Case Study: Digital Technology's Impact on the Hilton Hotel Sector

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AI Summary
This research project investigates the impact of digital technology on the hospitality sector, focusing on Hilton Hotel as a case study. The study explores the positive and negative effects of digitalization on Hilton's operations, identifying key challenges such as lack of expertise, employee resistance, and security risks. The research delves into the importance of digital technologies in the hospitality sector, analyzing how they impact Hilton Hotel's functions, from online reservations to customer service. The project also provides recommendations for Hilton, including employee training, enhanced data encryption, and cloud computing adoption to address the identified challenges. The research methodology includes inductive approaches and qualitative methods. The conclusion summarizes the findings and provides insights into the future of digital technology in the hospitality industry.
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Research Project
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ABSTRACT
Under this research, there is a detail discussion about the impact of digital technology
over hospitality sector. In addition to this, it also include the importance of digital technology in
hospitality industry and challenges that Hilton hotel experienced while moving toward
digitalisation. At last, there are some recommendations provided to Hilton hotel for dealing with
the issues faced by them while digitalisation.
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SUMMARY
The current research is about the impact of digital technology over hospitality sector
which is based over Hilton hotel. Digital technology have both positive as well as negative
impact over the functioning of Hilton hotel. Hence,, this investigation has been performed to
determine the opportunities as well as threat which Hilton have to face during the
implementation of digital technology. While conducting this research, it has been found that
there are number of challenges that are faced by Hilton Hotel which includes lack of expertise
knowledge, Employees pushback and security risk. For dealing with these issues Hilton has been
recommended to offer regular training to enhance the skills of its employees, add more
encryption process to its data transfer and use cloud computing to get rid from the risk of data
lost.
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Table of Contents
ABSTRACT.....................................................................................................................................1
SUMMARY.....................................................................................................................................2
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of research:- ......................................................................................................1
1.2 Aims & Objectives.................................................................................................................2
1.3 Rationale of research..............................................................................................................2
1.4 Approach and Methodology:- ...............................................................................................3
1.5 Chapter Preview:-..................................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
The importance of digital technologies in hospitality sector.......................................................4
The impact of modern technology in Hilton Hotel......................................................................5
The challenges that faced by Hilton while implementing modern process.................................6
Measures to improve technological implicate for future.............................................................7
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION ...................................................10
CHAPTER 5: RECOMMENDATIONS ......................................................................................18
CHAPTER 6: SUGGESTION FOR FURTHER WORK ............................................................18
CHAPTER 7: CONCLUSION ....................................................................................................19
REFERENCES..............................................................................................................................21
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Title: “To explore the impact of digital technology in hospitality sector”. Case study based on
Hilton Hotel”.
CHAPTER 1: INTRODUCTION
In today’s competitive world, technologies plays a crucial role within the growth as well
as success of any organisation as it have a huge impact over the choices of customer. Digital
technology brings up several opportunities as well as threat for businesses in each sector. It
contribute toward increasing the customer base or organisation approach and on other side it
provide several threat such as higher competition, process or technique obsolete etc.
1.1 Background of research:-
Hospitality sector is consider as one of the fastest growing and most competitive sector
around the world in which daily a new business starts that bring up a unique method to serve its
customer and make them happy. This create huge competition in front of other existing players
and place a challenge for them to bring something more better service for offering them at
marketplace. This is just because of increasing the approach of digital revolution which
constantly endeavour toward enhancing the quality of goods, services, infrastructure and other
offers with an aim to fulfil the requirement of digital age above the expectation of customers
(Saxena and Lamest, 2018). So, in order to meet these expectations players of hotel industry are
using digital technology for proving its customer augmented services which are beyond their
expectation to keep them happy and present tough competition in front of others to grab one
another market share.
The present report is about the impact of modern technology over the operations as well
as success of Hilton hotel by providing several growth opportunity. Hilton Worldwide Holding
Inc. is an American multinational company which manages a chain of hotels throughout the
world in order to provide best services to its customers. Fuelled of technology and internet power
is continuously encouraging customers to expect more in term of hospitality industry and for
coping with these challenges hotels are continuously innovating their services among which
Hilton is also leading between them. Hilton hotels perform majority of its operations digitally
which are ranging from online reservation to security purpose all the functions are performed
with the help of digital technology (Tichaawa, Mhlanga and Sicwebu, 2017). Main aim behind
this is to simplifying the life of its customers by providing them more convenient and quick
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services access that leads to maximum customer satisfaction. In addition to this, modern
technology also in providing several mediums through which Hilton hotel can target potential
customer and approach them with their services to attract them.
1.2 Aims & Objectives
Aims: To explore the importance of digital technologies within hospitality sector. A case
study on Hilton Hotel
Objectives
To understand the importance of digital technologies in hospitality sector
To analyse the impact of modern technology in Hilton Hotel.
To examine the challenges that faced by Hilton while implementing modern process
To recommend measures to improve technological implicate for future.
Research Questions
Q. What are the importance of digital technologies in hospitality sector?
Q. What are the impact of modern technology in Hilton Hotel?
Q. What are the challenges that faced by Hilton while implementing modern process
Q. What are the measures to improve technological implicate for future.
1.3 Rationale of research
Main aim behind conducting this research is to determine the impact which digital
technology have over the hospitality sector and ways in which it help industry in further
development. This research help in gathering information regarding the changes that digital
technology bring within the operations performed within the hospitality industry and ways in
which digital technology help in attracting and influencing the choice of customers. By
conducting this investigation researcher will be able to determine the role of digital technology
within the success of Hilton. In addition to this, research will also help in identifying the several
challenges that a business have to face while adopting digital technology or modern process. By
collecting this information it become easier for the company to determine several measure that
help in rectifying these issues.
This research when used for academicals purpose help reader in increasing their knowledge
regarding the digital technology and role it plays within the success as well as development of a
business. Further, it also help in developing an understanding regarding the several challenges
that are required to be faced by a business while performing their operations in digital world.
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1.4 Approach and Methodology:-
In order to conduct this research, there are number of techniques that has been used by
researcher in order to perform this investigation in systematic and reliable manner. This includes,
inductive approach, qualitative method, pragmatist philosophy etc. which support in conducting
investigation in ethical manner.
1.5 Chapter Preview:-
The research work must be presented in systematic manner so that it become easier for
reader to understand the data and conclude it in way researcher want to present. For present
research, investigator will follow the structure which is explained below:
Chapter 1: Introduction
The research work will first begin with the introduction chapter which describe about the
overview of topic or filed of study. In addition to this, section also includes aim and objective
behind performing research. Apart from this it also includes the rational;e of research that
describe about the benefit which investigator will get after performing research.
Chapter 2: Literature review
This is the second chapter of research that provide information about importance of
digital technology. This section includes the information from several article, books or journal
which included data regarding the investigation that has previously being searched by some
another person over similar topic.
Chapter 3: Research Methodology
This section consist of several tools and technique which a research will use while
conducting this research and collecting data so that valid outcomes can be extract.
Chapter 4: Data analysis and Interpretation
Within this section the collected information or data would be analysed on the light of
research questions or hypothesis. It also provide information related to findings which guide
researcher to present the outcome of investigation in appropriate format that help reader in
understanding the nature of study.
Chapter 5: Recommendation and Suggestions
This chapter focuses toward providing the recommendation to over come the issues that a
company is facing and for that research has been conducted. In addition to this, section is also
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consists of reflection in which researcher explain in detail about its finding, development or
issues that has been faced by them while conducting research.
Chapter 6: Conclusion
This is the last chapter of research which consists of a description about what has been
performed throughout the research and findings of this investigation to present the outcome of
these efforts.
CHAPTER 2: LITERATURE REVIEW
It refers to the type of scholarly paper where the information collected by several authors
critically evaluated with an aim to extract some knowledge about particular topic which can be
further used to explore about similar topic.
The importance of digital technologies in hospitality sector
As per the view point of Martin Zsarnoczky (2019), Digitalisation is consider as one of
the most important part of rapid evolving world. This digital transformation has now become the
engine of development as well as innovation which shows its impact everywhere such as ICT,
manufacturing or other service industries. It plays an essential role in simplifying the life or
travel of tourist by providing them a medium to communicate with various hospitality reacted
business in order to make their travelling experience more comfortable or stress free. Apart from
this, digital technology plays an essential role in improving the services offered by hotels by
providing them a medium to digitalise their operations which is less time consuming and
economic. In addition to this, digital technology also provided a medium through which a hotels
can secure their confidential information using cloud computing or backup capabilities. Apart
from this, digitalisation also support hospitality sector to remain competitive toward the
transformations that take place in demand of customer so that maximum satisfaction can be
provided to them.
According to Ahmad and Schreyer (2016), with the social and economic development the
rush of people toward tourism is increasing day by day. The result of which customer are
becoming more demanding and ready to pay any amount for availing the services that support in
exchanging their travel and accommodation related experience. So, in order to cope up with
these changing demand or expectation of customers’ digital technology integration in business
operations is very essential. Digitalisation in hospitality industry support its player to approach
larger number of customer using internet and attract them the quality services by interacting with
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them and providing them a chance to book services as per their convenience while planning for
travel.
As per the view point of Daniel Newman (2018), today hospitality industry has
completely changes because of digital transformation experience in tourism and hospitality
sector from last few years. One of the additional benefit that digitalisation has provided to
hospitality sector is AI and Chatbots with the help of which hotels provide all the information
through its official website. Customer can access the information at any time whenever they
want using their mobile phones in e-concierge form. In addition to this customers can also use
voice-activated chat bots for opening curtains, order breakfast, set alarm without even interacting
with a human.
The impact of modern technology in Hilton Hotel.
According to the Lloyd and Payne (2016), traditional brick and mortar companies are
moving toward adopting the self-service technology with an aim to improve its service offering
and for gaining customer loyalty. This is mainly experienced in hospitality sector where
customer expectation toward having positive experience of their travel journey is high,
technology become a medium for hotels like Hilton to overcome this challenges by improving
their quality as well as reach of services more convenient. Digital technology has provide Hilton
hotel an opportunity to provide services to its customer as per their expectation. Hilton provide
customised services to its customer where they can visit its official site in view the services hotel
offers and choose the one which is according to their budget and requirement. Hence, digital
technology provide several benefit to Hilton hotel such as web access of services to customer
that plays an essential role in attracting them to avail services and enhancing the market share of
hotel.
According to the view point of Neelam (2018), IT has bring several effect over the realm
of hospitality sector in many ways such as
Reservation system:- Digital technology has simplify the operations hotel perform by
providing customer internet platform to book services in hotel without visiting its premises. This
has improved the functionality of Hilton by converting its operations from manual to digital.
Mobile communication:- Digitalisation in operation also supported Hilton hotel by
improving their relation with customer through the use of mobile communication that help in
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keeping customer update about the changes in hospitality business and informing about new
offers.
As per the view point of Papathanassis, Katsios and Dinu (2018), Digital technology
plays an essential role within the growth and success of Hilton hotel by enhancing its services
quality as well as by simplifying its service offering process. It provide several benefits such as
relevance which suggest customers the location which will be more suitable for them. In addition
to this, digital technology implementation has also improve its security system which support it
in enhancing the trust of customers toward hotel. The digital technology which improve the
security system of Hilton includes security camera, fire detector, keyless room entry and many
more which is also one of the main reason behind the customer traffic toward Hilton hotel. Apart
from premises security which hotel provide to its target market, data security is also being
enhanced with the help of digital technology. With the help of digital authentication in term of
cloud computing, firewall etc., hotel keep the confidential and personal data of its customers
secure from the threat of hack or misuse by storing it over more authenticated manner under
several security threat which reduces that chance of mal-practices. This also help in keeping
customer free from the fear of data stolen or hacking that may be misused by some another
person.
The challenges that faced by Hilton while implementing modern process.
As per the view point of Holdsworth and Apeh (2017) Digital technology bring up
several challenges along with the growth opportunity which may affect the functionality as well
as sustainability of business. With the increase in environmental trend regarding digitalisation of
business operations, Hilton also move toward implementing the modern technology in order to
enhance its service quality. But apart from this there are numerous of challenges that are faced
by Hilton while implementing digital technology. This includes a risk of security, as making
business information available over internet also brings up the risk of data hacked by competitors
or misused for the negative publicity of company. Another major challenge faced by Hilton
while implementing digital technology is that employees have inadequate knowledge regarding
the use of digital technology that have an huge impact over the way in which operations
performed. Therefore, it is very essential for a company to provide proper guidance to its
employees before moving toward digitalisation of operations so that functions can be performed
much effectively without compromising over the quality as well as goodwill of business.
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On the other side as per the view point of Ruthven (2017), digital technology plays an
essential role in minimising the distance among nations at global level by providing a medium to
communicate and interact with one another without worrying about geographical distance. It also
work toward improving the operational standard of businesses by providing them an opportunity
to target and interact with customer using internet. But not any benefit come up with an addition
risk. Hence, digital technology is also some of opportunities as well as challenges that companies
usually face while performing its operations digitally. There are various challenges that rare
usually faced by Hilton while implementing modern technology. It includes employee pushback,
lack of expertise availability to maintain the standards of service over digital performance as
physically, rigid organisational structure which hinder changes and many more. These challenges
affect the operation performance as well as goodwill of company if not managed properly.
Measures to improve technological implicate for future
As per the view point of Ruthven (2017), digital technology brings up several challenges
as well as complexity while its implementation. So in order to avoid them in future practices
following measures can be taken by Hilton hotel:
It can provide training to its employees for making them prepare with future challenges
so that mistakes can be avoided while implementation of these technologies.
Hilton hotel must focuses toward identifying new changes that are going to experienced
in digital environment so that changes can be implemented quickly within current system
operated by Hilton hotel. This will avoid the change of technology obsolete.
Hilton hotel can hire more technical expertise staff so that proper maintenance and care
can be provided to system which is used by hotel in order to avoid the risk of damage or
technical issues that can affect the performance.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is very essential part of a research which focuses toward
systematic and theoretical analysis of methods that will be applied to field of study. Some
elements that are present in research are explained below:
Research Approach: - It refer to the plan or procedure that contains a step of broad
assumption in order to detail about method used for data collection, analysis as well as
interpretation. Research approach are of two types i.e. deductive and inductive approach
(Mackey and Gass, 2015). Deductive approach refers to the process of creating hypotheses as per
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existing theory and then forming research strategy for testing those hypothesis. Inductive
approach focuses toward forming up a new theory emerging from the data by using some
research question in narrow down the study scope. In this research deductive approach will be
used which is based on quantitative method of data collection as it perform evaluation over
statical information.
Research Philosophy: - It refers to the way in which information or data about a
particular phenomenon will be gathered to conduct the research effectively so that proper
outcome could be extract (Flick, 2015). Research philosophy is of two type such as positivism
and interpretivist. Positivism beliefs that reality can be observed and then describe as per the
objective view point without interfering with the set phenomena. It provide information in
precise manner but on the other side Interpretivist interpret the element of study by considering
the interest of human being. In order to conduct this research positivism philosophy will be used
which help researcher to interpret the data collected as it is based on quantitative data and
provide real fact about the information.
Research Design: - This section describe about the method which is used for data
collection and its analysis. Research design are of two type i.e. conclusive and exploratory. In
this investigation, exploratory research design will be used as it help researcher in exploring the
research question so that outcomes can be conclude toward the accomplishment for research
objective.
Data collection: - It refers to the process which is used to gather information regarding
the particular area of study. There are two type of data collection method i.e. primary or
secondary. Primary refer to the collection of data which is fresh and not yet been gathered
previously and on the other side secondary data refers to the information which is previously
collected by some another person and now used by researcher for creating understanding toward
similar research topic (Neuman and Robson, 2014). In this research both primary and secondary
data collection method will be used where primary data will be collected using questionnaire and
secondary data will be collected through literature review where information extracted through
journals, article etc.
Data Analysis: - Once the data related to research topic has been gathered next step is to
evaluate that in order to bring out the result of investigation. Analysis can be performed using
two methods qualitative and quantitative. Qualitative analysis of data is done with the help of
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