PRICING STRATEGIES AND THEIR EFFECT ON GUEST RETENTION AT CAPITAL VIEW HOTEL IN KOFORIDUA

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.