Influence of Customer Retention on Sales Performance in Tanzania Hotel Industry, A case of Four Stars Hotel
The aim of the research was to investigate how customer retention affects sales performance in the hotel industry in Tanzania. The study had three main specific research objectives that formed the basis of the findings. The customer retention was divided into different categories (objectives), including employee training, quality of service, and pricing. Therefore, the specific research objectives were used to evaluate the impact of customer retention on sales performance in Tanzanian hotels. The research followed a quantitative approach, where data was collected using a closed questionnaire. Random sampling was also employed to select 317 respondents out of the 1800 customers who visit three hotels in Mwanza city, Tanzania. The unit of analysis was four-star hotels in Ilemela, and Nyamagana District. The data was analyzed using inferential statistics with SPSS version 26 software, which included descriptive statistics, correlation analysis, and regression analysis. The results showed that employee education, service quality, and pricing significantly affect sales performance. The study concludes that having well-educated and trained employees, providing high-quality services, and setting appropriate prices can attract and retain customers, leading to increased revenue and improved sales performance. Therefore, hotel managers are advised to hire the best employees who can cater to customers’ needs, offer quality services, and ultimately enhance business performance.
Keywords; Customer retention, hotel industry in Tanzania, sales performance.
