KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

COLLEGE OF HUMANITIES AND SOCIAL SCIENCES

KNUST SCHOOL OF BUSINESS

DEPARTMENT OF HUMAN RESOURCE AND ORGANISATIONAL DEVELOPMENT

FINAL PROJECT WORK

PROJECT TITLE: DIGITILIZATION IN THE HOSPITALITY AND TOURISM INDUSTRY:

EVALUATION/ASSESSMENT OF THE APPLICATION OF TECHNOLOGY ON

CUSTOMER EXPERIENCE.

BSc. Hospitality and tourism management year 4

Supervisor

Mrs. Vida Commey

A long essay submitted to the department of resource and organisational development in partial

fulfilment of the requirement for the bachelor of science in hospitality and tourism management.

AUGUST 2

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 Candidate’s declaration

The bachelors’ long essay was accomplished solely by myself under a keen supervision from Mrs.

Vida Commey at the Kwame Nkrumah University of Science and Technology. I proclaim that my

thesis was done based on the policies and formats of an excellent long essay and necessary

acknowledgement and citations as per our research were duly given.

AGYEKUM BEMAH MARGERET (1450117) …………… ..…………

Signature Date

Certified by

Mrs. Vida Commey …………... …………

(Supervisor) Signature Date

Certified by

Dr. Henry Kofi Mensah …………. …………..

(Head of Department) Signature Date

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 ACKNOWLEDGEMENT

I thank the gracious Lord for the strength and abundance of grace he shared upon me as a researcheR

from the beginning till the completion of our research.

I extend our profound gratitude to my supervisor who is in the person of Mrs. Vida Commey. She

has been of great support to me and I would like to thank her for her dedication and time devoted to

ensure this research was done successfully.

I am also grateful to friends, family members and colleagues who encouraged and supported me

during this course.

I thereby say a very big thank you and God richly bless each and every individual who helped

directly or indirectly during my course.

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 DEDICATION

My work is dedicated to my parents who ensured that I achieved excellent results in my education

by supporting me financially, emotionally, and psychologically during my stay in school.

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 ABSTRACT

The purpose of this work is to assess and evaluate the impact of digitalization on customer

experience in the hospitality and tourism industry. This study brings to light the impacts of

digitalization or digital advancement on customer experience in the hospitality and Tourism

industry. The study relied primarily on secondary data that was sourced from existing articles,

research works and thesis of other authors. A detailed literature review was conducted on key

concepts, relevant theories and present empirical findings on the topic.

From the researches that were derived from secondary data, authors shows that consumers are

actively using applications, while they are searching for new, more convenient, or profitable options,

based on the advice of the immediate environment and reviews on the Internet. Findings from other

secondary literature provided evidence that the top five most important technologies for guest are:

in-room wireless Internet, air conditioning, Wi-Fi access in public areas, cable/satellite channels and

LCD Television. Free in-room HSIA, free HSIA in public areas, in-room tablet or iPad, virtual

concierge and the application for check-in, choice in the exact room and check-out were perceived

by respondents as the most important technologies to enhance their experience

Keywords: Technology, online bookings, digitalization, kiosk, GET, hospitality, customer

experience, customer satisfaction.

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CONTENTS
Candidate’s declaration .........................................................................................................................ii

ACKNOWLEDGEMENT ................................................................................................................... iii

DEDICATION ..................................................................................................................................... iv

ABSTRACT .......................................................................................................................................... v

CHAPTER ONE ................................................................................................................................... 1

INTRODUCTION .................................................................................................................................1

1.1 Background of the Study .................................................................................................................1

1.2 Problem Statement .......................................................................................................................... 3

1.3 Main aim and objective ................................................................................................................... 4

1.4 General Objective of The Study ......................................................................................................4

1.5 Specific Objectives ..........................................................................................................................4

1.6 Research Questions ......................................................................................................................... 5

1.7 Significance of The Study ............................................................................................................... 5

1.8 Brief Methodology .......................................................................................................................... 6

1.9 Scope of The Study ......................................................................................................................... 6

CHAPTER TWO ...................................................................................................................................8

LITERATURE REVIEW ......................................................................................................................8

2.0 Introduction ..................................................................................................................................... 8

2.1 Conceptual Review ......................................................................................................................... 8

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2.1.1 Digitalization ................................................................................................................................9

2.1.2 Technology ...................................................................................................................................9

2.1.3 Hospitality .................................................................................................................................. 11

2.1.5 Customer experience .................................................................................................................. 13

2.1.2 The emergence of digitalization in the hospitality industry .......................................................14

2.2 Theoretical Review ....................................................................................................................... 20

2.2.1 Tourism, hospitality, and digital transformation ........................................................................20

2.2.2 Impact of guestroom technologies when a guest is choosing a hotel .........................................35

2.2.3 Digitalization in the hotel industry – challenges and outlook ....................................................41

2.2.3.3 Challenges in the course of Digitalization in tourism Industry in India ................................. 45

2.3 Empirical Review ..........................................................................................................................46

2.3.1 Introduction ................................................................................................................................ 47

2.3.2. Developing digital technology in the hospitality and Tourism industry. ..................................47

2.3.3. Transformation problems in the tourism industry in the digital economy ................................48

2.3.4. The impact of technological amenities on Customer experience in upscale hotels ................ 50

2.3.5. Digital Transformation in tourism sector .................................................................................. 51

2.4 Conceptual Framework of Digitalization In The Hospitality Industry ....................................... 56

2.4.1 Independent variable .................................................................................................................. 57

2.4.2 Dependent variable .....................................................................................................................57

CHAPTER THREE .............................................................................................................................58

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SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ............................... 58

3.0 Introduction ................................................................................................................................... 58

3.1 Summary of Findings .................................................................................................................... 58

3.2

Conclusion ……………………………………………………………………………………….58

REFERENCES ....................................................................................................................................62

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LIST OF FIGURES

Figure 1 ................................................................................................Error! Bookmark not defined.

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LIST OF TABLES

Table 1 Synthesis of technology trends and their features .............Error! Bookmark not defined.

Table 2 Emperical review table. ....................................................... Error! Bookmark not defined.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Tourism and technology have over the last few decades complimented each other in the delivery of service to people. In recent years,

the transformation of every sector within world economies by technology cannot be overstated, and the tourism industry is no

exception. This continuous dynamism has radically transformed the tourism industry, providing for its great prospects for

development. In particular, for the hospitality industry, the Internet makes a significant contribution to maximising the dissemination

of information about the products and services offered.

According to a Google report, in 2013, the Internet constituted the main source of information for tourists (around 80%) when

planning holidays, and online sources also represented the source in which they had the highest degree of confidence. This preference

is due to the fact that the Internet greatly facilitates the information process. Thus, when tourists turn to an online travel agency, 43%

of them already know exactly where they will travel and what services they will choose (Ziyad in et al., 2018).

Digitalization offers many new opportunities that can be exploited by providers in the tourism industry. At the same time, competition

is being intensified and companies have to keep pace with digitalization in order to remain on the same level. Without any question,

“digitalization can be viewed as the motor of transformation for the hospitality and tourism industry in the age of the internet economy.

In fact, more than 57% of all travel reservations each year are carried out with the internet and internet travel booking revenue has

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grown by more than 73% over the past 5 years, while 65% of tourist book hotels reservations for the same day are made on a mobile

device.

The term of digitalization is used in different interpretations: on one hand, digitalization is the “conversion of analog information in

any form to digital form with suitable electronic devices so that the information can be processed, stored, and transmitted through

digital circuits, equipment, and networks. On the other hand, digitalization is the process, which is caused by the adoption of digital

technologies and the application systems that build upon them.

A common interpretation of digitalization stands for intelligent business processes and the using of efficient and new technology

concepts, such as Big Data, Cloud and Mobile Computing, Internet of Things or Social Software. Most of the Hospitality sectors had

undergone dramatic changes in earlier times, which also led to profound social changes. In the first industrial revolution, human

labour power was replaced by water and later steam power.

ICT systems are being widely used in these two interrelated sectors-tourism and hospitality. Generally, it is used to optimize the

communication between travel service providers, travel agencies and travellers. So, it is being an obvious part of the tourism and

hospitality industry that is adopted in different touristic sites, hotels, transportation and also by other associated service providers.

Now the practice of e-tourism and digitalized tourism and hospitality activities is in the rise such as online reservation, flashpackers,

travel blogs, e-tour guides, online platforms for services and so on.

This presents an unarguable position that technology has impacted the tourism and hospitality industry. Its influence on the

development of the industry cannot be overlooked.

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1.2 Problem Statement

The tourism and hospitality industry has seen great development over the last decades. This spike in development can be attributed to

several factors including the adoption of new and best ways of doing things. The role of technology in this upsurge in the tourism and

hospitality industry is vital, and always remains at the fore of such a discussion.

The tourism and hospitality industry, especially the hotels, before a decade ago were only riding on customer experiences and other

forms of traditional adverts to draw new clients. However, with the intensification of the use of technology in the industry, these hotels

are able to catch the attention of clients who have not patronized their services before. Most of these hotels have websites that help

them to reach to a larger community and draw clients out of that.

The social media wave, has also come to help the industry, boosting the services they provide for their clients, and easily reaching out

to new ones. Not only has technology improved the reaching out to new clients in the tourism and hospitality industry, especially for

the hotels, but have also brought about proper systems in managing these facilities. Example, bookings can now be made online,

payments, enquiries and several others can now be made without coming into contact with the hotel staff, all with the help of

technological advancement.

Even though there is an existing technology in the hotel industry, there seems to be shortfalls in the restaurant, front office and room

service deliveries.

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At the restaurant, there has always been a face-to-face contact between a guest and the waiter/waitress which makes both the

waiter/waitress and guest more prone to disease especially in these Covid-19 times. Also, there has been the use of access control

cards to access rooms. The access card can sometimes get missing and that can make the guest vulnerable to theft. In addition, there

are delays when it comes to room service. This is due to the fact that the guest will have to place a call to the restaurant department to

place an order before they also call the kitchen and this can take a lot of time.

The coming to being of the current pandemic makes the use of technology in the industry inevitable. With all these mentioned, the

study seeks to assess the impact of the digitalization on the hospitality and tourism industry with special focus on hotels in Ghana.

This raises the question, what has been the impact of digitalization on their delivery of service?

1.3 Main aim and objective

To assess and evaluate the impact of digitalization on customer experience in the hospitality and tourism industry with special focus

on hotels.

1.4 General Objective of The Study

The main objective of the study is to investigate the impact of digitalization on customer experience in the hospitality industry.

1.5 Specific Objectives

• To analyze the state of digitalization in the hotel industry.

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 • To identify the impacts of digitalization on the hotel industry.

• To investigate the challenges of digitalization in the hotel industry.

1.6 Research Questions

• What is the state of digitalization in the hotel industry?

• What is the impact of digitalization on the hotel industry?

• What are the challenges to digitalization in the hotel industry?

1.7 Significance of The Study

This study is important since it aims to shed more light on the topic of digitization in the hotel and tourism business. This is especially

crucial in the hospitality industry, as client experience and uniqueness are closely linked to the organization's superior performance.

The impact of technology on customer experience will be examined in this study. This type of research will allow employers and

management in the hotel industry to rethink how employees should be handled in order to achieve organizational success.

Customers play a very key role in the success of every hotel and therefore understanding why and how they should be treated to

maximize organizational benefit is necessary. This research can also serve as a reference for research yet to be conducted by students

interested in a similar research topic as this or better still interested in this same topic.

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1.8 Brief Methodology

Secondary sources of data were used for this long essay in order to obtain the necessary information needed to accomplish this

research. This involved looking through existing literature from journals, periodicals, newspapers, scholarly publications, textbooks,

and even theses. The literature was mostly accessed via the internet. Google Scholar is the most commonly used search engine for

secondary data. The literature was searched for articles that were relevant to the study's topic. These studies provided the foundation

for the concepts, hypotheses, and empirical data given in this study. All secondary sources of data were appropriately cited and

referenced by the researchers.

1.9 Scope of The Study

The research focuses on the digitalisation in the hospitality and tourism industry, basically assessing the application of technology on

customer experience. The secondary source of data collection was employed by researchers in acquiring relevant information on the

technological impacts on the experience of customers in the hospitality industry.

1.10 Organization of The Study

Every study must have a proper and orderly organization. This current research has been composed by chapters and there are three

sections

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The first section which is the introduction deals with different aspects of the study consisting of the foundation of the research,

explanation of the issue, goals or aims of the investigation, research inquiries, centrality of the investigation, brief procedure, Scope of

the investigation, constraints and arrangement of the research.

The second part of the long essay is the literature review section. It presents a review of key terms, major theories, and empirical

findings on digitalisation in the hospitality and tourism industry, basically assessing the application of technology on customer

experience.

The chapter three deals with the summary of findings, conclusion and recommendation.

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter provided analysis of some studies that have been done on tourism and hospitality, and the impact of technology on the

sector. Literature is drawn from journals, books, unpublished papers among others to establish where the study finds itself in the

ongoing discussions among scholars. According to Saunders, Lewis and Thornhill (2000), the literature review forms the framework

for research, as it helps to develop a good understanding and to provide insight into relevant previous research and emerging trends.

The literature focuses on three main areas based on the research's effort to meet the study's aims. As a result, emphasis was placed on

how other scholars presented their thoughts and ideas on the subject and other connected concerns. The chapter began with research

on the global impact of technology on the overall industry. In the following section, the focus was reduced to the African perspective.

2.1 Conceptual Review

Conceptual review is a methodology wherein research is conducted by observing and analyzing already present information on a given

topic. The goal of the conceptual literature review is to categorize and describe concepts relevant to the study or topic and outline a

relationship between them.

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2.1.0 Definition of key terms

It is important to define key terms that underpin this particular study. The following subsections seek to define the relevant keywords

of this study.

2.1.1 Digitalization

Use of the internet (including social media) is interpreted as digitalization, which falls short of the term's definition and thus creates

and disseminates a false image of hotel digitalization. As a result, digitalization must become a part of the business as an integrated

process to modify operational methods (see also Veit et al., 2014). Not merely the use of social media as a marketing tool,

digitalization refers to an inventive transformation in practically every branch of the industry. As a result, digitalization should not be

employed in and of itself, but rather should be integrated into operational procedures (Veit et al., 2014, p. 55 ff.). Digitalization has a

much broader impact than past industrial revolutions' linear processes. The complexity of digitalization has an impact on the business,

politics, and society, putting new demands on digitalization users. As a result, the term "digitalization" obtains social and economic

significance, while also encountering the social transformation of generations such as the baby boomers, Gen X, Gen Y, and Gen Z.

2.1.2 Technology

The application of scientific knowledge in real-world situations, particularly in industry. People's communication, learning, and

thinking are all influenced by technology. It improves society and has an impact on how individuals interact on a daily basis.

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Technology is extremely important in today's world. It has both positive and negative effects on the environment, as well as an

immediate impact on people's lives. We live in an era when technological improvements are the norm. Two examples are cell phones

and the internet. Technical advancements, on the other hand, have a disadvantage.

Learning is one component of technology that has had a significant impact on society. Learning has become more interactive and

collaborative, allowing people to better engage with the topics they are learning and having difficulty with. It also improves your

access to resources. With the invention of the internet, we now have access to information at all hours of the day and night, and you

can find practically anything online. It also makes it easy for pupils to complete their assignments. Students can take quizzes and

exams more readily, and teachers can hold more productive online classes. It also pushes the classroom's boundaries, encouraging

self-paced learning. Learning can be accessed via YouTube and social media. This is more beneficial to students' learning than sitting

in lectures and reading textbooks. Learning has become more enjoyable and convenient as a result of technology improvements.

Another area where technology has had an impact on society is communication, or how we converse and connect with one another

around the world. Many new forms of electronic communication have emerged as a result of technological advancements. For

example, there are emails, social networking, the ability to facetime someone on the other side of the planet, and video conferencing,

which allows you to hold virtual meetings. Finally, technical improvements in the health profession have aided in keeping people safe

and healthy. There are numerous innovative phone apps that allow consumers to keep track of their weight, calorie intake, heart rate,

and other health parameters at any time of day. There is more treatment accessibility, a shift in healthcare that includes benefits for the

aged, and hospitals that use modern technology in their operating rooms.

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However, research demonstrate that mobile communication has a negative impact on people's ability to be sociable and make face-to-

face contact. Mobile technology has the potential to reduce interpersonal interactions and relationships. There is less personal time,

and you may find that you do not have enough time for yourself because you are constantly in communication with others. It can also

be a source of distraction from your studies. There is also loss of privacy, because anyone can find you anywhere, at any time of the

day. In conclusion, all of these things impact how humans act today. Without technological advancements, our way of life would not

be as complex. Technological influences shape the way humans act today.

2.1.3 Hospitality

Being hospitable is referred to as hospitality. Hospitableness is a characteristic shared by hospitable people, and it is this characteristic

that enables them to create a comfortable, warm, and welcome environment for others. In its most basic form, hospitality can be

described as follows:

It provides food, drinks, and, at some point, housing or convenience to individuals who are not frequent members of a family.

Normally, suppliers or hosts conduct these activities in their own homes, with the intention of sharing their meals with their guests.

This concept can be expanded in a variety of ways: for example, a company is considered to provide hospitality if it provides food and

beverages to travelers. In any event, the essential premise of the concept remains that of graciously giving one’s own house to others

(Telfer E, 2001).

"Administration disappointment" refers to a company's inability to provide satisfactory forms of help (Maxham and Netemeyer, 2002).

In this view, hospitality is defined as the kind and liberal gathering and enjoyment (rendering administration) of visitors, guests, and

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strangers. It is essential to continually match the needs of these visitors by providing one of the top administrations. Furthermore, it

includes quality communication between visitors and employees (staff) (Liquor and Cronin, 2001; Clemes Gan and Ren, 2011;

Clemes, Gan and Kao, 2007; Martinez and Martinez, 2007;. Outsiders become familiars, enemies become comrades, companions

become greater companions, outsiders become insiders, and non-kinfolks become families (non-family to family) (Conrad Lashley

and Alison Morrison,2000).

The hospitality industry encompasses a diverse range of businesses, including hotel, food and beverage outlets, event planning, theme

parks, transportation, cruise ships, airlines, and other tourism-related industries (Andrews, 2007).

2.1.4 Hospitality sector in Ghana

The following are the four primary sectors in which the hospitality industry in Ghana operates: first, the food and beverage sector,

which is involved in the preparation of meals, snacks, and beverages for patronage by visitors to the business.

Second, travel and tourism: This industry deals with services that involve moving clients from one location to another for leisure,

business, or entertainment, as well as spending money on hospitality at those locations.

Furthermore, guests who embark on travel and tourism are provided with accommodation services because, in tourism, a tourist is

defined as a person who spends a minimum of 24 hours and a maximum of a year at a destination, so it is critical that the guests are

provided with accommodation services so that he or she can fully enjoy the experience. Hotels, motels, guest houses, hostels, and

other lodging options are available. Finally, recreation refers to things that a tourist or guest does for fun when visiting a destination.

Hiking, riding, socializing, video games, football, basketball, volleyball, and other sports are examples of these activities.

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With this in mind, we can state that every sector of the hospitality and tourism industries collaborates with one another, and both are

focused on providing high-quality services to tourists and guests at the destination or hospitality facilities at all times (Andrews, 2007).

2.1.5 Customer experience

Customer satisfaction is a measure of a customer's enjoyment as a result of their experience. It can be defined as a customer's state of

mind when a product or service has met or exceeded their needs and expectations. It's defined as the relationship between perceived

quality and post-purchase assessments. Customer pleasure can lead to repurchases and increased loyalty (Yi,1991).

Customer experience, according to Meyer & Schwager (2007), encompasses all aspects of a company's offering, including service

quality, advertising, packaging, product and service features, ease of use, and reliability. Customer experience is a complicated

process that entails deciphering consumers' conscious and subconscious perceptions of their relationship with the company based on

all of their interactions. In today's competitive, global marketplace, customer experience has become a vital differentiation. Customer

experience management can help you increase customer loyalty, strengthen brand preference, increase income, and cut costs

(Espana,2006). Customer satisfaction is a result of the customers’ experience, often measured as a degree of “happiness”. It can be

defined as a customer’ state of mind in which their needs and expectations have been met or exceeded with a product or a service. It is

described as the link between perceived quality and post-purchase evaluations. Customer satisfaction can result in a subsequent

repurchase and prolong loyalty (Yi,1991).

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2.1.2 The emergence of digitalization in the hospitality industry

Digitalization began in the 1990s with the launch of the first widely utilized commercial websites, where digital technology provided a

new level of convenience to hotel customers. Today's advancements in digital technology provide new avenues for developing new

products and services.

Digitalization is one of the major themes affecting society and business in the near and long term future, according to Tihinen &

Kääriäinen (2016). The impact of digitalization will be substantial; several pundits have compared it to the industrial revolution

(Degryse, 2016; Tihinen, et al., 2016). Digitalization, or digital transformation, is defined as "the changes connected with the

application of digital technology in all elements of human civilization," according to the literature (Stolterman & Fors, 2004). In the

1990s, digital technology introduced a new level of convenience to hotel visitors with the development of the first widely utilized

commercial websites. Today's advancements in digital technology provide new avenues for developing new products and services.

Creating such digitalized products and services, on the other hand, frequently presents new obstacles and challenges to hotels

attempting to innovate. In this paper, we examine the trends that will impact visitors' future stay and address the importance of

digitization of products and services in the hotel business.

2.1.2.1 Digital technology in the hospitality industry

An article from 1995 (Hansen & Owen) predicts that technological advancements will be necessary for work in the future for hotels.

They wrote about “smart cards” that the guest can use as a key to hotel room, as well as future “kiosks” that would facilitate the

registration of guests in the hotels and would save time. Database marketing (consumer segmenting and further improvement of the

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guest’s profile) was a trend 20 years ago, and now it is a standard tool in the day-to-day operation of hotels (Petrovits, 2014). All this

is not just facts, but also evidence that perhaps the future of technology is predictable. However, the adoption of technology in the

hospitality industry began in the early 1970s, but has since continually progressed (Collins & Cobanoglu, 2008; Kasavana & Cahill,

2007; Sammons, 2000). Since its inception, industry researchers have expressed concerns about the value of technology and the

possible consequences for guest satisfaction (Collins & Cobanoglu, 2008; Piccoli & Torchio, 2006), resulting in changes in their

behaviour initially toward the selection of the hotel product.

2.1.2.2 Digital technology trends in the hospitality industry

Digital technology in the hospitality industry is progressing at a faster pace than ever before, and so many of the new devices created

over the past decade are expected to become standard soon. In this paper, in the next few pages the authors will focus on some of the

recent technological products in the hotel industry:

• Keyless entry. The days of losing the card where the guests were standing locked out of their room are gone. In modern hotels,

control cards are used to unlock the hotel rooms. On June 28, 2014 Starwood Hotels was the first hotel that provided access to their

guests with their key-free rooms, through their SPG application. Since 2016, this technology has been appropriated by Hilton, Marriott

as well as Hyatt and InterContinental Hotels Group.

Mirror - TVs. Imagine watching TV in the mirror of the bathroom in the hotel room. At the BDNY (Boutique Design New York)

conference in November 2018, Mirror Image Hospitality announced a partnership with Keypr, a cloud-based management form, to

create the “Remi” – the “smart TV” that will serve as a TV, virtual concierge and when switched off as a normal mirror. “Remi”

mirrors currently cost $ 1,800 per piece, and the complete programming equipment costs$ 2 per night from the room. The complete

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package includes: a mirror, a mobile application, a room tablet and a keyless entry program. Last year, Electric Mirror introduced the

“Savvy Smart Mirror” featuring voice activation and activation on the touch. “Savvy Smart Mirror” offers guests the opportunity to

talk to him and ask him for room service, or for the hotel's swimming pool hours. Also, the TV can measure the room temperature.

The first hotel to use “Savvy Smart Mirror” will be Sinclair Hotel, a member of the Marriott's Autograph Collection in Fort Worth,

Texas, and will open this summer.

Smart rooms: Almost 5,000 rooms at Wynn Las Vegas already have the ability to voice activated through “Amazon Echo”.

Meanwhile, Hilton has beta tested their first mobile-centric hotel room “Connected room”, where guests can control temperature, light,

blinds, thermostats and televisions with just touching their phones. “Connected room” is a Hilton solution for continuous innovation

that will make it easier for hotels to keep up with the rapid changes in technology.

The innovation is in the DNA of Hilton, starting with entrepreneur Conrad Hilton and buying Hilton's first property as well as

becoming a pioneer in the hospitality industry nearly 100 years ago. With many innovations later, Hilton again set a new standard in

the hospitality industry, giving its guests a travel experience where the room knows them and they know their room.

Developing an intuitive system is also critical for Marriott al well, who wants to innovate constantly the global experience for guests

in its 30 brands. Similarly, Marriott is in the process of launching its own “Internet of Things” room, offering services like a virtual

assistant, yoga training exercises in front of a large mirror and digital frames with the ability to attach pictures of friends and family

photos during the stay. The trend is pretty clear: this concept of smart rooms will bring hotel-making to a level that was unthinkable

until just five years ago. Guests can now continue their favourite Netflix series where they stopped or to play their favourite Spotify

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playlist as soon as they register at the hotel and enter the room. Sensors on the bed will know when guests are awake or sleeping to

optimally optimize room temperature and light.

Chatbots: The real revolution in digital technology in the hospitality industry is yet to come and show its first signs. When first

introduced in 2016 by Facebook and Slack, it was clear that chatbots will become an integral part of the future of hotel operations, and

at the same time a trend that many will follow (Goncalves, 2016). Because who does not want to talk with artificial intelligence? One

of the flexibilities that chatbots can offer is that they are open 24/7 and questions can be asked that can be answered at any time of the

day or night. In February 2017, the Mercure brand part of the AccorHotels Group launched the “BOT”, a minute assistant as a

messaging solution for instant messaging. This useful tool has allowed guests and residents of the neighbourhood to equally discover

the “local stories” that surround them simply by geo-location and permission to be guided. But artificial intelligence is becoming more

important within certain industries, and in particular the hospitality industry. From smart rooms to chatbots, artificial intelligence helps

improve the client's optimization and experience.

Recently, Cosmopolitan of Las Vegas has launched its first AI chatbot concierge named “Rose. “Rose”, a concierge with a sense of

humour. When guests enter the hotel, the receptionist gives them a card saying: “Find out my secrets. Write me. I am the answer to the

question you never asked”. The card also has a Rose phone number, on which you can write for almost everything International

Journal

of Information, Business and Management, Vol. 11, No.3, 2019 ISSN 2076-9202 149 you need during your stay. (In the background,

Cosmopolitan employees are on hand to help you with something that “Rose” cannot.) Do you need more towels in your room? Also

write to “Rose”. Want to order a pizza at 3 o'clock?

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Mobile technology: As we have already established, digital technology infiltrates virtually in every aspect of our lives, and hotels must

understand that almost every guest that registers in the hotel, resort or spa have a smartphone in their pockets. Many hotels already use

social media as a tool that will ease the process of registering guests in the hotel, mainly through a site-based sign-in application,

sharing their Twitter experience and sharing their photos with friends and followers on Instagram and Facebook: This trend in

technology will continue and hotels can expect even more social media activity from guests who, as we have said, use these platforms

to give feedback on their experience, to complain, but also to provide compliments for their stay.

Photographer and tourist blogger Jen Pollack Bianco, while checking in the Sheraton, Bratislava found a book “Instagram moments”

in her room that came with a note stating: “As we know Jennifer wants to publish pictures on Instagram, so we thought you enjoyed

this selected choice of 25 of our most beloved photos from Bratislava”. The Ritz-Carlton Naples resort in Naples asked their fans on

Facebook to answer what kind of cafe they drink. If you answered, and while staying with them, your coffee will arrive sweet enough

without the need to ask for more sugar.

Virtual concierge: In many hotels, guests can now communicate their needs with smart phones through communication rather than

staff in the hotel. Imagine asking for more towels or late checkout without having to get out of bed. There are several reasons why you

would like to practice this type of concierge: automatic messages, save valuable time for guests and staff, SMS messages quickly

resolve guest complaints and SMS message store data from every interaction with each guest. Thus, the guest's days will need to call

the reception or to the concierge for certain requests, have long been spent. Today's hotel guests can get in touch with a message with

hotel staff through the respective smartphone applications. For example, with the “Marriott International” and “Hilton Honours”

18
applications, a guest can complete the registration process before arriving at the hotel, unlocking the room with a mobile key, and send

a message to the hotel staff for specific requests.

In November, 2015, Hyatt began using Facebook Messenger as a channel for guest services, in addition to already starting to use

Twitter, also published a new version of the “Hyatt Gold Passport” application that includes the ability to text message, send messages

to Facebook messenger and twitter on Twitter.

2.1.2.3 Why digitalize?

Many believe that when it comes to the hospitality industry that there isn’t a lot of ways to be innovative. But since our lives become

more focused on digital technologies, the transformation is affecting all industries, including the hospitality (Ristova & Maglovski,

2018). It needs to be understood that digitalization is a step change even greater than the Internet. Exponential technology advances,

greater consumer power and increased competition mean the hospitality industry will face the threat of commoditization. The winners

will act now, and build a strategic advantage that leaves their competitors wondering what happened. With this, digital innovation is

key for the competitiveness of the hospitality industry in the tourist destination, as well in the tourist market for the guest’s attention.

(Ristova & Maglovski, 2018). Once upon a time guests would book in a hotel over the phone, by walking into a hotel, or through a

travel agent. Now online travel agents (OTAs), hotel websites and social media dominate in the hospitality industry.

Digital technology has allowed hotel guests to instantly access any information International Journal of Information, Business and

Management, Vol. 11, No.3, 2019 ISSN 2076-9202 152. They’re looking for on the Internet via a PC, laptop, tablet, or smartphone –

with mobile bookings experiencing constant growth. It’s also given them the expectation that their behaviour, history and preferences

19
will not only be remembered, but used for an even greater level of assistance and personalization. Mobile apps also could be utilized

in a more effective way to reduce the hotel’s marketing cost and reach out to the potential guests. (Kwon et al., 2013)

Guests can book their own hotels online, choose to stay in a stranger’s house, and search online hotel reviews on their mobile – all

while connected to the hotel Wi-Fi. All of this can be performed autonomously and in their own time. Therefore, with hospitality

being a high-tech and high-touch industry, the guest experience is expected to be high-tech and high-touch. In general, hospitality

needs to digitalize to be able to control the loss of control over the customer relationship, increased competition and the threat of

commoditization, and the need to engage digitally with suppliers, partners and employees in addition to guests.

2.2 Theoretical Review

The theoretical review’s purpose is to concretely examine the corpus of the theory that has accumulated in regard to an issue, concept,

theory, phenomena. It defines the key concept in your research, proposes relations between them, and discusses relevant theories

based on a literature review. A strong theoretical framework gives your research direction, allowing you to convincingly interpret,

explain and generalize from your findings.

2.2.1 Tourism, hospitality, and digital transformation

Advances in information and communications technology have enabled the global economy to undergo a digital transformation

(Huijbens & Johannesson, in press). The tourist and hospitality industry has borne the brunt of these developments, both in terms of

the types of enterprises that have emerged and the services that have been provided (Tajeddini, Ratten & Denisa, 2017b). The tourism

industry is home to some of the most well-known new digital enterprises, such as Airbnb and Uber. As a result, digital transformation

20
is a hot topic that will have a significant impact on how we evaluate and use tourism services (Tsiotsou & Ratten, 2010). Digital

technology can be classified into three main types: adaptive, ideal, and potential. Adaptive technology change is based on social and

market needs in a way that makes them more relevant to their citizens (Anggadwita, Luturlean, Ramadani & Ratten, 2017).

These technologies have a well-established infrastructure, but they want to be less reliant on government financing and more self-

sufficient. As a result, digital technology evolves to provide greater freedom and control over future applications. Adaptive technology

can develop additional value-added services by focusing on high growth potential in tourism, which not only benefits tourism

stakeholders but also provides greater financial flexibility. Ideal technology incorporates new ideas that are relevant to the tourism and

hospitality industries. These technologies have a well-established infrastructure, but they want to be less reliant on government

financing and more self-sufficient. As a result, digital technology evolves to provide greater freedom and control over future

applications. Adaptive technology can develop additional value-added services by focusing on high growth potential in tourism, which

not only benefits tourism stakeholders but also provides greater financial flexibility. Ideal technology incorporates new ideas that are

relevant to the tourism and hospitality industries. Customers can now be co-creators of tourism experiences thanks to the use of social

media technology such as mobile phone apps. Tourism services now allow for real-time and quick communication, which has

increased rivalry in the business. Marriott and Sheraton, for example, have spent a significant amount of time and effort creating and

implementing digital technologies. This is critical, especially in terms of service internationalization. Whilst there has been an

emphasis on the positive effects of digital transformation, there are also negative effects that need to be acknowledged. The tourism

industry has many small and medium sized businesses that enable change to occur on a frequent basis.

21
Despite the resource constraints of these small businesses, they have been able to be creative in terms of services offered (Ratten,

2006). This has led to large tourism businesses imitating some of these innovations, but also capitalising on their potential. Creativity

can occur in several different ways in tourism both through online booking but also with the location and type of accommodation

services (Ratten, 2014). There was a time delay in terms of hotel bookings in the past, but with online instant feedback, the market has

transformed. Changing societal demographics, such as the aging population, have also influenced the types of hotel services required.

While it has long been assumed that digital innovators are young, this is not necessarily the case, as older people often have the time

and resources to spend in digital innovation. Furthermore, as the middle class in emerging economies grows, so does interest in

tourism. This is obvious in nations like Indonesia, which has seen a significant growth in domestic tourism as a result of lower costs.

In the future, the tourism and hospitality industry will continue to change because of digital transformation. There has been some

discussion about the growing inequalities in society because of digital change that raises some interesting issues. For example, the

increased population density in capital cities has meant other regions have lagged in development (Ratten & Ferreira, 2017). This has

resulted in an exodus in population numbers of some regions to the more highly populated areas. To reinvigorate these lagging regions

new tourism strategies have been introduced that focus on integrating digital experiences. In times of economic growth, there tends to

be a large percentage of entrepreneurship in the tourism business, therefore digital change is important for a healthy community.

Digitalisation's major goal is to provide more integrated internet services that will aid economic growth. This entails developing a self-

sufficient mindset by facilitating creativity, which in turn encourages more tourist start-ups. Some tourism businesses do a better job

22
of using entrepreneurship than others by combining individual ingenuity (Ratten, 2018). This allows creativity to touch on how a

group of people can brainstorm ideas and come up with unique tourism solutions.

To achieve effective outcomes, an emphasis on self-generated business ideas that are nurtured through community involvement is

required. Because tourism involves a group of people, when entrepreneurship is introduced, innovative results will emerge. However,

there is some ambiguity surrounding the word tourism and hospitality, as it can refer to a wide range of industries, both small and

large. The realization that the environment is receptive to digital change has resulted in rapid growth in tourism and hospitality

research. Because of the favorable relationship between tourism and innovation, there should be increased interest in digital

transformation in the future. As a result, there is plenty of room for fresh study into digital transformation, which has the potential to

revolutionise the tourism and hospitality industries. Future research should concentrate on the influence of various forms of digital

technology by examining their cultural and social effects. Scholars can expand current studies on digital development to provide more

linkage to tourism and hospitality by building on previous research.

2.2.1.1 Perception of guest technologies in the hotel industry

The hotel industry is often criticized for being slow to implement the latest technologies in guestrooms as opposed to overall

operations (Siguaw et al., 2000). To change this perception, an industry forum of technology started in 2006 the "In-Room

Technology Workgroup" aimed at developing the guestroom of the future, Guestroom 20X (Barnes et al., 2012).

According to a recent study published in Hospitality Technology (2013), hoteliers were presented with a significant challenge: the

requirement to meet growing client demands while also lacking adequate budgetary resources to incorporate new technologies.

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Another issue for hoteliers is quickly changing technology, which results in shorter life cycles (Horner, 2013). According to the

novelty idea, hotel visitors may have an initial great interest in utilizing new technology solely out of curiosity (Hirschman, 1980); but,

as guests grow adept in using the new technology, the novelty effect diminishes (Beldona & Cobanoglu, 2007).

Nevertheless, to meet the guests’ growing interest in having technology in their rooms, hotel companies started to implement

technological amenities faster to meet customer needs and also to be competitive (Barnes et al., 2012). Therefore, it is crucial for

hoteliers to invest in the proper technology, turning the challenges into opportunities and gain a competitive advantage.

2.2.1.2 Generations and Technology

Every generation utilizes technology differently, according to a research published by the Centre for Marketing Effectiveness in

partnership with Hotel Next Generation. Baby Boomers (born between 1946 and 1964), Generation X (born between 1965 and 1976),

and Generation Y (born between 1977 and 1993) were the three generations studied in the report (Centre for Marketing Effectiveness,

2005). Hotels used to cater mostly to Baby Boomers, but now Generations X and Y have more options to travel than ever before. As a

result, hotels must target and attract younger travelers (Lussan, 2011).

A related study found that the level of importance for some technology is different across generations (Nasoz, 2011). When compared

with all other generations, Gen Y assigned significantly high importance to many technologies such as: in-room video On Demand,

guestroom lock access via mobile phone, and new technology phones with visual displays.

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Younger generations (Gen Y and Gen X) gave significantly more importance to connectivity panels. Some technology such in-room

movie On Demand services, in room wireless HSIA, and electronic in-room temperature control units are considered important not

only for Gen Y, but also for Gen X and Baby Boomers. It was only the silent generation (born after 1945) that gave less importance to

these technologies. Despite the differences across generations, only the connectivity panel showed a significant difference between

Gen X and Baby Boomers (Nasoz, 2011).

According to AARP & Microsoft, Baby Boomers are open to new technology, because they believe that it can enhance their lives. The

technologies most used by Baby Boomers are television and Internet (Centre for Marketing Effectiveness, 2005). However, they are

less likely to become early adopters because safety and privacy are more important for them than for other generations. Younger

travellers have grown up in a world where technological advances were easily integrated into their lives. Therefore, they are more

naturally early adopters of technology (AARP &Microsoft,2009).

Gen X and Gen Y give a lot of importance to technology, although from different perspectives. While Gen X tends to use technology

that makes life easier, saves time and are comfortable doing their banking and shopping online, Gen Y prefers to use technology to

socialize and entertain. For this generation, technology is a part of their lives (Forrester Research, 2008). Gen Y is the most

technology savvy generation. (Forrester Research, 2008; Centre for Marketing Effectiveness, 2005) and Gen X is still behind Gen Y in

terms of the number of technologies deemed as important (Nasoz, 2011). However, both generations tend to prefer hotels that offer

high-speed Internet and iPads (Lussan, 2011). They expect to remain connected wherever they go and continually look for new ways

to access and interact with their personal content (Chin, Nd). To meet the preferences, needs and desires of their customers across

25
generations

hotels should be aware and provide a range of technological amenities (Centre for Marketing Effectiveness, 2005). The assumption

according to previous studies is that technology is more important for younger generations (X and Y) than for Baby Boomers.

Consequently, the research hypothesis is the following: H2: The latest technologies are more important for younger generations than

for Baby Boomers.

2.2.1.3 Guest empowerment Technologies (GET)

GET is a self-service technology meant to provide hotel customers more personal control over their stay without requiring direct

intervention from hotel workers. In-room check-out systems, lobby check-in and check-out kiosks, in-room entertainment systems,

mobile applications, online reservations systems, and others are instances of GET. (Erdem and colleagues, 2009). According to Van

Hoof, Verbeeten, and Combrink (1996), the goal of GET is to improve the visitor experience by providing more comfort while

reducing labor expenses and making hotel operations easier. For example, the instalment of check-in kiosks reduced the amount of

labour required for reservation activities, so the staff had more available time for additional tasks in order to increase their level of

customer service and consequently enhance guest satisfaction (Erdem, et al., 2009). However, a related study shows that one of the

five attributes with the lowest overall satisfaction was self-check-in (Usta, Cobanoglu, Berezina, 2011). Nevertheless, a recent study of

106 respondents shows that about 80% of the guests would prefer to use self-check-in methods such as kiosks, online or other rather

than go to the front desk. Guests prefer to replace long waiting lines with convenient and less time-consuming technology facilities

(Bhangu, 2013). Another related study at the Cornell University Centre for Hospitality Research found that one of the guests’

26
favourite technology applications was the self-check-out service (Verma, Victorino, Karniouchina, & Feickert, 2007). The result of

using the GET is not only a reduction of labour costs but also the increase of customer satisfaction. Therefore, the hotel managers

should consider using them to have a competitive advantage and to meet customer expectations as guests will expect to find GET in

their rooms (Erdem et al., 2009).

2.2.1.3.1 In room technologies

A study found that hotel operators invested more in in-room technology than any other technology for three consecutive years. The

top two in-room technology projects planned to be implemented within 18 months are networking (for example, increasing wireless

Internet access) and upgrading TVs (Hospitality Technology, 2013). A recent survey of lodging operators found that 62.5% of them

reported "successfully" or “very successfully" enhancing customer experiences using in-room technology over the past three years.

Only 6.4% believed that in-room technology did not enhance customer experience. And 25% of the respondents reported that in-room

technology installations have generated additional revenues. On the other hand, 31.4% stated that the installed in-room technology did

not have a positive effect on revenue (Jung et al., 2014). According to DeMicco & Cobanoglu (2009), technology in the hospitality

industry started in the early 1970’s and has been quickly evolving. Figure (1) shows the evolution of guestroom technology between

1970 and 2000.

In-room technology has not only improved in-room services, but it has also created new ways to entertain guests (Barker et al., 2003).

Over the years, the guestroom experience has evolved considerably. Hotel firms are gradually transforming the area of in-room

27
entertainment, incorporating current technology into their rooms, to give service with greater comfort and convenience to clients (Sie

burgh, 2009).

Previously, there were few possibilities for entertainment. Consumers now have a plethora of entertainment options because to rapid

technological advancements. They want hotels to provide at least the same degree of amenities as what they now have in their homes

(Trauthwein, 2012), if not more. In their daily lives, guests use technology such as high-speed Internet, high-definition television,

digital entertainment devices, and VoIP. Many hotel customers consider their stay to be a home away from home (Parets, 2004).

A study of hotel managers found that in-room entertainment systems ranked second behind wireless Internet as the technology that

hotel guests care about most. (Brewer et al., 2008). This increasing level of guest expectation leads hotels to offer more rooms with

diverse technological devices of entertainment. According to Microsoft, in-room entertainment is one of the fastest growing revenue

generating opportunities in hospitality.

Some studies indicate that several in-room technologies are being introduced to provide better guest experience (Erdem et al., 2009;

Cobanoglu et al., 2011). For example, in 2010 Marriott International tested its Internet Protocol Television (IPTV) initiative in the

guestrooms of a pilot hotel - Courtyard Seattle Downtown/Pioneer Square in Seattle, WA. to enhance the level of guest experience.

According to Neil Schubert, Vice President of Information and Technology for Marriott, the IPTV initiative will allow hotels to

provide an interactive service to guests in order to give them the possibility of having a similar experience to the one they have in their

homes because half of guests do not travel with their laptop electronic devices with them while traveling and 67% want to use them

with the hotel entertainment system (Hotel marketing, 2008).

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At the present time, hotels, especially the upscale and luxury hotels, are competing to provide service with the latest technology for

their customers. However, a related study showed that a significant number of customers do not appreciate many of these investments.

Some technological entertainment amenities are a low priority for guests, such as, gaming consoles, Internet on TV and in-room

fitness amenities. Whereas other technology such as, Free-To-Guest TV, Guest-Device Connectivity and HSIA are very important to

customers and contribute to their high level of satisfaction. However, some amenities need special attention because they were rated as

important by guests but with a low satisfaction rating. These included music, universal battery charge and in-room desktop PCs

(Bilgihan, et al., 2011).

Peliz Nasoz (2011) did a study through an online survey with a sample of 508 respondents examining 18 in-room technologies and

found that the following were perceived by hotel guest as the most important technologies: in-room movies, On Demand services, in-

room high-speed wireless Internet service, HDTV content, in-room temperature control, in-room electronic safe, connectivity panels

and all-in-one guestroom control units. He also found that they were satisfied with the performance of these technologies and would

therefore like to use them during their hotel stay to enhance their experience. Alternatively, these three relatively new technologies

were classified by guests as not very important: 3D television, Internet on the TV, and guestroom lock access via mobile phone.

Finally, the technology classified as less important but with strong performance were in-room check-out system through the TV, in-

room video viewing of guest profile, and voicemail (Nasoz, 2011). A similar study found that HSIA, express check-in and check-out,

and remote control for the TV were ranked as having high importance and as high-performance technology by guests, who categorized

it as "Keep up the good work". On the other hand, some technology such as videoconferencing capabilities, wireless access to the

29
hotel website, business centre and plasma screen TVs were classified as "low priority" for guests, ranked as low performance and low

satisfaction (Beldona & Cobanolgu, 2007).

In sum, while hotel operators are investing in technology, not all of it has been appreciated by the guests, as was observed in the gap

between the importance and satisfaction level for technological amenities. Therefore, it is important to explore the customers’ opinion

to understand what the impact of technological amenities on the customer experience in upscale hotels is and to learn which

technologies are important for guests.

2.2.1.3.2 Kiosk

Increasingly, hotels around the world are adopting an electronic and Kiosk check-in in order to simplify, personalize and speed up the

process, allowing guests to go directly to their rooms (Weed, 2013). According to Tyler Craig, Vice President and General Manager

for the NCR Corporation’s travel business, guests don’t want to wait in line for the front desk anymore because they are using ATMs

at the bank, online check-in at airports and now expect to find the same efficiency when they arrive at a hotel.

Different check-in techniques are supposed to provide options for guests, according to Joseph Lema, Assistant Professor at Drexel

University's Goodwin Hospitality Management School and David Nadelman, General Manager of the Grand Hyatt San Francisco.

They do advise, however, that self-service technology should not be utilized to replace service; rather, it should be used to enhance

service. Each type of visitor has distinct preferences. While leisure travelers have more time to ask front desk personnel for

recommendations, business travelers prefer to check in utilizing self-service alternatives like online or kiosks (Weed,2013).

30
Between these two self-service methods, Henry H. Harte veldt, Co-Founder and Head of Airline & Travel Research and the

Atmosphere Research Group, advised hotel managers to invest the same money they would have in kiosks with an online application

that allows guests to more easily and quickly check-in and check-out (Weed, 2013). Before its grand opening, Sana Evolution, a new

hotel that opened in Saldanha in February 2015, released a statement saying that it would be incorporating technological innovations

such as self-service check-in, E- hosts to help guests and more.

2.2.1.3.3 Digital check-in and check-out

While check-in kiosks and other methods of avoiding the front desk wait have become more widespread in hotels, the use of mobile

check-in has exploded across the sector (Baker, 2014). Omni Hotels was the first hotel chain to offer online check-in as a mobile

website function in 2008. This innovative technology allowed customers to check in before arriving at the hotel, guaranteeing that

their room keys were ready and waiting for them at the front desk (Baker, 2014).

Another example is Marriott Hotels who announced a significant expansion of the mobile check-in and check-out process in 2014. By

August of 2014 Marriott International had already made the mobile check-in and check-out process available to Marriott Rewards

members at 1,200 properties worldwide. Using the Marriott Mobile Application, guests who are members can check-in starting at 4

p.m. on the day before their arrival. When guests arrive at the hotel, they only must pick up the key card that is waiting for them at a

specific mobile check-in desk.

By the end of 2014, Hilton Worldwide, one of the world's major hospitality firms, revealed that it was the first to offer digital check-in

to its Hilton Honours members, allowing guests to sign-in to their accounts using a mobile device, tablet, or computer. They can also

31
choose their own room from digital floor plans, which include not only the type of room but also the actual location in the hotel as

well as the room number. After selecting a room, guests can personalize their stay by ordering certain things to be sent to their room

prior to their arrival.

In the end of their stay, guests can also check-out through their own devices and their bill will be automatically sent to their email

address rather than stopping at the front desk.

According to Geraldine Calpin, Senior Vice President and Global Head of Digital at Hilton Worldwide, in order to understand what

guests really want feedback from more than 40 million Honours members, as well as the data from guest surveys, social media and

review sites was analysed. The result was clear that guests want greater choice and control of their hotel stay. 84% of business

travellers surveyed in a recent Hilton survey7 from the U.S. said they wanted the ability to choose their exact room. A few months

after the launch of the room selection feature, Hilton did a follow-up study to get feedback from guests. One-third of eligible guests

had already used the function and more than 90% were "satisfied" or "extremely satisfied" with the experience and said they would

use it again.

Despite this ground-breaking innovation, Hilton is presently working to improve the procedure because customers must still stop in

the hotel lobby to pick up their keys. To make the process easier, a future hotel key must be created that allows customers to unlock

their hotel room doors using a mobile-enabled room key. Given what guests have experienced with room selection, Hilton expects this

new technology to be offered in some U.S. properties starting in late spring 2015. With digital technologies that guests want, they're

redefining the hotel guest experience.

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Table 1. Synthesis of technology trends and their features

Technology Features

Guests can check-in and go straight to their room without having to wait

in line at the front desk, thanks to a very user-friendly touchscreen. It

also enables visitors to check-out.

Self-service check-in and check-out kiosks.

33
Technology Features

They have the option to check-in the day before their arrival, choose their

room number, and make specific requests to personalize their stay. They
Application (mobile phone, computer, or
must, however, select the key card at a specialized mobile check-in desk.
tablet) for check in and check-out.
Instead of stopping at the front desk, they can check out using their own

devices and have their bill automatically emailed to their email address.

Guest Room Lock Access via guest’s mobile If guests check in online, they can proceed directly to their rooms

phone without stopping at the front desk.

Internet connection, room control (heating, air conditioning, lighting,

music, TV, and curtain control), ordering room service, making

In-room Interactive tv bookings, a digital concierge with personalized care, check-out, and so

34
Technology Features

on.

Internet connection, games, and programs that allow visitors to control

their rooms (heating, air conditioning, lighting, music, TV, and curtains)
Tablet or iPad
as well as make restaurant reservations, order room service, and purchase

airline tickets.

Internet Access with high speed for free in

Free High-Speed Internet Access
room and in the public areas.

2.2.2 Impact of guestroom technologies when a guest is choosing a hotel

According to a survey with a sample of 508 respondents, nearly half of them agreed that the availability of new guestroom technology

impacted their decision when choosing a hotel. Only 17.5% said that in-room technology has no impact on their decision when

35
choosing a hotel. When asked if they would be willing to pay extra for a guestroom with the latest technologies, 36.1% said yes while

34.8% answered no. The remaining participants in the sample answered, "Neither agree nor disagree". Almost a quarter of the

respondents (24%) indicated that they would pay $1 to $10 more to stay in such a room; 19.9% were willing to pay $11 to $20; and

10.8% reported that they would pay $21 to $30 more (Nasoz, 2011). Although most guests may not be willing to pay for in room

entertainment technology amenities, one survey with 408 travellers (Bilgihan, 2012) reported that some guests are willing to pay $1 to

$5 to have video On Demand (59%), music (15%), game consoles (41%), Internet on the TV (36%), and HSIA (18.4%). Another

study with 408 respondents showed that, when deciding on a hotel, the two most important in-room entertainment technology

amenities for leisure and business travellers are a free-to-guest TV and high-speed Internet access (Bilgihan, et al.,2011).

2.2.2.1 Impact of Digitalization on Different Stakeholders in Tourism Industry

The impact of numerous stakeholders on the development of the tourism business is critical. It includes tourists, who are the industry's

most significant and key shareholder. They represent the industry's demand side. The hoteliers and restaurant owners serve as tourists'

suppliers. Travel agents serve as intermediaries between the demand and supply sides. Finally, tourism-related policies are developed

and implemented by planning organizations at the regional, state, and national levels. Without a doubt, digitalization has had an

impact on all stakeholders in the sector. On the one hand, it has revolutionized the experience of tourists, while on the other side it has

changed the operation of various stakeholders in the industry. Some of the way’s digitalization has benefited the various stakeholders

are explained below;

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2.2.2.1.1 The impact on Tourists

The key stakeholders who are most crucial to the development of tourism industry are the tourists. Every step that other stakeholders

take is correlated with increasing the satisfaction of the tourists to increase their number. Digitalization offers potential benefits to the

tourists in multiple ways. In the era of Geographical Information System, it has become much easier to access the information on

weather trends of a place for the upcoming days. This ensures that tourists do not have to worry about the possibility of bad weather

during their trip. Tourists therefore can screen destinations based on temperature trends. Reservation for flights and trains as well as

booking for hotels can be made easily with the help of various applications.

This leads to saving of a lot of time for the tourists. These offers are personalized, and it is because of digitalization that the companies

can make such offers to the tourists. The benefit of sharing economy cannot be fully exploited in case of classical booking system, but

digitalization has made it possible to execute the plans so as to retrieve the benefits which otherwise could not be received. With all

the information being available at ease and accessible with respect to hotels, tourism attractions, guides and other stakeholders, and

their ratings, it is easier for tourists to make decision.

Also, now tourists can search for what is famous food of that area. Thus, exchange of information is easier as well as efficient due to

digitalization. Various companies like Matoke Tours and Thomas Cook allow tourist to take a virtual tour to the destination. In case of

confusion, these tours can act as the deciding factor for selection. The latest trend in virtual reality (VR) is Space Tourism. Also, VR is

being adopted in hotel industry such as by Shangri-La and Marriott to provide additional value to the customers.

37
2.2.2.1.2 The impacts on Planning Authorities

Planning Authorities are existing agencies for development of tourism at state as well as national level. The role of agencies at state

level is to determine the mission and vision of tourism activities in the state and work for their own objectives. Ministry of Tourism on

the other hand works for the development of policies at national level. Digitalization has helped the planning agencies in the numerous

ways. By maintaining the database of number of tourists and about the carrying capacities and other attributes of destination, planning

agencies can mitigate the potential threats or lessen the damage in case of a calamity.

By continuously monitoring the number of tourists, agencies can avoid breaching of carrying capacity at the destination. Let there be

an assumption that a tourist is willing to visit a hill station. Normally he/she would choose a common and relatively a popular

destination, but when a person is planning his trip and there is an offer of additional 10 per cent discount, one can divert his/her choice

to some other place. This would fulfil our aim of protecting the exhausting destinations and simultaneously building up new

destinations. By using the digitalization, new innovative products in tourism can be developed. For example, by way of virtual reality,

one could develop new products like trip to ancient civilization for the history lovers.

2.2.2.1.3 The impacts on Travel agencies

Travel agencies act as a middleman and ensure that a regular supply of tourists is maintained. By advising the tourists in addition to

organizing trip for them, the agencies play an important role in the industry. The way these agencies work has evolved over the time.

These agencies use innovation through digitalization to overcome the competition in the market. Digitalization provides several

38
benefits to the travel agencies. Digitalization has led to diversification of business by travel agencies. They now look beyond ticket

bookings for flights. Business growth can be seen in the swelling balance sheets of the companies.

Digitalization offers substantial benefits by providing an effective and efficient means of communication thereby increasing the

competitiveness. Digitalization offers benefit in the form of reduction in costs of information exchange; speedy transfer and retrieval

of information; enhancing customer involvement in decision making process and changing the way marketing mix was used in the

industry. The application of digitalization provides much needed flexibility in the system with respect to utilization of resources. This

leads to economic benefits in terms of lower cost and higher profitability. With around 1.17 billion Indians owning mobile phones and

using the internet facility, it has become much easier for the travel agencies to market and project them with the help of digital

marketing. Tourism products can be easily explained, and custom-made plans can be provided without many hassles.

Digitalization has surely increased the reach of travel agencies. Price war in the industry has reduced the profits of the companies.

Also, there is need to gain advantage over the rivals without incurring much of the cost. Digitalization is one way by which

competitive advantage could be developed. Travel agencies such as Thomas Cook have designed an altogether different user interface

where they let you build your package from scratch. Coupled with virtual reality, it helps tourists in taking a well-informed decision.

Strategies like these surely provide an edge over the competitors.

39
2.2.2.1.4 The impacts on Hoteliers, Restaurant Owners and Transport Sector

Being the supplier side in the tourism industry, it is very important for hoteliers, restaurant, and transport sector stakeholders to

constantly innovate in order to beat the competitors. A lot of innovation is done with the help of digitalization. From online booking

access to provide a tour to the room through virtual reality, these stakeholders have focused a lot on digitalization.

Digitalization has impacted the emerging prospects in the niche tourism very well. Zomato, an app for restaurant and hotel finding

provides a list for legendary outlets comprising of the most famous and long-established food ventures in the area. Similarly, other

apps such as Swiggy, UberEATS, Food panda have also revolutionized the way we order the food (Warsi, 2018). Just a touch to the

users’ fingertips, a tourist can know about the ambience, food, staff service of any restaurant. This is very helpful for small but

authentic food ventures who cannot afford much on marketing. Digitalization has provided the hotel industry a means to provide

rather than gain information from the tourists.

E-CRM (Electronic Customer Relationship Management) works to attain twin objectives of customer satisfaction and building up of

trust in the brand. For example, through visitor profiling, special guest promotional schemes could be undertaken to provide more

personalized overall experience. Hoteliers

and restaurant owners now order their supplies electronically. This has reduced the overall cost of ordering for them. A lot of studies

have shown the positive impact of e-procurement on the performance of hospitality industry.

Digitalization has increased the accessibility for these stakeholders, especially for the transport sector. If one talks about digital

platforms in transport sector, Ola Cabs and Uber are fine examples of how digitalization has benefited the industry by improving the

40
accessibility of travellers for the cab owners. These new online actors are expanding to facilitate the visitors’ experience in the

destination (Kumar and Shekhar, 2020).

2.2.3 Digitalization in the hotel industry – challenges and outlook

The hotel and catering industry is characterized as an application sector of services to the guest. This service is the essence of the

history of the hotel and catering industry. This essence is still key today and has not changed the production process of an overnight

stay or a meal (food & drinks).

2.2.3.1 The challenge of digitalization for staff

The teaching of management to staff in the hotel trade is a never ending subject, which since the introduction of management systems

in the hotel industry (see also Buer, 1997), has attempted to close the conflict between specialized knowledge, increasing automation

to the guest and back of house, and the increasing staff costs. The increased systematization of processes in the hotel industry in the

1990s and 2000s through automation (e.g., convenience food, integration of internet functions) experienced a positive correlation to

rationalization.

The challenge of Digitalization is to not see it as further rationalization, but as a procedural modification of service to guests and in the

hotel. The conflicts in the hotel trade are:

 The employee is closely wedded to the core service of “services to the guest” and is open to the idea of digitalization, but uses

it little to not at all. Conflict – no mutual understanding (guest/employee) in communication and service; no understanding of

colleagues’ behaviour together.

41
  The employee is extremely digital and constantly in digital communication and finds the related language in a daily exchange

with his environment. This is the opposite conflict, i.e. the same conflict as in (1)

 Digitalization is seen to be a purely technical aspect and leads to a technocratic application with a linear implementation

pattern and therefore to the continuation of previous tasks within the previous activity. How can the latent and apparent

conflicts in hotels be steered towards a positive use of digital applications? This requires an application of the familiar with the

new. Barbara Friedrich, Head of Data & ERFA at Hotellerie Suisse, reflected in an interview that: Considering the current

skills shortage, it is important to use the available staff resources optimally.

Digitalization can help to automate repetitive tasks. It also helps to simplify processes. Thanks to modern technology, numerous

processes no longer need to be done manually. Hotels should begin with the areas where digitalization enables savings without

compromising on quality (Mosedale, 2018, p. 17) Digitalization in the hotel industry with regard to employees is administered out of

necessity, and has less to do with upcoming change in line with change management. The challenge of digitalization is not “the

necessity of a skills shortage”, but rather the challenge of the increasing complexity of providing the guests with a service.

Services to the guest in the hotel and catering industry is essentially a 1:1 relationship according to the mathematical formula; i.e. a

guest is looked after by an employee for a limited period of time. The development of automation since the 1990s led to an increasing

“fractionalization” and therefore to an increase in service mentality by the employee towards the guest.

This trend or this focus on using computerized applications tried to establish a service not dependent on specific individuals via

customer relation management. This inevitably led to a conglomeration of data and endless data records. Provocative – the first step to

viewing “Big Data” as “nonsense”. Today’s employee is used to being able to manage and direct the process themselves as a

42
consumer and then have the information available if this is specifically requested. This is why the management of guests by handing

out information in line with self-governing control and management is itself the unstoppable trend, which in turn gives the employee

the freedom to be able to receive the guest in a more target-oriented way and therefore follow his learned 1:1 relationship.

Important: As a management tool, this is independent of the generation question and of the hotel category. The employee gets a

greater responsibility in the control and management of the guest through the use of interactive tools, such as guest service systems

(e.g., Code2Order, SuitePad, etc.), with the integrated GLITCH function for the interactive communication of guest requests to the

hotel. These systems are mainly used to point out substantial deficiencies in the room through image and text explanations, and

therefore communicate the information to building services more quickly and in a more targeted way.

2.2.3.2 Digitalization as a challenge for hotel marketing

The hotel industry tends to designate technical developments in the field of communication through the internet or even digitalization

as a marketing tool. When the internet was introduced in 1996, the question from the point of view of the hotel industry, was how

many brochures this would cut down on. At that time, my answer was the same as it is today to the question of saving paper in the

field of

guest information systems. None! Not in the next 10 years! The hotelier is caught in his linear operational process and does not

recognize that the introduction of new media shows savings models, but guests do not change their own behaviour overnight.

As a result, even the current implementation of digitalization and the potential cost savings will only be obvious after a second look.

The incorporation of digitalization into the company model, on the other hand, exemplifies revenue growth through cross selling and

upselling. In practice, this works in specific instances, but it is not a guarantee of greater sales. In the sphere of marketing,

43
digitalization has thus far been viewed as a “online marketing toolbox” (BMWFJ, 2017, p. 3ff). This is a strategy for addressing the

issue of digitization.

Finally, this is a well-known digital marketing strategy that seeks for a link between a hotel and many visitors. The one-dimensional

connection between the hotel and its visitors is controlled and managed through this relationship. Today's digitalization presents a

transformational challenge. In other words, various units, and sub-units (here, indicating hotel sectors) are exposed to a diverse range

of customers with varying tastes. Hoteliers are aware of the situation and have addressed it in terms of category and service intensity

as measured by the number of workers.

Staff are no longer accessible for operational supervision and control of guests, therefore "outsourcing of services to the guest" is

unavoidable, which the guest will also deem "simple and convenient."

In fact, this means that in the future, guests will take over more of the hotelier's normal services. These are the well-known booking

processes through the hotelier's own booking structures as well as those of the service provider, referred to as a "channel manager" or

"online travel agency" (OTA). This will be supplemented by a new process in which the guest checks in, opens the doors using

regulated means, and issues and pays an individualized invoice on his own device. 'Bring your own gadget' will be the rallying cry

(BYOD). This exceptional procedure of action at reception will appeal to the guest, and they will gladly employ it. The hotelier will

have to pass on responsibility for this procedure to the guest and enable it to be only partially supervised and managed by a member of

staff as a result of this process. The investment in a brand, in a hotel, will be the convenience indicated here. This "guest experience"

will be viewed by the guests as a "digital guest experience" as well as a "investment in the sense of adding value" to the hotel brand. A

person's identity is developed.

44
This increased value is explained as follows: Customer satisfaction is a matter of opinion. The cognitive, emotional, sensuous,

physical, and spiritual dimensions of consumer experience are the five levels of experience. Customer experience, in contrast to

traditional 4Ps marketing, is based on what is experienced at the many points of added value in a hotel, referred to as the "guest

journey."

These interfaces' stimulation as customer points of interaction are known as brand touch points (see also Gentile et al., 2007, p. 397).

The production of additional value in these interfaces as a customer experience of the "personal and subjective experience of

consuming" is how marketing in the hotel business, and hence value generation, takes place (Bruhn & Hadwich, 2012, p. 9). On the

internet, "customer experience" and hence subjective evaluation of a service has already been created on "customer review sites." The

hotel sector must distinguish between "review" and "experience" in this case. However, the crucial path is recognized, and this is then

compared to other service businesses. They must contrast these experiences with those of other industries that provide guest journeys

and are changing customers' perceptions and behaviour.

2.2.3.3 Challenges in the course of Digitalization in tourism Industry in India

Although digitalization is a winning leap for the industry as well as stakeholders, it is yet to provide the necessary boost to the

industry. Whatever lags appear are due to the fact that digitalization has not been properly exploited by the tourism industry. There are

various challenges that the industry is facing in its course of digitalization. First is the issue of how much to digitalize. Digitalization

is a process of change and change has always been avoided, especially in India. Even when computers arrived, people protested

against it because of fear of losing the job. Thus, determining the extent of digitalization in tourism industry is one key concern for the

45
policymakers. Lack of technical knowledge among the users is one of the most common challenges. Those who don’t have knowledge

about using the technology still depend upon the classical booking method. Non availability of required infrastructure is another major

issue the country. As per ANI (2019), there is a place called Jhalpi para village in Balrampur district of Chhattisgarh which received

electric supply for the first time since independence. At such places, it is impossible to think of computers or internet. Genuity of

claims made by stakeholder is one of the concerns impacting the process of digitalization. In order to attract visitors, stakeholders

make various claims which might not be true and post fake reviews. Also, to defame the competitors, such tactics may be used. This

amounts to customer being cheated. Lack of Funds has been a barrier to innovation for long. Digitalization costs and it costs a lot. Not

everyone in the industry could afford to digitalize. So, this negatively affects those who are outside the system like small hotels,

eateries, guides etc. Concerns such as risks of personal data theft have arisen in due course of digitalization. Recent cases of data leaks

have raised questions about the seriousness of the firms towards the privacy of their customers.

2.3 Empirical Review

An empirical review is merely a discussion of other researchers' research on your issue or research that is like yours. To their

conclusions or statements, the names of several researchers must be linked. The systematic literature review, also known as an

empirical literature review, evaluates previous empirical studies in order to answer a research issue.

46
2.3.1 Introduction

The tourist industry is evolving. What used to be a business controlled by human connections, messaging strategy, and marketing

places and vacation packages is evolving to a business where corporations have individual relationships with each customer. At the

same time, the biggest tourism and travel companies are gaining ground, not because of new competition, but because consumers are

influencing each other's travel decisions more directly and often through digitalised social contact. Trends and traveler decisions are

already emerging from digital networks of consumer-to-consumer and consumer-to-business contacts, and these networks generate

their own distinct types of value.

2.3.2. Developing digital technology in the hospitality and Tourism industry.

Bezvesilnaya et al wrote a research which was tittled ‘Digital technology development in tourism and hospitality industry’. This

research was conducted in Russia and It focused on the economic and legal implications of the development of digital technology in

the tourist and hospitality industries. For the research, the authors used abstract-logical procedures, induction, deduction, analysis,

synthesis, and systematization as the methodology. The goal was to substantiate methods to tourist and hospitality sector development,

as well as graphical approaches to assess trends, levels, and variations of digital systems in the tourism and hospitality business. The

economic and legal elements of digital technology development in the tourist and hospitality business were the focus of this essay.

According to the findings of the study, there is a long-term need to define a unique legal position for robots, such that the most

complex autonomous robots are classified as electronic persons, capable of making independent decisions or communicating

47
autonomously with third parties. At the conclusion of the study, digital

technologies have emerged as a dominant force capable of drastically altering the tourist and hospitality industries. The technologies

aided in the emergence of a new digital economy by removing spatial time and limitations. Employees' roles in the tourism business

vary substantially in this regard, and these employees become very innovative persons. It should be noted that the tourist and

hospitality industry's online development should be carried out as follows: conversion of traditional communication techniques to an

online platform, allowing for the implementation of traditional schemes on a new digital platform. In addition, public relations in the

tourist and hospitality industry's digital environment, as well as its unique qualities, should be considered in the regulatory context.

The Russian legislative system permits the use of soft law, in which the main tools of the existing regulatory model are self-regulatory

norms, allowing for the creation of a unique type of regulation.

2.3.3. Transformation problems in the tourism industry in the digital economy

A research was conducted by Svetlana Bozhuk, Natalya Pletneva, Tatiana Maslova and Konstantin Evdokimov on the topic,

‘Problems of transformation in the tourism industry in the digital economy’. This research was done in was Russia. The authors

employed Quantitative research method, where an online survey of 100 consumers aged 18-35 was conducted. Respondents were

asked about their favorite travel apps, intended benefits, and customer satisfaction with a particular service. Satisfaction was measured

using measures such as trust, readiness to pay for content, and the search for new applications.

48
The work's empirical foundation was research data from Google, PayPal, and Booking.com, which allowed for the analysis of tourists'

Internet behavior and the identification of the main travel trends for 2019, and the data sources were reports and analytical pieces. The

goal of this project is to determine the impact of digital technology on the change of the tourism industry's marketing environment.

The purpose of this article is to examine contemporary tourist sector conditions from the perspective of customer behavior. The

consumer is treated as a genuine contributor to the construction of a tourist product in this work. The project's goal is to determine the

impact of digital technologies on tourist decision-making. The objectives are to examine the health of the digital tourism infrastructure,

classify available services in order to identify unfilled niches, and determine consumer attitudes about various types of travel apps and

their role in travel planning.

The writers considered the classification of tourism based on the manner of organization into organized and unorganized tourism

while considering the subject of study. The authors' research concludes that consumers are actively using applications while looking

for new, more convenient, or profitable solutions, based on recommendations from their immediate environment and online reviews.

When it comes to travel apps, the most requested features are free and informative content, as well as an easy-to-use layout.

There were no significant dependencies discovered during the research. Unorganized tourist studies, as well as the characteristics of

their trip design choices, should be investigated further. There are no significant links between the fact of independent travel planning

and socio-demographic characteristics of respondents

49
It was determined that digital technology has greatly altered tourist infrastructure, resulting in tourism becoming a popular leisure

activity. Many consumers consider travel applications to be an essential element of their vacation planning and execution. The

abundance of choices on the market shows that there are no clear favorites among consumers. The quest for ways to build digital

solutions for unorganized passengers should be prioritized, according to the authors. After determining the significance of new

features and the length of time spent using the program, the study concluded.

2.3.4. The impact of technological amenities on Customer experience in upscale hotels

Ana Carina Freire Margarido conducted a research on the topic ‘The impact of technological amenities on Customer experience in

upscale hotels’. This study employed a two-step approach. In the qualitative phase an analysis of Portuguese upscale hotel websites

was made as well as two interviews with hotel managers. In the quantitative stage a questionnaire was developed for hotel guests,

generating a sample of 310 valid responses.

The results revealed that Internet access was the most important technology for both leisure and business travellers. This research was

conducted in Portugal

Movies on Demand, in-room TV in the bathroom, alarm clock, TV-speakers/music in WC, iHome: with iPod & radio, fixed &

portable telephones, mini bar, LCD television, coffee/tea making facilities, in-room electronic safe, cable/satellite channels, 24 hour

net center, hair dryer, Wi-Fi access in public areas, air condition Guests evaluated these technologies as having a high level of

importance and satisfaction. As a result, they want to use them during their hotel stay. Hoteliers should keep these technologies with

50
high performance because these technologies have the function of increasing guest satisfaction and enhancing customer experience

(According to Ana Carina Freire Margarido)

Free in-room HSIA, free HSIA in public areas, in-room tablet or iPad, virtual concierge, and the application for check-in, choice of

specific room, and check-out were viewed by respondents as the most crucial technology to enhance their experience in relation to the

study's second key purpose. Self-service check-in and check-out kiosks in the lobby, mobile phone access to guest room locks, in-

room interactive mirror wall, in-room interactive table touch screen, and in-room Xbox 360 were all rated highly by respondents.

Assisting with the kinect sensor as one of the five least critical technology features to improve the overall experience. Because some

of these technologies are not widely used in either households or hotels, customers may not consider them to be a top priority for a

hotel at this time. Obtaining access and assistance when distributing questionnaires in the hotel lobby was one of the study's

constraints.

2.3.5. Digital Transformation in tourism sector

‘Digital transformation in the tourism sector’ is a research work conducted by Chatzisavva Panagiota (2017). The researcher employed

a mixed-method approach, with questionnaires and interviews to hotel guests and hotel managers respectively. The results of the study

indicated that indeed technology has changed the tourist sector, and especially the hospitality industry, since the research was

conducted to hotel managers and guests.

51
More specifically, the findings of this study revealed that booking systems, social media, and online reviews facilitate better

interaction between tourist businesses and consumers, facilitate marketing and increased exposure on behalf of the business, improve

service quality and provide customized services to customers through customer insight provided by feedback, and increase the

negotiable value of the business. As a result, the tourism industry, particularly the hospitality industry, is projected to rely extensively

on technology in the next years. However, more research into other tourist enterprises and their visitors is required to determine the

influence of technology and digitization on the entire tourism industry

Table 2. Emperical review table.

TOPIC AUTHOR PURPOSE DESCRIPTION OUTCOME

52
 TOPIC AUTHOR PURPOSE DESCRIPTION OUTCOME

Digital technology Bezvesilnaya et to analyze the level The authors It is necessary to establish a long-term legal

development in tourism al.2020 and trends of conducted the position for robots, such that the most complex

and hospitality industry variation of digital research using autonomous robots are characterized by the

systems in tourism abstract-logical status of electronic persons, who are

and hospitality procedures, responsible for their acts and can make

industry. induction, independent decisions or communicate

deduction, analysis, autonomously with other parties.

synthesis, and

systematization.

53
 TOPIC AUTHOR PURPOSE DESCRIPTION OUTCOME

Problems of Svetlana The purpose of the The authors applied The online survey conducted by the authors

transformation in the Bozhuk, Natalya work is to identify an online survey of shows that consumers are actively using

tourism industry in the Pletneva, Tatiana the impact of digital 100 consumers applications, while they are searching for new,

digital economy Maslova and technology on the aged 18-35. more convenient, or profitable options, based

Konstantin transformation of on the advice of the immediate environment

Evdokimov the marketing and reviews on the Internet.

environment of the
(2020)
tourism industry.

54
 TOPIC AUTHOR PURPOSE DESCRIPTION OUTCOME

The impact of Ana Carina The purpose of this The Author In-room wireless Internet, air conditioning,

technological amenities Freire Margarido study is to analyze employed a two- Wi-Fi access in public areas, cable/satellite

on Customer 2015 the impact of step approach in channels, and LCD television are the top five

experience in upscale current conducting the most crucial technology for guests, according

hotels technologies and to research, that is; to the findings.

assess the potential both qualitative and

The most significant technologies to enhance
of the latest quantitative
their experience were free in-room HSIA, free
technologies on approach
HSIA in public areas, in-room tablet or iPad,
customer
virtual concierge, and the application for
experience.
check-in, choice of specific room, and check-

out, according to respondents.

Chatzisavva The purpose of this The author used a Since the research was done among hotel

Panagiota 2017 research is to mixed method managers and guests, the results of the study
Digital Transformation
examine the impact approach, with have demonstrated that technology has
in tourism sector
of technology upon questionnaires and revolutionized the tourist sector, particularly

55
TOPIC AUTHOR PURPOSE DESCRIPTION OUTCOME

tourism sector. interviews to hotel the hospitality industry.

guests and hotel

managers

respectively

2.4 Conceptual Framework of Digitalization In The Hospitality Industry

New Technologies

ie; kisk, GET, in-room technology,

digital check-in and check-out,
access control card

Guest experience Digitalization

Guest satisfaction

56
 Guest Repeat visits

Fig 2.1

Source: Researchers own construct (2021)

A diagram demonstrates the researcher's misunderstanding of the research problem under consideration in this part. Digitalization in

the hotel business, as depicted in the diagram above, comprises the use of new technology to ensure client pleasure and encourage

return visits in order for the industry to generate more income and advertise itself.

2.4.1 Independent variable

The New Technology, Guest experience, Guest satisfaction and Guest repeat visits are the independent variables since they have the

capacity to influence another variable to elicite a response desirable or otherwise

2.4.2 Dependent variable

The dependent variable which is Digitalization in he hospitality and tourism industry is assumed to be the direct or end product of the

independent variables mentioned earlier. This relationship is a direct one and has been suggested by conceptual, theoretical and

empirical findings

57
 CHAPTER THREE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

3.0 Introduction

A review of the essay's findings over time, a conclusion based on the identified challenges coming from our research, and possible

solutions to help solve the revealed research problems comprise the study's conclusion section.

3.1 Summary of Findings

3.1.1 The state of Digitalization

By reviewing all of the definitions, elements, views, dimensions, and models presented in the growing body of literature, three

common critical areas on a company's digital strategy roadmap may be identified: go-to-market, engagement, operations, and

organizational issues (Bowersox, Closs, & Drayer, 2005; Wade, 2017). Furthermore, the author emphasizes that regardless of the

model or strategy used by firms to digitally transform their organizations, there are ten dimensions that a firm must focus and address

under the above-mentioned key areas, and that can be used as the basis in the process of formulating needs, gap identification, and

formulation of digi-solutions.i.e. Offering, Channels, Customers, Partners, Workforce, Processes, IT Capability, Structure, Incentive

and Culture. Furthermore, firms must integrate and accompany digital business agility (Wade et al., 2017) together with the ten

58
aspects of digital transformation outlined above in order to grow in the digital vortex and avoid digital Darwinism. Hyperawareness,

educated decision making, and quick execution are three continuous, interrelated, and mutually reinforcing qualities of digital business

agility.

Digital transformation is a highly dynamic and urgent feature that firms must focus in the development of their strategies. As a result,

the author emphasizes the importance of future work on incorporating digital transformation in corporate strategy and innovative

business models, which can assist to mitigate the impact of the digital vortex.

From the research that is done, it can be identified that digitalization can help to automate repetitive tasks. It also helps to simplify

processes. Thanks to modern technology, numerous processes no longer need to be done manually

3.1.2 Challenges of Digitalization

At the end of the research, it was identified that there are various challenges that the industry is facing in its course of digitalization.

First is the issue of how much to digitalize, thus, determining the extent of digitalization in tourism industry is one key concern for the

policymakers.

Secondly, lack of technical knowledge among the users is one of the most common challenges. Those who don’t have knowledge

about using the technology still depend upon the classical booking method. Also, Non availability of required infrastructure is another

major issue the country.

59
3.1.3 The impacts of Digitalization

Digitalization has so many impacts on both the tourist, the planning authorities, the Travel agencies, Hoteliers, Restaurant owners and

Transport Sector. Through this study, it was identified that Digitalization offers substantial benefits by providing an effective and

efficient means of communication thereby increasing the competitiveness. Digitalization offers benefit in the form of reduction in

costs of information exchange; speedy transfer and retrieval of information; enhancing customer involvement in decision making

process and changing the way marketing mix was used in the industry. The application of digitalization provides much needed

flexibility in the system with respect to utilization of resources. This leads to economic benefits in terms of lower cost and higher

profitability

3.2 Conclusion

Due to the revolutionary impact of advanced digital technologies on offering outstanding customer interaction or discovering ways for

organizations to benefit from efficient processes, digital transformation has gotten a lot of attention from corporate sector practitioners

as well as academics today (Rassool et al., 2019). With the rise of new technologies, as well as dynamic markets and customers, all

sectors are attempting to exploit and uncover more “tech-benefits” through business model innovation, reengine ering of products,

processes, and organizational structures, among other things (Jurgielewicz, 2019).

60
We are all part of a generation of independent travelers who plan, book, and handle trip excursions or tickets using online travel

agencies, or OTAs, in this digital age. Independent travel agents and traditional travel agencies are on their way out. While digital

transformation has forced 90% of travel agencies and tour firms out of business, those who survive must embrace digitization in order

to stay competitive.

3.2. Recommendation

a) Cost reduction through the use of new technologies

To better serve clients, businesses might employ cutting-edge technology, such as virtual reality, to attract new business. Digital

revolution has flooded the whole travel ecology, resulting in a tremendous increase in competition. When huge players are available

online just a touch away from a customer's smartphone, traditional travel companies cannot survive in the present internet age without

digitalization. Hotels should begin with the areas where digitalization enables savings without compromising on quality (Mosedale,

2018, p. 17)

b) Gaining competitive advantage over competitors through digital technology

According to the World Tourism Organization, the number of international visitor visits increased by 3% to 4% this year, compared to

1526 million in 2017. The travel industry now generates $ 1.3 billion in global income. As a result, travel agents must embrace digital

61
change in order to compete in the market. Moving to digital will be a vital component in achieving future traveller expectations,

especially given the parallel increase in travel demand.

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