Technology Integration in the Hotel Sector Report

Overview of the Current Themes

Across the globe, an effective hotel must balance the elements of innovation and development, technology, and sustainability to remain competitive in the short and long-term. The aspect of development involves strategies for growth and expansion within the matrices of labour, management, and general logistics. This means that any development initiative should be proactive and holistic for positive results (Monks & Minow 2014). On the other hand, the element of technology involves initiatives or activities aimed at making the hotel services and operational endeavours efficient. Through technology, the aspect of redundancy could be minimised, depending on its application (Hahn & Kühnen 2013). Lastly, the aspect of sustainability involves the healthy business practices that are aimed at ensuring short and long-term survival. In relation to the hotel sector, sustainability strategies integrate financial, environmental, managerial, logistics, and labour mixes in the balancing of a bundle of inputs for expected outputs (Gordon 2013). This paper explores the element of technology and its significance in the hotel sector. The rationale for selecting the theme of technology was informed by its applicability and dominance in the current hotel sector.

Significance of Technology in the Hotel Sector

The hotel sector functions within a dynamic business environment that experiences constant evolution and horizontal movements. Through the integration of technology, the hotel sector has experienced a paradigm shift of an unprecedented form and pace. This means that any successful business in the hotel sector must embrace and integrate different technological applications and tools to guarantee efficiency in business operations and customer service. This research paper explores the significance of technology in improving customer service within the hotel sector. The paper concentrates on the end user perspective, that is, customers’ experience and satisfaction level.

Theoretical and Empirical Perspectives on Technology in Hotel Sector

A lot of research has been done to establish the impact of technology in the matrix of customer satisfaction within the hotel sector. Firoiu and Croitoru (2015) carried out a research on the impact of technology on the Romania hotel sector and findings indicated that it encourages proactive socio-economic development at the hotel and service levels to create a balance for achieving high performance. The authors concluded that technology creates sustainable interconnections that are explicit and accompanied by value addition in the customer experience (Firoiu & Croitoru 2015). Ivanovic, Perman, and Grlj (2015) carried research on the impact of technology within the food service department. The findings suggested that technology promoted innovation, improved efficiency in service delivery, and expanded brand standardisation. The authors concluded that technology integration has the potential of creating a smooth workflow, thus advanced service experience. Moreover, technology improves the operations management capacity in an organisation since it promotes efficiency and a holistic attitude towards executing duties (Ivanovic, Perman & Grlj 2015).

In a study by Paco and Perez (2015) on the impact of technology on the Portuguese hotel sector, the findings indicated that it encourages innovation, thus, making hotels more comfortable, attractive, and functional. The authors concluded that proactive integration of ICT in the hotel sector leads to better performance in service delivery and customer experience. Nunes and Machado (2014) also established that technology is an effective tool for hotel performance evaluation since it promotes efficiency and balances the customer satisfaction dynamics. Rosario, Gálvez, and Pérez (2013) established that social media as a technological application is effective in tracking and promoting positive customer feedback in the hotel sector. Rebelo, Matias, and Carrasco (2013) found out that technological applications within the Portuguese hotel sector were responsible for the accelerated growth in the service matrix as the hotels embraced them to improve on the service charter. This means that an effective approach in the integration of technology has a multiplier effect in the general operational and service delivery equations (Stubbs, Higgins & Milne 2013).

Several theories have been put forward to relate technological application to efficiency in the hotel sector. The notable theoretical perspectives are Theory X and Theory Y, Involvement Theory, and Consistency Theory. The Involvement theory is founded on the notion that proactive integration of technology improves the general involvement on the customer service delivery matrix and operational management within the hotel sector (Harrison & Wicks 2013). According to Strom, Sears, and Kelly (2013), technological institutionalisation boosts performance and accuracy to build sustainable business capacity to guarantee flawless operations.

On the other hand, Consistency Theory indicates that organisational effectiveness is determined by the ability to create a perfect mix of the factors of production. In the 21^st century, technology has become an investable factor of production since it promotes consistency and reliability through an ingrained value foundation. According to Ruiz-Palomino, Martinez-Canas, and Fontrodona (2013), consistency in technological application would result in high level conformity and stability in the service delivery. Lastly, Theory X and Theory Y suggest that improved employee performance is influenced by the level of motivation and friendliness of the work environment (Arslan & Staub 2013). In relation to the hotel sector, technological application simplifies the duties through improved accuracy. As a result, employees are motivated to engage intellectual creativity that promotes positive performance (Searcy & Buslovich 2014). Therefore, technology has the potential of creating a holistic and simplified work environment for effective performance.

Research Gap and Rationale for the Proposed Study

The literature review has captured empirical and theoretical researches on the impact of technology on the hotel sector from a general perspective. Therefore, there is a need to concentrate on the customer satisfaction perspective. This research will attempt to fill this literature gap.

Research Approach

The research was carried through primary online questionnaire targeting 10 respondents, who are managers of three four star hotels randomly selected within the local region. The questions were framed to establish the respondent’s views on the technological applications in place in their hotels and how they have affected customer service matrix (Kothari 2013). The researcher opted for qualitative research to give the respondents an opportunity to provide personal insight on the research problem (Mason 2017). The questionnaire is summarised below.

1. What technological applications have you put in place to make customer service experience positive?
2. Are the customers aware of these applications and what is their rate of usage in accessing services at your hotel?
3. Do you think these applications have improved the performance of the customer service charter? And if yes, how?

Findings and Analysis

The notable technological applications in place in the hotel sector include social media, online business platforms (website and email links). These applications have been integrated to make the customer experience lively. These applications have also integrated customer loyalty cards and discounts to directly benefit repeat customers. As a result, the respondents suggested that they have created a strong customer following through improved performance based on customer feedbacks. Apparently, the modern customers are aware of these applications and prefer their use due to discounts and accessibility from any place. The average usage of these applications is 60%. This means that hotels are moving from the traditional customer service charter to a modernised and technology-based module (Suma & Lesha 2013).

The technological applications have resulted in improved guest experience as check-ins and check-outs have been simplified to save customers time they previously spent on the waiting line. As a result, most hotels have made it a mandatory requirement to offer customers a pre-register opportunity before checking in. The improved speed in service delivery has improved the customer experience. Another notable impact of these applications is enhancing targeting since technology allows for impressive advances. For instance, through text messaging service, customers are updated on their bookings and changes in schedules, thus, improved experience. In addition, the hotel sector is empowered by these applications to target specific customers and maximise on the benefits of real-time opportunity to engage clients.

Recommendations and Conclusion

Through effective technology integration, the hotel sector is empowered to raise the service expectation level. Therefore, managers should internalise and institutionalise technology as tool for facilitating guest satisfaction (Obeidat, Masadeh & Abdallah 2014). The hotel sector could also tap the myriad opportunities of technological application such as efficiency and effectiveness to execute flawless service charter in relation to the consistency and involvement theories (Sostrin 2013). This will create an impressive long-term impression and help in creating a loyal customer base.

Reference List

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