FACTORS AFFECTING CUSTOMER RETENTION IN HOTEL SERVICE IN ADDIS ABABA THE CASE OF WABE SHEBELE HOTEL

Abstract

Many researchers and academicians have been highlighted the importance of the customer retention. In today's competitive markets, an aggressive competition between hotels is seen more than in the past. The relationship with customers and its management are significant factors to win this fierce competition. Thus, this study was carried out to investigate and to address the gap, the factor of customer retention and how they affect the retention strategy in wabeshebelle hotel by taking in to account increasing the number of modern hotels in Addis Ababa, Ethiopia. This study used both quantitative research approaches to analyze factors affecting customer retention. Explanatory research was used to clarify why and how there is a relationship between two or more aspects of a situation or phenomenon. Moreover, this design is used to identify the most significant variables that respondents consider in customer retention. Descriptive research will be used to describe the demographic characteristics. In this study, simple random sampling techniques are applied in determining the participants that makes the researcher to answer the research questions and to meet the research objectives. The rationale behind using simple random technique is because each member of population will have equal chance of being selected. Findings show that the effect of all variable on the customer retention of wabesheble hotel is moderate level as observed by its customers. Hence, it is confident to conclude that, the effect of selected variables of customer retention strategies at wabshebele hotel are at the moderate level.