Impact of Digital Technologies on Hospitality Business

A qualitative investigation into
the impact of digital
technologies on hospitality
business

ACKNOWLEDGEMENT
I would like to express my sincere gratitude to my supervisor and mentor for
providing invaluable guidance and suggestion in the process of completing my research
report. This has helped me in completing this project and making it a full proof success
because of the timely instructions given by them.
I would also like to thank my friends and family for always encouraging me in
meeting with my desired goals on time across the different phases.

ABSTRACT
This research is on the topic impact of digital technologies in the hospitality industry in
respect to the Novotel London Canary Wharf. It presents about the relevance of the digital
technology along with the range of technologies which is being utilized within the hospitality
sector in UK. It presents about the various digital challenges which is being used by consumers
and the challenges faced by the organization on account of introduction of digital technologies
within the organization.

TABLE OF CONTENTS
ACKNOWLEDGEMENT...............................................................................................................2
ABSTRACT....................................................................................................................................3
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study..............................................................................................................1
Research aim and objectives........................................................................................................1
Research questions.......................................................................................................................1
Rationale......................................................................................................................................2
Significance.................................................................................................................................2
Research Scope............................................................................................................................2
Chapter Preview...........................................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
Theme 1: Range of the digital technologies used in the hospitality sector...............................3
Theme 2: Importance of digital technologies in the business...................................................4
Theme 3: Digital technologies used by the companies to generate awareness among the
customers.....................................................................................................................................5
Theme 4: Major challenges that are faced in the implementation of digital technologies......5
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
Research Type.............................................................................................................................7
Research Approach......................................................................................................................7
Research Philosophy....................................................................................................................7
Data Collection............................................................................................................................7
Sampling......................................................................................................................................8
Data Analysis...............................................................................................................................8
Reliability and Validity................................................................................................................8
Ethical Considerations.................................................................................................................8
CHAPTER 4: ANALYSIS AND FINDINGS...............................................................................10
Introduction................................................................................................................................10
Analysis.....................................................................................................................................10
CHAPTER 5: CRITICAL APPRAISAL, RECOMMENDATIONS & SUGGESTIONS............14

Interpretation of the results........................................................................................................14
Recommendations......................................................................................................................20
CHAPTER 6: CONCLUSION......................................................................................................22
REFERENCES..............................................................................................................................24
APPENDIX....................................................................................................................................26
Questionnaire.............................................................................................................................26

CHAPTER 1: INTRODUCTION
Background of the study
In the recent times the digital technologies are at boom and are highly contributing to the
growth and development of the several businesses and ultimately to the overall economy. The
digital technologies consist of the electronic system, devices, platforms that are used to store and
process the data. These technologies help in the faster and efficient transmissions, transactions
and increase the overall effectiveness of the business. In the form of automation of the processes,
artificial intelligence, cloud computing and other robotic devices the digital technologies are
applied and contributes in the profitability of the business (Bryukhovetskaya and et.al., 2020).
Apart from this the hospitality sector is also speedily growing and needs the support of such
technologies to foster its future growth. The current research project is undertaken to study the
impact of such digital technology in respect of Novotel London Canary Wharf hotel. The hotel
extensively uses such technologies so that the guest satisfaction and the business objectives are
able to be fulfilled. The various tools and techniques have been used to analyze the research
problem and derive appropriate results.
Research aim and objectives
Aim:- “To explore the impact of digital technologies in increasing the profitability of businesses
in hotel of the hospitality industry using Novotel London Canary Wharf as a case study using
qualitative data collection and analysis”.
Objectives:-
 To identify the range of digital technologies use in the hotel sector
 To determine the importance of digital technologies in business.
 To identify the appropriate digital technologies used by the company for customers
awareness.
 To explore the major challenges that may be faced by Novotel London Canary Wharf in
implementing digital technologies.
Research questions
Q.1 What is the importance of digital technologies in business?
Q.2 What are the appropriate digital technologies used by the company for customers awareness
Q.3 What are the major challenges that may be faced by Novotel London Canary Wharf in
implementing digital technologies?
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Rationale
The major reason to conduct the research work is to evaluate the impact of digital
technologies on the profitability and future growth prospects of the hotel (Zsarnoczky, 2018).
This is the main concern these days as with the advancements in the technology the growing use
and applications within several businesses, it is necessary to be identified that till what extent do
it contribute to the companies and ensure their prosperity.
Significance
The information that is gathered from the various investigation and study can prove to be
significant for its users in the market. The major advantage of the current study can be obtained
by Novotel London Canary Wharf hotel, as they can analyze the contribution that digital
technologies are making to the business and further can improve the performance by improving
its application. Apart from that it can be essential for the competitors in the business who can
derive competitive advantage by using the information and can compete effectively in the
business. Lastly it will be of use to the future researchers and scholars who can use the
information as the secondary source.
Research Scope
The scope of the current research undertaken by the company is limited to the extent that
only the qualitative characteristics shall be studied in respect of the impact of digital technologies
on the profitability of the businesses in the hospitality industry. The study shall be exploring the
several variants of these digital technologies that are used by the business to generate customer
awareness.
Chapter Preview
This section of the study includes the research topic, its aim and objectives for which the
research is undertaken, questions that shall be answered within the research, background study
about the organization and the rationale for the conducting the study. The introductory section
shall also be including the significance of the study to the various associated parties to research.
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CHAPTER 2: LITERATURE REVIEW
Theme 1: Range of the digital technologies used in the hospitality sector
As per the opinion of the Zsarnoczky (2018) there are a variety of digital technologies
that are used by the companies in the hospitality sector to improve the performance of the
business and generate greater profitability. The most commonly used digital technology that has
contributed to building the guest satisfaction in the hotel is the automation of the check-in and
the check-out procedure. This helps in avoiding unnecessary delays that are caused to the guests
by waiting in the long queues at the reception. This shall improve the experience of the visitor
ultimately contributing to the loyalty of the brand. On the contrary Núñez-Merino and et.al.
(2020) specifies that the application of these digital technologies also poses the challenge to train
the guests in order to use it viably. Also it increases the cost of the services which may not attract
a batch of the customers and the company shall tend to lose them. If the customers are not tech
friendly then in that case they might resist the change and shall not be satisfied by the
introduction of this new range of technology in the hotel. Shamim and et.al. (2017) evaluates that
digitalized room keys are the other innovation in the range of digital technologies that are used
by the hospitality sector. These digitalized form of room keys replaces the management of the
duplicate keys and also the responsibility of the guest to handle the keys carefully. Many a time
the guest misplace the keys and accordingly arranging a duplicate key is a tedious job for the
management.
As per the views of the Khanra and et.al. (2021) digital technology like chatbots have
contributed majorly to generating performance for the company. This helps the hotel and its staff
stay connected with its guests and know their expectations, requirements, complaints, feedbacks
etc. Providing high responsiveness to the guests shall enhance their experience, build loyalty for
the brand and contribute to the revenues of the hotel. Against the opinion Elia, Margherita and
Passiante (2020) mentions that these technologies are highly expensive and shall add on with the
cost. The management must conduct the cost-benefit analysis to ensure that the company is able
equivalent performance in terms of profit as the costs are adhered to. This may also restrain the
brand from assuming the benefit from the market penetration cost strategy which also develops
competitive advantage in the industry. Lember, Brandsen and Tõnurist (2019) presents that the
robotic devices that are used by the hotels these days are increasing the efficiency of the
operations and services that are provided to the customer by the business. Apart from that it can
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