Paper Example on ICTs in Hospitality: Current Practices and Future Trends

Introduction

In this chapter, a detailed discussion will be presented based on information obtained from various sources. In each of the sources used, the authors and researchers analyze the use of Information Communication Technologies (ICTs) in the hospitality industry. This paper aims to assess the current level of development of ICTs, analyze existing practices and trends and give recommendations based on this for the further development of ICTs in the hospitality industry. This literature review will help in detailing how ICTs are used in the hospitality industry and, therefore, create a wealth of information that will help achieve the aim of the paper. The literature review will be well structured to help the reader understand how ICTs are applied in the hospitality industry. The structure is based on the different areas of application of ICTs in the hospitality industry. The areas of use discussed include e-marketing, operational management, strategic management, security, guest services, and reservation.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

2.3 Application of ICTs in the Hospitality Industry

2.3.1 E-marketing

According to Frost and Strauss (2016), e-marketing emerged a few years after the introduction of the internet. E-marketing simplified traditional marketing activities because it included a platform in which parties could interact. Various studies focus on e-marketing and its use in the hospitality industry. For example, the authors view e-marketing as a way for firms in the hospitality industry to move their products or services to their prospective customers. There are different e-marketing tools that suppliers in the hospitality industry can adopt. Laudon and Traver (2016) also found that suppliers use different e-marketing tools, including e-mail marketing, internet marketing, intranet and extranet marketing. A study on the various e-marketing strategies used by hoteliers in the Caribbean shows that the hoteliers mainly focus on the needs of the customers.

There are several factors that companies consider before using e-marketing tools. Based on the findings made by Chandra and Kumar (2018), these factors include an existing marketing strategy, marketing function, and a system that ensures the development, application, and monitoring of results of e-marketing. Also, the authors found that for e-marketing to be well implemented, there are various factors to be considered such as an organization's culture, resources, size, owner skills, compatibility, adoption cost, market trends, and government influence. Managerial characteristics, supposed features of the internet, and a hotel's environmental context have an impact on the application of e-marketing. However, in their research, Bazazo, Alansari, Alquraan, Alzgaybh and Masa' deh (2017) found that an organization's characteristics are the main factors determining the application of e-marketing.

There also several factors that hinder the adoption of e-marketing in companies in the hospitality industry. Bazazo et al. (2017) examined the barriers that impede the passage of e-marketing practices in the hospitality industry. From their findings, the authors found that some of the obstacles include a lack of knowledge on e-marketing, technology incompatibility, and stakeholder unreadiness. Skills are required in the use of e-marketing and, therefore, in the case where service providers lack knowledge on its application, it can be detrimental to an organization's promotional activities. Also, for ease of adoption, firms should ensure that their current technology is compatible with e-marketing. Most importantly, for e-marketing to be introduced, it has to satisfy the requirements and needs of the stakeholders involved (Bazazo et al. 2017).

Websites are often viewed as the main tools of e-marketing in the hospitality industry. To determine the effectiveness of e-marketing, Marine-Roig and Clave (2016) examined the content of tourism websites. From the study, they find that tourism companies use content that is well informative and images that are visually alluring to reach their target consumer. Also, the authors seek to identify the type of services advertised on the websites of tourism suppliers. From the sites examined in the study, the authors find that there are different services offered depending on the region. For example, in the Caribbean region, services are associated with the region's tropical environment. In countries such as Egypt, Italy, South Africa, and the United States, the services are associated with the states' sceneries and rich history.

Social media use is another effective e-marketing strategy. In modern-day, social media is an essential tool in the hospitality industry. In their study, Ashley and Tuten (2015) have shown that if social media is appropriately used, it can meet the online needs of prospective customers and, therefore, transform them into actual buyers. For example, hoteliers can use social media for advertising the unique features that the landscape where their hotel is situated provides. Also, the authors show that social media can be used as a tool for promoting innovation in the hospitality industry. For instance, hoteliers can use social media to promote their creative leisure activities.

Several researchers have also analyzed the cost-effectiveness of social media use. According to Kim and Chae (2018), social media use enables hoteliers to reach their target customer fast and at a low cost. Also, social media provides hoteliers with the opportunity to interact with their prospective customers. The authors also note that the chance of online interaction enables hoteliers to promote special offers and competitions. Also, their findings show that online interactivity leads to better customer service.

2.3.2 Operational Management

Research by Lashley (2015) shows that control in the hospitality industry has become a difficult task for managers. Cites increased competitiveness in the hospitality industry as one of the factors that have led to difficulty in the process of management. As a result, many suppliers, especially hoteliers have developed strategic models, which are composed of different elements including optimization of the brand portfolio, building and leveraging scale, strengthening loyalty programs, and increasing revenue delivery. According to the authors, to deal with increased competition, tourism companies have also focused on expanding their operations to attractive global markets.

Pierdicca, Paolanti and Frontoni (2019) found that the use of ICTs in the management of organizations is a current subject in the hospitality industry. Managers in tourism organizations have identified that the use of the internet presents a significant opportunity to tackle managerial issues. Furthermore, Navio-Marco, Ruiz-Gomez and Sevilla-Sevilla (2018) assert that ICT has created fundamental changes in the management of businesses. The use of ICT in the management of tourism organizations facilitates the provision of high-end services to customers. The authors also add that ICT has provided a better platform for managers in the tourism industry to provide services to their customers. As a result, the authors have also found that ICT has dramatically changed the tourism industry.

Silva, Aires, Silva and Melo (2019) stress that ICT will continue to play an essential role in the tourism industry. The reason is that the authors find that ICT has continuously increased the competitive advantage of different tourism companies. Also, the authors state that ICT provides powerful and tactical tools, which can help in strengthening the competitiveness of organizations if they are appropriately used. On the other hand, the authors stated that tourism activities that are supported by the application of ICT include marketing, advertising, booking, and online payment. From a tourism management and operations point of view, tourism organizations also utilize ICTs in various functions, including administrative tasks, procurement, and human resources.

Ivars-Baidal, Celdran-Bernabeu, Mazon and Perles-Ivars (2019) argue that ICT plays a vital role in the strategic management of tourism activities. Aside from contributing to the implementation of a strategic marketing mix, ICTs determine the direction that tourism organizations should take. For instance, in their paper, the authors assert that ICT acts as a tactical tool that enables tourism companies to achieve the advantages of customer service. Also, the authors found that customer service can be improved through the application of ICT. Hence, various tourism firms are increasing their ICT projects to keep their customers happy and to get new ones.

Babu and Subramoniam (2016) found that ICTs have helped managers in the tourism industry to develop systems that can enable them to conduct their operations smoothly. The significant methods include management information systems, transaction systems, and managerial support systems. Laudon and Laudon (2016) note that management information systems are essential in every industry, including the hospitality industry. According to the authors, management information systems help managers to solve problems in an enterprise through the utilization of data entry equipment and reports. The authors also note that management information systems are vital because they support decision-making processes.

According to Smith (2018), transaction systems help in the management of daily business transactions. In the hospitality industry, transaction systems aid managers in processing, transmitting and accepting orders. The author mentions additional activities such as the creation of invoices, payrolls, and management of sales. Based on the research by Arnott and Pervan (2016), managerial support systems are divided into different sub-systems. There are support systems that help in the decision-making process. However, decision-making is often conducted in groups. According to the findings by Arnott and Pervan (2016), group decision support systems help in the process of decision-making involving a group of people. Also, posit that there are expert systems, which can help decision-makers in the hospitality industry to make decisions based on the knowledge that already exists.

2.3.3 Strategic Management

According to Johnson (2016), a strategy can be defined as the direction that an organization takes to ensure it achieves its long-term goals. Strategic management, on the other hand, is the process of analysis and decision-making that an organization assumes to ensure it maintains its competitive advantage. According to the authors, improving the effectiveness and efficiency of an organization is currently dependent on ICT. Strategic management has, over the years, been an information systems domain. The authors have proposed that information systems can have severe implications on the competitiveness of a firm. The authors employ a modified form of Leavitt's model to demonstrate how information systems can affect an organization's competitiveness by impacting the structure, management process, and personnel within an organization.

GerguriRashiti, Ramadani, AbaziAlili, Dana and Ratten (2017) posit that the use of traditional methods to identify how ICT can be used to improve the strategic management of a firm have focused on how to improve functioning areas. In the hospitality industry, the approaches used were based on the primary operations of organizations in the industry. As part of the methods, the authors found that tourism companies focused on office automation and planning of business systems to help analyze potential developments in a firm's efficiency and effectiveness. However, the two techniques cannot be easily applied to other areas of an organization such as senior manageme...