Voice Recognition Technology in Hospitality: A Strategic Plan for TUI Australia

Assignment 2: Strategy Plan
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Contents
Introduction..............................................................................................................................3
Strategy.................................................................................................................................... 4
Short-term strategy to launch the MVP................................................................................4
Long-term strategy to launch the MVP.................................................................................6
Product/services roadmap and minimal viable product/services/process for “Voice
Recognition”............................................................................................................................ 8
Issues in Implementing the Voice Recognition Technology..................................................10
Recommendations.................................................................................................................. 11
Conclusion............................................................................................................................. 12
References.............................................................................................................................. 13
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Introduction
The aim of developing this strategic plan report is to discuss both long-and short-term
strategies for installing MVP in the day-to-day operational and organisational tasks of TUI
Australia. This report is more of a short-term strategic plan of launching the MVP. It also
tries to validate the product and procedure of implementing it in the organisation. It consists
of mission, goals, objectives, tactics, and strategies used by the TUI Australia. It also
consists of a small discussion from case studies. Furthermore, it also explains the cost-benefit
analysis of using the voice recognition devices. In addition to this, it also talks about long-
term goals to iterate the voice recognition services. It also consists of a base plan to
implement voice recognition devices in the tourism sector. Furthermore, the types of issues in
implementing the voice recognition approaches are also mentioned. The report ends with
some recommendation for the effective use of the technology in business operations.
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Strategy
Short-term strategy to launch the MVP
Company’s Overview
TUI Australia is one of the leading travel operators in the economy. The organisation is a
sub-division of TUI group. Earlier, the company was known by the name of Thomson Travel
and is headquartered in England. It deals in booking flights, travel packages, hotels, and
cruises.
Mission
The TUI Australia aims at making the voice recognition technology an integral part of a
business functioning, especially the communication process.
Vision
To provide quick and hassle-free access to organisation’s information and services to every
stakeholder of the hotel firm
Goals
 To carry out day-to-day tasks by making use of voice recognition.
 To make hospitality management a simple and easy-to-handle task by implementing
advanced technology like voice recognition and other biometrics
 To improve the reliability in resolving the problems of the customers.
 To provide the organisation with a greater mobility.
 To increase organisational performance
Objectives
 Using the voice recognition like a virtual concierge service.
 Using the voice commands in requesting room service, reserving a table, or booking a
room.
 Using voice recognition to protect the self-servicing apps.
Case Study
Murphy, et.al, (2012) argues that using various biometric methods like voice-recognition is
the key to customer satisfaction. Many research works have shown that the satisfied
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customers lead to increase in the brand value, increases marketing through the word of
mouth, and higher occupancy rates. Therefore, organisation should implement tech-savvy
approaches in order to enhance customer satisfaction. Voice-activated hotel rooms save a lot
of customer's time that they value so much. In the paper, it was determined that on an
average, a customer spend 12 minutes adjusting to the room condition. This includes setting
up the thermostat, figuring out the lights, etc. Having a voice-operated system can save a lot
of time. In addition to this, these systems can also be used at the time of check-in and
checkout. This can be time-saving and increases customer loyalty.
The paper also argues that voice-operating devices can assist in giving guests a more
personalised experience. They can make them feel special and valued. They can feel more at
home during their hotel stay. All of this can help the organisation to become exclusive and
gain an edge over their competitors. This doubles the customer base of those guests who seek
a luxury stay.
For the organisations dealing in the development and sales of smart technology, hotels are the
major customers. In the past five years, hotel businesses are spending a large chunk of their
funding into upgrading and equipping themselves with the most advanced technology and IT
solutions. In one of the research study, it was determined that nearly 60% of the hospitality
players, such as Flight Centre, Thomas and Cook, Marriott International, TUI Australia, etc.,
are putting a huge share of money in advancing themselves in order to sustain their
competitive position. Nearly 50% of hotel organisations believe that equipping customers
with the technology can be very helpful in increasing the customer satisfaction and their
loyalty.
Citing the example of Marriott International, the paper highlighted that the organisation is
bonding with one of the leading software company known as ‘Runtiz’. This will take care of
Marriott International’s data management system and software development to provide
security to the data against any theft or illicit activity. The main aim is to develop a trusted
relationship with the loyal customer and provide ground to the relationship between the
organisation and the customers. By improvising their current technology, Marriott believes
that it can strike a chord in the hospitality market and make the working environment
productive for the employees. Marriott is planning to implement the voice recognition
technology across all its premises and properties locating at different locations.
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According to the CEO of Marriott International, there are innumerable benefits of installing
voice recognition devices in the premises. The first and foremost is the increase in customer
retention rate. Guests are more inclined towards a particular brand that offers the voice-
controlled services during the whole stay at Marriott. They can make phone calls, order food,
control the room temperature and lighting just by commanding through their voice. This can
be very helpful in providing them with a level of satisfaction. This increases the customer
satisfaction and further increases the customer loyalty. All this ultimately tends to enhance
the market share and company’s revenue. These devices can also be used to collect the
customer data and preference. Based on the data analysis, Marriott can tailor its services
accordingly and target the guest and clients.
Cost-Benefit Analysis
Cost-benefit analysis is a systematic way to estimate the weaknesses and strengths of options.
In the context of TUI Australia, the cost of installing the voice recognition devices can be
bifurcated into two sections, one is direct cost and other is an indirect cost. The former can be
defined as the cost occurred in buying the devices, providing training to employees, offsite
factors, installation cost, etc. In contrast to this, the indirect cost can be defined as the
opportunity cost which is the fund that TUI Australia should have invested in the secondary
opportunity apart from voice recognition devices (De Ascaniis, et.al, 2015).
Table 1: Costing of the Single property of TUI AUSTRALIA (Short-term)
Particulars Costs in AUD
Instruments and License cost $10000
Cost of Installing $2300
Employees’ Training $2100
Manual printing cost $1500
Offsite expenses $1700
Operation and Maintenance $1000
Miscellaneous $400
Total $19000
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