Disruptive Tech & the Australian Hospitality Sector

This report examines the effects of disruptive technological innovation on the Australian hospitality industry. It explores how these changes influence infrastructure, management, staffing, and guest experiences. The report emphasizes the importance of embracing technology for customer satisfaction despite costs, highlighting the roles of social media, smartphones, and the on-demand economy. It concludes by discussing three key technologies: smart room keys, digital conference facilities, and robust Wi-Fi infrastructure.

DISRUPTIVE
TECHNOLOGIES
IN HOSPITALITY

EXECUTIVE SUMMARY
The report summarized that the advancement in technology has created a boom in
hotel and hospitality sector across the globe. In accordance the trends in Hotel and
Hospitality sector are heading towards various changes for industrial infrastructure, buildings,
management structure and staffing requirements. It found out that the disruptive technologies
demands technical understanding and expertise training session over hospitality. Further,
these types of innovation are difficult to adapt and demands formulation in every planning
and procedure. Further, it outlined that the role of disruptive technology is directly linked to
external environment which is impacting the profitability of hospitality sector. The role
comprises innovation in three basic Smartphone, social media, on demand economies. All
theses innovation demands promotion of Hotel services on various channels like, Facebook,
Instagram, whatsapp etc. Moreover, it stated that the future trends of Australian Hospitality
sector in context to disruptive technology are becoming more challenging day by day as
improving customer experience acts a tonic for the sector and it can only be done by making
use of appropriate technology to grab consumer attraction. In contrary, it critically evaluated
the impacts of disruptive technology which are heading towards changes in present and future
trends like, Wi-Fi infrastructure, Digital Conference Facility and smart room keys.
Henceforth, the innovation in techniques assist the Hospitality sector in growth and
development but is also leading to various factors which are negative like, reduction in
manual work, increasing investment and wastage of resources and time.
Contents
EXECUTIVE SUMMARY...................................................................................................................3
INTRODUCTION.................................................................................................................................4
DISRUPTIVE TECHNOLOGY IN HOSPITALITY.......................................................................................4
CONCLUSION.....................................................................................................................................7
REFRENCES........................................................................................................................................8

INTRODUCTION
Advancement in technology has created a boom in hotel and hospitality sector across
the globe. The up gradation in techniques has its own pros and cons which creates huge
impact on the growth of organisations. The report will analyse impact and role Disruptive
technologies in hospitality sector of Australia. Further, the advancement is rapidly changing
consumers’ expectations and creasing big time competition for entire hospitality sector.
Moreover, the report will critically evaluate future trends of technology for the sector in
Australia. Thus, the report will outline the innovations which will assist the growth and
development of Australian Hospitality sector.
DISRUPTIVE TECHNOLOGY IN HOSPITALITY
Trends in Hospitality sector are heading towards various changes for industrial infrastructure,
buildings, management structure and staffing requirements. The advancement is leading to
various fluctuations which impact the actual performance of profits and sales. It can be said
that disruptive technology plays a vital role in improving the business operation and its
economic value by different types of enhancements (Cobanoglu, Berezina & Erdem, 2011).
Further, there are two type of technological advancement sustaining and disruptive.
Sustaining means time to time innovation whereas disruptive technological advancement
takes time but make innovation in existing technology. In contrary implementing the use of
disruptive technology involves high amount of risk and investment. Moreover, it demands
technical understanding and expertise training session over hospitality services in order to
attain competitive advantage (Law, Leung & Lee, 2013). These types of innovation are
difficult to adapt and demands formulation in every planning and procedure. For instance, the
increasing use of social media has created various challenges for Australian Hoteliers, as for
this the organization need to make specific details about their services on various social
channels like, Facebook, Instagram, etc. This specification provides travelers and
opportunities to compare the services, reviews, ratings and pricing strategy of hotels in the
sector which is increasing competition. Hence, the increasing impact of technology in the
sector is controlled by Australian Hoteliers by complying their business operations with the
trip and travel companies. For Instance, the leading hotels of country offers discounts and
schemes to travel companies for making their travel trip accommodation facilities easy for
traveller, which assist the organisation in enhancing their brand value and consumers base.
Further, this strategy helps the industry in deriving various kinds of advancement, impacts
and ways to deal with them.
The role of disruptive technology is directly linked to external environment which is
impacting the profitability of hospitality sector (Daskin & Tezer, 2012). In accordance to this
there are 3 major disruptive advancements which are influencing the performance such as,
Smartphone’s which enhance opportunity for hospitality to improve their services for
customers as it makes easy access of visitors over the facilities provided by the hotels. The
innovation in technology provides travelers opportunity to compare facilities like, nightlife,
restaurant, food reviews, staff services and locations. On the other hand, it assist the hoteliers
are promoting their services through application which makes them aware about the taste and

preferences of potential travellers (Cobanoglu, Berezina, & Erdem, 2011). Monitoring and
controlling visitors’ preferences assist the Hospitality sector in serving customer satisfaction.
The Australia Hospitality sector is focusing on adapting the disruptive changes in order to
attain competitive advantage but still it demands huge investment which sometimes restricts
its growth and development (Vaisnore, & Petraite, 2012). Hence the role of Smartphone’s
and various applications has made access to world services in palm of individuals’ hand for
the organization has to make continuous innovation in services according to the needs and
wants of guest. In addition to this, the major role is played by Social media as it assists
travelers in deciding the best among the rest. In this the hoteliers provides map to their
location and services which makes easier for the travelers to make decisions about their stay.
Further, social media is the platform which provides the hospitality industry to advertise
about uniqueness in its services and facilities to grab consumer attraction (Berezina &
Cobanoglu, 2010). Moreover, Australian hospitality sector uses advantages of social media t
collect consumer feedback which assists the hotels in making innovation in facilities
according to guest requirement. Besides, it also assist in collecting information about the
strategies use by competitors of industry which is beneficial for creating services
differentiated from one another in order to attract consumers. However, in contrary the role of
on demand economies demonstrate the efficiency and effectiveness of Australian Hotel
industry n which it holds the advantage which providing easy way of mobility and food
quality to travelers. The most effectiveness of hospitality sector is evaluated from its food
services and 24 transportation services (Guttentag, 2015). Leading hospitality organisations
can’t wait long to determine which emerging technologies are actually big and beneficial,
because the management need to understand the importance of technological enhancements
and how to attain competitive advantage by it (Daskin & Tezer, 2012). A policy maker of
Australian industry also evaluates the potential disruptive technologies to analyse the
magnitude of impacts, before it starts establishing changes in society and economy.
Figure 1 Wireless Communication
Source: (Technology in the hospitality industry – exploring the very latest trends 2017).
It is next generation wireless communication of data between two devices it do not
demand input of any kind of individuals information. The future trends of Australian
Hospitality sector in context to disruptive technology are becoming more challenging day by

day as improving customer experience acts a tonic for the sector and it can only be done by
making use of appropriate technology to grab consumer attraction. The Developing
economies across the globe are promoting the use of internet, online accessing and social
media. Therefore in accordance to advancement it is important for the Enterprise to promote
their services on online platform (Schellekens, 2016). Further, proving schemes and
discounts to potential travelers through advertisement and at Smartphone’s is the best way to
attract guests. Collecting feedback about Hospitality services will pays a vital role to make
innovation according to customers’ requirement. On the hand, regardless of satisfying
consumer’s needs and wants, it is becoming difficult for the Hoteliers to attain competitive
advantage as due to disruptive technology the strategies and tactics of the industry are now
not at all confidential. Present factors of Disruptive technology which are grabbing a hold
over Australian Hospitality and are demonstrating future trends are as follows:
Wi-Fi infrastructure: Almost all the guest in Hotel access tablets, phones and computers
which further expects appropriate Wi-Fi connectivity without too interruptions (Technology
in the hospitality industry – exploring the very latest trends 2017). Therefore investing in Wi-
Fi infrastructure is the strategy which will assist the industry in attaining competitive
advantage and serving consumer satisfaction in future according to the presents needs of Era.
Installing and maintaining wireless internet system in the hotel will demand high amount of
investment but on the other hand it will help the hotel in serving best internet services to
guest during their stay.
Digital Conference Facility: Providing the effective conference facility with easy accessible
internet, adequate power connectivity, concealed pathways in ceilings and flooring, mobile
phone coverage and all digital equipments for Audio video presentation like television and
sound (Technology in the hospitality industry – exploring the very latest trends 2017).
Implementing all these facilities special for the travelers travelling for business purpose or for
the domestic citizen who organize various seminar conferences can assist the industry in
maximizing profits and serving satisfaction in accordance to future trends of technology.
Figure 2: Digital Conference Facility
Source: (Technology in the hospitality industry – exploring the very latest trends 2017).
Smart room keys: This is the system in which the guest can unlock room just by swiping
mobile phone which is the best security system according to advancement. Implementing this
system at least in few premium class rooms initially will help the hotel industry in

determining its value (Berezina & Cobanoglu, 2010). In accordance to this trend the visitor
will not worry about handling or losing keys.
Hence, providing all the basic services, like entertainment on tap which comprises
television, radio in rooms, maintenance of hygiene, comfortable accommodation, appropriate
staff facility, laundry, etc. are the advancement which changes according t time and it is
important for the industry to keep check over fluctuation in order to maximize profitability
and serve consumer satisfaction (Vaisnore, & Petraite, 2012). On the other hand,
implementing the use of technological advancement demands an expertise advice and
training which is time consuming and costly for the enterprises. Organising training and
development session for disruptive technologies in Australian Hospitality sector demands
huge amount of investment and time. Moreover, making innovation in services in accordance
to competitors and external environment takes time to adjust and in between of which, the
industry lacks the efficiency and effectiveness of its basic services (Glauner, 2016). The
technological advancement is also reducing the manual work which is creating
unemployment. Henceforth, it is demonstrated that the innovation in techniques assist the
Hospitality sector in growth and development but is also leading to various factors which are
negative like, reduction in manual work, increasing investment and wastage of resources and
time (Katis, 2013).
CONCLUSION
The report summarized that the disruptive technological innovation has its own pros
and cons for Australian Hospitality sector. It stated that the Changes impacts industrial
infrastructure, buildings, management structure and staffing requirements of Hotels. Further,
the report analysed its impacts which denoted that for delivering consumer satisfaction it is
important for the Hoteliers to make use of Disruptive technology regardless of its cost
investment. Moreover, the report outlined the role of social media, smart phone and on
demand economies on the Hospitality services. Beside it evaluate the impacts and importance
in which it stated that it is important for the hospitality sector to analyse the impacts to
disruptive technology before it starts influencing economy an d society. Hence, the report
concluded with three technical innovation which can impact the business operations of
Australian hospitality sector that are, smart room key, digital conference facility and Wi Fi
infrastructure.

REFRENCES
Books and Journals
Cobanoglu, C., Berezina, K., & Erdem, M. (2011). The impact of technology amenities on
hotel guest overall satisfaction. Journal of Quality Assurance in Hospitality & Tourism.
12(4). 272-288.
Law, R., Leung, D., & Lee, H. A. (2013). Progress and development of information
technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly. Cornell
Hospitality Quarterly. 54(1). 10-24.
Cobanoglu, C., Berezina, K., & Erdem, M. (2011). The impact of technology amenities on
hotel guest overall satisfaction. Journal of Quality Assurance in Hospitality & Tourism.
12(4). 272-288.
Berezina, E., & Cobanoglu, C. (2010). Importance-performance analysis of in-room
technology amenities in hotels. Information and Communication Technologies in Tourism
2010. 25-37.
Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). 1192-1217.
Schellekens, M. (2016). Technology-mediated barriers, a counter-trend. Law, Innovation and
Technology. 8(1). 39-60.
Vaisnore, A., & Petraite, M. (2012). The enablement of customer’s participation in the open
innovation processes: an analytical framework. Economics and Management. 17(4). 1600-
1612.
Glauner, F. (2016). Future Viability, Business Models, and Values: Strategy, Business
Management and Economy in Disruptive Markets. Springer.
Katis, P. (2013). Green Entrepreneurship, as an innovative tool for enhancement of
Hospitality SMEs Competitiveness, Viability and Profitability Strategies. Journal of Regional
& Socio-Economic Issues. 3(3).
Daskin, M., & Tezer, M. (2012). Organizational politics and turnover: An empirical research
from hospitality industry. Turizam: znanstveno-stručni časopis. 60(3). 273-291.
Online
Technology in the hospitality industry – exploring the very latest trends 2017. [Online].
Available through: < https://www.aurecongroup.com/en/thinking/insights/aurecons-
successful-hotels/technology-in-the-hospitality-industry-exploring-the-very-latest-
trends.aspx>. [Accessed on 2nd November 2017].