Development of New Products and Services in Hotels - Essay Example

Development of New Products and Services in Hotels Number Department I. Introduction Research is an official undertaking done systematically to build on the amount of existing knowledge Newman, & Benz, 1998). Various stocks of knowledge that researchers have sought to explore include an understanding of humankind, human mores and society, and the employment of these new findings to create innovations and progress on different fronts (Bourgeault, 2012). A research work may also amount to an advancement of previous findings on a particular subject. New researches may have some elements of previous studies, or the studies in their entirety (Hossain, Kumar, & Kumar, 2010). Basic research is more important than applied research because it involves the documentation of new innovations, and understanding, and as such primary research contribute to the furtherance of human knowledge. Techniques of research are often based on epistemologies, which differ considerably across disciplines; there are numerous forms of research (Assante, Mulaj, & Steed, 2011; Bansal, & Corley, 2012). A methodology generally involves a framework upon which the search for solutions to a problem is based (Bansal, & Corley, 2012). Methodologies encompass specific components like the stages of research, operations, techniques, and the tools used (Hassanien, & Eid, 2006). A methodology includes several approaches, with each being implemented in different aspects as the project rolls out (Bourgeault, 2012). The research is often divided into two categories: quantitative research and qualitative research (Mason, Augustyn, & Seakhoa-King, 2010). The following sections of the paper examine the research methodologies used by Hassanien and Eid (2006); and Hossain, Kumar and Kumar (2010) to investigate the significance new product development in hospitality industries found in the West and North Africa. II. Overview of the Chosen research articles (a) Article # 1 Hassanien and Eid (2006) examined the outcomes of studies and empirical research related with the involvement of key stakeholders and skills of hotels’ staff in ensuring that new product development (NPD) processes are successful during implementation. The research offers a deeper exploration of the creative behaviours and operations that can yield positive outcomes when introducing new services within a modern hotel facility in the northern African region. The outcomes of the research are of immense benefit to not only the key stakeholders in the Egypt’s hospitality industry, but enables scholars who are specialized in the hospitality management as well. The researchers arrived at the results by undertaking a survey targeted at marketing executives in various categories of the local hotels (Hassanien, & Eid, 2006). The outcomes reflected significant variations between the hotels depending on their capacities and size. More specifically, the researchers established that 5-star hotel facilities show a better understanding and implementation of NPD than the smaller facilities in the 4-star or 3-star categories. The latter two categories of hotels have shown a lower predilection to incorporate NPD processes into their corporate culture, especially in marketing campaigns. And by touching on the benefits and pitfalls that hotel management teams are likely to experience, the researchers are spot-on regarding the right implementation process of NPDs in the various categories of hotels. (b) Article # 2 The research by Hossain, Kumar and Kumar (2010) explore the impact of new service developments (NSD) practices in hotels. The authors provide an assessment of the prevailing NSD models by carrying out researches that can be used as pointers to the innovativeness of hotel facilities in two key Western hospitality industries; the United States and Canada. The researchers identified innovative services, and evaluated them with keen eyes in order to evaluate their effectiveness. The research findings revealed stark variations in the various innovation programs in the hospitality industry as compared with other service sectors. The research was also aimed at offering an understanding of the new product development process. The outcomes of the research are very important because they offer solutions to the challenges facing modern hotel facilities in an increasingly shrinking market share that has been complicated by stiff competition (Hossain, Kumar, & Kumar, 2010). The findings offer business executives the best practices that support the effective implementation of an NSD process for better economic gains. III. Discussion of the research process Article # 1 (a) Research Methodology The research utilizes a quantitative survey as the methodology. Specifically, the researchers undertook a pilot study, which was aimed at elaborating the scope of the questionnaire survey to the prospective respondents. Kick-started in early 2005, the pilot project was done in five facilities offering hospitality services in Egypt. The study focused on personal interviews due to the fact that the method allows room for the respondents to volunteer balanced and accurate information. The format of the questionnaire was re-designed, based on the responses and opinions of the participants in the pilot study. This study followed an earlier formal survey that was conducted throughout the second quarter of 2004 (Hassanien, & Eid, 2006). The researchers made sure the questionnaire was comprehensive enough for the research. As such, one questionnaire booklet contained seven pages of an A4 size paper. Structured questions amounting to 50, with multiple-choices were printed in the document. The questions were divided into five categories namely: the importance of NPD; the commonness in the use of NPD and hindrances involved; how NPD can be turned into an important tool to promote the business; what NPD should contain; and finally, the reactions and contributions of the hotel’s marketing team to NPD processes, as demonstrated in Fig. 1. Apart from the pilot study, the researchers employed several methodologies to enhance the accuracy and speed of the responses. The research saw the questionnaire being simplified to enable the respondents to spend less than 30 minutes to complete the questions. Moreover, colour cover letters with the university logo were used to ease the engagement process, and at the same time pay tribute to the University for offering financial and emotional support to the researchers (Hassanien, & Eid, 2006). The respondents were targeted with letters that were addressed to each participant, as Cronholm and Hjalmarsson (2011) have established the effectiveness of the method. The cover letters also carried all of the necessary details of the researchers. The researchers also included self-addressed and officiated envelopes for returning the completed questionnaires. The researchers assured the participants of confidentiality regarding their responses. Deale (2010) avers that presenting data in aggregated manner solves the issue of confidentiality. Telephone interviews, face to face, and use of telephone interviews played a key role in the gathering of data. The researchers dropped to collect the completed questionnaires. Owing to the advantages and pitfalls of each method used in data collection, the researchers employed a number of these methods to complement the weaknesses that may have arisen if one data collection method was used (Bourgeault, 2012). Generally, the executive team members who were contacted during the entire research demonstrated exemplary responses, with more than half of the level of responses being achieved through the face-to-face method; almost one-quarter of the responses were achieved through the drop and collect approach. The remaining percentage of data collection was done telephone interviews. (b) Measurement Development The researchers made sure that the instrument was designed and validated by taking the following steps into consideration: first, they utilized the secondary data to achieve the relevant measures: secondly, original pre-test analyses also proved vital; and finally, a pilot study aimed at testing the measure was equally imperative (Hassanien, & Eid, 2006). In light of this, the questionnaire went through a thorough review by experts (Deale, 2010). They offered their responses in regard to the overall structure and the measurement scales in particular. Their feedbacks were then used to design a better questionnaire for the study. From then on, the questionnaire work was spearheaded by two experts in a pilot study to determine its efficiency. The test was done inform of an interview whereby the respondents were first issued with the questionnaire booklet and asked to fill in the blank places. They were then asked to air their views about the project. This pilot project was aimed at establishing the amount of time it would take the respondents to understand the instructions, and fill in the forms with the right answers (Hassanien, & Eid, 2006). This pilot enabled the researchers to make the necessary corrections on the questionnaire in order to make it better in terms of user-friendliness during the actual field work. (c) The respondents The respondents comprised of the entire team of hotel marketing executives in all the categories of the hotels in the country. The researchers employed judgemental sampling technique as a way to arriving at the accurate sampling of the population of hospitality facilities in Egypt. Hotel facilities in the Egypt’s capital Cairo were selected as samples for the research because the city is the earliest and most popular urban centre in the country. Additionally, in Egypt, Cairo has the highest number of hotel facilities in the country. The city, therefore, evenly represents various types of hotel facilities in the country (Hassanien, & Eid, 2006). Notably, Cairo represents floating hotels, transit hotels, town hotels, limited service hotels, world-class hotels, and economy hotels among others. Out of the 91 hotels selected by the researchers for the pilot survey work, 63 complied. This translates into an amazing 69% of complete responses received by the end of the survey. It is notable that the percentage of the response rate is far more impressive than other NPD surveys conducted before. Article # 2 (a) Research Methodology Owing to the lack of adequate researches having firm theoretical background conducted in this field, the researchers used the qualitative approach. The researchers settled for the qualitative technique of research because proponents of the approach argue that it is more effective than other methodologies for conducting research in the current world (Bourgeault, 2012). Hossain, Kumar and Kumar (2010) employed case research in the study because it is more effective than surveys at finding effective solutions to the burning issue under investigation. Case analyses provide more answers to the underlying principle in a research as compared to structured survey methodology (Cochran, & Dolan, 1984). Given the greater role played by senior executives in decision-making, and the implementation of various initiatives, the researchers targeted the team with interviews to get a glimpse of the process. The researchers recorded the interviews for future reference. They selected Canadian resort hotel with unique tourist facilities for the research. The facility with conference halls and other conventional facilities is an entity situated in a strategic Canadian city and approved by the Canadian Automobile Association (CAA). The researchers settled for the hotel due to its autonomy feature: it lacks any affiliations to other chains (Hossain, Kumar, & Kumar, 2010). Moreover, the researchers investigated the facility’s record in the recent past regarding innovativeness of service provision. The willingness of the top executive team to volunteer the needed information about NSD processes was also considered. (b) Elite interviews The initial interviews were aimed at investigating the new services implemented by the hotel in the recent past. The researchers went straight to the “elite” interview with the Director Sales and Marketing (DSM); before joining the Director Food and Beverage (DFB) respectively (Frechtling, & Boo, 2012). After a comprehensive interview session with the two executives, it emerged that the Canadian Hotel and Resort had, in the recent past, introduced three new service packages to clients. All the three services were attributed to the DFB, who joined the facility 3 years before the date of the interviews. Detailed interviews led to the clarification of the new innovations and a synopsis of the adjustments which the hotel had made to ensure that the NSD process was successful (Mason, Augustyn, & Seakhoa-King, 2010). The second hotel targeted by the researchers is situated in the United States. The researchers undertook an interview with the facility’s DSM. The official readily volunteered useful information about most of the new innovations in the facility. The researchers did the first round of discussions via telephone, after which it became apparent that a couple of new services had been implemented in the recent past. The next phase of interviews saw the researchers gather facts using a questionnaire and vague questions (Deale, 2010). The researchers outlined all the necessary details regarding the NSD processes, followed by a comprehensive elaboration of each step. This was done to verify if the new services were executed according to proven implementation processes (Flemming, 2010). In light of these, the researchers saw it wise to eliminate any chances of the grey areas by exploring all the fifteen steps. The stepwise process of rolling out the services was also considered so as to get a deeper meaning of all the undertakings that each stage required. One of the vague questions enquired about the understanding of the key management team regarding the implementation of new services in a simultaneous manner. After the second phase of interviews, the researchers developed a scheme premised upon the new findings on the NSD process, with a view to tabling the information in the subsequent discussions with the top managers (Mason, Augustyn, & Seakhoa-King, 2010). The third round of fact-finding discussions delved in the steps involved, and once the researchers had won the approval of the executives regarding the accurate presentation of facts, they completed the study. (c) Secondary Research In contrast to the strictly “elite” interviews conducted in the Canadian hotel, the researchers mainly used the outcomes of secondary research conducted on the US facility (Hossain, Kumar, & Kumar, 2010). In light of this, they requested for vital documents such as hotel blueprints, and internal circulars among others during the initial telephone interview. With the assistance of the DSM, the researchers managed to collect all the relevant facts about all three new services that the managers had introduced in the facility. The managers readily offered the relevant details about the three new services, perhaps because she had contacted the relevant departments prior to the interview session. In the course of the interview, the key manager was able to make infrequent telephone contact to the relevant departments and officials in the process to throw more light on the innovative services (Mason, Augustyn, & Seakhoa-King, 2010). The contacted individuals were also readily available and in most cases were armed with the necessary information. One member of the executive team joined the discussion and tabled more clarification on some information. The researchers deemed the subsequent rounds of discussions as less important, especially with the second hotel, because the information that had been received was adequate for the preparation of a schematic depiction of the NSD process. IV. Comparative analysis of methodologies Article # 1 The key findings of the research conducted by Hossanien and Eid (2006) reveals that, although most of the 3 and 4 star hotels in Egypt often implement innovative services, they have a lower predilection to use the NPD as an important tool for promotional campaigns. The facilities do not incorporate the best practices in their key marketing programs based on product design, and organizational policies. But regardless of the weakness, the research established that these hotels have a huge potential to implement key changes regarding the development of their services (Hassanien, & Eid, 2006). These changes would only be realized in the long-term, however. As of 2006, the hotels were still lacking firm organisational structures that would effectively integrate product-based marketing initiatives in order to improve the quality of services to a level that not only meets but exceeds the customers’ needs. In contrast, the bigger Egyptian 5-star hotels use NPD in various marketing operations. Despite the fact that most of these international facilities try to use their various product attributes in their promotional programmes, they often tend to pay little or no attention to various consumer expectations. The integration of the NPD concepts into managing their human resources remains underutilized. According to Hossanien and Eid, (2006) there are great opportunities that if utilized appropriately could see the 5-star hotels achieve maximum gains in regard to better service provision. The main strength of this research is that it provides a rare analysis of different categories of hotels. In general, the outcomes of the research build on the previous researches on marketing operations within the hospitality industry, and provide useful literature to keen minds specialized in marketing operations in the hospitality (Frechtling, & Boo, 2012). Courtesy of the researchers, the academic field is able to successfully implement the theory of NPD in various services offered by the key players in the industry. The findings are also valuable for managers who want to integrate NPD into the marketing operations of an organization. It offers important lessons that can impact NPD initiatives during the implementation process, and as such, enables the easy adoption of the best practices. Despite the successes of the research in offering solutions to the best NPD practices in the hospitality industry, the research methodology presents limitations (Newman, & Benz, 1998). The researchers studied the Egyptian hospitality industry and as such the outcomes fall short of offering an accurate assessment of international facilities regarding the implementation of NPD processes. It may have offered a balanced literature if the researchers had explored various hospitality industries in regions with diverse cultures. Article # 2 The key findings of this research reveal that when a hotel facility undertakes the implementation of a new product in a systematic manner, the organization stands to reap immense benefits in terms of better profits. Additionally, such facilities often can withstand competition in the industry. Hossain, Kumar and Kumar (2010) established that through a NSD process, key members of executive teams can oversee the constant development and implementation of new services. The researchers offer managers a rich literature of the best practices that if properly adopted, may result in more economic gains. Unlike Hossanien and Eid (2006) the main strength of this study is that it explores two hotel facilities located in different countries. The hotel samples however are diverse in terms of size and location (Bourgeault, 2012). Meanwhile, by opting not to provide a generalized view of the research, the researchers established that the NSD application in the two hospitality industries is different from that of other service sectors (Fig 2). According to Hossain, Kumar and Kumar (2010), the pilot project can be used by a hotel organization to market the new product. This approach witnesses clients being chosen for participation in the sampling process of the new service. The selection process should be based on customer loyalty and their projected business value to the hotel facility, however. The findings also exposed the insignificance of the size of the hotels targeted by the researchers. The main limitation of this research is that the study was based on only two of the hotels in the United States and Canada (Hossain, Kumar, & Kumar, 2010). This presented a limited scope regarding the implementation of NSD, considering the fact that both industries have relatively similar qualities. In light of this, the article recommended that future studies on the subject should be carried out on a larger and more diverse sample of hotels to effectively elaborate NSD in hotels and the impacts of such initiatives to hotels. V. Conclusion In general, both research studies are based on investigating the significance of new services to not only the particular hotels but the hospitality industry in general. Although, the studies were carried out in the West and North Africa, the findings reveal that by implementing the best practices in hotel management, hotels often stand to gain more returns, better customer satisfaction, and competitive edge, especially in the current world where value for money is increasingly taking precedent over other services. The researchers established that thorough market research needs to be undertaken to ensure that market needs are achieved through constant delivery of new innovative services. Appendices Fig 1. The Ansoff Matrix Fig 2. The Two models of a new service References Assante, L.M., Mulaj, W.J., & Steed, E. 2011. Pioneering a rural hospitality research centre: examining best practices and stakeholder perceptions. Journal of Management & Marketing Research, 6, pp1-20. Bansal, P., & Corley, K.2012. Publishing in AMJ -Part 7: What's Different about Qualitative Research? Academy of Management Journal, 55(3), pp509-513. Bourgeault, I.L. 2012. Critical Issues in The Funding Of Qualitative Research. Journal of Ethnographic & Qualitative Research, 7(1), pp1-7. Cochran, D.S., & Dolan, J.A. 1984. Qualitative Research: An Alternative to Quantitative Research in Communication. Journal of Business Communication, 21(4), pp25-32. Cronholm, S., & Hjalmarsson, A. 2011. Experiences From Sequential Use of Mixed Methods. Electronic Journal of Business Research Methods, 9(2), pp87-95. Deale, C.S. 2010. What Teachers Learn From Students: Focusing on the Use of Student Products and Qualitative Methods in the Scholarship of Teaching and Learning in Hospitality and Tourism. Journal of Teaching in Travel & Tourism, 10(4), pp378-394. Flemming, K. 2010. Synthesis of quantitative and qualitative research: an example using Critical Interpretive Synthesis. Journal of Advanced Nursing, 66(1), pp201-217. Frechtling, D., & Boo, S. 2012. On the Ethics of Management Research: An Exploratory Investigation. Journal of Business Ethics, 106(2), pp149-160. Hassanien, A., & Eid, R. 2006. Developing New Products in the Hospitality Industry: A Case of Egypt. Journal of Hospitality & Leisure Marketing, 15(2), pp33-53. Hossain, M. S., Kumar, V., & Kumar, U. 2010. Innovation Process in Canadian and US Hotels. Global Journal of Business Research, 4(3), pp127-37. Mason, P., Augustyn, M., & Seakhoa-King, A. 2010. Exploratory study in tourism: designing an initial, qualitative phase of sequenced, mixed methods research. International Journal of Tourism Research, 12(5), pp432-448. Newman, I., & Benz, C.R. 1998. Qualitative-Quantitative Research: Methodology: Exploring the Interactive Continuum. London: SIU Press. Read More