TOURISM PRODUCT PACKAGING AND FINANCIAL PERFORMANCE OF TOUR OPERATING COMPANIES IN NAIROBI
DOI:
https://doi.org/10.47941/jbsm.330Keywords:
Attractions, Amenities, Accessibility, Innovation and Financial Performance.Abstract
Purpose: The general objective of the study was to investigate the relationship between tourism product packaging and the financial performance of selected tour operating companies in Nairobi. The specific objectives of the study were to determine, attraction, amenities, accessibility and innovation on the financial performance of tour operating companies in Nairobi.
Methodology: This was a descriptive type of research design that was conducted through the study of a population consisting of 291 tour operating companies that are members of Kenya Association of Tour Operators (KATO). The sample consisted of 7 tour operating companies who have been placed in the Category B membership, under the Kenya Association of Tour Operators listing. The study employed the purposive sampling technique to select the sample. The researcher intended to conduct a census on the sample. Questionnaires were the main tools of collecting data. The research used semi - structured instruments so as to ensure that the data collected possessed both quantity and quality attributes. Further, that data collected offered additional information pertaining to the study. The researcher used the SPSS data editor as a tool to facilitate the analysis and presentation of the quantitative data, and a content analysis to check for anomalies in the qualitative data. To estimate the relationships among the independent and dependent variables the researcher used regression analysis.
Results: The findings showed that fifty-two-point seven percent (52.7%) of the financial performance of the tour operating companies is explained by the tourism product packaging. There is a significant relationship between tourism product packaging and financial performance of the tour operating firms (p Value= .041). The Beta value for attractions (Beta=.165), amenities (Beta=.329), accessibility (Beta=.292) and innovation (Beta=.353) are positively related to the financial performance of tour operating companies. With regards to their statistical significance, attractions (t=.764, p=.005), accessibility (t=1.767, p=.003) and innovation (t=1.909, p=.040) is significant. However, amenities (t=1.429, p=.156) was not significant.
Contribution to theory, policy and practice: The study recommended that there is need for aggressive marketing to be made both to the local and international markets. There is also a need for the government to put efforts in improving the road networks which are leading to the attraction sites. The government needs to review the policies which have been provided to guide the tourism sector. The policies should be strict and implemented in a way that it eliminates the rogue operators who have been in the long time affecting the financial performance of legally registered touring companies. There is also need for awareness creation and training on innovative ideas for improving the tourism industry.
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