Effects of Promotion Practices on the Organizational Performance: In Case of Stars Hotels in Gulale Sub city

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.