Information
Technology and its Effects on Hotel Operations
Information Technology usually affects
almost every industry, and the hotel business is no exception. Research shows
that the blooming hospitality industry is a great contributor to the economies
of both developing and developed countries. In addition, with the introduction
of IT, the hospitality industry has been strengthened more than ever, revolutionizing
the industry with innovative technologies. Most of the hotel managers across
the globe are acknowledging the fact that the use of internet tends to provide
an alternative to hotel bookings. Many of the managers agree that engagement in
online promotions plays a crucial and vital role in creating awareness and
interest among guests. This allows hotel companies to gain a competitive edge globally
and increase their profit margins (Yang, 2015). Most guests get to know of
their hotels at the comfort of their homes and can even make their preferences
known. The use of IT in hospitality industry helps speed up hotel operations and
makes the travelling experience an increasingly enjoyable one. This report
endeavors to investigate the effect that information technology has on hotel
operations.
Background
Information
Technology has helped the hotel
industry to replace the costly human labor with automated processes. This
reduces costs associated with labor, as well as helps the hotels to avoid
issues linked to customer services. The internet is deemed as a powerful tool
for marketing the services offered by hotels. Research shows that the first
experience that a client has with a hotel business is through one’s visit to
the company (hotel’s) website. This is by viewing reviews and pictures from
previous customers. Therefore, it is important for companies to successfully make
use of online advertising, online purchases, blogs and social media. This helps
hotel enterprises to convince potential clients to use their services. In
addition, hotels should use computer systems, which allow customers to have an
easier access to relevant information. This allows the guests to have a good
experience.
Some of the things that are contained in
the computer system include; housekeeping information, reservations and guest
requests. Hospitality industry is deemed as a sectored system of both production
and innovation. Research shows that technology has played a vital role in the
achievement of economic growth in the region (Schejter & Tirosh, 2015). It
has opened up the industry to allow its players compete globally as more people
get to know of the services offered. IT assists in reaching out to more people.
This is through garnering means for clients to travel across the world. Therefore,
the escalation and contribution of air travelling has enabled more tourists to
visit different tourist attraction sites across the world. Both businesses and
clients may benefit from advances in information technology, guest service
systems as well as reservation systems. Research shows that the greatest impact
of information technology in the hotel industry is felt during marketing. The
impact is later transitioned to the front desk. This is because IT has
increased the speed of services offered, reduced the costs of labor, as well as
modernized the flow and look of the hotel lobby.
The introduction of mobile
technologies has impacted the entire hospitality industry. This is due to the
fact that it has enabled clients to view and to choose the different tourism
and travel options available. This is achieved by surfing through the internet
by use of their cell phones. Hotels can use information technology with the
intention of attracting potential customers. This is due to the fact that information
technology is unlocking a wide range of opportunities in all aspects. This is
achieved by boosting the hotel’s internal efficiency and improving client
satisfaction.
Ways
in which IT Affects the Hotel Operations
Reservation Systems
First, IT impacts hotel operations
through the reservations systems. This is because one can book hotel rooms for
others through the company’s booking facility that is available online. This
allows easy access to both travel professionals and consumers (Neelam, 2018). Research
shows that these systems allow individuals to compare different prices and make
reservations online. As a result, most of the well-renown companies have both
day and night chat boxes that tend to increase the number of direct bookings on
the company websites. This gives the hotel industry the opportunity to serve a
lot of clients globally.
Mobile Communication
IT allows mobile communication
between the client and the hotel in order to ensure that the clients updated of
the various changes. Most of the hospitality businesses tend to use mobile
communication in a number of ways (Neelam, 2018). For instance, they usually
send delay notices, sponsor advertising that is location-based as well as offer
deals to clients. However, depending on the specific kind of business, client
reach may be increased via text messaging, GPS tagging or emails. In addition,
many of the travelers usually take some kind of mobile communication devices
with them including mobile phones, computers or tables. This makes it easy for
these firms to communicate with customers.
Room Technology
IT also impacts on in-room
technology. Presently, many travelers carry various electronic devices. As a
result, wireless internet connectivity tends to rank first on the list as part
of their needs. Therefore, it is important to install internet connectivity in
the hotel rooms. This means that guests may use the web application belonging
to the hotel with the intention of accessing the various room option services through
e-dining or online internet sites. They can also access room services through
the use of interactive services that usually find nearby shopping stops or
transportation for them.
Specific
Areas that are Impacted by Information Technology
Organization and
Administration
First,
it affects organization and administration of the hotels. Research shows that
despite the fact that computers have played a crucial role in hotel businesses
since their adoption, the use of information technology has brought about
numerous benefits to the organization of hotels. For instance, data may be
stored in a faster manner compared to the past. This is as a result of better
software and high-speed hardware. In addition, some of the current enterprise-level
software permits many of the travel agencies to specialize in programs that are
dedicated completely in the management of their businesses. This software also
helps the travel companies to organize data as well as process the information
accordingly. As a result, agencies are able to run their hotel operations in a
more efficient and effective manner (Pavlik & Shawn, 2015). This prevents capacity
losses as a result of input tasks and other forms of tedious responsibilities.
Coordination
Secondly,
IT improves coordination in the hotels. Research shows that an improvement in
communications technology has significantly widened the methods in which travel
agencies may communicate with business connections, clients, sponsors and
partner services. In addition, having high-speed internet allows instant text
communication and video communication across the globe (Entre Technology
Services, 2019). These methods are generally less expensive compared to use of
cell-phones. Moreover, data may be sent in a matter of seconds from travel
agencies to hotels, airlines or other firms that are linked to the travel
agency. This is important because it allows coordination and bookings that
could have taken days or hours to be processed. In the process, it reduces the
loss of productivity and wait time within a company.
Self-Service
Bookings
IT
helps hotels to offer self-service bookings to their clients. One of the greatest
impacts of information technology on hotels has been an increase in e-bookings
and online bookings. This is due to the fact that clients who wish to book
trips in various parts of the world need not visit any of the travel agencies. This
is because they can go online and visit different hotel companies and make
their reservations. The internet has helped customers to access crucial
information about their travel destinations and hotels. This allows them to
make informed choices. For instance, they obtain data that explains the
stipulated check in as well as checkout times (Soeg, 2017). It also provides
relevant information pertaining amenities and facilities on offer, hotel rates
and any other pertinent information that tends to allow guests to make
important decisions about their stay in a particular hotel. The hotel industry
has tried to capitalize on the use of information technology that permits clients
to make bookings and look for the best hotels offering accommodation.
Reputation
through Reviews
Another
important way through which information technology has revolutionized hotel
operations is by building an organization’s online reputation. Therefore, it is
imperative for companies to engage in reputation management (Soeg, 2017).
Research shows that most individuals who try to book hotels online use reviews.
In addition, half of the potential customers would not book any of the hotels
if they contain no customer review. This is because majority of the
contemporary clientele is tech savvy who rely on online reviews as well as take
recommendations from other travelers. Due to this fact, most of the hotels are
often investing in the enhancement of their social media presence. This is
achieved by hiring notable individuals such as social media influencers,
advocates and ambassadors. They play a vital role in ensuring the hotel
receives reviews and respond to questions that may come along. This only shows
how important information technology is to the hotel industry.
Enhance
Guest Experience
Another
way through which IT is impacting on the hotel operations is by enhancing guest
experience within the hotels. This gives a chance to hotels to win the clients
loyalty though making them in charge of their online payments and hotel
checkouts. Some of the well-known hotels across the globe also give customers
the chance of unlocking their rooms through the use of smart phones. This tends
to eliminate the tedious processes of checking in in hotels. Moreover, it
allows guests to easily check out of their rooms, which allows them to avoid
the long lines at the reception.
Social
Media as a Means of Communication in the Hotel Industry
Social
media is an increasingly important communication platform for many of the
tourism marketers. Social media marketing refers to the process of gaining
exposure and attention for a brand or business by using different sites (Obar
& Wildman, 2015). This particular promotional activity may take numerous forms
such as sharing or posting videos or photos, paid ads or linking individuals to
external content or websites. Many of the hotels are highly reliant on
communication with tourists via different channels. This is done with the intention
of building customer relationships and marketing their products and services
(Baggio et al., 2014). In the recent years, social media has grown to be an
effective tool for tourists to obtain information as well as share some of
their travelling experiences. Companies use a wide range of marketing channels
to promote their products. Some of the social media platforms used by hotels
include Instagram, LinkedIn, Twitter and Facebook. It is particularly important
because such platforms provide hotels with the perfect way of engaging with new
and existing customers. Questions pertaining the services offered can be
addressed. In addition, many of the social media sites usually have what is
commonly referred to as analytics tools (Constantinides,
2014). These tools allow most of the hotel owners to monitor customer
engagement. Moreover, social networks often entail crucial components for promotion
of hotels. Some of the components include ability of inviting users to hotel
events and tracking customer reviews.
Social
Media Strategies
There
are various ways through which hotels can market their products through the use
of social media. First, hotels should outline their social media strategies. Experts
claim that the first major step of successful marketing trough social media is
establishing a strategy along with some of the guidelines and best practices
associated with it. At this stage, one can also identify some of the potential
targets of the hotels in terms of the audience demographics that the organization
wants to reach. It is also important to identify various social media
influencers that one would like to win over.
Measurable
Objectives
Secondly,
hotels should set specific and measurable objectives or goals. This helps in
ensuring that everyone involved in the marketing strategy knows the purpose of
marketing via social media. As a result, it will keep persons involved
motivated throughout the process.
Optimize
on Social Media
Thirdly,
it is important for hotels to optimize their social media pages. This means
that the hotels should outline their corporate information on the social media
sites. They should also ensure that the hotel’s location information is
available to clients. The social media content must also be organized in a
chronological and logical manner (Revfine Optimizing Revenue, 2019). Moreover, one
must use high-quality images of the organization logo and upload as many photos
of the hotel as possible.
Consistency
Another
important way through which hotels can make use of social media is being as
consistent as possible with the content being uploaded. They should adopt a
consistent approach to posting new content. They should also take advantage of social
media paid advertising. This is because; such platforms generate expenditure
without necessary incurring any sort of income. Some of the advantages of
social media marketing include: ability of advertising to particular
demographics, obtaining built-in targeting features as well as the potential
reach of high number of individuals.
Social
media marketing by hotels also allows them to engage with their audience. This
entails taking time in responding to their questions and conversing with them
in a polite manner. It is important to engage in conversations with those
people who leave comments on the hotel’s post. This can be achieved by using
hashtags with the intention of keeping conversations regarding particular
topics in a single place (Diehl et al., 2016). This helps one to easily keep
track of such messages, and makes it easy for clients to search and follow the
content posted. Moreover, hotels should avoid posting too much content as part
of their social media marketing strategy. According to recent studies conducted
by experts, the maximum number of posts on a business’s Facebook page is around
7 posts in a week. There should be a maximum of two posts in a day. However,
one can continue responding to the audience’s questions and comments.
Reasons
Why Information Technology has been Under-Utilized in the Hotel Industry
Research
shows that information technology has been under-utilized in both hospitality
and tourism industry due to various reasons. For instance, a huge part of the
hospitality industry is subjected to competitive disadvantage. This results in
expansion and growth of multinational corporations that tend to have both the
financial backing and resources for investing in information technology. In addition,
there has been an increase in the number of technology oriented organizations
that would replace some of the members of the hotel industry, hence gain
competitive advantage over them.
In
conclusion, it is evident that for hotel companies to gain a competitive edge
they should make use of information technology. They will be in a position to
reach out to an unlimited number of potential clients around the world. There
are numerous ways through which IT is used in hotel operations. For instance,
customers use IT to book for accommodations in hotels. They are able to visit
the company websites and check for crucial information that enables them to
make informed decisions. This includes check in and check out times, prices as
well as the services offered by the different hotels. In addition, the use of information
technology has helped hotels to enhanced customer experience. For instance, some
of the hotels allow their clients to unlock the rooms allocated to them through
the use smartphones. This eliminates the need for them to go through long lines
at the reception. This is an implication that IT enhances customer experience
thereby enabling hotels to serve their clients better. Hotels also use social
media as a marketing tool. It allows customers to read reviews given by others
who had previously visited the hotel. Generally, IT has completely changed the
manner in which hotels operate. It has streamlined the operations, by
automating some of the processes. This has tremendously cut down the cost of
labor.
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