DIFFERENTIATION STRATEGY AND VENTURE SUSTAINABILITY OF HOTELS IN RIVERS STATE, NIGERIA

Abstract

This study examined the relationship between differentiation strategy and venture sustainability of hotel firms in Rivers State, Nigeria. Differentiation strategy was conceptualised through two dimensions: service quality differentiation and brand image differentiation, while venture sustainability was measured using customer retention rate and financial performance stability. The study addressed two research questions and tested two corresponding null hypotheses. A descriptive survey research design was employed, with a population comprising registered three-star and above hotels operating in Rivers State. Using purposive sampling, data were collected via a structured questionnaire from 96 top and middle management staff directly involved in strategic planning and service delivery. Data analysis was conducted using Pearson's product-moment correlation coefficient. The findings revealed a significant positive relationship between service quality differentiation and customer retention rate (r = .704, p < .01), and between brand image differentiation and financial performance stability (r = .683, p < .01). The study concludes that differentiation strategy is a critical driver of venture sustainability in the hotel industry. It is recommended that hotel firms improve service quality differentiation through continuous staff training and consistent service excellence to strengthen customer retention, while developing strong brand image differentiation through targeted marketing and unique service positioning to ensure financial performance stability.