HAT303 - Hotel and Accommodation Management: Sector Issues Report

This report provides an analysis of the current issues and challenges faced by the Australian accommodation sector. It begins with an introduction to hotel and accommodation management, highlighting the importance of quality standards and operational efficiency. The report then delves into the impact of disruptive technologies, such as Airbnb, on traditional lodging properties, discussing the challenges of hiring and retaining staff, changing marketing trends, and operational issues. The analysis explores the loss of loyal customers due to competitive offers, the changing expectations of guests (including demands for free Wi-Fi, unique experiences, and quick check-in/out), and the impact on revenue generation and company reputation. The report concludes by emphasizing the need for traditional lodging systems to adapt to technological advancements and customer demands to maintain competitiveness. The references include articles and reports from various sources, including academic journals and industry publications, providing a comprehensive overview of the subject matter.

Management
Hotel and accommodation management
Student’s name
12/12/2019

Hotel and accommodation management 1
Contents
Introduction......................................................................................................................................2
Issues or challenges faced by lodging properties............................................................................2
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

Hotel and accommodation management 2
Introduction
When we talk about the hotel and accommodation management, it mainly highlights the two
main services, firstly, the provision of overnight accommodation for the people traveling away
from their home and secondly, people who love to dine out of their homes. Therefore, it
highlights that accommodation is one of the necessities of international as well as domestic
travelers. Other than this, construction management ensures good traveler experience for hotels
to have well- set quality standards for operations and safety, hygiene and health policies. For all
this, the accommodation manager is well trained to take care of the quality standards, managing
the budget and staff for the long-term success generation (Gomezelj, 2016).
Further, when we analyzed the data about the accommodation outlook of Australia it seems to be
strong, and reflecting the stronger yet increased demand for hotel bookings and generate growth
in domestic as well as international perspective. But with time it is also seen that the innovative
approach to tourism accommodation espoused by Airbnb and the other many companies who
work is as similar as this company has (Harvard real Estate review, 2018). Such innovation in
the market offers a certain set of benefits such as cheaper, more convenient and a simpler
process. Hence, all such alternative accommodation and ride-sharing platforms are majorly
changing the customers or public perceptions in terms of traditional hospitality businesses (Park,
and Allen, 2013).
Issues or challenges faced by lodging properties
With the enhancement of technology, it is seen that with time, there is the growth of disruptive
technologies such as Airbnb and many more. As, they have changed the people’s expectations
when it comes to traveling. Therefore, it is seen that the hospitality business is generating large
profits but they at the same time many traditional hostels are facing many challenges and issues
such as hiring and retaining the staff, change in the marketing trends and dynamics (Varma, et al
2016). Moreover, operational issues, the rising cost of the daily consumables, housekeeping
issues. Other than this, it also causes the change in the guest expectation and an irregular cash
inflow in the traditional businesses has majorly affected (EHL, 2019).

Hotel and accommodation management 3
In terms of critical analysis, the issues, which are highlighted and faced by the lodging
properties, are losing loyal customers. In this, due to the rising of the multiple offers, which the
disruptive hotels tend to give to loyal customers, tends to generate challenges for the traditional
lodging properties. All these offers mainly are highlighted on the social sites of the Airbnb and
the other sites. This also displays the customers who do not rely on a single hotel (Oskam, and
Boswijk, 2016). From the customers' point of view, it is seen that customers tend to view eye-
catching schemes, which benefits them financially as well as in terms of services. Such
enhancement in the technology in the hotel industry tends to attract the large base of customers,
due to such innovation fulfills the customer’s expectation, which generally provides easiness,
security and comfort and targets the larger base in terms of customers. Due to this reason,
traditional lodging companies are losing their loyal customers and are affecting their revenue
generation and profits at large (Sobhe, 2018).
Secondly, in terms of challenges is the major change in the guest expectations. These days every
customer in general when using the hotel services tends to expect or demand a lot than before.
Such as free Wi-Fi facilities, unique stay experience, pick up and drop off facilities, luxury
facilities at the stay system, entrainment facilities, quick check inn and checkout facilities are the
way due to which the customers get most affected and expect more. But in terms of these
aspects, traditional lodging systems get fail and are most affected by disruptive technologies
(Hotel Online, 2017). This aspect not only impact the loyalty of the customers but along with
this, it also impacts the cash inflows, the irregular formation of the revenue generation affects the
profit-making and at large the reputation of the company in the market. Such reasons are for the
enhancement of the competition in which disruptive technology in today’s time win and
traditional lodging system fails to fulfill the expected requirements and facilities and thus, faces
the issue of revenue generation as well as reputation point of view (Blal, Singal, and Templin,
2018). Other than this, employees who worked in hotels were also facing an issue of wages and
salaries as hotels are labour- intensive operations, which has majorly affected the employment
opportunities (Fridman, 2016)
Thus, such enhancement in the technology has majorly yet negatively has affected the traditional
lodging properties, not only in terms of the facilities which the newer hospitality sectors are
providing to the customers, the reputation, revenue, profits all are lost by the traditional lodging

Hotel and accommodation management 4
systems (Tohill, 2018). Therefore, this all because of the technology due to which customers
expect more than usual and that demands are not being fulfilled by the traditional properties. The
systems or the applications, the services which are created and provided to the type of customers
a company is seeking to serve generates more income, profit, and reputation and thus, such
aspects have a major impact negatively on traditional companies and success over the long term
(Guttentag, 2015).
Conclusion
Hence, from the real point of view, it is seen that not only products are changing and improving,
but along with this, markets, organizations and their process of workings are also changing. The
enhancement in the technology such as internet speed, disruptive technologies, mobile access
various applications having an exponential growth in terms of user and revenue generation. All
these things highlight that with time the traditional lodging system has forgotten to connect to
people, situation and things. Secondly, they are unable to collect information about customers,
inventory and the potential growth in the market, unable to empower the companies processes,
not able to develop tools in order to generate overall value and lastly unable to share and create a
community which majorly harms the traditional lodging properties at large. Thus, their revenue
generation system as well as reputation are mainly affected and are tapped by many customers
the newer, simple and easy to use disruptive technologies.

Hotel and accommodation management 5
References
Blal, I., Singal, M. and Templin, J., (2018) Airbnb’s effect on hotel sales growth. International
Journal of Hospitality Management, 73, pp.85-92.
EHL.(2019) Leading through Disruption in hospitality [Online] Available from:
https://hospitalityinsights.ehl.edu/leading-through-disruption-hospitality [Accessed 13/12/2019]
Fridman, A.(2016) 3 ways technology is disrupting the hospitality industry [Online] Available
from: https://www.inc.com/adam-fridman/3-ways-technology-is-disrupting-the-hospitality-
industry.html [Accessed 13/12/2019]
Gomezelj, D.O., (2016) A systematic review of research on innovation in hospitality and
tourism. International Journal of Contemporary Hospitality Management, 28(3), pp.516-558.
Guttentag, D., (2015) Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current Issues in Tourism, 18(12), pp.1192-1217.
Harvard real Estate review.(2018) A new era of lodging : Airbnb impact on hotel, travellers and
cities [Online] Available from: https://medium.com/harvard-real-estate-review/a-new-era-of-
lodging-airbnbs-impact-on-hotels-travelers-and-cities-de3b1c2d5ab6 [Accessed 13/12/2019]
Hotel Online.(2017) How disruption is driving change for hotels [Online] Available from:
https://www.hotel-online.com/press_releases/release/how-disruption-is-driving-change-for-
hotels/ [Accessed 13/12/2019]
Oskam, J. and Boswijk, A., (2016) Airbnb: the future of networked hospitality
businesses. Journal of Tourism Futures, 2(1), pp.22-42.
Park, S.Y. and Allen, J.P., (2013) Responding to online reviews: Problem solving and
engagement in hotels. Cornell Hospitality Quarterly, 54(1), pp.64-73.
Sobhe.A.(2018). Digital disruption in the Hospitality industry reinforces customers experience
[Online] Available from: https://www.hospitalitynet.org/opinion/4086474.html [Accessed
13/12/2019]

Hotel and accommodation management 6
Tohill,M. (2018) Airbnb : Analysing the impact of disruptive innovation [Online]Available
from: https://www.stuff.co.nz/southland-times/news/107365971/airbnb-analysing-the-impact-of-
disruptive-innovation [Accessed 13/12/2019]
Varma, A., Jukic, N., Pestek, A., Shultz, C.J. and Nestorov, S., (2016) Airbnb: Exciting
innovation or passing fad?. Tourism Management Perspectives, 20, pp.228-237.