With the increasing competition that businesses especially in tourism industry face today, in order to survive, firms have to adjust their approach to business and come up with response strategies for dealing with the highly competitive environment. Traditionally more focused on the physical product and services, tourism industry is waking up to consumers who demand consistent delivery of the brand promise, changing needs and sensitivity to socio-political both locally and globally. This study sought to establish the response strategies adopted by Heritage Hotels Limited to increased competition in the tourism industry in Kenya. The study was conducted through a case study research design. The study used interview guides as primary data collection instrument. The interview guide was administered through five employees of Heritage Hotels Limited: the managing director, 2 departmental heads and 2-unit managers. Data collected was qualitative; analysis was by content analysis and presented in prose. The study findings illustrate that Heritage Hotels Limited faces a lot of competition from both small and large firms of local or international ownership and operations; the hotel faces threat of new entry into the industry; threat of substitutes aggravated by changing technology, insecurity in the country and subsequent travel advisory and fluctuation in demand. The study concludes that the hotel has responded to these challenges through competitive pricing, aggressive marketing in trade fairs, online and print media; product and service innovation and differentiation; promotion through offers and discount on repeat purchases among others. The study recommended that the hotel should expand its operations to other regions, pursue new markets and target local tourists besides foreign customers.

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