The study examined the cost reduction strategies and organizational performance in the hotel industry in Uganda, taking a case study of the three selected hotels in Kampala, Uganda. The study specifically focused on determining the cost-reduction strategies currently employed by the selected hotels and assessing the impact of cost-reduction strategies on the organizational performance of the hotels. This study adopted a mixed method research design, where both quantitative and qualitative data were collected and analyzed to understand the cost reduction strategies and how such strategies affects the organizational performance of the selected hotels. A sample size of 265 respondents was calculated using Slovin’s 1960 formula. The findings show a positive and significant correlation cost reduction strategies and organizational performance in the three selected hotels (R=.853, P<0.05). The results indicate that cost reduction strategies, resource management strategies and process improvement strategies improve organizational performance. The study concludes that cost-reduction strategies have a significant and multifaceted impact on the organizational performance of the selected Kampala hotels. The study recommends that to ensure cost-reduction strategies are both effective and sustainable, they must be implemented with improvements that balance financial savings with quality service delivery.
Mary et al. (Sun,) studied this question.