The Adoption of Energy Management Practices (A Circular Economy Principle) and Its Influence on Customer Satisfaction Among Star-Rated Hotels in Kenya

The tourism industry is considered a significant contributor to foreign exchange for many economies worldwide. Despite its positive contributions, there are challenges that the tourism sector poses and cannot be disregarded. Tourism and hospitality still contribute 8% of the greenhouse gas (GHG) emissions globally. These challenges have led many destinations to adopt strategic business models in their operations to mitigate the negative impacts of climate change. This research sought to assess the relationship between the level of adoption of energy management and customer satisfaction among star-rated hotels in Kenya. The study’s specific objective was to determine if the adoption level of energy management practice among star-rated hotels in Kenya influences customer satisfaction. The study population consisted of 48-star-rated hotels and 8,731 hotel customers in the Coast Region, Kenya. The study used a mixed-method research design. Stratified sampling was used to select the 2-to-5-star-rated hotels. Disproportionate sampling was used to apportion questionnaires to hotels, while simple random sampling was employed to pick customers. Required data was gathered from customers through structured questionnaires, interviews, and personal observation. The data collected from questionnaires was coded and transcribed into Statistical Package for Social Sciences (SPSS v.29). A multiple regression analysis established statistically predictive estimates of energy management on customer satisfaction (B = 0.752, t = 6.649, p = 0.000 < 0.05). The study recommends that energy management practices be integrated into hotel processes for better customer satisfaction. Star-rated hotels need to communicate hotel policies and structure customer sensitisation on sustainable energy management to attract environmentally conscious customers—the fastest-growing segment of the hotel market.