Entrepreneurship for Hospitality Leaders: Tech in Australia

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This report provides an overview of the impact of disruptive technology on the Australian hotel and hospitality industry. It discusses how disruptive technologies, such as online travel agents (OTAs) and social media marketing, have increased consumer reach, promoted price transparency, and enhanced customer experiences. The report also highlights the role of technology in improving efficiencies, creating personalized experiences, and promoting energy conservation within the industry. Furthermore, it examines future trends like the use of robotics in hotels and the increasing demand for data analysts to better understand customer preferences. The report concludes with recommendations for the industry to invest in research and development to stay competitive and ensure sustainable practices.
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Running Head: Entrepreneurship for Hospitality Leaders
Entrepreneurship for Hospitality Leaders
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Entrepreneurship for Hospitality Leaders 1
Contents
Introduction.................................................................................................................................................1
Disruptive technology..................................................................................................................................1
Impact of disruptive technology in Australian Hotel and Hospitality Industry............................................2
Role of disruptive technology in Australian Hotel and Hospitality Industry................................................3
Future trends of disruptive technology in Australian Hotel and Hospitality Industry..................................4
Recommendation........................................................................................................................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6
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Entrepreneurship for Hospitality Leaders 2
Introduction
The purpose of this task is to provide a brief overview of the technological impacts on the
Australian hotel and hospitality industry. The Australia hotel and hospitality industry are known
for its welcoming nature towards the visitors of the country. The organizations present in this
industry believe that tourism will help them to grow in the competitive index and gain reputation
in the market as well. Further talking about business it should be noted that without innovation
no entrepreneur and earn well in the market and innovation in the business is a factor which
keeps them going in the international market as well. In short, sustainability is gained with the
help of such practices. Use of disruptive is a part of innovation and entrepreneurship process
only. Further, the below mentioned task talks about the use of disruptive innovation in the hotel
and hospitality industry of Australia.
Thesis Statement: The below mentioned task provides a detailed view of the impact role and
future trends of the disruptive technology on the Australian hotel and hospitality industry. As
technology has become one of the major aspects of growth so, the task talks about the ways in
which such technology is used in the business process.
Disruptive technology
Disruptive technology refers to those technologies that significantly used to alter the ways in
which business proceeds and operates in the market. More specifically it is a term in the field of
business administration which relates to the process of innovation that creates new additional
values in the activities of the company which influences the market to act in favor of them.
Disruptive innovation specifically helps in the organization in attaining higher position in the
market leaving the competitors behind (Guttentag, & Smith, 2017).
Further it should also be noted that not all innovations are disruptive, some innovations are also
called sustainable innovation. Sustainable innovation refers to innovation that initiates
sustainability of the company and its activities in the market whereas disruptive innovation refers
to the innovation that creates identification of the company or industry in the market through its
differential activities (Viglia, Pelloia, & Buhalis, 2018). Disruptive innovation is used by
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Entrepreneurship for Hospitality Leaders 3
entrepreneurs in the organization who aims to promote the company in the market by taking
aggressive techniques and risks as well, not by the market leaders who have already established
their markets. The disruptive technology was mainly identified by Milan Zeleny in the year
2009; he states that high quality technology which is used by industries in the market to replace,
support or upgrades the outdated technologies in the market is called disruptive technology
(Hallak, Assaker, O’Connor, & Lee, 2018).
Such technologies simply help the business process in gaining more profits by becoming
efficient in the market. Relating the concept to hotel and hospitality industry, it should be noted
that this industry requires high degree of technical implication in their process to gain
competence in the competitive index. Moreover, this industry helps the country to grow over
time and increase their national income as well, as efficient tourism will increase the numbers of
traveler visiting the country Australia. Disruptive technology has the biggest contribution in
process of disruptive innovation implemented by entrepreneurs in the market (Guttentag, 2015).
Impact of disruptive technology in Australian Hotel and Hospitality
Industry
Talking about the impact of disruptive technology, it should be noted that in hotel and hospitality
industry, technology plays an important role as it helps the country to promote their tourism
activities worldwide through social media marketing. Apart from that adventure tourism is also
highly promoted in Australia, so technology helps the adventure tourism companies to initially
promote their market trade and then aware people for saving the nature and the industry as well.
Furthermore, the impact of disruptive technology is discussed below:
Online Travel Agents (OTAs) scheme was introduced in the market of Australia so as to
initiate consumer ownership by personal computers and help people to book tickets and
use the services of the companies online.
The biggest impact of disruptive technology in the Australian hotel and hospitality
industry was that with the help of this process the consumer base of the companies
increased which promoted international trade as well. Like, people from New York used
the services of the hospitality companies of Australia to come and travel there due to
which the country gained the income from their nature which increased the national
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Entrepreneurship for Hospitality Leaders 4
income as well. Cross country culture trends also started gaining appreciations as the
companies of Australia, with the use of technology identified the trends of different
countries and used them in their industry which raised the satisfaction level of the
customers in the market (Salvioni, 2016).
As the process, disruptive innovation also induced price transparency in the market due to
which the companies started earning the trust of the customers. As all the prices of the
products were prior mentioned on the website of the company which helped the
prospective visitors to compare between prices of different companies and choose the
organization providing best services to them. All these activities collectively increased
the satisfaction level of customers in the market (Veijola, et. al., 2014).
Social media marketing techniques were collectively mixed with disruptive innovation
with some risks as well. As the companies present in Australian hotel and hospitality
industry created packaged tours for the customers gain higher level of satisfaction in the
market. These packages included tickets for the rounds, accommodation, and food and
site scene traveling expense. The customers were provided a discount on all such rates
and a collective package; this increased the sales of the company along with technical
advancement (Boxall, Nyanjom, & Slaven, 2017).
The industry became more safe and secure and the companies started using technology in
their business. Adventure tourism was promoted in the market and all the services
became more customers driven and efficient as well (Palacios-Marqués, Merigó, & Soto-
Acosta, 2015).
Role of disruptive technology in Australian Hotel and Hospitality
Industry
Technology to improve efficiencies
The term technology itself suggests that it is a way to improve the efficacies of the organizations
and industries using them. As discussed is above, technology is an aspect which helps a business
to grow in long run and gain advantage in the target market as well. Similarly, it is the role of
disruptive technology to analyze the resources and opportunities available to them and
implement technology in such a way that identification is gained by the company in the market.
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Entrepreneurship for Hospitality Leaders 5
Disruptive technology helps an organization to initiate activities which are not performed by any
other organization in the market (Willie, et. al., 2017).
Creating more personal experience
Technology in the field of hotel and hospitality management aims to initiate lively experience to
the customers so that they prefer the services of the industry again. As the adventure tourism
industry of Australia says that they want to provide personal experience to the customer which
makes them close to nature. So, it is the role of the technology to satisfy the requirements of the
customers adequately, like many customers travel for business trips and many travels for gaining
lively experience. So, the disruptive technology shall segregate the services provided to
customers that they attain services which are required by them and pay only for that amount
(Divisekera, & Nguyen, 2018).
Technology to save energy
Technology is majorly used in this industry to replace the natural resource used by the company.
The fact is known to all that natural resources are getting depleted day by day, due to which
companies like Intrepid travels which are present in adventure tourism use technology to spread
awareness regarding the use of energy in the environment. Such companies used disruptive
technology to save energy, further talking about hotels present in the country; it should be noted
that hotels are shifting towards environmental sustainability programs through which they are
reducing the energy use and replacing them with technological advancement (Wang, So, &
Sparks, 2017).
Cross Culture transaction and collective growth
Another role of the disruptive technology is that it aims to increase the satisfaction level of
companies by initiating cross culture management activities. The hotel and hospitality industry is
linked with the cross culture transaction of Australia with different countries. So, the role of
technology is to link different countries collectively and organize actions in such a way that
overall growth is made in the industry. Airline companies, hotels, travel companies’ etc. form a
part of this industry which requires interaction with companies of other countries to grow and
sustain. So, disruptive technology connects different organizations and industries which help the
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Entrepreneurship for Hospitality Leaders 6
company to provide higher level of satisfaction to the customers along with harmony among
different countries (Patiar, Ma, Kensbock, & Cox, 2017).
Future trends of disruptive technology in Australian Hotel and
Hospitality Industry
The robotics trend in hotels
The report of Travel weekly stated that Americas Lodging Investment Summit (ALIS) is aiming
to use robots for the help of hotels so as to deliver amenities at the doorstep of guest and
providing them sanitation facilities. The initiation seems to contradict the role of hotel
companies, as robots cannot provide homely and welcoming experience to the customers. But
initiation of this technology will help the companies to fill the workforce gap and many employs
are required by the company but few of them are available on the job. So the development of
robot facilities will reduce the work pressure of employees and help the company to divide work
properly and grow (Bowie, 2018).
Technology to improve experiences
As technology plays an important role in the travel lifecycle and it also helps in the promotion
and advertisement activities for the industry in the target market. So, analyzing the future it
should be noted that companies are now becoming more customer-centric and are focusing on
increasing the satisfaction level of the customers. Activities like online booking, digital key for
rooms, robotic services, automated check-in and check-out activities can be introduced by the
companies present in Australian hotel and hospitality industry to gain appreciation (Chan,
Okumus, & Chan, 2017).
Demand for data analysts and scientists
There is an emerging demand for data analysts and scientists in the market so as to identify the
right type of people for the services of the company. In order to truly understand the guests, the
hotel operators are increasingly turning to data scientists to get under the skin of customers. In
order to meet the high expectations of customers’ big data etc., activities are initiated in the
industry (Brochado, Rita, & Margarido, 2016).
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Entrepreneurship for Hospitality Leaders 7
Generations and Technology
The right types of people are being identified by the company who demands the services offered
by the company. Like, adventure tourism services are mainly preferred by millennial tourist so
the company is aiming to provide technological services to people according to generation. As
old age, people will not understand complex technology (Rosenbaum, & Wong, 2015).
Recommendation
Thus, it should be recommended to the industry that they should focus more on the research and
development department field so that they are able to track competitive technology which can
enhance the skills and abilities of the market to grow. Investment on R&D will reduce the use of
energy and will promote the activities of companies in the international market as well. Apart
from that, disruptive technology should be initiated carefully and it shall not create destructions
of the environment and the market in any way.
Conclusion
Thus, in the limelight of above mentioned events, it should be noted that disruptive technology
refers to the process of technical changes in the organization which increase the profit margin of
the company. The above mentioned report successfully explains the impact, role and future
trends of the use of disruptive technology in the Australian hotel and hospitality industry. The
task also talks about the recommendations to the industry to improve with the help of disruptive
technology in the market. The report satisfactorily fulfills all the requirements of the task.
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Entrepreneurship for Hospitality Leaders 8
References
Bowie, D. (2018). Innovation and 19 the century hotel industry evolution. Tourism
Management, 64, 314-323.
Boxall, K., Nyanjom, J., & Slaven, J. (2017). Disability, hospitality and the new sharing
economy. International Journal of Contemporary Hospitality Management, (just-
accepted), 00-00.
Brochado, A., Rita, P., & Margarido, A. (2016). High tech meets high touch in upscale
hotels. Journal of Hospitality and Tourism Technology, 7(4), 347-365.
Chan, E. S., Okumus, F., & Chan, W. (2017). The applications of environmental technologies in
hotels. Journal of Hospitality Marketing & Management, 26(1), 23-47.
Divisekera, S., & Nguyen, V. K. (2018). Determinants of innovation in tourism evidence from
Australia. Tourism Management, 67, 157-167.
Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism, 18(12), 1192-1217.
Guttentag, D. A., & Smith, S. L. (2017). Assessing Airbnb as a disruptive innovation relative to
hotels: Substitution and comparative performance expectations. International Journal of
Hospitality Management, 64, 1-10.
Hallak, R., Assaker, G., O’Connor, P., & Lee, C. (2018). Firm performance in the upscale
restaurant sector: The effects of resilience, creative self-efficacy, innovation and industry
experience. Journal of Retailing and Consumer Services, 40, 229-240.
Palacios-Marqués, D., Merigó, J. M., & Soto-Acosta, P. (2015). Online social networks as an
enabler of innovation in organizations. Management Decision, 53(9), 1906-1920.
Patiar, A., Ma, E., Kensbock, S., & Cox, R. (2017). Hospitality Management Students’
Expectation and Perception of a Virtual Field Trip Web Site: An Australian Case Study
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Entrepreneurship for Hospitality Leaders 9
Using Importance–Performance Analysis. Journal of Hospitality & Tourism
Education, 29(1), 1-12.
Rosenbaum, M. S., & Wong, I. A. (2015). If you install it, will they use it? Understanding why
hospitality customers take “technological pauses” from self-service technology. Journal
of Business Research, 68(9), 1862-1868.
Salvioni, D. (2016). Hotel Chains and the Sharing Economy in Global Tourism.
Veijola, S., Molz, J. G., Pyyhtinen, O., Hockert, E., Grit, A., Molz, J. G., & Höckert, E.
(2014). Disruptive tourism and its untidy guests: Alternative ontologies for future
hospitalities. Springer.
Viglia, G., Pelloia, M., & Buhalis, D. (2018). Information Technology in Hospitality Education.
In Innovation in Hospitality Education (pp. 87-100). Springer, Cham.
Wang, Y., So, K. K. F., & Sparks, B. A. (2017). Technology readiness and customer satisfaction
with travel technologies: a cross-country investigation. Journal of Travel
Research, 56(5), 563-577.
Willie, P. A., Connor, D., Sole, J., Forgacs, G., Grieve, R., & Mueller, J. (2017). Human capital
challenges in the hotel industry of Canada: finding innovative solutions. Worldwide
Hospitality and Tourism Themes, 9(4), 402-410.
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