Factors That Affect the Pricing Strategy in the Hotel Industry in Kenya

You are probably thinking about grabbing a quick lunch, maybe you have a dinner date in mind, or you got time off work, and you want to enjoy a weekend getaway. A perfect hotel will be ideal for providing all these services, but the question is – can you afford it? What affects the pricing strategy in the hotel industry?

Factors That Affect the Pricing Strategy in the Hotel Industry in Kenya / Source: marriott.com

The Hotel Industry of Kenya

The hotel industry is re-known in the world for providing the best services a customer would desire. Not only is the sector appreciated locally, but multiple awards show the international recognition that we receive. The big player that boosts the operations and profitability of the hotel sector is our wildlife.

Both local and international tourists want to enjoy a decent meal and suitable accommodation when visiting a place. Moreover, anyone wants to have excellent services while they are out for a quick lunch. Did you know that many youths have received employment from hotel jobs in Kenya? The hotels in Kenya are divided into two.

  • The food sector – is made up of restaurants, cafes, and eateries. They serve a variety of different cuisines depending on the nature of the hotel. There is a blend of local dishes, and some hotels expound on multiple signature dishes from foreign countries.
  • Accommodation sector – they are more recognized because they stand out and make up for the most awards. They offer accommodation services, multiple dishes, and additional services, which vary from hotel to hotel.

Pricing Strategy of the Hotel Industry

The hotel and restaurant act is evident that there should be a Uniform Commercial Code regarding its services. However, that does not restrict them to the prices charged in different restaurants because the quality is also considered. Every business entity under the hotel industry should be registered and meet the requirements needed for operations.

That clarifies that you stand to get different prices in different hotels because of various factors which are put into considerations. These same factors are also used to rate the hotels and restaurants in Kenya. The more points a business set-up gets, the better ratings it receives. However, the bottom line is aimed at providing quality services to customers.

Factors That Affect the Pricing Strategy in the Hotel Industry in Kenya / Source: rentokil.com

Factors that Affect the Pricing

Different factors affect the pricing of hotels. The hotel and catering management in every set-up should consider the following factors to ensure they are among the best service providers. These factors include

1. Location

The location of hotels affects the pricing of products and services. Hotels in Nairobi price their commodities differently from hotels in Mombasa. However, hotels on the coast are equally expensive as the hotels in the Capital. This is because people travel to the coast for pleasure and the Capital for business, so there is always a customer flow.

2. Services

The kind of services offered will significantly affect the prices of the hotels’ services. For instance, for restaurants, services include food, delivery, discounts, packaging, etc. For accommodation hotels, services include accommodation, food, housekeeping, parking, transfers, safe, SPA services, fitness, pets allowed, etc. The more the services, the higher ranking that you receive.

3. Structure

From the externals structure to the interior décor, the design of the hotel will affect the pricing. If your hotel is cozy, you will probably charge a bit higher because you are also selling comfort.

4. Customer Review

The customer satisfaction that is represented in reviews will be a significant drive to your pricing strategy. If your customers enjoy your services, then you’re probably pricing your products and services appropriately.

5. Type of Hotel

Different hotel ranks affect the prices of the hotels and restaurants. For example, 5-star hotels are more expensive than 3-star hotels.

Factors That Affect the Pricing Strategy in the Hotel Industry in Kenya / Source: go2africa.com


The hotel industry in Kenya is vast and offers a lot of services to the customers. However, some factors separate the best from the rest. These points help the newly developed hotels grow as they need to learn where they should improve and go on to make the changes. As a player in this industry, you must consider these factors and rate where you lie in ranks.

Are you in the hotel industry? How do you price your products and services?