HTL604: Disruptive Technologies & Leadership in Hospitality Report

This report examines the impact of disruptive technologies on the hospitality industry, focusing on automation, the Internet of Things, big data, and artificial intelligence (AI) and chatbots. It analyzes the advantages and disadvantages of these technologies, highlighting their potential to enhance customer experience, streamline operations, and drive innovation. Furthermore, the report investigates the crucial role of leaders in managing change and integrating these technologies effectively, emphasizing the importance of communication, training, and adapting to new technological advancements. The report provides a comprehensive overview of the evolving landscape of the hospitality sector and offers valuable insights for industry professionals seeking to navigate the challenges and opportunities presented by disruptive technologies.

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5/10/2019

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Contents
Introduction......................................................................................................................................2
Finding and discussion....................................................................................................................3
Disruptive technology that will influence and Impact of change on hotel..................................3
Leader role in change management for disruptive technology integration in the hospitality
business........................................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Entrepreneurship is the key to innovation and conducting business with various uses of
elements. The success of a business largely depends upon the leaders of the company. The
hospitality industry is found to have a rapid transformation, with a change in social trends, and
technological environment. The reported purpose is to understand the disruptive technologies
that would affect hospitality business, the ways that leaders of hospitality business need to
address to manage the effects of the disruptive technologies identified, and various advantages
and disadvantage of technologies (Ahlin, 2014).
Disruptive technology is the way companies significantly operate and it allows
companies to search for the overlooked markets to be the target and gaining market share. In
today’s scenario, having a television with a good quality screen is not enough for the customers
to attract or fulfill their needs. The enhanced service included checking out the menu to a
restaurant in the room on the screen, and use of smartphone for ordering room service. This
reflects that the customer expectations in the hospitality industry have increased due to the
extensive use of technology and the internet (Alves & Sousa, 2018).

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Finding and discussion
Disruptive technology that will influence and Impact of change on hotel
Key disruptive technologies that have influenced the traveling and hospitality industry would
be those that were enough mature to actually disrupt the corporation in general. The disruptive
technologies would make the companies in this industry as if the Hotel Hilton group to be
improved the offering quality, creation of more customized customer experience, and streaming
operations for staff of the companies (Dewald & Osiyevskyy, 2015). The three key disruptive
technologies that would be considered to influence large difference in the hospitality industry
that is how forward looking in upcoming years would operate.
1. Automation and internet of things
The internet of things combined with automation would permit propagation of
smart places. The hospitality industry must get upsurges in the quantity of smart customer
rooms, smart restaurants, smart lobbies, and smart parking. Upcoming or recent hotels are
being constructed for energy competence and are furnished with modern ecological
controls, like light bulbs that comprise of simple sensors (Whitaker, Ekman, &
Thompson, 2017).
Hospitality brands such as Hilton for the case could use these capabilities for ease
of friction transaction, coupled along with data analytics, and personalized experience
and sensor systems. For instance, beacon technology would be useful in identifying a
smartphone and alarming a concierge to walk along with a personalized gift and keycard
at the time of new customer arrives at the hotel. Sensor equipped room services like the
alarming to the housekeeping department as the trays cross the threshold of the room, and

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the sign for the readiness of the tray to be picked up. Moreover, the ambiance could be
highly influenced through such technology like environmental controls and room
lightning. That would be driven by sensors that would the guest appearance along the
area so as to turn light on or setting the temperature as per the room temperature and
would be automatically off or lights would be dim as and when the customer would leave
their rooms. This will be helpful in saving electricity for the company as well (Pyka,
2017).
Another use internet of things would be reflected with the digital world that is
interconnecting the experience of the customer through the virtually of digital use that is
providing all the service to the customer through the digitalized network. This would
include all possible services from the online reservation, personal environment
preference, food and recreational preferences, the more organized itinerary for the
customer as per their preference and convenience, to the experience feedback (Saebi &
Foss, 2015).
Pros of Automation and internet of things
 A digitalized service – The automation has made possible the digitalized services that to
the customers and decreases the use of human resource in the hospitality industry.
 Customer satisfaction – the automation provides higher and better services to the
customer with the click of a mouse, which would eventually increase customer
satisfaction from the experience at the hotel.
 Predictive maintenance- This has considered the maintenance to be predictive and done
before it is actually required with the help of automation, which reduces the risk of failure
of any system and disruptive customer experience at the hotel (Tidd & Bessant, 2013).

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Cons of Automation and internet of things
 Cyber security risk – Use of internet of things is associated with the risk of cybercrime
since years and can affect customer loyalty towards the hotel. Moreover, the privacy
policy can come to breach due to such risk.
 Huge investment – the investment in the internet of things and automation is quite high
and also the cost to maintenance is high in this regard due to rapid change in technology
(Norman & Verganti, 2014).
2. Big Data
Big company data lagoons, Hadoop clusters and related build outs will remain to
become operative. Structures leveraging the intellect big data signify would support
hospitality businesses to create smarter verdicts track tremendously targeted promotions
and improved manage real-time portfolios and pricing to be aligned along with
marketplace demands. Analytics might benefit hotels improve touring packages
associated with diverse visitor demographics or even purely deliver visitors with
personalized info regarding local allures over in-room TVs. To acknowledge the benefit
of profitable solutions in these places, businesses will require to develop more established
in the methods they trigger and monetize the big data funds (Biemans, 2018).
Pros of big data
 Better decision-making – With big data the hotel business can take better decision while
providing products and service due to collecting preferred data from the customer.

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 Increased productivity –productivity in the hotel industry is increased due to the use of
this method or tool.
 Improved innovation – innovation has become possible with such analytics of data, as the
idea for innovation is generated from everywhere that is from customer info, employees
and so on (Bruns, 2013).
Cons of big data
 Data quality – The actual data need to be analyzed in order to get accurate estimates or
result. The risk of fake data collection could be involved in big data analytics.
 Need for cultural change – In the hotel industry, the companies are using big data to
develop a data driven culture along with the corporation, which would lead to major
cultural change in the organization (Caillier, 2014).
3. Chabot and artificial intelligence
Chabot and artificial intelligence tools are found to be a powerful method to lead
call centers around the traveling agencies and eco system of hospitality. There is various
uses cased and different in nature like telephone interactions, powering online, taking
orders in room service for hotels or drive through in restaurants. In internet technology
use and automation has driven the operations for ticket resolution and expedited triage,
making the system and process in this industry to be resilient and more available.
Moreover, it has made the new customer facing services like has enabled quick creation
of preparations and delivery systems and improvement to various other capabilities
(Okpara, 2017).

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Pros of Chabot and artificial intelligence
 Fast customer service – One of the advantages of this tool is faster services to the
customer due to the increase in artificial intelligence and reduces the use of human
resource for services.
 Lowering labor costs – As discussed the use of extensive human resource have been
decreased due to the use of Chabot. This would reduce the cost of the company while
lowering the labor cost (Jesus, 2015).
Cons of Chabot and artificial intelligence
 Response to customers is limited – Since the Chabot are involved, they are not able to
respond to customers for every asked question, which could also frustrate the customers.
 Higher cost for Chabot – The investments in artificial intelligence is high by the
companies, which could be one of the drawbacks for the hotels and inability by the small
companies (Coulson-Thomas, 2017).
The above-discussed three sets of disruptive technologies would allow the business in the
hospitality industry to peruse the customization of the lifecycle of guests. Interconnect the
experience around the physical worlds and virtual ones and provide the services that are context
driven like real time offers for the customer can be delivered that would reflects if the customer
is at the golf course or town or property in the large hotel like Hilton.

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Leader role in change management for disruptive technology integration in
the hospitality business
 Effective Communication – The leaders to bring change that is integrating the
technological or data driven culture in the hotel makes effective communication and
dissemination of the knowledge in the organization. This is important to decrease or
eliminate resistance to change by the employees, as the labor use would be decreased due
to an increase in artificial intelligence or automation. The leaders can make employees
understand the necessity for the disruptive change in the organization and reduce refusal
to perform by the staff. Therefore, this responsibility of the leader would include
communication of innovation ambitions effectively; this is also done to attract the
investors of the hotel group who would be supporting hotel ion sustaining investments in
agenda of technology disruption (Huggins & Thompson, 2015).
 Training and development – Another major aspect or role that a leader of the hospitality
business has to be considered for disruptive technology implementation in the
organization is providing training and development to the employees. This would include
identifying the knowledge gap that is the existing skills and competencies in the
organization and the required knowledge and skills to implement this change would be
analyzed. According to the analysis, the gap would be filled with an effective training
program. This would also include the leaders to develop new talent in the organization
(Edelman, 2017).
 Moving from no to how – Another leaders role is to make every “no” statement by the
higher management authorities or employee into “how.” This means that the leaders must
make the employees and senior management ready for the change and focus on how to

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bring change and how would it be effective in nature. Becoming disruption ready would
also involve working with internal compliance functions like internal audit, risk, and
legal audit. It is the leader’s responsibility to acknowledge the readiness and help
employees to adapt to new technological use (Ding, 2018).

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Conclusion
From the discussion over the disruptive technology in the hospitality industry, it can be
concluded that Disruptive technology is the way companies significantly operate and it allows
companies to search for the overlooked markets to be the target and gaining market share. The
hospitality industry is found to have a rapid transformation, with a change in social trends, and
technological environment. The disruptive technologies would make the companies in this
industry as if the Hotel Hilton group to be improved the offering quality, creation of more
customized customer experience, and streaming operations for staff of the companies.
The three key disruptive technologies that would be considered to influence the large
difference in hospitality industry automation and internet of things, big data, and Chabot and
artificial intelligence. Leader role in change management for disruptive technology integration
in hospitality business included moving from no to how, effective communication, and training
and development. Key advantages and influence of Automation and internet of things included
digitalized service, customer satisfaction, and predictive maintenance. However, these disruptive
technologies can have various disadvantages to the hotel industry like Cons of Chabot and
artificial intelligence was a higher cost for Chabot, and response to customers is limited.

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