Evaluating the Effectiveness of Omnichannel Customer Retention Strategies on Hotel Profitability in Selected Urban Cities in Cameroon

In the competitive landscape of the hotel industry in some selected rapidly growing urban cities in Cameroon (Bamenda, Yaoundé, and Douala), maintaining profitability poses significant challenges as businesses grapple with balancing short-term gains against long-term sustainability. This study examines the critical role of customer retention strategies in enhancing hotel profitability within these cities, utilizing data from 108 hotels selected through purposive sampling and employing self-administered questionnaires validated for reliability through test-retest and Cronbach's alpha. The analysis was conducted using the Ordinary Least Squares (OLS) estimation technique, which highlights effects among variables while controlling for potential influencing factors. The findings reveal a noteworthy negative effect of customer education initiatives on profitability, suggesting that hotels often use industry-specific language and educational materials that, when poorly communicated, can alienate customers. For instance, if a hotel inadvertently leaks confidential customer information while attempting to educate or inform them, it can severely damage trust and loyalty, ultimately resulting in decreased retention and profitability. Conversely, effective communication strategies and the implementation of reward systems, such as discounts and recognition, significantly enhance profitability, particularly in Bamenda, Yaoundé and Douala. Overall, the findings indicate a strong positive effect of customer retention tactics on hotel profitability across all three cities, emphasizing the necessity for improved financial education offerings, strengthened customer protection strategies, and refined communication efforts to boost engagement. This study provides useful insights for hotel management in Cameroon, showcasing the importance of fostering customer loyalty in an increasingly competitive market.