Mobile Devices in the Hospitality Industry - Report Example

? Mobile Devices in the Hospitality Industry I. Information technology: the mobile devices Without question, the advent of information technology has revolutionized our lives and the way we do business. Tasks which normally took time to do can now easily be completed with the speed of computing present in information technology. Even the world, which used to be an overwhelmingly huge place was shrunk into virtual global village where distance and geography was virtually dimished by the information technology’s binary codes. One of the fastest growing sector in the information technology is the mobile devices sector. Mobile devices such as smartphones (the word cellular phone is no longer applicable with what it can do), computer tablets, wi-fi connectivity, etch that even digital cameras now are becoming mobile communication devices. In a report by Mobilize Worldwide, the leading developer of mobile applications for promotions in the web and electronic platform, that includes interactive websites, and similar marketing channels, there were 211 million subscribers of mobile device in the US alone as of May 2011 and this figure is continually rising. It also added that of these figures, 82% of adult Americans has a cellphone, 31% of which are classified as smartphone. The company’s research also revealed that 25% of Americans rely on their mobile devices with regard to their access to the internet than the traditional computer. Almost all at 95% of all mobile device users are also capable of sending and receiving multimedia messaging service or MMS and/or short messaging service or SMS or simply text messages. This is worth noting because most of those who receive data from mobile devices read the messages within three minutes upon receipt at 90% percent of the time. It also revealed that 79% of smartphone users do online shopping and 74% of these purchases were a result of smartphone online research. More interestingly, the study was supported by the Pew Research that more than half of mobile pohone users use their mobile devices to find information about local hotels (Kasavana, nd). II. The hospitality industry The hospitality industry is composed of cluster of of industries comprising of accommodations, restaurants, entertainment, recreation and amusement sectors (Bit Wave Solutions, nd). The hospitality industry is a thriving multi-billion industry dependent on its customer’s free time, disposable income and willingness to engage in leisure. Example of sectors in the hospitality industry are hotels, restaurants, themed park and amusement centers involving a gamut of operations that animate the whole industry to serve the guests that would avail of their service. The rising prosperity in the new markets enabled the hospitality industry to expand its operation across the globe with the people’s rising disposable income offering them different service and amusement depending on their preference. Along with the expansion of the operation of the hospitality industry is the improvement of its infrastructure to better serve its customer and to remain relevant in a very competitive business environment. One of the fastest aspect of development in the hospitality industry’s infrastructure is the information technology that enables the use of mobile devices to increase customer engagement with the end of enhancing customer experience. The services that mobile devices enable includes “website configurations, fluent marketing campaigns, location-based activities, digital couponing, and point-of-sale settlement. Currently, the fastest growing segment of m-commerce service is mobile payments featuring cashless and cardless payment platforms “ (Kamanava, nd). The increased use of information technology in the hospitality industry that facilitated these services has resulted in creased expectation of visitors and personalized service especially to those who are returning customers. This became possible because hospitality industry databases keeps some personal information of their guests that allows them to personalize their service. III. Application of mobile devices in the service industry The typical application of mobile devices in the hospitalty industry that enhances customer engagement and experience are as follows; Wi-fi – provides wireless connections to guest allowing them to surf the internet and access their mails while on the premises. This technology also allows wireless registration in hotels or ordering food in restaurants (Gayeski and Petrillose, 2005). Bluetooth – this technology enables the guest to connect their other mobile devices such as laptops or digital camera to a printer without the use of cables. This technology also allows guest to transfer data to other devices such as computers, and handheld mobile devices (smartphones, computer tablets). Cellular technologies - the advent of smartphones allowed limitless possibility which the device can be used in the hospitality industry. The device can be used to locate the hotel, send message, call services, order food etch. The mobile devices typically used in hospitality industry both by the customers and hospitality industry staff are cellular/smartphones, computer tablets, laptops, digital camera. These devices allows more connectivity and engagement for the customer and also enables hotel staff to deliver their service more effeciently, personalized and better. IV. Use and importance of mobile device in the hospitality industry The use and importance of mobile device in hospitality industry is multifaceted. It does not only benefit one aspect or sector in the industry but benefits all of its key players that include the customers and management. On the end of the customers, it allows more connectivity, enhanced engagement and better customer experience that would meet if not exceed customer expectations. For management, the mobile device provide them the infrastructure not only to better serve their customers but also to enhance the business. Mobile device use and importance can therefore be summed up in the categories of marketing, customer experience and management; Marketing Mobile marketing – the hotels, restaurant and even merchandise in-store can be directed, promoted, distributed and ultimately be purchased online by the customer a mobile device platform. Customer’s can opt to subscribe to the hospitality business promotional initiative where customer can avail when he or she is interested. Mobile location – is not only helpful among hospitality providers in making their premises more accessible by providing directional maps, but could also direct potential customers where they can have discount service such couponing and rewards programs. Service providers can also make itself readily available and accessible to nearby customers by providing locator solutions (Kasavana, nd). Mobile promotions Promotional programs to encourage sales is a common marketing tool used across industries since time immemorial. The mobile device however can also be used as an effective tool where customers can have discount programs such as coupons or rewards when they subscribe to the company’s marketing notification. This would encourage potential guest to browse through its marketing notifications and familiarize with the company and its service while availing of the coupon. This advantageous to the hospitality service provider because it cost minimally and could reach as many customers possible at no or no very little additional cost. Customer experience Online booking -Mobile devices can also enhance customer experience from the moment he or she decides to book into a hospitality provider’s service. This could be done by providing customer an opportunity to book online which would be convenient both to the customer and servoce provider. Hotel service – the kind and quality of services that can be improved with the use of mobile devices are countless. It could start from using smartphones as room keys where barcodes in the smartphone can be used. Smartphone can also become a substitute for the traditional in-room phone. Concierge service will also be readily available with the availability of virtual concierges where guest does not have to physically go to the hotel lobby for concierge. Room service can also be improved using the phone locator because guests can have room service delivered not just in their rooms but anywhere within the provider’s vicinity. Smartphones can also be a substitute for remotes in the rooms airconditioning system and entertainment system. The possibilities are countless. Mobile payment - in addition to credit cards, mobile devices can also serve as a mode of payment for a cashless and cardless transaction. Management Mobile devices does not only make the jobs in the hospitality industry easier. Mobile tools can also help streamline the daily operating process in a hotel or a restaurant to readily personalize a service for a returning and valued guest at a reduced time to perform such task saving hoteliers money (Freed, 2009). V. Advantages afforded bymobile devices on the business aspect: globalizing the business In addition to convenience, personalization of service and efficiency, mobile devices also makes the hospitality business global in reach. By asserting its presence online, the service provider made its presence global through the internet whereby potential customers abroad who are planning to have a vacation or a visit locally can access the web portal of the service provider. This will allow the service provider to give information about its service and amenities along with the corresponding cost with the objective of booking the customer to its service. The same platform can also be used to consummate the transaction by providing the facility for customers abroad to make their booking and/or reservation online. VI. Limitations and cost Mobile devices may have huge benefit for the hospitality industry but there are also obstacles that prevents its effective use. Among these are the modest success rate for users to complete tasks on mobile device registering only at 59% while most still complete their transactions (online booking, etch) via conventional PC which is at 80% frequency. Among the reasons cited are the small screens of mobile devices, awkward input, download delays and websites not optimized for mobile platform (Freed, 2009). Also, the cost of one of the more popular platforms for mobile devices which is Apple is still prohibitive with a unit cost that averages $500. Albeit their are initiatives to lower the cost with their iPad mini, it is still considered pricey for many people. The trend however is encouraging as the cost continues to pull down due to competition and more cost effective technology. VII. Conclusion The mobile device may have its limitations in its present platform but certainly, it will not take long before this handicap can be overcome considering that the technology behind mobile devices are advancing in a dizzying pace. At present and considering this limitation, the benefit of the mobile device in the hospitality industry may not necessarily to grab to new customers to increase its customer base but rather, being available anywhere and everywhere whenever a potential customer needs service. By having the mobile device at disposal, it allows the hospitality industry to deliver its service to the customer which would have been probably missed out on otherwise (Powderly, 2009). References Crowell, C. (2009). Give guests control on mobile devices. Hotel & Motel Management, 224(9), 18. Freed, J. Q. (2009). Operations improve with mobile devices. Hotel & Motel Management, 224(9), 20. Gayeski, Diane M; Petrillose, Michael J (2005). No Strings Attached: How the gaming and hospitality industry uses mobile devices to engineer performance. Performance Improvement; 2(44):25-31 “Hospitality Industry”. Retrieved from http://www.bitwavesolutions.com/Hospitality.aspx [accessed April 14, 2013] Kasavana, Michael (nd). Mobile Technologies and the Hospitality Industry: Creating a Mobile Strategy. Retrieved from http://hotelexecutive.com/business_review/2874/mobile-technologies-and-the-hospitality-industry-creating-a-mobile-strategy [accessed April 14, 2013] Powderly,Henry E.,,II. (2009). Commentary: Motorola says hospitality biz wants mobile. Long Island Business News,Retrieved from http://search.proquest.com/docview/223585700?accountid=35812 Read More