Mobile Applications in the Hospitality industry - Essay Example

Mobile Applications in the Hospitality industry Introduction Advances in technology have been revolutionizing most human activities in different ways, with many people relying on them to enhance their services and performance. Communication has become a very easy and simple thing to do, compared to many decades ago when the telephone communication had not been invented. Many businesses have managed to change their means of management and product development by use of these technologies for research and among other important functions. It is important to realize that in the present global market economy, companies in the service industry have a duty to identify the major resources that can help them generate competitive advantages in the course of their operations. Additionally, they have to be in a better position access these resources and capitalize on them effectively in the process of improving the performance of their businesses while being competitive in the industry. The type and relevance of resources changes from one company to another and may also rely on the factors present in the business’ external environment. So far, it is evident that some of the old resources used by companies in the past like personal contacts and offering low prices are fast losing their effectiveness as competitive advantages. These resources are being replaced by branding and quality as some companies have adopted them (Tsai, Song & Wong, 2009). Most companies, not only in the hospitality industry, have been researching and trying on new technologies in order to improve their competitiveness and enhance the quality of their products and services. When companies are developing these new technologies, they ensure that they set new policies and regulations to guide the use and application of these technologies in their business operations. The influence of information technology One of the newly found competitive advantages for business and in the hospitality industry is dependence on information and technology. Information technology like the internet and mobile technology have become relatively new and significant sources of competitive advantages to firms. These technologies are very different from the previous strategies that some companies have relied on to enhance their operations and service delivery. Interestingly, most of the recent conventional researches and studies have not effectively portrayed information technology to be a significant factor that can enhance the success and excellence in companies’ performance (Praničević, Alfirević, & Štemberger, 2011). Additionally, some recent studies have argued whether information and communications technology can act as a competitive resource in association to its direct and the indirect potential (Breznik, 2012). At present, most researches and studies explain that information and technology can be very helpful to companies that want to create competitive advantages and market position (Sirirak, Islam, Khang, 2011). In the hospitality industry, investments in information and technology are often done to help them improve their performance in service delivery, which makes the main objective behind the mangers of these companies installing and advocating the use of ICT (Tsai, Song & Wong, 2009). Unfortunately, most of the empirical evidence available does not often support the reasoning behind the use of mobile applications and other information systems. Some kind of so-called ICT paradox exists, which stipulate that by investing in computers and mobile technology, companies are better positioned for failure at some point in time because of the degree to which these systems become obsolete. In this case, information and technology may not necessarily have direct competitive merits and potential to companies; therefore, companies need to make further research on the advantages that ICT brings to their businesses, beside increased performance. The hospitality industry The hospitality industry comprises of various fields existing in the service sector. Some of these services include hotels, lodgings, the cuisine line, theme parks, event planning and organisation among other fields that exist in the tourism sector. In many countries, hospitality is a multi-billion industry that mostly relies on the people’s disposable income during their leisure time. Any unit in hospitality like a hotel, restaurant or amusement park comprises of several facilities that enhance its effective functioning. Some of these groups include direct operations, facility maintenance among the different human resources working in different departments, area critical in the success of these industries. It is important to note that that the entry of new players in this industry has been very essential in enhancing quality in service delivery in these industries. In many places, companies and other businesses in this industry have often relied on some of the old classics in creating competitive advantages. This include strategic location, investments in facilities that enhance the branding of the companies to attract clients as well as the particular themes, which are developed by the companies’ marketing teams Another important factor has been the particular attributes of the staff in these companies, who work directly with clients. These staff is expected to be professional at all times, maintain good public relation skills and etiquette of the highest standards. The success and satisfaction of clients that come to these restaurants and other companies make sup the competitive advantages of these companies. Hotel Industry and Information Technology as sources of competitive advantage Any company is said to be profitable, if the ultimate value it generates surpasses all the combined costs used in gaining the sustainable advantages over its competitors. In this particular understanding, two main perspectives provide the direction for analyzing the competitiveness of such companies. A wholesome competitive advantage for a certain individual company in the hospitality industry is often associated with to its chief generic approaches. This strategy takes the form of differentiated products or low cost services and products offered at premium prices including a keen focus on the form or particular strategy in the niche market. The resource-based perspective of the competitive advantages focuses on the resources the company has, as well as the influence on its general competitiveness. It explains that sustainable competitive advantages for companies in the hospitality industry can only be created through various intangible sources like the companies’ responsiveness to the needs of its customers and preferences, its image, as well as the quality of services it offers. Overall, cost-efficiency will always remain a necessary situation by which companies can create profits. Conversely, intangible and other non-price factors adds value to the products and services offered by these companies Use of mobile applications in creating competitive advantages It is a general observation that consumers across all industries are spending more time on their mobile phones compared to the previous years. Most travelers have been showing a great interest in engaging in the business transactions by using their mobile devices. This development has brought about a new world that has numerous marketing opportunities. In this new development, some of the most common terminologies include mobile tagging, smartphones, geo-location, mobile sites including marketing on social media, which have come along with the developments in the mobile technologies. Currently, approximately half of all the local searches are done using these mobile technologies. In fact, it has been projected that by 2020, access to mobile internet will surpass the usage of internet on desktop computers. Armed with these statistics, major hotel groups and companies in the hospitality industry have been centering on strategies that use mobile technologies to enhance the experience of their guests (Avcikurt, Altay & Ilban, 2011). This has been through creation of various mobile apps that are customizable in order to make simple most of the digital transactions for guests in the hospitality industry. It is also evident that mobile apps for guests have also been influencing the manner in which travelers have been interacting with staff in these companies and vice versa. Mobile apps for companies staff in the hospitality industry has also been changing greatly, this includes the managers, company owners and other stakeholders in this industry. Mobile technologies can offer the most unique for streamlining service delivery in the hospitality industry (Avcikurt, Altay & Ilban, 2011). Most of these apps have been necessitating instant information sharing through effective and reliable communication, something that has improved the efficiency and accountability of employees. Superior Self-service in the Hospitality industry In the past superior, customer service in the hospitality sector has often been taken to mean attentive and personalized interaction with company staff (Camisón, 2000). However, at present, it is important that customers in the hospitality industry be given the opportunity to make their ultimate determination of how they can interact with these companies. This step is important, considering the fact that hotel services in the hospitality industry have increased tremendously, with many people requiring accommodation. Many international business activities have intensified, with people travelling to most parts of the world for their social and economic functions. In this case, hoteliers have realized the need to offer their clients the ability to bypass front desk services in the process of accessing their rooms in a fast and efficient way (Camisón, 2000). In many companies in the hospitality industry, self-service has been getting preference by both customers and staff in these companies. Many customers have like the idea of doing everything on their phones as opposed having to line and get the same services by the front desk staff, which is sometimes inconveniencing. Customers in the service industry have realized the numerous tertiary advantages that come with requesting for services through the digital platforms. This includes minimizing cases of miscommunications through voice interactions and the capacity to multitask at one’s convenience among many others. In the process of meeting the ever-increasing demand various opportunities in self-service in the hospitality industry, technology vendors and hotel companies have been developing many mobile apps that can simplify and automate service delivery for both staff and customers (Avcikurt, Altay & Ilban, 2011). Additionally, companies that rely on mobile apps for self-services in the hospitality industry have reported increased customer satisfaction scores, as well as the utilization of other amenities and booking rates in various onsite outlets. It is important to realize that interaction with guests on mobile applications is essential prior to his arrival, stay and even after departure in particular hotel. This provides a perfect opportunity for the hotel to enhance the experiences that guests are to have when they arrive, something that improves their market position and competitive advantages. This development gives them opportunities to improve their branding through instant messages, something that increases and promotes customer loyalty. Other than improving the guest experience in these hotels, mobile apps also have numerous advantages towards streamlining efficiency and effectiveness, thus boosting the revenues of these companies. As far as marketing is concerned, these apps provide important platforms upon which marketers can promote their services. Some of these services can include, upselling of rooms and accommodation, offering discounts in the restaurants or through cross-selling add-on services and other amenities that customers may prefer while at the hotel. Catering for the instant gratification generation Across the hospitality industry, mobile apps that have been developed play a big role in ensuring that guests can acquire on-demand services in a fast and efficient way. They can also make their feedback and other requests promptly and the staff can attend to them efficiently as well. One of the mobile apps that is being used widely by hotel staff and customers in many of the big hotels is i-guest. This mobile app, as used in hotel companies has been described as a multilingual app that makes it easy for customers to effectively customize their hotel visits and also access several other amenities that they may want to enjoy while in the hotels. Most of the mobile apps being developed in the hospitality can manage a plethora of diverse services that include housekeeping requests, checking in and out and ordering for room services among others. All these services can be achieved effectively by the customers without necessarily having to travel to the hotel in advance and request for them. Other features in these mobile apps include current news and travel guides, concierge functionalities among other local attraction, which is required by customers as they make their decisions about hotels services they can go for. It is important to realize that the mobile app technology has numerous benefits for the hoteliers and the customers alike. Through these apps, operators in the hotel industry can effectively gather data on guests in terms of their preferences, tastes and general consumer behavior (Ham, Gon & Jeong, 2005). In this case, they have the ability to monetize this information, creating competitive advantages in this industry; they often use this data to come up with decisions that revolve around marketing, pricing and distribution of products and services. One of the reasons why data collection is important is that it enables hotel managers and owners to provide important exceptional service to its customers. In this case, the managers can effectively create and maintain their customer loyalty both for present and future company involvements. Mobile apps and staff efficiency Mobile apps in the hospitality industry have additional benefits that help to reduce the requirements in staffing for the participating hotels. In this case, tremendous value exceeds in the process of enhancing labor efficiency that these apps through elimination of the need for various hotel staff needed in facilitating functions in the particular company (Bilgihan, et al. 2011). Some of these functions or services include reservations, valet, maintenance as well as housekeeping. The fact that customers can submit their requests through applications on their mobile technologies saves money and time for the company, while allowing the guests have control over their experiences (Bilgihan, et al. 2011). It is important to realize that with advances in technology, customer tastes and preferences for service delivery continuous to chance. Many companies have realized this trend and are currently engaging programmers to develop apps that enhance customers experience in their companies (Siguaw, Enz & Namasivayam, 2000). The entry of more companies in the hospitality industry means that companies have to try their level best to improve their labour efficiency and experience of their guests in the company. Investment in skillful and reliable technologies is important in the success of these companies. It is important for hotel managers and owners to realize that technology becomes obsolete very fast. In this case, they have to rely on continuous market research in order to realize the changing trends in customer tastes and preferences. This way, they can remain innovative in creation of apps that can enhance the experiences of their customers. Conclusion The competition in the present hospitality industry means that companies have to try and work hard to develop strategies that can maintain their competitiveness. It is important to understand that the success of any business depends on the degree to which it can acquire use different kinds of data to enhance to management, as well as marketing processes. Information technology plays a crucial role in helping these businesses manage their information and other activities in the management. The fact that mobile technologies have become very common among various customers means that companies can leverage on this developing opportunity to create competitive advantages. Researches and others studies have been elaborate in explaining the numerous advantages that these companies stand to have by employing mobile app technologies. References Avcikurt, C., Altay, H. & Ilban, O. M. (2011). Critical Success Factors for Small Hotel Businesses in Turkey: An Exploratory Study. Cornell Hospitality Quarterly, 52 (2), 153-164. Bilgihan, A. et al. (2011). Information technology applications and competitive advantage in hotel companies. Journal of Hospitality and Tourism Technology, 2 (2), 139-153. Breznik, L. (2012). Can Information Technology be a source of Competitive Advantage? Economic and Business Review, 14 (3), 251-269 Camisón, C. (2000). Strategic and information technologies in the hospitality business: an empirical analysis. International Journal of Hospitality Management, 19 (2), 125–143. Ham, S., Gon K, W. & Jeong, S. (2005). Effect of information technology on performance in upscale hotels. International Journal of Hospitality Management, 24 (2), 281-294 Praničević G, D., Alfirević, N. & Štemberger I. M. (2011). Information System Maturity and the Hospitality Enterprise Performance. Economic and Business Review, 13 (4), 227-249. Siguaw, J. A., Enz, C. A., & Namasivayam, K. (2000). Adoption of Information Technology in U.S. Hotels: Strategically Driven Objectives. Journal of Travel Research, 39 (2), 192-201. Sirirak, S., Islam, N. & Khang, D.B. (2011). Does ICT adoption enhance hotel performance? 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