Jovago.com released Kenya Hospitality Report

While this is not one of Lillian Gaitho’s regular contributions it nevertheless makes interesting reading.

JOVAGO Launches Hospitality Industry Report on the Kenyan Sector

Report analyzes different aspects, factors and key drivers that majorly influence the industry

(Posted 25th September 2015)

A report carried out by Jovago on a host of factors that make up the tourism industry in Kenya ahead of the Africa Travel Association scheduled for November has revealed key trends in the sector as well as distinctive opportunities in the industry.

‘Our main aim is to ensure that anyone travelling anywhere in Kenya is assured of finding the right accommodation as per price and convenience. Our search parameters take into consideration a wide range of factors including price, place, star ranking and room availability‘ explained Estelle Verdier, Managing Director for Jovago East and Southern Africa, ‘We are excited to be launching this report at a time when the sector is undergoing reconstruction after the turbulence experienced in the last few years‘.

A look at search trends by customers reveals a major interest in 3-star hotels for both leisure and business travelers across the listed cities; while WiFi, swimming pools and air conditioning lead on the amenity list respectively. This aptly reveals that, while most tourists will not necessarily change their desired holiday destination based on price factors, balancing the costs with the amenities provided is a key driver on the hotel of choice. Diani leads in the search for 3* hotels at 44% followed by Nairobi at 40% and Naivasha at 38%. It’s interesting to note that Nakuru, the epicenter for Rift Valley explorers defies this trend with a 43% lead searches on 2* hotels.

The upward growth in online payments can be attributed to the rise of eCommerce across the continent, and the need for customers to make a complete purchase while shopping online. This has also been boosted by the proliferation of mobile money transfer platforms as well as the ability for most hotels to accept payment by card. Top on the list of preferred mobile money transaction is Mpesa in Kenya while Tigo Pesa makes its mark in Tanzania and Rwanda markets. However, a large percentage of customers (47%) still opt for pay-at-the-hotel option, possibly due to its low risk of online fraud.

See full report here:

Location demand by customer, which basically takes into account the destinations sought after by the Kenyan traveler again points to predominance by Nairobi at 29.1% while Diani Beach attracts 2.92% of total searches.

The report further outlines the place of Travel and Tourism on the global map, as well as stating both challenges and opportunities in the sector. Of note is the fact that in spite of the difficult years that has led to its current recovery period; tourism still takes lead share in generating employment at 9.2%. This amounted to 544,000 jobs in 2014.