response, r
(0.592); p-value < 0.01.

vi
The third research objective sought to determine operational based strategies used in
seasonal fluctuations response. The findings of the study revealed that there is a
significant relationship between operational based strategies and seasonal fluctuations
response, r (0.579); p-value < 0.01. The fourth research objective sought to determine
human resource strategies used in seasonal fluctuations response. The findings of the
study revealed that there is a significant relationship between human resource strategies
and seasonal fluctuations response.

This study concludes that there exists a significant a relationship between market
innovation strategies and response to seasonal fluctuation. This study concludes that
market efforts are essential in meeting revenue targets as well as hotels through
advertisement of service packages. This study concludes that there exists a significant and
positive relationship between product and service-based strategies and response to
seasonal fluctuation. Product and service-based strategies is essential in developing
accommodation attributes that increase the stay of customers in the hotel. This study
concludes that product extension is essential for extending high peak season for the hotel
by offering different products and service in the hotel.

This study concludes that there is a positive relationship between operational based
strategies and response to seasonal fluctuation. This concludes that operational based
strategies enhance operational efficiency in the organization by effectively mobilizing
organizational resources. This study concludes that human there is a relationship between
human resource strategies and response to seasonal fluctuations. Human resource
strategies play a bigger role in hiring the best candidates that have the right skills to
address emerging needs in the market as well as seasonal fluctuations in the hotel
industry. This study concludes that employee compensation enhances employee retention.
This study also concludes that training and development enhances quality in the
organization. Quality in the organization is enhanced through hiring quality qualified and
experienced staff that will deliver the best value to customers.

Since this study found a significant and positive relationship between market innovation
strategies and response to seasonal fluctuations. This study recommends that Hyatt Hotel
should partner up with various marketing and advertising agencies in order to create

vii
awareness of their hotel services including accommodation and other activities relating to
their core business.

This study recommends that Hyatt Hotel should develop products and services that are in
line with seasonal fluctuations in tourism industry. The hotel should develop innovative
services as well as products that takes care of all age groups to allow different people to
visit the hotel and have the experience. The hotel can develop services for couples,
families and young travelers so that they are all accommodated in line with their sought
needs and wants. This study recommends that Hyatt Hotel should deploy operational
based strategies that effectively addresses the needs that come along with seasonal
fluctuations in the hotel industry. This study recommends that Hyatt Hotel can make use
of technology to effectively handle simple tasks to ensure that convenience is met among
its customers.

Since this study revealed a significant relationship between human resource strategies and
response to seasonal fluctuations. This study recommends that Hyatt Hotel should carry
out a recruitment and selection process that takes into consideration the skills of an
employee in coping up with seasonal fluctuations. This study also recommends that
Serana Hotel should align its employee compensation system with the needs of the
employees to enhance their retention as well as loyalty to address seasonal fluctuations
effectively

viii
 DEDICATION
TABLE OF CONTENTS
STUDENT’S DECLARATION........................................................................................ii
COPYRIGHT....................................................................................................................iii
ABSTRACT.......................................................................................................................iv
ACKNOWLEDGEMENT...............................................................................................vii
DEDICATION.................................................................................................................viii
LIST OF TABLES...........................................................................................................xii
LIST OF FIGURES........................................................................................................xiii
ABBREVIATIONS..........................................................................................................xv

CHAPTER ONE................................................................................................................1
1.0 INTRODUCTION........................................................................................................1
1.1 Background of the Study................................................................................................1
1.2 Statement of the Problem...............................................................................................4
1.3 Purpose of the Study......................................................................................................4
1.4 Research Questions........................................................................................................4
1.5 Justification of the Study................................................................................................5
1.6 Scope of the Study.........................................................................................................6
1.7 Definition of Terms........................................................................................................6
1.8 Chapter Summary..........................................................................................................7

CHAPTER TWO...............................................................................................................8
2.0 LITERATURE REVIEW...........................................................................................8
2.1 Introduction....................................................................................................................8
2.2 Market Innovation Strategies and Response to Seasonal Fluctuation...........................8
2.3 Product and Service Based Strategies and Response to Seasonal Fluctuation............11
2.4 Operational Based Strategies and Response to Seasonal Fluctuations........................15
2.5 Human Resource Strategies and Response to Seasonal Fluctuations..........................19
2.6 Chapter Summary........................................................................................................24
CHAPTER THREE.........................................................................................................25
3.0 RESEARCH METHODOLOGY.............................................................................25
3.1 Introduction..................................................................................................................25

ix
3.2 Research Design...........................................................................................................25
3.3 Population and Sampling Design.................................................................................25
3.4 Data Collection Methods.............................................................................................27
3.5 Research Procedure......................................................................................................28
3.6 Data Analysis Methods................................................................................................28
3.7 Chapter Summary........................................................................................................29

CHAPTER FOUR............................................................................................................30
4.0 RESULTS AND FINDINGS.....................................................................................30
4.1 Introduction..................................................................................................................30
4.2 Response Rate and Demographic Information.............................................................30
4.3 Market Innovation Strategies and Response to Seasonal Fluctuation..........................34
4.4 Product and Service Based Strategies and Response to Seasonal Fluctuation.............39
4.5 Operational Based Strategies and Response to Seasonal Fluctuations.........................44
4.6 Human Resource Strategies and Response to Seasonal Fluctuations...........................48
4.7 Correlation Analysis.....................................................................................................52
4.8 Regression Analysis.....................................................................................................54
4.9 Chapter Summary.........................................................................................................55

CHAPTER FIVE..............................................................................................................56

5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS...........................56

5.1 Introduction..................................................................................................................56
5.2 Summary.......................................................................................................................56
5.3 Discussion.....................................................................................................................57
5.4 Conclusion....................................................................................................................64
5.5 Recommendations.........................................................................................................65

REFERENCES.................................................................................................................67
APPENDICES..................................................................................................................70
Appendix I- Letter of Introduction................................................................................70
Appendix II:Questionnaire..............................................................................................71
Appendix III:NACOSTI Research License...................................................................76
LIST OF TABLES
Table 3.1: Population Distribution.....................................................................................26
Table 3.2: Sample Size Distribution...................................................................................27
x
Table 4. 1: Low Pick Prices...............................................................................................35
Table 4. 2: Revenue Targets...............................................................................................36
Table 4. 3: Domestic Tourism and Sales............................................................................37
Table 4. 4: Customer Satisfaction.......................................................................................46
Table 4. 5: Training and Environmental Turbulence.........................................................46
Table 4. 6: Recruitment and Selection...............................................................................50
Table 4. 7: Correlation Analysis.........................................................................................53
Table 4. 8: Regression Analysis.........................................................................................54
Table 4. 9: Analysis o Variance.........................................................................................54
Table 4. 10: Coefficients Summary....................................................................................55
LIST OF FIGURES
Figure 4. 1: Response Rate.................................................................................................30
Figure 4. 2: Respondents Gender.......................................................................................31
Figure 4. 3: Respondents Gender.......................................................................................31
Figure 4. 4: Respondents Education...................................................................................32
Figure 4. 5: Staff Level.......................................................................................................32
Figure 4. 6: Department......................................................................................................33
Figure 4. 7: Department......................................................................................................33
Figure 4. 8: Marketing and Performance............................................................................34
Figure 4. 9: Customers Sustainability.................................................................................34
Figure 4. 10: Hotel Occupancy...........................................................................................35
Figure 4. 11: Events Planning.............................................................................................36
Figure 4. 12: Season Extension..........................................................................................37
Figure 4. 13: Festivals and Events Development...............................................................38
Figure 4. 14: Complimentary Services...............................................................................38
Figure 4. 15: Product and Services.....................................................................................39
Figure 4. 16: Accommodation............................................................................................39
Figure 4. 17: Accommodation and Hotel Premises............................................................40
Figure 4. 18: Accommodation Services.............................................................................40
Figure 4. 19: Hotel Amenities............................................................................................41
Figure 4. 20: Health Fitness Services.................................................................................41
Figure 4. 21: Convenience..................................................................................................42
Figure 4. 22: Unique Services............................................................................................42
Figure 4. 23: Young Travelers and Hotel Services............................................................43

xi
Figure 4. 24: Charges on Additional Services....................................................................43
Figure 4. 25: Services and Products Attraction..................................................................44
Figure 4. 26: Scheduling Capacity.....................................................................................44
Figure 4. 27: Training.........................................................................................................45
Figure 4. 28: Outsourcing...................................................................................................45
Figure 4. 29: The Use of Technology.................................................................................47
Figure 4. 30: Technology and Customer Experience.........................................................47
Figure 4. 31: Technology and Human Interaction..............................................................48
Figure 4. 32: Technology....................................................................................................48
Figure 4. 33: The Significance of Human Resources.........................................................49
Figure 4. 34: Emerging Needs............................................................................................49
Figure 4. 35: Employee Compensation..............................................................................50
Figure 4. 36: Quality Service..............................................................................................51
Figure 4. 37: Human Resource Strategies..........................................................................51
Figure 4. 38: Training and Development............................................................................52
Figure 4. 39: Talent Acquisition.........................................................................................52

ABBREVIATIONS

GOK Government of Kenya

KATO Kenya Association of Tour Operators

KTB Kenya Tourism Board

MOT Ministry of Tourism

NACOSTI National Commission for Science, Technology and Innovation

SIH Seasonality in Hotels

UNESCO United Nations Educational, Scientific and Cultural Organization

xii
 CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Seasonal Fluctuations in the tourism and hospitality industry have been a major concern
for stakeholders, policy makers and management. In many studies conducted across
North America and Europe and according to Jaywardena (2017), seasonality is a temporal
imbalance in the phenomena of tourism and many be expressed in terms of dimensions of
elements as number of visitors, expenditure of visitors, employment and admission to
attractions. Pegg and Patterson (2012) believe that seasonality is one of the major
differential characteristics of the tourism and hospitality industry separating them from
other major industries. Maharjana (2013) observed that seasonal fluctuations are a major
concern to all relevant stakeholders because they present an array of problems such as
underutilization of resources, short term employment, short operating seasons, pricing
adjustments, maintaining service standards in absence of experienced, long term
employees.

Tourism is a significant business in the development industry all over the world, which
includes several areas like accommodation, economy, transportation, catering, recreation,
and services for visitors (Moriarty & Jones, 2014). Individuals want to visit new places
for different purposes and wish to have good and high quality service at the destination.
Accommodation is a very basic service offered at any tourist destination for staying over
nights or other services. Hotels are the most recognizable element among all other in the
accommodation sector. The hotel industry has bright visions for the growth of the travel
and tourism industry. It has important aspects of a country’s infrastructure as well as it
provides the largest total employment in global terms (Sanchez & Satir, 2015).

Hotel industries are service oriented which means an active involvement in customer
services. There are many factors that affect the hotel sector. Seasonality is one factor
which affects either positively or negatively (Wang, 2015). Mostly seasonality has
affected a specific resort rather than other types of hotels. It is difficult to earn access
capital, low return on investment and adequate utilization of resources in hotel industries
due to seasonality in the aspect of economy. In the same way, seasonality has positive
aspects
1
also, such as after using tourism resources during a peak season, it can be a long rest
period which can be better than continuous use. The seasonality is a major challenge for
the tourism industry, so there needs to be some strategies and policies for managing
seasonality (Lai & Baum, 2015).

Many studies in the past have analyzed seasonality in the tourism sector from the demand
side or supply side approach (Murari and Tater, 2014). Across many studies, it is assumed
that there are eight main reasons for seasonal fluctuations within the tourism and
hospitality industry: Natural (linked to climate and seasons of the year); Institutional
(based on cultural and religious factors); social pressure and fashion; sporting seasons;
inertia and tradition; business customs and calendar effects (number of weekends, official
holidays) (Ortega, 2016).

Wang (2015) analyzed seasonal fluctuations in peripheral destinations within Africa and
found Four major patterns that have been established as a result of analyzing travel trends
in remotely located destinations endowed with natural resources as a major attraction. The
four patterns are: single peak, two peaks, non peak and multiple peak. Oketch (2010)
observed that Africa experiences seasonal fluctuations mostly as a result of over- relying
on international tourists whose travel to Africa coincides with winter in the northern
hemisphere. In Kenya, these seasonal fluctuations plus the adversities of continuing
political instability over the years has put the tourism industry at a risk of decline in
visitor numbers (Manono and Rotich 2013).

Despite the political instability, Kenya‘s Hotel and Tourism Industry revenue earnings
have gradually increased, with the year 2011 recording Kenya Shillings (Kshs.) 97.9
billion, over Kshs 52.7 billion in 2008 (GOK, 2012b). The relative increase in Hotel and
Tourism earnings resulted from a 13.3 per cent increase in International tourists, from 1.6
million in 2010 to 1.8 million in 2011(GOK, 2012b). As a result, the Kenya Tourist
Board (KTB) was optimistic that if the upward trend continued (GOK, 2012a), Kenya‘s
vision of 2 million International Tourists by the year 2012 (GOK, 2007) would be
achieved, which could relatively reduce Seasonal fluctuations if appropriately managed.
According to data from Kenya’s Tourist Arrivals GOK (2006) and GOK (2012), Hotel
and Tourism Enterprises (HTEs) in Kenya experience two-peak seasonality. The two-
peak is brought about by: two- peak seasons (one between June and September; the other
2
in December; shoulder seasons

3
from January to March and again in October; a slump between April and May (cold and
wet seasons in the Coastline circuit) and in November. Apart from the two peak seasons,
there are occasional peaks throughout the year caused by institutional and calendar effect
factors like public holidays, Indian summer holidays.

It is important to note, that despite Kenya‘s Hotel and Tourism Industry constantly
affected by domestic and global challenges that are linked to: political instability;
insecurity; overdependence on international tourism (Lam, Law and Ho 2015); the
industry has maintained a 5% growth rate (GOK, 2012b). This steady growth, defying all
odds, was believed to be as a result of Kenya‘s: global recognition; popularity as a tourist
destination; rich wildlife and natural resources (Wang, 2015); the wildebeest migration
listed as one of the seven wonders ([Link] UNESCO
world natural and cultural heritage sites (UNESCO, 2013).

The over- reliance on International Tourists brings in a complex phenomenon of seasonal

fluctuation within the Hotel and tourism Industry. The combined effect of seasonality and
the interplay between other environmental factors bears upon the ability of hotels in
Kenya to effectively formulate and execute viable strategies that enhance growth and
performance. Jaywardena (2017) notes that in such circumstances, organizations go for
cut throat strategies such as reducing prices to bear minimum, closing down during lean
seasons and scheduling employee recruitment as per dictates of the season.

Hyatt Group of Hotels is an international hotel group with a global coverage established
in the year 1969 and currently owns and manages 33 up market hotels including Safari
lodges, camps and luxury resorts in the East and Southern Africa and Asia offering
customers with splendid accommodation, holiday solutions and conferences (Waruingi,
2012). The Hyatt group began its first operations in hotels and tourism in Kenya under the
name Hyatt in early 1970s. Hyatt Group of Hotels was then established with the purpose
of becoming the leading hotel group in East Africa. Currently, the hotel has achieved this
purpose since it is well recognized both locally and internationally as the market leaders
providing the highest standards of service in establishments of unique design and in prime
locations throughout the regions they have presence (Ngugi, 2018).

4
The properties operated by Hyatt Group of Hotels are located in some of the most
prestigious and exquisite locations that have been strategically selected to provide
exciting circuits for their customers. With the hotel’s focus on product, service standards
and customer satisfaction, Hyatt Group of Hotels continues to be the hotel of choice for
most discerning traveler (Waruingi, 2012). The Hyatt Tourism Promotion Services is the
arm of the Aga Khan Fund for Economic Development which is an international
development agency and the only for-profit institution in the Aga Khan Network which
was founded by the Aga Khan in 1984. Over the years, the Hyatt Group expanded its
operations in Tanzania and Zanzibar, after which in 2006 the TPS Hyatt Group in East
Africa was restructured and the company, TPS Eastern Africa Limited, was a public
company constituting of Tourism Promotion Services (Kenya) Limited, Tourism
Promotion Services.

1.2 Statement of the Problem

Ortega (2016) observed that seasonal fluctuations often led exploitation or

underutilization of natural, physical, capital and human resources. Wang (2015) argued
that extremities in the visiting patterns of international tourists do not favor the quality of
business operations throughout a business cycle. The promotion of mass tourism in
Kenya during 1665-1994 can be attributed to the seasonal fluctuations experienced today
within the industry (Maharjan, 2013). Although this led to a steady increase in the tourist
numbers, there were overshadowed problems such as scheduling capacity, service quality
and lower room rates. As a result, the impact of seasonal fluctuations has been termed as
critical issues within the hotel and tourism industry. The impacts contribute to huge
losses, high fixed costs, poor quality service, high employee turnover rate and at large,
can impede the growth of the tourism sector as a whole (Wison, 2016).

1.3 Purpose of the Study

The purpose of this study was to identify and evaluate the response strategies used by
Hyatt Hotels to manage seasonal fluctuations.

1.4 Research Questions

This research study was guided by the following research questions:

5
1.4.1 What are market innovation strategies used by Hyatt Hotels during seasonal
fluctuations?
1.4.2 What are service and product based strategies used by Hyatt Hotels during seasonal
fluctuations?
1.4.3 What are operational based strategies used by Hyatt Hotels during seasonal
fluctuations?
1.4.4 What are Human resource strategies used by Hyatt Hotels during Seasonal
fluctuations?

1.5 Justification of the Study

The findings and recommendations of this research can be useful to several organizations
both in the public and private sector.

1.5.1 Organizations
The findings of the study can provide insights and ideas that enable organizations
especially hotels in formulating, implementing and evaluating viable strategies that
enable business sustainability and growth in a turbulent environment. This research will
help them anticipate seasonal fluctuations and proactively develop response strategies to
minimize the effect of fluctuating seasons within the tourism and hotel industry.

1.5.2 Government
The government can find the study useful as it may get insight on how it can formulate
policies that govern the creation of sustainable tourism industry or national policies on a
framework that is relevant and sensitive to the market forces influencing the tourism
industry in Kenya and the East African region. The study can provide insights into
strategy and provide a framework on which tourism industry players, can base their
response strategies.

1.5.3 Students of Tourism Management

The findings of response strategies at Hyatt can inform learning through practical
application of strategies within the Tourism and Hotel Industry and can give insights into
best-practices in operating efficiency.

6
1.5.4 Other Hotels
The identification and evaluation of the response strategies employed by one of the
leading hotel chain, Hyatt Hotels, can give an insight to other aspiring hotels on what
policies and strategies are important for their success.

1.6 Scope of the Study

This study focused on a detailed case study of hyatt Hotels located within Kenya to
analyze the impact of seasonal fluctuations. Hyatt hotels has positioned itself as industry
leader within the African and Asian continents. It boasts of a collection of 35 hotels,
resorts, luxury camps and lodges in some of the most pristine, picturesque and historic
settings. For the purpose of this study, Only data from Hyatt hotels within Kenya was
used and specifically Nairobi Hyatt Hotel was used since it is the headquarters for the
hotel group, necessary insights for strategy used can be obtained. This study was
conducted during a period of 8 months from June 2024 to August 2024. This research
used a descriptive design and questionnaires were administered to a sample of 104
employees.

1.7 Definition of Terms

1.7.1 Strategic Response

Strategic Response is the approach that firms can make to deal with the environmental
changes identified and quantified or perceived. According to Gabrielsson, Gabrielsson,
Al- Obaidi and Salimaki (2015), a good response strategy has to have at least four
components: scope (has to define companies and business such as the present and planned
interactions of the company with its environment); competence (this is an indication of
the level and patterns of the company's competition); competitive advantage (ensures the
unique position a company develop vis-a-vis its competitors through its resource
deployments); and, synergy (the joint effects that are sought from the company's
resources deployment and the company scope decisions).

1.7.2 Hotel
Commercial (profit making) or institutional (non-profit) enterprise, ranging from service
flats, service apartments, beach hotels/cottages, holiday Cottages, game lodges, safari
camps, banda‘s and holiday villas, clubs and resorts and spas, that provide meals and

7
other services for travelers, tourists or to any person who calls in and appears able and
willing to

8
pay a reasonable sum for the services and facilities, which are provided by the night and
this person must be in a fit state to be received (Wang, 2015)

1.7.3 Seasonal Fluctuations

Is a distinct pattern of demand of hospitality and tourism products and services, which
could be systematic or unsystematic as related to different time periods in a year. It
could be caused by changes in the macro and micro-environment, push/ pull factors and
or supply-side and demand-side factors (Wilson, 2016)

1.8 Chapter Summary

This chapter provides a background for the study in terms of the impact of seasonal
fluctuations on the hotel and tourism industry. The problem statement highlights a gap
between available information on the effects of seasonal fluctuations and the strategies
that hotels execute to minimize the negative effects. This provides a basis for this
research topic. The purpose and research questions to be used in accomplishing the study
have been stated precisely. This chapter also identifies the beneficiaries of this research
alongside areas of application in their relevant fields. Definition of terms helps
understand fundamental concepts within the context of this particular research. Literature
review covered in Chapter two will provide an in-depth analysis of existing literature on
the research questions proposed. Chapter three contains the methodology that was used in
this study encompassing the research design, population, sample, data collection methods,
research procedures and data analysis methods. Chapter four deals with research findings
and presentation whereas, the final chapter five, captures conclusion, summary and
recommendations.

9
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter covers the literature review of the study by highlighting the work of various
authors and researchers on the subject matter. The first section presents the market
innovation strategies used by hotels during seasonal fluctuation, followed by product and
service based strategies used by hotels during seasonal fluctuation and operational based
strategies used by hotels during seasonal fluctuation.

2.2 Market Innovation Strategies and Response to Seasonal Fluctuation

The business environment in which companies operate is becoming more volatile,

competitive and unpredictable. Keeping up with the increasingly environmental forces
has called on firms to rethink their strategies and realize that regardless how good their
products or services might be, they do not just sell themselves without taking into
consideration the environmental factors (Wong, 2014). Tourism makes a significant and
increasing contribution to the economic growth accounting for about 30% of the
international trade and present one of the best opportunities that countries can use to
create income and employment. Despite the contributions of the tourism industry in the
economy, the industry is still faced by business environmental factors posing a serious
threat in their operations if they are not well addressed to cope up with the environment.
(Barreda & Zubieta , 2017).

According to Lai and Baum (2015) response strategies are the approaches that companies
can make in response to dealing with the environmental changes identified or perceived
to be affecting the operations of the business in one way or another. Gibbs and Guttentag
(2018) indicate that an ideal response strategy consists of at least four main components
that is the scope defining companies and business like the present and planned
interactions with its environment, competence being the indication of the level and
patterns of the firm’s competition, competitive advantage that ensures the unique position
of the business developed vis-à-vis its competitors through its resource allocation and
most importantly synergy that is the joint effect that are sought by the company from its
resources allocation and the company scope decisions.

10
Companies that do not effectively respond to the environmental factors are not likely to
succeed in business (Wong, 2014). Essentially, a company’s response strategies can be
divided into operational and strategic involving two kinds of thinking. Strategic strategies
are directional and fundamental while operational strategies primarily affect the daily
implementation of strategic decisions. According to Snachez and Satir (2015) strategic
decision need to consider the entire company and represent a complex aspect of business
planning. Strategy on the other hand, should entail major changes for the company and
recognize that the business environment that it is dynamic and continues to evolve. The
aim of making strategic decisions is to implement policies that focus on moving the
organization towards its long-term goals while at the same time taking into account the
resources of the organization, threats and available opportunities (Yang, 2012).

One of the major dilemma that has come prominence for many hotels and accommodation
providers around the world is to best cope up with the seasonal fluctuations with an
attempt of addressing the demand for the services and accommodation (Jayawardena,
2017). Seasonal fluctuations in the hotel industry has made forced some hotels close their
doors during the summer months in Australia since it is regarded as traditional off-peak
period. In doing so, the hotels have forgone the opportunity of attaining high revenues
from increased operations beyond the so called traditional snow base period (Pegg &
Patterson , 2012). However, in other parts of the world, there is still a clear evidence of a
significant shift existing towards all season operations alongside with the incorporation of
a wide range of various types of summer outdoor recreation programs. Due to demand
during the off- season, operations of hotels are challenged because of their over-capacity,
reduction in the workforce, non-utilization of the infrastructure, and non-attraction of
investments that are geared during this period of time. The seasonal fluctuations in
demand presents an ongoing problem for managers in the hotel industry on how they can
effectively cope up with the situation in the long run, without affecting their operations
(Ortega, 2016).

According to Pegg and Patterson (2012) seasonality tends to be related with the patterns
of stability and a well-established patterns than irregular ones since there is a
predictability that is associated with seasonality which makes it possible for managers to
predict many of its impacts and implement appropriate strategies in the case of negative
effects. The demand procedure depends on the nature of facilities that is offered either
during the time of summer or winter. Management strategies on the other hand should
11
focus on various key issues like

12
facilities, employment, costs and the environment. A good strategy can be selected on the
basis of dimensions of the supply side dynamics. Marhajan (2013) discusses and presents
hotel management with various strategies like differential pricing and taxation, new
attractions and event, market diversification where the hotel is bale to include events and
festivals in the product and market diversification together they can help the hotel deal
with fluctuations.

2.2.1 Differential Pricing and Taxation

One of the response strategic response towards seasonal fluctuations is the pricing
decisions. This is an important and critical issue to be considered whether the hotel
should use single prices or different prices for the same product (Maharjan, 2013).
Having a single or similar price can easily be understood by both the customer and the
seller but it also reduces the chance of the marketer that develops adversarial relationship
with the customers. There various methods of pricing strategy, where differential pricing
is one strategy for pricing. This means that charging different prices to different buyers
for the same quality of the product. Moriarty and Jones (2014) define differencing pricing
as charging different price to the different guests on the same room and facilities for
instance the hotel may charge different prices like $50, $100, or $120 per night for
different customers and if they wish to pay the allocated amount then differencing pricing
is applied for that particular hotel. The market must be consisting of multiple segments
that have different price susceptible for effective differential pricing. There many ways
for differential pricing, such as secondary market pricing, negotiated pricing, random
discounting and periodic discounting (Gibbs & Guttentag, 2018).

Differential pricing is one way of managing seasonality and under this circumstance,
seasonal or promotional pricing such as discount or free offers for the increasing length to
stay, high prices to decrease overcrowding during peak season can effectively make a
group booking offering for instance, the retired people who may help in increasing
visitation during low season (Maharjan, 2013). Financial planning can also be undertaken
to manage seasonality since budgeting can be done to manage fluctuation operational
costs such as employees and other resources based on cyclical trends where it can control
fluctuating seasonal costs (Alamu & Dwyer, 2012).

13
2.2.3 Market Diversification

Market diversification strategy can be used for managing seasonality in a diversified

attraction whereby hotels have to develop alternative attraction for substitution in the high
season (Ortega, 2016). These can be either indoor activities like workshops, festivals and
conferences or outdoor activities like hiking, golf, mountain biking, nature viewing. The
purpose of these diversification strategies is to increase high season into its surrounding
shoulder seasons and the possibly into another season situation.

Consequently, according to Wang and Chung (2015) diversified attraction means

changing of the product mix where the introduction or development of festivals and
events with the purpose of increasing visitations during low seasons. The local
environment on the other hand can be developed for accessing restricted natural
attractions and facilities, for instance, public transport and public amenities may increase
visitation in low season. Complementary services can also be offered of themed offers
like combing tourist facilities with various local facilities such as coffee shops in motels
for expanding operational season which may help in reducing seasonal closures. Another
option would be diversifying into a niche product or even service areas like identification
and matching of seasonal motivation with service or locational attraction that can help
attract a different market, hence, increasing businesses during low season (Lam, Law, &
Ho, 2015). New products are developed to meet the existing market needs or modified
with the aim of meeting new market opportunities as the hotel attempts to address the
changing market conditions. With these kind of initiatives the hotels will be opening up to
various markets in different seasons by taking a multi segment approach in developing
varieties of products and services. The hotel can use tour operators since they are
considered as one of the strongest part of marketing, taking support from them in selling
product or service that is offered by the hotel can increase business during low seasons
(Jauhari, 2012).

2.3 Product and Service Based Strategies and Response to Seasonal Fluctuation

A product is regarded as a bundle of features that provide the intended value to the
customer at a predetermined cost. Product differentiation is the combination of varying
items like the form of the product, durability and reliability of the product, features,
performance, and conformance to quality (Kotler, 2014). Product and service strategies
on the other hand focus all of their promotion on the items being sold and their
14
availabilities. These strategies

15
can be used by various retail outlets and the hotel industry that wish to sell their large
selection of services and products to a large portion of the consumer market (Wilson,
2016). Product and service based strategies can also refer to the innovation that defy
straightforward classification in terms of the existing service categories or product lines to
match with changing needs of consumers while at the same time coping up with business
environmental factors. This can be done through differentiation, product extension and
innovation.

Product and service based strategies is a process of continually and systematically

assessing the needs of the market and differentiate various segments that will support
service development and innovations catering for those needs in the most feasible and
economic manner (Greenley & Matcham, 2016). Selling service by the hotel industry is
made considerably easier when approached in a systematic manner that is built on
ultimate selling propositions and benefit statements that the consumers are looking for in
accommodation. This will then dictate the balance that exist between pull and push based
strategies that are focused towards selling the service. These strategies seek product
growth by developing new products and services for the existing markets while at the
same time creating new needs through innovation that will help the hotel and the entire
accommodation industry to have businesses during low seasons. The innovations of new
services informed by the needs of consumers such as tourists will be attracted to the new
offers of products that the hotel offers during low seasons motivating them to plan in
advance (Alamu & Dwyer, 2012).

For the hotels that require sustainability in the ever volatile business environment,
through their research development with support from the marketing department they
should focus on ways that they can differentiate their services and products form what
their competitors are offering in the same market especially during low seasons of the
business (Moriarty & Jones, 2014). Any organization that is operating within its
hypercompetitive environment over time needs to achieve a sustainable competitive
advantage through strong product and service differentiation is key for it to survive
regardless the seasons of the year.

Arora and Sandhu (2018) researched on the banking sector, mentioned that if the credit
cards are the product the banks sells then creating a difference, they must think of Master
cards of Visa cards. In respect to product and service differentiation, Makadok and Ross

16
(2013) in their study titled “Taking industry structuring seriously: a strategic perspective
on product differentiation” they indicate that companies must rethink about the strengths

17
that their product or service has and how best they can enhance it as they develop a strong
marketing campaign that would help push the product or service further into the market.

Whenever a company wants to exploit the gains of the service and product differentiation,
they should invest in service and product attributes that are highly valued with their
customers (Murari & Tater , 2014). This will guarantees the company, high returns,
customer retention during low seasons, and a sustainable business venture even in the
dynamic business environment. Such companies especially in the service industry they
can carry out a survey or engage a consultant to ascertain the specific differentiating
attributes that are valued by customers (Akdag & Zineldin , 2011).

The companies should also look into prices of their services as a differentiating factor and
it should be balanced on the basis of the quality of the service being rendered. One of the
most important factor to consider in service differentiation is customer service especially
after selling the service (Gibbs & Guttentag, 2018). A firm can only achieve a
competitive advantage when its implements a value creating strategy that the competitor
cannot easily match since they are not able to duplicate the benefits of the strategy being
implemented. Offering customers with what they perceive as superior value puts the
company ahead of competition that will sustain through various changes that take place in
the business environment.

2.3.1 Accommodation Attributes

Accommodation should be treated as a product in the hotel industry (Alamu & Dwyer,
2012). People prefers spending good times with their families in various tourist places
across the globe and as a result the tourism industry all over the world affects the increase
in hotel and accommodation services. The accommodation alone is not just part of the trip
motivations on the destination’s attraction because travelers look for convenient,
conformable and efficient rooms primarily. Maharjan (2013) travelling for holiday and
leisure purposes, the element of accommodation plays a different role in tourism. Leisure
visitors are likely to spend a lot of time in different accommodation services when the
weather is poor. He further indicated that accommodation also plays a role in the overall
contribution which tourism makes ant the national and local level and it is difficult to
generalize about the proportion of the total expenditure that is allocated to
accommodation since it varies greatly in respect to the market and the type of
accommodation.
18
Accommodation attributes needs to be addressed based on the factors that influence its
demand so that the hotel is able to cope up effectively with the seasonal fluctuations that
take place in the business environment (Maharjan, 2013). The demand for
accommodation is influenced by the location of the hotel premises, the fixity of premises
and seasonality related occupancy levels. Quality is also significant in accommodation
since most consumers anticipate the best quality in return for their money, as for most
sectors of the travel and tourism sector, technology advancements have a significant
impact on operations. Internet booking for instance has had a positive effect on the
demand for accommodation (Alsetoohy, 2018). It is important that the hotels incorporate
the technological aspects in their accommodation for both efficiency and attaining
competitive advantage that is crucial during low seasons.

Accommodation is treated as product in the tourism industry and has been increasingly
globalized and competitive making it a major trend for developing brands that are
designed to meet the needs of various market segments (Jauhari, 2012). The attributes of
accommodation have been a rapid growth in the budget hotel sector, with major hotel
chains attracting the budget conscious travelers. Accommodation has also been conceived
as a product by some researchers, it describes the primary factors that impact the way the
product is being designed for instance large luxury hotels can accentuate facilities, the
image, services to a certain market segment while economy hotels only focuses on prices
as the key determinant (Maharjan, 2013).

2.3.2 Product and Service Extension

In the current dynamic business environment companies integrate the activities associated
with their marketing mix and thus becomes the axes for marketing strategy as well as
tactics (Alsetoohy, 2018). Product extension is a strategy of placing a well-established
product or service brand’s name on a new product that is in the same category. This kind
of extension is usually undertaken with the purpose of increasing sales, gaining higher
returns and attaining competitive advantage at the market place (Arora & Sandhu, 2018).
According to Hua and Wang (2018) all companies whether small or large in the global
practice product and service extension with the purpose of raining their sales of a popular
service or product offering and its success depend on how the service is positioned in the
market and the relationship to its grand name.

19
The changes of consumer tastes and preferences are the main drivers of the hotel industry,
coping with low seasons the players in the hotel industry should practice service
extension by offering other services that are in line with their core business (Hua & Wang
, 2018). For instance nowadays many visitors especially youth are interested in adventure
travel, so for the hotel to cater for this kind of segment they would have to innovate travel
of adventure activities (Maharjan, 2013). It could take a lot of investments for the
company to start adventure activities in particular premises but in the long run the
company will be able to maintain a flow of visitors throughout the years regardless the
seasons, hence, effectively addressing the low turnover of visitors during low period of
tourism activities. Service extension could also be extended by holding major events such
festivals and corporate conferences, and various tournaments that can be accommodated
by the hotel premises to keep the hotel in operation throughout various seasons’
fluctuations (Alamu & Dwyer, 2012).

2.4 Operational Based Strategies and Response to Seasonal Fluctuations

A successful operations strategy can be termed to how strategic decisions are made in the
organizational setting to enhance competitive advantage in the marketplace through
resources positioning or building (Xiao & O'Neill, 2012). The basic operations strategies
that are undertaken by the service sectors include; process, service or customer-oriented
operations strategies. Some of the structural and infrastructural decisions that lead to a
determined service operations strategy include; degree of process standardization, number
of various services offered, use of information technologies, orientation of the service
delivery process, the back and front office relationship, new service and design
deployment, human resources specialization and the degree of customer participation
(Jones, Hillier , & Comfort , 2014).

Operational strategies are concerned with how the elements of the organization delivers
effectively the corporate and business level strategies that involve the use of resources,
human talent and processes that is how corporate and business level strategies can be
translated into concrete operational activities and processes in areas such as
manufacturing, marketing, research and development, personnel and finance
(Tavitiyaman, Qui, & Qu , 2012). Organizations pursue strategies that are directed
towards improving the effectiveness of basic operations within the firm, such as finance,
marketing, materials management and human resources. Despite the strategies may be

20
focused on a given

21
function, they tend to embrace two or even more suctions requiring cooperation among
others to attain a companywide efficiency, customer responsiveness goals and quality
innovation (Greenley & Matcham, 2016).

The key to developing an effective operational strategy lies in comprehending how to the
company can create or add value for customers and the value is added through
competitive advantage priorities which are selected to offer support to a given strategy all
the time (Barreda & Zubieta , 2017). The four basic priorities that highly depends on
operational strategy include; delivery, flexibility, cost and quality. These priorities
translate into attributes used in describing different process by which the firm can add
value to its services at any given time of the business.

One of the most significant factors that affect the success of hotel management in today’s
global competitive environment is the ability to make a difference through operations in
the hotel industry. According to Golembski (2017) in order for the company to stay
competitive throughout, they should restructure their basic operational strategies,
rediscover the industry they are in and have the capability of creating a difference through
product and service offering. Today, it is becoming increasingly important obligation for
companies to realize the differentiation in customer needs before their competitors.
Consequently, companies that are able to offer service and products that have different
attributes in the fastest way are able to survive (Alamu & Dwyer, 2012). In the context of
hotel establishment, being in a position to predict how the future developments shall
progress and contribute to the establishment is very crucial.

2.4.1 Staff Training and Empowerment

According to Alananzeh, Mahmoud and Ahmed (2015) employees are the most crucial
component for success in the hotel industry specifically the front office employees which
is considered to be the most important department in the hotels. This department handles
communication with the guests, handling complains and offering all the information that
guests require about the hotel, or any other information that the guest needs. Have skilled
and well trained receptionist for instance, makes the guest feel welcomed as they get a
charming first impression. In addition the front line employees offer a sense of comfort to
the visitors by making them feel at home from the moment they arrive at the hotel.
Furthermore the role of the front line employees can be challenging, because handling a

22
multitude of tasks to keep the wheels of the company running smoothly. Thus, the
frontline office of any hotel plays a critical role in forming the guests’ experience in the
hotel industry as whole while at the same time contributing to an increased business
during the low season (Golembski, 2017).

Most of the employees are not always satisfied with their jobs. However, they leave their
jobs as soon as they find a relatively better in another hotel and mostly as a result of work
stress, low salary, job satisfaction, and long working hours if they are not addressed
properly the hotel can lose its competitive advantage (Alananzeh, Mahmoud , & Ahmed,
2015). For hotels to deal with seasonality it is important to constantly ensure the
satisfaction of their employees through empowerment and training and specifically on
how to handle work pressure. Firms tend to be more effective when they satisfy the need
of their employees. Hotels that have trained and empowered workforce tend to be more
effective since the needs of employees have been fulfilled making them the most
important asset for the company’s effectiveness (Moriarty & Jones, 2014). With increased
turbulence in the hotel industry, a stable workforce automatically becomes a significant
competitive advantage tin driving the business both in low and high seasons whereas
when the company has unstable workforce conditions, it is forced to spend millions of
dollars in orienting, overtime recruiting, supervision and training of the workforce
(Barreda & Zubieta , 2017).

2.4.2 Investing in Latest Hotel Technologies

Information technology is increasingly becoming the ultimate foundation of the modern

day companies. Adopting information technology to help integration of operations in the
company brings in great changes in the management practices and the structure of the
organization (Akdag & Zineldin , 2011). That is the use of technology in the hotel
industry is one of the strategies that can improve performance and attract competitive
advantage over its competitors in the market. The hotel industry is so dynamic, the
players are now using various technology to make sure that the customers are satisfied.
The aspect of service automation for instance, many visitors today tend to prefer
technology over human interaction to avoid errors in performing simple tasks. The remote
check-in and check-out options are now integrated with work apps that informs guests to
order room service right from their mobile devices. As much as operations in the hotel
industry is concerned there exist a whole range of basic guest requests that can be

23
fulfilled through automation with

24
the right technology which helps in freeing the staff for other activities than can
effectively enhance guest experience (Gibbs & Guttentag, 2018).

Application of technology in the hotel’s operations enhances the experience of the

customer which has a direct impact on him repurchasing the service regardless the
seasonal fluctuation in the hotel industry. This makes it crucial for firms to constantly
search for new technologies that can enhance customer experience to motivate the them to
go back to the same hotel and have the same experience regardless the season of the year
(Golembski, 2017). In terms of efficiency in the hotel industry, having an end to end eco
systems automation approach that enables customers to interact with the service offerings
that the organization has in place guarantees a competitive advantage in the industry over
the company’s competitors (Akdag & Zineldin , 2011).

2.4.3 Resources Mobilization

Developing a collaborative and cohesive networking relationships towards smooth

resource mobilization is helpful for the business to get the required resources such as its
financials, budgetary, intellectual, and technical in order to keep the business running for
its intended objectives (Harrison, 2013). In the hotel sector, many studies have been
highlighted the importance of resources of hotels in relation to the performance with
evidence contributing to a wide range of resources such as human resources, physical
resources, marketing resources, technological and information resources. These resources
that the hotel company possesses combine to form the abilities that allow it to compete,
however, if the firm wishes to adapt to their environment and if they wish to promote a
defined strategy that can lead them towards a sustainable competitive advantage, they
should not limit themselves to use the resources that is in their possession at given
moment in time (Casanueva & Gallego , 2015).

According to Casanueva and Gallego (2015) with the hotel industry being the victim of
economic conditions that has a significant impact on their operations. They need to
undertake a systematic resource allocation framework that will help the business sustain
itself throughout seasonal fluctuations. Hotels should be able to identify the stakeholders
with external resources that has value to their business and find ways of assessing those
resources through partnerships and they should have the ability of mobilizing those
resources. Various alliances in the hotel sector is believed to contribute positively to the

25
performance of hotels especially during the low season, as the hotels get to use the
resources that they lack internally in exchange of what the other hotels lack. Thus, it
enables the hotel to run smoothly throughout the year (Golembski, 2017).

2.5 Human Resource Strategies and Response to Seasonal Fluctuations

According to Jolliffe and Farnsworth (2013), strategic response are the decisions that
concern the entire company’s environment that operates in, the individuals that constitute
organization and the entire available resources and the line between the two. Strategic
responses help companies to have a control over the increased turbulent and unstable
macro and micro environments and which entails innovative venture advances, financing
and business policies and long range forecasting. Strategic response ruminate on what the
company requires in the future to obtain their anticipated objectives and goals then they
create a strategy that will meet those changes in mind all the hindrances of change,
enablers of change and the significant players (Golembski, 2017). The guiding principle
is how the entire company can maintain effectiveness, which needs more resources for
implementation to be a success (Tavitiyaman, Qui, & Qu , 2012).

Companies operate in an open system with different factors having to influence the
direction of the organization. Companies have no guarantee for prosperity and the
survival due to the increased competitive nature of the sectors in the environment
therefore has to come up with strategic responses (Alamu & Dwyer, 2012). According to
Jolliffe and Farnsworth when a firm flops at responding to a threat, the damages that arise
keep accruing. In order for an organization to maintain a competitive advantage, the
company needs to carry out environmental scanning for both external and internal
environment and be able to respond appropriately (Alananzeh, Mahmoud , & Ahmed,
2015). Therefore for a company to have an effective strategic response they need to be
well versed on the potential impacts of the modest changes upon individuals and how to
react to the probable sources of change resistance. Due to rapid changes in the dynamic
business environment strategic responses are quite essential in evading obsoleteness of
the existing strategies (Gibbs & Guttentag, 2018).

Alananzeh, Mahmoud and Ahmed (2015), describes the hospitality industry as a people
industry. Therefore, the people-centric nature of the sector therefore makes it extremely
dependent on its workforce. The author further illustrates that it is labor intensive and
offers
26
flexible employment opportunities therefore appealing to certain groups of employees
like students, school leavers, and migrant workers seeking for seasonal or part-time
employment. These individuals are particularly attracted to the hotel industry since the
majority of the jobs in the industry are unskilled or semi-skilled which by nature can
easily and quickly be learnt on the job.

The hotel sector is also characterized by high turnover rate. In the US, for instance, the
average job tenure in the hotel sector was estimated to be one and half a year whereas in
the UK job tenure of 18 to 24 months is viewed as normal. The hotel industry is faced
with high turnover rates which can range 60% to 300% that might be due to seasonal
fluctuations, a low-skilled labor market, and part-time employee in the hotel environment
(Alamu & Dwyer, 2012). The occurrence of high turnover in the sector to have created a
certain culture which has been accepted by both employees and employers as normal.
However, researchers like Golembski (2017), argue that the high turnover rate has
benefits for employers especially with fluctuating customer demand which is associated
with seasonality issues. Jauhari (2012) however, advise that the high turnover rate in the
hotel sector is the highest and more pronounced especially at the operational level, thus
among front line employees. The success of the hotel firms is not only dependent on the
frontline staff but also in the back office. Another trait is associated with the global hotel
sector is the dominance of small and medium sized enterprises which are highly
fragmented and independently owned which may also have a negative implication on
HRM usage in the hotel industry (Lam, Law, & Ho, 2015).

2.5.1 Recruitment and Selection

Recruitment and selection usually forms a significant part of the duties of human resource
management professional within an organization, in particular hotels and effective
recruitment and selection is a significant aspect of SHRM formulation and
implementation (Arora & Sandhu, 2018). Recruitment and selection is always presented
as an intended rational activity, involving certain chronologically-linked stages in the
process of employee resourcing (Golembski, 2017). The process of recruitment begins
with creating a pool of qualified applicants and the selection involves picking the right
individual from that pool, who can effectively execute the task more effectively. If
managed efficiently the recruitment and selection can help in mitigating staff turnover
exerting a strong effect on organization’s culture. Since the responsibilities of non-

27
managerial employees’ are

28
repetitive and easily trained, most hotels prefer to focus on the attitude and the behavior
and consider them as a vital skill requirements in employee selection (Murari & Tater ,
2014).

Strategic recruitment and selection involves hiring effectively. It is imperative to generate

reasonably large pool of candidates to enable a chance of finding the most qualified
candidates among them, and for this reason adequate investment needed (Alananzeh,
Mahmoud , & Ahmed, 2015). Previous research have documented in the hotel industry
highlighted that hotels always recruit through newspapers, internet, internal advertising
and word of mouth. A strategic selection process enables and helps applicants in order to
assess the organization (Casanueva & Gallego , 2015). This is through providing the
applicants a realistic job preview.

Providing realistic job preview is also known as realistic recruitment, which is significant
for staff retention and job satisfaction. Realistic recruitment will assist applicants in
evaluating and deciding whether they are suitable and fit into the company (Xiao &
O'Neill, 2012). This decision and awareness is formed at the beginning of the recruitment
and selection process. Applicants that do not seem to be happy with job requirements and
the context in which the job will be executed may decide not to accept the offer, or even
choose to withdraw before being selected.

2.5.2 Training and Development

The importance and significance of training and development to organizational

development and performance has been recognized by many scholars (Moriarty & Jones,
2014). Alananzeh, Mahmoud and Ahmed (2015), is of the view that training and
development has been identified as not the only supportive but central to the business
strategy and should be given consideration needed. As the result, companies have been
advised to formalize and structure training programs as much as possible if the desired
benefits are to be attained. The hotel industry is regarded for being labor intensive and
therefore a need to formalize their training and programs. This is critical since it could
help them improve the knowledge and skills of their employees in order to maintain
customer satisfaction (Jones, Hillier , & Comfort , 2014).

29
In the hotel context, training can be grouped into general training and job-related training
whereby general training consists of telephone etiquette, language training, health and
safety, guest service and grooming (Pegg & Patterson , 2012). On the other hand, job
related training involves cleaning and making a room up, preparation of meals, kitchen
management and front desk management. The Human Resource department always
manages the general training while the respective department managers are in charge for
the job related training (Alsetoohy, 2018).

Employee training programs in most companies begin with orientation or induction and it
is more or less regarded as one element of the employer’s new employee socialization
procedure (Wong, 2014). Employee orientation is the process of providing new
employees with fundamental background information regarding the organization. Hotels
just like any other organization, should give significance to the induction since it
enhances employee retention. In order to be effective, induction should be formally
conducted, whenever possible (Arora & Sandhu, 2018).

Casanueva and Gallego (2015), training however the procedure of educating new is and
current employees with fundamental capabilities and knowledge required to execute job
responsibilities. Once employees acquire new skills and knowledge through training, they
are motivated and empowered. These are vital keys that are crucial for the attainment of
the organizational strategy. Hotels offer training opportunities mainly satisfy the skill
requirements and demands of employees’ jobs. This enhances employees’ opportunities
for career progression in the organization. However, training provides career progression
prospects for their dedicated, efficient and capable employees through formal and
structured progression initiatives (Makadok & Ross, 2013).

Training should be seen as an investment that adds value to an organization simply by

increasing employee’s motivation as well as skills. Companies in turn expect that by
empowering employees through training, employees will adjust and show transformations
in services offered, products and labour markets conditions in order to improve work
efficiency and productivity throughout seasonality. Training and development, regardless
of its significance, it can sometimes be hampered by employee turnover. For instance,
Gibbs and Guttentag (2018), mentioned that the rates of employee turnover in the
hospitality industry ranges between 60% and 300% annually. A number of studies have
revealed that in the hospitality industry suffer from extremely high turnover. This makes

30
employee training and development an expensive activity to undertake, since employers
may not be able to recoup the return on the cost of training given. To counteract high
turnover rates that cause high training costs, employers have also been advised to be
strategic in their planning process (Lloyd, Warhurst, & Dutton, 2013). That is they need
to plan ahead of time while at the same time putting measures that could help them attract
employees that will stay longer in order for the hotels to benefit from the investments of
training.

2.5.3 Employee Compensation

Compensation systems and policies are one of the many of the several human resource
practices that organizations use to retain their employees (Golembski, 2017). Several
sectors including hotels are mainly dependent on employees to offer high quality services
to their guests. Therefore, human resource practices that enhance the hiring and retaining
of quality staff are of strategic importance to the company. Murari and Tater (2014)
pointed out that in the service sector direct and indirect compensations is very significant
to hiring and retention of quality staff. Compensation is regarded as the process by which
the entire compensation received by an employee which is mainly grouped into direct and
indirect compensation. Direct compensation in this case it includes base compensation
that is wages and salaries. The indirect compensation on the other hand consists of
benefits like pension contributions, paid leave and different non-financial rewards and
bonuses are linked to performance of individuals, teams or the organization as a whole
(Kattara & El-Said, 2013).

For hotels to obtain their monetary value, motivate and maintain its highly skilled
workforce, it’s vital to ensure that its compensation systems are handled properly.
According to Alamu and Dwyer (2012), compensation policies are planned in a manner
that encourages maximum employee commitment and productivity. This will reduce
labor costs that becomes a vital component of Human Resource. Hotels being like any
other organization are therefore advised to appropriately create a system that would
motivate productivity and help in attracting and retaining employees since this is
considered to be the core element of all employer-employee relationship (Golembski,
2017).

31
2.6 Chapter Summary

This chapter presented the literature review on strategic response to seasonal fluctuations
within the hotel and tourism industry. The literature review has been presented based on
the following research questions; the marketing innovation strategies used by hotels
during seasonal fluctuations, service and product based strategies used by the hotels
during seasonal fluctuations and the operational based strategies used by hotels during
seasonal fluctuations. Chapter three will describe the research methodology used to carry
out the study. Specifically, the research design, population and sampling design and data
collection methods.

32
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction
Research methodology discussed the procedures and methods that were applied during
the research period. This chapter covered the research design that was used in integrating
the research components, the population and sampling design. Data collection methods,
research procedures and data analysis methods were also presented in this chapter.

3.2 Research Design

A research design is a detailed plan of how a research study is going to be conducted

starting from data collection to data analysis of the research (Cooper & Schindler 2014).
This study used a descriptive research design. Descriptive research design helped to
generalize findings to all Hyatt group hotels. The main focus of this study was Nairobi
Hyatt Hotel and the group headquarters. This method concerned the intense investigation
of problem- solving situations in which solutions were relevant to the research problem.
This strategy involved selecting of several targeted cases on which an intensive analysis
was conducted. This aided in recognizing other possible ways for solving the research
questions based on the present solution applied in the selected case study. The study
brought out a subject, often by formulating a profile of group of problems (Cooper &
Schindler, 2014). Descriptive survey design was considered to be appropriate for this
study since it enabled the researcher to collect in depth information about the population
that was studied. The descriptive design provided sufficient information on the response
strategies used by Hyatt hotels.

3.3 Population and Sampling Design

3.3.1. Population
Zikmund (2003) defines a population as a group of individuals, objects, items from which
samples are taken for measurement; they have at least one thing in common. The
population in this research was Nairobi Hyatt Hotel employees. The Hyatt Group owns
and manages properties all over the world. Hyatt’s portfolio currently comprises a
collection of luxury hotels, resorts and safari lodges in Tanzania, Zanzibar, Kenya,
Uganda, Rwanda and Mozambique with a total workforce of 7391 in the region. The
Hyatt Group in Kenya has
33
2772 employees. This study focused on Nairobi Hyatt Hotel which has a total of 261
employees. Being the headquarters for the Hyatt group influenced the choice of Nairobi
Hyatt Hotel. Data was gathered from employees both in management and those that are
not in management, inclusive of support staff. This population formed the basis from
which the sample of this study was drawn. The population breakdown is as shown;

Table 3.1: Population Distribution

Category Population Distribution (%)

Top Managers 7 3
Supervisors 36 14
Other Staff 208 83
Total 261 100

Source: Human Resource, Nairobi Hyatt Hotel (2024)

3.3.2 Sampling Design

[Link] Sampling Frame

According to Cooper and Schindler (2014) a sample frame is a list of all eligible sampling
units. Sampling frame is the set of sources material from which the sample is selected.
Therefore, the sample frame comprised of all Nairobi Hyatt Hotel employees. The
sampling frame for the study was 261 employees. This frame was provided by Nairobi
Hyatt Hotel Human Resource Department.

[Link] Sampling Technique

After the population has been divided into appropriate strata, a simple random sample is
then taken within each stratum. Cooper and Schindler (2014) assert that this method
involves grouping members of the population into relatively homogenous sub-populations
or strata so as to help researchers achieve the desired representation of the various sub-
populations. This research applied sampling techniques that were appropriate for
probability sampling, which was, stratified sampling. Probability sampling is a sampling
procedure in which each element of the population has a fixed probabilistic chance of
being selected for the sample (Zikmund, 2003). Stratified sampling method was used to
determine the sample size. Cooper and Schindler (2014) assert that this method involves
grouping members of the population into relatively homogenous sub populations.
Then simple
34
random sampling will be used. According to Kothari (2003) this technique gives each
element within each stratum, an equal probability of being selected.

[Link] Sample Size

According to Saunders, Louis and Thornhill (2003) sample size is the determined total
number of sampling units needed to be representative of the defined target population;
that is, the number of elements (people or objects) that have to be included in a drawn
sample to ensure appropriate representation of the defined target population. According to
Kothari (2003) 10 % of the target population is sampled when the population is above
300 and 40
% of the population is sampled when the population is below 300. In this research the
researcher’s targeted population was 261 respondents, therefore the calculated sample
size was (40% of 261). For this research, the sample size which the researcher proposed
was 104 respondents as displayed in Table 3.2.2 below;
Table 3.2: Sample Size Distribution

Category Population Sample Size Distribution (%)

Top Managers 7 3 3
Supervisors 36 14 14
Other Staff 208 87 83
Total 261 104 100

Source: Author (2019)

3.4 Data Collection Methods

Data collection is the systematic gathering of data using a specified scientific process
(Cooper, 2014). Data collection instruments were developed by the researcher and the
questionnaires then used to collect primary data. Questionnaires were commonly used to
obtain important information about the population. According to Mugenda and Mugenda
(2003), a self- administered questionnaire is the only way to elicit self-reports on people’s
opinions, attitudes, beliefs and values.

The questionnaire had questions targeted at giving insight into the research questions,
thus meeting the research objectives. The choice of this tool of data collection was guided
by the time available and the objectives of the study. Questionnaires provide a high
35
degree of

36
data standardization and adoption of generalized information amongst any population.
Semi structured questionnaire will be used to collect data. Closed ended questions were
also used for easy coding and analysis. A Likert Scale of five levels (strongly disagree,
disagree, neutral, agree and strongly agree) was used to add quality of data by measuring
the extent of responses given. These types of questions were accompanied by a list of
possible alternatives ranging from strongly disagree to strongly agree, from which
respondents were required to select the answer that best describes their situation. The first
section of the questionnaire focused on the demographics of the respondents, section two
was aimed at investigating the effect of market innovation strategies on performance.
Section three focused on product and service based strategies, section four was used to
investigate operational based strategies and the last section tested Human Resource
strategies employed by Hyatt Hotels.

3.5 Research Procedure

According to Cooper and Schindler (2014), research procedures refers to the detailed
sketch or framework consisting of step by step on how the researcher is going to conduct
the research to meet the research objectives of the study. In this particular study, upon
completion of the proposal, approval was sought from the supervisor. Once the approval
was granted, a letter of introduction was drafted to the human resource manager of Hyatt
Group of Hotels asking for permission to carry out a study in their premises. Once the
permission was granted, a pilot test was carried out to test the validity and reliability of
the study instrument. All errors that were identified were corrected before being
administered to the respondents for actual data collection. Then the researcher located the
respondents and issued the study questionnaires using a pick and drop method that
ensured a higher response rate was obtained. After this, the questionnaires were collected
by the researcher for data analysis. The findings from the study were presented using
tables and figures.

3.6 Data Analysis Methods

Cox and Hassard (2010) define data analysis method as the process through which a
researcher summarizes raw data in a way that makes sense and meaning. In other words,
data analysis methods are a way of giving meaning to research data. The statistical
Package for Social Sciences (SPSS) version 21 was used to analyze data for descriptive
and inferential statistics. Descriptive data was analyzed for percentages and frequencies,
37
while

38
inferential statistics was analyzed for correlations, and regressions. Data was presented
using tables and figures.

3.7 Chapter Summary

This chapter covered the procedures that the researcher used to collect data that was used
to support the purpose of the research: which was to investigate the response strategies
used by Hyatt hotels to deal with seasonality. It also described the methodology and
research design that the researcher proposed for use in the study. The sample size,
sampling techniques as well as the questionnaire as a primary data collection instrument
were described with their relevance in this particular study. The next chapter will present
the results and findings obtained after conducting the survey.

39
 CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction
This chapter offers results and findings on strategic response on seasonality fluctuations
within the hotel and tourism industry with a case of Hyatt Group of Hotels. The first
section of the study presents the response rate and demographic information of the
respondents. The second section provides the findings on market innovation strategies
used by Hyatt Hotels during seasonal fluctuations, third section provides findings on
service and product based strategies used by Hyatt Hotels during seasonality, fourth
section offers findings on operational based strategies used by Hyatt Hotels during
seasonality fluctuations and the fifth section presents human resource strategies used by
Hyatt Hotels during seasonality fluctuations.

4.2 Response Rate and Demographic Information

This section presents the response rate obtained from the respondents and general
information of the respondents.
4.2.1 Response Rate
This study had a response rate of 75% which accounts for 78 questionnaires that were
dully filled out of 104 that were issued to the respondents. According to Cooper and
Schindler (2014), a sample size above 60% is suitable for data analysis. Therefore, the
response of 75% was sufficient for data analysis. Response rate of the study is presented
in Figure 4.1 below.

25%
Responded
Did Not Respond

75%

Figure 4. 1: Response Rate

40
4.2.2 Demographic Information
This section offers background information of the respondents involved in the study. The
variables include, gender, age, education, years in service and department.
[Link] Respondents Gender
The respondents were asked to indicate their gender, 41% of the respondents were female
and 59% were male as shown in Figure 4.2. This implies that the study had a diverse
gender representation

41% Male

59% Female

Figure 4. 2: Respondents Gender

[Link] Respondents Gender

When the respondents were asked to indicate their gender, 44% of the respondents aged
between 21 and 30 years, 47% of the respondents aged between 31 and 40 years and 9%
aged between the age of 41 and 50 years as shown in Figure 4.3. This implies that the
respondents had a diverse age groups.

50.0 47.0%
44.0%
45.0
40.0
35.0
30.0
25.0
20.0
15.0
9.0%
10.0
5.0
0.0
21-30 Years 31-40 Years 41-50 Years

Figure 4. 3: Respondents Gender

41
[Link] Respondents Education

This study sought to establish the highest level of education of the respondents involved
in the study. Figure 4.4 shows that 3% had a diploma, 555 had bachelor’s degree and 42%
had a master’s degree as shown in Figure 4.4. This implies that the respondents involved
in this study had the ability to read and interpret the information sought in this study.

3%

Dilpoma
42%
Bachloer's Degree
55% Master's Degree

Figure 4. 4: Respondents Education

[Link] Staff Level

The respondents were also asked to indicate their staff level within their organization,
15% were top level managers, 24% middle level managers, 26% supervisors, 24%
support staff and 11% others. This implies that the respondents had sufficient knowledge
of the organization.

11% 15%
Top Managers
24% Middle Level Manager
24%
Supervisor

26% Support Staff

Others

Figure 4. 5: Staff Level

42
[Link] Department

The respondents were asked to indicate their department, 25% of the respondents were in
front office department, 22% in sales and marketing, 26% in Finance and accounting,
13% in operations and 14% in food and beverage department. This implies that the
respondents involved in this study had sufficient knowledge on the information sought in
this study.

30.0 26.0%
25.0%
25.0 22.0%
20.0
13.0% 14.0%
15.0
10.0
5.0
0.0
1

Front Office Sales and Marketing Finance and Accounting

Operations Food and Beverage

Figure 4. 6: Department
[Link] Years in Service

The respondents were asked to indicate the duration of years they had served in the
organization, 6% had worked for a period of 6 to 10 Years, 12% between the periods of
11 to 15 years, 26% less than 1 year, and 56% had worked for a period between 1 to 5
years as illustrated in Figure 4.7. This implies that the respondents had sufficient
experience with the company’s operations.

12%
6% 26%
Less than a year
1-5 Years
6-10 Years
56%
11-15 Years

Figure 4. 7: Department
43
4.3 Market Innovation Strategies and Response to Seasonal Fluctuation
This study sought to determine the effect of market innovation strategies to seasonal
fluctuations. The findings are presented as follows:
4.3.1 Marketing and Performance
When the respondents were asked to indicate the extent to which marketing affects
performance of the organization, 5% of the respondents were moderate, 46% very high
and 49% high extent. This means that marketing affects the performance of the hotel to a
great extent.

5%
Very High
46% High
49%
Moderate

Figure 4. 8: Marketing and Performance

4.3.2 Customers Sustainability

The respondents were asked whether marketing efforts enhances customer sustainability,
4% were neutral, 54% agreed, 42% strongly agreed, 0% neither disagreed nor strongly
disagreed as shown in Figure 4.9. This implies that marketing efforts enhances customer
sustainability.

4% Neutral
Agree
42% 0%
Strongly Agree
54% Disagree
Strongly Disagree

Figure 4. 9: Customers Sustainability

44
4.3.3 Low Pick Prices

When the respondents were asked whether lowering prices during off-peak season is
essential in maintaining the desired level of sales, 3% of the respondents strongly
disagreed, 3% disagreed, 41% agreed and 53% strongly agreed as shown in Table 4.1.
This implies that the lowering of prices during off-peak season is essential in maintaining
the desired sales.

Table 4. 1: Low Pick Prices

Scale Frequency Percent

Strongly Disagree 2 3.0
Disagree 2 3.0
Agree 33 41.0
Strongly Agree 41 53.0
Neutral 0 0.0
Total 78 100.0

4.3.4 Hotel Occupancy

When the respondents were asked to indicate whether price adjustments for both local and
international residents enhances hotel occupancy, 3% of the respondents disagreed, 4%
were neutral, 0% strongly disagreed, 43% strongly agreed and 50% agreed as shown in
Figure 4.10. This implies that price adjustments for both local and international residents
enhances hotel occupancy.

3%
4%
Disagree
43%
0% Neutral
50% Agree
Strongly Agree
Strongly Disagree

Figure 4. 10: Hotel Occupancy

45
4.3.5 Revenue Targets

When the respondents were asked to indicate whether pricing decisions is essential in
achieving revenue targets during off peak period, 3% strongly disagreed, 4% disagreed,
64% agreed, 29% strongly agreed and 0% were neutral as shown in Table 4.2. This
signifies that pricing decisions is essential in achieving revenue targets during off-peak
periods.
Table 4. 2: Revenue Targets

Scale Frequency Percent

Strongly Disagree 2 3.0
Disagree 3 4.0
Agree 50 64.0
Strongly Agree 23 29.0
Neutral 0 0.0
Total 78 100.0

4.3.6 Events Planning

When the respondents were asked whether events planning during off-peak season helps
the hotel achieve revenue targets, 9% of the respondents disagreed, 45% strongly agreed,
46% agreed, 0% were neither neutral nor strongly disagreed as shown in Figure 4.11. This
implies that events planning during off-peak season helps the hotel achieve revenue
targets.

9%

Disagree
45% 0%
Agree
46% Strongly Agree
Neutral
Strongly Disagree

Figure 4. 11: Events Planning

46
4.3.7 Domestic Tourism and Sales

When the respondents of the study were asked to indicate whether marketing of domestic
tourism during off-peak season helps the company maintain sales levels, 3% of the
respondents disagreed, 4% were neutral, 53% agreed, 40% strongly agreed and 0%
strongly disagreed as shown in Table 4.3. This implies that marketing of domestic
tourism during off-peak season helps the company maintain sales levels.
Table 4. 3: Domestic Tourism and Sales

Scale Frequency Percent

Disagree 2 3.0
Neutral 3 4.0
Agree 41 53.0
Strongly Agree 32 40.0
Strongly Disagree 0 0.0
Total 78 100.0

4.3.8 Season Extension

When the respondents were asked to indicate whether lower rates can be used in
extending the season, 3% of the respondents disagreed, 3% were neutral, 42% strongly
agreed, 52% of the respondents agreed and 0% strongly disagreed as shown in Figure
4.12. This implies that offering lower rates can be used in extending the season.

3%

2%

Disagree
42% 0%
Neutral
53% Agree
Strongly Agree
Strongly Disagree

Figure 4. 12: Season Extension

47
4.3.9 Festivals and Events Development
On the question whether the development of festivals and events development increase
visitation during low seasons, 29% of the respondents strongly agreed, 71% agreed, 0%
were neutral, 0% disagreed and 0% strongly disagreed as shown in Figure 4.13. This
means that development of festivals and events development increase visitations during
off-peak seasons.

0%
Agree
29%
Strongly Agree
Neutral
Disagree
71%
Strongly Disagree

Figure 4. 13: Festivals and Events Development

4.3.10 Complimentary Services

When the respondents were asked to indicate whether offering complimentary services
will help in extending the peak season, 32% of the respondents strongly agreed, 4%
disagreed, 0% neutral, 0% strongly disagreed and 64% of the respondents agreed as
shown in Figure
4.14. This implies that offering complimentary services helps in extending the peak
season for the hotel.

4%
Disagree
32% Agree
0% Strongly Agree
Neutral
64%
Strongly Disagree

Figure 4. 14: Complimentary Services

48
4.4 Product and Service Based Strategies and Response to Seasonal
Fluctuation This study sought to determine the effect of product and service based
strategies and response on seasonal fluctuations. The findings are presented as
follows:
4.4.1 Product and Services
The respondents were asked to indicate the extent to which changes in products and
services affect seasonality, 4% of the respondents were moderate, 42% very high extent,
and 54% to a high extent. This implies that the extent to which the company changes
products and services affect seasonality.

4%

42% Very High

54% High
Moderate

Figure 4. 15: Product and Services

4.4.2 Accommodation

The respondents were asked to indicate whether accommodations is a core product, 1% of

the respondents were neutral, 4% disagreed, 36% strongly agreed, 0% strongly agreed
and 59% agreed as shown in Figure 4.16. This implies that accommodation is a core
product offered in the organization.

1%

4% Disagree
36% Neutral
0% Agree
Strongly Agree
59%
Strongly Disagree

49
Figure 4. 16: Accommodation

50
4.4.3 Accommodation and Hotel Premises
When the respondents were asked to indicate whether the demand for accommodation is
influenced by the location of the premises, 3% of the respondents strongly disagreed, 4%
disagreed, 1% were neutral, 32% strongly agreed and 60% of the respondents agreed as
shown in Figure 4.17.

3%
1%
4% Strongly Disagree
32% Disagree
Neutral
Agree
60%
Strongly Agree

Figure 4. 17: Accommodation and Hotel Premises

4.4.4 Accommodation Services

The respondents were asked whether leisure visitors are likely to spend a lot of time in
various accommodation services in respect to changes of the weather, 2% of the
respondents were neutral, 3% disagreed, 28% strongly agreed and 67% agreed as shown
in Figure 4.18. This implies that leisure visitors are likely to spend a lot of time in
different accommodation services in respect with weather changes.

2%
3%
Disagree
28%
Neutral
0% Agree
Strongly Agree
67% Strongly Disagree

Figure 4. 18: Accommodation Services

51
4.4.5 Hotel Amenities

The respondents were asked to indicate whether offering of indoor amenities within the
hotel rooms will motivate customers to use more services in the hotel, 2% of the
respondents were neutral, 3% disagreed, 28% strongly agreed, 0% strongly disagreed and
67% of the respondents agreed as shown in Figure 4.19. This means that offering of
indoor amenities will motivate customers to use more services in the hotel.

2%
3%
Disagree
28%
Neutral
0% Agree
67%
Strongly Agree
Strongly Disagree

Figure 4. 19: Hotel Amenities

4.4.6 Health Fitness Services

On the question whether most customers that are health conscious when provided with
health fitness services in the hotel will enhance customer attraction, 4% of the
respondents disagreed, 4% were neutral, 0% strongly disagreed, 36% strongly agreed and
56% agreed as shown in Figure 4.20. This implies that heal fitness services in the hotels
is essential for customer attraction.

4%

4% Disagree
36% Neutral
0%
Agree
Strongly Agree
56%
Strongly Disagree

Figure 4. 20: Health Fitness Services

52
4.4.7 Convenience

On the question whether customers look for convenience when booking hotel services,
2% disagreed, 3% were neutral, 0% strongly disagreed, 45% strongly agreed and 50%
agreed as shown in Figure 4.21. This means that customers look for convenience when
booking hotel services.

2%
3% Disagree
Neutral
45% 0% Agree
50% Strongly Agree
Strongly Disagree

Figure 4. 21: Convenience

4.4.8 Unique Services

When the respondents were asked to indicate whether offering unique services such as
sundowners and bush dinners would enhance customer loyalty, 3% of the respondents
disagreed, 3% were neutral, 0% strongly disagreed, 47% strongly agreed and 47% agreed
as presented in Figure 4.22. This indicates that the use of unique services enhances
customer loyalty for the hotel.

3%

3%
Disagree
Neutral
47% 0%
Agree
47%
Strongly Agree
Strongly Disagree

Figure 4. 22: Unique Services

53
4.4.9 Young Travelers and Hotel Services

On the question whether young travelers tend to enjoy adrenaline boosting services, 31%
of the respondents strongly agreed, 2% disagreed, 3% were neutral, 0% strongly
disagreed, and 64% agreed as presented in Figure 4.23. This implies that young travelers
tend to enjoy adrenaline boosting services offered by the hotels.

2%
3%
31% Disagree
Neutral
0%
Agree
64%
Strongly Agree
Strongly Disagree

Figure 4. 23: Young Travelers and Hotel Services

4.4.10 Charges on Additional Services

When the respondents were asked to indicate whether charges on additional services tend
to discourage potential customers, 41% of the respondents strongly agreed, 3% disagreed,
2% neutral and 54% agreed as shown in Figure 4.24. This indicates that charges on
additional services tend to discourage potential customers.

2%
3%

Disagree
41% Neutral
Agree
54%
Strongly Agree

Figure 4. 24: Charges on Additional Services

54
4.4.11 Services and Products Attraction

On the question whether some customers book Hyatt Hotels solely for the activities or
services provided as opposed to accommodation, 47% strongly agreed, 53% agreed, 0%
disagreed, 0% were neither neutral nor strongly disagreed as shown in Figure 4.25. This
means that some customers book the hotels solely for the services and products offered
rather than accommodation.

0%
Agree
47% Strongly Agree
53%
Neutral
Disagree
Strongly Disagree

Figure 4. 25: Services and Products Attraction

4.5 Operational Based Strategies and Response to Seasonal Fluctuations
This study sought to determine the effect of operational based strategies and response on
seasonal fluctuations at Hyatt Hotel. The findings are presented as follows:
4.5.1 Scheduling Capacity
The respondents were asked to indicate the extent to which scheduling capacity becomes
difficult during seasonal fluctuations, 9% were moderate, 31% very high extent and 60%
high extent as shown in Figure [Link] indicates that scheduling capacity becomes
difficult during seasonal fluctuations to a higher extent.

9%
31%
Very High
High
60%
Moderate

Figure 4. 26: Scheduling Capacity

55
4.5.2 Training

The respondents were asked to indicate he extent to which training of employees achieve
operational efficiency, 335 of the respondents indicated a very high extent and 67% a
very high extent as shown in Figure 4.27. This implies that training of employees is
essential in achieving operational efficiency in the hotel.

33%
Very High
High
67%

Figure 4. 27: Training

4.5.3 Outsourcing

On the question whether outsourcing has helped the hotels manage seasonal fluctuations,
47% of the respondents strongly agreed, 53% agreed, 0% neutral, 0% disagreed and 0%
strongly disagreed as shown in Figure 4. 28. This implies that outsourcing is essential in
managing seasonal fluctuations efficiently.

0%
Agree
47% Strongly Agree
53%
Neutral
Disagree
Strongly Disagree

Figure 4. 28: Outsourcing

56
4.5.4 Customer Satisfaction
On the question whether outsourcing of non-essential functions does not affect the level
of customer satisfaction, 3% of the respondents strongly disagreed, 3% disagreed, 53%
agreed, 41% strongly agreed and 0% were neutral as shown in Table 4.4. This implies
that outsourcing of non-essential functions does not affect the level of customer
satisfaction.
Table 4. 4: Customer Satisfaction

Scale Frequency
Strongly Disagree 2
Disagree 2 3.0
Agree 42 53.0
Strongly Agree 32 41.0
Neutral 0 0.0
Total 78 100.0

4.5.5 Training and Environmental Turbulence

On the question whether trained and empowered employees are able to handle any kind of
environmental turbulence, 3% strongly disagreed, 4% disagreed, 35% of the respondents
agreed, 58% strongly agreed and 0% were neutral as shown in Table 4.5. This implies
that trained and empowered employees are able to handle any kind of environmental
turbulence. Table 4. 5: Training and Environmental Turbulence

Scale Frequency
Strongly Disagree 2
Disagree 3
Agree 27
Strongly Agree 46
Neutral 0
Total 78

4.5.6 The Use of Technology

When the respondents were asked to indicate whether many visitors tend to prefer the use
of technology over human interaction in order to avoid errors in performing simple tasks,
3% of the respondents disagreed, 3% were neutral, 0% strongly disagreed, 39% agreed
and 55% strongly agreed as shown in Figure 4.29. This implies that many visitors tend to
prefer the use of technology over human interaction.

57
 3%

3%
Disagree
Neutral
0% 39% Agree
55%
Strongly Agree
Strongly Disagree

Figure 4. 29: The Use of Technology

4.5.7 Technology and Customer Experience

On the question whether the application of technology in hotel’s operations enhances

customer experience, 4% of the respondents disagreed, 5% were neutral, 0% strongly
disagreed, 45% strongly agreed and 46% agreed as shown in Figure 4.30. This implies
that the applications of technology in hotel’s operations enhances customer experience.

4% 5%
Disagree
45% 0% Neutral
46% Agree
Strongly Agree
Strongly Disagree

Figure 4. 30: Technology and Customer Experience

4.5.8 Technology and Human Interaction
The respondents were asked whether the use of technology can replace human interaction
when innovative technology is deployed, 4% of the respondents disagreed, 49% agreed,
0% neutral, 0% strongly disagreed and 47% strongly agreed as shown in Figure 4.31.
This implies that innovative technology can easily replace human interaction in hotel
operations.
58
 4%

Disagree
47% Agree
49%
Strongly Agree
0%
Neutral
Strongly Disagree

Figure 4. 31: Technology and Human Interaction

4.6 Human Resource Strategies and Response to Seasonal Fluctuations
This study sought to determine the effect of human resource strategies and response to
seasonal fluctuations at Hyatt Hotel. The Findings are presented as follows.
4.6.1 Technology
The respondents were asked to indicate whether technology significantly affects their job
performance, 13% of the respondents disagreed while 87% agreed by indicating a “yes”
as shown in Figure 4.32. This implies that technology affects job performance
significantly.

13%

Yes
No

87%

Figure 4. 32: Technology

4.6.2 The Significance of Human Resources
On the question whether human resources plays a significant role in responding to
seasonal fluctuations, 3% of the respondents disagreed, 4% neutral, 0% strongly
disagreed, 33% strongly agreed and 60% agreed as shown in Figure 4.33. This implies

59
that human resources plays a significant role in responding to seasonal fluctuations.

60
 3%

4%
Disagree
33%
Neutral
0%
Agree
Strongly Agree
60% Strongly Disagree

Figure 4. 33: The Significance of Human Resources

4.6.3 Emerging Needs

On the question whether human resource plays a significant role in addressing emerging
needs during seasonal fluctuations, 3% disagreed, 3% neutral, 0% strongly disagreed,
33% strongly agreed and 61% agreed as shown in Figure 4.34. This implies that human
resources is essential in addressing emerging needs of customers during seasonal
fluctuations in the hotel industry.

3%

3%
Disagree
33%
Neutral
0%
Agree
Strongly Agree
61% Strongly Disagree

Figure 4. 34: Emerging Needs

4.6.4 Employee Compensation

The respondents were asked to indicate whether employee compensation is critical for
hiring talented employees to cope up with seasonal fluctuations, 44% of the respondents

61
strongly agreed, 0% neutral, 0% disagreed, 0% strongly disagreed and 56% agreed as
shown in Figure 4.35. This implies that employee compensation is critical for hiring
talented employees to cope up with seasonal fluctuations.

0%
Agree
44%
Strongly Agree
56%
Neutral
Disagree
Strongly Disagree

Figure 4. 35: Employee Compensation

4.6.5 Recruitment and Selection

On the question whether the process of recruitment and selection enhances efficiency in
hiring quality staff, 4% of the respondents disagreed, 56% agreed, 40% strongly agreed,
0% neutral and 0% strongly disagreed as shown in Table 4.6. This implies that
recruitment and selection process enhances efficiency in hiring quality staff for the hotel.

Table 4. 6: Recruitment and Selection

Scale Frequency Percent

Disagree 3 4.0
Agree 44 56.0
Strongly Agree 31 40.0
Neutral 0 0.0
Strongly Disagree 0 0
Total 78 100.0

4.6.6 Quality Service

The respondents were asked to indicate whether the process of recruitment and selection
enhances quality service through qualified staff, 4% of the respondents disagreed, 3%
were neutral, 35% strongly agreed and 58% agreed as shown in Figure 4.36. This
implies that
62
the process of recruitment and selection enhances quality service through hiring qualified
staff.

4%
3%
35% Disagree
Neutral
58% Agree
Strongly Agree

Figure 4. 36: Quality Service

4.6.7 Human Resource Strategies

The respondents of this study were asked to indicate whether human resource strategies
are crucial in responding seasonal fluctuations to effectively respond to seasonal
fluctuations, 44% strongly agreed, 0% disagreed, 0% strongly disagreed, 0% neutral and
56% agreed as indicated in Figure 4.37. This implies that human resource strategies are
crucial in responding to seasonal fluctuations effectively in the hotel.

0%
Agree
44% Strongly Agree
56%
Neutral
Disagree
Strongly Disagree

Figure 4. 37: Human Resource Strategies

4.6.8 Training and Development

On the question whether employee training and development is essential in keeping up

with seasonal fluctuations, 0% disagreed, 0% neutral, 0% strongly disagreed, 49%
strongly
63
agreed and 51% agreed as shown in Figure 4.38. This implies that employee training and
development is essential in keeping up with seasonal fluctuations.

0%
Agree
Strongly Agree
49% 51% Neutral
Disagree
Strongly Disagree

Figure 4. 38: Training and Development

4.6.9 Talent Acquisition

When the respondents were asked to indicate whether recruitment and selection process
enhances talent acquisition into the organization, 2% of the respondents disagreed, 0%
were neither neutral nor strongly disagreed, 31% strongly agreed and 67% agreed as
shown in Figure 4.39. This implies that recruitment and selection process enhances talent
acquisition into the hotel.

2%
31% Disagree
0% Agree
Strongly Agree
67%
Neutral
Strongly Disagree

Figure 4. 39: Talent Acquisition

4.7 Correlation Analysis
This study sought to examine whether the relationships between the study variables
existed. In order to establish the relationship, a correlation analysis was conducted using
marketing innovation strategies, product and serviced based strategies, operational
based strategies
64
and human resource strategies as independent variables and seasonal fluctuations as
dependent variable.
The findings in Table 4.7 presents the correlation analysis to establish the relationship
among the study variables, the findings revealed that market innovation strategies had the
strongest and positive relationship with seasonal fluctuations, r (0.680); p-value < 0.01.
The relationship was statistically significant. The findings revealed a significant
relationship between product and service based strategies and seasonal fluctuations, r
(0.592); p-value
< 0.01. Furthermore, the findings revealed a significant relationship between operational
based strategies and seasonal fluctuations, r (0.579); p-value < 0.01. Finally, the
relationship between human resource strategies and seasonal fluctuations was also
statistically significant; r (0.266); p-value < 0.01.

Table 4. 7: Correlation Analysis

Variable 1 2 4 4 5
Seasonal Pearson 1
fluctuations Correlation
Sig. (2-
tailed)
N 78
Marketing Pearson .680** 1
Innovation Correlation
Strategies
Sig. (2- .000
tailed)
N 78 78
Product and Pearson .592** .624** 1
Service Strategies Correlation
Sig. (2- .000 .000
tailed)
N 78 78 78
Operation Based Pearson .579** .243* .252* 1
Strategies Correlation
Sig. (2- .000 .032 .026
tailed)
N 78 78 78 78
Human Resource Pearson .266** .152 .447** .139 1
Strategies Correlation
Sig. (2- .019 .185 .000 .224
tailed)
N 78 78 78 78 78

65
**. Correlation is significant at the 0.01 level (2-tailed).

66
4.8 Regression Analysis

A regression analysis was carried out to determine the level or the relationship when all
the study variables are combined. The findings revealed an adjusted R square value of
(0.655), implying that about (65.5%) or the variability in seasonal fluctuations response is
attributed to marketing innovation strategies, product and service strategies, operational
based strategies and human resource strategies as shown in Table 4.8. The remaining
(34.5%) variability on seasonal fluctuations response was attributed to other factors not
examined by this study.
Table 4. 8: Regression Analysis

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .820 .673 .655 .12071
a. Predictors: (Constant), Human Resource Strategies, Operational Based Strategy,
Marketing Innovation Strategy, Product and Service Based Strategy

The Analysis of Variance was carried out to examine whether the means of the study
variables were statistically significant. The findings revealed an F statistic value that is,
F(4, 73) = 37.512; p-value < 0.000. Since the p-value = 0.000 < 0.01), the variables are
statistically significant as shown in Table 4.9.
Table 4. 9: Analysis o Variance
ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 2.186 4 .547 37.512 .000b
Residual 1.064 73 .015
Total 3.250 77
a. Dependent Variable: Seasonal Fluctuations Response
b. Predictors: (Constant), Human Resource Strategy, operational Based Strategy,
Marketing Innovation Strategy, Product and Service Strategy

The coefficient model show that marketing innovation strategies had the highest Beta
coefficient β (0.463); p-value = 0.00; followed by operational based strategy with a Beta
coefficient β (0.414); p-value = 0.000. Product and service based strategies had a Beta
coefficient of β (0.171); p-value = 0.001 and finally human resource strategy had Beta

67
coefficient β (0.061); p-value = 0.004. The p-values < 0.05, therefore statistically
significant.
Table 4. 10: Coefficients Summary
Coefficientsa
Standardize
Unstandardized d
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .727 .347 2.092 .040
Marketing
Innovation .274 .052 .463 5.280 .000
Strategy
Product and
.140 .079 .171 1.769 .001
Service Strategy
Operational Based
.371 .062 .414 5.943 .000
Strategy
Human Resource
.063 .078 .061 .804 .004
Strategy
a. Dependent Variable: Seasonal Fluctuation Response

4.9 Chapter Summary

This chapter presented the findings obtained from the respondents on strategic response
on seasonal fluctuations at Hyatt Group. The first section provided background
information of the respondents. Second section of the chapter covered the findings on
market innovations strategies, followed by the findings on product and service-based
strategies, the findings on operational based strategies and lastly the findings on human
resource strategies in respect to seasonal fluctuations. The next chapter presents
discussion on the researcher’s findings, conclusions and recommendations.

68
 CHAPTER FIVE

5.0 DISCUSSION, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction
This chapter offers the summary of the study, discussion of the study, conclusions and
recommendations of each research objectives that guided the study. The summary of the
study is presented first, then followed by the discussion on market innovation strategies
and response, product and service based strategies, operational based strategies, and
human resource strategies and response on seasonal fluctuations. The conclusion and
recommendations are presented in the same order.

5.2 Summary
The purpose of this study was to determine the responsive strategies used by Hyatt hotels
during times of seasonal fluctuations. The study was guided by the following research
questions; What are market innovation strategies used by Hyatt Hotels during seasonal
fluctuations?; what are service and product based strategies used by Hyatt Hotels during
seasonal fluctuations?, what are operational based strategies used by Hyatt Hotels during
seasonal fluctuations? And lastly what are human resource strategies used by Hyatt
Hotels during seasonal fluctuations.
Descriptive research design was used for this particular study, a population of 261
employees working for Hatt Group of Hotels was used to draw a sample of 104
respondents. The study used a questionnaire to collect primary data from the respondents.
Data analysis was done using both descriptive and inferential statistics. Descriptive
Statistics analyzed frequencies and percentages and inferential statistics analyzed
correlation and regression analysis. The findings were presented using tables and figures.

The first research objective sought to determine the market innovation strategies and
response to seasonal fluctuations at Hyatt Hotel. The findings of the study revealed that
there is a significant relationship between market innovation strategies and seasonal
fluctuations response, r (0.680); p-value < 0.01. The second research objective sought to
determine product and service strategies and seasonal fluctuation response. The findings
of the study revealed that there is a significant and statistical significant relationship
between product and service based strategies and seasonal fluctuations response, r
(0.592); p-value

69
< 0.01.

70
The third research objective sought to determine operational based strategies used in
seasonal fluctuations response. The findings of the study revealed that there is a
significant relationship between operational based strategies and seasonal fluctuations
response, r (0.579); p-value < 0.01. The fourth research objective sought to determine
human resource strategies used in seasonal fluctuations response. The findings of the
study revealed that there is a significant relationship between human resource strategies
and seasonal fluctuations response, r (0.266); p-value < 0.01.

5.3 Discussion
5.3.1 Market Innovation Strategies and Response to Seasonal Fluctuation
This study sought to determine market innovation strategies and response to seasonal
fluctuations. The findings revealed that there is significant relationship between market
innovation strategies and seasonal fluctuations response. According to Lai and Baum
(2015) response strategies are the approaches that companies can make in response to
dealing with the environmental changes including emerging market needs identified or
perceived to be affecting the operations of the business in one way or another. Gibbs and
Guttentag (2018) indicate that an ideal response strategy consists of at least four main
components that is the scope defining companies and business like the present and
planned interactions with its environment, competence being the indication of the level
and patterns of the firm’s competition, competitive advantage that ensures the unique
position of the business developed vis-à-vis its competitors through its resource allocation
and most importantly synergy that is the joint effect that are sought by the company from
its resources allocation and the company scope decisions.

In addition, Wong (2014), argues that firms that do not effectively respond to the
environmental factors are not likely to succeed in business. Essentially, a company’s
response strategies can be divided into operational and strategic involving two kinds of
thinking. Strategic strategies are directional and fundamental while operational strategies
primarily affect the daily implementation of strategic decisions. According to Snachez
and Satir (2015), strategic decision need to consider the entire company and represent a
complex aspect of business planning. Strategy on the other hand, should entail major
changes for the company and recognize that the business environment that it is dynamic
and continues to evolve. The aim of making strategic decisions is to implement policies
that focus on moving the organization towards its long-term goals while at the same time

71
taking into account the resources of the organization, threats and available opportunities
(Yang, 2012).

The findings of this study show that marketing efforts are crucial for addressing seasonal
fluctuations in the hotel. These findings are in line with Jawardena (2017), whoc indicates
that one of the major challenge has come prominence for many hotels and
accommodation providers around the world is to best cope up with the seasonal
fluctuations with an attempt of addressing the demand for the services and
accommodation. Seasonal fluctuations in the hotel industry has made forced some hotels
close their doors during the summer months. The author further indicates that in Australia
since it is regarded as traditional off-peak period. In doing so, the hotels have forgone the
opportunity of attaining high revenues from increased operations beyond the so called
traditional snow base period. However, in other parts of the world, there is still a clear
evidence of a significant shift existing towards all season operations alongside with the
incorporation of a wide range of various types of summer outdoor recreation programs.
Due to demand during the off-season, operations of hotels are challenged because of their
over-capacity, reduction in the workforce, non- utilization of the infrastructure, and non-
attraction of investments that are geared during this period of time (Pegg & Patterson ,
2012).. The seasonal fluctuations in demand presents an ongoing problem for managers in
the hotel industry on how they can effectively cope up with the situation in the long run,
without affecting their operations (Ortega, 2016).

The findings of the study show that pricing decisions is essential in maintaining sales
targets as well as revenues for the hotel. According to Maharjan (2013), one of the
response strategic response towards seasonal fluctuations is the pricing decisions. This is
an important and critical issue to be considered whether the hotel should use single prices
or different prices for the same product. Furthermore, he argues that having a single or
similar price can easily be understood by both the customer and the seller but it also
reduces the chance of the marketer that develops adversarial relationship with the
customers. There various methods of pricing strategy, where differential pricing is one
strategy for pricing. This means that charging different prices to different buyers for the
same quality of the product. According to Moriarty and Jones (2014), they view
differencing pricing as charging different price to the different guests on the same room
and facilities for instance the hotel may charge different prices like $50, $100, or $120

72
per night for different customers and if they wish to pay the allocated amount then
differencing pricing is applied

73
for that particular hotel. Gibbs and Guttentag (2018), the market must be consisting of
multiple segments that have different price susceptible for effective differential pricing.
There many ways for differential pricing, such as secondary market pricing, negotiated
pricing, random discounting and periodic discounting.

5.3.2 Product and Service Based Strategies and Response to Seasonal Fluctuation
This study sought to determine product and service based strategies and response to
seasonal fluctuation. The findings of the study revealed that there is a significant
relationship between product and service based strategies and response to seasonal
fluctuation. According to Kotler (2014), product differentiation is the combination of
varying items like the form of the product, durability and reliability of the product,
features, performance, and conformance to quality. Wilson (2016), product and service
strategies on the other hand focus all of their promotion on the items being sold and their
availabilities. These strategies can be used by various retail outlets and the hotel industry
that wish to sell their large selection of services and products to a large portion of the
consumer market. Product and service based strategies can also refer to the
innovation that defy straightforward classification in terms of the existing service
categories or product lines to match with changing needs of consumers while at the same
time coping up with business environmental factors. This can be done through
differentiation, product extension and innovation.

According to Greenley and Matcham (2016), product and service based strategies is a
process of continually and systematically assessing the needs of the market and
differentiate various segments that will support service development and innovations
catering for those needs in the most feasible and economic manner. Alamu and Dwyer
(2012), the hotel industry is made considerably easier when approached in a systematic
manner that is built on ultimate selling propositions and benefit statements that the
consumers are looking for in accommodation. This will then dictate the balance that exist
between pull and push based strategies that are focused towards selling the service. These
strategies seek product growth by developing new products and services for the existing
markets while at the same time creating new needs through innovation that will help the
hotel and the entire accommodation industry to have businesses during low seasons. The
innovations of new services informed by the needs of consumers such as tourists will be

74
attracted to the new offers of products that the hotel offers during low seasons motivating
them to plan in advance (Arora & Sandhu, 2018).

The findings of this study revealed that Products and services are essential for the
company’s business performance. These findings are in line with Murari and Tater
(2014), who argue that whenever a company wants to exploit the gains of the service and
product differentiation, they should invest in service and product attributes that are highly
valued with their customers. This will guarantees the company, high returns, customer
retention during low seasons, and a sustainable business venture even in the dynamic
business environment. Such companies especially in the service industry they can carry
out a survey or engage a consultant to ascertain the specific differentiating attributes that
are valued by customers. According to Akdag and Zineldin (2011), companies should
also look into prices of their services as a differentiating factor and it should be balanced
on the basis of the quality of the service being rendered. One of the most important factor
to consider in service differentiation is customer service especially after selling the
service.

The findings of the study also revealed that accommodation attributes enhances customer
retention in the hotel business. These findings confirms with the work of Maharjan
(2013), arguing that accommodation attributes needs to be addressed based on the factors
that influence its demand so that the hotel is able to cope up effectively with the seasonal
fluctuations that take place in the business environment. According to Alsetoohy (2018),
the demand for accommodation is influenced by the location of the hotel premises, the
fixity of premises and seasonality related occupancy levels. Quality is also significant in
accommodation since most consumers anticipate the best quality in return for their
money, as for most sectors of the travel and tourism sector, technology advancements
have a significant impact on operations. Internet booking for instance has had a positive
effect on the demand for accommodation. It is important that the hotels incorporate the
technological aspects in their accommodation for both efficiency and attaining
competitive advantage that is crucial during low seasons.

5.3.3 Operational Based Strategies and Response to Seasonal Fluctuations

This study sought to determine operational based strategies and response to seasonal
fluctuations. The findings of the study found out that there is a significant relationship
75
between operational based strategies and response to seasonal fluctuations. According to

76
Tavitiyaman, Qui and Qu (2012), operational strategies are concerned with how the
elements of the organization delivers effectively the corporate and business level
strategies that involve the use of resources, human talent and processes that is how
corporate and business level strategies can be translated into concrete operational
activities and processes in areas such as manufacturing, marketing, research and
development, personnel and finance.

According to Greenley and Matchan (2016), organizations pursue strategies that are
directed towards improving the effectiveness of basic operations within the firm, such as
finance, marketing, materials management and human resources. Despite the strategies
may be focused on a given function, they tend to embrace two or even more suctions
requiring cooperation among others to attain a companywide efficiency, customer
responsiveness goals and quality innovation. Burreda and Zubieta (2017), the key to
developing an effective operational strategy lies in comprehending how to the company
can create or add value for customers and the value is added through competitive
advantage priorities which are selected to offer support to a given strategy all the time.
The four basic priorities that highly depends on operational strategy include; delivery,
flexibility, cost and quality. These priorities translate into attributes used in describing
different process by which the firm can add value to its services at any given time of the
business.

The findings also revealed that operational strategies enhances competitive advantage of
the hotel. The findings confirm with the work of Golemski (2017), one of the most
significant factors that affect the success of hotel management in today’s global
competitive environment is the ability to make a difference through operations in the
hotel industry. Alamu and Dwyer (2012), argues that in order for the company to stay
competitive throughout, they should restructure their basic operational strategies,
rediscover the industry they are in and have the capability of creating a difference through
product and service offering. Today, it is becoming increasingly important obligation for
companies to realize the differentiation in customer needs before their competitors.
Consequently, companies that are able to offer service and products that have different
attributes in the fastest way are able to survive. In the context of hotel establishment,
being in a position to predict how the future developments shall progress and contribute
to the establishment is very crucial.
77
The findings of the study also revealed that training of employees enhance efficiency in
the organization through the workforce. According to Alananzeh, Mahmoud and Ahmed
(2015), employees are the most crucial component for success in the hotel industry
specifically the front office employees which is considered to be the most important
department in the hotels. This department handles communication with the guests,
handling complains and offering all the information that guests require about the hotel, or
any other information that the guest needs. Golembski (2017), argues that skilled and well
trained receptionist for instance, makes the guest feel welcomed as they get a charming
first impression. In addition the front line employees offer a sense of comfort to the
visitors by making them feel at home from the moment they arrive at the hotel.
Furthermore the role of the front line employees can be challenging, because handling a
multitude of tasks to keep the wheels of the company running smoothly. Thus, the
frontline office of any hotel plays a critical role in forming the guests’ experience in the
hotel industry as whole while at the same time contributing to an increased business
during the low season.

5.3.4 Human Resource Strategies and Response to Seasonal Fluctuations

This study sought to determine human resource strategies and response to seasonal
fluctuations. The findings of the study revealed a significant relationship between human
resource strategies and response to seasonal fluctuations. According to Alamu and Dwyer
(2012), organizations operate in an open system with different factors having to influence
the direction of the organization. Companies have no guarantee for prosperity and the
survival due to the increased competitive nature of the sectors in the environment
therefore has to come up with strategic responses. According to Jolliffe and Farnsworth
when a firm flops at responding to a threat, the damages that arise keep accruing. In order
for an organization to maintain a competitive advantage, the company needs to carry out
environmental scanning for both external and internal environment and be able to respond
appropriately (Alananzeh, Mahmoud , & Ahmed, 2015). Therefore for a company to have
an effective strategic response they need to be well versed on the potential impacts of the
modest changes upon individuals and how to react to the probable sources of change
resistance. Due to rapid changes in the dynamic business environment strategic responses
are quite essential in evading obsoleteness of the existing strategies (Gibbs & Guttentag,
2018).

78
The findings of the study show that recruitment and selection process enhances quality in
the organization. According to Arora and Sadhu (2018), recruitment and selection usually
forms a significant part of the duties of human resource management professional within
an organization, in particular hotels and effective recruitment and selection is a significant
aspect of SHRM formulation and implementation. Recruitment and selection is always
presented as an intended rational activity, involving certain chronologically-linked stages
in the process of employee resourcing (Golembski, 2017). The process of recruitment
begins with creating a pool of qualified applicants and the selection involves picking the
right individual from that pool, who can effectively execute the task more effectively. If
managed efficiently the recruitment and selection can help in mitigating staff turnover
exerting a strong effect on organization’s culture. Since the responsibilities of non-
managerial employees’ are repetitive and easily trained, most hotels prefer to focus on the
attitude and the behavior and consider them as a vital skill requirements in employee
selection (Murari & Tater , 2014).

In addition to that, Moriarty and Jones (2014), the importance and significance of training
and development to organizational development and performance has been recognized by
many scholars. Alananzeh, Mahmoud and Ahmed (2015), is of the view that training and
development has been identified as not the only supportive but central to the business
strategy and should be given consideration needed. As the result, companies have been
advised to formalize and structure training programs as much as possible if the desired
benefits are to be attained. The hotel industry is regarded for being labor intensive and
therefore a need to formalize their training and programs. This is critical since it could
help them improve the knowledge and skills of their employees in order to maintain
customer satisfaction (Jones, Hillier , & Comfort , 2014).

The findings of the study revealed that employee compensation is essential in retaining
the organizational workforce. According to Golembski (2017), compensation systems and
policies are one of the many of the several human resource practices that organizations
use to retain their employees. Several sectors including hotels are mainly dependent on
employees to offer high quality services to their guests. Therefore, human resource
practices that enhance the hiring and retaining of quality staff are of strategic importance
to the company. For hotels to obtain their monetary value, motivate and maintain its
highly skilled workforce, it’s vital to ensure that its compensation systems are handled
79
properly.

80
According to Alamu and Dwyer (2012), compensation policies are planned in a manner
that encourages maximum employee commitment and productivity. This will reduce labor
costs that becomes a vital component of Human Resource. Hotels being like any other
organization are therefore advised to appropriately create a system that would motivate
productivity and help in attracting and retaining employees since this is considered to be
the core element of all employer-employee relationship (Alsetoohy, 2018).

5.4 Conclusion
5.4.1 Market Innovation Strategies and Response to Seasonal Fluctuation
This study concludes that there exists a significant a relationship between market
innovation strategies and response to seasonal fluctuation. This study concludes that
market efforts are essential in meeting revenue targets as well as hotels through
advertisement of service packages. This study also concludes that market efforts
undertaken by the hotel enhances customer sustainability as the organization is able to
obtain a competitive advantage that is essential in customer retention as well as potential
clients’ attraction.
5.4.2 Product and Service Based Strategies and Response to Seasonal Fluctuation
This study concludes that there exists a significant and positive relationship between
product and service based strategies and response to seasonal fluctuation. Product and
service based strategies is essential in developing accommodation attributes that increase
the stay of customers in the hotel. This study concludes that product extension is essential
for extending high peak season for the hotel by offering different products and service in
the hotel. This study concludes that offering unique services such sundowner and bush
parties to hotel customer enhances customer loyalty that is crucial for the hotel to
effectively address seasonal fluctuations.

5.4.3 Operational Based Strategies and Response to Seasonal Fluctuations

This study concludes that there is a positive relationship between operational based
strategies and response to seasonal fluctuation. This concludes that operational based
strategies enhances operational efficiency in the organization by effectively mobilizing
organizational resources. This study concludes that product and service based strategies is
a process of continually and systematically assessing the needs of the market and
differentiate various segments that will support service development and innovations
catering for those needs in the most feasible and economic manner.

81
5.4.4 Human Resource Strategies and Response to Seasonal Fluctuations
This study concludes that human there is a relationship between human resource
strategies and response to seasonal fluctuations. Human resource strategies play a bigger
role in hiring the best candidates that have the right skills to address emerging needs in
the market as well as seasonal fluctuations in the hotel industry. This study concludes that
employee compensation enhances employee retention. This study also concludes that
training and development enhances quality in the organization. Quality in the
organization is enhanced through hiring quality qualified and experienced staff that will
deliver the best value to customers.

5.5 Recommendations
5.5.1 Recommendations for Improvement
[Link] Market Innovation Strategies and Response to Seasonal Fluctuation
Since this study found a significant and positive relationship between market innovation
strategies and response to seasonal fluctuations. This study recommends that Hyatt Hotel
should partner up with various marketing and advertising agencies in order to create
awareness of their hotel services including accommodation and other activities relating to
their core business. This study also recommends that Hyatt Group should make used of
pricing decisions when marketing their service in order to attract both the locals and
international customers.

[Link] Product and Service Based Strategies and Response to Seasonal Fluctuation
This study recommends that Hyatt Hotel should develop products and services that are in
line with seasonal fluctuations in tourism industry. The hotel should develop innovative
services as well as products that takes care of all age groups to allow different people to
visit the hotel and have the experience. The hotel can develop services for couples,
families and young travelers so that they are all accommodated in line with their sought
needs and wants.

[Link] Operational Based Strategies and Response to Seasonal Fluctuations

This study recommends that Hyatt Hotel should deploy operational based strategies that
effectively addresses the needs that come along with seasonal fluctuations in the hotel
industry. This study recommends that Hyatt Hotel can make use of technology to
effectively handle simple tasks to ensure that convenience is met among its customers.
This
82
study recommends that training of employees should also be done to ensure that they
effectively cope up with emerging needs in the market.

[Link] Human Resource Strategies and Response to Seasonal Fluctuations

Since this study revealed a significant relationship between human resource strategies and
response to seasonal fluctuations. This study recommends that Hyatt Hotel should carry
out a recruitment and selection process that takes into consideration the skills of an
employee in coping up with seasonal fluctuations. This study also recommends that
Serana Hotel should align its employee compensation system with the needs of the
employees to enhance their retention as well as loyalty to address seasonal fluctuations
effectively.

5.5.2 Recommendation for Further Studies

This particular study was limited to strategic response on seasonal fluctuations within the
hotel and tourism industry with Sarana Group of Hotels as the case study. Future studied
should widen the scope by researching on strategic response to seasonal fluctuations in
agriculture industry, education, travel agencies, airline and manufacturing industry.

83
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 APPENDICES

Appendix I- Letter of Introduction

Date: ………
Dear respondent,
My name is Akash Patel. I am an M.B.A student at United States International
University- Africa (USIU-A), majoring in Strategic Management. The university requires
that students partake a final project in accordance with the academic requirements,
pending graduation. The topic of my research is “Strategic Response on Seasonal
Fluctuations within the Hotel and Tourism Industry: A Case of Hyatt Group of
Hotels”. I invite you to participate in this research study by completing the attached
survey questionnaire.
Information obtained from respondents will strictly be used for academic purposes only.
In order to ensure that all information remains confidential, please do not include your
name. If you choose to participate in this survey, kindly answer all questions as truthfully
as possible and retain the completed questionnaires until research assistants collect them
back. Participation is strictly voluntary though I would encourage as many people to take
this survey as it will be beneficial both to your organization and to my research study as
well. The data obtained for this research will remain private and confidential and will be
used for purpose of this study only.
Thank you for taking your time to assist me in my academic endeavors. Should you
require additional information or have any questions, my contact details are listed below.

Sincerely,
Akash Patel
Phone number- 0707 942444
Email- akaspatel86@[Link]

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 Appendix II: Questionnaire
Data collected in this survey is intended for academic purposes only and will be used in
partial fulfillment of an MBA research project to investigate strategic response on
seasonal fluctuations within the hotel and tourism industry. All information gathered will
be handled with utmost confidentiality. There are 5 sections.

SECTION A: BACKGROUND INFORMATION

Please tick the most appropriate choice.
1. Gender:
Male [ ] Female [ ]

2. In which age bracket do you lie?

Below 21 years [ ] 21- 30 years[ ] 31 – 40 years [ ] 41 – 50 years [ ]
Over 50 years [ ]

3. Highest level of Education attained

Secondary [ ] Certificate/Diploma [ ] Bachelors Degree [ ]
Masters Degree [ ] Others [ ]

4. What cadre of staff do you fall under?

Top managers [ ] Middle level managers [ ] Supervisor [ ]
Other staff [ ] Support staff [ ]

5. Kindly indicate your department

Front office [ ] Sales and marketing [ ] Finance and Accounting [ ]
Operations [ ] Food and beverage services [ ]

6. Duration of continuous service with the hotel

Less than a year [ ] 1- 5 years [ ] 6-10 years [ ] 11-15 years [ ]
Over 15 years [ ]

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SECTION B: MARKET INNOVATION STRATEGIES& PERFORMANCE
7. To what extent, in your opinion, does marketing affect the hotels performance
during seasonal fluctuations?
Very high [ ] High [ ] Moderate [ ] Low [ ] Negligible [ ]

8. Kindly indicate the extent to which you agree with the following statements.
(where; 5 strongly agree, 4 agree, 3 neutral, 2 disagree and 1 strongly
disagree)

Statement 5 4 3 2 1
Marketing efforts helps to sustain customers during
seasonal fluctuations
Lowering prices during off –peak season will help
maintain the desired level of room sales.
Charging lower prices for residents and higher prices for
non-residents during peak season achieves 100%
occupancy.
High pricing during off –peak season helps to achieve
revenue targets without marketing efforts.
Allowing special events and parties during off –peak
season helps achieve revenue targets.
Targeting school children and domestic tourists during off
peak period helps maintain sales levels.
It is possible to extend the season by charging lower rates
at the beginning and end of the peak season.
Introduction or development of festivals and events will
increase visitations during low seasons
Complementary services and themed offers will help to
extend the peak season

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SECTION C: PRODUCT AND SERVICE BASED STRATEGIES
10. To what extent would changes in products and services affect seasonality at Hyatt
hotels?
Very high [ ] High [ ] Moderate [ ] Low [ ] Negligible [ ]

11. Kindly indicate the extent to which you agree with the following
statements. (5 strongly agree, 4 agree, 3 neutral, 2 disagree and 1 strongly
disagree)
Statement 5 4 3 2 1
Accommodation is a core product of the tourism industry.
The demand for accommodation is influenced by the
location of the hotel premises.
Leisure visitors are likely to spend a lot of time in different
accommodation services when the weather is poor.
Offering indoor games within rooms will motivate
customers to spend more time indoors.
Most clients are health conscious and having a gym or
yoga instructions will help attract customers.
Travelers look for convenient, conformable and efficient
rooms when selecting holiday destinations.
Offering unique services such as sundowners, bush dinners
and picnic lunches are appreciated by customers.
Young travellers enjoy more adrenaline boosting services
such as balloon safari and horse riding in the national
parks.
The charges on additional services and activities turns
away several potential customers.
Some customers book Hotel hotels solely for the activities
or services provided rather than the accommodation.

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SECTION D: OPERATIONAL BASED STRATEGIES
13. To what extent does it become difficult to schedule capacity during
seasonal fluctuations?
Very high [ ] High [ ] Moderate [ ] Low [ ] Negligible [ ]

14. To what extent does training of employees help to achieve operational efficiency?

Very high [ ] High [ ] Moderate [ ] Low [ ] Negligible [ ]

15. Kindly indicate the extent to which you agree with the following
statements. (5 strongly agree, 4 agree, 3 neutral, 2 disagree and 1 strongly
disagree)

Statement 5 4 3 2 1
Outsourcing has helped Hyatt hotels manage seasonal
fluctuations efficiently.
Outsourcing non- essential functions does not affect the level
of customer satisfaction.
Trained and empowered employees are able to handle any
kind of environmental turbulence.
Many visitors tend to prefer technology over human
interaction to avoid errors in performing simple tasks.
Application of technology in the hotel’s operations enhances
the experience of the customer.
Technology can replace humans and employees will loose
jobs if an innovative technology is deployed.
Offering unique services such as sundowners, bush dinners
and picnic lunches are appreciated by customers.

16. Does Technology affect your job significantly?

Yes [ ] No [ ]

17. If yes, how has technology impacted your role within the hotel?

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SECTION E: HUMAN RESOURCE STRATEGIES AND SEASONAL
FLUCTUATIONS

18. Kindly indicate the extent to which you agree with the following statements.
(5 strongly agree, 4 agree, 3 neutral, 2 disagree and 1 strongly disagree)

Statement 5 4 3 2 1
Human resource plays a significant role in responding to
seasonal fluctuations.
Human resource plays a significant role in meeting emerging
needs during seasonal fluctuations.
Employee compensation process critical for hiring talented
employees to cope up with seasonal fluctuations.
Recruitment and selection process enhances efficiency by
hiring qualified staff.
The process of recruitment and selection enhances quality in
service.
Human resource strategies are crucial for responding
effectively to seasonal fluctuations.
Employee training and development is essential in keeping
up seasonal fluctuations.
Recruitment and selection enhances talent acquisition into
the company.

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