The Kakuli Report

FACTORS AFFECTING A SMOOTH AND PROFITABLE RUNNING OF HOTELS
WITHIN BONDO TOWN, SIAYA COUNTY IN KENYA.
BY
SIFUNA KAKULI BRIAN,
B231/0134/2019.
A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF TOURISM AND

HOSPITALITY MANAGEMENT IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE DEGREE OF BACHELOR OF INTERNATIONAL
TOURISM MANAGEMENT IN THE SCHOOL OF BUSINESS AND ECONOMICS,
JARMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY.
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DECLARATION
This project is my original work and has not been presented in any other university or college for
the award of degree, diploma or certificate.
Signature …………………………. Date………………..
SIFUNA KAKULI BRIAN
B231/0134/2019
APPROVAL
This research project was submitted for examination with my approval as the Jaramogi Oginga
Odinga of Science and Technology Supervisor.
Signature………………………...... Date……………….
DR. DOROTHY ONYANGO ONJWA.
DEPARTMENT OF TOURISM AND HOSPITALITY MANAGEMENT SCHOOL OF

BUSINESS AND ECONOMICS.
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ACKNOWLEDGEMENT
I would like first to thank the Almighty God for His sufficient graces of knowledge, wisdom,
care, and guidance in everything as far as this research proposal is concerned. Secondly, I really
appreciated Jaramogi Oginga Odinga University of Science and Technology management led by
our supervisor; Dr. Dorothy Onyango Onjwa for advices and correction for perfection of my
proposal. Thirdly, I really recognize and appreciate my fellow classmates for their support
especially in brainstorming about this topic. Lastly, I appreciate my guardian, Aunt Anastacia
Dominic for support financially and words of encouragement together with church members of
St. Kizito Catholic Church; May the almighty God bless you all.
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DEDICATION
This research report is dedicated to my Aunt Anastacia Dominic, Dr. Dorothy Onyango and Mr.
Vincent Sanya. They have been great pillars to this proposal directly and indirectly, may the
Almighty and ever Living God bless you abundantly.
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ABSTRACT.
The effectiveness of a hotel operation, the passion of hotel team members and the attitude of all
stakeholders determines how long a hotel is going to stay active and profitable. A best operating
hotel has to satisfy the needs and expectations of customer and also making profit enough to
meet its objectives and goals. The smooth and profitable running of hotels has been affected by a
series of factors leading to many dormant hotels which cannot meet customer needs and
expectations and also meet organizational objectives and goals. The purpose of this study aimed
at investigating; factors affecting a smooth and profitable running of Hotels within Bondo town
in Siaya county, Kenya. The specific objectives of this study included; to identifying internal and
external environmental factors that affect the hotels within Bondo town, and also to establish
performance of the hotels in Bondo town. This helped to pull out all current issues which affect
hotels within Bondo town and also globally. The external businesses, organizations, and the
community can benefit through this by getting informed and having a productive business
environment. The target population was the employees from the selected rated Hotels within
Bondo town including the management, middle management (supervisors) and the staff. The
study used questionnaires, interviews and observation as the instruments of collecting data for
analysis. The results that were gotten after analyzing the data were given in two dimensions
whereby, some of the internal factors that were found affecting the hotels were; Human and
capital resources, Quality of products and services, Organization strategies and plans,
Organization culture and structure and physical developments. Some of the external environment
factors found were Ecological conditions, Economic conditions, Social cultural factors,
Technological factors, legal factors and the political factors. From the managers they explicitly
answered the interview questions by giving a detailed information about the challenges they do
face in their duties and as the hotel at large. During the observation was found that all the
responses given were in line all the things the researcher could see within the hotels. The finding
of these results were the possible solutions to many problems that are affecting the hotel industry
within Bondo town. The researcher recommended for further studies in this vulnerable industry
to ensure we have a smooth and profitable running of the hotels.
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TABLE OF CONTENTS
DECLARATION ..................................................................................................................................ii
ACKNOWLEDGEMENT .....................................................................................................................iii
DEDICATION ....................................................................................................................................iv
ABSTRACT. ........................................................................................................................................v
LIST OF TABLES. ............................................................................................................................... xi
LIST OF FIGURES .................................................................................Error! Bookmark not defined.
CHAPTER ONE ................................................................................................................................. 1
1.0 INTRODUCTION. .................................................................................................................... 1
1.1 Background of the Study. ...................................................................................................... 2
1.2 Problem statement. .............................................................................................................. 3
1.3 General objective .................................................................................................................. 4
1.3.1 Specific Objectives of the study...................................................................................... 4
1.4 Research Questions. .............................................................................................................. 4
1.5 Hypothesis. ............................................................................................................................ 4
1.6 Justification of the study. ...................................................................................................... 5
1.7 Significance of the study. ...................................................................................................... 5
1.8 Scope of the study. ................................................................................................................ 5
CHAPTER 2....................................................................................................................................... 6
2.0 Literature Review .................................................................................................................. 6
2.1 Theoretical Literature review. ............................................................................................... 6
2.1.1 The Otus theory. (Developed by Paul Slattery in 2009) ................................................. 6
2.1.2 The Structural Contingence Theory Developed by Pennings, J. M. (1987). ................... 6
2.2 Conceptual Literature Review ............................................................................................... 7
2.2.1 External environment factors that affect the smooth and profitable operation of
hotels. ...................................................................................................................................... 7
2.2.2 Internal environment factors that affect the smooth and profitable running of hotels.
................................................................................................................................................. 7
2.2.3 Weaknesses of measures that Hotels put in place to control their operations. ........... 8
2.3 Conceptual Framework. ........................................................................................................ 9
2.4 Empirical Literature review. ................................................................................................ 10
CHAPTER 3. ................................................................................................................................... 15
vi
METHODOLOGY. ........................................................................................................................... 15
3.0 Introduction......................................................................................................................... 15
3.1 Study Area. .......................................................................................................................... 15
3.2 Research design................................................................................................................... 15
3.3 Target Population. ............................................................................................................... 15
3.4 Sampling size and Sampling Technique. ............................................................................. 16
3.5 Data collection instrument.................................................................................................. 19
3.6 Validity and Reliability. ........................................................................................................ 19
3.6.1 Validity. ......................................................................................................................... 19
3.6.2 Reliability. ..................................................................................................................... 19
3.7 Data analysis........................................................................................................................ 19
3.8 Data collection procedure. .................................................................................................. 19
3.9 Ethical considerations. ........................................................................................................ 20
3.10.1 Privacy and confidentiality. ........................................................................................ 20
3.10.2 Informed consent. ...................................................................................................... 20
3.10.3 Voluntary participation............................................................................................... 20
CHAPTER FOUR. ............................................................................................................................ 21
RESULTS AND INTERPRETIONS. .................................................................................................... 21
4.0 General Information. ........................................................................................................... 21
4.1 Demographic Profile of the study. ...................................................................................... 21
4.2 How the external environment affects the hotel operations? ........................................... 22
4.2.1 Effects of Political instabilities. ..................................................................................... 23
4.2.2 Effects of legal factors .................................................................................................. 24
4.2.3 Effects of Economic factors .......................................................................................... 24
4.2.4 Effects of Social Culture. ............................................................................................... 25
4.2.5 Effects of Information Communication Technology (ICT) ............................................ 26
4.2.6 Effects of Ecological factors. ......................................................................................... 27
....................................................................................................................................................... 27
4.2.7 Effects of Globalization ................................................................................................. 27
4.3 How the internal environment affects the hotel operations? ............................................ 28
4.3.1 Effects of employee skills level. .................................................................................... 28
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4.3.2 Effects of product and service quality. ......................................................................... 29
4.3.3 Effects of Hotel strategies and plans. ........................................................................... 30
Table 4.3.4 Effects of Hotel structure and culture. ............................................................... 31
4.3.5 Effects of hotel physical development. ........................................................................ 32
CHAPTER FIVE. .............................................................................................................................. 33
DISCUSSION OF THE RESULTS. ...................................................................................................... 33
5.0 Introduction......................................................................................................................... 33
5.1 The effects of external environment .................................................................................. 33
5.1.1 Does Political Stability affect the smooth and profitable running of hotels within
Bondo town? ......................................................................................................................... 33
5.1.2 Does Legal Factors affect the smooth and profitable running of hotels within Bondo
town? ..................................................................................................................................... 33
5.1.3 Does Economic Factors affect the smooth and profitable running of hotels within
Bondo town? ......................................................................................................................... 34
5.1.4 Does social cultures affect the smooth and profitable running of hotels within Bondo
town? ..................................................................................................................................... 34
5.1.5 Does information communication technology affect the smooth and profitable
running of hotels within Bondo town? .................................................................................. 34
5.1.6 Does ecological factors affect the smooth and profitable running of hotels? ............ 35
5.1.7 Does Globalization affect the smooth and profitable running of hotels? ................... 35
5.2 The effects of internal environment ................................................................................... 35
5.2.1 Does skills level of employee affects a smooth and profitable running of hotels within
Bondo town? ......................................................................................................................... 35
5.2.2 Does Product and service quality affect a smooth and profitable running of hotels
within Bondo town? .............................................................................................................. 36
5.2.3 Does Hotel strategies and plans affect a smooth and profitable running of hotels in
Bondo town? ......................................................................................................................... 36
5.2.4 Does hotel culture and structure affect a smooth and profitable running of hotels in
Bondo town? ......................................................................................................................... 37
5.2.5 Does physical development affect a smooth and profitable running of hotels in Bondo
town? ..................................................................................................................................... 37
CHAPTER SIX.................................................................................................................................. 38
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION. .................................... 38
viii
6.0 Introduction......................................................................................................................... 38
6.1 The effects of external environment .................................................................................. 38
6.1.1 How Political Stability affect the smooth and profitable running of hotels within
Bondo town. .......................................................................................................................... 38
6.1.2 How Legal Factors affect the smooth and profitable running of hotels within Bondo
town. ...................................................................................................................................... 38
6.1.3 How Economic Factors affect the smooth and profitable running of hotels within
Bondo town. .......................................................................................................................... 39
6.1.4 How social cultures affect the smooth and profitable running of hotels within Bondo
town. ...................................................................................................................................... 39
6.1.5 How information communication Technology affect the smooth and profitable
running of hotels within Bondo town. .................................................................................. 40
6.1.6 How ecological factors affect the smooth and profitable running of hotels. .............. 40
6.1.7 Effects of Globalization ................................................................................................. 40
6.2 The effects of internal environment. .................................................................................. 41
6.2.1 How skills level of employee affects a smooth and profitable running of hotels within
Bondo town. .......................................................................................................................... 41
6.2.2 How Product and service quality affect a smooth and profitable running of hotels
within Bondo town. ............................................................................................................... 41
6.2.3 How Hotel strategies and plans affect a smooth and profitable running of hotels in
Bondo town. .......................................................................................................................... 42
6.2.4 How hotel culture and structure affect a smooth and profitable running of hotels in
Bondo town. .......................................................................................................................... 42
6.2.5 How physical development affect a smooth and profitable running of hotels in Bondo
town. ...................................................................................................................................... 43
6.3 Interview Question Responses given by the respondents. ................................................. 43
6.3.1 The Management. ........................................................................................................ 43
6.3.2 Supervisors ................................................................................................................... 44
6.3.3 Support staffs. .............................................................................................................. 45
Recommendation.......................................................................................................................... 45
Conclusion ..................................................................................................................................... 46
Reference. ..................................................................................................................................... 47
Appendices.................................................................................................................................... 49
ix
Appendix 1: Pictures.................................................................................................................. 49
Appendix 2: letter to respondents. ........................................................................................... 52
Appendix 3: Research Questionnaire. ....................................................................................... 53
Appendix 4: Interview Questions .............................................................................................. 56
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LIST OF TABLES.
Table 1; Empirical framework………………………………………………………………...10
Table 3.2 Target population…………………………………………………………………...16
Table 3.3 Distribution of target population per Hotel………………………………………...16
Table 3.4; Z-score sampling table……………………………………………………………..17
Table 3.5 Respondents of each department per hotel…………………………………………18
Table 4.1.1 General information about the respondents………………………………………21
Table 4.2.1 Effects of Political instabilities……………………………………………………22
Table 4.2.2 Effects of legal factors……………………………………………………………..23
Table 4.2.3 Effects of economic factors………………………………………………………..24
Table 4.2.4 Effects of Social Culture……………………………………………………………25
Table 4.2.5 Effects of Information Communication Technology (ICT)…………………….......25
Table 4.2.6 Effects of ecological factors………………………………………………………26
Table 4.2.7 Effects of Globalization……………………………………………………………27
Table 4.3.1 Effects of employee skills level……………………………………………………28
Table 4.3.2 Effects of product and service quality……………………………………………29
Table 4.3.3 Effects of Hotel strategies and plans……………………………………………….30
Table 4.3.4 Effects of Hotel structure and culture………………………………………………31
Table 4.3.5 Effects of hotel physical development……………………………………………..32
Table 3.6; - Total budget table for the research……………………………………………….. 49
Table 3.7: External environment factors………………………………………………………..53
Table 3.8: internal environment factors…………………………………………………………54
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LIST OF FIGURES.
Figure 1; Conceptual framework…………………………………………………………….9
Figure 2; Standard Sampling formula………………………………………………………..17
Figure 4.2.1 Effects of Political instabilities………………………………………………....23
Figure 4.2.2 Effects of legal factors…………………………………………………………..23
Figure 4.2.3 Effects of economic factors……………………………………………………..24
Figure 4.2.4 Effects of Social Culture………………………………………………………...25
Figure 4.2.5 Effects of Information Communication Technology (ICT)…………………….26
Figure 4.2.6 Effects of ecological factors…………………………………………………….26
Figure 4.2.7 Effects of Globalization…………………………………………………………27
Figure 4.3.1 Effects of employee skills level…………………………………………………28
Figure 4.3.2 Effects of product and service quality…………………………………………..29
Figure 4.3.3 Effects of Hotel strategies and plans……………………………………………30
Figure 4.3.4 Effects of Hotel structure and culture…………………………………………..31
Figure 4.3.5 Effects of hotel physical development………………………………………….32
Figure 3; Ghant chart………………………………………………………………………….48
Picture 1; Don hotel front view………………………………………………….....................49
Picture 2; pride hotel center view…………………………………………………………….50
Picture 3; Bondo traveler’s hotel front view……………………………………....................50
Picture 4; Green Court Hotel Entrance and front views………………………………………50
Picture 5; The aerial view of Bondo town……………………………………………………..51
Picture 6; the picture of researcher collecting data……………………………………………..51
xii
CHAPTER ONE
1.0 INTRODUCTION.
Hotel industry has been a comforting room for many tourists who tour any part of the world.
Therefore, there are many emerging hotels everywhere globally as a business opportunity
foreseen by entrepreneurs. Due to that, development of hotels within Bondo town has led to a lot
of benefits to the society and economy at large. Hotels with a conducive environment has a
highest probability to operate for a long time while making a lot of profits that benefit investors,
the employees, community, and the immediate environment
There are so many ways of identifying a smooth and profitable running hotel business when we
try to investigate their operations. Hotels that are operating smoothly, have a constant flow of
customers in that, the level of supply of hospitable services with food and beverage is high. Their
level of investments in terms of current assets and liabilities is good enough to enable them to
pay debts to prevent liquidation from operation. The rate of development and maintenance of
their equipment, structural and environmental physical appearance is good and appealing to both
customers and employees. The skills and knowledge that employees have are well felt and
experienced by the customers. The competency of the hotels is high enough whereby other hotels
imitate and come to benchmark on how these hotels operate and are efficient enough at the same
time.
These kind of operation is rarely seen in many hotels and other hospitality industries due to many
challenges they do face from internal and external environment. Internal environment of a hotel
are those factors within the organizational boundary that affect their operations. They include
employees level of experience and skills, goals and objectives of the hotels, organizational
structure and culture, strategies and plans the hotels has put in place to operate smoothly. All of
the internal environment factors that may affect the organization both positively or negatively
can be controlled by the organization`s management. The external environment are those factors
outside the hotel boundaries that affect their smooth and profitable running either positively or
negatively. Some of these factors that affect hotels include the political stability of the region,
economic nature of the nation, social and cultural background of the communities, ecological
conditions of the area, technological development and applications, legal policies and rules that
regulate the operations of these hotels and the last factor is the globalization nature.
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Generally, all of these factors has affected many hotels operations and therefore, they should
have collective information about their immediate environment, formulate strategies that will do
away with the threats and work on the weaknesses to be their strength. This clearly indicated that
the region truly needed a research to help solve many problems the hotels faced knowingly and
unknowingly.
1.1 Background of the Study.

When one can tress back the origin of hotel and hospitality industry and group it, we may find a
series of generations of them since the beginning of the first hotel business in the world.
According to ARSLANER & Boylu, (2015), Hotels that were operating in the early century
enjoyed and benefited many things from their environment they operated. Similarly, due to high
rate of developments and innovations since that time up to now, the current hotel and hospitality
business is appreciating a lot of benefits and challenges. According to Work Life Balance in
Hotel Industry- Issues and Challenges,” (2021), When there is a lot of changes also threats do
raise up from them hence leading to a series of factors that affect the same hotel industry.
There are many hotels that are constructed currently by investors that normally have a promising
lifecycle but they end up declining. JJ Lenku, (2012), The decline is caused by many factors that
affect the smooth and profitable operations hotels globally, regionally and locally. How does the
Use of Technology in the hotel has Affected Human Resource Practices and Guest Satisfaction
Levels in the Industry? Technology has become the key issue in the current hotel survival. Hotels
without up to date technological systems and personnel will lose many of their customer because
almost three quarter of the hotels is operated by electronics. There is a lot of globalization in the
current world whereby the products and services consumed by customers should meet their
global expectations and needs. Hotels industry depend greatly on environment and environment
depend on hotels too. Both globally and regionally climatic and weather conditions have become
great barrier to hotel operations since it leads to seasonality, change of customer needs and
expectations. The agriculture sector that provide most of hotels products is affected by the
ecological changes due to global warming. The other thing is the cultural diversity of different
regions of the world, culture can pull or push away most of the customers. Aynalem Aseres,
(2015), The current tourism world we have two categories of tourists, those who like hard
tourism and those who like soft tourism and without knowledge on this, hotel industry ends up
2
suffering negative effects from the culture. Huo, (1995), In the current error we have many other
factors like employee level of training and skills, economic related factors, political stability of
many countries and legal policies employed by various government institutions that may affect
the hotels.
Majority of Hotels within Bondo town are not delivering standardized products and services
which clearly indicated that there are some factors that affected their operation. The region itself
is a pulling factor when compared to other hotels in the western tourism circuit but the they do
have low customer receptions. Among the mentioned general factors that affects hotels in all
parts of the world and many other factors, this study was suitable for the hotels within Bondo
town to find out what kind of factors affected their operations. Identification of these threats and
opportunities from the factors affecting these hotels intended to help them deliver quality
products and services and also increase the live span of them. This will help hotels, restaurants,
resorts, other tourism destination and even other businesses in the region to have strategies and
plans that will not be affected by these factors.
1.2 Problem statement.

Hotels have been part and parcel of tourism provision to both domestic and international tourists.
Due to dynamic nature of the industry, it goes through a lot of growth and changes due to the
changing of customer need and expectations and other factors like climate, political issues,
economic issues and many others. These factors and issues ruins their survival to meet their
goals and objectives and also leads to poor spending of resources and poor satisfaction of
customers.
There are hotels within Bondo town like Don hotel, Travelers hotel, Pride hotel, Switel hotel,
May hotel etc. offering similar services and products just like other hotels globally. The very
hotels are affected by similar factors and issues just like other hotels but due to difference in
geographical areas, cultural diversity, climatic variation and many other factors within our
nation, the hotels in Bondo are experiencing unique factors and issues that needed to be outlined
carefully. When comparing hotels within Bondo town to other hotels in our country like with
Masai Mara, Nairobi City, Naivasha and Nakuru, you will find a very big gap in terms of
provisions, running of the hotels and utilization of resources. The research to be carried out will
enable us to identify clearly the specific factors and issues that affect the hotels in the region and
3
how they need to be handled them. Without understanding all of these factors and issues, these
hotels will not be able to survive long enough and also will not manage to meet expectations of
the tourists. The hotels also will not benefit from opportunities around them like the local
tourism sites within the region and the university within their vicinity. Generally, without clear
knowledge of the factors that affect this hotels, we shall have dormant, stagnated and less
innovative hotels within Bondo town. These pushes away both domestic and international
tourists and bringing bad image to the same hotels, the society and national wide.
1.3 General objective

The main objective of this study was to find out factors affecting a smooth and profitable running
of hotels within Bondo town in Siaya County Kenya.
1.3.1 Specific Objectives of the study.

The specific objectives of the study include: -
1. To identify external environment factors that affect the smooth and profitable operations
of hotels within Bondo town.
2. To examine the internal environment factors that affect the smooth and profitable running
of the hotel within Bondo town.
3. To establish performance of hotels within Bondo town.
1.4 Research Questions.

What kind of external environment factors do affect the Hotels within Bondo town.
How is the internal environment Force of hotels within Bondo town affect their operations?
What kind of opportunities are hidden from hotels within Bondo town by the factors affecting
their operations?
1.5 Hypothesis.
1. There is no relationship between external and internal environmental factors and smooth
and profitable running of hotels within Bondo town
2. There is hidden opportunities due to these factors affecting the hotels within Bondo town
4
1.6 Justification of the study.
Every hotel wish to have a smooth and profitable running throughout their lifetime. Some hotels
do try to resist the challenges for a long time but not long enough. Due to hotel vulnerability,
hotels in Bondo town require new ideas and strategies to survive longer and satisfy their
customers. Thus research was able to pull out the current issues that affected these hotels and it
will be easier to solve a problem that they know clearly.
1.7 Significance of the study.

This study is of high benefit to many business organizations, entrepreneurs and the consumers
out of the products and services offered. The hotels within Bondo like Pride hotel, Travels hotel,
May hotel and many others in the region, hotels within western tourist circuit like Bungoma
tourist hotel and others, many tourist sites like Kakamega forest, Thimlich Ohinga in Migori
county and other sites within Siaya county, other tourism related facilities and organizations
within the region, nationwide, globally will benefit greatly out of this research.
They can be able to identify the factors that may lead to their decline or poor performance in
relation customer expectations and current business trends. Other business outlets in Bondo town
with other businesses globally, agricultural sectors and many enterprises that are either
connected to hotels or not can benefit out of this research findings by getting relevant
information to use and having a very vibrant business environment.
1.8 Scope of the study.

The study focused on finding all factors that affected the smooth and profitable running within
Bondo town and many parts of the world. The results will help many hotels and other businesses
in the region to identify specific factors that ruin them and how to solve them. The study majored
its sources of the data from stakeholders in every department of the selected hotels. It purposed
to understand deeply how internal and external environment paused both threats and
opportunities, therefore, this was a SWOT analysis for the many hotel and hospitality industry in
the region. The general focus of this research was to open the eyes of many hotel businesses, to
enable them to offer quality services and products, be competent globally and stable in
investments they have. This was to contribute to the GDP, demand and supply of all products
they offer.
5
CHAPTER 2
2.0 Literature Review
2.1 Theoretical Literature review.
2.1.1 The Otus theory. (Developed by Paul Slattery in 2009)
The theory broadly expounds on economic structure of hotels, their supply profile and their
source and volume of demand. The theory predicts that within an economy, there is greater
contribution of service businesses to gross domestic product (GDP) then the greater the domestic
business demand for hotels, the greater the domestic leisure demand for hotels, the greater the
supply of hotels, the greater the concentration of hotels in brands and the greater the diversity of
branded hotels. In response to this, when there is limited limitations to this relationship from
environmental forces, there will be mutual benefits to the hotels and domestic tourist leisure
activities. Sabah, (2019), Every hotel currently wishes to have a smooth curve demand and
supply of its service and products. The variance in the environmental stem hood of these hotels
pause many challenges affecting them from different parts of the globe. Slattery, P. (2009) due to
the changing environments and trends in the hospitality industry, the Otus theory is resourceful
in that, for the hotels to operate smoothly and contribute positively, it states that there is need to
come up with a strategic direction that can address the changes. It states that the macro and micro
environment of tourism and hospitality industry is experiencing a tremendous change that affect
business performance and brings about challenges. The theory states some factors like economic
variance, competition, green argument (ecology), climatic variance.
The theory is suitable in this research because it magnifies out all factors that affect the demand
and supply curve in a hospitality industry. It enables all hotels and hospitality industries to look
at their demand and supply curves and encourage them to create efficient strategies and plans to
reduce the threats from their immediate environment. Elimination of this effects will
automatically lead to positive contribution to the GDP and hotels profitable and smooth running.
2.1.2 The Structural Contingence Theory Developed by Pennings, J. M. (1987).

In the hotel industry there are many departments each department has a unique way of operating
for the common goal of Hotel provisions. Pennings, (1987). Each department, therefore, tent to
face their unique challenges from both internal and external environments. Pennings in his theory
states that the structure that is most effective is the structure that fits certain factors, called
contingencies and therefore the effectiveness of a structure depends on the degree to which it fits
6
the contingencies. Generally, this theory supports the idea that each unit or subunit in a hotel
needs to develop responses to those challenges depending on their power and domain.
Krisnawati et al., (2015), The diversification of power and different ways of implementing them
will promote utilization and maintenance of resources they have. Wang et al., (2017) In the same
case, Resource Dependence Theory which states that an organization can depended on other
organizations for support depending on how resourceful it is. When there are many factors
affecting the subunits of hotels, resources availability and operations of these Hotels is in danger.
The two theory comes into agreement that each subunit and organization at large has to come out
with environmental scanning to get the threats that ruined their opportunities and resources. The
theories helped deeply in this research to enable hotels have strong subunits that are less affected
by threats, which have countless resources, operate smoothly and meet hotel goals at large.
2.2 Conceptual Literature Review

This section elaborated the relationship between dependent and independent variables and how
they affected each other. There are some studies that had been done by other parties trying to
elaborate more about this factors that hindered the prosperity of many hotels either globally,
regionally or locally which were so resourceful.
2.2.1 External environment factors that affect the smooth and profitable operation of
hotels.
According to Zhang J. & Enermark A.E, (2015). They state some of the factors like geographic
location, agglomeration of many other businesses and organization that may benefit the
customers and the hotels directly or indirectly. According to Ndubi E. (2009) states some factors
like government policies that run a country, weather patterns of a place, economy conditions,
incentives, political instabilities of country or a specific location in that matter; they are key
parameters for the success of any hotel. The findings clearly show how the external environment
do affect the performance of the hotel industry in many parts of the world whereby Zhang J. &
Enermark suggests that hotels should be flexible enough to cope with any changes out of this
types of environmental effects
2.2.2 Internal environment factors that affect the smooth and profitable running of hotels.
A research that was done by Jane et al, (2013), in their findings they got some factors like
customer service delivery offered by the hotel employees that affect customer satisfaction either
positively or negatively. Human and Capital resources that are available to be used being that
7
they the major determinants of the products and services being offered in the organization.
Lastly, management planning and procedures that are put in place to mitigate some of the
problems and also help to achieve their goals and strategies. According to Zhang J. & Enermark
A.E, (2015). They state some of the factors like human experience of the employees depending
on how long the employees have been in the same company or field, how skilled and adaptive
are to the field. The organization culture, rules and policies they clearly state how they ruin
decision making process and how problems can be solved.
2.2.3 Weaknesses of measures that Hotels put in place to control their operations.
According to Kasim, (2017) did a research on Hotel Managers in Malaysia, the manager was the
major determinant tool on any internal and external environment impact that may raise. The
impact can come from employee level of training and skills, current organization culture and
structure, active internal policies and regulations, goals and objectives of the hotels and finally
the strategies put in place to achieve all anything the hotel want. The efficiency of these
measures employed by the managers are key determinants of the hotel performance and
profitability.
8
2.3 Conceptual Framework.
In this section it clearly summarized all variables in a table form, indicating all the dependent
and independent variables and how they relate to each other. The independent variables included
the internal that is within the hotel and external environment that surrounds the hotels.
Figure 1; Conceptual framework.
Independent Variables Dependent variables
Internal Environment
 Human and capital resources

 Quality of service
 Organization strategies and
plans.
 Organization culture and
structure. Smooth and profitable running
 Management objectives and
 High demand (number and
goals
type of customers per day).
 Physical development.
External environment.  High profit margin.
 Political stability
 Ecological conditions
 Economic conditions
 Social cultural factors
 Technological factors
 Demographics factors
 Internationalization or
globalization.
9
2.4 Empirical Literature review.
In this section was all about the past findings done by other researchers in different parts of the
world. All the findings provided a wider view of factors affecting any hotels smooth and
profitable running either positively or negatively. The tabulated results were identifying the
author, topic, methodology, findings from other researchers, the gap between my research and
the findings and finally the study population.
Table 1; Empirical framework
NO AUTH TITLE METHOD FINDINGS STUDY GAP POPU

. OR OLOGY LATI
ON
1. Jane et Factors Used Many employees were not satisfied with the the study focused All
al,2013. affecting descriptive organization culture and structure. much on the hotels
performa research internal in
Poor satisfaction of the customers due to poor
nce of design environment only Kisii
service and low quality products.
hotels without County
Applied
and Less utilization of resources and opportunities understanding all .
sampling
restaurant they have. factors both from
techniques.
s in internal and
Incapability to accommodate all customer
Kenya. external
needs and preferences.
environment that
affect hotel
performance.
2. Zhang Factors Used Level of hotels investments in terms of The study used All
J. & influenci secondary currents assets and liabilities. the statistic hotels
Enerme ng data from carried out by the and
Physical locations determined number of
rk A.E, business Denmark government and restaur
customers to be received.
2015. performa Governmen the information ants in
nce in t statistics Level of human resource skills and knowledge. given by the Denma
Denmark. findings. researcher was rk
10
not familiar to the
researchers. The
info is not
detailed enough
to help other
hotels in the
world.
3. Dr. Factors Used both Poor quality employees in terms of skills and The study All
Deepak affecting convenient experience in their field of specialization. findings focused hotels
J., satisfacti and majorly on at
Poor monetarization of external environment
2019. on level judgmental internal than Jammu
factors like technology inputs and impacts.
of sampling. external in
customer The internal environment of the organizations environment India.
Also used
s in is of poor quality like space, physical space hence data
questionnai
hotels and poor managerial standards. collected was not
res.
industry. wholesome
Poor strategies and plans set by the hotels.
enough to solve
the problems in
Jammu.
4. Kipkiru Factors Used Poor implementation of the current marketing The study focused 150 of
i K., influenci descriptive strategies like use of news medias, social greatly on pricing the
2018. ng research media, web media, print media and outdoor and marketing emplo
growth of design. communication. strategies effect yee at
sales in on performance the
Used Poor pricing strategies implemented by the
the without Nairob
sampling hotels.
hospitalit understanding all i
techniques.
y Low level of skills and knowledge of the possible factors Serena
industry Applied employees. that can affect the Hotel.
in Kenya. use of
11
questionnai High level of competition in the hospitality hotel and sales
res. industry. department itself.
5. Sharma Factors Used High cost of maintenance of hotel assets that The study majorly The
A. & affecting sampling affected the saving rate of the hotels. found the factors study
Arun financial techniques. that may affect consid
Lack of well trained and skilled employees that
U., performa the financial state ered a
Applied affected the quality of services and products
2005 nce of of the hotels total of
use of offered.
small directly without 53
questionnai
hotels in Low level of investments and financing in looking on other small
res and
Tanzania. terms of current assets and liabilities factors that may hotels
face to face
have the impact in
interviews. Lack of access to funds like loans and
indirectly like Arusha
government promotions.
culture, climate region.
Use of outdated policies, equipment and organization
systems that cannot meet current customer culture and many
expectations. other.
6. Eveline Factors Used Supplier developments affected greatly the The study focused Total
C., affecting descriptive procurement performance of the hotels due only on the of 51
2017. procurem design. high cost of support from their customers in procurement rated
ent terms of time, assets and liabilities. department yet hotels
Used
performa we have many in
sampling Impact of information technology in terms of
nce of departments that Momb
techniques. employee literacy, equipment automation,
star rated operate under asa.
procurement systems, e-procurement.
hotels in Applied hotel industry like
hospitalit open and Low level of staff competence in terms of food and
y close ended knowledge and skills. beverage that are
industry questionnai affected make
in res.
12
Mombasa contribution to
county each other.
Kenya.
7. Luis et Impact Used The best kind of investment that can save the The study found Star-
al, factors on descriptive liquidity of these hotels is the current assets internal rated
2019. Portugue research because they develop with time. environment hotels
se hotels. design. factors that may in
The hotel cultures and leadership ranks.
lead to liquidity Portug
Used
The size of the hotel and rooms used and of the hotel due to al.
sampling
offered. The bigger the lower the liquidity and lack of resources
techniques.
obligation impacts. and yet we have
many other
Hotels with restaurants inside make the current
factors.
assets to be at threat to hotel liquidity strength.
8. Ndubi Factors Used Firm hotel dimensions. The study found All
E., affecting descriptive the specific hotels
Pricing rates of the rooms.
2009. hotel research factors that affect Kenya.
room design. Development of niche products. demand and
supply supply of rooms
Used Lifestyle of both all customers.
and without finding
simultaneo
demand External environment factors like economic, out the general
us equation
in Kenya. government policies, competition and climate. factors that may
model to
affect all
collect Number of other tourism sites and destinations
operations of the
data. with the hotels.
hotels and
revenue
collection.
13
9. Irungu Factors Used Employee level of training affected service The study found The
J. , affecting descriptive delivery by 52% very high,24% high extend factors that affect target
2018. service research 10% average and 14% low extend. service delivery popula
delivery design. yet the hotel tion
Company policies applied by different hotels
in the industry offers was
Sampling affected service delivery by 81%.
hospitalit both services and 132
techniques.
y Organization culture according to respondents products and emplo
industry. Applied affected service delivery by 85 %. makes the data yees
use of collect to be less
questionnai useful to the
res. whole operations
of the hotels.
10. Wamal Influence Used Respondents argues that radio, television, The study focused Total
wa , of descriptive social media, bill boards, verbal much on of 53
2014. marketin research communication, printed media, websites have marketing hotels
g design. an influence marketing strategies both department and in
strategies positively and negatively depending on how yet we have other Nairob
Used
on hotels decide to employ them. active i
sampling
attraction departments that county
techniques. The impact include increase in demand and
of collectively make ,
supply of services and products, high
internatio Applied a hotel and also Kenya.
communication, enhanced promotional offers,
nal use of depend on good
building an image of the hotels, attracting
customer questionnai performance of
international customers, partnership and
in the res. each other.
improve organization performance.
hotel
industry.
14
CHAPTER 3.
METHODOLOGY.
3.0 Introduction
This section described all the systematic ways that were used in collecting data from the hotels
within Bondo town. It outlined the roadmap of answering the question stated in chapter one and
meet the research objectives that solved this prevailing problem. This section of methodology
comprised the following; Study area, Research design, Target population, Sampling design, Data
collection tools, Data procedures, Data analysis, Limitations and Delimitations of the study,
Reliability and validity and Ethical considerations.
3.1 Study Area.

This study focused on the hotels within Bondo Town located in the Siaya county in Western
tourism circuit of Kenya. The region is occupied by the River Lake Nilote sub-group called the
Luo who have their unique cultures and traditions. Bondo town is located 61 kilometers away
from Kisumu city and 57 kilometers from Kisumu international airport. The town is located on
Kenya’s GPS coordinates of Latitude: 0° 6' 1.2132'' S and Longitude: 34° 16' 31.7964'' E. The
towns near Bondo town include Busia, Siaya, Luanda and Nambale towns. The town experiences
a hot and wet climate with Temperatures that will vary between 18 and 26°C. The town also
boarders the greater fresh water lake, Lake Victoria which is a source of food and water for the
local community.
3.2 Research design.

This study purposed to use descriptive research design that helped to identify the factor that
affected the hotels within Bondo town. As stated by Helen L. Dulock, (1993), descriptive
research design clearly narrates the situation or the problem how it is in details. A research that
uses this design not only identifies the problem but also reveals the unknown and empowers
knowledge to many and this makes it easy to solve the problem broadly. The design majorly
gathered information from the population sample by either interviewing or questionnaires or
both.
3.3 Target Population.

Target population is the total number of individuals in the area of study that are able to give
quality information to the researcher in this case is the hotels within Bondo town. The sample
15
unite of the population was the employees within the selected rated hotels in the region which
included Don hotel, Bondo Travelers hotel, Green Courts hotel and Pride hotel. The total
population was 198 employees including senior management team, middle level management
and support staff of hotels within Bondo town. This information was tabled bellow: -
Table 3.2 Target population.

CATEGORY TARGET POPULATION PERCENTAGE
Management 4 2%
Supervisors 56 28%
Support staff 138 70%
TOTAL 198 100%
Table 3.3 Distribution of target population per Hotel.

NO. HOTEL STAR NUMBER OF PERCENTAGE
RATE EMPLOYEES
Don 3.8 54 28%
Bondo Travelers 3.7 48 24%
Green Courts 2.9 36 18%
Pride 4.0 60 30%
Total 198 100%
3.4 Sampling size and Sampling Technique.

The proposed study used probability sampling where stratified random sampling method was
used to have correct samples from these hotels in Bondo town. As stated by Pennings, J. M.
(1987), each sub unit in any organization has an influence to the hotel operations depending on
how it is involved in the system. The technique was appropriate because it allowed the researcher
16
to divide the population and reach the required size that provided reliable detailed information.
The total number of respondents after sampling was 175 employees was out of 198 employees of
the total target population (see table 3.3 below).
I used Standard sampling formula where a sample to be chosen was to give 95% confidence to
the researcher, 0.5 proportion of picking a sample and 5% sampling error was used. The sample
size was calculated down where the results are tabulated in the table below; -
Figure 2; Standard Sampling formula Table 3.4; Z-score sampling table
Formula
Where; - z = population size 1.960*0.5(1-0.5)
p = Proportion of picking 0.5 Sample size = 0.05^2
e = Sampling error (5%) 1.960^2*0.5(1-0.5)
z = z-score value 1+ ( )
N = Total population 0.05^2*54
Total sample size = 175 employees (distributed as follows per Hotel)
Sample size for Don hotel = 47…………87.04%
Sample size for Bondo Travelers hotel = 43…………89.58% entering each hotel total
Sample size for Green Court hotel = 33………...91.67% employees in the formula
17
Sample size for Pride hotel = 52………...86.67% these are the results.
Table 3.5 Respondents of each department per hotel

HOTEL EMPLOYEES SAMPLE SIZE
1. Hotel A D Management 1
Supervisors 14
Staff 32
2. Hotel B T Management 1
Supervisors 12
Staff 30
3. Hotel C G Management 1
Supervisors 10
Staff 32
4. Hotel D P Management 1
Supervisors 17
Staff 34
TOTALS 175
18
3.5 Data collection instrument.
The research used qualitative and quantitative data that was collected out the field. To have a
wholesome primary data, direct oral investigation (interviewing) and use of questionnaires
(open-ended and close-ended) was used as methods of collecting data. The study used structured
questions as a way of saving time and cash and encouraged less demanding questions that are
quick usable. The unstructured was proposed to be used to urge the sampled respondents to give
in and out any felt reactions without making them insecure.
3.6 Validity and Reliability.

3.6.1 Validity.
Validity is the measure of results truthfulness and accuracy in line with the study objectives and
the problem at hand. The study validity was verified by presenting all the questionnaires to the
supervisor who confirmed if they are good enough to collect wholesome data. Lastly, the validity
of the study was embraced by applying correct data collection tools, that is; use of interviews and
use of questionnaires. Through the above strategies, the researcher was confident enough that the
findings are quality enough to solve the problems affecting these hotels.
3.6.2 Reliability.
There was a pilot study from other hotels that have similar rating and face similar challenges.
The hotels were out of the selected hotels which gave their responses. The data was analyzed
using Cronbach alpha test to determine consistence of my findings.
3.7 Data analysis.

The analyzing process for the data collected used both qualitative and quantitative data analysis.
In qualitative data analysis the researcher used narrative analysis to be easy to reformulate the
responses in line with the main and specific objectives, hypothesis and topic of the research. The
process was used in conjunction with quantitative data analysis where the researcher used the
descriptive statistics. The descriptive statistics helped to know the main features, get a
summarized measure and sample of information. The analysis promoted validity since the results
was presented using tables, figures and charts.
3.8 Data collection procedure.

The start of the study commenced after collecting introductory letter from the university, school
deans. After that the researcher written the appointment letter to the selected rated hotels within
Bondo town in order to get permission and make them prepared for the process. The researcher
19
prepared the research questions both open and close ended questions and other relevant materials
like cameras before leaving for the study. There was presentation of the questionnaires to the
supervisor for approval and make correction before exposing them to the respondents.
3.9 Ethical considerations.

During the research process there was high monetarization of decisions, standards and values
that might affect the attitude and moods of respondents. Therefore, to make them secure and
comfortable during the process, the researcher followed the following ethics; -
3.10.1 Privacy and confidentiality.

The researcher assured the respondents privacy of their information for the sake of their job and
security of the hotel at large. This was ensured by not exposing their responses to any
unauthorized person.
3.10.2 Informed consent.

Being a legal requirement and nature of ethicality, the researcher ensured that the respondents
are aware of the research by writing an appointment. The researcher exposed the questions to
respondents for them to be aware of the research and what is expected out of them.
3.10.3 Voluntary participation.

The researcher ensured that the respondents are participating to this process voluntarily without
any force, threat or command. They have the liberty to give what they think and feels good
depending on their state of conscience.
20
CHAPTER FOUR.
RESULTS AND INTERPRETIONS.

4.0 General Information.
This chapter brought out all the field findings from the respondents of the selected hotels within
Bondo town. The results were read and were taken through several stages to get well interpreted
findings.
4.1 Demographic Profile of the study.

Table 4.1.1 General information about the respondents.
Profile General information Percentage
Gender Male 62
Female 38
Age structure Between 18 – 25 34
Between 26 – 30 46
Between 31 – 50 16
Above 51……. 4
Years in service Between 3 – 5 44
Between 6 – 8 38
Between 9 – 11 14
Above 12…… 4
Level of education Diploma 73
Bachelor 24
Postgraduate 0
Other Specification 3
21
Category Senior Management 2
Middle level Management 28
Support Management 70
The data collected from the field shown in the table 4.1, the male had the highest number {62%}
of employees employed by the selected hotels where female were only {38%}. The managers
said that they like employing more men than women because of work load, speed of the work
needed, energy level, and multitasking level required by hotel employees. The highest age group
of employees found in the hotel ranged from 26-30 by {46%} and reason being that they are
those who have required certificates, current skills and experience needed by the hotels. The
highest number of employees had served the hotel for less than 5 years and the managers say that
many employees comes and when they get experience they go to other hotels. Diploma certified
employees led by {73%} in the hotel number of hotel employees in terms of level of education.
The managers said that many diploma students are more skilled than degree and other and also
they are less expensive that degree personnel. Also we have the uneducated but skilled local
community employees who offered quality manpower services like gardening and security to the
hotels. Finally, the support employees were 70% whereby this is more than the managerial
category of hotel employees because management is needed to be few to lead the many.
4.2 How the external environment affects the hotel operations?

Table 4.2.1 Effects of Political instabilities
Category Frequency Percentage
Yes 147 84
No 28 16
Total 175 100
22
Figure 4.2.1 Effects of Political instabilities
16%
YES
Category
84% Category
4.2.1 Effects of Political instabilities.

Table 4.2.1 and figure 4.2.1 clearly shown the respondent views on the effects of political
insatiability on the hotel within Bondo town. According to the findings, 84% of the respondents
agreed and 16% of the respondents disagreed with the question put across by the researcher.
With the data represented in the chart above, it is clear that hotels are greatly affected by the
political instabilities.
Table 4.2.2 Effects of legal factors

Yes 165 94
No 10 6
Total 175 100
Figure 4.2.2 Effects of legal factors
6%
Yes
Category
Category
94%
23
4.2.2 Effects of legal factors
Table 4.2.2 and Figure 4.2.2 summarized that hotel operations are also affected by legal standard
set by enforces in a country. From the findings, 94% of the respondents agreed with the question
on whether legal factors imposed by the policy makers do affect their operations. Out of the total
number of respondents, 6% of the respondents disagreed with the perception of the question.
Therefore, it is clearly indicated that hotels within Bondo town are affected by legal factors.
Table 4.2.3 Effects of economic factors

Yes 168 96
No 7 4
Total 175 100
Figure 4.2.3 Effects of economic factors
PERCENTAGE
4…
Category
Category
96%
4.2.3 Effects of Economic factors

Table 4.2.3 and figure 4.2.3 cleared shown how the economic nature of our country affects the
hotels where 96% of respondents accepted that they are not favored by the economy at all. Out of
the total sample of respondents, 4% of the respondents said that the economy impact depends on
the strategies the hotel has in place to control the situations hence disagreeing with the idea that
economic nature affects the hotels within Bondo town. Otherwise, with the majority, it was
clearly seen that the economy nature of a country does affect the hotels within Bondo Town.
24
Table 4.2.4 Effects of Social Culture.
Yes 144 82
No 31 18
Total 175 100
Figure 4.2.4 Effects of Social Culture.
18%
YES
Category
Category
82%
4.2.4 Effects of Social Culture.

Table and figure 4.2.4 shown the effect of social culture the hotel operation where 82% of the
respondents agreed and only 18% of the respondents disagreed. According to the majority it was
clearly seen that hotels are really affected by the social cultural background of the community
they are developed in to.
Table 4.2.5 Effects of Information Communication Technology (ICT).

Yes 61 35
No 114 65
Total 175 100
25
Figure 4.2.5 Effects of Information Communication Technology (ICT)
35% YES
Category
Category
65%
4.2.5 Effects of Information Communication Technology (ICT)

Table 4.2.5 and figure 4.2.5 identified how the majority (65%) of the respondents from the hotels
were not seeing technology as a limitation on their operation but a prestigious resource as far as
hotel operation is concerned. On the other hand, 35% of the respondents said ICT is a trending
factor that has been consuming their organization since the launching of the hotels hence
agreeing with the idea that hotels are affected by technological factors.
Table 4.2.6 Effects of ecological factors.
Yes 158 90
No 17 10
Total 175 100
Figure 4.2.6 Effects of ecological factors
10%
PERCENTAGE
Category
90%
26
4.2.6 Effects of Ecological factors.
Table 4.2.6 and figure 4.2.6 shown how the ecological factors are perceived by the respondents
on how they affect the hotel operation where 90% of the respondent agreed. There was also some
(10%) of the respondents who disagreed with the idea saying it all depends on the customer
motivation from the beginning of the travel. Therefore, according to the majority of the
respondents it’s clearly seen that hotels are greatly affected by the ecological factors.
Table 4.2.7 Effects of Globalization.
Yes 137 78
No 38 22
Total 175 100
Figure 4.2.7 Effects of globalization
22%
PERCENTAGE
Category
Category
78%
4.2.7 Effects of Globalization

Table 4.2.7 and figure 4.2.7 shown how respondents viewed about effects of globalization to
their hotels operations whereby majority (75%) agreed. They agree that cultural diversity in the
world has caused up rise of variety of consumer motivation and expectations and this has
affected the hotels broadly. Out of the total sample, 25% of the respondent disagreed with the
fact that globalization affects the hotels operations. They say it all depends on the how the hotel
has familiarized itself with the customer during booking face and before he/she makes the
decision to travel to the hotel.
27
4.3 How the internal environment affects the hotel operations?
Table 4.3.1 Effects of employee skills level.
Very high extent 63 36
High extent 49 28
Moderate extent 32 18
Low extent 26 15
None at all 5 3
Total 175 100
Figure 4.3.1 Effects of employee skills level.
Percentage
40
35
30
25
20
15
10
5
0
Very High Extent High Extent Moderate Extent Low Extent None at all
Percentage
4.3.1 Effects of employee skills level.

According to the responses from the sample population, table 4.3.1 and figure 4.3.1 gives the
rating as far as how employee level of skills does affect the hotel operations. The high extent
36% says it affects to a very high extent, 28% high extent, 18% moderate extent, 15% low
extent, and 3% employee level of skills does not affect the hotel operations. This clearly
indicated that hotels within bondo town are greatly affect by the employee level of skills.
28
Table 4.3.2 Effects of product and service quality.
High extent 53 30
Low extent 21 12
None at all 6 4
Total 175 100
Figure 4.3.2 Effects of product and service quality.
Percentage
40
35
30
25
20
15
10
0
Percentage
4.3.2 Effects of product and service quality.

From the data collected in the field in table 4.3.2 and figure 4.3.2 the feedbacks of 38% of
respondents indicates that product and service quality does affect the hotel operations at very
high extent, 30% high extent, 16% moderate extent. 12% low extent and 4% none at all.
According to the feedbacks, it is clearly seen that product and service quality is a threat to hotel
operations if poorly looked on to.
29
Table 4.3.3 Effects of Hotel strategies and plans.
High extent 56 32
Low extent 18 10
None at all 9 5
Total 175 100
Figure 4.3.3 Effects of Hotel strategies and plans.
Percentage
40 40
35 32
30
25
20
13
15 10
10 5
5
0
VERY HIGH HIGH EXTENT MODERATE LOW EXTENT NONE AT ALL
EXTENT EXTENT
Percentage
4.3.3 Effects of Hotel strategies and plans.

From table 4.3.3 and figure 4.3.3 the response on effect of strategies and plans 5% of the
respondents said the effect was not there at all, 10% was low extent, 13% was moderate extent,
32% was high extent and 40% of the respondents said effect was on a very high extent.
According to this outline it was evident that truly hotel strategies and plans do affect their
smooth and profitable operations.
30
Table 4.3.4 Effects of Hotel structure and culture.
High extent 56 32
Low extent 26 15
None at all 2 1
Total 175 100
Figure 4.3.4 Effects of Hotel structure and culture.
Percentage
40
35
30
25
20
15
10
0
Percentage
4.3.4 Effects of Hotel structure and culture.

From the findings in the table 4.3.4 and figure 4.3.4, 35% of the respondents said that hotel
structure and culture do affect hotel smooth and profitable running at a very high extent, 32% at
high extent, 17% at moderate extent, 15% at a low extent and 1% at no extent. The results clearly
shown that hotel hierarchical structure and its culture of doing t activities do affect its operations.
31
Table 4.3.5 Effects of hotel physical development.
Yes 126 72
No 49 28
Total 175 100
Figure 4.3.5 Effects of hotel physical development.
PERCANTAGE
28%
72% Category
Category
4.3.5 Effects of hotel physical development.

The table and figure 4.3.5 show how the respondents reacted on whether physical development
of a hotel do affect the or not. Among all the respondents, 72% of them agreed with the
statement that physical development affect the hotel operations and 28% of the respondents
disagreed with the statement. Generally, it is clearly seen that hotel’s physical development can
determine it its progress when it is a good condition.
32
CHAPTER FIVE.
DISCUSSION OF THE RESULTS.

5.0 Introduction.
In this chapter the researcher elaborated into details the findings in relation to the past studies
cited in this study. The researcher did a comparison to know whether the past findings agree or
disagree with the current discoveries. Therefore, in this chapter the researcher strove to solve the
problems facing the hotels within Bondo town by attaining the objectives set by the researcher.
5.1 The effects of external environment

5.1.1 Does Political Stability affect the smooth and profitable running of hotels within
Bondo town?
From the findings the researcher found that truly political instability in Kenya affect these hotels.
Referring to table and figure 4.2.1 from the data analysis, the majority of the respondents
including the managers could accept that they are greatly affected by this factor. A research done
by Work Life Balance in Hotel Industry- Issues and Challenges,” (2021) comes into agreement
with this study. The study found that when the country has many wrangles especially from the
political sphere, the hotel industry remains dormant and greatly affected in their operation.
Therefore, it was clear that hotels within Bondo town are affected by the political instabilities
and their they need to make strategies together the tourism and hospitality board to find a
possible solution to this impact.
5.1.2 Does Legal Factors affect the smooth and profitable running of hotels within Bondo
town?
During the data collection also the researcher did the best to know if the legal factors do affect
the smooth and profitable running of hotels within Bondo town. According to the findings
analyzed in the table and figure 4.2.2, it is being clearly seen by the researcher that the hotels are
greatly affected by this factor. The respondents said that the when law is passed no one is
allowed to be above it and when the law do not keep the interests of all parties, the parties end up
facing many challenges. A study done by Nduni E. in 2009, in the study the scholar said that
when policies are passed without mutual agreement and common conscience of the parties
involved, the policy becomes poison to their operations. Therefore, the researcher came to
conclusion that the hotels are being affected and there is need of immediate measures to control
this external impact.
33
5.1.3 Does Economic Factors affect the smooth and profitable running of hotels within
Bondo town?
According to the data analysis and interpretation, it was evident that economic nature of a hotel
determines the operation and the attitude of the employees within a hotel. In table and figure
4.2.3, respondent’s reactions gave input that truly their hotels are affected by the economic
nature of a country. A study done by Zhang J. & Enermerk A.E in 2015, in their study they
identified that when the prices of products and services goes high, the normal operation of the
hotels also shakes. When the prices go high, the normal budget of the hotel is interrupted and
therefore the goals and objectives are also not met. When the researcher was comparing the
findings with the study done in Denmark by Zhang J. & Enermerk with the findings, the two
findings had same results.
5.1.4 Does social cultures affect the smooth and profitable running of hotels within Bondo
town?
During data collection process, the researcher found that the host community in which all hotels
were constructed, was the Luo community who had their way of life and believes. This increased
the need to know whether the community cultures affected their operations. According to the
findings interpreted in table and figure 4.2.4, the respondents agreed that they are affected by the
social culture. Wamalwa in his study he mentioned that when the tourism site, be it
accommodation, transportation, attractions, and many others, they don’t recognize the local
communities and their culture and believes, they may face a lot of challenges. He said that
community culture becomes the pillar stone for promoting the products and services an
organization offers. In comparison to this study, the message became clear that without well
conversance with the culture of the predominant communities and of each employee, it is hard
for a hotel to operate smoothly and successfully.
5.1.5 Does information communication technology affect the smooth and profitable running
of hotels within Bondo town?
Currently the world is working using the technological devices which now takes 50% of jobs
offered in different industries. During data analysis, it was evident in table and figure 4.2.5 that
technology does not affect the hotels within Bondo town. Majority praised the importance of
technology in the industry. These findings agree with Eveline who did a researcher in 2017, in
her study she says technology had a great impact on promoting and increasing the efficiency in
operation. The two findings come into terms that information Communication technology can
34
only be efficient if only, the employees are well training. Well trained employees can lead to
high innovation in product and service provision and also promotion of the hotel both
domestically and international.
5.1.6 Does ecological factors affect the smooth and profitable running of hotels?
A study that was done by Ndubi E. in 2019 states that the demand and supply of products and
services in the hotel industry depended most on the ecological factors. In his study he says that
many hotels are affected by the ecological condition reason being in the current century we have
a lot of global warming that has changed the weather pertain and conditions. Due to different
consumer needs and expectations, therefore, the customers becomes choosy in selecting a hotel
to reserve. In this study as the findings in the table and figure 4.2.6 clearly shows, it is clear that
the findings agree with the Ndubi’s study that ecology has been a threat to the hotel; the
ecologist and the government need to find the solution on this impact. The respondents said there
is high temperatures during dry seasons affects the environment and due to high rainfall, there is
high floods and poor transport systems and this becomes a great effect on their hotel operations.
5.1.7 Does Globalization affect the smooth and profitable running of hotels?
The respondents agreed that cultural diversity in the world has caused up rise of variety of
consumer motivation and expectations and this has affected the hotels broadly. This study found
this unrecognized effect since there is no any study that has ever been done and found this factor.
This called for the hotel stakeholder and the government to find the solution for this prevailing
effect of globalization. The country is having many inbound and outbound tourists and without
having this information on their fingertips they may end up not satisfying their customer needs
and expectations.
5.2 The effects of internal environment

5.2.1 Does skills level of employee affects a smooth and profitable running of hotels within
Bondo town?
According to the findings extracted from the study, it was evident that truly employees are the
great determinant of the success of a hotel. Well skilled and experienced make the operations to
be on top. As it is shown in table and figure 4.3.1, hotels are greatly affected by the level of skills
the employees have. There is less output expected by the management and by the customers. A
study that was done by Sharma and Arun in Tanzania, they found that the effects of poorly
skilled employees leads to great deterioration in operation of the hotels. They add to say that
35
there is high cost of training them, the mistakes they make are costly to solve and the level of
service to customers is low in that customers end up unsatisfied. The two studies come into
agreement with the view that less skilled employees are cheap in terms of salary needs but the
negative impacts are great. Also training institutions under the ministry of education should liars
with the hotel industry stakeholders to know the skills that are needed by the industry.
5.2.2 Does Product and service quality affect a smooth and profitable running of hotels
within Bondo town?
In the tourism and hospitality industry, product and service quality is the center of all provisions
that the industry supplies. According to Kipkirui in his study that he did at Nairobi Sarova hotel,
he clearly states that product and service quality determines the number of customer turnover per
day and also level of spending when they visit a hotel. He said that hotels do perish due to poor
quality outputs due to several factors, including, the hotel management, the skills and experience
of the employees working in the hotels and the tools and equipment that they use to produce. The
Kipkirui’s study fully agrees with my study but at some point it show the unrevealed truth. The
truth is that sometimes hotels have all what it takes to offer the quality services and products but
the mistake comes from the suppliers. The origin of some products and the transportation matters
a lot too in the industry. Therefore, this calls for a keen observation of the hotel management to
ensure the good entering the premise are in good condition and of the same quality needed,
storage to be done well, the hotel employees to have the required skills to cope with this threat of
quality.
5.2.3 Does Hotel strategies and plans affect a smooth and profitable running of hotels in
Bondo town?
According to the findings represented in the table and figure 4.3.3, the results was transparent the
hotels within Bondo town are greatly affected by their own plans and strategies. When the
researcher was comparing and contrasting the findings, the fully agrees with the findings of Dr.
Deepak. In his study he says that since the satisfaction of the customers also originate to the
master plans and strategies of the hotels, when these strategies and plans fail, the whole system
of hotel operations trembles. The impacts lead to poor satisfaction of employees and the
customers, the hotel becomes incompetent to the external environment. Dr. Deepak findings
truly agrees with this study, whereby, the two study states that without monitoring the external
environment, before, during, and after setting the plans and strategies, the hotel ends up making
36
the trap of failure that is hard to solve. When the external environment makes any changes, the
hotels plans and strategies should be flexible enough to cope with the changes without interfering
with the normal operations.
5.2.4 Does hotel culture and structure affect a smooth and profitable running of hotels in
Bondo town?
A study that was done by Luis et al in their findings they found the way the hotel routinely does
their duties, and the kind of leadership that is employed in the hotel determines the future of the
hotel. They said that the hotel culture and structure determine the internal mood of the hotel and
how to handle issues to do with complains. The scholars’ findings came in to agreement with
thus study when the researcher found that the cultures and structures determine the operation of
the hotel. The two studies conclude that, some cultures and leadership might not align many
stakeholder, that is employees, customer and the whole external environment. The impact at the
end of the day goes to the smooth running and profitable operation of the hotels.
5.2.5 Does physical development affect a smooth and profitable running of hotels in Bondo
town?
The respondents said that currently customers are moved by high expectations of developments
in the hotel they choose to visit. Lack of certain structures and designs like swimming pool,
parking zones, carwash zones, good path ways and a green environment affect the moods and
motivation of staying in a hotel. The respondents said that many of the customers walked out of
their hotels due to lack certain developments and also the general appearance of the hotel also
mattered so much. The major reason of all this is that customers wants an environment that has
all things they want during their visit and failure to that they become unsatisfied and also
environment that can be good to take photos to post on social media to keep for memories.
During the review of the past literatures, there was no any study that was done that found the
effects of physical developments on the smooth and profitable running of the hotels.
37
CHAPTER SIX.
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION.

6.0 Introduction.
This chapter brought out the full summary from the findings in conjunction with the study
objectives. Every question in the questionnaire and interview was well elaborated to know the
major problem and how these hotels should solve them. Thereafter, this chapter presented the
conclusion and recommendation for further studies as far as these topic is concerned.
6.1 The effects of external environment

6.1.1 How Political Stability affect the smooth and profitable running of hotels within
Bondo town.
According to table and figure 4.2.1, the researcher found that the 84% of the respondent agreed
with the point that political stability affect the operation of the hotels within Bondo town where
by only 16% disagreed. The majority of the respondents said that every time there is election
process in the country or sub county level, their hotels level of operation goes down. When the
activeness of the hotel is down, there is less profit making and this affects the whole hotel’s
stakeholders. Being that Political stability is an external environment, the hotels had to have
short term strategies and plans to cover the impact of this factor. Without having I place the plans
and ways of maneuvering in this seasons, hotels tremble to an extent of falling.
6.1.2 How Legal Factors affect the smooth and profitable running of hotels within Bondo
town.
Legal factors are about all kinds of rules and regulations put across by the government to
streamline the operation of all kind of organizations and public at large. From table and figure
4.2.2, the researcher identified that 94% of the respondents agreed that legal factors do affect
their hotels and 6% disagreed with the idea. It is evidenced, therefore, that legal factors do affect
the hotels within Bondo and Kenya at large and they do suffer a lot of threats and losses. When a
rule is applied without proper conscience of all stakeholders the impact is negatively
experienced. From the findings, the law enforcers in the government need to collaborate with the
stakeholders of hotels to know their abilities and disabilities, identify what is best benefiting the
two parties. The general understanding of the groups affected by the law will help government
and law enforcers develop a mutual benefiting rules and regulations. For all this to happen
38
smoothly, the government or law enforcers must have a mutual understanding and collaborative
environment for this all to be successful.
6.1.3 How Economic Factors affect the smooth and profitable running of hotels within
Bondo town.
The study strove to find out if economic factors do affect the hotels smooth and profitable
running. Interpreting the findings in table and figure 4.2.3, it was identified that 96% of the
respondents agreed with the point that economic factors do affect their hotels and only 4% of the
respondents disagreed with the question. It’s evident that economic constraints negatively affect
the hotels within Bondo town and the impact is huge to bare especially by the hotel managers.
The senior managers and middle managers said that a lot of misunderstanding a rise between
them and the employees due to less and late payment, and also customers are hard to cope with
the new high prices set by managers due to high economy. These hotels therefore, need to make
strategies and plans that cost less and are short term, reduce number of employees, be flexible
enough in their operations and inform the customers about any changes.
6.1.4 How social cultures affect the smooth and profitable running of hotels within Bondo
town.
According to table and figure 4.2.4, 82% of the respondents agreed whereby 18% of the
respondents disagreed. According to the analysis of these data, it is clearly seen that community
culture and their social life has an impact to a hotel normal operation. When it comes to matter to
with socialization, it becomes crucial to the survival of the hotels. Therefore, hotels must solve
this issue from the roots while keeping in mind that employees also come from the same
communities. At this point of discussion, the researcher came into terms with the Penning’s, J.
M. theory called Structural Contingency Theory. The theory upholds the truth that every section
in an organization is important and they all depend on each other for success. Hotels in Bondo
town, therefore, must know all sections they have, each personnel with their cultures and also the
predominant community culture. The identification will help this hotel develop several ways of
living with this groups with their cultures be it the employees or local communities. The impact
of doing this will be positively promising for the long-term and profitable running of these hotels
mutual benefit by all participants.
39
6.1.5 How information communication Technology affect the smooth and profitable
running of hotels within Bondo town.
From table and figure 4.2.5 out of the total respondents, 35% of the respondents agreed with
Idea that ICT do affect their hotel whereby 65% of the respondents disagreed. Majority of the
respondents said that ICT had helped to improve their operations, that is, enhance customer
service and increase profitability, improved communication with customers, operational
efficiency, improved marketing efforts, and help in analyzing data collected. This clearly
indicated that even though there is competition of hotels in terms of ICT installation, the positive
impacts of ICT are much higher than the negative impacts on the hotel general operations.
6.1.6 How ecological factors affect the smooth and profitable running of hotels.
Bondo town is a conducive environment bordering Lake Victoria, a fresh water lake. The
ecology is known for a warm and wet climate, within its ecology full of many flora and fauna.
Using table and figure 4.2.6 the researcher identified from the respondents of these selected
hotels that, their hotels are really affected by the ecological factors whereby 90% of the
respondents agreed and 10% disagreed. The great impacts come from both the environment and
the weather. Due the lake, high temperatures are experienced that affects the comfort zone for
customers. When there is rains the region experiences a lot of floods and this affects means of
transport and secure environment of customers. The hotels are therefore keeping on strategies for
finding opportunities in these impacts to market the different products and services that meet the
customers. Without finding solution on this change in weather pertains.
6.1.7 Effects of Globalization

Table 4.2.7 and figure 4.2.7 shown how respondents viewed about effects of globalization to
their hotels operations whereby majority (75%) agreed. Out of the total sample, 25% of the
respondent disagreed with the fact that globalization affects the hotels operations. According to
the majority, the researcher found that indeed hotels within Bondo town are greatly affect by this
factor in that, without full understanding the current trendy needs and desires of customers it
becomes hard to satisfy them. Also they said that at some points certain skills and experience
will be needed by the customers but due to less skilled and experienced employees, hoteks end
up perishing in terms of provision.
40
6.2 The effects of internal environment.
6.2.1 How skills level of employee affects a smooth and profitable running of hotels within
Bondo town.
The skills level of employees has a significant impact on the smooth and profitable running of
the hotels within Bondo town. This was seen from the respondent’s responses which is presented
in table and figure 4.3.1 where 36% said that effect is on a very high extent, 28% high extent,
18% moderate extent, 15% low extant and only 3% of the respondents said employees level of
skills had none effect to the hotel operations. The majority said that due to economic constraints,
the hotels were employing personnel with low salary expectations and avoid the well-equipped
employees due to their high demand of big salaries. Employing less skilled and experienced
employees due to many reasons and also poor management, they say, it has been a big problem
to their successful operation. When there is a well experienced and skilled employee in a hotel it
has a lot of benefits including more efficient and effective employees in their job duties, good to
handle all the unexpected situations and at the end of this is to have more satisfied customers due
to quality products and services.
6.2.2 How Product and service quality affect a smooth and profitable running of hotels
within Bondo town.
According to the research it was evident that quality of products and services has an impact on
the hotel successful operations. With the data collected from the field represented in table and
figure 4.3.2, 38% of respondents said that product and service quality did affect their hotel
operations at very high extent, 30% at a high extent, 16% at a moderate extent., 12% at a low
extent and 4% none at all. Product and service quality only depended on the service providers
and the producers of raw and final products. Low quality discourages customers to spend much
money and revisiting spirit. These hotels are required to generate strategies to keep their quality
of products and services in the production sector and employing the right personnel with best
skills and experience. Also the suppliers and are key players in final products and services in
hotels. The institutions should revise the teaching curriculum to produce quality personnel for the
industry and suppliers they ensure they have quality raw materials for hotel use. The hotels,
therefore must take this issue so serious to handle all product and service quality issues.
41
6.2.3 How Hotel strategies and plans affect a smooth and profitable running of hotels in
Bondo town.
The researcher tried harder to know whether the hotel strategies and plans do affect their hotels
and from the responses, 5% of the respondents said that hotel strategies and plans do not affect
their operations according to table and figure 4.3.3, 10% said they had a low extent effect, 13%
said the impact was moderate, 32% of the respondents the impact was of high extent and 40% of
the respondents said the impact had a very high impact. And from the analysis gotten it was clear
the hotels were highly affected by their strategies and plans. The majority said strategies and
plans becomes illicit to the operation when there is income inflation and during hard economic
times. The budgets developed gets interfered and the currency circulations becomes a problem
leading to failure of their targeted goals and objectives. Failure to meet the goals and objectives,
leaves the hotel not only incompetent but weak to operate smoothly internally and externally.
This alerted the hotels to make flexible strategies and plans and also embrace the short term
objectives to ensure they operate smoothly and profitably.
6.2.4 How hotel culture and structure affect a smooth and profitable running of hotels in
Bondo town.
Hotel culture is the way each hotel does their duties and this is done as a team with common
character and behavior; this vary from one hotel to the other. The structure in this study was
referring to the hierarchy of management from the general manager a to the casual employee in
the hotel. From the finding represented in the table and figure 4.3.4, 35% of the respondents
said they are affected by their hotel culture and structure at a very high extent, 32% of them said
the impact was a high extent, 17% said the impact was of a moderate extent,17% said the impact
was at low extent and only 1% said there was not impact from the cultures and structures they do
employ in their hotels. They said that some hotel cultures are not so favorable to employees since
they are imposed by the management to make profit without the conscience of the employees.
Some cultures defile the social culture and traditions of workers form certain communities. On
the structure issue, the respondents said their hotels they don’t have full compact of managers
and support managers and this affects the report system when handling issues in specific
subsections in a hotel.
42
6.2.5 How physical development affect a smooth and profitable running of hotels in Bondo
town.
Physical development refers to all physical structures and appearance constructed within a hotel,
be it rooms, path ways, swimming pool, Sheds, Parking zones, the internal décor of the hotel and
many other environmental developments. In this study, the researcher emphasized on knowing
whether hotels within Bondo town were being affected by this type of internal factor by using
keen observation, questionnaires and interview questions. According to the findings presented in
table and figure 4.3.5, 72% of the respondents agreed that their hotels were affected by physical
development and only 28% of the respondents disagreed. The respondents said that currently
customers are moved by high expectations of developments in the hotel they choose to visit.
Lack of certain structures and designs like swimming pool, parking zones, carwash zones, good
path ways and a green environment affect the moods and motivation of staying in a hotel. The
respondents said that many of the customers walked out of their hotels due to lack certain
developments and also the general appearance of the hotel also mattered so much. When I was
scanning through the hotels physical environment I identified these hotels lacked some facilities,
some facilities are of low quality, others are outdated. When I asked employees about their view
towards the physical structures, they said customers visit the hotels but they are not much
satisfied. They said most of the customers complain since want hotels that have appealing
environment, facilities and tools. The major reason of all this is that customers wants an
environment that has all things they want during their visit and failure to that they become
unsatisfied, an environment that can be good to take photos to post on social media to keep for
memories.
6.3 Interview Question Responses given by the respondents.

Other challenges in hotels that affects their operations?
In response to this question several groups of people in the hotels gave their responses according
to their occupation in the hotel. The findings were grouped as follows;
6.3.1 The Management.

The managers said the major problems they face is the misunderstanding of the general managers
and owners of the hotels. They say they delay many hotel process when given a situation to be
handled on a fast note. Managers said that sometimes are forced by their general to make
decisions without listening to them which leads to uncontrollable mistakes and at the end of the
43
day the whole mistake is taken to be theirs. The managers also said that they face stress from the
employees due to lack of skills and therefore they make many mistakes that this manager should
be ready to solve. Poor time management from all employees was the other challenge facing this
manager. Some hotel managers said that the hotels do not offer accommodation for their
employees and this delayed the employees from keeping time of being at work. The effects make
the employees less active due to tiredness and lack of support like by giving them
accommodation within the hotel. The managers also said that the hotels do have the strategies
and plans of taking the hotels to the next level. The strategies and plans are always effective but
they are always affected by many external environment factors including the political
instabilities, economic constraints, legal factors and many other factors. They said that they only
depend on short-term goal and objective t for survival.
6.3.2 Supervisors
The supervisors being the third in leadership after the general managers and the hotel manager,
they also face their unique challenges and this affects them in their departments. They gave the
following challenges that they have been facing;
1.) High pressure from the top managers, they said that when managers are forced by the general
managers to do something, they are the final level of getting the pressure. They are forced to
make support staff to do many things at once due to pressure from above. This has caused them a
lot of cold wars and misunderstanding with the employees and the manager themselves. With
employees when they feel over used they speak out and become stubborn to their duties. Failure
to meet the requirements requested by managers, the supervisors are at threat of getting fired or
have a tough time with managers and this causes a lot of challenges to supervisors.
2.) Poor skilled employees, the supervisors are always there to make sure that their department if
offering what the customers’ needs and customers are satisfied. The supervisors said they face a
lot of challenges especially when they are given poorly experienced and skilled employees to
work with and thus affects their output quality.
3.) Inadequate resource needed to be used but the employees. They said that managers always
expect a duty to finished at a given duration and this affect the supervisors to meet the need due
44
to scarcity of resource like computers, kitchen tool and equipment, and poor working
environment.
6.3.3 Support staffs.

This are all employees working under the management of the supervisors. During the interview
the researcher managed to get the challenges they face in their hotels. They gave the following
challenges;
1.) Lack of support from the managers in terms of equipping them with skills and mental support
during their work time.
2.) High pressure from their supervisors that makes them uncomfortable while doing their duties
which makes the work faster and less effectives that causes a lot of mistakes.
3.) Internal misunderstanding due to cultural differences and believes among employees. They
say it sis sweet to work with employees from different communities but the challenge comes due
to difference in their way of life and believes.
4.) Late payment is another challenge faced by these employees. When the managers are delayed
to get the money to pay employees, they also face a series of challenges, like meeting their
personal goals and helping their families.
Recommendation
This study gave a wholesome detailed study on factors affecting the smooth and profitable
running of the hotels within Bondo town. The researcher therefore, recommended the following
as far as future studies will be done for the benefit of the hotel industry in within Bondo town,
nationally and internationally.
1. A study to be done on understanding the customer preferences and expectations. This will
help the hotels know the products they need and the skills needed to offer quality products
and services.
2. A study to be done on how the hotels are affected by the technological innovations and
developments. This will open an eye on seeing the positive view of technology and how to
be applied to welcome more customer per day and meet their objectives and goals
45
3. Examine the impact of employee training and development on hotel profitability. This can
include analyzing the relationship between employee satisfaction, customer satisfaction, a
nd revenue.
Conclusion
In conclusion, a study on factors that affect a smooth and profitable running of hotels in Bondo t
own has identified several key factors that can impact hotel operations and profitability. These fa
ctors include product and service quality, hotel strategies and plans, hotel culture and structure, p
hysical development, and the impact of technology and sustainability initiatives with many other
external factors. Therefore, when the hotels will get this article they should read it keenly and
carry out an analysis to identify their strength and weaknesses, opportunities and threats. It was
clearly seen that hotels are suffering many challenges and without solving them the industry may
lack future of operation.
46
Reference.
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Amit Sharma Arun Upneja, (2005),"Factors influencing financial performance of small hotels in
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Chalise, D. R. (2021). Factors Influencing Organizational Performance in Hotel Sector of

Nepal. Journal of Nepalese Business Studies, 14(1), 96–107.
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Chen, J.-L., & Kitingern, K. (2020). A Case Study of Factors Affecting the Performance of the
Hotel Industry of Chiang Mai in Thailand and the Impact of Covid-19: Taking De Chai Hotel
Group as an Example. Advances in Management and Applied Economics, 63–76.
https://doi.org/10.47260/amae/1064
DR. Deepak J., (2019). https://www.eajournals.org/wp-content/uploads/Factors-Affecting-

Customer-Satisfaction-in-the-Hospitality-Industry.pdf
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ROJECT%20REPORT.pdf? sequence=1
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hospitalityindustry.https://core.ac.uk/download/pdf/220096784.pdf
J Zhang,( 2016) https://crt.dk/wp-content/uploads/2018/11/Zhang_Enemark_APJIHT2016_5.pdf
Jane et al, (2013). https://www.semanticscholar.org/paper/FACTORS-AFFECTING-

PERFORMANCE-OF-HOTELS-AND-IN-A-OF-Ongori-
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Kasim, A. (2017). Does Environmental Knowledge Affect Environmental Responsiveness? A

Look at the Hotel Managers in Malaysia. Advanced Science Letters, 23(1), 373–377.
https://doi.org/10.1166/asl.2017.7190
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Lima Santos, Luís, Conceição Gomes, Cátia Malheiros, and Ana Lucas. 2021. Impact factors on
Portuguese hotel’s liquidity. Journal of Risk and Financial Management 14: 144. https://doi.org/
10.3390/jrfm14040144
Ndubi E., 2009. Factors affecting hotel room supply and demand in
Kenya.https://repository.kippra.or.ke/bitstream/handle/123456789/2673/DP97.pdf?
sequence=1&isAllowed=y
Figure 3; Ghant chart
Research report ghant chart layout for 3 months (September –early April); -
TIME IN MONTHS SEPT OCT NOV JAN JAN FEB FEB FEB FEB FEB MAR MAR MAR MAR APR
TIME WEEKS WEEK1 WEEK2 WEEK3 WEEK5 WEEK6 WEEK7 WEEK8 WEEK9 WEEK10 WEEK11 WEEK12 WEEK 13
Write the research proposal
Supervisor reading and do corrections
Finalize, present and submite
DUTIES 1
Get approval leter from school
Write and distribute appointment letters
Prepare questionnaires
supervisor vates questionnaires
distribute the questionnaires
DUTIES 2
HOTEL A
Collect questionnaires
carry out interviews
finalize by direct observations
HOTEL B
HOTEL C
HOTEL D
DUTIES 3
Organize and analyze data
Supervisor Analysis and advice
prepare report
prepare for presentaion
presentation and submition
Budget
Table 3.6; - Total budget table for the research.
Items Quantity Cost Amount
printing 220 copies 5 1100
transport 40 days 100 4000
food 40days 100 4000
charges 4 hotels 1000 4000
48
internet bundles 20 60hrs 1200
miscellaneous ……… 1000 1000
TOTAL 1530
Appendices
In this section there are some photos of the selected rated hotels in the Bondo town and others
taken after the research.
Appendix 1: Pictures
Picture 1; Don hotel front view.
Picture 2; pride hotel center view.
49
Picture 3; Bondo travellers hotel front view
Picture 4; Green Court Hotel Entrance and front views.
Picture 5; The aerial view of Bondo town.
50
Picture 6; the picture of researcher collecting data.
51
Appendix 2: letter to respondents.
Dear respondents,
RE: RESEARCH DATA.
Hello, my name is Sifuna Kakuli Brian, a student at Jaramogi Oginga Odinga of Science and
Technology. I am taking International Tourism Management whereby currently am carrying out
a research for degree award. I will be conducting a study tittle; factors affecting smooth and
profitable running of hotels within Bondo town, Siaya county Kenya. For that reason, I humbly
request to openly and freely fill the questionnaires when distributed. The information that you
will provide will be carefully and strictly used for academic purposes only. There shall be no
exposition of names or words against you in this research. The inputs will help to solve many
problems affecting our hotels by revealing them.
Yours Faithfully,
…………………
Sifuna Kakuli Brian.
B231/0134/2019.
52
Appendix 3: Research Questionnaire.
Kindly answer the following questions by putting a tick in the appropriate box or by writing any
explanation in the space provided bellow. SECTION A:
1. Gender: Male { } Female { }
2. Number of Years in Service
Between 18-25 { } Between 26-30 { } Between 31-50 { } Above 51 {}
3. Highest Level of Education:
Diploma { } Bachelors { } Postgraduate { } Other (specify)…………….

4. Respondent Category
Senior Management { } Middle Level Management { } Support Management { }
SECTION B: EXTERNAL ENVIRONMENT.
Do the following external environment factors affect the smooth and profitable running of hotels
within Bondo town?
How would you rate each factor in table 3.7 On how they affect the smooth and profitable
running of hotels within Bondo town? (either Very high, high, moderate or low). Kindly choose
one and fill in the rate space.
Table 3.7: External environment factors.
NO. FACTOR YES NO RATE
Political instability
Legal factors
Economic nature
Social culture
Technology (ICT)
53
Ecological factors
Globalization
If there is any information you feel will be useful as far as external environment is concerned,
kindly explain in the space provided bellow.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
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………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………....
SECTION C: INTERNAL ENVIRONMENT
Do the following internal environment factors affect the smooth and profitable running of hotels
within Bondo town?
How would you rate each factor in table 3.8 On how they affect the smooth and profitable
running of hotels within Bondo town? (either Very high, high, moderate or low) Kindly choose
one and fill in the rate space.
Table 3.8: internal environment factors.
NO. FACTOR YES NO RATE
Level of employee skills
Product and service quality
54
Hotel strategies and plans
Hotel culture and structure
Physical development
If there is any information you feel will be useful as far as internal environment is concerned,
kindly explain in the space provided bellow.
…………………………………………………………………………………………………….
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Does the hotel have measures in place to prevent limitations that hinder it from succeeding?
Yes {} No {}
How would you rate the strength and effectives of these measures to hotel operations in your
hotel? Very High Extent { } High Extent { } Moderate Extent { } Low Extent { }
None at all { }
Kindly, briefly explain why
………………………………………………………………………………………………………
………………………………………………………………………………………………….…...
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
55
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Appendix 4: Interview Questions

What challenges do you think this hotel is facing that affects its operations? Briefly explain your
answer.
At a personal level and representative of other employees, what challenges have you been facing
in this hotel? Briefly explain your answer.
Do customers cause some challenges to the hotel? Briefly explain your answer.
The hotel measures, policies, and strategies: are they quality enough to keep the Hotel and you as
an employee on a safe and long run in operation? Briefly explain your answer.
What extra information do you have and feel to expose to us the researchers for the betterment of
this study purpose?
56
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FACTORS AFFECTING A SMOOTH AND PROFITABLE RUNNING OF HOTELS

WITHIN BONDO TOWN, SIAYA COUNTY IN KENYA.

SIFUNA KAKULI BRIAN,

A RESEARCH REPORT SUBMITTED TO THE DEPARTMENT OF TOURISM AND

Signature …………………………. Date………………..

SIFUNA KAKULI BRIAN

DR. DOROTHY ONYANGO ONJWA.

DEPARTMENT OF TOURISM AND HOSPITALITY MANAGEMENT SCHOOL OF

Table 1; Empirical framework………………………………………………………………...10

Table 3.2 Target population…………………………………………………………………...16

Table 3.3 Distribution of target population per Hotel………………………………………...16

Table 3.4; Z-score sampling table……………………………………………………………..17

Table 3.5 Respondents of each department per hotel…………………………………………18

Table 4.1.1 General information about the respondents………………………………………21

Table 4.2.1 Effects of Political instabilities……………………………………………………22

Table 4.2.2 Effects of legal factors……………………………………………………………..23

Table 4.2.3 Effects of economic factors………………………………………………………..24

Table 4.2.4 Effects of Social Culture……………………………………………………………25

Table 4.2.5 Effects of Information Communication Technology (ICT)…………………….......25

Table 4.2.6 Effects of ecological factors………………………………………………………26

Table 4.2.7 Effects of Globalization……………………………………………………………27

Table 4.3.1 Effects of employee skills level……………………………………………………28

Table 4.3.2 Effects of product and service quality……………………………………………29

Table 4.3.3 Effects of Hotel strategies and plans……………………………………………….30

Table 4.3.4 Effects of Hotel structure and culture………………………………………………31

Table 4.3.5 Effects of hotel physical development……………………………………………..32

Table 3.6; - Total budget table for the research……………………………………………….. 49

Table 3.7: External environment factors………………………………………………………..53

Table 3.8: internal environment factors…………………………………………………………54

Figure 1; Conceptual framework…………………………………………………………….9

Figure 2; Standard Sampling formula………………………………………………………..17

Figure 4.2.1 Effects of Political instabilities………………………………………………....23

Figure 4.2.2 Effects of legal factors…………………………………………………………..23

Figure 4.2.3 Effects of economic factors……………………………………………………..24

Figure 4.2.4 Effects of Social Culture………………………………………………………...25

Figure 4.2.5 Effects of Information Communication Technology (ICT)…………………….26

Figure 4.2.6 Effects of ecological factors…………………………………………………….26

Figure 4.2.7 Effects of Globalization…………………………………………………………27

Figure 4.3.1 Effects of employee skills level…………………………………………………28

Figure 4.3.2 Effects of product and service quality…………………………………………..29

Figure 4.3.3 Effects of Hotel strategies and plans……………………………………………30

Figure 4.3.4 Effects of Hotel structure and culture…………………………………………..31

Figure 4.3.5 Effects of hotel physical development………………………………………….32

Figure 3; Ghant chart………………………………………………………………………….48

Picture 1; Don hotel front view………………………………………………….....................49

Picture 2; pride hotel center view…………………………………………………………….50

Picture 3; Bondo traveler’s hotel front view……………………………………....................50

Picture 4; Green Court Hotel Entrance and front views………………………………………50

Picture 5; The aerial view of Bondo town……………………………………………………..51

Picture 6; the picture of researcher collecting data……………………………………………..51

1.1 Background of the Study.

1.2 Problem statement.

1.3 General objective

1.3.1 Specific Objectives of the study.

1.4 Research Questions.

1.7 Significance of the study.

1.8 Scope of the study.

2.1.2 The Structural Contingence Theory Developed by Pennings, J. M. (1987).

2.2 Conceptual Literature Review

Figure 1; Conceptual framework.

Independent Variables Dependent variables

 Human and capital resources

Table 1; Empirical framework