Hilton’s Response to the Pandemic
Background Information
With the influence of the pandemic, visitor behaviour, priorities and concerns were quickly altered. In order to reassure guests, Hilton replied with the start-up-style speed that comes with a century of customer service experience under its belt. Digital transformation necessitates a radical rethink of corporate culture, strategy, operational structure, and even external collaboration, so businesses must be ready for rapid transition and severe competition. As a consequence of this, another researcher believes that digital transformation has a favourable impact on performance outcomes because of the learning environment, shared vision, and enhancement of external network collaboration (John and Thakur, 2021). Risk-taking is becoming increasingly common in firms that have undergone a digital transformation to obtain a higher edge. According to some, the fast rise of digital technology and the enormous quantity of data acquired each day are leading organisations to dramatically restructure the corporate structure through which they produce appropriate value. In addition to breaking with conventional upfront government strategic development, it has been suggested that digital strategy building displays a new level of spontaneous strategy making. There is no end in sight to the company’s digital transformation strategy. Hotels should take advantage of the present circumstances to improve their internal processes and assess new technology that might help them acquire a long-term competitive edge.
Hilton isn’t letting the Coronavirus epidemic get the best of it, since the hotel sector has been particularly badly impacted. New Memories, is the hotel brand’s marketing effort that communicates with customers through television, internet platforms, and social media. The ad encourages people who are unable to leave their homes to plan holidays again, which will help to satisfy the rising demand for leisure travel in the United States. The majority of people (63 percent) said they travel to create new memories with the people they care about the most, according to a recent Hilton poll (Young et.al., 2021). These consumer preferences will be reflected in Hilton’s upcoming advertising depicting family reunions at different Hilton properties. A series of advertisements highlighting the building of cherished moments, such as weddings, family reunions, and beach getaways will air during the Christmas season by Hilton. This might encourage families to book vacations together, especially at Hilton resorts and hotels (Linxi, 2021).
Even in the direst of economic circumstances, hotels are certain to see a drop in income and a reduction in spending in many areas. However, as demand begins to rise, it’s important to invest wisely. Modern hoteliers should place a high value on digital solutions that improve efficiency and productivity, save expenses over the long term, and create new income.
Investing in Digital Solutions
Because of the current coronavirus outbreak, hotels would be advised to maintain open lines of contact with their customers. When they are treated decently, they will recall the hotel and its service in the most positive light imaginable (Viglia et.al., 2021). This is the moment for hotels to examine new solutions that might help them recover from such a crisis as this and take advantage of the “catch-up” impact that follows. The long-term benefits of obtaining new advantages over the competitors are undeniable.
Theoretically, this sounds great, but how can hotel chains and other suppliers of hospitality services make this happen? For visitors to use digital services and apps while staying at a hotel, the facilities must be well-connected on-site (Irtamieh et.al., 2021). Not to mention cloud-based software, enterprise applications with AI, and other software services; the worldwide network of the accommodation provider must be well-connected with all of these, as well as with prospective guests’ and users’ Internet access networks. As with on-site facilities, guests expect the same high level of convenience and comfort while using a hotel’s digital services. Customers’ hotel experiences will start in the networks of the hospitality provider, not at the entrance of the hotel, where data centers and connectivity platforms are now being employed. Customers’ digital journeys must be controlled by a hospitality operator to provide the best possible results, and this includes management over connections and interconnectivity (Orrensalo and Nikou, 2021).
Companies like Hilton are providing cutting-edge, digitalized hospitality services, particularly those with a worldwide reach, must now take ownership of the digital infrastructure that transports their data. Performance, data analysis (to better understand their clients’ business and personal requirements), and ultimately, to build their digital content – to increase their corporate value as well as create new income streams via digital services – are the three primary reasons for this. When the technological infrastructure is controlled, these goals cannot be met and accomplished (Viglia et.al., 2021).
Each of the world’s largest hotel chains has properties throughout the globe, which necessitates that each site is linked to both local and global networks. Customers’ applications and on-site IoT deployments will work smoothly as a result of this, as well visitors’ access to high-performance internet. A wide variety of local online services will be available for visitors, and each site will be connected to the rest of the globe in an ideal way for global business efforts like marketing. Since hotel guests may come from all over the world, hotels need to be able to offer their virtual hotel experience wherever the user is (Berdud et.al., 2021). When a hotel’s customer researches their next vacation, the poor connection will not encourage a purchase decision in their favour. The earliest that leisure tourists may hope for is a return to pre-pandemic levels in 2023. For many hotels like Hilton, recovery might be slower and more unequal when it comes to corporate visitors.
Controlling the Digital Infrastructure
Furthermore, the hotel business was already evolving before the epidemic. Traditional hotels were experiencing more competition than ever amid Airbnb and the growth of non-traditional event venues. Travelers of the future are demanding that the sector are becoming more environmentally friendly, digital, and focused on the region (Orrensalo and Nikou, 2021). As a result of the epidemic, their innovation engine has seen a tenfold increase in efficiency in the past year. Their hotel teams throughout the globe are happy to greet our customers once again, sharing the brightness and warmth of our hospitality with them once again as individuals continue to travel again freely. “Hilton is adopting digital technological devices to both interact and better understand its consumers to better meet the needs of the post-pandemic traveller.
Problem Statement
In order to determine the problem while analysing the Competitive advantages of Digitalising Hilton Hotel Procedures during the covid 19 pandemic, it has been found that with the impact or influence of the COVID-19 outbreak, the global economy is in a slump, and the hotel business is facing some serious challenges. There are many external threats to Hilton’s operations, which is confirmed by a poor financial and business environment analysis. Even though Hilton has a digital plan in place, a more data-driven digital transformation strategy is needed (John and Thakur, 2021). As a result, recommendations for Hilton’s digitalization approach are made. The hotel industry was able to create good strategic decisions with a thorough comprehension of digital transformation plan measures. Other hotels may use these findings as a reference in dealing with COVID-19 problems.
These last several weeks and months, Covid-19 has had a significant impact on our personal life as well. Additionally, the transmission of the coronavirus has a significant influence on a broad range of businesses. As a result of no-shows and no-shows, the hotel and tourist industries are feeling the pinch. The present epidemic threatens up to 50 million employees worldwide.
Purpose of the Research
The purpose of this research is to analyse the competitiveness of Digitalising Hilton Hotel Procedures during the covid 19 pandemic with the implications of the number of opinions of different authors and individuals regarding how the Hilton was able to create a competitive advantage and how the digitalisation impacted the Hilton hotel chains.
Significance of the Research
The main reason for conducting this research is to analyse the different aspects of the competitive edge of Digitalising Hilton Hotel Procedures during the covid 19 pandemic. Accordingly, Employees are better equipped to deal with today’s safety and social challenges thanks to the digitalization of employee communications (Falótico and Pérez, 2021). Using digital training videos, and sending out surveys and quizzes, safety tips and reminders, and informative updates in real-time, operators are preparing all teams for the work at hand and in today’s new normal promptly and efficiently.
Challenges Faced by Traditional Hotels
To keep morale up and emphasise the necessity of following safety requirements, digitalizing staff interactions is a good idea. Workers’ ability to communicate and uphold operational safety messages has been improved because of technological advancements (Young et.al., 2021).
Research Aims and Objectives
In order to conduct this research, it is important to create some main research aims and objectives that need to be accomplished in the form of a literature review and the opinions of different authors about the research Topic. So, some of the main research objectives are mentioned below:
(a) To analyse the different aspects of competitive edge of Digitalising in relation to Hotel Industry.
(b) To determine the impact of Covid-19 on Hilton Hotel Procedures and their transformation towards digitalisation process.
(c) To evaluate the ability or innovative approaches adopted by Hilton to create a competitive advantage.
Research Questions
In order to conduct this research, it is important to create some main research questions that needs to be addressed in the form of literature review and the opinions of different authors in relation to the research Topic. So, some of the main research questions are mentioned below:
(1) What are the different aspects of competitive edge of Digitalising in relation to Hotel Industry?
(2) How does Covid-19 have impacted the Hilton Hotel Procedures and their transformation towards digitalisation process?
(3) How the Hilton was able to create a competitive advantage with the implication of the different innovative approaches?
In this section, the major focus is to be drawn on the number of the opinions provided by the different authors and investigators based on their research and information based upon the research title of An Evaluation into the competitive advantage of Digitalising Hotel procedures during COVID-19 pandemic (A case study of Hilton Hotel, United Kingdom). And this can be done in the form of literature view with the analysis different research aspects on the basis of the research topic we have used to conduct this research.
It is advantageous for a hotel (or any other business) to be able to create long-term surplus returns. The term “excess returns” refers to profits that are more than the cost of building and operating the hotel. Hoteliers who do not have a competitive edge in the market will see their profits fall as other investors perceive the option to invest in a nearby hotel as well.
The market will probably flatten out as a result of more competition, and constructing a hotel in such a competitive environment would be counterproductive. We can imagine this occurring in every business, in any location. Many coffee houses can’t all be successful if they’re located on the same street (Serbulova et.al., 2020). It’s unlikely that any more will be lucrative. Hotels are no exception to the rule of producers and consumers. Building a barrier to entry that prevents other hotels from entering your market is another way to conceive about a hotel’s competitive advantage. A moat is another name for this structure. If they are successful in creating a moat, we can keep new entrants to the market out and secure our surplus returns from competitive erosion.
Recommendations for Digitalization Approach
We all know how important first-party data is when it comes to building stronger customer connections and achieving better business outcomes. This confidential information is collected directly from customers with their agreement. As more and more organisations quit utilising third-party cookies to monitor website visitors, this data will become more and more crucial for digital marketing success (Linxi, 2021).
There is little doubt that the food and beverage sector, which accounts for more than a third of the hotel industry’s total revenue, is a major contributor to its success. A hotel’s on-site restaurant may improve the visitor experience by providing exceptional cuisine and top-notch customer service, for example.
Within the industry, there are many tiers of service. Because they depend on self-service, quick-service businesses have fewer personnel than bigger full-service establishments. Fast-food and takeout restaurants, for example, prefer to recruit lower-skilled workers because they can get them for less money, whereas fine-dining restaurant chains need to hire individuals with more expertise.
More than half of digital transformation projects fail. Several factors contribute to the failure of digital transitions, but one is a lack of concentration. As a result of Proctor & Gamble’s failed digital transformation, concentration is essential for hotels who want to undertake their own digital transformation journey, too (Le et.al., 2021).
As recently as 2012, P&G aimed to become “the most digital corporation on the globe.” You may think that this is a rather far-reaching aim; in fact, it was. A lack of focus resulted in broad-based projects with no clear direction. Personal discussions were the purpose of P&G’s first strategy of “anywhere, anytime shopping” and the company’s desire to avoid marketing. Unsurprisingly, the outcome was disappointing for such a lofty ambition. Because of the downturn in the economy, P&G’s digital transformation went awry; the CEO was forced to quit and the firm was forced to re-evaluate its strategy.
P&G might have gained some ground on its rivals by investing more strategically in digital. If a digital endeavour doesn’t suit the company’s strategy and isn’t “hardwired to value,” P&G won’t take a look at it (García, 2021).
What are we supposed to take out from this? Hotels should break down their digital transformation into smaller, more manageable tasks that are clearly linked to a business goal. It is in the best interest of hotel brands to outsource their technology needs to the best-in-class providers. Comprehensive and integrated approach, by definition, necessitates the integration of new technology with existing procedures and personnel. Rather of attempting to enhance all aspects of a property at once, hotels should concentrate on one area at a time.
Problem Statement
The food and beverage firms that come to that are another option. Any special event may be catered to, from weddings and conferences to buffets and a la carte. These companies are more likely to be small and independent than the large chain stores that may be found in permanent sites (Le and Phi, 2021).
In addition, the digitalization may bring about major changes in the current environment. Adapting competitive rules and regulations to both online and offline marketing strategies is critical in the digital age if we are to foster innovation, technological diffusion, and productivity. Regulations that impede new entrants or unintentionally favour established businesses should be re-examined immediately. Regulatory review priorities vary by country, but often include transportation and logistics, lodging, banking, health, and platforms and other related services. Principles for conducting regulatory evaluations and keeping up with the fast digitalization have been proposed by a group of experts (Schulze, 2021).
Competition is fundamental in the corporate sector. In order to ascend to the top, firms must discover what customers want and create methods to make it happen quickly and easily. Investing in customer satisfaction leads to a rise in brand loyalty, which in turn leads to higher in income for businesses.
This trait is particularly relevant to the hotel sector, as you would expect. Hotel visitors are searching for a location where they feel secure, comfortable, and able to access the amenities they are used to in their everyday life, and hotels are racing to achieve this goal.
With the rise of a digital-first mindset among tourists, internet has become an integral factor in determining which hotel has the upper hand. Hotels can increase income, improve visitor satisfaction, and simplify operations by employing the appropriate technology. Keeping up with technology innovations is essential for hotels in order to keep up with customer expectations.
Most hotel customers arrive with three or more mobile devices, which makes them easy to reach. In today’s world, they are relied upon to offer knowledge and simple access to the most important aspects of their existence. It is possible for hotels to meet their clients where they’ll be engaged by using mobile technologies (Peñalvo et.al., 2021).
Based on the above discussion regarding the Different aspects of competitive edge of Digitalising in relation to Hotel Industry, it has been depicted that there is no doubt in this that the influence of covid-19 on Hilton Hotel procedures has impacted their business value and forced them to transform their operations into digitalisation process in order to ensure success and to gain the satisfaction of the consumers regarding the same (Irtamieh et.al., 2021). Accordingly, Full return to pre-pandemic levels for leisure tourists isn’t predicted until at least 2023. Business travellers, the lifeblood of many hotels, may see a greater uneven and delayed recovery.
Purpose of the Research
Hospitality was already evolving even before the flu outbreak. Traditional hotels were experiencing more competitiveness than ever in the midst of Airbnb and the growth of non-traditional meeting rooms. There were new tourists who wanted the business to be more ecological, digital and localised. Hilton is adopting digital technologies in order to fully understand and engage its clients in the wake of the recent epidemic.
Event managers and conferences, another area that has seen huge change since the financial crisis, provide a big amount of Hilton’s income. Covid-19 (Sestino et.al., 2020). Attendees will be able to select whether or not to participate in an event in-person or online in the near future. Hilton has built a new set of solutions to support this new strategy, including high-speed broadband, cameras, and the other necessary technology.
Artificial intelligence, robots, virtual reality, the Internet of Things, and fifth-generation wireless communications are all part of the fourth industrial revolution now underway. The hotel business has seen a major transformation over this time period and will continue to do so in the future. This digital change has been expedited by the current Covid-19 epidemic, which has resulted in a wider innovation experience for customers. In this article, we’ll take a look at three cutting-edge technologies now being used in the hotel industry and show how they may revolutionise management and advertising in the industry, as well as the consumer experience.
Service robots support front-line workers in a series of service engagements. They can help welcome visitors, handle baggage, direct guests, and even provide room service with the help of robot concierges (Wade and Shan, 2020). Pre-programmed artificial intelligence (AI) and machine learning algorithms allow service robots to reply and engage with visitors, even in several languages, successfully.
In spite of the fact that robots contribute significantly to operational efficiency, there are nevertheless certain problems. In the hotel industry, service robots are still a fresh concept. In terms of their capacity to deal with unexpected and unpredictable situations, there is still a lot to learn. Service robots may not reply if visitors do not follow the predetermined path, resulting in a service failure. Many hospitality firms, such as restaurants, airports and theme parks need to carefully examine which business process step is most suited for automation and to build appropriate service recovery methods in the event of robot service failures.
Customers feel that virtual reality simulations are the greatest way for hotel operators to create a memorable client experience, according to research. Virtual reality (VR) has been more popular in the hotel business over the last several years. In the booking stage, VR may make a tremendous impact because of the intangible aspects of hospitality. Consumers are able to have a better feel of what they may anticipate from a digitally adapted workplace, which in turn attracts more potential customers (Alenezi, 2020). The virtual tour video is an example of a VR application that provides visitors with a first-person experience of the property. Guests may take a virtual tour of a hotel’s rooms by donning a headset or using a mouse and keyboard to navigate the virtual space. In addition to giving clients a taste of what they might expect before making a purchase, this lets the hotel industry take use of the “try before you buy” marketing approach.
In contrast to virtual reality, augmented reality (AR) focuses on augmenting the real-world environment and allowing users to interact with their surroundings in a more immersive way. Digital components are added to a live representation of reality using the technologies, which is accessible through smartphones. As a consequence, augmented reality (AR) is a powerful tool for improving the interior experiences of hotel guests.
A dramatic drop in hotel occupancy was a result of the pandemic’s commencement, and Hilton had a number of mainly unoccupied hotels. As a result, the business teamed up with American Express to give first responders and health professionals for up to one million room nights at its hotels. Employees who were laid off by Hilton have access to technology and an alumni portal with learning opportunities and career tools to assist them find new employment (Li et.al., 2021). Through the Hilton Workforce Resource Centre, it collaborated with hundreds of organisations who were looking to hire, giving its workers the opportunity to work either temporarily or permanently. Since there’s no denying it: The hotel business has had its share of crises, from times of recession to terrorism to natural catastrophes, but nothing has rocked it as much as the COVID-19 epidemic.
International crossings have been blocked, planes have been grounded, and social distancing measures have been implemented, and hotels have been left, vacant, to cope with a torrent of cancellation and a monetary quandary. Travel has come to a stop. Emerging developments in hospitality industry are being addressed by hoteliers as they make choices regarding layoffs and closures.
Despite the fact that Hilton currently has a digital plan in place, it still needs to develop a more comprehensive data-driven digital transformation strategy. As a result, recommendations for Hilton’s digital transformation approach are made. The hotel industry was able to create good strategic decisions with a thorough comprehension of digital transformation plan measures. For other hotels, these findings may serve as a roadmap for dealing with COIVD-19 concerns.
Hotel chains like Hilton, although implementing certain digital transformation strategies, have more work to do before they can really function in a systematic and comprehensive manner. Using Hilton as a case study, the researcher analyses the hotel’s corporate strategy in relation to a new crown pandemic in the industry (Kumar, 2021). Based on this study, Hilton’s post-epidemic digital strategy is examined using both mixed methodologies. In addition to breaking with conventional upfront proper strategic planning, it has been suggested that digital strategy building displays a new level of spontaneous strategy making. The digital transformation plan, in particular, is a work in progress with no end in sight.
Considering the above based discussion, it has been demonstrated by the opinions of the researchers and investigators that It is an integrated system of new ideas and smart technology that work together to expand business and reduce expenses without sacrificing quality. In the hotel sector, customer loyalty is achieved by regular stays. And Hilton HonorsTM is one of the most popular Frequent Guest Programs in the United States, with worldwide success. In order to build long-term relationships with consumers, increase customer happiness, and bring visitors to Hilton hotels throughout the globe (Purc?rea et.al., 2022).
Having over 700 sales specialists in offices throughout the globe, owners and operators can be certain that Hilton Sales will provide the combined advantages of size, access, knowledge and experience. Their sales teams are totally committed to delivering our brand portfolio with a distinctive selling platform. They want to become the industry’s most worldwide, integrated, and relevant sales force, and they will stop at nothing to increase their share of market.
The company’s worldwide sales force is frequently ranked as one of the best in the business for both dealing with customers. They serve 25,000 consumers in 101 countries from offices all around the world, and they do it in 42 different languages. As a result, they are able to grasp the nuances of different places throughout the globe, all the way down to the neighbourhood level.
To remain on top in hospitality, Global Online Services recognises the need of leading the way in digital innovation. They’re able to increase demand, optimise revenue, and establish great customer connections thanks to cutting-edge technology, worldwide size, and critical collaborations (Serbulova et.al., 2020). The end effect is that Hilton’s brands have increased their market share across the board.
In order to stay on top of the market, Hilton has to keep its internal programmes and measurements up to date in order to better match employee performance with company objectives. The cultural practises of Hilton should be utilised as a standard for other hospitality businesses. Future study could examine if Hilton’s cultural policies are consistently adopted throughout its several luxury, resort and select service brands. Employees in the hospitality industry need to be devoted to providing excellent service to visitors, just as in any other service industry (Linxi, 2021). This objective may be achieved via a company’s corporate culture. It’s important to note, however, that not all companies have the same kind of culture. Those who are in positions of leadership are distinguished from those who are not by a variety of distinguishing characteristics. Finest practises must be constantly examined and implemented in order for the company to recruit and retain the best workers and achieve exceptional job performance A company’s culture is not a fixed entity, but rather something that can be formed and developed.
Prior research shows that digital technology not only emphasises its own competency, but also continually enhances the creativity of hotel applications. Increased competition and improved economic and social advantages are achieved as a result of this. China’s economy has entered a new era, that of the digital network age. As a result, digital hotels are rapidly growing in the market, making digital hotel expansion and building plans vitally important for China’s future economic growth. Digitalization and digital transformation are important in order to convert the epidemic’s uncertainties in to the advantages, to innovate and adapt via digitalisation, and to tap into the economic value of corporate data applications (Le and Phi, 2021). Digital transformation necessitates an overhaul of business culture, strategy, operations, and even interaction with the outside world, so organisations must be prepared for quick change and fierce competition. In the opinion of another researcher, corporate digital transformation has the potential to assist improve performance outcomes by creating a culture of learning inside the organisation, uniting the firm behind a single goal, and fostering collaboration with external networks. According to one researcher, digital transformation covers both technological and conceptual customer-driven company change. In the next five years, the customer acquisition profitability will grow as a result of a successful execution of a full digital transformation. When it comes to consumer-centric digital strategy transformation, researchers choose to focus on the healthcare business as their study target. According to a multifaceted conceptual framework, a value chain, commodity shop, and value network are significant markers of digitalization (Schulze, 2021).
The key decision areas are found to be in the domains of product or service digitization and business strategy digitisation. Only by combining both of these strategies at the same time will businesses be able to keep up with the rapid growth of the digital world. For the researcher’s part, he said the capacity to digitally redesign the company is mostly dependent on top-level executives who cultivate a culture of innovation and adaptability. Risk-taking is becoming increasingly common in firms that have undergone technological change in order to gain a competitive edge (Bharwani and Mathews, 2021). Companies are being forced to dramatically restructure their business models due to the fast rise of digital technology and the enormous quantity of data they gather each day, according to the study.
The Hilton hotel brand is Hilton’s most popular and is one of the world’s biggest hotel brands. As a result, the brand has outlets throughout the globe in key cities, near airports, conference centres and renowned tourist spots. Hilton Honors, Hilton’s guest loyalty programme, is a component of Hilton Hotels & Resorts. Exclusive pricing and facilities are available to Hilton members who book directly via Hilton-owned channels, such as free Wi-Fi, digital check-in, keyless access, and the opportunity to choose particular rooms using a mobile app when booking a hotel.
Last but not least, there is the contradiction of digital convenience vs in-person experience to consider. Interaction between patrons and wait staff is highly prized in the hospitality industry, especially at fine dining establishments. In the digital age, such as with voice-activated assistants, such engagement may be reduced. Hospitality firms must thus find the right mix between digital ease and in-person encounters. Important concerns include evaluating whether services cannot be substituted by digital tools, maintaining consumer choice between digital and community health in order to maximize customer experience and incorporating interactive digital aspects into the process are all important (Le et.al., 2021).
As a result of Covid-19, many hotel practitioners have been forced to use digital technology that they would otherwise not have accepted so rapidly. It’s time for hospitality firms to embrace the digital shift taking place in the sector. They can also better match customers with the right lodging and provide better suggestions about restaurants, tourist sites, shopping, and other places of interest based on this user data (Zhu and Zhang, 2021).
Conclusion
Therefore, from the above discussion based on the digitalisation process of Hilton hotel procedures in order to overcome the influence of covid-19, it has been concluded that In the COVID-19, Hilton’s sales declined substantially, as well as the profit and shareholder’s equity, which even reached negative. On this premise, we conclude that Hilton’s current business model faces a development constraint. As a result of COVID-19, it is imperative that the enterprise’s strategic change continues. There are, in fact, transformational behaviours that may be identified in appropriate texts. In order to deliver exceptional service, Hilton now has a data system in place that tracks the preferences and habits of its guests. In today’s world, Hilton is well-versed in the use of cutting-edge technologies. Customers may now use a digital key system at Hilton, for example. An app called Digital Key has been launched by Hilton hotels to provide guests more power and flexibility while they stay at the brand’s properties, hence improving overall guest satisfaction. Keeping up with the times is critical in the hotel sector, which is always changing and needs new technology to save time and perform more effectively. As a consequence, the covid-19 will not only affect Hilton, but also pose a major threat to the whole hotel business worldwide. These findings give insight on Hilton’s strategy shift and may serve as a guide for other worldwide hotels to follow suit.
This part of the research helps researchers to comprehend and react effectively to various methods, tactics, strategies and systems in the field. In order to meet the goals of this study, researchers might use this section to obtain information from various sources and chances.
An understanding of the present research topic is a result of the research philosophy. Another benefit of using a credible research technique is helping researchers establish strategies for data collection, appraisal and implementation of their findings. Positivism, realism, and interpretivism are all forms of research philosophy that may be classified. To support statistical instruments and approaches, researchers need to know what they can rely on based on their own activities and discoveries (Budianto, 2020). On the other hand, realism believes that ideas and reality may be brought together. Additionally, the interpretivism ideology encourages researcher to gather information data from a variety of angles and viewpoints in order to have a comprehensive understanding of the issue at hand.
Interpretive philosophy was employed to make it easier for researchers and survey participants of all sorts to analyse each other’s views and ideas, which they then used to contribute input into the study by taking this philosophy into consideration. Since highly organised approaches like establishing hypotheses and conducting investigations are not necessary, this study’s research philosophy is not tied to positivist and realistic in resolving research.
Research methodologies and design are taken into consideration while selecting a research methodology for this study. This makes it possible for the data to be indicated in a systematic manner by the researcher. Research methods such as inductive and deductive approaches were examined in the study. Using this strategy, a researcher may identify which data gathering method is appropriate for a certain method. To do this, researchers must have a thorough awareness of the various study approaches (Hanington and Martin, 2019). The positivist philosophy accepts deductive procedures, whereas the interpretative philosophy accepts inductive approaches. It’s possible to construct hypotheses relating to research using the deductive technique. In order to prove or disprove the study hypothesis, the investigator must collect specified types of data. A research hypothesis is not necessary for the inductive technique, which displays its adaptability.
It has so been decided that for this study, a researcher would use a more intuitive research method known as an inductive rather than deductive approach. Researchers have improved their credibility by embracing this notion. It is possible to obtain relevant data and draw reasonable conclusions using this strategy. A logical technique, on the other hand, is not acceptable since the researcher does not provide answers to the study’s research questions.
Methodology helps the researcher reach the study’s goal. This study uses a combination of qualitative and quantitative methods to reach its goals and objectives. Both qualitative and quantitative data gathering methods were investigated for this study. Secondary research methods may assist researchers overcome the drawbacks of primary research and provide dependable and accurate results. Researchers might collect non-numerical data regarding this issue by using a qualitative research approach (Johnston, 2017). Quantitative research will make use of surveys and research papers, books, pdfs, and other materials from secondary sources. The created by the researcher’s paradigm and the sort of study he or she is attempting to undertake have a significant influence on the approach he or she uses to collect data. In order to arrive at findings on a certain issue, researchers must first decide whether to employ primary data, secondary data, or a combination of the two. As a researcher, you must address the usage of the best approach early on to prevent issues, according to the researcher. He also mentions examples of research methods that a researcher might employ: case studies, surveys, observations and interviews. Researchers have weighed in on the descriptions of research approaches and concluded that there are no excellent or poor ones. Researchers choose a method based on the specifics of the study and the issue under investigation. Qualitative and quantitative research methodologies are utilised in doing research. There are pros and downsides to both methodologies, based on what kind of research is being done and what the investigator is trying to accomplish.
Researchers use a wide range of techniques to get at their end goal: literature reviews; surveys; tests; experiments; interviews; group discussions; case studies; and more. Research shows that researchers used descriptive statistical analysis to examine the literature and opinions of prior research in order to achieve their research objectives. It also helps to critically analyse research and get solid historical or intellectual data in order to make the study more descriptive and achieve this aim. Scientists use only information from currently published literary works in this important systematic research approach. It’s the goal of the studies to collect and analyse data samples for credible study outcomes. Google Scholar, government publications, and commercial information sources will be used to gather data for this survey’s goals (Leavy, 2017). Since the typical circumstance does not permit the collecting of primary data for discussion, this is considered as research. Secondary information should be checked, validated, evaluated, and sorted before it is used. The primary goal of this study is to choose and utilise relevant publications. Survey and literature review analysis will be undertaken for this research, which plays the key contribution in this situation. This technique of learning helps students get a full and diverse grasp of a difficult subject.
According to the study’s goals, the data collection process includes acquiring information from a variety of sources. In addition, researchers are able to supply information that may be useful in assessing whether or not research is taking place. Data acquisition strategies include primary and secondary data collecting methods. Researchers may learn more about a topic thanks to the main data source. Surveys, action research, case studies, and discussion groups are all methods scientists use to obtain primary data (Melnikovas, 2018).
Additionally, companies and scholars may gather mixed technique (primary and secondary) data to meet their needs. Secondary sources may be obtained by the research fellow in order to meet the goals of the project. Additionally, secondary data recovery technology takes into account a wide range of materials, including papers, books, websites, journals, magazines, and a recent study. The researcher employed a secondary data collecting strategy to get valid research information, including the acquisition of secondary data for this investigation.
In order to gather information for this study, the researcher used survey questionnaires. The rationale for using this method has already been laid forth in the preceding paragraphs. The surveys were distributed both online and in person by the researcher. The surveys were consciously by the researcher using Google forms. We designed a questionnaire based on what we learned from our literature research and this paper, particularly in regards to hospitality sector. This was selected on because the cost is inexpensive, it covers a big population, and there is less prejudice since the respondents filled out their own questions (Rahi, 2017). An English-only version of the survey was distributed through social media, including Facebook pages, LinkedIn profiles, and What’s Up groups.
Three parts of questions were included in the questionnaire survey. Using demographic information (age, gender and employment) from the screening section (UK residents and consumers of hospitality sector), the study may get a sense of, for example, the most common age group and the occupation of the majority of individuals, among other things. Questions in the third segment were based on theories about how a pandemic affects customer purchasing decisions in the hotel business.
In order to ensure that the study issue is correct and consistent, it is necessary to analyse the data acquired. Following, discourse analytics, and/or transparency analyses are only a few of the methodologies used in the research study. It is the search engineer’s job to analyse the results and apply them qualitatively rather than rely on a methodical approach to achieve a thorough conclusion. An effective way to get information based on secondary data is via the process of content or topic analysis (Schoonenboom and Johnson, 2017). Using a qualitative method also refers to the collection of data that is relevant to the major research questions of this work. As soon as a responder provided a response, the data gathered both physically and through Google forms was used to construct tables, pie charts, and other analyses. In addition, the results of the poll were thoroughly scrutinised in light of the pre-existing research.
Using just data from a subset of the whole population, rather of all potential instances or components, the researchers in this study characterise sampling as a “technique” that allows them to “reduce the quantity of data to be gathered.” According to the study’s description, the investigator will have a comprehensive list of all of the instances in the population from which data will be taken when using probability sampling. For example, since the focus of this study is on the hotel industry’s customers, a screening question asks whether the person answering the survey is a customer of the industry (Schuurman, 2020). If not, he/she cannot participate in the survey. Consumers of the hospitality industry who had been in the UK for at least six months were the focus of this research. In order to participate in the poll, all participants had to be at least from 18 to 45 years old customer.
In order to assure the authenticity and trustworthiness of the data, the researcher identified and singled out crucial diversity elements. Every study’s foundation is built on the foundation of validity. Internal or external validity might exist at the same time. There are two types of internal manipulations: those that take place in the researcher’s head and those that take place in his or her hands. In order to draw accurate conclusions after gathering data, a researcher must guarantee that both validity and reliability have been checked. For instance, before to, during, and after data collection in this study, researchers checked necessary documentation and websites (Sileyew, 2019). The hospitality sector or particularly Hilton hotel in the United Kingdom was studied through reading a wide range of publications, journals, papers, and other materials. He or she kept in mind that only valuable study results can be obtained when they can be understood.
The relevance of ethical behaviour in research has been emphasised by a number of scholars. According to this, the researcher was aware of the ethical issues that must be taken into account when doing the study. An excellent piece of study, in the opinion of the researcher, must adhere to all applicable laws and standards. For example, researchers must guarantee that no personal information about respondents is captured and that all information acquired is anonymous while administering questionnaires (Sovacool et.al., 2018). As a result, the survey was completely voluntary and the respondent had the option of withdrawing at any time, as well as the researcher’s focus on the data’s confidentiality and its use exclusively for academic reasons. The researcher also ensured that plagiarism was avoided as much as possible by adhering to university reference guidelines. According to university standards and client confidentiality, every research effort must adhere to ethical principles in order to be considered successful. Academics are also able to do their research in a proper manner because of this. Ethical concerns may arise as a result of duplication of data, copyright infringement, and data separation in the process of obtaining diverse research sources data. Using citations and quotes in the text, the researcher ensures that each term is properly acknowledged.
As shown by the research, ethics play an essential role in increasing the study’s reliability and validity, while preserving academic standards. Additionally, there are ethical concerns such as data disintegration and hacking (Tarrant, 2017). Although these concerns must be taken into account, the investigator must make every attempt to preserve the individual’s personal information. There should be correct citations and references in each phrase to show that the material is credible and contribute to the findings. Real scientists and academics have complete faith in the researcher’s efforts to solve these issues. Additionally, the scholar has interpreted the obtained data in a clear and concise manner to prevent recurrence or resemblance. Using Internet tools such as social media platforms, the investigator was also able to connect with volunteers and assist families, communities, etc. in locating those who wanted to share their stories and opinions. Descriptive statistics and interpretive research techniques were also used by the researcher to get complete answers from participants and to ensure the correctness and reliability of the data (Turner et.al., 2017). The research’s technology and methodology should also be made clear to participants, as well as how their personal information will be protected and kept private until the study is complete. In this way, researchers are able to provide data that can be relied upon and are generally considered acceptable.
Conclusion
Based on the above discussion, the researchers might conclude that all of them are the most appropriate and viable procedures or processes for collecting and conducting the full study, as discussed in the previous section. For the study’s aims to be realised via efficient procedures and facts, the researcher has chosen the aforementioned approach, method and design. Thus, the study’s goals and challenges will be met in this way.
In order to analyze the opinions of different number of people and individuals, we have conducted a survey and the findings of the same are described below in a detailed manner with the help of each and every chart in an effective way:
The above-mentioned graph represents the participation of people to provide their opinions in the form of survey, so the data depicts that 43.3% of them are female, 50% of them are male and the remaining 6.7% of them are not willing to release their identity so they have opted for prefer not to say as an option.
The above-mentioned graph represents the different age group of people participated in this survey, so the data depicts that 46.7% of the people belongs from the age group of 18 to 25 years, 30% of the people belongs from the age group of 25 to 40 years and the remaining 20% of the people belongs from the age group of 40 to 55 years and at last, 10% of the people belongs from the age group of 55 years and above.
The above mentioned graph represents the opinions of people regarding the statement that “ does the Hospitality sector has been impacted the most during the pandemic or not”, so the data depicts that 83.3% of the people think the same, whereas on the other hand, 13.3% of the people voted for No option, as they do not think the same, and the remaining people have no idea about it, so they have voted for the Maybe option.
The above-mentioned graph demonstrates the opinion of people regarding the statement that does technology and innovation plays an important role within hospitality sector, so the data depicts that 63.3% of the people voted for Yes option and 20% of the people voted for NO option according to their opinion, and the remaining 16.7% of the people voted for Maybe option, as they are not sure about this statement.
Based on the above-mentioned graph, the data depicts that the number of Opinion of people regarding the statement that covid-19 has not only impacted the Hilton hotels of UK but also be a huge challenge for the global hotel industry, so the data demonstrate that 60% of the people agreed with the statement whereas 16.7% of the people disagreed with the statement and the remaining 23.3 percent of the people are not sure about their opinion so they opted for maybe option.
The above-mentioned data demonstrate the implication of relevant technological tools and innovative approaches used by Hilton hotels in UK to transform their operations towards digitalization, the opinion of people depicts the data that is is 23.3 percent of the people voted for AR and VR as a technological tool, 20% of the people voted for social media platforms, 16.7% of the people voted for digital marketing approach as a relevant tool for the hotel industry, at last forty percent of the people voted for all of the above options.
The above-mentioned data demonstrate the opinions of people regarding the statement that how does the hotel industry of UK can take the competitive advantage of digitalizing hotel procedures during pandemic, show the data depicts that 58.6 percent of the people voted for us as they are in favor of the statement, 17.2 percent of the people voted for no option as they think opposite of the statement and at last 24.1 percent of the people are not sure about their opinion so they have opted for maybe option.
Above-mentioned graph demonstrate the thinking of people regarding the statement that it is important for the hotel chains like Hilton to transform their business operations towards digitalization during the pandemic, the data depicts that 70% of the people voted for us as they think the same as the statement says, 7% of the people voted for no as they think of opposite the statement and at last 13.3% of the people voted for may be option as they are not sure about the statement or their opinion.
The above-mentioned data demonstrate the king and believe of people that does shaping the future of the hospitality industry helps in reducing the influence of pandemic rises or not, the data highlights that 58.6 % of the people voted for yes, 24.1 percent of the people voted for no as an option and 17.2 % of the people voted for maybe option as they are not sure about the statement and their opinion.
At last, the above-mentioned graph demonstrates the suggestions provided by the people regarding the strategies that Hilton hotel chain of UK need to adopt to gain the competitive advantage during the pandemic, data depicts that many of the people do not have any suggestion where are some of the people have some suggestion like the hotel should focus more towards consumer satisfaction and market coverage in order to ensure success in the market.
Therefore, from the above discussion based on the transformation of hospitality industry towards digitalization during the time of pandemic, especially regarding the case of Hilton hotels in UK, it has been found that Hotel cleaning and general operations may benefit greatly from digitization. There are a plethora of software businesses and manufacturers currently marketing this technology (Sodhi and Tang, 2021). Adding these enhancements to the hotel industry may have a significant impact on how well one serves their clients during and after the epidemic. There’s really no rationale not to invest in these new technologies. Here are some of the benefits of digitizing the hotel industry in order to better serve the customers.
For the hotels like Hilton, Housekeeping is one of the most difficult tasks of running a hotel. The vast occupancy makes it typical for housekeepers to spend their time cleaning and maintaining them. The usage of phone systems to coordinate amongst hotel departments is still commonplace. However, housekeepers can quickly monitor and check-in which rooms are prepared to be cleaned and what stage they’re in thanks to mobile technology.
To improve operational efficiency, hotels require a dependable system that can be utilized by hotel workers quickly and conveniently. Front desk supervisors may easily inform housekeepers of changes to a room’s condition using mobile apps, expediting the process of getting the room ready for new visitors. Bookings and reservations may be moved around more easily by the receptionist without interfering with housekeeping’s operation (Gürlek and K?l?ç, 2021). It provides a huge competitive advantage over those hotel industries which does not use the modern mob application to operate their housekeeping work especially at the time of Covid pandemic as human touch has been especially criticized which also has reduced the interaction by people and staff. Also, maintain distance is preferred as well. Hence, it would be a great competitive advantage for hotel industry.
In addition to it, Robotics are predicted to play a major role in the hospitality experience of the future. Singapore and Japan have already implemented the usage of smart robots for cleaning and welcoming visitors in different enterprises. There is a widespread fear that household chores will be replaced by robots, leading some to oppose their adoption. Human contact is still crucial in hotels; thus, this shouldn’t be the case. It is possible to deploy robots to improve hotel services and provide clients a more opulent experience (Jia et.al., 2022).
Hotel staff may also benefit from using housekeeping robots since their injury rates are among the greatest in the hotel industry. Cleaning routines that are both regular and of high quality may be made easier with the aid of robots. Even if an attendant has a lot of expertise, manual work is still susceptible to human mistake. The employment of robots in housekeeping is a great approach to streamline processes and improve efficiency. This does create a competitive advantage in the Hotel industry as stated above it is used very rarely by the hotel industry however, since the Covid-19 pandemic started many hotel businesses have started to adapt this technology where many still hesitate to accept and adapt to the change which is coming in the near future. This is the benefits of Digitizing Hotel industry which creates a huge competitive advantage (Giousmpasoglou et.al., 2021).
On the other hand, Automation in mobile applications is a typical event for airlines and airports. The smooth transition from ticketing to seats is a big hit with passengers. In order to expedite the check-in procedure at a hotel, this may also be done. One may make the most useful and secure improvements to the facility during the epidemic by using automatic check-in. With correct social separation, the infection may be prevented from spreading. Investing in check-in kiosks and room service systems may both speed up the check-in procedure. Automation is primarily concerned with streamlining and streamlining the customer experience so that it may be enjoyed by everybody. It is now possible for the staff members to devote their attention to other hotel activities without abandoning front desk tasks (Kumar, 2020).
There is still a lot of data to suggest that customers want a more customized experience. Many guests and a wider range of clients might be attracted to the hotel if one offer both options. Create a system that can remember client names from prior stays and service orders to achieve the optimal balance of customization and digitalization. That way, no one feels like they’re missing out on the hotel industry’s march to digitization.
With this method, it is possible to build an entirely customized data base. The gas may get precise suggestions for surrounding locations, localities, and restaurants according on the interests they have specified.
The largest update they can make to the hotel’s operations and guarantee that it is potential is to digitize the housekeeping. There is still a resistance to using technology to improve hotel operations, but the benefits and present circumstances point to a shift. Smart hotels may be important to reviving hotel business success during and after the worldwide pandemic.
Apart from these the hotel business has always been very aggressive, as anybody in the field will attest. Hospitality managers need to stay up with the newest technological advancements in order to succeed. Businesses that are unable to swiftly adapt to new technology stand the danger of losing ground to their competitors (Nicola et.al., 2020). ‘ This is a great chance for hotels and travel firms to enhance their clients’ experiences with the aid of new technology. There are many more benefits to using technology in the hotel sector that go beyond merely making guests’ stay more enjoyable. Using technology to replace high-cost human labor may also improve operational efficiency and cut expenses for hotel management. As a bonus, it will enhance customer service by making it easier for employees to interact and communicate with one other.
Hoteliers can take advantage of today’s “digital-first” travelers by integrating cutting-edge technology that go above and beyond their guests’ expectations. For the typical hotel visitor, three mobile devices are a need. They’re accustomed to obtaining information quickly, going to anywhere they want to go with just a click, and being the first to experience and share new things and innovations. They’re used being the first. For hotels, mobile technology is one of the most important areas to focus on to enhance their service. In order to assist company, adapt and remain relevant in the digital era, let’s have a look at some of the most popular new mobile technologies in the hospitality industry:
There are some other technological trends in hotel sectors that helps create a competitive advantage in the market, which are described below in a detailed manner
Mobile Keys and Keyless Entry- An encoded “key” on the guest’s smart phone is known as a mobile key. For authorized individuals, the mobile key provides digital access to certain locked doors in the property through a smartphone app (Sheth, 2020).
Guests may now use their mobile phones to unlock their suites’ doors without touching anything else thanks to the hotel’s mobile app, which caters to the growing demand for contactless hotel payments. As a result, they won’t have to go to the front desk to get their key. The use of digital keys has a significant impact on the visitor experience.
Additionally, visitors and employees will not have to be concerned about misplacing or replacing a lost key. Aside from saving money, this also increases the property’s safety. It is considerably more difficult for a visitor to lose their mobile phone than a key card. The “keyless entry” trend has become an essential feature of the contemporary hotel sector due to the ease and accessibility provided by mobile keys (Sigala, 2021).
Voice-Activated Guest Rooms, Alexa for Hospitality, a hospitality-focused version of Alexa, was introduced by Amazon in 2019. Alexa for Hospitality is a virtual assistant that visitors can access via a set of voice assistants to do things like order bathrobes, regulate the temperature in their rooms, turn on the TV, and more. As a virtual butler, voice recognition software can help with anything from making reservations to providing local knowledge. It is also possible to deploy speech recognition technology to aid hospitality workers. This technology should be used by the hotel sector as soon as feasible because of the numerous advantages it offers.
Branded Guest Experience Hotel Apps, Guest experience applications allow hoteliers to administer all aspects of their business, including operations, media, and advertising, from a single source. To make sure their visitors are having a good time, hotels may use their own branded apps to deliver polls to their guests at various points throughout their stay (Shukla et.al., 2022). In the event that a guest is dissatisfied with their stay, the hotel’s management may take prompt action to rectify the situation and ensure that the guest has a great experience overall.
Using a customer’s experience platform, hotel management may identify and notify guests. As a manager, one may send distinct messages to visitors who checked in on the day of their arrival or to guests who have visited the spa, for example. Personalized advertising and promotions may be offered in a variety of ways. Research from Oracle Hospitality states that 35 percent of visitors want the flexibility to schedule room cleaning and 26 percent want a notice on their phone when their room has been cleaned (Gunay and Kurtulmu?, 2021). When it comes to building connections with visitors before, throughout, and after their stay at a hotel, customer’s experience hotel applications are the best method to do just that. These insights may be used by hotel management teams to enhance the entire visitor experience.
Carry the Hotel to Mobile Phones, A hotel’s operations and amenities are typically hidden from guests’ view. In order to promote their services, hotels put pamphlets in each and every room. However, hotel management will no longer need to publish paper brochures if this knowledge is shown on mobile apps.
A single mobile branded app may now be used by hospitality workers to give information about their property. They are able to advertise their products and services to potential customers right away. For example, if a person cancels their spa appointment, other guests might be alerted of the cancellation. Upselling and promotion of special deals and upgrades may also be done using in-room tablets (Özo?ul and Baran, 2021).
Although the return on investment (ROI) is dependent on the services provided and the size of the hotel, almost every hotel that has implemented guest experience platforms has received excellent feedback from its visitors. A 300 percent average return on investment may be expected from each given transaction.
Staff Apps, using a staff app to boost communication process is the most crucial advantage. A staff management app is essentially the back-end of a guest engagement platform. They serve as a link between visitors and the people who can help them (Ozdemir et.al., 2021).
Human resources (HR) and operations (O&M) may all communicate with hotel personnel and visitors in real time using mobile applications. As a result of the ability for guests to contact directly with hotel personnel, a higher level of customized service is provided. Real-time requests and replies also make it simpler for hotel managers to manage their processes. Tracking and solving complaints is as simple as swiping fingers on the app. As a consequence, hotel employee productivity and client happiness are both enhanced (Srivastava et.al., 2021).
Hence, from the above discussion based on the benefits and different types of factors that the hotels like Hilton must consider in mind while transforming their operations towards digitalization, it has been concluded that Customers, managers and employees in the hotel management business all benefit from the use of technology. Guest satisfaction improves as a result of technology’s ability to speed up and streamline processes. Hotel managers must be abreast of the latest technology advancements and constantly increasing consumer expectations. If they don’t, the competition will swiftly catch up with them.
Chapter-(5) Conclusion and Recommendations
Based on the above discussion, it has been concluded that People’s lives, work, travel, and business are being dramatically reshaped and reshaped by the emergence and use of digital technology. Different nations, industries, organizations, and locations have varying levels of adoption of digital technology. There is a growing divide between high-tech and internationally linked tourist firms and conventional micro and small businesses, which are generally classified as low business methods, as a consequence of these possibilities and restrictions. Today, a lot of emphasis is being placed on using online channels like search engine optimization, social media marketing, and e-commerce to expand your business. However, in an increasingly competitive global marketplace, these technologies are less successful at promoting productivity or creativity than they are at expanding market access and awareness, increasing connection, and facilitating banking transactions.
Innovative technologies (e.g., geotagging, augmented reality, cloud computing) are going to generate, customizing, and providing innovative visitor products and services with ever more novel ways, while traditional productive output technologies (e.g., revenue management platform) have did receive low uptake in tourism (OECD, 2018c). Tourism is being pushed into new and often unexpected paths as a result of digital revolution. Businesses of all sizes will be affected by digital technology, as well as tourist value chains and the whole industry… A fundamental policy problem is consequently to support and enable tourism’s digital transformation.
With the advent of digital technologies, small and medium-sized businesses (SMEs) in the travel and tourism industry now have unparalleled access to a variety of new markets, goods, and services, as well as the ability to leverage new processes and systems. Businesses of all sizes stand to gain greatly from the advent of digital technology. It can help them are becoming more productive and focused on key tasks, while also freeing up time and resources to pursue new business models, expand into new markets, or expand their operations internationally. In the digital shift, SMEs are underperforming (OECD, 2019d), and a lot of small conventional tourist enterprises are failing to recognize the prospects and profit from them.
SMBs who do not make the necessary investments to modernize their operations will be doomed. In order to stay competitive and take advantage of the innovation, productivity, and value creation possibilities, tourist destinations, companies, and the broader tourism industry will need to fully embrace these new technologies. Tourism enterprises of all sorts, from the largest to the tiniest, can benefit from the digital revolution and prosper in the face of these paradigm-shifting technology if governments would assist them do so.
Even though many of the issues and possibilities faced by small businesses in the tourist industry are similar to those faced by small businesses in general, tourism is a distinct offering. Some examples of this kind of heterogeneity include the tourist industry, which is composed of many different types of small and medium-sized enterprises (SMEs) and micro-enterprises (MSMEs). Tourism services are ripe for digitization due to the industry’s ‘information intensity,’ which makes them ideal candidates for the digital age. A closer look at the adoption of digital technology by tourism SMEs in OECD countries is critical, as around 85 percent of those businesses that play a major role in the delivery of tourism services in these countries are small and medium-sized enterprises. This compares to around two-thirds of the overall economy. SMEs and micro-companies, although making up the bulk of the tourist industry, have greater difficulty vertically integrating and reaching prospective clients than bigger enterprises (such as hotel chains like Hilton in UK in the lodging sub-sector).
In addition, tourism businesses operate on a worldwide scale while providing local services as part of a distinct tourist destination offer. This is unique to the tourism industry. The only thing limiting the geographic spread of enterprises is the allure and accessibility of potential locations. Consumers are now able to access travel goods and services from anywhere in the globe through digital platforms such as online travel agencies and hotel platforms (Kim, 2020). This has increased small and medium-sized companies’ (SMBs) exposure in the market. With the rising expectations for quality and efficiency, many small businesses in the tourist industry have to rely on bigger middlemen (e.g., the best service possible at the lowest price possible).
This has led to the suggestion that mechanization and robots are a major trend in tourism, with applications created for both physical and online tourist establishments. For example, robots and automated systems such as chatbots are now taking over many functions that were formerly performed by people. These are widely used in the business and are meant to assist consumers identify and book tours, transportation, and lodging by answering a series of questions. The robot “crew” that some hotels utilize to handle the front desk or even serve meals and beverages is a more advanced version. Industry, governments, and consumers haven’t yet worked out how to fully incorporate robots into the system yet, despite advances in their ability to offer goods and services.
As a result, Growth in new technology adoption is predicted to accelerate in the next years, driven by the continuous nature and accelerating rate of technical progress, the converging technologies into different formations and significant reductions in prices as well as the introduction of new digital economy (Purcell et.al., 2021). It has long been recognized that the creation of appropriate policy responses to technology improvements in tourism necessitates a greater knowledge of the difficulties and possibilities they provide.
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