Abstract:
This study investigates the effect of pricing strategies on guest retention at Capital View Hotel in
Koforidua. It aimed to identify existing pricing strategies, examine influencing factors, and assess
guest retention metrics such as repeat bookings, length of stay, and customer satisfaction. Using a
descriptive research design with a sample of 70 guests and 30 employees and management of the
hotel, the study employed convenient sampling for guests and purposive sampling for hotel
management, with data collected via online questionnaires and analyzed using SPSS version 23.
The findings revealed that the hotel's low-price and special rates strategies effectively attract
budget-conscious guests, while complementary services enhance bookings and guest experience.
Despite the frequent use of promotional pricing, its impact is less significant compared to other
strategies. The study highlights the importance of internal factors like cost structure, alongside
marketing goals and external factors such as market demand and competition. Technological
advancements, including dynamic pricing algorithms and big data analytics, are crucial for
optimizing pricing decisions. Guests expressed high satisfaction with their stay and likelihood to
recommend the hotel, though there was variability in overall satisfaction and perceived value.
Recommendations include continuing with low-price and special rates strategies, expanding
complimentary services, utilizing customer data for targeted pricing, and investing in advanced
pricing technologies.
