Abstract:
The effect of promotion practices element has been found to be an important input to hotel industry.
This study follows a multiple linear regression model that examines the effect among the
dimensions of effect of promotion mix element and profitability of hotel industry assess the effect of
promotion mix element and its effects on profitability of hotel industry toward the Gullele, Addis
Ababa five stars hotel industry. The researcher used both explanatory research design and
descriptive research design to analyze effects of promotion mix element and profitability of hotel
industry assess the effect of promotion mix element and its effects on profitability of hotel industry
toward the Gullele, Addis Ababa five stars hotel industry. The researcher was used primary and
secondary data collection methods to analyze promotion mix element and profitability of hotel
industry assess the effect of promotion mix element and its effects on profitability of hotel industry
toward the Gullele, Addis Ababa five stars hotel industry. The researcher also used Multiple linear
regression model to analyze promotion mix element and profitability of hotel industry assess the
effect of promotion mix element and its effects on profitability of hotel industry toward the Gullele,
Addis Ababa five stars hotel industry. The research was conducted by administering 186 forms of
questionnaires and interview. The findings discovered a positive significant effect between the
dimensions of effect of promotion mix element and profitability of hotel industry: Effect of
promotion outbreak of hotel economy and effect of promotion on employee aspect were positively
correlated with profitability of hotel industry. But effect of promotion on sales revenue and effect of
promotion on consumer’s consumption of hotel industry were negatively correlated with dependent
variables profitability of hotel industry. The results of the study contribute to enhance the insights
for the hotels owners, managers of the hotels how improve the profitability of the hotel industry by
improving effect of promotion practices element.
