Technology In The Hospitality Industry

Technology In The Hospitality IndustryIntroductionThis document explains the technological change which has happened in hospitality attention and in particular hotel assiduity. The carry on of information technology in hotels is quite signifi drive outt. It has not simply given muckle completeledge as what to seek when flavor for a hotel unless similarly a whole preview as what is available in the market.This whole revolution of information technology has changed both the industry and the consumer. Industry has to become more transparent and competitive in order to satisfy customer needs. One needs to keep in mind the gigantic variability of the technology rather than assume its determining powers. (Poster, 1995) nurture technology is an inevi dodge part of any organisations functionality. If an organisation seeks to progress in industry then(prenominal) it has to be competitive and up to date in its technological needs. In a world wide technology survey (Hensdill, 1998), hoteliers and other consultants explained how the hotel industry lagged further about more behind in terms of automation than other industries.This document ordain explain what has changed hotel industry from technological perspective and what the demands of consumers are in government agency mod era.1.1 Claridges HotelClaridges hotel is situated in Mayfair, in the heart of Londons west end just a few minutes walk from the shops and boutiques of Bond highroad, South Molton Street and Oxford Street. It has 203 rooms including 67 suites. The Reading Room restaurant and The Foyer Designed by Thierry Despont. The Fumoir The intimate, back enddlelit bar is a push, sophisticated place to enjoy cocktail. Claridges Bar knowing by David Collins plays host to Londons movers and shakers. (www.claridges.co.uk)The most important change in recent times is Gordon Ramsay at Claridges restaurant head by Head chef Steve Allen. It offers finest eat in London, celebrating flavourful combin ations of the freshest ingredients which is excogitateed by Thierry Despont it is sumptuous and elegant, moreover intimate. (www.claridges.co.uk)Claridges hotel has always been considered as living in red-brick era but truly famed in royalty and celebrities for its iconic image. But in recent years there have been legion(predicate) changes which has mixed modernism and post modernism in Claridges and this is why author thinks it is the best example to show how information technology has had its imp cultivate on Claridges.1.2 Claridges Hotel WebsiteClaridges website suffers forwardness to both its customers and partners in order to book hotel rooms, table at restaurant or for afternoon tea. Online presence of Claridges hotel is one of the main examples of post modern era. Now any type of customers can just go online and book room for them. Two or three years ago trying to find hospitality IT vendor with an e-mail address, never mind a website, were an almost futile search (Fr ew, 2000). There were many hotels which were still on the old phone/agent booking remains. Now agents have live database in which they can see when to book and Claridges gets these bookings automatically.Dr. Martin Peacock argues that the systems currently being implemented in the hospitality industry emphasise the subdueling side of technology they provide performance measures they work to restrict the options of both line managers and staff. As he suggests as well that this to be the cause for the irrelevance of management.1.3 Gordon Ramsay at Claridges Restaurantfamous someone Chef Gordon Ramsay has his own restaurant in Claridges which is headed by Chef Steve Allen. In todays technology revolutionised era, it is very important to have someone famous to boost the brand. Most of the people know Gordon Ramsay through TV, newspaper and media and having his name with Claridges is key to enhance its brand name. People not just take it as a typical hotel but similarly a place to spend afternoon and dine out. According to Cline (2002) Hospitality ebusiness is destined to play an increasingly significant role and will have intricate impact on the way hospitality business is conducted in the future.Literature2.1 Research MethodsThere are various ways to perform look into in order to understand technological requirements and changes in Claridges hotel. Dr. Martin Peacock has laid down three fundamental rules in order to choose and research on plectrum proof. First, he suggested that it should be of interest of the author, secondly the fulfilment of the criteria of sufficient secondary data which is deemed practical. Finally, a possibility of primary data being available so that center field reasons and suggestions can be presented in shape of an argument. This primary data can either be collected by talking to choice establishment or its customers.2.1.1 ObservationsIn order to understand and feel technological changes in Claridges, author visited the hote l himself and had afternoon tea in the hotel. Author also visited Gordon Ramsay restaurant and dictum their seating plan and menu for customers and also understood how customers are being booked at the restaurant. Author also visited halls and visited bedrooms to understand and feel the same which a customer feels. Author understood that online customer booking facility is quite famous among customers due to ever ever-changing consumer demands and post modern era. Claridges also provides online facility to its partner companies/agents to book for rooms/restaurants.2.1.2 InterviewsOne of the primary research techniques is to interview the owner or people working in the choice establishment. It is also very important to take interview from customers so that proper analyses can be done. Author tried to book interview with IT staff of Claridges hotel but the concerned person in IT department was not available. So author has relied mainly on observations and secondary data.2.1.3 Online SourcesMain online sources used are hospitality journals available online, website of Dr. Martin Peacock, Claridges website and google search.2.2 LimitationsIt was not possible to conduct survey with customers as Claridges does not allow external person to conduct any questionnaire survey with its customers without prior permission from higher management. It was not also possible to take interview with staff of claridges who can give insight about Claridges IT performance except few observational meetings with receptionist just to understand the functionality of grassroots information systems.Impact of Technological InnovationTechnology has often been used as an instrument of control and the term itself has a link with the use of tools to control inanimate objects. Possibly the best illustration of the use of technology to control people is Zuboffs (1988) example of Benthams Panopticon. Here a prison is designed with chicken feed walls and corridors emit out like spokes from a wh eel. The concept is that these corridors can be controlled by one guard situated at the centre of the wheel. The technology (in this case glass walls, a rotating chair and innovative design) is used to control the inmates. This is not an image totally distant from modern information systems within touristry and hospitality. (Chapter in Information and Communication Technologies in Tourism (edited by D.Fesenmaier), Springer, Wien, 2000)(Cultural tourism ingathering emphasising on information and infrastructure, by Daniela Freund De Klumbis Wil Munster in Developments in the hotel industry Design meets Historic Properties) field (significance of under ANOVA 0.000). Hotels had 68.6% in the en thenceiastic user category, whilst restaurants could only count 41.9% in this group. (Martin Peacock, 1994)Modern information systems privilege a vision of technology which has well-nigh links with Benthams glass prison. In the NEDC working party report on competitiveness in tourism (1992), TG I Fridays use of technology to provide control and observe systems, is listed under Case Studies Best Practices. The same report also praises McDonalds use of systems. Baker et al (1998) suggested that the EPOS system developed for Bass Taverns removed the uncertainties of working(a) fraud and the black economy for public house managers. (Chapter in Information and Communication Technologies in Tourism (edited by D.Fesenmaier), Springer, Wien, 2000)This systematic standardisation of the hospitality proceeds provoked a counter-movement inspired by consumers searching for hotels with grotesque or sophisticated and innovative characteristics, called boutique, design or modus vivendi hotels. In the beginning of the 80s of the stretch out century the term boutique hotel swept through the market and was used to describe unique 50-100 rooms properties, non grasp-operated, with attention to fine detail and individual medal in European or Asian influenced furnishings (literally a bout ique as opposed to a department store). Sophistication and innovation explain the growth of the design and lifestyle hotel niches. In order to employ a generic term for these new niches, we will refer hereafter to the boutique, design and lifestyle concepts with the term lifestyle hotels.Being self-sufficing enterprises, lifestyle hotels join voluntary groups (membership affiliations, consortia) in order to benefit from the advantages of chains especially global selling and promotion services, common packages and internationalistic taciturnity systems without having the disadvantages of chain box hotels like absence of management autonomy, architectural uniformity and standardized operational procedures (Yu, 1996 Andrew, 2001). Examples of these voluntary groups are marketing and sales reservation networks (e.g. SRS World Hotels) and free alliances.The confrontation of box and lifestyle hotels by means of Kotlers produce directs shows clear differences between both concepts . On the core and facilitating product aims, box hotel companies present savings in building and staff costs due to the standards of performance as a major advantage to the hotel operator. In the marketing policy, the uniformity of the concept and the strong recognition of the brand are used to influence the consumers choice. Commoditization generates, within conventional elements, a feeling of security and familiarity. For the widely-travelled tourist, however, the stay in a box hotel turns into alienation and anonymity. Many of them share the experience of awaking in a hotel room while asking oneself Where am I now? This contradict guest experience, caused by impersonality, predictability and boredom, has led to an important loss of clients and turnover with box hotel companies. Table below shows us, by means of a confrontation matrix, the hotel guests main differences in choice criteria (Naber, 2002).BOX HOTELS LIFE STYLE HOTELSDemands quality guaranteeExpects quality given the high quality level of lifestyle hotelsMinimum standardsExceeding standardsNo annoying surprisesSurprise-adventure-historyExperiences are sought distant the hotelThe hotel stay is an experience in itselfRecognition of the productRecognition as a guestTo feel at home by means of the hardwareTo feel at home by means of the blue-bloodedwareReliable unique selling propositionsReally unique selling propositionsFamiliar with the brand imageSearch for a specific identity(By Daniela Freund De Klumbis Wil Munster in Developments in the hotel industry Design meets Historic Properties)What is key instalment to drive todays hospitality industry?Information technology is the key component which is driving hospitality industry. It has already revolutionised hospitality industry in post modern era and now it is driving it as major decisions are being taken and are based on Information systems provided by IT.Claims of overall increases in productivity caused by increasing use of information technology are difficult to justify empirically both at the local and the global level. US improvements in productivity can be linked straightway to computer manufacturing (Anonymous, 1999) with productivity growth in other sectors stalled or falling. Landauer (1995) reported Roachs findings that information workers in the US (1960-87) had seen no increase in productivity.Martin Peacock and Humphery Shaw, (1996) Bytes and Bias suggests in this paper that the specific issue of the attitudes to new technology in the hospitality industry. Yet, outside the specific question of the industry, society too illustrates very ambivalent attitudes to new technology. One of the best illustrations of this is the Unabomber debate. The Unabomber is an American mail bomber who has attacked pro-technology targets (principally academics) over the last 18 years. Last year his manifesto was published in the Washington Post and other American publications (Anonymous, 1995).Technological change defines the horizon of our material world as it shapes the limiting conditions of what is possible and what is barely imaginable. It erodes taken-for-granted assumptions about the nature of our reality, the pattern in which we dwell, and lays open new choices. (Zuboff, 1988) current technologies do not spell the end of traditional technologies. The synthesiser has not replaced the piano. Each has their traditional and contemporary roles to fulfil. However, the advent of the synthesiser has effected the way in which we see and use the piano. It is something different to what it was. (Biggs, 1991)Tiles Oberdiek suggests in 1995 that modern technologies in short, behave like ecosystems. When we intervene here, unexpected consequences pop up there.As Tiles Oberdiek suggests in 1995 that on the other hand there are people who have become deeply pessimistic as a result of observing the path of so called technical progress. As they see it, we are funnily impotent in the face of, indeed are ens laved by, a pervasive technology that, ironically, we ourselves have made.Belonging to the primary tourism enterprises, the hospitality industry is an requisite component of the cultural tourism product. Hospitality products need to fulfil customers needs on several levels (Kotler, 2003)(a) The core product answers the basic question what is the buyer authentically buying? It refers basically to the benefits provided by the hotel to the consumer and not the features, e.g. room comfort and convenient location.(b) Facilitating products are those services or goods that must be present for the guests to use the core product, e.g. bellboy in a luxury hotel.(c) Supporting products are extra products offered to add value to the core product and help to position it through differentiation from the competitors, e.g. full-service health spa.(d) The augmented product includes atmosphere and customers interaction with the service organization and each other, e.g. lobby socializing. The augme nted product is an important concept because it is in this level were the main differences arise between the various hospitality concepts, e.g. atmosphere created by focus on lightning, marriage of textures and colours to please the senses.How Technology works in Claridges?The expansion of the international hotel chains, in their vast majority, was accompanied and made possible by a process of standardisation and commoditization. Technological innovation has had huge impact on this expansion. Research data, which hotel chains keep and also have track record of ever changing customer needs is really important in order to expand the hotel chain as well as keeping an iconic image in the market. Claridges hotel has uniqueness which is to keep itself as one and only one hotel. It is part of group of hotels which is called Maybourne Hotel Group who has three big hotels (Claridges, Connaught, The Berkeley) in their portfolio and few other hotels internationally.Customers like to book onlin e using Claridges website. Travel professionals in tourism industry also have online access available through website where they can make bookings on behalf of their customers. Booking online provides facility to customers to request anything extra they want to the hotel and that will fulfilled. Due to recent trend in technology and use of internet has changed the old perspective of booking via phone. A customer can book anyplace while sitting in airport or in a cab and as soon as they arrive at the hotel, everything is ready for them.It is very important to show in this document what are the strengths, weaknesses, opportunities and threats which are being faced by Claridges. This analysis shows this data using SWOT technique which can be applied to other life style hotels as well and will give sufficient information in order to take the needed decisions.SWOT Analysis of the Claridges hotelStrengths WeaknessesWell-defined concepts with an unique identity and a modern character, ta king into account the four levels of the hospitality product.Need to re-adapt constantly to the fast changing market demands.Diversity in guest experience. In some cases, hotel becomes the cultural tearion in itselfLarger hotels groups cause lifestyle-fatigue through over-brandingLow costs of soft branded distribution by the sharing of costs of distribution, technology and purchasingLow profitability as compared to box hotelsAutonomous control over trading operations by the hotel itself, allowing the personal expression of passion for hospitalityHigh maintenance and staffing costsOpportunities ThreatsEmergence of new soft brand distribution models organization of independent hotels (e.g. Design Hotels Resorts)Global chains dominate supply through acquisition and development. They practise brand management across multiple brands (economies of scale)Design is meet an piece adopted by the various hospitality products (e.g. Accors backpackers concept Base)Emergence of low service s tylised concepts or imitatorsCreate programs that allow customers to spend all their bullionAggressive down-pricing by box hotel chains to retain market shareNeeds and wants of the post-modern consumer quality tourism, traditional hospitality, personal climb up, sustainable hotels, the brand as a self image, diversity of experiencesFamiliar with travelling, nowadays consumers expect value and quality for their money.Effective use of Customer-Relationship-Management databases and customer-choice-modelling experiments can allow hospitality establishments to personalize products and services thus increasing satisfaction, retention and loyalty.Good informed and critical consumersUse of co-branding synergies with other lifestyle brands as the tryst to an existing Claridges brand name enables a tender transfer of the hospitality product values and contents to the client (e.g. Gordon Ramsay at Claridges Restaurant)Because of the unpredictable buying behaviour of the post-modern consume r, brand loyalty is difficult to achieve. Many consumers can no longer be easily segmented on the basis of education, income, social class and geographic origin.Utilisation of opinion leaders in the segment addressed and of the power of famous influencers (e.g. Famous hotel for George Clooney when he is in London)The consumer is wary to media, makes his choices and can hardly be influenced.ICT solutions for one-to-one marketingHigh cost level of ICT-investmentsDevelopment of websites that convey the types of pleasurable experiences promised by the hotel and ensure pleasant browsing experiencesHigh complexity of the global distribution modelConclusionsBy using the research methods and proper use of literature, it is quite apparent that technological innovation is inevitable and in hospitality, any establishment who does not believe in this will be out of the industry in no time. It is and will always be the case of being more innovative and creative in information technology and more strategic decisions are being taken by using proper IT research methods. It is imperative to keep up to date information systems in place if to succeed in the market is the goal. In future, it will not only the case of looking good and be more hospitalise but also to use core hospitality techniques along with good knowledge of customer needs. This knowledge can only be gained if proper information system is in place.Author believes that customer should have the power to customise the facility according to his/her needs. Hotel should accommodate customer and help him/her to customise as per requirement. This can only be done if hotel has sufficient information available which covers all expected and legitimate needs of any customer.Cline (2002) as well as Peacock (1995) layer out the industrys slow and measured approach to IT and to innovation generally. But as the sophistication of technology increases (e.g. Fisk, 1999) it was suggested that a more organic or humanistic approach t o IT is needed to make the technology more useable to the organisation, employees and customers. Effective innovation appears more at the operative level, at the point of sale. Creative problem solving, product remodelling, and effective marketing have been encouraged by technological change in other industries. New modes of service delivery have grown directly from the potential of new software (Barras, 1990). It is the imaginative coupling of new technology with new services and new modes of organisation which represents its real potential. (Martin Peacock Humphery Shaw, (1996) Bytes and Bias)Competition is rumbustious on the international hotel market and imitation of successful concepts is a proven method to attract new target groups. So it is no wonder that many of the ingredients which contribute to the lifestyle hotel experience, have been adopted by box hotels. Glocalisation, the combination of globalisation and localisation, has been introduced as a leading principle in m arketing policies of chain hotels. In promotional campaigns of box hotels, the role of local culture as component of the hospitality product is highlighted by means of slogans like Think locally, act globally (Hilton Hotels) and International standards, local flavours (Claridges). While ten years ago design and style were unique selling propositions, nowadays they are minimum requirements to attract the sybaritic post-modern guest. Large hotel groups are even causing lifestyle-fatigue through over-branding and, at the same time, the number of low service stylish concepts is increasing with design becoming an element adopted by various hospitality products, e.g. Base, the backpacker concept of the Accor group.In this competitive struggle, the cornerstone of success for the lifestyle hotel product will be to pursue to satisfy the fast changing needs and wants of the post-modern consumer by offering an inimitable individuality and a full-balanced hospitality experience. The effective u se of customer-relationship-management databases and one-to-one marketing actions has to be strengthened in order to be able to personalize products and services, thus increasing satisfaction, retention and loyalty. The quality of the staff will continue to be a key success issue because the lifestyle traveller seeks more than advice or recommendations. Hotel employees should not only be trained to manage the information exchange, but also be required to match guests to experiences. To perform such a consultancy task, they are expected to be informed about the hospitality product itself as well as its cultural environment (Freund, 2002). Furthermore, hospitality employees will be required to possess commercial skills based primarily on making the most out of each customer transaction by creating experiential programs that push the guest to spend the greater part of their money at the hotel.It should be sight in this respect that consumers see food, accommodation and culture merely as elements of a greater whole relating to a total experience. Because of this, a relevant hazard for lifestyle hotels, from a marketing perspective, consists in co-branding the property with a leading brand outside the tourism industry, e.g. fashion designers, retail companies, lifestyle brands. As the allocation to an existing brand name enables a quick transfer of the product values and contents to the client, co-branded hotels (e.g. Cerrutti, Armani and Bulgari Hotels) have a competitive edge in lancinate the market. However, co-branding in the hospitality industry requires a profound evaluation of both brand partners strengths and weaknesses, a strategy for the long term co-operation and, above all, a judicious implementation.ReferencesFreund de Klumbis, D. (2002), Seeking the ultimate hotel experience, paper originally presented at the XIIe International Leisure and Tourism Symposium ESADE-Fira de Barcelona, Barcelona, April 2002, and published in Gestin en H, No. 11, May-J une 2003, pp. 58-76.Naber, T. (2002), Chain or independent box hotel or boutique hotel? lecture given at the Eurhodip Conference 2002 Hospitality Management in Europe Moving into a New Dimension, Maastricht, May 2002.Andrew, G. (2001), Evolution of tourist offers the importance of an individual hotel experience in an independent hotel chain, lecture given at the Eurhodip Conference 2001 The Hotel and Catering Trades for Employment and frugal Development in Europe, Venice, November 2001.Peacock, M., Information Technology in the Hospitality Industry, Cassell, London, 1995Smith, T., Does Technology Drive History, The MIT Press, London, 1994OConnor, Peter Using computers in Hospitality, Cassel, 1996.Bytes and Bias Technophilia in technology writing, (refereed meeting paper for Hospitality Information Technology Association Worldwide Conference, 1996).Ms. Rita Fernandas (2010) observations during meetings held with Ms. Fernandas, a receptionist at Claridges hotel.Online Sourceswww.cl aridges.co.ukhttp//www.maybourne.com/page.aspx?id=4458http//www.maybourne.com/uploadedFiles/Claridges/About_the_hotel/Claridges_London_English.pdfhttp//www.maybourne.com/uploadedFiles/Maybourne/Supplementary_Navigation/Travel_professionals/Downloads/Group_Guarantee_UK.pdfhttp//www.avlk87.dsl.pipex.com/martin/hospital.htm , (Hospitality managers who love computers too little?) by Dr. Martin Peacock