Kenya: New Trends See Kisumu Hotel Rates Soaring

By Anita Chepkoech

Five years ago, it was possible to find decent accommodation in Kisumu Town for about Sh1,500.

Not anymore, unless it is a dingy room in some seedy part of town. And this after some 20 middle-level and high-end hotels have come up in the town in the last five years.

The newer hotels include Victoria Comfort Inn, Scottish Tartan, Parkview Safari Hotel and Apartments, Le Vic, Great Lakes and Le Savannah.

Hotel rates in Kisumu have shot up in the past three years due a sharp increase in demand for accommodation and conference facilities.

The average charge for a standard room is now Sh2,500, up from Sh1,000 a few years ago.

The rising rates have been attributed to the changing trends in the market, which have increased the cost of running hospitality institutions.

The hotel managers DN2 spoke to singled out devolution, new technologies, generational, social and demographic changes and education as the major contributory factors.

“With the advent of devolution, new facilities cropped up, intensifying competition,” said Mr Robinson Anyal, the Kisumu Hotel Managers group chairman and marketing manager at Acacia Premier Hotel.

Hotels are adopting new technologies and social media marketing to remain relevant and increase their visibility and customer experiences.

According to the managers, educated customers are well-informed and more demanding with regard to services.

Mr Anyal said the boom had also led to increased creativity and product differentiation among industry players.

TOUGH CALL

“New facilities have raised the bar and hoteliers with old hotels have had to give them a facelift or risk being pushed out of business,” he said.

Dr Bernard Olayo, the proprietor of Victoria Comfort Inn, concurs, adding that having Wi-Fi and giving clients newspapers are no longer considered enough by many clients, so the have upped their game and now offer cyber services.

“Using my experience as a business traveller, I chose to tailor my services in line with what I would consider a comfortable setting for maximum relaxation, good food and provide the cyber services and Wi-Fi to enable patrons to complete any work they might have and also stay in touch with the outside world,” said Dr Olayo.

He said hoteliers have been forced to improve room standards.

“We realised that people prefer spacious rooms with huge, comfortable beds. We made them en suite, with air-conditioners, television screens, a fridge and tea/coffee maker for maximum comfort,” he said.

“Since we target business clients, we also have a study desk. We have kept interior décor simple and nice, in line will the old adage, ‘less is more,'” he added.

This means there is little room for employing untrained or uneducated personnel in the hospitality industry because of the need for higher skills to handle the increasing number of high-class patrons.

This is attributed to the devolution of expertise to the counties, international tourists and the establishment of more training institutions in western Kenya, with many universities setting up branches in the town.

“It worth mentioning that it is now common to find university graduates working as receptionists or waiters in hotels. This a positive trend but, naturally, it means the cost of running hospitality institutions goes up since graduates demand more pay than unskilled workers,” said Mr Anyal.

Generally, there has been a generational, social and demographic change, with younger people occupying top management positions.

They fall under the youthful generation that is IT-oriented, making technology the guiding factor for any investor seeking to remain in the market.

Before devolution, hospitality standards in Kisumu were comparatively low, such that having a television in a hotel room was considered a luxury. But with the stiff competition, old hotels in the town have been forced to upgrade or review their rates downwards.

Mr Anyal said they they had witnessed increased bookings for conferences and workshops, with most of their clientèle being domestic.

The world-class hotels are attracting high-end holidaymakers and the elite, which dictates the kinds of services offered at the institutions.

The Lake Victoria Tourism Association Chairman, Mr Daniel Okumu, said the emergence of world-class hotels in the region had improved business tourism.

“Unlike five years ago, Kisumu has grown in popularity as a weekend and holiday retreat. We receive many local and international visitors,” he said.

The hoteliers are planning to hold a conference on May 5 and 6 to discuss the emerging market trends and how to improve the hospitality industry.

“We shall invite other players, including tourism practitioners,” said Mr Anyal.

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