Impact of AI Technology on Growth of Hospitality Industry

RESEARCH PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................6
RESEARCH METHODOLOGY..................................................................................................11
Research type.............................................................................................................................11
Research approach.....................................................................................................................11
Research Philosophy..................................................................................................................11
Data collection...........................................................................................................................12
Sampling....................................................................................................................................12
Data analysis..............................................................................................................................13
Ethical consideration.................................................................................................................13
Reliability and validity..............................................................................................................13
Research limitation....................................................................................................................14
DATA ANALYSIS.......................................................................................................................14
RESULT & DISCUSSION............................................................................................................21
REFERENCES................................................................................................................................1
Questionnaire..............................................................................................................................5
RESEARCH PROPOSAL........................................................................................................6

Abstract
This research has involved investigation about AI and its impact on growth of hospitality
industry. Aim of the research was to analyse impact of AI technology on growth of hospitality
organisation. Use of AI is increasing at very fast pace and hospitality industry is one of the very
important industry using AI enabled technology and to understand how AI impact growth, this
was reason for carrying out this research. For the purpose of this research Hilton Hotel was
considered and one of the reason for selecting Hilton Hotel was that it is one of the biggest
hospitality organisation and also is highly active in use of technology in organisation. This
research is qualitative research and in this research data collection and analysis will take place
through the approach of qualitative research. The research was primary research in which
questionnaire was used for the purpose of collection of data. Sampling for collection of data was
simple random sampling and thematic data analysis was adopted for the purpose of this research.
In order to develop context of primary research literature reviews was conducted so that primary
research can be effectively carried out. Results outline that majority of participants consider that
AI technology is important for hospitality industry and majority of participants also agree that
Hilton Hotel uses effective technology and concerned with positive impact of technology
participants consider customer satisfaction be very important. Conclusion of the research is that
use of technology have become very important for growth and survival and have not remained as
choice of organisations. AI enabled technology can provide several benefits to hospitality
organisation regarding their growth and competitive capability.

INTRODUCTION
Technology has become central to effective in functioning of all industry and economic
sectors and hospitality industry is also increasing use of technology in its operations and
functioning. Artificial intelligence that is advanced form of Technology is being significantly
used and leveraged by hospitality organisation and in this they are using technology in several
ways.
Artificial intelligence is concerned with the simulation of human Intelligence and
machine that a program to think like humans and act like humans. As stated by Cui, van Esch
and Jain, 2021 Artificial Intelligence can be applied for any machine that exhibit features
associated with human mind that is learning and problem solving. Technology enabled with AI is
capable of performing several activities and tasks that conventionally are carried out by humans.
This includes decision making and identifying solution of problems. Technology enabled with
AI can perform several task that are carried out routinely and does not involve frequent changes
in task and activities. Technology enabled with artificial intelligence is continuously improving
through deep learning and this is creating Paradigm shift in how it is used in different industries.
According to Yadav and Pavlou, 2020 increasing requirement of personalization and data
analysis for improved decision making is requiring that hospitality organisations utilise
Technology for personalization and data analysis. However these are only few benefits of using
AI enabled Technology among other. Case study for this research that is Hilton Hotel also use AI
enabled technology to improve its practices and developed whole New AI enabled concierge
robot that is known as Connie and this robot is transforming experience of Guest in hotel.Connie
is considered as first ever enabled robot that has height of 2 feet and perform activities just like
human concierge. Attributes of Connie that has been developed by Hilton Hotel include-
 Uses travel databaseWayBlazer
 It is based on Watson AI of IBM for computing intelligence
 Provides real time recommendation to guest for sites that are visit worthy and attraction
 Is able to answer queries of customers in the spot
 Is able to learn from frequent customer interaction to refine its responses
 Give excellent care and support as robot concierge

AI enabled Technology is being used for hospitality organisations and administration and
functioning of regular task and activities of organisation as well as for increasing customer
satisfaction and providing them improved service. Encouraged by increasing use of AI enabled
technology and robots in hospitality industry this research is being carried out to understand role
and importance of AI technology in hospitality industry and its growth.
Hilton Worldwide
Hilton worldwide holding Inc. Formerly known as Hilton hotels Corporation is an
American multinational hospitality company. It was founded in 1919 in Cisco Texas United
States bye Conrad Hilton. Companies headquartered at Virginia United States and operate at
6478 locations worldwide. Key products of the company are hotel and resort and employ around
173000 employees. Hotel manages and franchises broad portfolio of hotel and resorts. Titan
worldwide has it existence in around 118 country and corporate around 983 465 room. Hotels
690 hotels are managed and 5405 hotels are franchised. Number of locations and rooms operated
by Hilton worldwide exhibits significant presence all over the world. Hilton Hotel has 18 brand
across different market segments Conrad hotel and resort Hilton hotel and resort Double Tree by
Hilton are among other brands operated by Hilton Hotel. Providing high class and luxurious
Hospitality Services competitors of Hilton Hotel include Marriott, IHG, Hyatt, Holiday Inn,
Intercontinental, Four Seasons and Peninsula hotels.
The research is best on impact of technology on growth of hospitality industry and case of Hilton
Hotel has been considered for the research. Aim and objective of this research are-
Aim:
To analyse the impact of AI technology on growth of hospitality industry. A research on Hilton
hotel.
Research Objectives:
 To evaluate role of technology in hospitality industry
 To analyse impact of AI technology on growth of hospitality industry
 To investigate implementation of AI technology in hospitality industry
 To recommend how AI technology can be effectively implemented.
Research Questions:
 What is the role of technology in hospitality industry?

 How AI is impacting on growth of hospitality industry?
 What are the ways for implementation of AI technology in hospitality industry?
 How AI technology can be effectively implemented?
LITERATURE REVIEW
Theme-1 Role of technology in the hospitality industry
Type of technology
Kabadayi and et.al., (2019) said that there are various forms of technology that is being
used in the hospitality industry. Right from Wi-fi, digital conference, smart room keys, and many
more, are the important part of the hospitality industry. it would not be wrong to said that the
technology is an integral part of the hospitality industry which lead to the running and
performance of the business operation. Use of CCTV cameras for the security of the guest are
also very common in this industry. Technology and the hospitality business operations are two
simultaneous factor that operate in co-ordination.
Likewise, Padrón-Ávila (2020) also said that apart from the use of technology in the
business operation of the hospitality industry, the role of such technology begin from starting.
This means nowadays the concept of online booking is very common. This means that with the
use of technology it would not be wrong to said that the area of operation of the hospiut5aolity
industry got more widen up. With the inculcation of technology in the hospitality industry they
can not only able to attract the customer but at the same time also achieve their objectives too.
Role of technology:
Khatri (2019) illuminates that the technology plays an important role in the hospitality
industry. Right from the performance of the business operation till assisting it towards the
direction of its objective, technology plays an important role. With the incorporation of
technology in the hospitality sector and its operation the efficiency of the operation and the
sector got risen up. Likewise, with the use of technology the sector is able to serve better to their
guest in the form of raising their comforts and enabling them better services.
However, on a critical note Kansakar, Munir and Shabani (2019) argued that the
involvement of technology in the hospitality industry plays an adverse role in terms of affecting
the business of the sector. This means that when technology is being inculcated in the business
operation wherein apart from online booking, reviewing segment also included. People with the
use of this segment can affect the image of the hospitality sector and the concerned hotel in a

severe manner. This is because any wrong and negative comment and review over that section
will not only affect the image of the hotel but its entire business will also be affected in terms of
affecting its sales and the revenue. Thus, it would not be wrong to said that apart from positively
impacting the hotel industry, use of technology is having a serious adverse impact too.
However, Rahimi and et.al., (2017) elucidates that the role of technology boosts the sales
and the revenue of the entire industry. This is because with the use of technology in the industry
its scope and the area of operation has raised up. This means that now the hotel industry is not
limited up-to the area of its location but with the use of technology they can serve at global level
too. Technological inculcation enables the hotels to serve their services across the globe. Thus, it
means that with the use of technology, guest can make their reservation from any part of the
world.
However, critically Buhalis and et.al., (2019) annotates that although the scope and area
of operation has widened up but it will give rise to raising the intensity of competition. This
means that with the use of technology and widening the scope the level of competition at the
global level has also risen. As now the hotels are competing at the global level so the intensity of
competition has also risen because now along with competing in the home country they have to
compete at global level too. Along with rising the level of competition the sales and the profit of
the entire industry is also affected.
Kandampully, Zhang and Jaakkola (2018) also said that the role of technology in
hospitality sector has risen its success in terms of leading their business as new lead. This is
because with the use of technology, now the hotels are able to better serving their guest in the
form of availing them technologically advanced services. With the use of technology in the form
of smart keys, guest are free with regard to their safety. Likewise, using of CCTV cameras in the
hotel premises will also lead to the raising the safety not for the guest but with respect to hotels
too. Likewise, use of online booking facility and the digital payment also make the transaction of
the customers with the hotels as much easy and convenient. In the same way use of technology in
the form of Wi-Fi or other technologically advanced features also lead to raising the level of
guest satisfaction which will again lead to benefits the hotel in terms of availing better rush and
crowd of customers. it will act as a word to mouth promotion of the concerned hotel.
On the contrary to this, Mmutle (2017) critics that the use of technology in the hospitality
sector has broaden and double up its expenses. This is because with the inculcation of technology

in the business operations, the amount of expenses of the hotel also got risen up. This means that
right from installation of new technology, till its upgradation and maintenance, hotels have to
spend a lot of amount over that. Thus, if the hotels will not get the adequate percentage of sales
in terms of guest then they may also fall in the situation of loss because incurring these expenses
are counted as fixed expenses which they have to incurred whether they got adequate guest or
not. Thus, it would not be wrong to said that along with bringing profits and revenue towards the
business, the percentage in the form of technological adaptation is also very high which the hotel
industry need to bear.
Impact of AI Technology on Growth of Hospitality Industry
As stated by Yang, Henthorne and George, 2020 artificial intelligence is advanced form
of Technology in which simulation of human intelligence in machine is used to carry out
different organisational activities. Artificial Intelligence can make a significant impact on growth
of hospitality industry. AI has made impact on how hospitality industry, used to operate and
perform previously in several elements of hospitality are included. Artificial intelligence
Technology can make impact on growth of hospitality industry by enabling it to increase
personalization and improve customer experience. Artificial intelligence enables organisations to
collect and use information about its customers and on the basis of customers information and
data hospitality organisation can make positive effect on it growth and development. Artificial
intelligence can contribute in growth of hospitality industry in several ways and this includes
saving time and cost by means of automation and optimisation of routine processes in hospitality
industry. In addition to this artificial intelligence also contribute in growth of hospitality industry
by improving capability of human resources in organisation through its assistance. Artificial
intelligence enables improved decision making in organisation and through this result of decision
also becomes better.
In words of Samala and et.al., 2020 Artificial intelligence can help hospitality industry
and its operational activities and at the same time also increase is regular or operational
efficiencies of organisation and enables to make faster decisions. Concerned with growth one of
the very important element is ability of organisation to complete industry and artificial
intelligence enables organisations to make decisions to outperform competitors. AI help
organisations in getting information and data about competitors and through this information and
data they can make decision to perform better than competitors and this way AI contributes in