The quality of services and service deliveries has always, to a high extend, been evaluated on basis of

the direct human interaction. But is this still valid? Or is technology now fundamentally changing the
way many services are designed and delivered?

Do you remember the times where credit cards only belonged to the few, the times where you needed
to face your bank teller before collecting your pay check or started your travel bookings by visiting the
traveling agency nearby?

Nowadays we see several trends in how service technology increasingly is influencing the ways
service providers interact with customers. We explore the top trends below.

The move from personal service to automation and self service

Previously, when facing a service delivery, you were met with service personnel ready to support you all
the way through your customer journey. Today, and due to the emerging impact of technology, we see
more and more examples of self service and automated service solutions. These include online airline
check-in, self-service checkout lanes in retail stores, gas pumps and supermarkets.

When calling up customer service, you are more likely to be met with an automated operator rather
than a human one, just like clever language software programs are likely to be the ones responding to
you when reaching out via email.

In many instances, self-service technologies and automated back-office services can directly
be considered as a huge win for us as consumers. Now consumers can receive service on their premises,
avoiding wasting time in long queues and get our inquiries processed faster than ever. And as the
operational costs of companies‟ decrease, services can also be delivered at a much lower cost.

Companies, however, must be aware not to alienate customer segments not comfortable using self-
service and automated technologies as well as balance the danger of losing the human touch as part of
the process.

The portfolio of accessible services is increasing

With the world wide web also came a world without boundaries. Or in other words, technology has now
expanded our potential to reach out to customers around the globe in ways that were not to be
dreamed off in the not so distant past.

While we previously commonly serviced consumers locally, with one click, service and transactions
today can move across continents and countries reaching anyone possible with access to the world
wide web.

Recognizing that these global service deliveries primarily account for digital services also means that
companies free up space that before was locked to costly physical inventories.
Consider service giants such as Amazon and Netflix.

Due to technology advancements they can now offer a great portfolio of services at the lowest
cost possible, while reaching all web connected customers around the world.

The rise in consumer data

When talking about self-service delivery, automation and an increase in online services, some critics
point to the idea that service deliveries increasingly will become less and less personal. But does
this mean that we sooner or later will lose the human touch? Not necessarily. It depends on how good
we are at balancing the great things technology can provide us with as well as our sense of what defines
quality service.

The thing is that technology gives us more than automation and the ability of providing service at
a lower cost. It also gives us the opportunity to gather customer data, analyze customer data and use
the data analyzed to better meet customers‟ needs. As companies we can then use these findings and
insights to adjust and personalize our service offerings and deliveries to better increase customer
satisfaction and service experience. As we‟ve seen in other industries, Netflix analyses user behavior
data to be able to offer suggestions for new movies to watch, while online booking services such as
Hotels.com analyze user behavior data to be able to recommend the best hotels to its users based on
previous search and behavioral patterns.

Through our partnership with IBM Watson and by using sensor technologies, we at ISS use these data
and insights to create more personalized service experiences that cater to the needs and well-being of
the individual people occupying a building. We now can understand how people move around an office
space, which services they prefer at which times, where the service creates the most value and the
reverse. There is no doubt that using these data, and having the ability to act on them wisely, will be one
of the key sources of competitive advantage for companies in the future.

Can Technology Improve Guest Service Quality in Hospitality and Tourism?

Technology has arguably been one of the main driving forces in the growth of many economies
and organizations around the world. The tourism industry, and hotels in particular, have seen an
abundance of benefits which technology can bring to internal operations and guest service quality. In
the hotel industry, guest service quality often involves exceeding expectations in an attempt to increase
guest satisfaction and ultimately build loyalty. Increasingly, technology is playing a role in  guest 
experiences  and overall satisfaction.

Technology can often be difficult to define due to its vast nature, however, for the purpose of this lesson
it will be considered as any activity which involves the use of electronic equipment which adds value to
guest service quality. Examples of how technology can be implemented in hotels include; integrated
hotel property management systems, guest data management, internal communications, inventory
management, hotel design and amenities. Many new forms of technology such as Springer Miller
Systems (SMS), Micros- Fidelio and Opera provide opportunities to manage all of these areas from a
single program or system. This ultimately provides opportunities for hotels to lower costs, increase
revenues, improve communications and create business opportunities.

Although technology provides many opportunities for hotels, many authors focus on the full service (4-
5 star, large hotels) sector of the industry. This sector of the industry only accounts for up to 30%,
the remaining 70% are considered small to medium hotels which are usually owner operated. Therefore,
it is

important to consider how effective technology is at different levels of the hotel industry and thus if it
can improve service quality in general.

A recent report from TRI Hospitality Consulting found that hotel revenue for large chain hotels was
down by 17%. This would suggest that the hotel industry is feeling the effects of the economic
depression and will continually need to find sources of competitive advantage. It is well documented
that the hotel industry has tended to fall behind in technological advances, opting more for labor
intensive operations and service delivery. Therefore, it is perhaps now more important than ever for
hotels to make use of technology as a means to provide better guest service quality and increased
satisfaction. This may provide loyalty and repeat business which will be increasing important to hotels in
these troubling times.

This lesson will critically evaluate to what extent technology can improve guest service quality in the
future and whether this is effective at all levels of the industry. The module will not discuss in great
detail the different forms of technology as it is intended to highlight the main implications to guest
service quality. Firstly, the advantages of technology will be discussed in relation to the benefits which
they provide to service quality. Secondly, the disadvantages which technology may cause will be
introduced. Thirdly, the success of technology in small hotels will be considered. Finally, a number of
conclusions and recommendations will be given as to whether technology can provide benefits to the
hotel industry as a whole and how this may change in the future.

The Role of Technology in Improving Guest Service Quality

The traditional approach to building guest satisfaction tends to be through the use of physical labor and
to some extent this is still the case. However, technology has provided hotels with many opportunities
to improve the level of service throughout the guest journey (stay at the hotel). It is important to
consider a number of recent technological advances and the benefits this provides to hotels and guest
service quality.
 

Although technology is used in hotel rooms and through the hotel and its amenities, it perhaps plays a
far more important role in gathering guest information to increase guest satisfaction. This is particularly
the case for large full service hotels which require guest information in order to exceed expectations and
build loyalty.

Technology which is at the forefront of the hotel industry includes the use of finger print technology and
Closed-circuit television (CCTV). The use of fingers prints, which are linked to property management
systems can provide many benefits for both the hotel and the guest. The guest will be able to use a
finger to check-in, enter their room, pay for items in multiple outlets and check out. This will allow the
guest to be free of carrying room keys, forms of payment and identification details whilst staying at the
hotel. The hotel will also see many benefits from this. Firstly, room keys or key cards will not need to be
purchased, which often are expensive to purchase). Hotels will also be able to gather forms of guest
intelligence on elements such as food and beverage preferences, retails purchases, time spent in room
and in hotel facilities. This provides opportunities to analyze guest preferences and ultimately exceed
guest expectations.

CCTV works very much in the same way; however, it adds a number of benefits as guests‟ activities in
the hotel can be turned into data and statistics. Crowne Plaza at Dulles Airport has tested the use of
CCTV to add signage to the hotel to avoid guest frustration. This would also allow hotel managers to
review facilities and evaluate how effective they are, when peak periods are and how guests experience
the hotel.

Other forms of technology include self-service check-in facilities, which can reduce check-in time
from approximately 10 minutes to 60 seconds. In some cases, a guest can check-in using wireless
devices once arriving at the hotel. This may even be made easier for guests in the future who could
check-in from home, working on a similar system as airline companies. If this works in tangent with
finger print technology, then it is likely that a guest will be given a time for when the room will be ready
and the guest will be able to by- pass any form of check-in procedure once arriving at the hotel. This
would work particularly well in business where guests can often arrive very late in the evening.

These forms of technology benefit the operations of the hotel. Mintzberg promotes these forms
of technology as standardization of work. This also involves elements of deskilling which require less
technical input from physical labor. A well-known example of deskilling is McDonalds who attempt to
deskill every level of its operations to promote efficiency. This provides a number of benefits for hotels
including reduced labor costs, reduce dependence for skilled labor and increased efficiency. However, in
some cases this may not have any substantial impact on guest satisfaction as it can be argued that it is
very much dependent on the type of hotel and the guests which it attracts.
 

Implications of Technology Implementation

Although technology provides a number of benefits and hotels and their ability to improve guest quality,
there are also a number of implications which can be considered. Perhaps the most important point to
consider is the fact that technology is continually changing. This provides great challenges for hotels in
providing quality guest service. Munyan states that „the “next-generation” reality demands continual
technology upgrades for every business and personal user, and hotels often cannot afford to be that
nimble‟.

Technology upgrades for hotels often include high investment and continual changes mean that hotels
are often unable to maintain the latest levels of technology both for guest use and for operational use.
This creates a problem with guest satisfaction as guests often expect the same technology (or better)
which they have at home, particularly in the hotel room. Many hotels also tend to be older buildings
which provide limitations to infrastructure changes. New build hotels are able to introduce high levels of
technology as this can be planned into the design and layout of the hotel. However, older hotels often
hold limitations in the amount of changes that can be made. Some hotels would even struggle to
introduce an air conditioning unit into some bedrooms due to the design and layout of the hotel.

In terms of economic and social issue, technology can be seen as a disadvantage because it often
reduces the levels of labor which are needed. For example, the self check-in services which are
appearing in a

number of hotels in the UK reduce the need for labor on reception. Although some levels of staff may be
maintained for control and maintenance, it is likely that the same levels of staff will not be needed. This
is may to become more prominent as labor costs rise in the UK and hotel organizations seek methods
to reduce the level of employment needed to run the hotel operations. However, when considering
„guest service quality‟, it can be argued that self check-in can reduce the level of quality offered. This
will often be dependent on the type of hotel which it is implemented; for example, it would seem to be
a good idea for business hotel but when considering a full service 5 star hotel it would perhaps reduce
the level of personal service and guest satisfaction. Although, overall it is likely that full service hotels
will be able to reduce levels of staff in other areas where machines and computers will replace the work
of humans.

Technology Strategies for Small Hotels

This topic focuses on the larger (full service) aspect of the industry where technology plays an
important role and will continue to do so into the future. However, as mentioned earlier the majority of
hotels tend to be small to medium enterprises. In a recent survey of technology implementation, it was
concluded that luxury full service hotels tend to adopt technology more than small to medium hotels. If
this is the case it is perhaps important to consider whether small to medium hotels will be able to
compete with larger hotels in the future and if guest service quality will be affected in any way.

An important factor to consider is the level of investment which technology requires both in installing
and maintaining. It is likely that the majority of small to medium hotels have neither the capital
requirements nor technical knowledge to maintain such high levels of technology. Also many small
hotels are old buildings which perhaps do not prove practical in hosting high levels of technology.

Research by Buick found that owners of small hotels in Scotland were reluctant to purchase a system
which would help to run their business and in fact over 40% claimed not to use a computer to run
the business. However, many of the hotel owners where very successful and had high levels of turnover.
This would suggest that technology may not always be required to provide successful guest service
quality. It is important to understand the type of guests which occupy small hotels. On the whole it is
likely that families and couples would visit small hotels in Scotland and therefore would not necessarily
be seeking high levels of technology. However, many large chain hotels attract contemporary business
and leisure travelers who expect higher levels of technology, similar to that of the home. Research
which has been carried out suggest that small hotels need to invest time into web design in order to
attract guests.

 
INFORMATION TECHNOLOGY APPLICATIONS IN HOSPITALITY AND TOURISM

The intense competition in today's business environment means that tourism and hospitality
businesses have to work hard to maintain and develop their competitiveness. The success of a business,
to certain extent, depends on its ability to acquire and utilize updated information to assist its
management and marketing processes. Hence, Information Technology (IT) assists organization to
manage information dynamically and influences business competitiveness through assisting decision
makers to make appropriate investments and decisions. IT helps to meet the demands for timely and
accurate information

by customers and the IT diffusion in the tourism and hospitality industries has recently increased at
an unprecedented rate. This is evident by the ubiquitous presence of IT systems that work cooperatively
to assist managers to deliver quality service to their customers and to enhance operational efficiency
and control costs. Researchers have stated that IT, by acting as a protector and enhancer, directly
influences the experiences and behavior of tourists.

 
More strategically, IT is gradually reshaping the fundamental structure of industry and society. IT can
generate the knowledge at the center of a business's competitiveness. Law and Jogaratnam
further suggested that IT can transform the nature of tourism and hospitality products, processes,
businesses, and competition, and that tourism and hospitality organizations that have failed to master
the right IT systems would find difficult to direct and manage their information‐intensive business
damaging their competitiveness.

Tourism and hospitality are social phenomena, and the industries associated with them are
largely application oriented. Researchers in this field have conducted, and will continue to conduct,
research that generates innovative knowledge that will benefit these industries and ultimately society.
As investment in and the adoption of IT are now indispensable components of the tourism and
hospitality business, IT serves as a tool for both enabling and inducing change. As such, IT has recently
drawn the attention of tourism and hospitality researchers worldwide, who have disseminated their
findings in research journals. Niininen, Buhalis, and March demonstrated that IT supports consumer
centricity, with consumers being able to use technology to select and customize their products as well as
to personalize their experience.

It is advantageous for tourism and hospitality managers in general and marketing managers in particular
to be aware of the recent changes in IT and their relationship with customer service. As IT
development becomes more sophisticated, industrial practitioners, educators, and policy makers may
find increasing difficulty in selecting, analyzing, implementing, and operating new IT systems. Research
journals, as a vigorous channel of knowledge dissemination, can offer peer‐reviewed and unbiased
information on IT analysis, evaluation, and industrial best practice. However, despite the enormous
amount of effort spent by tourism and hospitality researchers on investigating IT, there are only a few
reviews of the articles published on IT or the progress of IT in the tourism industry since its rapid growth
in the early 1980s. Moreover, the review articles that do exist are limited, either because they examine
only a few selected journals or because they cover work that is already somewhat outdated given the
fast changing nature of IT and tourism.

In view of the paramount importance of IT applications in the tourism and hospitality industries and the
absence of published articles that review the recent developments in this area, this article attempts to
analyze the content of IT articles published in the major tourism and hospitality research journals in the
period 2005 to 2007. This work will therefore be of use for readers in better understanding recent IT
applications in tourism and hospitality from different perspectives.

How Information Technology Has Affected the Tourism and Hospitality Industry

Information Technology has played an important role in the hospitality and tourism industry over the
last decade. Technology has helped reduce costs, enhance operational efficiency, and improve services
and customer experience. Both customers and businesses can benefit from improved communication,
reservations, and guest service systems.
Technology has helped tourism and hospitality industries replace expensive human labor with
technological labor. This helps reduce labor costs, but also helps avoid customer service issues.

Here are some examples of the ways that IT continues to improve the hospitality and tourism industry.

 
 Internet and Marketing

The internet has a powerful impact on hospitality and tourism. A customer‟s first experience with
your business is a visit to your website. This includes looking at pictures and reviews from past guests. It
is vital for a business to effectively utilize online advertising, social media, blogs, and online purchasing
to help convenience their customers, especially when your competitors are doing the same thing.

Computer Systems

Computer systems allow communication between larger hotel chains with multiple locations to connect
easier. They also help keep staff on the same page and make it easier to access information, making
your guests experience much better. Guest requests, housekeeping information, and reservations can all
be found on one system.

Mobile Communication

Mobile tablets and smartphones have replaced large desktop computers, making them virtually extinct.
This is helpful, because many travelers take some type of mobile device with them on a trip. This
helps hospitality businesses keep customers advised of changes and delays to their reservations, offer
deals, and advertise by using GPS tracking.