Impact of AI Technology on Hospitality Growth: A Hilton Hotel Analysis

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This research project investigates the impact of Artificial Intelligence (AI) on the growth of the hospitality industry, with a specific focus on the Hilton Hotel. The study aims to analyze how AI technology influences the growth and development of hospitality organizations, examining the role of technology, the implementation of AI, and providing recommendations for effective integration. The research employs a qualitative approach, utilizing a questionnaire for primary data collection, with simple random sampling and thematic data analysis. The literature review explores the role of technology in the hospitality sector, discussing various forms of technology and their impact on business operations, customer satisfaction, and competitive advantages. Findings highlight the importance of AI technology for the hospitality industry, emphasizing its positive impact on customer satisfaction, business growth, and competitive capabilities. The research concludes that AI-enabled technology is crucial for the survival and growth of hospitality organizations, offering significant benefits in terms of customer service and operational efficiency.
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RESEARCH PROJECT
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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
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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.
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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
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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?
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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
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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
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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
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growth of hospitality industry. Is powered by algorithms and data driven logic and this is going
to make significant impact on growth of hospitality organisation. With help of AI organisations
can improve convenience for customers such as customers can the content of website of
organisation in their native language. This increase is there convenience and they are better able
to understand offerings of hospitality organisation they are interacting with. 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.
Buhalis and et.al., 2019 has opinion industries using several forms of AI powered
Technology and in this person customer service with use of AI is also a way in which air can
impact growth of hospitality organisation. With help of this technology introduction of air
powered Hotel concierge robot. With help of AI powered Hotel concierge robot hospitality
industry can decrease wait time in line provide increase efficiency in hotel operations and can
surprise get in hotel with innovative and unique tool. In this use of chatbots have become very
normal in hospitality organisation as many of the big hospitality organisations are using chatbot
for communicating with guest and with the help of this they can also provide customer service.
Overall AI powered technology has affected hospitality industry in several ways and is also
making significant impact on its growth. Organisations that are able to adopt and operate with
application of technology are able to grow faster and better than their competitors and
organisation who are not able to adopt advanced technology and AI powered technology.
Implementation of AI technology in hospitality industry
As stated by Cain, Thomas and Alonso Jr, 2019 there are several ways in which a
technology can be implemented in hospitality industry. In person customer service is a way in
which AI powered Technology can be implemented in hospitality industry in which AI powered
robot included. Power Technology has significant potential to grow in future and robots that are
powered by artificial intelligence are presently also able to deal with basic problems that guest in
hospitality organisation face. Concierge robot is also an Technology included through which in
person customer service can be provided by AI powered Technology. This is also a way through
which AI technology can implemented in hospitality industry. Data Analytics include collecting
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and data from different sources and analysing them in such a way that organisations can use
them for decision making. This data can be of several types including data regarding market
factors competitors and customers of the organisation. Data available in in large quantity enables
to get important information and decisions become more reliable. For example, data about
customers enables hospitality industry to make decisions that are personalized and customised.
Bowen and Morosan, 2018 says that Chatbots and messaging has become very common
Technology that is being utilised in hospitality industry. Chatbot and messaging are AI powered
technology in which customers queries and problems can be solved by AI Technology. In this
questions that customers are most likely to ask from customer service they are developed in
machine and their answers are also developed in technology that whenever customer ask that in
question AI can answer them. Through this time and efforts of employees can be saved and they
can focus on important task. Booking and staff interaction is also a way through which AI
powered Technology can help hospitality industry and this can be implemented in hospitality
organisations. AI enables customers to make hospitality service booking and this can be done
through website and different channels that hospitality organisation develop. AI enabled
technology can be used by customers to book isolated and preferred dates. In a same way will
also enable hospitality organisations to effectively predict utilities uses in which they can
improve their revenue management and help environment with energy water and waste
monitoring tools.
Li, Bonn and Ye, 2019 states that other than operations of hospitality organisations from
which they provide services to customers Technology also enables effective functioning of
hospitality organisation. This include smart hiring by hospitality organisations in which they can
make hiring using AI enabled Technology. Hospitality organisations can use machine learning to
hire Hotel employees in which they can go beyond resume model of hiring. In hiring through AI
Technology hospitality organisation uses personality profile of existing team member and
selection test based on gamification through which AI enabled Technology can determine
whether a candidate is suitable for organisation or not. This can save time and effort of
hospitality organisation which is consumed buy long hiring process.
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RESEARCH METHODOLOGY
Research type
It refers to the type of research which is being implemented in the research project. There
are generally two types of research which includes qualitative and quantitative. Qualitative
research includes the use of non-numerical. This means that under this research non-numerical
data in the form of text, audio and videos are used (Bansal, Smith and Vaara, 2018). Here the in-
depth study concerning the research is being performed. On the other hand, quantitative research
is concerned with the use of numerical figures and facts. Here statistical and mathematical
research is being performed over the quantifiable data (Aspers and Corte, 2019). With regard to
the current study, qualitative research is being performed. This is because to create and have a
better justified explanation with regard to the topic. Also with the use of qualitative research an
in-depth research of the topic will be made possible.
Research approach
It refers to the plans and procedures with regard to the research. It is also of two types
including inductive and deductive approach. Inductive research is concerned with the research
questions and on the basis of that the data is being collected, which is again use to generate
hypothesis and observation. Here a formation of new theory is being performed along with
looing the aspects with the new perspective. On the other hand, deductive approach is related and
begin with theory, this means that it initiates with theory and on the basis of which hypothesis
are generated that will lead towards the direction of data collection and analysis. Here the
existing theories are tested (Armat and et.al., 2018). With regard to the current research inductive
approach is chosen so that a new perspective can be developed and evolved with regard to the
topic along with justification of the qualitative research.
Research Philosophy
It refers to the belief of the researcher with regard to the in which data with regard to the
phenomenon is being gathered, analysed and used. It is of two types namely interpretivism and
positivism. In case of interpretivism the entire meaning and outcome of the research is concerned
with the interpretation of the research. This means that it is dependent upon the researcher belief
that what it thinks about a specific phenomenon. This philosophy works on the concept that
reality and knowledge are socially constructed by human beings, which means that whatever
they will belief will lead to the construction of the knowledge (Ryan, 2018). However, in case of
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positivism, only those objects and events that are experienced directly should be taken for
scientific inquiry. Here the researcher will play its role in the form of observing the research
finding. Here the personal belief and perspective of the researcher is of no involvement. With
regard to the present research, interpretivism philosophy is used. This is because it will lead to
have a better justification with the qualitative and inductive approach wherein a new theory is
being developed with respect to the clarification of the objectives.
Data collection
It refers to the collection of the data that is being used by the researcher in the research.
Data can be of two types based on the source of collection namely primary and secondary data.
Primary data refers to the first hand data that is being collected for the first time. It is directly
collected from the source and it is of highest authenticity and validity. It can be collected from
the mode of questionnaire, survey, observation, interviews and many more. However, in case of
secondary data, information is being collected either from the primary sources and already
published information. This form of data is readily available. Books, journals, websites, articles,
and various other are counted as best sources of secondary data (Ruggiano and Perry, 2019). In
addition of this, it is to be noted that the collection period with regard to primary data is more in
comparison of secondary data, with respect to the current research, a combination of both the
qualitative and secondary sources of data will be used so that the more detailed and clarified
justification with regard to the topic is being presented.
Sampling
It is one of the important technique with respect to the research. Sample refers to a group
of population that is showing and interpreting the same qualities and feature that the entire
population present. Sampling enable the researcher to have an analysis of the entire population
and a large share of population in a short time. It is again of two types, probability and non-
probability sampling. In case of probability sampling, an equal chances of selection is being
given and available to every participant. This means that every member of the population have
equal chances of selection. This is also known as simple random sampling. However, in case on
non-probability sampling there is no equal chances of selection (Etikan and Bala, 2017). In-fact
in case of this sampling there are many cases that the members of the population have no
chances of being selected. However, with regard to this research probability sampling is being
implemented so that better explanation of the qualitative research is to be presented of the
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