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Tourism Management: Santiago Meli An-Gonzalez, Jacques Bulchand-Gidumal
Tourism Management: Santiago Meli An-Gonzalez, Jacques Bulchand-Gidumal
Tourism Management
journal homepage: www.elsevier.com/locate/tourman
Research note
h i g h l i g h t s
a r t i c l e i n f o a b s t r a c t
Article history: Despite vast investments in IT, there is scant research and empirical data that connects, in depth, IT with
Received 23 February 2015 firm performance in the hospitality industry. However, the literature does show partial evidence and
Received in revised form examples of particular technologies. After an extensive literature review, we posit four global paths
9 September 2015
through which IT can impact hotel performance and, for each one, the precise mechanisms that cause
Accepted 11 September 2015
Available online xxx
these influences. These four proposals are further developed and refined using in-depth interviews with
a group of 30 managers of different areas from several hotels. A final comprehensive model that shows
the specific routes that IT can follow in order to improve hotel organizational performance is presented.
Keywords:
Information technology
This model can be taken as a frame of reference by academics and can also be used by both practitioners
Hotels and IT producers to assess particular IT options.
Organizational performance © 2015 Elsevier Ltd. All rights reserved.
Productivity
Customer service
Commercialization
http://dx.doi.org/10.1016/j.tourman.2015.09.005
0261-5177/© 2015 Elsevier Ltd. All rights reserved.
n-Gonza
S. Melia lez, J. Bulchand-Gidumal / Tourism Management 53 (2016) 30e37 31
However, the literature provides both theoretical arguments how IT can be used in each of these global options.
and empirical evidence in order to propose a model that describes
IT influence on hotel performance. We will describe the more
global and comprehensive approaches to the issue, and we will 2.3. Operational productivity
examine in detail each of the options presented in these general
views about the influence of IT. Nevertheless, we are attempting to Productivity can be defined as the relationship of output to input
describe how IT can impact hotels' organizational performance; (Tangen, 2005). In hotels, there are both relevant outputs (such as
therefore, this last construct must be explained first. the number of clients and revenue), and relevant inputs (such as
employees, raw materials, and energy). We will consider employee
2.1. Organizational performance in hotels productivity separately because employees are a very important
resource for hotels. Among the other resources that are relevant in
Organizational performance is a complex and multidimensional terms of costs, energy and food stand out (Pavlatos & Paggios, 2007;
construct (Avci, Madanoglu, & Okumus, 2011). Economic results rez-Lombard, Ortiz, & Pout, 2008). Furthermore, apart from the
Pe
represent the final objective of most companies (Chandler, cost interest, the environmental impact and energy consumption
DeTienne, McKelvie, & Mumford, 2011), and so the economic also contribute to hotel social responsibility (Holcomb, Upchurch, &
dimension stands out. In hospitality, Cohen and Olsen (2013) used Okumus, 2007), and they involve international recognition (e.g.,
profitability, sales growth, and revenue per available room. On the EMAS awards). Therefore, both types of non-personnel activities
other hand, the non-financial performance facet focuses on a firm's should be optimized through IT in order to, on the one hand, reduce
long-term success, with measures such as customer satisfaction costs and, on the other hand, improve the hotel organizational
and productivity (Van Veen-Dirks & Wijn, 2002). The sequence image associated with hotel social responsibility: green image
from non-economic performance to economic performance is (Fig. 2). Examples of interesting IT options in relation to these aims
assumed by different authors. In particular, it has been considered are kitchen control systems and energy management systems,
that client-related performance and productivity lead to economic respectively (Doukas, Patlitzianas, Iatropoulos, & Psarras, 2007).
performance (Cohen & Olsen, 2013; Combs, Crook, & Shook, 2005;
Heskett & Schlesinger, 1994). Therefore, any attempt to describe
how IT can improve hotel performance should consider at least the 2.4. Employee productivity
client, productivity, and economic dimensions of organizational
performance. This is consistent with the more recent research Hotel firms are labor intensive and task-oriented in their service
about hotel performance measurement (Sainaghi, 2010). operation and delivery. Evidence suggests that hospitality firms can
succeed in using technological resources to improve staff produc-
2.2. Global proposals about IT impact on organizational tivity. One way of increasing personnel productivity involves
performance reducing staff costs without affecting performance outputs. In this
sense, staff productivity consequences are the same as those of
Bannister and Remenyi (2000) state that the process through operational productivity: higher profitability. Thus, guest registra-
which IT improves firm results is more sophisticated than deliv- tion IT options like kiosks and online check-in allow firms to check
ering services at lower costs. IT should be connected with other in guests faster with fewer staff (Kim, Kim, Park, Lee, & Jee, 2012).
non-IT company factors like strategy, clients, and services. Based on Besides reducing staff costs, employee productivity can be
the analysis of different global proposals about how IT can improve achieved through higher output while containing personnel costs.
hotel organizational performance (Chathoth, 2007; Law & In this sense, since IT releases employees from manual labor, they
Jogaratnam, 2005; Law et al., 2013; Leung & Law, 2005; Piccoli, have the opportunity to focus on service and meeting clients'
2008; Siguaw, Enz, & Namasivayam, 2000; Tavitiyaman, Qiu particular needs and wants (Chathoth, 2007). This staff productivity
Zhang, & Qu, 2012), we posit that the general process involves facet can influence client satisfaction through better customer
acting upon the following organizational performance drivers: service which, as has been explained, is considered as an ante-
operational productivity, employee productivity, customer service, cedent of firm incomes. Fig. 3 illustrates employee productivity and
and commercialization (Fig. 1). In the next sections, we describe IT possibilities.
To understand the model, the connections among the different them additional services. Nevertheless, another hotel's CRM por-
global paths must be explained. For example, SSTs, like other IT trayed client consumption data in such a way that employees
options, can release employees from operative tasks, thus knew easily what clients specifically demanded from the hotel.
increasing the opportunities for client interaction. SSTs may also These employees were able to particularize their client in-
contribute to increasing employee productivity, through worker teractions and to generate cross-selling opportunities. Further, in
displacement. These influences are represented in Fig. 6 with an many cases, IT contribution depends upon employee behavior,
asterisk. The client satisfaction measure is useful for modifying which means that IT should not be analyzed in an isolated way.
customer service according to detected weaknesses, which is rep- Hospitality is a people-oriented business, and forgetting this can
resented with two asterisks. This same box also shows how be a great mistake (Ryan, 2015).
knowledge of client behavior can be used to get service quality Practitioners can use the model to assess how a specific IT
through improving client interactions. Last, a better image of the option may be used to improve hotel performance. It can also be
hotel as being environmentally friendly can be used as a commer- used by IT producers and entrepreneurs to design and evaluate
cialization argument. This is represented in our model with three their products, as the variables included are those that drive hotel
asterisks. performance.
Hotel managers should not directly rely upon the type of IT (e.g.,
6. Conclusions online check-in, smart TV, presence sensors); instead, they should
analyze the extent to which a specific IT product or service (with all
In this article, we propose and analyze with a qualitative its configurations, and possibilities) is capable of improving the
method a model that relates IT to the performance of hotels. Ev- operational productivity, personnel productivity, customer service,
idence supporting each of the paths' specific content was found. and income generation paths. According to the proposed model, if
Academics can use this model to understand in a comprehensive an IT product or service does not influence any of the factors por-
way the role of IT in the hospitality business. Additionally, it trayed in Fig. 6, organizational performance will not be enhanced.
should be considered that IT attributes matter, as not all of the Furthermore, sales pitches like “This product will increase
technologies associated with the prescribed processes exhibited personnel productivity” should not be accepted. Instead, more
the same potential to increase organizational performance. For precise information should be requested; for example, a measure-
example, although one of the hotels had a CRM, it was not sys- ment of how much more availability for service interaction an
tematically used by its employees to surprise clients or to offer employee or group of employees will have. Additionally, hoteliers
36 n-Gonza
S. Melia lez, J. Bulchand-Gidumal / Tourism Management 53 (2016) 30e37
should try to imagine the future with the technology and clearly Giebelhausen, M., Robinson, S. G., Sirianni, N. J., & Brady, M. K. (2014). Touch versus
tech: when technology functions as a barrier or a benefit to service encounters.
define how this spare time will to be used (e.g., upselling, cross
Journal of Marketing, 78(4), 113e124.
selling, and/or improving guest interactions). If there is no clear Gupta, S., McLaughlin, E., & Gomez, M. (2007). Guest satisfaction and restaurant
relation to the content of this path or to none of the others collected performance. Cornell Hotel and Restaurant Administration Quarterly, 48(3),
in the model, the product under consideration will most probably 284e298.
Heskett, J. L., & Schlesinger, L. A. (1994). Putting the service-profit chain to work.
produce little or no outcome. Harvard Business Review, 72(2), 164e174.
Last, the importance of the four routes towards hotel perfor- Holcomb, J. L., Upchurch, R. S., & Okumus, F. (2007). Corporate social responsibility:
mance will depend upon the hotel's strategy. If a hotel competes what are top hotel companies reporting? International Journal of Contemporary
Hospitality Management, 19(6), 461e475.
on price or emphasizes a cost control approach, the operational Hosteltur. (2014). El NH Eurobuilding se convierte en el hotel del futuro. Available at:
and employee productivity paths will be more important than http://www.hosteltur.com/177400_nh-eurobuilding-se-convierte-hotel-futuro.
customer service. Alternatively, hotels that try to stand out in html Accessed 14.10.14.
Ip, C., Leung, R., & Law, R. (2011). Progress and development of information and
terms of service quality will assign more importance to the communication technologies in hospitality. International Journal of Contempo-
customer service route and to some of the factors of the rary Hospitality Management, 23(4), 533e551.
commercialization path (e.g., client satisfaction measures and Jennings, D. F., Rajaratnam, D., & Lawrence, F. B. (2003). Strategy-performance re-
lationships in service firms: a test for equifinality. Journal of Managerial Issues,
client behavior knowledge). When considering which IT applica- 15(2), 208e220.
tions to implement, prioritization should be given to those that Kim, T. T., Kim, W. G., Park, S. S. S., Lee, G., & Jee, B. (2012). Intellectual capital and
best contribute to the hotel's strategy. However, hoteliers should business performance: what structural relationships do they have in upper-
upscale hotels? International Journal of Tourism Research, 14(4), 391e408.
take into account that previous research has found a stronger
Kokkinou, A., & Cranage, D. A. (2013). Using self-service technology to reduce
connection between IT and firm performance through paths customer waiting times. International Journal of Hospitality Management, 33,
related to increasing revenue than through paths related to 435e445.
reducing costs (Mithas, Tafti, Bardhan, & Goh, 2012). Law, R., & Jogaratnam, G. (2005). A study of hotel information technology appli-
cations. International Journal of Contemporary Hospitality Management, 17(2),
170e180.
7. Limitations and future research directions Law, R., Leung, D., Au, N., & Lee, A. (2013). Progress and development of information
technology in the hospitality industry evidence from Cornell hospitality quar-
terly. Cornell Hospitality Quarterly, 54(1), 10e24.
This research presents some limitations. The sample may be Lee, S. C., Barker, S., & Kandampully, J. (2003). Technology, service quality, and
suitable for a first qualitative approach to the phenomena, but it is customer loyalty in hotels: Australian managerial perspectives. Managing Ser-
vice Quality, 13(5), 423e432.
limited. Furthermore, it contains similar hotels (four-star hotels) Leung, R., & Law, R. (2005). An analysis of information technology publications in
located in the same destination and is restricted to two types of leading hospitality journals. Hospitality and Tourism Review, 23(1), 55e65.
hotels: sun and beach, and urban. Thus, and in order to progress in Martinez Garcia, J. A., & Martinez Caro, L. (2010). Rethinking perceived service
quality: an alternative to hierarchical and multidimensional models. Total
hospitality research, a subsequent extensive quantitative research Quality Management, 21(1), 93e118.
would be required (Rivera & Pizam, 2015). Mithas, S., Tafti, A. R., Bardhan, I., & Goh, J. M. (2012). Information technology and
firm profitability: mechanisms and empirical evidence. MIS Quarterly, 36(1),
205e224.
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Santiago Melia n-Gonza lez is an associate professor at the Jacques Bulchand-Gidumal is an associate professor at
University of Las Palmas de Gran Canaria, in the Canary the University of Las Palmas de Gran Canaria, in the Canary
Islands, in Spain. His research interest include human re- Islands, in Spain. His research interests include informa-
sources, information technology and their interaction in tion technologies, social media, innovation and entrepre-
order to improve organizational performance. He is neurship. He is focused in the tourism sector.
focused in the tourism sector.