Analyzing the Impact of Crowd Sourcing on the Hospitality Industry

This report examines the significant influence of crowdsourcing on the hospitality industry. It delves into various aspects, including the introduction of crowdsourcing, its advantages, and different types such as crowd wisdom, creation, voting, and funding. The report explores the hospitality industry's sectors, including accommodation, food and drinks, travel, and entertainment. It analyzes the impact of crowd voting on the hotel industry, crowd funding, and the entertainment industry, and crowd creation's effect on tourism. Furthermore, it investigates the impacts on customer relationships, management, production, and growth within the hospitality sector, and addresses regulatory and ethical considerations related to crowdsourcing.

Running head: Crowd Sourcing and Hospitality 0
Crowd Sourcing and Hospitality
Industry
2019

Crowd Sourcing and Hospitality industry 1
Table of Contents
Introduction.................................................................................................................................................2
Hospitality Industry.....................................................................................................................................3
Impact of Crowd funding and Entertainment Industry................................................................................5
Impact of Crowd Creation on Tourism........................................................................................................5
Brainstorming..............................................................................................................................................5
Regulation and Ethics..................................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

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Introduction
With the growing IT industry and advancement in technologies transforms life style of
not only individual but also changed performance of every industry. There re lot of techniques or
ideas are introduced to develop industries smartly and for achieving good profit or results. In this
project we will deal with the effect and benefit of crowd sourcing on hospitality industry.
What is Crowdsourcing?
This is an act in which group of people are engage in order to complete any specific task it may
include innovations, resolving concerns etc. This method is totally based on social networking sites and
web 2.0 as these platforms have taken that vast form so to make connectivity and to contribute efforts in
combined form is now not difficult task. This complete phenomenon is well known as Crowd sourcing
(Brown, 2019).
Image Source: (Introduction to Crowd sourcing , 2019)

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The phenomenon of crowd sourcing introduces new directions for organizations to grow in better way,
engagement with customers, getting creative ideas, reducing production costs. Due to use of internet
organizations and its stakeholders get a connectivity to communicate and implementing their values
together.
Image Source: (Process of Crowd sourcing , 2019)
Advantage of Crowdsourcing: Crowdsourcing helps organization in reducing costs, efficiency and speed
of the output. If a work is done by one person in one week the same work when divided into segments
and conducted by a bunch of people than the same work will be get done with in some hours. With the
introduction of Digitalization crowdsourcing is getting much easier to implement with these platforms
with business. Platform of social networks provides a transparent way to get communicate with co-
workers (Sigala, Haller, 2019).
Crowd source is categorized in four types which are mentioned below:
i. Crowd Wisdom
ii. Crowd Creation
iii. Crowd Voting
iv. Crowd funding
Hospitality Industry
The industry which works on principal of customer satisfaction and relaxation of customers is
known as hospitality industry. The sectors which are divided in the hospitality industry are mentioned
below:

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The sectors in which hospitality industry is divided are as follow (Hospitality Inudstry , 2019):
a. Accommodation
b. Food and Drinks
c. Travelling
d. Entertainment Industry
e. Time sharing
Image Source: (Hospitality Industry , 2019)
Impact of Crowding Voting on Hotel industry:
Crowd Voting: It is a process and part of crowd sourcing technology in which the group
of people or a community give their votes, feedback about their preferred brand or service, it
helps that particular business to improve or to develop their working process. This
communication builds a trust between the customer and company.
Hotel Industry: The main focus of Hotel is to provide accommodation to travelers or to
people who are far from their own house. The accommodation includes with the shelter, food
service, refreshment etc. Hotels are furnished commercially to attract customers also they
provide their service to arrange family functions, business ceremonies, political headquarters etc.

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Impact of Crowd funding and Entertainment Industry
Crowd Funding: A part of crowd sourcing technology in which the funding or small
amount is raised by the large number or group of people; that fund or amount is used to start a
new business, this phenomenon is known as crowd funding (Medina-Molina, Rey-Moreno,
Felício, & Paguillo, 2019).
Entertainment Industry: An activity which maintains concentration or attention of
people or crowd for providing them relaxation and joy is known as entertainment and the
business comes under this sector are called entertainment industry. This industry has expanded
its roots everywhere now there are lots of websites or applications are in the markets which are
now converted in brand (Hennig-Thurau,& Houston, 2019)
Impact of Crowd Creation on Tourism
Crowd Creation: It is the most common process of crowd sourcing in which the solution
is provide by the discussion with the people and feedback of the customer is taken and according
to those feedback or suggestions changes are made on the particular service. These feedback are
taken to eliminate the dilemma arise in the people or the management of any company related
with the service.
Tourism Industry: The activity which is performed in order to achieve either pleasure or
it is performed for the business purposes to touring some different place or location. It may be
include both the national or international tourism. From past few years there is revolutionary
change is observed in the tourism industry and there are multiple reasons behind this change
(Altin, Koseoglu, Riasi, 2018).
1. Defer Judgment
2. Reach for Quantity
Brainstorming
1. Impact on the customer relationship: By the implementation of the technology in
hospitality industry affect company in many ways in which the customer relationship is
very important and dominant fact. For every industry customers are source of income of

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their business and for that to earn the trust of customer is very mandatory. After
implementations of technology the industries are growing in better way, the way to
communicate with the customers are now updated due to which the wait for resolving
concerns is no more hectic thing.
2. Impact on management: Technology connects the employee with the higher authorities of
company. Each and every details of the employee related with the shifts, payroll, and
attendance can be access easily, also employees can communicate about their concern
with the authorities.
3. Impact on production and growth: Hospitality industry is much affected by the
technology, their production rate is improved. The annual income of the industry is
changed in the way that this industry becomes one of the most efficient and fastest
growing industries globally. Technology connects the countries together for the spreading
business and which is the reason that this industry is acting globally (Elshaer, Abdelaal,
Amir, Arous, & Khan 2019).
Regulation and Ethics
Crowd voting and Ethics: This form of technology can be related with the ethics in very
perfect manner the four factors which describe the term are mentioned below:
i. Privacy: There should be privacy with the personal details that should be only
accessed by the responsible authority of the organization so no any customer or voter
face any kind of issue.
ii. Respect: Every customer is valuable for any organization so feedback of every
customer is also valuable with the service if it is good then there are no any issue but
if feedback is negative than that should be focused because that particular individual
might face some challenge with the service and that customer is most valuable his/her
feedback will help the organization to make change or to improve in the mistake
iii. Communication: There should be proper communication with the employees and
customer as this will help the organization to know the concern, about the trend, and
many factors which act as favorable term for the organization also the trust between
them remains the same and the issue of switching brand, company will reduced.

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iv. Decision making: The crowd voting will provide a platform or results on which the
management has to take actions sometimes results by any observation are not easy
they put the management in dilemma but if it is in favor of the company and
customers the management should act on the same (Rajput, Sarirete, & Desouky,
2019).
Conclusion
In this report study about the crowd sourcing is mentioned which include its parts and its
role in any business. Further the discussion was made on Hospitality industry including the
categories in of this industry. The final discussion was made on the impact of the process o
crowd sourcing when get implement in the hospitality industry.
References
Brown, T. (2019). An Evaluation of Crowdsourcing as a Tool for Marketing

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Activities (Doctoral dissertation, Luleå University of Technology).
Altin, M., Koseoglu, M. A., Yu, X., & Riasi, A. (2018). Performance measurement and
management research in the hospitality and tourism industry. International Journal of
Contemporary Hospitality Management, 30(2), 1172-1189.
Chatterjee, A., Borokhovich, M., Varshney, L. R., Vishwanath, S., Varshney, L. R., Chatterjee,
A., ... & Borokhovich, M. (2018). Efficient and flexible crowdsourcing of specialized
tasks with precedence constraints. IEEE/ACM Transactions on Networking (TON), 26(2),
879-892.
Rajput, A. E., Sarirete, A., & Desouky, T. F. (2019). Using Crowdsourcing to Identify a Proxy of
Socio-Economic status. arXiv preprint arXiv:1902.06914.
Hennig-Thurau, T., & Houston, M. B. (2019). Entertainment Product Decisions, Episode 1: The
Quality of the Entertainment Experience. In Entertainment Science (pp. 295-312).
Springer, Cham..
Kohler, T., & Chesbrough, H. (2019). From collaborative community to competitive market: the
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Kothari, R., & Krishnaswamy, D. (2018). U.S. Patent Application No. 10/085,205.
Elshaer, A. M., Abdelaal, E., El Amir, J., Arous, S., & Khan, M. A. (2019). A FRAMEWORK
FOR SPC-BASED EMERGENCY MANAGEMENT IN HOSPITALITY
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Sigala, M., & Haller, C. (2019). The Impact of Social Media on the Behavior of Wine Tourists:
A Typology of Power Sources. In Management and Marketing of Wine Tourism
Business (pp. 139-154). Palgrave Macmillan, Cham.
Whitla, P. (2009). Crowdsourcing and its application in marketing activities. Contemporary
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