RELATIONSHIP BETWEEN GUEST EXPERIENTIAL VALUE AND BEHAVIORAL INTENTIONS OF BUDGET HOTELS IN MACHAKOS COUNTY, KENYA: THE MODERATING ROLE OF PRICE

Abstract

The growing demand for affordable yet high-quality hospitality experiences has driven the rise of budget hotels in Kenya. However, despite their increasing presence, limited empirical evidence exists on how guest experiential value particularly service quality, guest perception, and satisfaction influences behavioral intentions in this segment. Previous studies in Kenya have predominantly focused on luxury or mid-tier hotels, leaving a contextual and empirical gap regarding how experiential value shapes repeat patronage and positive word-of-mouth in budget hotels. This study, therefore, sought to evaluate the relationship between guest experiential value and behavioral intentions of budget hotels in Machakos County, Kenya, a moderating role of price.The study was guided by the Expectancy Disconfirmation Theory, Theory of Reasoned Action, and Rational Choice Theory. A mixed-method approach employing a convergent parallel research design was adopted. The target population comprised 45 registered budget hotels in Machakos County. Using purposive sampling, 10 hotels were selected, from which 10 managers (one per hotel) and 344 guests were drawn, making a total of 354 respondents. Data were collected using structured questionnairesfor guests and semi-structured interview guides for managers. Quantitative data were analyzed using descriptive and inferential statistics, including ordinal logistic regression and Spearman’s rho correlation, while qualitative data were analyzed thematically. Findings revealed that service quality (β = 4.294, p = 0.000), guest perception (χ² = 299.959, df = 1, p = 0.000), and guest satisfaction (β = 2.427, p = 0.000) significantly influenced behavioral intentions. Furthermore, price significantly moderated this relationship (Measure = 0.620; p = 0.015). Thematic analysis of qualitative data highlighted guests’ appreciation for affordability and cleanliness but pointed to the need for improved staff responsiveness and amenities. The study concludes that enhancing service quality, managing guest perceptions, and maintaining fair pricing are critical to strengthening guest loyalty and positive behavioral intentions. It recommends that hotel managers adopt value-based pricing strategies, invest in service quality training, and leverage guest feedback systems for continuous improvement. The study contributes to knowledge by extending the application of behavioral and economic theories in explaining consumer behavior within Kenya’s budget hotel sector and provides an empirical basis for policy and managerial decisions promoting sustainable hospitality growth.