Analyzing Disruptive Technology in the Australian Hospitality Sector

This report explores the impact, role, and future trends of disruptive technology on the Australian Hotel and Hospitality industry. It begins by defining disruptive technology and its evolution from disruptive technology to disruptive innovation. The report then discusses the impact of technologies like fixed mobile convergence, highlighting how it transforms guest experiences and hotel operations. It emphasizes the slower adoption of newer technologies in the Australian hotel industry and how disruptive technologies can enhance workforce efficiency, security, and productivity, providing a competitive advantage. Finally, the report outlines future trends such as mobile device keys, guest apps, service automation, modern meeting spaces, advanced lounges, and social listening, illustrating how these advancements are reshaping the hospitality sector. The report concludes by emphasizing the importance of adapting to these changes to meet customer needs and maintain a competitive edge.

Running head: ENTREPRENEURSHIP FOR HOSPITALITY LEADERS
Entrepreneurship for Hospitality Leaders
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Table of Contents
Introduction................................................................................................................................2
Impact of Disruptive Technology on Australian Hotel and Hospitality Industry......................3
Role of Disruptive Technology on the Australian Hotel and Hospitality Industry....................4
Future Trends of Disruptive Technology on Australian Hotel and Hospitality Industry..........6
Conclusion..................................................................................................................................8
References:.................................................................................................................................9

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Introduction:
Disruptive technology refers to the newer ways of achieving things that might
overturn or disrupt traditional business practice or model (Fan & Suh, 2014). The
introductions of steam engine when conveyance was mainly through sail and internet in the
era of post office are prominent examples of disruptive technology. These technologies often
forced companies in altering their business approach. Disruptive technology might also
damage the overall economics of the market since its lacks refinement and comes with
performance problems without a proven practical method of application. The term disruptive
technology was coined in the year 1995 by Clayton M. Christensen in one of his articles
named “Disruptive Technologies: Catching the Wave”. Later the term was rechristened as
disruptive innovation when there was an observation that only fewer technologies were
sustaining and intrinsically disruptive in nature, instead it is the business model enabled by
the technology that leads to the creation of the disruptive impact. Disruptive innovations are
straightforward technologically and consist of components in product architecture that make
it simpler than the previous approaches. They are highly valued in the emerging markets
compared to the established markets with their unique attribute package. The report here aims
to focus on impact, role and future trends of disruptive technology on the Australian Hotel
and Hospitality industry.
Impact of Disruptive Technology on Australian Hotel and Hospitality Industry
There was a time when the hotels, motels and hospitality business occupied simple
spaces in people’s lives where people could enjoy a family time far away from home. But
someone who have spent time in the hospitality industry in the last couple of years knows
how there has been a drastic expansion of technology in the hospitality business. Gradually
they are becoming hubs of activity thereby making various forms of disruptive technology as

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an integral part of the hotel operation and guest experience compared to the past. One such
technology is fixed mobile convergence that represents the union of the wireless and wired
technologies (Gosselin et al., 2015). There exist three separate aspects of convergence that
includes network, device and applications. At network level, the Internet Protocol (IP)
networks helps in driving much of the convergence that enables unification of the multiple
services on common platform of network. However, the networks within an enterprise are
largely based on IP with sole reliance on wireless LAN technologies and Ethernet. There has
been an increased dependence on IP based networks even outside enterprises. At the device
layer the fixed mobile convergence is trying to ensure a ubiquitous connectivity anytime and
anywhere. In terms of applications, fixed mobile convergence helps in delivering powerful
display capabilities and processing. For instance, image sharing has been incorporated in
messaging along with real time video and voice sessions (Nikou & Mezei, 2013).
It has been found that most of the employee population of an enterprise does not
remain fixed during a particular working day. They remain mobile on a variety of locations
both inside as well as outside the office which might include partner and client sites, airports,
hotels and home (Ko & Jeng, 2015). In such a scenario, fixed mobile convergence helps in
coordinating and providing same service irrespective of the environment. Nowadays, various
businesses are deploying the fixed mobile convergence solution for not only addressing
employee and business concerns but also broader areas of business communication.
Now let’s discuss the impact of a disruptive technology like fixed mobile convergence
on Australian hotel and hospitality industry (Young & Hancer, 2014). Initially, people made
use of their room phones however the introduction of mobile devices has reduced their role.
The technology of fixed mobile convergence can once again make the room phone service act
as a hub for a greater connected experience. This technology enables us to image a situation
when a guest enters the hotel room and immediately pairs the mobile device with the room

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phone. This leads to situation when he can not only control the sound system as well as the
TV but can also place a request for a wakeup call. The facility will also enable the hotel
authorities to information him about the status of his dry cleaning even when he is away for a
meeting. Fixed mobile convergence will also allow the guest to take call from the hotel lobby
so that he does not miss the meeting. Though it might seem like a piece of science fiction but
such technology is available or is in the process of development in the hospitality sector. It
seems like, with fixed mobile convergence the guest of future will remain more connected
than before.
Role of Disruptive Technology on the Australian Hotel and Hospitality Industry
The implementation of disruptive technology will in turn help in changing the
profitability of the individual hotels (Torres, Singh & Robertson-Ring, 2015). Innovative
disruptive technologies like fixed mobile convergence help in creating realities for the new
market (Christensen & Raynor, 2013). Thus, for prospering in the presence of the newer
realities, hotel and hospitality industry of Australia needs to understand the ways in which
they come about, their implications and the necessary adaptation required for the benefit of
the stakeholders and the clients.
Traditionally the hotel and hospitality industry of Australia has shown a slower pace
in the adoption of newer technology (Pisano, 2015). There has been a natural reluctance
towards the adoption of the information technology that has proved to be disadvantageous for
the hotel industry. With increasing expectations of the guest service, the situation can prove
to be detrimental for the maintenance of an international hotel in highly competitive market.
Fixed mobile convergence represents the next bigger thing in the field of
communication. The technology not only helps in enhancing the workforce of the company

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boosts security and improves productivity but also provides a competitive advantage to the
hotel and hospitality industry. The scalability of fixed mobile convergence allows provision
for future innovation and growth thereby implying cost benefit. The technology will enable
faster answer to customer queries and effective collaboration of branch offices thereby
allowing the hospitality industry to survive easily in a competitive global economy. The
technology of convergence also enables customers and employees to remain connected
through a single number irrespective of their location. Fixed mobile convergence in
association with WebRTC also allows video conferencing that helps the employees in
creating a strong impression on the prospects and the clients. The technology also allows
workers of the hospitality sector to get quick access to features like call transfer from their
desktop phone via their mobile. This helps in saving their time as they can make use of a
single voicemail box (Mastorakis et al. 2015). Fixed mobile convergence ensures control and
security to the communication platforms of the enterprise by minimizing the chance
unauthorised access and call snooping while conference. Fixed mobile convergence also
ensures productive gains as they allow the employees to use same communication platform
irrespective of the device. However, through the employment of policies that helps in routing
mobile through the Contact Centre and Cloud Telephony systems and also negotiated rate,
lowest cost and fixed line networks businesses can look forward in reducing their
telecommunication costs.
Future Trends of Disruptive Technology on Australian Hotel and Hospitality Industry
The entry of millennial generation into the workforce have forced organizations in
adapting the flexible means of working which includes communication across any mobile
devices during any time. This is even true for the hospitality industry that also looks for cost
effective and smarter communication tools via cloud technology that makes sure that all the

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communication channels remain in sync. Adoption of the fixed mobile convergence will thus
allow businesses to ensure timely response to the customer needs, centralise the processes
without adding any sort of complexity and drive out additional cost. Thus, with the constant
emergence of the new trends the hotel and hospitality industry is undergoing change at a
rapid pace (Christensen, 2013). However, some of the future trends of disruptive technology
posing an influence on the Australian hotel and hospitality industry are as follows:
1. Mobile Device serving as a Door Key: Technology has brought about a evolution
where the previous piece of metal known as key got transformed into some data on the
mobile device of the guests (Ivanov, Webster & Berezina, 2017). This technology has made
things easier for the guests as well as the hospitality industry and hence many hotels across
Australia have started implementing it.
2. Apps for the Guests: The vision of having connected guests ensures looking at
every aspect of guest experience. This requires a single hub for operation and the guest apps
on personal mobile seems a natural place for hosting such functions. This particular app is a
smartly designed one that combines every little aspect from hotel services, deal notifications
to the various loyalty programs (Adukaite et al., 2013). The app can also be used for
electronically sending the guests the itineraries of the event along with a map indicating the
venue for the meeting. Some of the important hotels of Australia have already incorporated
certain element with addition of modern capabilities on a day to day basis. However much of
the integration and technology is in the process of development and the hospitality industry
with a connected experience would be brimming with empowered and happy guests.
3. Automation of Service: This allows the guests to do things themselves including
check in and check out. Many hotels are working on app that allows the guests for ordering
room service from the mobile devices (Buhalis & Amaranggana, 2015). This helps in

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reducing the headache of the employees and enhances guest experience. With time this trend
is believed to get accelerated.
4. Modern Meeting Spaces: Technology has led to the evolution of the modern
spaces for meetings which does not require tables, serving carts and chairs (Rogers, 2013). In
modern meeting people either need to undertake video conferencing or create multimedia
presentations or both depending on the situations. Hotel now are gradually adapting to the
changing times and are making the spaces more user friendly.
5. Advanced Lounges: Guests nowadays looks for a place outside their room where
they can not only relax but have an access of Wi-Fi that allows them to go through airline
check ins and information on local guides (Zhou et al., 2014). With time the hospitality
businesses are helping in transforming the desires of the guests into some public spaces
where they have technology access and engage to it as per their own terms.
6. Promotion of Social Listening: There are many times when the guests want to
share their experiences at the hotels but they do not always do it directly to the hotel
authorities (Leung et al., 2013). Hence there should be presence of social listening tools that
will help the authorities to know about the needs, desires, wants and complaints of the guests
and initiate an immediate conversation in case the matter seems serious. This aspect is
particularly necessary in the world of hospitality as its existence depends on online reviews
and word of mouth that also helps in determining their competitive edge.
Conclusion:
The report ends in a note by discussing the future trends of the disruptive technology
on the hotel industry. There is also discussion on the role and the impact of the disruptive
technology on the Australian hotel and hospitality industry. It can also be said that internet

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acts as treasure trove for the business provided they know how to use it. Technology has
brought about a change in how the hospitality sector operates. There has been a move from
the core hardware to software solutions based on Cloud. The perception of work environment
has also changed with more fluid and flexible working hours. Employees now expect to
connect instantly with the customers and colleagues through video, social media, email or
any technology driven device. The hospitality sector has also extended the capabilities of
collaboration via mobile device for meeting the newer demands of its guests that has resulted
in the growth of the market for fixed mobile convergence technology.

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References:
Adukaite, A., Reimann, A. M., Marchiori, E., & Cantoni, L. (2013). Hotel mobile apps. The
case of 4 and 5 star hotels in European German-speaking countries. In Information and
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Buhalis, D., & Amaranggana, A. (2015). Smart tourism destinations enhancing tourism
experience through personalisation of services. In Information and communication
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Christensen, C. (2013). The innovator's dilemma: when new technologies cause great firms to
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Fan, L. & Suh, Y.H., (2014). Why do users switch to a disruptive technology? An empirical
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Gosselin, S., Pizzinat, A., Grall, X., Breuer, D., Bogenfeld, E., Krauß, S., ... & Skubic, B.
(2015). Fixed and mobile convergence: Which role for optical networks?. IEEE/OSA
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automation by tourism and hospitality companies.
Ko, C. H., & Jeng, S. N. (2015). Mobile technology adopted in hotel sales. International
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Leung, D., Law, R., Van Hoof, H., & Buhalis, D. (2013). Social media in tourism and
hospitality: A literature review. Journal of Travel & Tourism Marketing, 30(1-2), 3-22.

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Mastorakis, G., Trihas, N., Mavromoustakis, C. X., Perakakis, E., & Kopanakis, I. (2015). A
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