MGM3115 - Innovation in Tourism and Hospitality: Report Analysis

This report analyzes the challenges and innovations within the tourism and hospitality industry, focusing on the Australian Heritage Hotel. It explores the need for adaptation to modern customer preferences, emphasizing the shift towards modern amenities and the importance of staff training to meet evolving demands. The report also highlights the role of technology orientation, including the integration of fast services and technological amenities, to stay competitive. Recommendations are provided for heritage hotels to embrace social media, hire technologically skilled employees, offer customer privilege programs, and implement modern technologies without compromising their unique style. In conclusion, the report underscores the necessity for heritage hotels to adapt to technological advancements and customer expectations to ensure survival and success in the competitive hospitality market.

Running head: INNOVATION IN TOURISM AND HOSPITALITY
Innovation in Tourism and Hospitality
Name of the Student:
Name of the University:
Author note:

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Overview of the company......................................................................................................2
Challenge faced by the hotel..............................................................................................2
Customer preference for modern amenities.......................................................................3
Staff training.......................................................................................................................3
Introduction of fast services...............................................................................................3
Technology orientation......................................................................................................4
Recommendations......................................................................................................................4
Conclusion..................................................................................................................................5
References:.................................................................................................................................6

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Introduction
Businesses are defined as the process of converting outside resources called
knowledge into the outside results called economic values (Porter & Kramer, 2019).
However, creativity and innovation have an important role to play in this whole process.
They are the ones to ensure business growth and sustainability in the market. Hospitality
industry is one of the many industries that requires high rate of innovation and creativity in
order to cope up with the regular change in customer demands and to meet their expectations.
This report shall elaborate on presenting a brief analysis of a challenge that the hospitality
industry had been faced with in the recent years.
Discussion
Overview of the company
The tourism and hospitality industry in Australia is one of the significant and strong
economy in Australia. The chosen hotel for this report is the Australian Heritage Hotel. It is
one of the most famous hotels present in Sydney, Australia and was founded in the year 1824.
It is particularly famous for the unique services that it provides to its customers with the help
of its skilled labours and highly talented chefs who have some exclusive culinary skills
(Misnon et al., 2018). This makes the hotel really outstanding and exceptions in its own way.
Challenge faced by the hotel
Notwithstanding the above mentioned fact, it is to state that very recently, this hotel is
facing a significant challenge in terms of creativity and innovation. It is facing the challenge
of making changes in its business process with the increasing demands of modern style
hospitality from the parts of its customers.

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Customer preference for modern amenities
As with the growing technological advancements and increasing creativity in different
sectors, the demands of the customers are also increasing rapidly. As it is a heritage hotel, it
has always been struggled to maintain its interiors, history and style to make it stand out of
the modern hotels. However, this today has grew into proving itself to become a significant
threat for the heritage hotels. Customers no longer prefer the older amenities in place and
always seek for modern amenities instead of the heritage looks and styles (Kotler et al.,
2017). This is why they opt for choosing the hotels where they can found new and updated
facilities. Growing and coping with the trend has become a challenge for the company in
these years.
Staff training
Due to the increasing preference of the customers towards modern style amenities, the
management of the hotels need to pay more attention on training their staffs as throughout all
these days, the staffs were trained and taught in a particular way. Therefore, it is natural of
them to find it difficult to adapt to the modern trends and taste of the visitors or customers of
the hotel (Radojevic, Stanisic & Stanic, 2015). The technologies and trends that guests prefer
is way different from the ones that are provided in this hotel. All the latest technologies and
features are sought by the guests these days. This is why, in order to cater this technology, the
hotel needs to change many things in their usual practices and rules.
Introduction of fast services
Along with the introduction of extremely fast services like Uber and different other
applications that are helping the customers in getting all the instant results and outcome
within very short time frame, the demands and expectations of the customers therefore have
increased a lot. They today expect the same degree of expert services along with some sheer
efficiency and convenience at each and every place they visit (Bharucha & Fukey, 2017). It is

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due to this reason that there is high necessity of upgrading the software system along with the
other technologies that they make use of so that they can be a part of the competition my
means of meeting the needs and demands of their guests. With the same, the hotel manager
needs to hire new IT consultant along with highly technologically advanced employees who
would be helping in training the current employees in knowing and understanding the latest
technologies.
Technology orientation
Guests today have become technology oriented. With having an access to multitude of
technologies on the market, the guests now prefer services like free WiFi connection, electric
outlets, USB ports, flat screen TVs, music systems etc. in their room so that they do not have
to look out in search of their means of entertainment (Kandampully, Bilgihan & Zhang,
2016). Hence, the heritage hotels are required to have technology based amenities for their
guests during their stay. Guests also seek for smart room keys in place to be assured of their
safety and security. This is increasing the need of installing room access systems that would
allow their guests for unlocking this doors by means of swiping their cell phones over the
keyless pad present on the doors.
Recommendations
a) Heritage hotels can opt for making social media presence in each and every platforms.
This would help the staffs to remain updated with the latest technologies and trends
and to help the company in increasing brand quality.
b) The hotel can hire technologically advanced employees who would be helping in
training the current employees in knowing and understanding the latest technologies.
c) It should provide customer privilege programs for enabling the guests to avail their
loyalty programs and latest offers.

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d) It should work towards implementing the new and latest technologies in place without
compromising its signature style. For example, it can opt for having smart room key
facility in a traditional style wooden door.
Conclusion
Hence, from the above analysis it is to conclude that survival in the present business
environment has become very challenging for the Heritage hotel of Australia. With the
improvement in science and technology, there is a significant change in the needs, desires,
expectations and demands of the customers today. It has become extremely important for the
hotel industry, particularly the heritage hotels to adapt to the latest technologies. It needs to
keep up with the ever increasing needs and demands of its clients and customers. Along with
extremely advanced technologies around the globe, the guests in the hospitality industry are
becoming technology oriented.

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References:
Bharucha, N. Z., & Fukey, L. N. (2017). Understanding Linkage between Usage of
Technology and Acceptance by Guest in Hotel Industry-An
Introspection. International Journal of Engineering Technology Science and
Research, 4(6), 543-564.
Kandampully, J., Bilgihan, A., & Zhang, T. C. (2016). Developing a people-technology
hybrids model to unleash innovation and creativity: The new hospitality
frontier. Journal of Hospitality and Tourism Management, 29, 154-164.
Kotler, P., Bowen, J. T., Makens, J., & Baloglu, S. (2017). Marketing for hospitality and
tourism.
Misnon, N., Abeling, S., Hare, J., Jafarzadeh, R., Ingham, J., & Dizhur, D. (2018, February).
Heritage hotel case study: Seismic retrofit of an unreinforced masonry building prior
to the Canterbury earthquakes. In 10th Australasian Masonry Conference.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Radojevic, T., Stanisic, N., & Stanic, N. (2015). Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management, 51, 13-21.