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Impact of Digital Technology in Hospitality Sector | Hilton Hotel Study

1139 Downloads1 I Published: 16 Nov ,2019

Chapter 1: Introduction

In today’s competitive world technologies plays a crucial role within the growth as well as success of any organisation as it have a huge impact over the choices of customer. Digital technology brings up several opportunities as well as threat for businesses in each sector. It contribute toward increasing the customer base or organisation approach and on other side it provide several threat such as higher competition, process or technique obsolete etc.

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1.1 Background of research:-

Hospitality sector is consider as one of the fastest growing and most competitive sector around the world in which daily a new business starts that bring up a unique method to serve its customer and make them happy. This create huge competition in front of other existing players and place a challenge for them to bring something more better service for offering them at marketplace. This is just because of increasing the approach of digital revolution which constantly endeavour toward enhancing the quality of goods, services, infrastructure and other offers with an aim to fulfil the requirement of digital age above the expectation of customers (Saxena and Lamest, 2018). So, in order to meet these expectations players of hotel industry are using digital technology for proving its customer augmented services which are beyond their expectation to keep them happy and present tough competition in front of others to grab one another market share.

The present report is about the impact of modern technology over the operations and management as well as success of Hilton hotel by providing several growth opportunity. Hilton Worldwide Holding Inc. is an American multinational company which manages a chain of hotels throughout the world in order to provide best services to its customers. Fuelled of technology and internet power is continuously encouraging customers to expect more in term of hospitality industry and for coping with these challenges hotels are continuously innovating their services among which Hilton is also leading between them. Hilton hotels perform majority of its operations digitally which are ranging from online reservation to security purpose all the functions are performed with the help of digital technology (Tichaawa, Mhlanga and Sicwebu, 2017). Main aim behind this is to simplifying the life of its customers by providing them more convenient and quick services access that leads to maximum customer satisfaction. In addition to this modern technology also in providing several mediums through which Hilton hotel can target potential customer and approach them with their services to attract them.

1.2 Aims & Objectives

Aims: To explore the importance of digital technologies within hospitality sector. A case study on Hilton Hotel

Objectives

  • To understand the importance of digital technologies in hospitality sector
  • To analyse the impact of modern technology in Hilton Hotel.
  • To examine the challenges that faced by Hilton while implementing modern process
  • To recommend measures to improve technological implicate for future.

Research Questions

  • What are the importance of digital technologies in hospitality sector?
  • What are the impact of modern technology in Hilton Hotel?
  • What are the challenges that faced by Hilton while implementing modern process
  • What are the measures to improve technological implicate for future.

1.3 Rationale of research

Main aim behind conducting this research is to determine the impact which digital technology have over the hospitality sector and ways in which it help industry in further development. This research help in gathering information regarding the changes that digital technology bring within the operations performed within the hospitality industry and ways in which digital technology help in attracting and influencing the choice of customers. By conducting this investigation researcher will be able to determine the role of digital technology within the success of Hilton. In addition to this, research will also help in identifying the several challenges that a business have to face while adopting digital technology or modern process. By collecting this information it become easier for the company to determine several measure that help in rectifying these issues.

This research when used for academicals purpose help reader in increasing their knowledge regarding the digital technology and role it plays within the success as well as development of a business plan. Further it also help in developing an understanding regarding the several challenges that are required to be faced by a business while performing their operations in digital world.

1.4 Approach and Methodology:-

In order to conduct this research there are number of techniques that has been used by researcher in order to perform this investigation in systematic and reliable manner. This includes, inductive approach, qualitative method, pragmatist philosophy etc. which support in conducting investigation in ethical manner.

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1.5 Chapter Preview:-

The research work must be presented in systematic manner so that it become easier for reader to understand the data and conclude it in way researcher want to present. For present research, investigator will follow the structure which is explained below:

Chapter 1: Introduction

The research work will first begin with the introduction chapter which describe about the overview of topic or filed of study. In addition to this, section also includes aim and objective behind performing research. Apart from this it also includes the rational;e of research that describe about the benefit which investigator will get after performing research.

Chapter 2: Literature review

This is the second chapter of research that provide information about importance of digital technology. This section includes the information from several article, books or journal which included data regarding the investigation that has previously being searched by some another person over similar topic.

Chapter 3: Research Methodology

This section consist of several tools and technique which a research will use while conducting this research and collecting data so that valid outcomes can be extract.

Chapter 4: Data analysis and Interpretation

Within this section the collected information or data would be analysed on the light of research questions or hypothesis. It also provide information related to findings which guide researcher to present the outcome of investigation in appropriate format that help reader in understanding the nature of study.

Chapter 5: Recommendation and Suggestions

This chapter focuses toward providing the recommendation to over come the issues that a company is facing and for that research has been conducted. In addition to this, section is also consists of reflection in which researcher explain in detail about its finding, development or issues that has been faced by them while conducting research.

Chapter 6: Conclusion

This is the last chapter of research which consists of a description about what has been performed throughout the research and findings of this investigation to present the outcome of these efforts.

Chapter 2: Literature Review

It refers to the type of scholarly paper where the information collected by several authors critically evaluated with an aim to extract some knowledge about particular topic which can be further used to explore about similar topic.

The importance of digital technologies in hospitality sector

As per the view point of Martin Zsarnoczky (2019), Digitalisation is consider as one of the most important part of rapid evolving world. This digital transformation has now become the engine of development as well as innovation which shows its impact everywhere such as ICT, manufacturing or other service industries. It plays an essential role in simplifying the life or travel of tourist by providing them a medium to communicate with various hospitality reacted business in order to make their travelling experience more comfortable or stress free. Apart from this digital technology plays an essential role in improving the services offered by hotels by providing them a medium to digitalise their operations which is less time consuming and economic. In addition to this digital technology also provided a medium through which a hotels can secure their confidential information using cloud computing or backup capabilities. Apart from this digitalisation also support hospitality sector to remain competitive toward the transformations that take place in demand of customer so that maximum satisfaction can be provided to them.

According to Ahmad and Schreyer (2016), with the social and economic development the rush of people toward tourism is increasing day by day. The result of which customer are becoming more demanding and ready to pay any amount for availing the services that support in exchanging their travel and accommodation related experience. So, in order to cope up with these changing demand or expectation of customers’ digital technology integration in business operations is very essential. Digitalisation in hospitality industry support its player to approach larger number of customer using internet and attract them the quality services by interacting with them and providing them a chance to book services as per their convenience while planning for travel.

The impact of modern technology in Hilton Hotel

According to the Lloyd and Payne (2016), traditional brick and mortar companies are moving toward adopting the self-service technology with an aim to improve its service offering and for gaining customer loyalty. This is mainly experienced in hospitality sector where customer expectation toward having positive experience of their travel journey is high, technology become a medium for hotels like Hilton to overcome this challenges by improving their quality as well as reach of services more convenient. Digital technology has provide Hilton hotel an opportunity to provide services to its customer as per their expectation. Hilton provide customised services to its customer where they can visit its official site in view the services hotel offers and choose the one which is according to their budget and requirement. Hence digital technology provide several benefit to Hilton hotel such as web access of services to customer that plays an essential role in attracting them to avail services and enhancing the market share of hotel.

As per the view point ofPapathanassis, Katsios and Dinu (2018), Digital technology plays an essential role within the growth and success of Hilton hotel by enhancing its services quality as well as by simplifying its service offering process. It provide several benefits such as relevance which suggest customers the location which will be more suitable for them. In addition to this digital technology implementation has also improve its security system which support it in enhancing the trust of customers toward hotel. The digital technology which improve the security system of Hilton includes security camera, fire detector, keyless room entry and many more which is also one of the main reason behind the customer traffic toward Hilton hotel. Apart from premises security which hotel provide to its target market, data security is also being enhanced with the help of digital technology. With the help of digital authentication in term of cloud computing, firewall etc., hotel keep the confidential and personal data of its customers secure from the threat of hack or misuse by storing it over more authenticated manner under several security threat which reduces that chance of mal-practices. This also help in keeping customer free from the fear of data stolen or hacking that may be misused by some another person.

The challenges that faced by Hilton while implementing modern process.

As per the view point of Holdsworth and Apeh (2017)Digital technology bring up several challenges along with the growth opportunity which may affect the functionality as well as sustainability of business. With the increase in environmental trend regarding digitalisation of business operations, Hilton also move toward implementing the modern technology in order to enhance its service quality. But apart from this there are numerous of challenges that are faced by Hilton while implementing digital technology. This includes a risk of security, as making business information available over internet also brings up the risk of data hacked by competitors or misused for the negative publicity of company. Another major challenge faced by Hilton while implementing digital technology is that employees have inadequate knowledge regarding the use of digital technology that have an huge impact over the way in which operations performed. Therefore, it is very essential for a company to provide proper guidance to its employees before moving toward digitalisation of operations so that functions can be performed much effectively without compromising over the quality as well as goodwill of business.

On the other side as per the view point of Ruthven (2017), digital technology plays an essential role in minimising the distance among nations at global level by providing a medium to communicate and interact with one another without worrying about geographical distance. It also work toward improving the operational standard of businesses by providing them an opportunity to target and interact with customer using internet. But not any benefit come up with an addition risk, hence digital technology is also some of opportunities as well as challenges that companies usually face while performing its operations digitally. There are various challenges that rare usually faced by Hilton while implementing modern technology. It includes employee pushback, lack of expertise availability to maintain the standards of service over digital performance as physically, rigid organisational structure which hinder changes and many more. These challenges affect the operation performance as well as goodwill of company if not managed properly.

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Chapter 3: Research Methodology

Research methodology is very essential part of a research which focuses toward systematic and theoretical analysis of methods that will be applied to field of study. Some elements that are present in research are explained below:

Research Approach: -It refer to the plan or procedure that contains a step of broad assumption in order to detail about method used for data collection, analysis as well as interpretation. Research approach are of two types i.e. deductive and inductive approach (Mackey and Gass, 2015). Deductive approach refers to the process of creating hypotheses as per existing theory and then forming research strategy for testing those hypothesis. Inductive approach focuses toward forming up a new theory emerging from the data by using some research question in narrow down the study scope. In this research inductive approach will be used which is also based on qualitative method of data collection.

ResearchPhilosophy: - It refers to the way in which information or data about a particular phenomenon will be gathered to conduct the research effectively so that proper outcome could be extract (Flick, 2015). Research philosophy is of two type such as positivism and interpretivist. Positivism beliefs that reality can be observed and then describe as per the objective view point without interfering with the set phenomena. It provide information in precise manner but on the other side Interpretivist interpret the element of study by considering the interest of human being. In order to conduct this research interpretivst philosophy will be used which help researcher to interpret the data collected through population so the possible outcome of research can bring.

ResearchDesign: - This section describe about the method which is used for data collection and its analysis. Research design is of two type i.e. conclusive and exploratory. In this research exploratory research design will be used as it help research in exploring the research question so that outcomes can be conclude toward the accomplishment for research objective.

Datacollection: - It refers to the process which is used to gather information regarding the particular area of study. There are two type of data collection method i.e. primary or secondary. Primary refer to the collection of data which is fresh and not yet been gathered previously and on the other side secondary data refers to the information which is previously collected by some another person and now used by researcher for creating understanding toward similar research topic (Neuman and Robson, 2014). In this research both primary and secondary data collection method will be used where primary data will be collected using questionnaire and secondary data will be collected through literature review where information extracted through journals, article etc.

DataAnalysis: - Once the data related to research topic has been gathered next step is to evaluate that in order to bring out the result of investigation. Analysis can be performed using two methods qualitative and quantitative. Qualitative analysis of data is done with the help of thematic approach and this method doesn’t involve any type of numerical data. On the other side quantitative analysis is performed using statistical technique such as mean, mode and medium. In order to conduct this research qualitative method will be used.

Sampling: - It refers to the process of selecting group of people by investigator with an aim to collect information regarding the research topic. Sampling methods are of two type such as probability and non-probability sampling. In order to conduct this research effective and gather adequate data probability sampling will be used where 40 respondent will be taken who are the employees in Hilton hotel.

Ethicalconsideration: - This section state that a researcher must consider several ethical norms while conducting research. It must be polite while collecting data from respondents and should not harm their dignity throughout investigation process. In addition to this investigator must use collected data only for the purpose it has been gather and use not use for personal interest within the permission of people involved in research (Bresler and Stake, 2017). Research must also provide adequate information about the research as should not manipulate information for its own interest.

Q1. Are you aware about the concept of digital technology?

A) Yes

B) No

Q2. What kind of impact modern technology implementation have over Hilton Hotel?

A) Increasing customer base

B) Enhanced service quality

C) Better customer satisfaction

Q3. What are the challenges that Hilton hotel faced while implementing modern process?

A) Risk of security

B) Inadequate knowledge

C) Employee pushback

Q4. Do you think adoption of digital technology will lead to business growth of Hilton hotel?

A) Yes

B) No

Q5. According to your perception, is services of hospitality industry requires modification?

A) Yes

B) No

Q6. In what ways Hilton can increase customer satisfaction by using digital technology?

A) Taking feedback

B) Providing customised services

C) Additional discount on online booking

Q7. As per your view which customer group mostly uses services of Hilton hotel?

A) Youngsters

B) Business group

C) Family

Q8. Recommend measures to improve technological implicate for future?

Chapter 4: Data Analysis And Interpretation

Data analysis refers to the process of evaluating, transforming and then modelling the data with an aim of extracting useful information so that it can be used to form of conclusion of research. In order to conduct data analysis thematic approach has been used under this research.

Theme 1:- Concept of digital technology

Q1.Are you aware about the concept of digital technology?

Frequency

A) Yes

35

B) No

5

Interpretation:- From the above given graph it can be interpret that there are around 35 respondent among 40 respondents who are familiar with the concept of digital technology and also use it in order to simplify their day to day operations. On the other side only 5 respondents are their who don't have much knowledge about the concept of digitalisation.

Theme 2:- Impact modern technology implementation over Hilton Hotel

Q2. What kind of impact modern technology implementation have over Hilton Hotel?

Frequency

A) Increasing customer base

20

B) Enhanced service quality

10

C) Better customer satisfaction

10

Interpretation:- As per the above given graph it can be interpret that around 20 respondents out of 40 beliefs that digital technology help Hilton hotel in increasing its customer base. But only 10 respondent said that it help hotel in improving its service quality at marketplace. Apart from all these 10 respondent state that digital technology implementation will help Hilton hotel in achieving better customer satisfaction.

Theme 3: Challenges that Hilton hotel faced while implementing modern process

Q3. What are the challenges that Hilton hotel faced while implementing modern process?

Frequency

A) Risk of security

10

B) Inadequate knowledge

20

C) Employee pushback

10

Interpretation:- From the above presented graph it can be state that there are numerous of challenges that are faced by Hilton hotel while implementing modern process. There are around 10 out of 40 respondent said that major challenge in front of hotel is risk of security. But 10 respondents said that employees pushback is major challenge and some changes are very harder to involve in regular operation as it take lots of efforts and dedication to learn them. But around 20 out of 40 respondent said that major risk to hotel while implementing modern technology is inadequate knowledge among customer which may leads to failure at marketplace.

Theme 4: Adoption of digital technology will lead to business growth of Hilton hotel

Q4. Do you think adoption of digital technology will lead to business growth of Hilton hotel?

Frequency

A) Yes

30

B) No

10

Interpretation:- As per the above given graph it can interpret that around 30 out of 40 respondent belief that digital technology will leads to business growth of Hilton hotel as it open up several business opportunity. But apart from this 10 respondents state that digital technology doesn't lead to business success as it also brings up several threat or challenges that may affect the current image of company.

Theme 5: Services of hospitality industry requires modification

Q5. According to your perception, is services of hospitality industry requires modification?

Frequency

A) Yes

30

B) No

10

Interpretation:- From the above given graph it can be state that around 30 out of 40 respondents are agree with the fact that hospitality industry is required to modify its services in order to improve customer experience. On the other side 10 respondent state that hospitality industry is performing so well in term of its operations and services it deliver, therefore it doesn't require any modification.

Theme 6: Ways in which Hilton can increase customer satisfaction by using digital technology

Q6. In what ways Hilton can increase customer satisfaction by using digital technology?

Frequency

A) Taking feedback

5

B) Providing customised services

30

C) Additional discount on online booking

5

Interpretation:- From the above given graph it can be said hat there are number of ways in which Hilton can increase its customer satisfaction. Around 5 respondents out of 40 state that Hilton can improve its customer base by taking feedback from its customers regarding the improvement in services. Apart from this around 30 respondent state that Hilton must focuses toward providing customised services to it customer over internet as per their demand or need to get maximum satisfaction. But apart from all these 5 out of 40 respondents state that Hilton can offer additional discount over online booking.

Theme 7: Customer group mostly uses services of Hilton hotel

Q7. As per your view which customer group mostly uses services of Hilton hotel?

Frequency

A) Youngsters

15

B) Business group

5

C) Family

20

Interpretation:- From the above given graph it can be interpret that around 15 respondents out of 40 said that services offered by Hilton is availed by youngster group. In addition to this 5 respondents state that services of this hotel is most preferred by business group. But around 20 respondents says that family group are the mostly visited customers who prefer to avail services offered by Hilton.

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Chapter 5: Recommendations & Suggestions

From the above conducted research it has been assumed that digital technology brings up several threats for a hospitality business along with growth and development opportunity. Hilton hotel also faces number of challenges while performing their operations digitally which includes risk of security in term of data hack, inadequate knowledge of employees and difference in the standard of services among online & offline services due to lack of interaction with customers. So, in order to cope up with these challenges following recommendation can be consider by Hilton hotel:

  • Hilton must work over improving its security system by adding more authentication for assessing the data such as cloud computing for keeping data stored over server that reduce the risk of data lost. In addition to this Hilton can also use data encryption method in order to keep its data sharing process more authenticated which also reduces the risk of hacking.
  • Hilton hotel must also focuses toward improving the skills as well as knowledge of customers by providing them regular training for using online service providing system. This help in minimising the errors that may happen due to lack of knowledge as well as contribute toward achieving maximum customer satisfaction.
  • Hilton must also focuses toward improving the standard of its online services by maintain a regular interaction with customer who are availing online services. For this management can contact to the customer regarding their visit when booking is done using internet.

Reflection and suggestion for further work

While performing this research I have learnt several things as well skill which support me in future course of action. From this research I have experience that digital technology plays a crucial role toward improving the service offering as well as providing a convenient way for customer service access. This research support me in gathering information regarding hospitality industry and how its influence the customer choice regrading particular service. In addition this I also came to know about various challenges that Hilton is facing by performing its operations using digital technology. This information can be further used by some another person to expand this topic as this research provide more authenticated information which support company in finding ways to overcome their challenges. While conducting this research I also being able to learn about several research technique or methods such as primary and secondary data collection, research philosophy, qualitative and quantitative research method etc.

Apart from this, I feel glad that I get an opportunity to perform this research which support me in improving my analytical, communication, decision making, presentation and management skill throughout this investigation. While performing investigation I faced various challenges like the budget provided for research is very tight which affected the way we operate investigation. In addition to this some of the respondent are not clear about the information they provided but despite of all these I have tried my best to collect more accurate and reliable information in order to conduct this research in ethical manner. Apart from this my team member was very supportive that help in achieving the aims and objective of research.

Chapter 6: Conclusion

From the above conducted research it has been identified that digital technology plays a significant role toward the growth as well as success of hospitality sector by simplifying the way in which services are referred to customers. There are number of opportunities which digital technology provide to a business such as market expansion, maximum customer satisfaction, improve standard of services etc. This research is conducted by gathering information using primary and secondary data collection method. In addition to this questionnaire is also used in this investigation for setting up the criteria to collect information in more reliable manner and to collect this data 40 respondents are used. For sorting out information data analysing and interpretation has been used that support in presenting the information which will help in accomplishing the goals and objective behind this investigation.

References

Books and Journals

  • Ahmad, N. and Schreyer, P., 2016. Measuring GDP in a digitalised economy.
  • Bresler, L. and Stake, R.E., 2017. Qualitative research methodology in music education. InCritical Essays in Music Education(pp. 113-128). Routledge.
  • Flick, U., 2015.Introducing research methodology: A beginner's guide to doing a research project. Sage.
  • Holdsworth, J. and Apeh, E., 2017, September. An effective immersive cyber security awareness learning platform for businesses in the hospitality sector. In2017 IEEE 25th International Requirements Engineering Conference Workshops (REW)(pp. 111-117). IEEE.
  • Lloyd, C. and Payne, J., 2016.Skills in the age of over-qualification: Comparing service sector work in Europe. Oxford University Press.
  • Mackey, A. and Gass, S.M., 2015.Second language research: Methodology and design. Routledge.
  • Neuman, W.L. and Robson, K., 2014.Basics of social research. Toronto: Pearson Canada.
  • Papathanassis, A., Katsios, S. and Dinu, N.R. eds., 2018.Yellow Tourism: Crime and Corruption in the Holiday Sector. Springer.
  • Ruthven, P., 2017. The futurist: Robots, employment and the digital era.Company Director.33(3). p.24.
  • Saxena, D. and Lamest, M., 2018. Information overload and coping strategies in the big data context: Evidence from the hospitality sector.Journal of Information Science.44(3). pp.287-297.
  • Tichaawa, T.M., Mhlanga, O. and Sicwebu, S., 2017. The impact of information communication technologies (ICTs) on tourism businesses in East London, South Africa.Acta Universitatis Danubius. Œconomica.13(3).
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