Effects of Technological Integration on Performance of Hotel Industry in Kenya.

Abstract

Kenya's hotel industry faces significant challenges including intense competition, rising operational costs, inconsistent service quality, and evolving guest expectations for digital services. Many hotels have been slow to adopt comprehensive technological solutions, creating a gap between potential benefits of technology integration and actual performance improvements realized. This study investigated the effect of technological integration on the performance of Kenya's hotel industry. The research was grounded in the Technology Acceptance Model, which explains technology adoption through perceived usefulness and ease of use factors. A descriptive research design was employed targeting eight Accor hotels in Kenya. The study population comprised 168 individuals including frontline staff, customer care representatives, and managers. Using stratified random sampling and Yamane's formula, a sample size of 118 participants was selected. Data collection utilized structured questionnaires, achieving an excellent response rate of 81.4% with 96 completed responses. Quantitative data analysis was conducted using SPSS version 27.0, employing descriptive statistics and regression analysis. The regression analysis revealed compelling findings demonstrating a strong positive relationship between technological integration and hotel performance (R = 0.806). Technology integration explained 72.5% of performance variance (R2 = 0.725), with the regression coefficient (β = 0.735) indicating substantial performance enhancement per unit technology improvement. Statistical significance was confirmed through ANOVA results (F = 112.891, p < 0.001) and coefficient testing (t = 10.626, p < 0.001). The study therefore concluded that technological integration serves as a primary driver of hotel success in Kenya's hospitality sector. The study hence recommended that hotels should prioritize comprehensive technology investment, focus on guest service technologies, invest in human capital development, foster industry collaboration, and implement robust performance monitoring systems to achieve sustained competitive advantage.