Role and Future Trends of Disruptive Technology in Australian Hospitality Industry

This study analyzes the impact of disruptive technologies, particularly robotics, on the global hospitality industry. It covers the driving trends and types of innovation in the sector, and explores the potential benefits and challenges of using robots in hotels. The study concludes by discussing the potential impact of disruptive technology on the Australian hospitality industry.

Running head: DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
Role and Future Trends of Disruptive Technology and Its Impact on the Australian Hotel and
Hospitality Industry
Name of the student:
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1DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
Executive summary
The study is aimed at studying the changes that are happening in the hospitality industry at the
global level. The assignment covers, in brief, the various disruptive technologies and the driving
trends for the hotel industry. Disruptive technologies in specific the digital robots are being
shown as a changer for the global hotel industry, in particular, the Australia hotel industry.

2DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
Table of Contents
1. Introduction:................................................................................................................................3
1.1 Background of the topic:.......................................................................................................3
2. Findings and Discussion:.............................................................................................................3
2.1 Innovation and entrepreneurship:..........................................................................................3
2.2 Trends driving innovation in the hospitality sector:..............................................................4
2.3 Types of innovation in the hospitality industry:....................................................................5
2.4 The rise of robotics in hospitality:.........................................................................................7
2.4.1 Benefits:..........................................................................................................................8
2.4.2 Challenges:.....................................................................................................................8
2.5 Impact of future trends of disruptive technology on the Australian hospitality industry:.....8
3. Conclusion:..................................................................................................................................9
References:....................................................................................................................................10

3DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
1. Introduction:
1.1 Background of the topic:
The topic is based on the modern day innovations which are impacting and are also
expected to make a much more difference in the hospitality sector in the nearing future. The
study revolves around the innovation with the use of disruptive technology. Disruptive
technology may be defined as a technology which replaces the existing technology with a new
and trend-setting one (Pechacek, Nayak, Gregory, Weaver & Eriksen, 2016). Various new
technologies and the driving trends are significantly influencing the hotel sector. The changed
pattern of travelers has played a major contribution in driving the industry for a set of advanced
technologies. The modern day travelers and the millennial travelers have a new set of definition
when they plan a trip. Such travelers are not confined just to the experience that had meant
sufficient to their parents. Traveling rather means to them a much more than that (Hernandez-
Maskivker & Rauch, 2017). This study is purposefully based on analyzing the disruptive
technologies in regards to its impact on the hospitality sector.
2. Findings and Discussion:
2.1 Innovation and entrepreneurship:
Innovation, in general, can be defined as an introduction of a new product or service to
target customers (Drucker, 2014). Entrepreneurship may be defined as a state which encourages
an entrepreneur for adopting innovative approaches to enhance the business profitability and the
market values (Drucker, 2014). There are a lot of innovations happening in the hospitality sector
to enhance its functionality and declining the costs. The rise of robotics just serves the purpose
and provides effective hands to the hotel sector (Stringam & Gerdes, 2017).

4DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
2.2 Trends driving innovation in the hospitality sector:
There are various trends which are driving innovative practices in the hospitality sector. Such
trends are as follows:
The requirement of increased functionality:
There are the needs of an increased functionality in the hotels to help it focus much more
on customers. Customers do prefer a particular hotel which they had visited earlier in past as
they know much about the place and hence, feel secure and relieved. However, this is only
possible if they feel to have been treated with utmost cares on their last trip to the place. They
keep on carrying the goodness which also results in making the final decision. This is due to the
fact that hotels give additional emphasis on reducing the total costs and enhancing the
functioning capabilities (Mathath & Fernando, 2015).
Reducing the total costs:
The needs to reduce the overall costs and to provide a much cheaper & effective service
to customers have urged the desire to look for various kinds of disruptive technologies (Tang,
Wang & Tang, 2015). In course of the mentioned action, the hotel industry across the globe is
heading towards a changed and productive form of technologies which could help the sectors to
earn more profits and establish elevated market values. Additionally, the industry is also focused
on retaining its customers which could ensure a profitable venture for years to come (Tang,
Wang & Tang, 2015).
Changed pattern of travelers:

5DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
Changed pattern of travelers is another fact which is driving the hotel industry for a
various kind of disruptive technologies. The modern-day travelers, in particular, the millennial
travelers have a very different frame of mind when they plan a trip. They follow a very different
concept of travel which influences them to be in a different line of action than their parents were
in. Modern-day travelers do not just want to be confined to enjoying the places but they rather
look for a much competitive travel package and an enhanced customer service at the destination
hotel (Hernandez-Maskivker & Rauch, 2017). They are brought up in an environment where
they are open to the various kinds of technological gadgets. Hence, they have an addiction of
making things easier by using the different kinds of technologies (Garikapati, Pendyala, Morris,
Mokhtarian & McDonald, 2016).
Increased competition:
The increased competition and a relative challenge in the form of employee turnover
have encouraged hotels to use innovative technologies, so that, they remain alive in the
competition and maintain a healthily profitable venture. Hotels will better technologies to reduce
the costs and enhance the functionality will have better chances of retaining its visitors (Tugores
& García, 2015). Functionality can be improved and increased as well with the help of
technologies like the robotics. Robotics can do things unsupervised for a complete day and that
with much perfection than the physical professionals. Hence, there are expected less flaws and an
elevated service standard (Bilgihan & Nejad, 2015).
2.3 Types of innovation in the hospitality industry:
Following is the list of technologies that are driving the global hospitality sector:
Cloud/Software as a Service (SaaS)-

6DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
Cloud computing is one of the technologies that have brighter prospects for the hotel
industry. It is for two main reasons. The upfront investment is less as the system does not require
an investment on the hardware and also the full-time IT specialist to manage the system
(Ramkhelawan, Cadersaib & Gobin, 2015). Secondly, it allows hotels to utilize its IT expertise
only for day-to-day business to ensure a notable guests experience (Ramkhelawan, Cadersaib &
Gobin, 2015).
Mobility-
The use of mobile devices like the Smartphone, tablets and the laptops have
revolutionized the business industries at the global level. The hotel industry is no any exception
and has been benefiting from it. Customers now can check their choice of packages by browsing
it on their respective mobile devices. They will also be able to book their best-match hotels and
select the best travel packages (Ozturk, Bilgihan, Nusair & Okumus, 2016).
Social media-
Social media does also have a profound impact on the hotel industry. Trip Advisor is one
of such resources which travelers use to book their desired hotels, holidays and leisure facilities.
Facebook and Twitter have also become influential as it can be used for an exchange of both side
conversations (Inversini & Masiero, 2014).
Personalized systems-
Personalization is a key trend in the hospitality sector. Hotels are now using database
management system to enhance customer personalization, so that, they could retain their visitors
and encourage them for a revisit (Piccoli, Lui & Grün, 2017). This means that customers will be

7DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
treated with their choice of foods and other things already known to the hoteliers. The
personalization in this way may be helpful in making the visitors feel like home (Piccoli, Lui &
Grün, 2017).
Integration-
Integrating the various departments of the hotels with the management system is a very
good way to enhance the information management system. Hoteliers with this are expected to
have a track of the revenue generated per visitor. In addition, the management can expect a
widened view of the different hotel processes which is necessary to closely monitor every single
visitor (Garrido-Moreno & Lockett, 2016).
Globalization-
This is last but a much influential trend in the hospitality sector. Hotels are expected to
operate at the global level which means there is a need to deploy technologies that are also
feasible to the global needs. Moreover, the industry needs to have answers for an uncertain
economic behavior both at the domestic and the international level (Liu, Guillet, Xiao & Law,
2014).
2.4 The rise of robotics in hospitality:
This is an emerging trend as it has been considered as effective for increasing the
functional capability of the hotels and reducing the costs. Robots have come a long way since a
digital robot was invented in 1954 and was implemented in 1961 in an auto plant (Edwards,
2015). It now has potentials to serve the hotel as well in the different kinds of functionalities.
Additionally, such robots are high in service standard and can produce a much more effective

8DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
result than the physical staffs (Edwards, 2015). It imparts a series of benefits if being
implemented to the hotel sectors. On the other hand, it may also come across a few challenges
which may question its presence in the hotel sector.
2.4.1 Benefits:
Robots in the hospitality industry can produce the following benefits:
 It can help to provide solution to the staffing issue which is a global problem due to an
incrementing employee turnover (Zopiatis, Constanti & Theocharous, 2014)
 It may take up the responsibilities and work to perfection without being supervised for an
entire day
 This can be utilized in hotels for housekeeping and welcoming the visitors and that with a
better output than the physical staffs (Edwards, 2015)
2.4.2 Challenges:
One of the challenges is the human-robot interaction in terms of technicality and socially.
A more natural interaction with the humans is still required (Tang, Wang & Tang, 2015). Hotel
industries across the globe are doing their best to identify the best possible contribution from the
robots. The fact can well be understood from a fact that Google bought not less than eight
robotics companies in 2013 (Cbsnews.com, 2018). There is still a long way to go to take a much-
elevated usage of such robots. However, few things like robotic drones taking orders &
delivering it, taking lost visitors to their rooms and detecting the intruders to enhance the hotel
experience can be expected in future (Tang, Wang & Tang, 2015).
2.5 Impact of future trends of disruptive technology on the Australian hospitality industry:

9DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
The use of disruptive technologies, in particular, the robotics may produce a positive
impact on the Australia hospitality industry. It may provide solutions to issues like incrementing
competition, higher cost of operating, retention of loyal customers and many others (Jones,
Hillier & Comfort, 2016). The increased competition can be mitigated by enhancing the firm’s
strategic capabilities. Robots may assist in few basic services like housekeeping and guest
welcoming. They can perform it even better than the physical staffs. Hence, this validates an
increased capability in regards to customer service (Jones, Hillier & Comfort, 2016).
The costs of operation may also get reduced as robots will eliminate the needs to spend
on physical staffs and the training process. This will produce a direct impact on the costs of
operation (Leonidou, Leonidou, Fotiadis & Aykol, 2015). Visitors may be pleased on receiving a
warm welcome from the robots. They may deliver the service much better than the traditional
staffs. Hence, the service standard may be flawless without being supervised for an entire day.
Hence, customers may feel satisfied and consider a revisit. This is necessary for increasing the
retention rates of loyal customers (Leonidou, Leonidou, Fotiadis & Aykol, 2015).
3. Conclusion:
To conclude, disruptive technology like the robotics may effectively impact the global
hospitality industry by reducing the costs of operation and enhancing the visitor’s retention rates.
Like the global world, Australia hospitality industry may also be benefitted from the
technologies. This may provide solutions to issues like labor shortages, visitor retention rates,
and enhanced personalization to the guest. However, there is still a long way to go to make
robots more interacting with the humans.

10DISRUPTIVE TECHNOLOGIES IN HOSPITALITY INDUSTRY
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