BHM01 Hospitality Management

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BHM01 Hospitality Management

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BHM01 Hospitality Management

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Course Code: BHM01
University: Box Hill Institute

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Country: Australia

Question
Critical Discussion on the impact, role and future trends of disruptive technology on the Australian Hotel and Hospitality Industry.
Through research identify and discusses the impact, role and future trends of disruptive technology on the Australian Hotel and Hospitality industry.

Answer

Introduction 
Nowadays, international hospitality and hotel industry is transforming at a fast speed with the introduction of innovative features and trends. With innovation, the hospitality organizations are engaged in developing its services continuously. These innovations may add value to the perspective industry, but some of them can be disruptive for traditional hotels. This report is focused on researching the effects of disruptive technologies and innovation on Australian hospitality industry. Disruptive technologies are the technological practices of modern organizations which develop new market and eventually disrupt the existing markets and old players in the industry. Today’s highly competitive environment demands updated technologies and innovations from hotel businesses so that they can survive in the industry. It helps them to provide a complete satisfaction to customers (Fridman, 2018). . Looking at the significance of disruptive technology, the report describes the impacts, role and future trends of disruptive technology in hospitality sector of Australia. For this discussion, two major technologies i.e. Robots and Internet of Things (IoT) are taken into consideration.
Hospitality Industry in Australia 
In Australia, hotel and hospitality industry is a significant contributor to its economy. This industry has more than 4500 motels and hotels with over 225000 rooms. It is a booming industry and it has generated revenues and profits because of tourism development in Australia. Now, it is forecasting to reach $167 million by 2025. The figure will be increasing with the growth in the tourism arrival to Australia from China. Moreover, the major reason behind industry’s growth is that it is significantly investing in utilization of innovative and disruptive technologies so that hospitality organizations can provide most influential services to their guests (Ivanov, Webster, & Berezina, 2017). Nowadays, hotels are adopting and implementing advanced technologies and digital products to make their hospitality operations smoother. It assists them to involve the guests in hotel processes and increase their repeat intention towards their hospitality services. In Australia, there are various major hotel chains which are engaged in using disruptive technologies. The main hotel chains are such as Hilton, Marriott and Four Points by Sheraton etc. Adoption of disruptive technology has a significant effect on the hospitality industry of this nation which is stated below:
Impact of Disruptive Technology on Australian Hospitality Industry
With the presence of many leading players, Australia hospitality industry is becoming highly competitive. The quality food, introduction of craft beer, convenience and exceptional customer experiences have contributed to the race in this sector. There is an increase in the standards so competition has ranged on other offerings and aspects related to generation of revenues and profits, technology and social media (Newsroom. 2015). By analyzing growth of chosen sector, it can be said that industry is very much focused on utilizing updated technologies that eventually increase its brand reputation and profitability. Australian hotels like Four Points by Sheraton, Hilton Hotels, Novotel Sydney Darling Harbour and Grand Hyatt etc. are adopting disruptive technologies to attract more customers and attain success in international hotel industry (Bilgihan, & Nejad, 2015).
Two of the major disruptive technologies which are used by Australian hospitality organizations are Robotics and Internet of Things (IoT). The impacts of these two technologies are discussed below:
Robotics 
In the Australian hospitality industry, robots are becoming very common helpers. They are very famous with the staff of hotel using cyber associates enables them to have more face time with guests and customers. In this country, robots are used by hotels to enhance the guest experience. These hotels considers that robots have the capacity to not only free up time and work of employees but it also helps in customization of guests stay at hotel (Riemer, et. al., 2015). This technology has various impacts on the hotels and their operations, like;

Primarily, use of robots reduce the work pressure which the hotel employees face while manage a grand function or ceremony. By using this technology, the hotels are able to share the work and finally it reduces their work stress. The top management of hospitality organizations need not to do the regular work repeatedly. Robotic facility can be used for that purpose(Viglia, Pelloia,  & Buhalis, 2018).
It assists the employees to become more present for the guests by decreasing many time-consuming works. There are various hotels in Australian industry that believe that robots are the significant addition to the sectorDredge, Airey, & Gross, 2014).
Moreover, hotel staff can emphasize on applying innovation in their operations and processes apart from performing their routine workplace activities. This technology specification offers competitive edge to Australian hotels. Furthermore, it can be noted that usage of robots inhibits the mistakes which may happen at workplaces. It helps the hotel in enhancing the level of satisfaction to customers. Modern hotels are using robotic technology to offer effective room services to guests(Willie, et. al., 2017).
Apart from these positive impacts, robotic technology may have some negative impact on hotels as it increases their costs of operations. This technology is very expensive to achieve for the hospitality organizations. It is not possible for all the hotels to afford this technology. Robots do not contain the specification to give response to queries or issues raised by customers related to hotels’ services(Baum, 2015).

Internet of Things (IoT)
Furthermore, Internet of Things is another advanced technology that is used by Australian hotels to upgrade their services and operations. They are using IoT centric systems to serve the customers effectively and it also enhances their operational efficiency. For instance, Australian hotels can utilize IoT to offer different integrated services like application driven equipment and automatic triggers such as set-top boxes, automated door locks, electric blinds, light switches, thermostats, and some other devices which are connected on a shared network to allow the hospitality services which the guest desire (Kandampully, Zhang, & Bilgihan, 2015).
By providing these facilities with help of IoT, hotels are able to improve in-room experience and offer a lavish ambience for their guests. After the introduction of IoT, this sector sees an increase in number of smart features like smart lobbies, smart rooms, smart restaurants, smart parking and smart guest rooms. Modern hotels are made for energy efficiency and are prepared with updated environmental controls like light bulbs which comprise basic sensors. Employees of hotels are able to offer better facilities maintenance, housekeeping services, room services and energy consumption (Lee, 2016). Adoption of IoT solutions for hotel sector allows its owners to optimize the front office, room service, concierge and staff to address customer needs via data alerts and data-driven triggers. Hilton and Marriott Hotels are the best examples which are using IoT technologies. Hilton implements smart home technology into their hotel rooms by using IoT. By using this smart technology, the hotels are aiming to enable the guests to customize and control their rooms operations using Hilton Honors application. Connected room is one of the IoT techniques which is supporting Hilton hotels to make its operations smoother (Schegg, & Stangl, 2017).
Role of Disruptive Technology and Innovation 
Disruptive technology and innovation has a crucial role in the growth of hotel sector in Australia. It plays a significant role in enhance the business scope for hotel companies. It has provided a great level of satisfaction to targeted audiences. Hospitality organizations are practicing updated technologies to fulfill the demands and needs of customers. The main role of disruptive technology in hospitality sector is to provide easy access to clients when people are going to live at diverse destinations (Wang, & Sparks, 2017). Digital media channels helped the firms to market their products and services across the world. The major role of disruptive technologies in Australian hospitality is mentioned below:  
Role of IoT
IoT plays a significant role in managing different operations of hotels like inventory management. These hotels are using IoT systems for effective inventory management. In their kitchens, sensors can track the food that is being cooked in real-time and it can assist owners adopt better quality control and fulfill the food safety standards. All kinds of businesses including food and beverages, hotels, bed and breakfast which provide lodging can incorporate sensors in their hotels to provide additional benefits to top management (Zervas,  Proserpio, & Byers, 2017).
Further, IoT also helps in increasing the transparency in an organization by showing all the details about the company prior at the website only. The IoT feature in the hospitality industry will help the customers in attaining the right price for the services that they wish to attain in the market. IoT also plays the role in helping the companies to meet the expectations of the customers in the target market. With the increase in demand, it also tells about the preference of customers in the market which subsequently help the companies to grow in the industry (Malik, Lenzen, Ely, & Dietzenbacher, 2014).
Role of Robotics
The biggest role of robotics can be clearly seen in the field of entertainment. Robotics is the best feature that helps the companies in maintains the level of entertainment in the industry. This feature is interactive with the clients, known many languages, solves the queries of people by replying in a funny manner that increase the entertainment portion in the trips of people. Along with this, another role of this type of disruptive innovation in the society is that it reduces the burden of employees. As the housing keeping work is replaced by the robotic facility, so it gives an advantage to the management to employ the interest of employees in various other dimensions. Resulting in which, the work gets distributed and no employee face the burden of work in the industry (Melián-González, & Bulchand-Gidumal, 2016). Also, this type of innovation increase the fame of the overall industry in the international market and make more competitive in the external market. Lastly, it should be noted that disruptive technologies play an important role in the emergence of Hotel and Hospitality sector in the Australian Industry.
Future Trends
Infrared scanners are as of now being used by the robots to confine the unsettling influence related to the housekeeping. Instead of using the don’t trouble names on portals or arousing the guests by cleaning staff. The associations are by and by starting to use the body warm pointer incorporate inbuilt in robots that help them to understand that the room is correct presently included and the staff should come later for also benefits.
Virtual Reality: The inns, resort and spas present in this industry should push ahead make utilization of this innovation in order to give a 3600 perspective of their administration at the versatile use of the client. This will upgrade the enthusiasm of the client in the association and they will in a split second speak with the organization utilizing NFC innovation.
AI in Robotics: it should be noted that use of artificial intelligences in the Australian hotel and hospitality industry can do wonders for the nation. This aspect can increase the thinking and responding capacity of a robot that will reduce half of the queries faced by the employees in the industry. Further, it will also reduce the service delivery time as well.
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the report evaluated the use of disruptive innovation in the Australian hotel and hospitality industry. Use of innovation in this industry especially in the field of IoT and robotics will lays impressive impacts on the industry. Impact of innovation along with role and future trend is also discussed in the report.
References 
Baum, T. (2015). Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism Management, 50, 204-212.
Bilgihan, A., & Nejad, M. (2015). Innovation in hospitality and tourism industries. Journal of hospitality and Tourism Technology, 6(3).
Dredge, D., Airey, D., & Gross, M. J. (Eds.). (2014). The Routledge handbook of tourism and hospitality education. UK: Routledge.
Fridman, A. (2018). 3 Ways Technology Is Disrupting the Hospitality Industry. Retrieved from https://www.inc.com/adam-fridman/3-ways-technology-is-disrupting-the-hospitality-industry.html 
Ivanov, S. H., Webster, C., & Berezina, K. (2017). Adoption of robots and service automation by tourism and hospitality companies.
Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), 379-414.
Lee, L. Y. S. (2016). Hospitality industry web-based self-service technology adoption model: A cross-cultural perspective. Journal of Hospitality & Tourism Research, 40(2), 162-197.
Malik, A., Lenzen, M., Ely, R. N., & Dietzenbacher, E. (2014). Simulating the impact of new industries on the economy: The case of biorefining in Australia. Ecological Economics, 107, 84-93.
Melián-González, S., & Bulchand-Gidumal, J. (2016). A model that connects information technology and hotel performance. Tourism Management, 53, 30-37.
Newsroom. (2015). Why Australia’s hospitality industry is booming. Retrieved from https://www.hotelmanagement.net/transactions/why-australia-s-hospitality-industry-booming
Riemer, K., Gal, U., Hamann, J., Gilchriest, B., & Teixeira, M. (2015). Digital Disruptive Intermediaries: Finding new digital opportunities by disrupting existing business models. University of Sydney, Business School and Capgemini.
Schegg, R., & Stangl, B. (2017, January). Information and Communication Technologies in Tourism 2017. In Proceedings of the International Conference in Rome, Italy.
Viglia, G., Pelloia, M., & Buhalis, D. (2018). Information Technology in Hospitality Education. In Innovation in Hospitality Education (pp. 87-100). Springer, Cham.
Wang, Y., So, K. K. F., & Sparks, B. A. (2017). Technology readiness and customer satisfaction with travel technologies: A cross-country investigation. Journal of Travel Research, 56(5), 563-577.
Willie, P. A., Connor, D., Sole, J., Forgacs, G., Grieve, R., & Mueller, J. (2017). Human capital challenges in the hotel industry of Canada: finding innovative solutions. Worldwide Hospitality and Tourism Themes, 9(4), 402-410.
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.

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