Digital Marketing Strategies and Organizational Performance in The Hospitality Sector in Kenya. A Case of Five-Star Hotels in Nairobi City County

Abstract

The rapid growth of digital technologies has transformed the hospitality industry, compelling hotels to adopt innovative marketing approaches to remain competitive. This study examined the influence of digital marketing strategies on the performance of five-star hotels in Nairobi County, focusing on search engine optimization (SEO), email marketing, and social media marketing. Guided by the Resource-Based View (RBV) and Technology Acceptance Model (TAM), the study employed a descriptive research design. Data were collected from 70 managerial staff members through structured questionnaires, of which 69 were returned, yielding a response rate of 98.6%. Both descriptive and inferential statistical methods were used in the analysis of the data using SPSS Version 27. The results showed that five-star hotels used all three aspects of digital marketing extensively: social media marketing, email marketing, and SEO. Correlation analysis results showed that the three strategies, social media marketing (r =.735, p <.05), email marketing (r =.764, p <.05), and SEO (r =.712, p <.05), had a high positive association with organizational success. Additionally, digital marketing strategies were found to have a significant impact on performance outcomes like customer acquisition, revenue growth, and market share, as evidenced by multiple regression analysis, which found that they jointly explained 68.3% of the variance in organizational performance (R2 =.683, p <.05). The study also found that the connection between digital marketing strategies and organizational performance was significantly moderated by organizational culture (β =.287, p <.05). Compared to hotels with strict or conventional structures, those with creative, cooperative, and data-driven cultures gained more from their digital marketing campaigns. According to the study's findings, digital marketing tactics are crucial for influencing organizational performance in the hospitality industry. Social media marketing increases brand exposure and customer connection, email marketing boosts consumer engagement and loyalty, and SEO increases online visibility and direct bookings. The results also confirm that by encouraging creativity and cross-functional cooperation, a positive corporate culture increases the efficacy of digital tactics. The study recommended that hotel management should integrate analytics to track performance and make strategic investments in social media, email, and SEO. To maintain a competitive edge, hotels should also foster a culture that encourages digital innovation and ongoing learning. By empirically illustrating the moderating impact of organizational culture in the relationship between digital marketing and performance in the setting of five-star hotels in Kenya, the research adds to our understanding of the subject.