Cultivating Customer Patronage Through Vertical Integration Strategy in Hospitality Firms in Nigeria

This paper explores possible alternatives through which customer patronage of hospitality-based firms can be cultivated, attracted, and sustained to remedy the phenomenal low patronage experienced in the hospitality industry. It adopts a theoretical analytical methodological paradigm and develops a logical framework involving downward integration strategy for hospitality firms, particularly hotels. The paper argues that the dwindling state of customer patronage in hotels can be addressed through vertical integration, involving downward trajectory, where the joint/complementary demand nexus between tourism and hospitality services can be explored. The paper concludes that given the dwindling trend of most firms’ market, increasing trend can be triggered through customer cultivation and sustenance. Thus, the paper recommended the adoption of downward integration growth strategy, where investment in tourism attraction/destination can be used to cultivate customers for the hospitality industry.

customer cultivation, customer patronage vertical integration, downward vertical integration, upward vertical integration

Adeyemo, B. W. (2003). Hospitality marketing. Lagos: Adeyz Consulting.
Ali, M., Brookson, S., Bruce, A., Eaton, J., Heller, R., Johnson, R., Langdon, K., & Sleight, S. (2001). Managing for excellence.
London: DK Books.
Aluko, M., Odugbesam, O., Gbadamosi, G. J., & Osuagwu, R. (2011). Business policy and strategy. Ikeja: Longman Nigeria Plc..
Chuku, C. D. (2011). Tourism and sustainable development in Nigeria. Port Harcourt: Rohi Publication.
Ekechukwu, L. C. (2014). Issues in human resources management practices in tourism and hospitality industry in Nigeria. Paper
presented at the 2nd Annual Conference of the Association for Tourism Development in Nigeria.
Eketu, C. A. (2012a). Antecedents of enterprise resilience in the Nigerian hospitality sector: A phenomenological approach.
Journal of Business and Value Creation, 1(1), 107-144.
Eketu, C. A. (2012b). Organizational structural pattern and service innovation in the Nigerian hospitality firms. Trend Journal of
Management and Social Sciences, 4(4), 108-116.
Eketu, C. A. (2012c). The effectiveness of the Nigerian hospitality enterprise: A study on human capital development. The
University Advanced Research Journal, 8, 26-34.
Jian, W. (2014). On the development of sports tourism in China. Journal of Chemical and Pharmaceutical Research, 6(6),
1918-1924.

Kazmi, A. (2008). Strategic management and business policy. India: Tata McGraw-Hill.

Konecnik, M., & Go, F. (2010). Tourism destination brand identity: The case of Slovenia. Retrieved from
http://www.researchgate.net/profile/Maja_Konecnik_Ruzzier/publication/228634673_Tourism_destination_brand_identity_T
he_case_of_Slovenia/links/53da29940cf2a19eee882927.pdf
Kotler, P., Bowen, J. T., & Makens, J. C. (2010). Marketing for hospitality and tourism. New Jersey, NJ: Pearson Education, Inc..
Mattila, A. S. (2006). How affective commitment boosts guest loyalty (and promotes frequent-guest programs)? Cornell
Hospitality Quarterly, 47(2), 174-181.
Middleton, V. T. C., & Clarke, J. (2001). Marketing in travel and tourism. Oxford: Butterworth-Heinemann.
Mishra, A., & Akbar, M. (2007). Empirical examination of diversification strategies in business groups: Evidence from emerging
markets. International Journal of Emerging Markets, 2(1), 22-38.
Ogbuji, C. N. (2012). Marketing parade. Owerri: Stramark Communication Consult.
Okoli, C. I. C. (2014). Event tourism and the tourism event. A conceptual conundrum in event tourism. Paper presented at the
Conference Organized by Association for Tourism Development, September 7-9, University of Nigeria, Nsukka.
Oseni, A. D., & Momoh, A. K. (2012). Effective marketing mix element on destination marketing. NIMN Marketing Journal, 1(1),
77-87.
Otunba, D. R. (2010). Nigerian tourism business: Contentions and mitigations. Paper presented at the National Conference of the
Hotel and Personal Services Employers Association of Nigeria (HOPSEA).
Panda, A. (2013). Customer patronage towards food and grocery retail: A case study. Global Journal of Management and Business
Studies, 3(9), 955-960.
Porter, M. E. (1985). The competitive strategy: Creating and sustaining superior performance. New York, NY: Free Press.
Rahmam, M. S., Abdelfattah, F. A., & Mohamed, O. B. (2014). Service quality and customers’ patronage decision of healthcare
insurance products: In-depth interview approach. Internal Journal of Academic Research in Business and Social Sciences,
4(7), 526-544.
Wagen, V. L. (1999). Professional hospitality: Core competencies. Global Books & Subscription Services.
Wagen, V. L. (2001). Event management for tourism, cultural, business, and sporting events. Melbourne: Hospitality Press.
Wagen, V. L., & Goonetilleke, A. (2003). Hospitality management: Strategy and operations. Frenchs Forest, N.S.W.: Pearson
Education Australia.