Disruptive Innovation in Hospitality Industry Report

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Introduction

Disruptive Innovation influences significant changes and alters the economies of hospitality. The COVID-19 pandemic has caused challenges in the hospitality industry, and disruptive automation has been developed to combat health risks. Mobile self-service to create a user interface that allows the clients to manage most services such as check-in, ordering, and room keys. Advanced computerized mechanization has developed robotics and self-service models to enhance customer satisfaction and overcome the issues provoked by COVID-19. The disruptive technologies offer hygienic alternatives that focus on consumer safety and will extend to the post-pandemic world. The health risks of contracting COVID-19 influenced disruptive innovations in hospitality to facilitate contactless services in the hospitality industry, forcing organizations in the sector to respond to the innovations.

Discussion

Long queues when booking hotels pose the risk of COVID-19 infection and have become intolerable to consumers. Front desk lineup and friction are tiresome and unpleasant to the consumer (Joshi, 2018). Using the latest registration software and mobile devices, guests can complete the enrolment process away from the hotel. The technology eliminates the operational cost of many workers employed for front-desk services. Digital booking services are faster and encompass more guest-oriented aspects such as room preference than unresponsive slow room service, which leads to negative customer reviews. After signing in, guests can use the mobile room key to access their rooms. Clients will have a high preference for organizations utilizing digital technology over conservative businesses.

Guest’s ability to use mobile devices to control and monitor the services they receive in hospitality improves experience and satisfaction. Consumers can seek room service at their convenience using mobile self-service. According to Joshi (2018), consumers can demand the goods they need at any time without the intrusion of privacy by hotel workers. Additionally, robotic mechanics reduces costs by offering most of the services offered by employees, such as delivery. Lowering costs improve profitability and grants organizations a competitive edge by allowing for competitive prices (Josh, 2018). Mobile self-services coordinate the different features in hospitality, such as service provision, mobile payment, and mobile ID authentication (Adeyinka-Ojo & Abdullah, 2019). Digital alternatives such as check-in via smartphone or check-in terminal improve the hospitality industry’s hygiene, speed, economics, and accuracy of services.

The automation of services does not only benefit guests but also organizations in hospitality. Mobile check-in, order services, room keys, and robotics streamline the operation and management of hotels with a large number of customers (Akbar & Ozuem, 2019). Providing superior service differentiates the brand, improving brand awareness, and loyalty, and reducing price sensitivity. The mobile services cannot be compromised, thus guaranteeing high customer satisfaction and positive feedback. Disruptive innovation benefits consumers as well as organizations in the hotel industry significantly.

Hotels can implement the mobile interface to be used by their customers to cultivate their relationships and display all amenities and services offered to improve consumer loyalty. Digital applications act as a medium of constant interaction with consumers to increase engagement. Therefore, they personalize marketing channels with customized interfaces that drive better engagements. The improved check-in model can identify missing and expired payments. Moreover, modern innovation grants hotel guests information before their arrival hence efficient time for package preparation. Akbar and Ozuem (2019) imply that hotels that have applied disruptive innovation have competitive advantages. Organizations that have not tapped into the heightened opportunities created by disruptive innovations face high competition challenges.

However, although disruptive innovations have some benefits, they often have challenges for organizations. Implementation of digital solutions in the hotel industry is costly, and faults can lead to exorbitant losses. Apart from implementation, the software used in the hotel customer interface requires constant support and service. According to Chan et al. (2019), contactless technology significantly reduces the personal interaction between guests and hoteliers necessary for hotel intelligence. Disruptive innovation is not welcome by all age profiles since it is hard for people without the technical knowledge of using technology.

Digital innovation is an emerging threat to organizations in the hospitality industry. Bearing the benefits of improvements in hospitality, organizations should adopt disruptive innovations. Embracing technology in hospitality will align products and services with consumer preferences, and improve operational efficiency, stability, competitive advantage, and market share (Chan et al., 2019). Digitization allows corporates to adopt a technological culture and gain the first benefits of disruptive innovation. Organizations in the hospitality industry should monitor consumer behavior to check the impacts of disruptive behavior. Organizations with no capacity to apply digital transformation can create an innovative business environment to incubate cheaper service delivery methods that equal disruptive innovation. Moreover, businesses can invest in disruptive startups or set up technology intelligence and road mapping practices and avoid later challenges.

Conclusion

Disruptive innovations change the dynamics of an industry and appeal to companies to reanalyze their products and services. Consumers enjoy a better experience and often prefer businesses utilizing disruptive innovation. Although costly, mobile service in hospitality improves organizations’ market share, competitiveness, and profitability. Hotels operating in the hospitality industry risk losing business and market share. These businesses can either utilize digital transformation and/or an innovative environment to face the challenges of disruptive innovations.

References

Adeyinka-Ojo, S., & Abdullah, S. K. (2019). In IOP Conference Series: Materials Science and Engineering (Vol. 495, No. 1, p. 012006). IOP Publishing.

Akbar, M. F., & Ozuem, W. (2019). .

Chan, C. M., Teoh, S. Y., Yeow, A., & Pan, G. (2019).. Information Systems Journal, 29(2), 436-455.

Joshi, B. P. (2018). . Journal of Tourism and Hospitality Education, 8, 48–61.

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