Analyzing Automation in the Hotel Sector: PESTLE and Business Impacts

This report delves into the increasing use of automation within the hotel sector, analyzing its effects on business operations and service quality. The report employs a PESTLE framework to assess the impact of automation on political, environmental, and legal factors, highlighting how technology, AI, and IoT are transforming the industry. It examines the positive implications of automation, such as improved efficiency, enhanced customer service, and contributions to sustainability. The analysis covers aspects like government policies, environmental regulations, employee safety, and the adoption of new technologies. The report also considers the impact on stakeholders, including investors and customers, and provides examples of how automation is implemented to improve various aspects of hotel management and operations. It concludes by emphasizing the benefits of automation in terms of efficiency, customer service, and environmental sustainability, supported by references to relevant literature.

Automation in the hotel
sector
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Table of Contents
Group A argument for use of automation in hotel sector............................................................3
REFERENCES................................................................................................................................7
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Group A argument for use of automation in hotel sector
With technological development, there is drastic change in business operations. Now,
companies are highly focusing on using technology to perform operations. Besides, AI and IOT
is used in hotel for doing tasks. Alongside, automation has led to increasing efficiency and ease
in doing tasks. As hotel industry is a main component of tourism sector. The service quality is
improved as well.
PESTLE- it is a framework through which external factors are identified and then how they can
impact on company. with this, several measures are taken to reduce impact. In this six elements
are taken that are political, legal, social, etc. (Verma and Jain, 2016) However, each factor
describes their elements. From that it is easy to analyse external environment. In present era
political and environmental factor play vital role in this sector. It is because hotel industry
operates at global level. they also have to protect environment in one or other way.
The various factor are described below:
Political – this factor is related to change in government of nation, trade relation, political
condition, etc. if there occur any change in country government, then it highly impact on
company operations. This is because government changes laws and regulations. The automation
in hotel industry will create a positive impact on country GDP. Now, tourism sector is
considered as major industry for government. It is because industry contribute to a great extent.
Moreover, automation in hotel sector will allow government to transform IT infrastructure. So, it
will result in technological development. However, there will be positive impact on stakeholder
also. The investors and countries of other countries will invest and support government in this
development. Recently, government are focusing more on development of technology in tourism
sector. It leads towards high growth. In addition, hotels are getting more opportunities to expand
their services in other markets.
The government has also reduced tax on use of technology. Here, both state and central
government are supporting small and medium size hotel for growth and development through
automation. furthermore, government has changed their trade policies. they are allowing other IT
firms and MNC’s to invest it technology (Ivanov and Webster, 2019). There is positive impact
on customers. They are getting high quality services. now, government is trading with those
developed nation that are possessing high and advance technology. In addition, government have
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made changes in their trade policies allowing hotel growth and development. Hence, investors
are also impacted in positive way. The companies are investing in hotel industry along with
government. The tax rate of investing in technology has been reduced. Along with it, in many
countries it has become easy for hotel sector to operate and expand. Therefore, it has become
easy to do automation. with help of automation, hotels are able to minimise impact on terrorism.
For example – Indian government has invested highly in technology. The companies are offering
internet to people at low cost.
Environment- they are those factors that is related to environment. It includes laws and
regulations. Also, hotel sector needs to follow several laws and policies to protect environment.
The laws differ in various countries and are formed according to government. Any change in
laws impact on hotel to a great extent. Thus, automation in hotel industry will create positive
impact on environment (Dzhandzhugazova and et.al., 2018). It is because use of technology
protect environment and leads to sustainability. There are many hotels that are highly using
technology in their operations. Furthermore, the development of App and software has allowed
customers to book tickets online. Therefore, they do not need to travel from one place to another
for booking. In addition, the monitoring and control is done by using technology.
The hotels are also able to contribute more towards maintaining sustainability. It has been
analysed that more CSR initiatives are followed. With this, customers engaged with hotel
industry are impacted in positive way. they are also contributing towards sustainability. They are
using Apps and saving environment. Along with it, automation is done in dumping waste and
utilising resources in effective way. Advance software and applications are installed in hotels.
Through it, cleanliness is maintained and waste is managed in efficient way. Moreover, water
and energy is saved by monitoring their use and minimising it. Many new and proper measures
are taken by hotel industry to ensure customers safety. The risks are identified and minimised
through automation. the new policies are formed and government is highly supporting in
technological development. It has created a positive impact on customers as more and more
hotels are practicing various CSR initiatives. Due to automation the waste generated is less and
hotel is able to maintain clean and green environment.
For example – energy efficient technology is hotel to monitor use of energy.
Legal – the legal factors are those that consists of laws such as employment, health and safety,
etc. every industry has to follow different types of laws. They differ in many countries. So, any
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change in laws force hotel industry to follow it (Beccali and et.al., 2018). thus, it impacts on
their operations. The use of automation in hotel industry has led to creating positive impact on
employees. It is because now latest and advance tools are used in hotel operations. The new laws
are formed and hotels are following it. Moreover, employees health and safety is effectively
maintained. The complex task are been automated. For example – sensors are installed in hotel
which make employees aware about any hazard. Other than this, in cooking the process is
automated resulting in maintaining safety of staff. Similarly, in many other area’s automaton is
done.
Apart from it, automation has enabled in taking many new and proper measures are taken
by hotel industry to ensure employees safety. The risks are identified and minimised through
automation. Health law is formed that has allowed hotel in keeping their staff fit and healthy.
The employee behaviour is monitored and manager ensure that no discrimination occurs. With
automation, government has allowed in flexible working hours. However, hotel industry is able
to maintain safety of staff. Many new tools and equipment are installed in dangerous areas. From
that employee safety is done.
For example – robots are used to manage health hazards in hotel.
So, it is evaluated that automation in hotel industry has created positive impact on
political, environment and legal factors (Egan and Haynes, 2019). In that technology and AI is
been used in several operations. Customers are mostly benefited due to automation. They are
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getting high quality service. In addition, government have made changes in their trade policies
allowing hotel growth and development. Hence, investors are also impacted in positive way. The
companies are investing in hotel industry along with government. Moreover, with automation
there is positive impact on environment also. The resources are utilised in efficient way and
waste is disposed properly. Many CSR initiatives are taken in order to maintain sustainability.
With automation, hotel industry is saving energy usage. So, their contribution towards
environment is increased. The customers are benefited as well. It is because they are getting high
quality services. Many new and proper measures are taken by hotel industry to ensure customers
safety. The risks are identified and minimised through automation.
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REFERENCES
Books and journals
Beccali, M. and et.al., 2018. Analysis of some renewable energy uses and demand side measures
for hotels on small Mediterranean islands: A case study. Energy, 157, pp.106-114.
Dzhandzhugazova, E.A. and et.al., 2018. Hotel Industry In The Context Of Russia’s Emerging
Digital Economy. www. mjltm. com info@ mjltm. org, p.225.
Egan, D. and Haynes, N.C., 2019. Manager perceptions of big data reliability in hotel revenue
management decision making. International Journal of Quality & Reliability
Management, 36(1), pp.25-39.
Ivanov, S. and Webster, C. eds., 2019. Robots, Artificial Intelligence and Service Automation in
Travel, Tourism and Hospitality.
Verma, N. and Jain, A., 2016, November. Energy optimized building automation with guest
comfort in hospitality sector. In 2016 Second International Innovative Applications of
Computational Intelligence on Power, Energy and Controls with their Impact on
Humanity (CIPECH) (pp. 188-192). IEEE.
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