|The main purpose of this study was to investigate the moderating effect of star rating on the relationship
between service tipping and the performance of hotels in Kenya based on a Balanced Score Card Perspective.
The study was based on the following theories; Resource-Based Theory and Balanced Scorecard Framework.
First, the study adopted a descriptive quantitative survey design. The study, therefore, targeted the 183 starrated
hotels in the four circuits. Second, the study's unit of analysis included the hotel managers (general
managers, supervisors and head of departments) and service staff. Third, the researcher adopted Yamane
(1967) formula that can be used to calculate a suitable sample size of 117 hotel managers of the Star Rated
Hotels operating in Kenya. Fourth, the study used a structured questionnaire to collect the required data from
the respondents. The study established that when star rating was introduced as a moderating variable, the
relationship between service tipping and hotels performance remained statistically significant, although the
value of the regression coefficient reduced slightly (r=1.089-1.088 = 0.001). This slight change in the coefficient is
the statistical proof that when star rating was introduced, it slightly reduced the regression coefficient,
although the relationship between service tipping and hotels performance remained statistically significant.
Finally, the study recommended that the Tourism Regulatory Authority, the policy body of Hotels in Kenya,
develop a Service Tipping Policy to guide service operations in the star-rated hotels in Kenya. It also
recommends that the department of Kenya Tourism regulatory (TRA) should promote service tipping among
the star-rated hotels in Kenya.