Impact of Disruptive Technology on Australian Hospitality Industry

This report is focused on researching the effects of disruptive technologies and innovation on Australian hospitality industry. Disruptive technologies are the technological practices of modern organizations which develop new market and eventually disrupt the existing markets and old players in the industry. The report describes the impacts, role and future trends of disruptive technology in hospitality sector of Australia. For this discussion, two major technologies i.e. Robotics and Internet of Things (IoT) are taken into consideration.

Running Head: Hospitality
[Type the company name]
Hospitality
[Type the document subtitle]
Akshita Gautam
[Pick the date]

Hospitality 1
Contents
Introduction.................................................................................................................................................2
Hospitality Industry in Australia..................................................................................................................2
Impact of Disruptive Technology on Australian Hospitality Industry.........................................................3
Robotics...................................................................................................................................................3
Internet of Things (IoT)...........................................................................................................................4
Role of Disruptive Technology and Innovation...........................................................................................5
Role of IoT..............................................................................................................................................5
Role of Robotics......................................................................................................................................6
Future Trends..............................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

Hospitality 1
Introduction
Nowadays, international hospitality and hotel industry is transforming at a fast speed with the
introduction of innovative features and trends. With innovation, the hospitality organizations are
engaged in developing its services continuously. These innovations may add value to the
perspective industry, but some of them can be disruptive for traditional hotels. This report is
focused on researching the effects of disruptive technologies and innovation on Australian
hospitality industry. Disruptive technologies are the technological practices of modern
organizations which develop new market and eventually disrupt the existing markets and old
players in the industry. Today’s highly competitive environment demands updated technologies
and innovations from hotel businesses so that they can survive in the industry. It helps them to
provide a complete satisfaction to customers (Fridman, 2018). . Looking at the significance of
disruptive technology, the report describes the impacts, role and future trends of disruptive
technology in hospitality sector of Australia. For this discussion, two major technologies i.e.
Robots and Internet of Things (IoT) are taken into consideration.
Hospitality Industry in Australia
In Australia, hotel and hospitality industry is a significant contributor to its economy. This
industry has more than 4500 motels and hotels with over 225000 rooms. It is a booming industry
and it has generated revenues and profits because of tourism development in Australia. Now, it is
forecasting to reach $167 million by 2025. The figure will be increasing with the growth in the
tourism arrival to Australia from China. Moreover, the major reason behind industry’s growth is
that it is significantly investing in utilization of innovative and disruptive technologies so that
hospitality organizations can provide most influential services to their guests (Ivanov, Webster, &
Berezina, 2017). Nowadays, hotels are adopting and implementing advanced technologies and
digital products to make their hospitality operations smoother. It assists them to involve the
guests in hotel processes and increase their repeat intention towards their hospitality services. In
Australia, there are various major hotel chains which are engaged in using disruptive
technologies. The main hotel chains are such as Hilton, Marriott and Four Points by Sheraton etc.

Hospitality 1
Adoption of disruptive technology has a significant effect on the hospitality industry of this
nation which is stated below:
Impact of Disruptive Technology on Australian Hospitality Industry
With the presence of many leading players, Australia hospitality industry is becoming highly
competitive. The quality food, introduction of craft beer, convenience and exceptional customer
experiences have contributed to the race in this sector. There is an increase in the standards so
competition has ranged on other offerings and aspects related to generation of revenues and
profits, technology and social media (Newsroom. 2015). By analyzing growth of chosen sector, it
can be said that industry is very much focused on utilizing updated technologies that eventually
increase its brand reputation and profitability. Australian hotels like Four Points by Sheraton,
Hilton Hotels, Novotel Sydney Darling Harbour and Grand Hyatt etc. are adopting disruptive
technologies to attract more customers and attain success in international hotel industry (Bilgihan,
& Nejad, 2015).
Two of the major disruptive technologies which are used by Australian hospitality organizations
are Robotics and Internet of Things (IoT). The impacts of these two technologies are discussed
below:
Robotics
In the Australian hospitality industry, robots are becoming very common helpers. They are very
famous with the staff of hotel using cyber associates enables them to have more face time with
guests and customers. In this country, robots are used by hotels to enhance the guest experience.
These hotels considers that robots have the capacity to not only free up time and work of
employees but it also helps in customization of guests stay at hotel (Riemer, et. al., 2015). This
technology has various impacts on the hotels and their operations, like;
 Primarily, use of robots reduce the work pressure which the hotel employees face while
manage a grand function or ceremony. By using this technology, the hotels are able to
share the work and finally it reduces their work stress. The top management of hospitality

Hospitality 1
organizations need not to do the regular work repeatedly. Robotic facility can be used for
that purpose (Viglia, Pelloia, & Buhalis, 2018).
 It assists the employees to become more present for the guests by decreasing many time-
consuming works. There are various hotels in Australian industry that believe that robots
are the significant addition to the sector Dredge, Airey, & Gross, 2014).
 Moreover, hotel staff can emphasize on applying innovation in their operations and
processes apart from performing their routine workplace activities. This technology
specification offers competitive edge to Australian hotels. Furthermore, it can be noted
that usage of robots inhibits the mistakes which may happen at workplaces. It helps the
hotel in enhancing the level of satisfaction to customers. Modern hotels are using robotic
technology to offer effective room services to guests (Willie, et. al., 2017).
 Apart from these positive impacts, robotic technology may have some negative impact on
hotels as it increases their costs of operations. This technology is very expensive to
achieve for the hospitality organizations. It is not possible for all the hotels to afford this
technology. Robots do not contain the specification to give response to queries or issues
raised by customers related to hotels’ services (Baum, 2015).
Internet of Things (IoT)
Furthermore, Internet of Things is another advanced technology that is used by Australian hotels
to upgrade their services and operations. They are using IoT centric systems to serve the
customers effectively and it also enhances their operational efficiency. For instance, Australian
hotels can utilize IoT to offer different integrated services like application driven equipment and
automatic triggers such as set-top boxes, automated door locks, electric blinds, light switches,
thermostats, and some other devices which are connected on a shared network to allow the
hospitality services which the guest desire (Kandampully, Zhang, & Bilgihan, 2015).
By providing these facilities with help of IoT, hotels are able to improve in-room experience and
offer a lavish ambience for their guests. After the introduction of IoT, this sector sees an increase
in number of smart features like smart lobbies, smart rooms, smart restaurants, smart parking and
smart guest rooms. Modern hotels are made for energy efficiency and are prepared with updated
environmental controls like light bulbs which comprise basic sensors. Employees of hotels are
able to offer better facilities maintenance, housekeeping services, room services and energy

Hospitality 1
consumption (Lee, 2016). Adoption of IoT solutions for hotel sector allows its owners to optimize
the front office, room service, concierge and staff to address customer needs via data alerts and
data-driven triggers. Hilton and Marriott Hotels are the best examples which are using IoT
technologies. Hilton implements smart home technology into their hotel rooms by using IoT. By
using this smart technology, the hotels are aiming to enable the guests to customize and control
their rooms operations using Hilton Honors application. Connected room is one of the IoT
techniques which is supporting Hilton hotels to make its operations smoother (Schegg, & Stangl,
2017).
Role of Disruptive Technology and Innovation
Disruptive technology and innovation has a crucial role in the growth of hotel sector in Australia.
It plays a significant role in enhance the business scope for hotel companies. It has provided a
great level of satisfaction to targeted audiences. Hospitality organizations are practicing updated
technologies to fulfill the demands and needs of customers. The main role of disruptive
technology in hospitality sector is to provide easy access to clients when people are going to live
at diverse destinations (Wang, & Sparks, 2017). Digital media channels helped the firms to market
their products and services across the world. The major role of disruptive technologies in
Australian hospitality is mentioned below:
Role of IoT
IoT plays a significant role in managing different operations of hotels like inventory
management. These hotels are using IoT systems for effective inventory management. In their
kitchens, sensors can track the food that is being cooked in real-time and it can assist owners
adopt better quality control and fulfill the food safety standards. All kinds of businesses
including food and beverages, hotels, bed and breakfast which provide lodging can incorporate
sensors in their hotels to provide additional benefits to top management (Zervas, Proserpio, &
Byers, 2017).
Further, IoT also helps in increasing the transparency in an organization by showing all the
details about the company prior at the website only. The IoT feature in the hospitality industry
will help the customers in attaining the right price for the services that they wish to attain in the
market. IoT also plays the role in helping the companies to meet the expectations of the

Hospitality 1
customers in the target market. With the increase in demand, it also tells about the preference of
customers in the market which subsequently help the companies to grow in the industry (Malik,
Lenzen, Ely, & Dietzenbacher, 2014).
Role of Robotics
The biggest role of robotics can be clearly seen in the field of entertainment. Robotics is the best
feature that helps the companies in maintains the level of entertainment in the industry. This
feature is interactive with the clients, known many languages, solves the queries of people by
replying in a funny manner that increase the entertainment portion in the trips of people. Along
with this, another role of this type of disruptive innovation in the society is that it reduces the
burden of employees. As the housing keeping work is replaced by the robotic facility, so it gives
an advantage to the management to employ the interest of employees in various other
dimensions. Resulting in which, the work gets distributed and no employee face the burden of
work in the industry (Melián-González, & Bulchand-Gidumal, 2016). Also, this type of innovation
increase the fame of the overall industry in the international market and make more competitive
in the external market. Lastly, it should be noted that disruptive technologies play an important
role in the emergence of Hotel and Hospitality sector in the Australian Industry.
Future Trends
Infrared scanners are as of now being used by the robots to confine the unsettling influence related to the
housekeeping. Instead of using the don't trouble names on portals or arousing the guests by cleaning staff.
The associations are by and by starting to use the body warm pointer incorporate inbuilt in robots that
help them to understand that the room is correct presently included and the staff should come later for
also benefits.
Virtual Reality: The inns, resort and spas present in this industry should push ahead make utilization of
this innovation in order to give a 3600 perspective of their administration at the versatile use of the client.
This will upgrade the enthusiasm of the client in the association and they will in a split second speak with
the organization utilizing NFC innovation.
AI in Robotics: it should be noted that use of artificial intelligences in the Australian hotel and hospitality
industry can do wonders for the nation. This aspect can increase the thinking and responding capacity of a

Hospitality 1
robot that will reduce half of the queries faced by the employees in the industry. Further, it will also
reduce the service delivery time as well.
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the report evaluated the
use of disruptive innovation in the Australian hotel and hospitality industry. Use of innovation in this
industry especially in the field of IoT and robotics will lays impressive impacts on the industry. Impact of
innovation along with role and future trend is also discussed in the report.

Hospitality 1
References
Baum, T. (2015). Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism
Management, 50, 204-212.
Bilgihan, A., & Nejad, M. (2015). Innovation in hospitality and tourism industries. Journal of hospitality
and Tourism Technology, 6(3).
Dredge, D., Airey, D., & Gross, M. J. (Eds.). (2014). The Routledge handbook of tourism and hospitality
education. UK: Routledge.
Fridman, A. (2018). 3 Ways Technology Is Disrupting the Hospitality Industry. Retrieved from
https://www.inc.com/adam-fridman/3-ways-technology-is-disrupting-the-hospitality-
industry.html
Ivanov, S. H., Webster, C., & Berezina, K. (2017). Adoption of robots and service automation by tourism
and hospitality companies.
Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: a review and future directions with
a special focus on the hospitality industry. International Journal of Contemporary Hospitality
Management, 27(3), 379-414.
Lee, L. Y. S. (2016). Hospitality industry web-based self-service technology adoption model: A cross-
cultural perspective. Journal of Hospitality & Tourism Research, 40(2), 162-197.
Malik, A., Lenzen, M., Ely, R. N., & Dietzenbacher, E. (2014). Simulating the impact of new industries
on the economy: The case of biorefining in Australia. Ecological Economics, 107, 84-93.
Melián-González, S., & Bulchand-Gidumal, J. (2016). A model that connects information technology and
hotel performance. Tourism Management, 53, 30-37.
Newsroom. (2015). Why Australia's hospitality industry is booming. Retrieved from
https://www.hotelmanagement.net/transactions/why-australia-s-hospitality-industry-booming
Riemer, K., Gal, U., Hamann, J., Gilchriest, B., & Teixeira, M. (2015). Digital Disruptive Intermediaries:
Finding new digital opportunities by disrupting existing business models. University of Sydney,
Business School and Capgemini.

Hospitality 1
Schegg, R., & Stangl, B. (2017, January). Information and Communication Technologies in Tourism
2017. In Proceedings of the International Conference in Rome, Italy.
Viglia, G., Pelloia, M., & Buhalis, D. (2018). Information Technology in Hospitality Education.
In Innovation in Hospitality Education (pp. 87-100). Springer, Cham.
Wang, Y., So, K. K. F., & Sparks, B. A. (2017). Technology readiness and customer satisfaction with
travel technologies: A cross-country investigation. Journal of Travel Research, 56(5), 563-577.
Willie, P. A., Connor, D., Sole, J., Forgacs, G., Grieve, R., & Mueller, J. (2017). Human capital
challenges in the hotel industry of Canada: finding innovative solutions. Worldwide Hospitality
and Tourism Themes, 9(4), 402-410.
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact
of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687-705.

Hospitality 1