Disruptive Technology in Australian Hotel and Hospitality Industry

This paper discusses the impact, role and future trends of disruptive technology in the Australian Hotel and Hospitality Industry. It evaluates the use of technology in increasing customer satisfaction and improving business processes. The report also highlights the positive and negative influences of technology on the industry.

Entrepreneurship

Contents
Introduction......................................................................................................................................2
Impact of Disruptive Technology in Hotel and Hospitality Industry of Australia..........................2
Role of Disruptive Technology in Hotel and Hospitality Industry of Australia..............................4
Future Trends of Disruptive Technology in Hotel and Hospitality Industry of Australia...............6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
The aim of this paper is to brief a critical discussion about the use of disruptive technology in the
Australian Hospitality Industry. Disruptive technology refers to a disruptive innovation that helps
the business to create new or different value from their products and services. Disruptive
technology helps the business process in increasing the satisfaction of the satisfaction of the
clients and improving their image in the target market. When an organization uses technology in
such a way, that innovation is made, then the process is called disruptive technology. Businesses
in the current environment are in regular need to make use of technology in such a way that the
customers gain higher level of satisfaction. Further, the below mentioned report evaluates the
impact, role and future trends of disruptive technology in the ‘Australian Hotel and Hospitality
Industry’. Australia is a country that is high in the field of innovation and tourism as well, so
combining both the aspects will give greater level of satisfaction to the customers in the market.
Further, more details about the report are discussed below:
Impact of Disruptive Technology in Hotel and Hospitality Industry of
Australia
The fact should be considered that the hotel and hospitality industry of Australia is increasing the
use of hi-tech products and technology services that is increasing the profitability of the industry
on a whole. For the hotel and hospitality industry, disruption is a way to attract the customers,
retain them and provide them a pleasant experience as well. Top influencer and trendsetter
companies like Hyatt, Marriott etc. have also started using disruptive technology in their day-to-
day activities so as to increase the success rate of the company (Šerić, Gil-Saura, & Ruiz-Molina,
2014). Now days all work is done through technology that has somehow handicapped the hands
of people. As now without using technology, people are unable to initiate their regular day to
activities as well.
Further, it should be noted that changes in the use of technology has increased the scope of
business for many organizations present in the hotel and hospitality industry of Australia. As a

now person present in Sri Lanka can book tickets from online. Resulting to which, people have
learned to interact with the companies present in Australia (Zaitseva, Larionova,
Yumatov,Korsunova, & Dmitrieva, 2016). This has reduced the geographical boundaries
between people and countries. Collaboration is one of the biggest achievements gained to the
companies with the use of innovation. As of now one company having technology communicates
and initiates their activities without another company having other different resources. This
process provides ease to the companies to interact with other and use each other’s resources
efficiently (Zervas, Proserpio, & Byers, 2017).
Further, it should be noted that technology is one of the biggest tools that helps business
processes to initiate their business activities. Similarly, the companies present in the hotel and
hospitality industry of Australia uses the disruption in technology to secure their position in the
market. This technology has affected in both ways that is positively as well as negatively to the
companies in Australia. Airbnb is one of the biggest companies of hotel and hospitality industry
of Australia that is heavily impacted by the disruptive technology present the industry.
Introduction of technology in the field of hotel and hospitality positively impact on the interest of
the customers present in the industry (Rivera, Gregory, & Cobos, 2015).
Websites like Trivago became famous that helped the people in comparing different hotels and
affordable travel packages. This aspect increased the level of competition present in the industry.
Resulting to which people traveled to ideal locations at best time and in affordable prices as well.
The industry has become more flat as now more people can approach different companies
present in different parts of world. Introduction of technology in this industry has positively
impacted for the people and companies but included the level of competition as well. This aspect
also provided the opportunities to companies to initiate their sales online and contribute their
share in global business. Lastly, the disruption is providing more competitive advantage to the
companies providing accommodation services to the customers in the industry (Lee, 2016).
Nowdays innovation is playing major role in helping the companies to succeed in the industry. It
is providing them solution for operating their business successfully without facing barriers in
growth. This process is also providing opportunities to company to share each value and gain

value proposition as well. However apart from these opportunities, the industry is also impacted
with negative growth as disruption gives a threat of cyber attack to the companies. Data breach
may disrespect the interest of many companies present in the society (Melián-González, &
Bulchand-Gidumal, 2016). Technology also increased the burden of competition for the
companies and it increased the threat for large scale organization to get replaced with new and
competitive organization. Thus, it increased the pressure of the companies to invest large amount
in IT sector so as to remain under competence (Schegg, & Stangl, 2017).
Role of Disruptive Technology in Hotel and Hospitality Industry of
Australia
Airbnb Company made the best use of disruptive technology in their business, with the help
these resources the company adequately used all other resources and increased innovation for the
company. This aspect is also increasing the satisfaction level of the customers present in the
society. Further, it should be noted that the biggest role that disruptive innovation plays in this
industry is that it has increased the scope of business for different companies and provided more
satisfaction to the customers present in the market. In hotels, the services that were provided by
the human resource of the company have now converted with the use of disruptive technology in
the environment. Technological services like robots etc. have taken place of the manmade work;
surprisingly this activity has also increased the expectations of the customers in the market
(Wang, So, & Sparks, 2017).
Resulting to which, the companies have also started using more and more technology to match
up to the expectations of the customers. Role of disruption in the hospitality industry is to
provide easy accessible facilities to the customers while going or living in other destination.
Digital media disruption has also helped the companies to promote their brand worldwide and
help the prospective people to locate a good and suitable company for them in the external
market. Travel intelligence and payment have become easier for the people, the company also
have started using digital payment modes that is preventing them from fraud. Social media users
use the websites Wotif.com and Expedia Australia who helps as an online travel agent to them

and reduces the need of guides (Baum, 2015). Thus, it should be noted that below mentioned are
some of the key roles that technology plays in the hospitality industry of Australia:
 Chatbots: It is one of the latest innovations present in this industry. Chatbots are the
services that allow a person to interact with other person or artificial intelligence through
chat interface. As the customers in the industry are spending much time on messaging
app so this chatbots system eliminates various inefficient services present in the industry
and technologically converts them and induces greater satisfaction level for the people.
Airbnb and Hijiffy are some of the companies that actively takes part in rise of this
technology (Kandampully, Zhang, & Bilgihan, 2015).
 Price Transparency: As every detail is mention on the website of the companies and on
different websites like Trivago, so it gives the advantage to the customer to choose the
best option for them. Further, price transparency decreases the rates of average room due
to high competition.
 Distribution of work: In the absence of technology and innovations, this industry of
Australia was centered by some specific companies present in the industry. Nevertheless,
with the introduction of technology, much small and medium enterprise gained the
advantage to promote their activities in the external market. This process distributed work
in the Australian environment. Now only one organization is not holding the market share
instead many companies are working together and gaining profits in the external market.
 Rate of Change: With the use of technology the companies have now become competent
to use differentiated technology and apply the in activities of the business. With the use
of disruption in technology, the companies of Australia successfully developed their
resources and capabilities and increased the competitive advantage as well. The rate of
change in the activities of the company increased that made the Australian industry more
competitive. This aspect also increased the tourism activities in the country (Gretzel,
Koo, Sigala, & Xiang, 2015).
 NFC Technology: It is a process of wireless data transfer that enables the helps a person
to communicate with the nearby technology without even having internet connection.
This process implies capabilities in the activities of the business that helps the companies
in gaining the information about the target customers and providing them various offers

so as to make them avail the services of the company. This process also helps the
companies in providing personalized experience to the customers (Dredge, Airey, &
Gross, 2014).
Future Trends of Disruptive Technology in Hotel and Hospitality
Industry of Australia
The Australian hotel and hospitality industry is moving forward day by day with the use of
available feature present in the external market including disruptive technology. So, the future
trends present in the Australian industry in accordance to disruptive technology is discussed
below:
 Smart Room Keys: keeping the key in the bag safe all the time acts as a burden for the
people while travelling, so the companies should make use of smart room technological
keys to open the door. This hi-tech key facilities helps the customers to swipe their phone
unlock the room easily by the using application of company. Fingerprint activation
facility also helps the companies and eliminating the role of physical keys in the
environment (Lee, Hallak, & Sardeshmukh, 2016).
 Mobile communication and automation: At airports, the management has started
introducing the technique to technology driven check-in. With this effect, people will not
wait for long or stand in queue, the guests will check-in through their mobile application.
Also, digital innovation and social media will help the company to provide personalized
services to the customers present in the market (Malik, Lenzen, Ely, & Dietzenbacher,
2014).
 Digital conference facilities: With the increasing demand of business tourism, the hotels
have started feeling the need to retaining such customers present in the industry. Besides
offering high density Wi Fi to these people for conferences, now thee companies aims to
provide audio-visual (AV) and digital facilities for conferences to these people. This
additional feature will retain the customers will help the company to increase their sales
as well (Aurecon, 2018).

 Robots and infrared sensors: This type of technology is regarded as one of the most
attractive and refined technology that increase the interest of customers in the target
market. Companies present in the market should make use of the robot services for
clerical work like cleaning room, serving food etc. Also, infrared sensors should be used
to reduce the extent of disturbance caused to the customers due to housekeeping services.
The infrared sensors and body heat detector easily get to know whether the room is
occupied or not. This helps the customers to not use do not disturb tags and this facility
helps the management to easily initiate their activities without disturbing the customers.
Sophia is first robot that was formed in Hong-Kong, companies present in Australian
hospitality industry should make use of such robots to increase the artificial intelligence
facility and entertain the customer at the same time. These robots can be widely used as
entertainer as they have sharp and interactive program (Chan, Okumus, & Chan, 2018).
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that it is very
important for the organization present in Australian hotel and hospitality industry to make use of
technological disruption in order to succeed in the target market. The Australian industry is
highly qualified to make use of technology in their business and many influencers have started
using the same. Further, it important for organizations to make use of technology in their
business if they want to succeed. However, technology has both positive and negatively
influences, it depends upon the way that the companies are adopting and using it. The Australian
companies can easily introduce the above-mentioned trends as they have optimum technological
resources available with them. Lastly, disruption in technology provides ample opportunities to
companies to grow and succeed in the target market.

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