Influence of optimal room occupancy strategies on revenue maximisation during slack periods in selected 3- to 5-star hotels in Ghana

Abstract

An organisation’s inability to generate adequate income to sustain its business activities poses a significant challenge to maintaining profitability. Employing revenue-maximisation strategies is crucial to securing necessary resources and ensuring the continued success and stability of organisations. The purpose of this study was to examine the strategies adopted to achieve optimum room occupancy during slack periods to maximise revenue in 3-5 star-rated hotels in selected regions of Ghana. The study adopted a descriptive survey and incorporated mixed methods for data collection. The study was guided by neoclassical economic theory. The Yamane formula was used to determine a sample size of 60 hotels rated 3- to 5-star from the study sites. A stratified simple random sampling was employed to select 60 hotels that were used as study sites. In each hotel, eight respondents — general managers and departmental supervisors — were targeted, giving a total of 480 respondents. A purposive sampling method was used to select eight key informants from each category, drawn from the Ghana Tourism Authority and the Association of Hoteliers. Questionnaires were used to collect quantitative primary data from general managers and department heads. Key informant interview schedules were used to collect qualitative data from key informants. A multiple linear regression model was used to predict the overall relationship between independent and dependent variables. The analysed data was presented in tables and charts. The results revealed a significant correlation (R −0.823 = 82.3%) between the strategies employed to achieve optimal room occupancy. Based on the findings, it is recommended that 3- to 5-star-rated hotels in Ghana continue to focus on offering special rates and targeted marketing campaigns to attract guests, as well as collaborating with other stakeholders to expand their reach.

Keywords

• Competition
• hotel industry
• strategic alliances
• strategic management
• financial performance
• Ghana