DOES DIFFERENTIATION STRATEGY INFLUENCE HOTEL PERFORMANCE?

Differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and perceive to be better than or different from the products of the competition. This study examines the effect differentiation strategy on hotels performance. Past literature indicates that few studies were done to examine the effect of differentiation strategy in hotels and tourist and hospitality industry. Specifically, numerous of previous researches focused on banking and manufacturing industries in developed countries. For that reason, to explore our understanding in this area, the present study was conducted in Nigeria hotels industry. The data were collected using survey designed from 83 owner/manager of hotel in Kano North West of Nigeria using census as sampling technique. The data were analyzed using SPSS and Partial Least Square (PLS) technique. The findings indicated that differentiation strategy is significant on hotels performance. Similarly, the result signifies the appropriateness of PLS in analysis and has contributed better understanding of differentiation strategy on hotel performance. Further, finding is significant to practitioners and policy makers in enhancing the practicability/actions on implementing best strategy.Based on these finding, theoretical and practical implications, and future research suggestions were discussed.