How Does the Internet Affect Guest Behaviour in the Hotel Industry - Research Proposal Example

HOW DOES THE INTERNET AFFECT GUEST BEHAVIOUR IN THE HOTEL INDUSTRY? Name Name of Class Name of Professor Institution Affiliation City and State Date How does the Internet affect Guest Behaviour in the Hotel Industry? Introduction The trends in the Tourism and Hospitality industry change on a daily basis. The competition grows stiff time after time, thus, necessitating incessant change in all the spheres of this industry. In particular, the ongoing sophistication and adoption of technology continues to shape the Hotel and Accommodation sector. While at it, most of the hotels are taking their services to the internet with a complete cognition of the immense impacts of the internet on the businesses (Barsky 2011; Blum 2008). Previous research works have made an attempt at dissecting the intricate relationship between consumer behaviour and the internet in the hotel industry. This study is of particular importance as it will illustrate the influence of the internet on guest behaviour and consumption trends in the hotel industry. In this manner, the Hotel companies can use the findings to inform their decisions. Word Count- 142 Aims, Objectives and Research Questions The major aim of this research will be to analyse how the internet affects guest behaviour in the Hotel Industry. Alongside the main aim, the following objectives will guide this study: To understand the internet technological trends in the hotel industry. To highlight the evolution of the internet and what its implications for the hotel industry To analyse the consumer behaviour and trends in the hotel industry To evaluate and examine the impacts of social media networks on customer behaviour in the hotel industry. To understand the ease of access to the internet services, especially in the hotel industry as well as the implications on customer service and preference for the hotels Word count-110 Literature Review Walker (2010) notes that the hospitality and tourism industries are the largest with the hotel and accommodation sector being the fastest growing. While the hotel sector shares a large pool of similarities with other sectors within the industry, it is largely customer oriented with the greatest focus on the satisfaction of the clients (Aggarwal 2010; Travel Industry Wire 2010). Therefore, customer service is the prime point of differentiation and competitive edge. Lim (2010) and Thomas (2013) add that the customer service directly impacts on the reputations of the specific hotels. In a bid to improve customer service in the industry in light of the incessantly changing customer preferences, hotels have taken to the Internet to build their brand awareness and increase client satisfaction through the accessibility of services. Unlike before, internet technology has evolved over the years with immense impacts on the survival and operation of the hotel industry. Hospitality Industry (2010) observes that hotels and accommodation facilities are embracing the internet technology as a critical part of their service delivery. According to Mowat (2010, pp.8-22), social media marketing has become a central part of marketing for the hotel industries with a view to increase the sales, brand awareness, educate the customers, improve customer service, and monitor brand reputation. Impacts of Social Media on Guest Mind-set The sudden shift to social media is the primary indicator of the importance of the internet in the entire hotel industry, especially on customer satisfaction. In the contemporary world, most of the travellers and guests depend on the hotel reviews in their quest for value (Delloite & Touche USA LLP 2010; The Nielsen Company 2008). As such, the hotels must shift their undivided focus to the quality of service provision and effective communication for customer acquisition and retention, and the ultimate competitive edge. Even so, Lugosi (2007) suggests that any analysis of the correlation between guest reviews and hotel classifications should be pinned on the requisite comprehension of the behaviour of the online consumers of hotel services and products. In one of the recent studies, travel-related online behaviours that inform online booking were studied through tracking of the behaviours of just 400 consumers for 60 days before the actual booking (Gretzel 2007). During that period, the 400 consumers visited an average of 13.60 unique travel with each one visiting a site at an average of 2.92 times for all the 39.90 visits that each consumer made (Gretzel 2007). The study also found that the prospective guests made up to 8.60 searches related to travel through the internet search engines like Bing, Google, and Yahoo. The findings of the study indicate that most of the consumers spend a significant amount of time on the internet researching about hotels before they make the actual booking. According to Helms and Mayo (2008, pp.611-613) and Gretzel (2007), as some customers may be having a particular destination in mind, they may change their mind in accordance with their findings from the online searches. The trend is increasingly becoming popular as internet accessibility becomes cheaper and easier throughout the globe (Wurzburger 2009). The popularity of the social media also serves to encourage this unique consumer behaviour. Importantly, a change in the prospective guest mindsets is largely informed by the particular hotel reviews that the customers find online (Millar and Baloghu 2011, pp.302-311). Prospective clients have always pegged their decisions heavily on the experiences of their predecessors based on the hotel reviews on sites like TripAdvisor. The site rates hotels and other travel destinations based on their reputations, for instance, the dirtiest hotels (Millar and Baloghu 2011, pp.302-311) in the world or the most expensive. From the reviews, the clients evaluate the possibility of getting value for their money and make appropriate decisions. The yearly ranking is a sufficient testimony to the fact that the industry is constantly changing; and, while a destination may be popular today, there is no guarantee that it will remain so tomorrow based on the client reviews. Even so, Gretzel (2007) notes that issues have arisen concerning the validity and reliability of the reviews with most claims that some hotels even fake the reviews. While the practice is unethical, it shows that the hotels have realised the importance of the reviews and their impact on the consumer behaviour. Presbury et al. (2005, pp.357-373) note that fake reviews may increase bookings and profitability in the short-term, but may lead to low value and negative reviews from the actual experiences of the clients with the hotels. Thus, Rutherford and O’Fallon (2007) advise that the only way to gain positive reviews and increase online hotel ratings is through provisions of high quality services to the customers both online and in the actual destinations. Widjaja (2002, pp.24) concludes that guest feedback through the online review systems cannot be ignored by any hotels that seek to prosper through increased brand awareness. The Advancement of Internet Technologies in Hotels and the Impacts As the popularity of the internet and its application in the hotel industry grows, so does the sophistication of the individual technologies. Technological advancement is a pivotal ingredient in the enhancement of customer service and the subsequent customer experience (Michael and Salter 2006; Miletsky 2010; Piccoli 2008, pp.282-296). Positive reviews from customers are a function of good customer service and experience. Hotels are turning to technological advancement to improve their internet presence and customer experience (Walsh 2010; Wilms 2007; Kapiki 2012, pp.2247-7225). It is a common practice today to find free Wi-Fi in hotels coupled with devices like iPads. The consumers are able to browse and surf the net in the hotel rooms as a result of the high speed Wi-Fi and internet connections. This can be argued to be a part of the quest by hotels to improve customer service through positive experience. However, Whalen (2010) notes that the eye is always on the subsequent reviews. Hotels and accommodation companies have moved a step further to improve customer experience and earn positive reviews, which translate into increased bookings and fortunes for the hotels (Muller 2011; Lockwood and Medlik 2001). It is noteworthy that the hotel sector is customer satisfaction oriented. Thus, the necessary competitive edge is only obtained through focusing on elements that create a positive customer experience. These technological advancements are a way of enhancing the customer experience besides the other non-technological services. According to Lashley and Rowson (2005, pp.94-105), the voice-activated control technology is incredible because the voice control devices can be controlled solely through the commands by the human voice. Hotels are continuing to unveil voice-activated rooms, some of which use the iPad’s Siri feature. Lashley and Rowson (2005, pp.94-105) observe that the voice-activated device application in hotels function like a personal assistant where the guests can, for instance, control the room temperatures and make certain requests, including controlling the lighting and play music. Most importantly, the guests can also use the voice-activated devices in their rooms as a personal concierge (Sigala 2003, pp.1224-1245; Sigala, Lockwood and Jones 2001, pp.364-371). Consequently, they can view the nearby activities including attraction sites or scenic regions around the hotel. The internet technological advancement in the hotel industry serves to ease the digital distribution of products and services (Martin 2004, pp.82-90; Stoddart 2001, pp.19-29; Allen and Fjermestad 2001, pp.14-23). While the traditional mediums like the telephone only allowed one-way communication between the consumer and the marketer (Lemelin, Dawson and Stewart 2013), the internet is an active and interactive medium. The cumulative impact is a double-fold rate of brand awareness and customer acquisition. Models that will underpin the Research A critical analysis of the impact of the internet on the hotel industry, especially concerning its influence on guest behaviour requires theoretical models that scan both the micro and macro environment of the industry. Collins, Buhalis and Peters (2003, pp.483-494) suggest the use of the PEST, Porter’s Five Forces, and Marketing mix analysis for this purpose. PEST analysis will examine the political, economic, social and technological impacts of the internet on the hotel industry as well as their ripple effect on the guest behaviour (Cheng and Piccoli 2002, pp.19-33). Such analysis is important since apart from the internet as an entity, customer preferences and experiences are also influenced by such environmental factors like the legal factors, economic, and technological factors (Luck and Lancaster 2003, pp.213-231). It is interesting to note that these factors also affect the implementation of internet marketing strategies by the individual hotels. The connection between the environmental factors and the internet is intricate making it hard to understand how the two elements link with customer satisfaction and experience. Nonetheless, its understanding is still significant to this research. Porter’s Five Forces analysis will be used to analyse the competitiveness of the industry with respect to the internet strategy and trends in the hotel industry just like the marketing mix. Word Count- 1480 Data Collection The primary data collection method for this research will be structured questionnaires. These questionnaires will be divided into two sections, with the first section comprising close-ended questions and the second part involving open-ended questions. Correspondingly, the first section will capture the absolute respondent responses while the second section will capture the elaboration of the responses in the previous section. On the same note, the target population is projected to consist of both hotel staff and the travellers of prospective clients. Such a variety is critical for diversity in opinions and accuracy of a research (Louvieris 2004, pp.257-264). The resulting group of respondents will be sampled through random sampling with a view to eliminating any form of bias (Akbaba 2006, pp.170-192). The sample size will contain 150 respondents from various backgrounds. For this research, some of the potential accessibility challenges include restrictions on the possible research locations, for example, hotels. Therefore, the researcher will ensure they inform the probable facilities and seek their permission to carry out the research prior to the actual day of the research to avoid such inconveniences. Word count- 182 Time Plan Timeframe Activity Week 1 Handing in of the Report and response from the supervisor Week 2 Reconnaissance and preparation of the location of the research Week 3 Confirming the list of respondents Week 4 Presenting the questionnaires and other research tools to the respective experts for evaluation and clearance. Week 5 and 6 The actual research: data collection and analysis Week 7 Handing in of the Dissertation Bibliography Aggarwal, A 2010, ‘Top 10 strategies to promote hotels on social media channels’, M-travel, 3 August, viewed 9 November 2016, http://www.m-travel.com/news/2010/08/top-10-strategiesto promote-hotels-on-social-media-channels.html Akbaba, A 2006, ‘Measuring service quality in the hotel industry: A study in a business hotel in Turkey’, International Journal of Hospitality Management, Volume 25, Issue 2,170-192 pp Allen, E and Fjermestad, J 2001, ‘E-commerce Marketing Strategies: An Integrated Framework and Case Analysis’, Logistics Information Management, Vol. 14 Issue 1/2, pp.14-23 Barsky, J 2011, ‘Hospitality Trends and Opportunities’, Market Mix, viewed 9 November 2016, http://www.marketmetrix.com/en/ Blum, S 2008, Hotel Operations: Theories & Application, Kendall/Hunt Pub Co, London. 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