Digitization in the Tourism/Hospitality Industry Coursework (Coursework Sample)

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FACTORS INVOLVED IN THE DIGITAL TRANSFORMATION OF A TOURISM /HOSPITALITY SME
We are living in a period of time in which a lot of progression in the technology industry is being made. According to Annmarie Hanlon (2016), this, therefore, exceeds companies' competence in tackling issues and challenges that arise as a result of these technological advancements. New developments in terms of applications, tools and platforms are crop up on a daily forcing people to embrace and try and keep up with technology.
Customers are increasingly acquiring goods and services online, giving their reviews and feedback on the service and even sharing pictures of their purchases. There has already been full digital conversion by some businesses. They have working systems and programs in place already incorporated into their enterprises. A good example of this is the RS which saw it fit to create a customer engineer community which provides a platform whereby feedback and exchange of new information and ideas take place (Hanlon, A. 2016).
Impact of Social Media in Small Businesses
The transformation has for a time been needed but with the increase in the use of internet enabled mobile devices; customers have been able to access and sign up for various social sites such as Facebook, Twitter, Pinterest etc. This has led to discussions regarding products and services, customer service and all else relevant to the enterprises. Businesses, therefore, have no other alternative other than step up and reach out to their customers on these platforms.
Therefore, customers are able to complain about challenges they face in relation to the business’ product or service, request for customer service, give reviews and feedback on their experiences, seek out new offers and suggest developments of new products and services where they identify a niche. Their response to these depends on the company's level of knowledge and adaptability of digitization. This can ultimately lead to improvement and growth of the enterprises.
It is a trend that is bound to affect every single company. Therefore management teams should see to it that they are employing strategies and programs that support digitization to remain relevant in their fields and also ward off competition. Some areas in which these strategies can be employed include the products and services development and innovation, chains and operations supply and in marketing and sales and services.
Hospitality and Tourism Management
Hospitality and Tourism management involves the overall planning of matters related to tourism policies, local and global tourism and specific studies related to management. This is an industry that is based entirely on services. Some of the enterprises in this industry include tourism-related businesses, private clubs, restaurants, hotels, travel providers, food services, and event planning among others. The product that is purchased is often intangible. Langhorn (2004) stated that in this industry service providers are usually part and parcel of the products themselves. The service sectors in these industries include tourism and travel, lodgings, recreation and food and beverages.
Travel industry goes hand in hand with transportation of the tourists from one location to the other. This industry works alongside the tourism industry to promote vacations and travels.
Lodgings are usually places to spend the night. This can include motels, campsites, hotels etc.
Recreation refers to activities involving relaxation, enjoyment and rest to freshen up a person’s mind, body and soul. These activities vary highly due to the different tastes and preferences of people. This is further grouped into sports, which can either be participatory, or spectator, attractions and entertainment.
Food and Beverages is one of the biggest industries and it’s growing exponentially over the years. It involves businesses providing food for the customers. The travel encounters revolve around reviewing, sharing, travelling, bookings and experiences (Hospitality and Tourism Sciences, 2016). The face of the hospitality industry has largely been impacted by technological innovation
Attitudes in adopting information and communication technology are influenced by factors such as:
1 A lot of pressure from their competitors. Businesses are constantly trying to keep up with their competitors to remain relevant. This can be a major drive for competing enterprises to upgrade their mode of business through technological advancements in order to not lose but retain their customers and clients.
2 Pressure from the suppliers. Suppliers that businesses deal with may upgrade technology wise in terms of payment, delivery and orders. The businesses will definitely have to embrace the upgrades in order to maintain a good working relationship and for the efficiency of both the SMEs and their suppliers.
3 Ability to adapt to the changes in technology. Digitization is an ever-advancing industry. This means that an SME is supposed to keep up with the technological upgrades which can be quite a daunting and expensive project for small business enterprises.
4 Characteristics of the manager/owner of the firm. World Academy of Science, Engineering and Technology (2016) states that research has shown that the more a business owner is tech savvy, the higher the likelihood of more technological advancements in the business.
5 The costs involved in setup and the returns. The incurred costs in training the employees to be digitally literate are also a main cause of the slowness in technology advancement.
6 Issues that arise from globalization.
7 Characteristics of the firm.
Innovations in tourism
1 Booking Systems Online.
This has been on the rise in the hotel industry as the popularity of the particular hotel increases. This a largely convenient system as customers from all over the world are able to check the availability of hotel rooms and tables and make their bookings and reservations. This is even more preferred than mobile phones because it is still accessible after working hours. Businesses can go about this in two ways; One chooses to use an agent or a third party for the booking service while two is to create their own system customized to suit their business. Each option has its own pros and cons so this is entirely up to the business owner to decide.
2 Electronic Point of Sale (EPOS)
This is of great convenience to the clients wherever they may be with just a touch of the button. Bookings, order processing and payments can be made directly from a mobile device with an internet connection or straight from your PC.
3 Customer Relationship Management (CRM)
This is software that store contacts and information for proper management and organization. Allows the businesses to maintain good customer relations and relay information to all members of staff via an application. This, therefore, ensures proper communication amongst all involved in the business.
4 Social Media
This presence is very important mostly because of reviews and images for a potential customer to make out an experience in his/her head. The social media sites should also be chosen bearing in mind a target audience.
5 Smart phones
This has also been a great chance for the hospitality industry for their customers to access their enterprises online, check maps and very soon applications will enable smart phones to act as hotel keys. (Bickerton, p., 2015)
6 Smart Appliances
Upgrades in home automations and smart appliances are beginning to reach the industry and have greater influence to the industry. These include alarms, lighting, radios, TVs, temperature and blinds will soon all be accessed at the touch of a button from the phones or from applications that will have to be downloaded and be used by the customers.
7 Destination Branding
This refers to the various ways in which companies conduct assessments of different destinations and their specific attributes (Till 2016) and integrating their appealing features so as to be able to discern it from its rivals (Anderson & Morrison 2002 cited by Qu et Al. 2011). Most consumers rely on word of mouth (WOM) when it comes to travel destinations. To consumers, it's a matter of emotional perception of the brand resulting from their own acquaintance or that of others. There has also been a rise of destination management organizations whose role is to entice tourist enterprises and tourists themselves through the popularization of these destinations. This is through online marketing and social media sites. A bid percentage of these DMOs have programs in place and special packages (Morgan et Al. 2011).
Barriers for SMEs in Adopting Technology
1 The Level of Development. Developed and underdeveloped countries face a myriad of different issues due to different levels of technological advancement and growth as well. This is because digitization is affected by the political, economic and cultural situations in a country and these vary greatly. Digitization needs to be assessed critically as it can be a great factor that will foster economic development. Some of the challenges that may be unique to those in developing countries include; inadequate staff, lack of the skills and expertise needed for the technology and inadequate infrastructure when it comes to telecommunications. Telecommunications affect the internet connectivity, Internet service providers, telephone poles, user dial-up access.
2 Security. Case studies conducted in the UK according to the International Scholarly and Scientific Research & Innovation show that a large number of SMEs are dealing with security risks. These may be in form of; leadership, legal risks and tax risks, branding and reputation amon...