Disruptive Innovation in Hospitality Industry Report

Exclusively available on Available only on IvyPanda® Made by Human No AI

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.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2023, July 18). Disruptive Innovation in Hospitality Industry. https://ivypanda.com/essays/disruptive-innovation-in-hospitality-industry/

Work Cited

"Disruptive Innovation in Hospitality Industry." IvyPanda, 18 July 2023, ivypanda.com/essays/disruptive-innovation-in-hospitality-industry/.

References

IvyPanda. (2023) 'Disruptive Innovation in Hospitality Industry'. 18 July.

References

IvyPanda. 2023. "Disruptive Innovation in Hospitality Industry." July 18, 2023. https://ivypanda.com/essays/disruptive-innovation-in-hospitality-industry/.

1. IvyPanda. "Disruptive Innovation in Hospitality Industry." July 18, 2023. https://ivypanda.com/essays/disruptive-innovation-in-hospitality-industry/.


Bibliography


IvyPanda. "Disruptive Innovation in Hospitality Industry." July 18, 2023. https://ivypanda.com/essays/disruptive-innovation-in-hospitality-industry/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1