Technological Developments and Hospitality Sector Analysis Report

This report critically evaluates the impact of technological developments on the hospitality sector, focusing on the Swiss context. It begins with an introduction discussing the influence of globalization and technology on business operations, specifically within the hospitality industry. The report then provides an overview of the hospitality sector in Switzerland, highlighting its importance and the revenue it generates. It analyzes the impact of technology on operations management, discussing technologies currently used, such as online booking systems, social media, and data analytics. The report examines input processes like raw materials, equipment, capital, labor, and information, detailing how technology influences each. It also addresses processing and output stages. Furthermore, the report assesses the impact on stakeholders, including guests, employees, and investors, and evaluates the influence of contextual and cultural factors, providing examples such as e-procurement and digital keys. The conclusion summarizes the key findings and emphasizes the importance of technology in enhancing guest experience and improving operational efficiency within the hospitality sector. The report references several academic sources to support its arguments and analysis.

Running head: TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
Technological developments and the operations of the hospitality sector
Name of the Student:
Name of the University:
Author’s Note:

1TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
Table of Contents
Introduction................................................................................................................................2
Hospitality sector of Switzerland...............................................................................................2
Impact of the technological developments on the operations management processes..............3
Technologies presently used in the hospitality sector............................................................3
Operations management in the hospitality sector..................................................................4
Input Processes.......................................................................................................................5
Raw Materials....................................................................................................................5
Equipment..........................................................................................................................5
Capital................................................................................................................................6
Labour................................................................................................................................6
Information.........................................................................................................................7
Processing Stage.....................................................................................................................7
Output Process.......................................................................................................................8
Impact on the Stakeholders........................................................................................................8
Influence of Contextual factors..................................................................................................9
Influence of Cultural factors....................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

2TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
Introduction
As opined by Hua (2016), the process of globalisation and the extensive usage of the
different kinds of innovative technologies have positively influenced the world of
contemporary business. King and Lee (2016) are of the viewpoint that taking the help of the
different kinds of innovative technologies as well as strategies the contemporary business
firms have greatly changed the business processes used by them which in turn had enabled
them to significantly enhance the prospects of their business. However, at the same time it is
seen that these have at the same time greatly enhanced the level of competition which is
being faced by the different business firms which is turn is taking a toll on the competitive
advantage of these firms and also their profitability (Sigala and Gretzel 2017). The net result
of this is that the firms are integrating different kinds of technologies within the different
business functions or the processes used by them with the intention of gaining an upper hand
over their competitors or rivals (Li et al. 2016). One of the most important aspects in this
regard is the extensive usage of different kinds of technological developments by the
different business firms for the improvement of the efficiency or the effectiveness of the
operations processes used by them. In this report, I will analyse the impact of the
technological developments on the operations of the hospitality industry in the particular
context of the nation of Switzerland.
Hospitality sector of Switzerland
The nation of Switzerland over the years had emerged as one of the major tourism and
hospitality destinations of the world not only because of the suitable climate of the nation but
also because of the picturesque beauty of the concerned nation. More importantly, it is seen
that the booming tourism industry of the nation greatly supports the hospitality industry of the
concerned and the majority of the tourists who visit the nation inadvertently end up taking the

3TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
help of the services offered by the hospitality industry of the concerned nation as well
(Hotelleriesuisse.ch 2019). In this regard, it needs to be said that along with offering
hospitality services to the more than 61.4 million international tourists the hospitality industry
of Switzerland also caters to the interests of the local people of the concerned nation as well
(Archive.shine.cn 2019). Furthermore, the net revenue generated by the concerned industry
for the year 2018 was CHF 46.7 billion in addition to the economic contribution that it makes
towards the growth of the other related industries which are dependent on it as well (Stv-
fst.ch 2019). I personally believe that the transport industry, entertainment industry, tourism
industry, food and beverage industry and others are directly related to the hospitality industry
not only for the revenue that they generate but also for their very existence itself. Moreover,
the nation of Switzerland is also famous for the plethora of hotels, restaurants and others like
Park Hotel Vitznau, Badrutt's Palace | Grand & Wellness Hotel St. Moritz, Boutique-Hotel
Schlüssel and others which are known for the quality hospitality services that they offer to the
guests who opt for their services (Stv-fst.ch 2019). I believe that one of the major reasons
why the different firms within the hospitality sector of Switzerland is because of the guest-
centred services which they offer to the guests keeping into perspective the cultural and other
factors.
Impact of the technological developments on the operations management processes
Technologies presently used in the hospitality sector
Kandampully, Bilgihan and Zhang (2016) have articulated the viewpoint that the
organisational or the business prospects of a business firm greatly depends on the
effectiveness or the efficiency with which it takes the help of the diverse emerging
technologies which are relevant to the sector of its operation. In the particular context of the
Swiss hospitality sector it is seen that 64% of the guests taking the help of the different
services offered by the concerned industry state that “very or extremely important for hotels

4TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
to continue investing in technology to enhance the guest experience” (Stv-fst.ch 2019). I
personally believe that the firms related to the hospitality industry needs to take the help of
the latest technological developments not only for improve the quality of the services which
are being offered to the guests but also to enhance the guest experience as well. In this regard,
it needs to be mentioned that some of the most important technological developments that the
different firms related to the hospitality industry of Switzerland are internet and online portals
for online booking of services, social media and other online platforms for the promotion as
well as the marketing of the services offered by the firms, using the processes of big data
mining and data analytics to understand the needs or requirements of the guests and also the
kind of services that they expect and others (Hotelleriesuisse.ch 2019). In addition to these, it
is also seen that the firms are increasingly resorting to the usage of different kinds of
technological developments for the improvement of the operations processes which are being
used by them and thereby to elevate the guest experience and also to earn a higher amount of
profit.
Operations management in the hospitality sector
I am of the viewpoint that the operations management processes which are being used
by the firms related to the hospitality industry is a bit different from the ones followed or
used by the other industries because of the difference in the nature of the services that it
offers. For example, the primary purpose of the different operations processes used by the
firms related to the hospitality sector is to elevate the experience of the guests and also to
improve the quality of the services which are being offered to them (Neuhofer, Buhalis and
Ladkin 2015). In addition to this, it is seen that different kinds of technological developments
are being used by the firms for the reduction of the time which is required for the delivery of
the services. However, I observed that the major reason which deters the firms from the usage
of different kinds of technological developments within the framework of the operations

5TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
management processes used by them are the cost factor, the inability of the employees to
work or handle these new technological developments and others. In this regard, mention
needs to be made of the Swiss hotel Park Hotel Vitznau which in the recent times had been
able to significantly improve the operations management processes used by it through the
effective usage of different kinds of technological advancements like internet, ‘internet of
things’, social media and others (Stv-fst.ch 2019).
Input Processes
Raw Materials
There are various raw materials that the hotels and others related to the hospitality
industry required depending on the kind of services that they are offering to the guests. In this
regard, it needs to be said that the most common raw materials that almost all the hotels and
firms require are raw food products, ingredients for cooking the food, room service materials
like towels, linens and others (Fraj, Matute and Melero 2015). I personally believe that one of
the major problems that the majority of the hotels and the other firms related to the hospitality
sector of Switzerland face is the problem associated with the procurement of these raw
materials. However, it is seen that the hotels and firms have been able to greatly resolve this
issue through the effective usage of the technological development of e-procurement.
Yadegaridehkordi et al. (2018) have articulated the viewpoint that the effective usage of the
technology of e-procurement enables the organisations to procure the raw materials that they
need for the manufacture of finished products or services in a timely manner without having
to face the problems that they usually face with the traditional procurement systems. In this
regard, mention needs to be made of the Boutique-Hotel Schlüssel which in the recent times
had been able to greatly improve its service delivery speed because of the steady flow of raw
materials that it gets through the usage of e-procurement system (Hotelleriesuisse.ch 2019).

6TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
Equipment
In the contemporary times, it is seen that the hotels and firms related to the hospitality
sector are taking the help of various kinds of equipment to offer quality services to the guests
and thereby to earn a higher amount of profit (Randhawa et al. 2016). Some of the most
important equipment which are being used by the hotels in the recent times in the nation of
Switzerland are remote controls, smartphones, point-of-sale terminal, payment services,
digital keys and others which in a way had drastically changed the nature of the
contemporary hospitality industry (Chathoth et al. 2016). I am of the viewpoint that the
primary purpose of the different hotels behind the extensive usage of these technological
developments is not only to enhance the factor of guest experience but also to overcome the
shortcomings of the services which were offered by them in the earlier times. For example, it
is seen that the Badrutt's Palace offers the option to the guests to make online payment for the
services that they are using. In addition to this, it is also seen that the concerned hotel is
presently using the technology of digital keys and remote controls to make the stay of the
guests at their hotel hassle-free (Stv-fst.ch 2019).
Capital
I personally believe that the capital that the different hotels are required to invest for
the completion of the different business activities of their firm had increased in an
exponential manner because of the large amount of capital and resources which is needed for
the maintenance of the different technologies that they are using. However, at the same time
it needs to be said that the long-term usage of these technological developments is likely to
significantly reduce the operations and other costs incurred by the hotels because of the
reduction in the human labour force that would be needed by them (Sharma 2016). In
addition to these, the effective usage of these technological developments is also likely to

7TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
reduce human error and thereby improve the quality of the services which are being offered
by them to the guests (Breidbach et al. 2018).
Labour
The hospitality industry of Switzerland presently offers employment to more than
63,000 people which forms a major proportion of the entire population of the concerned
nation itself (Stv-fst.ch 2019). However, I personally believe that the extensive usage of new
technological developments is likely to significantly reduce the human effort and labour
which is being needed by the different hotels of the concerned nation. In this regard, it needs
to be said that the majority of the hotels of the concerned nation like Park Hotel Vitznau and
others are actively taking the help of different kinds of innovative technologies like remote
sensors, body sensors, digital keys, automation for carrying the luggage of the guests and
others for reducing the number of employees that they need (Hotelleriesuisse.ch 2019). More
importantly, it is seen that through the effective usage of these technologies they have been
able to significantly improve their service delivery system and thereby enhance the efficiency
of the operations management processes used by them (Sunny, Patrick and Rob 2019).
Information
The different hotels of Switzerland are increasingly resorting to the usage of different
kinds of technologies like bid data mining, data analytics and others not only for the analysis
of the customer trends but also for finding out the kind or nature of services that they expect
from the hotels (Buhalis and Leung 2018). In addition to these, I believe that the usage of
these technologies have also enabled the hotels to design their services which are in
synchronicity with needs of the customers and thereby had enabled them to attract more
customers on the basis of this.

8TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
Processing Stage
I personally believe that the processing stage is one of the most important ones in the
entire process of operations management and can be seen as the bridge between the input and
the output processes. More importantly, it is stage during which the inputs which are being
used by an organisation are being processed to get the desired results. In this regard, it needs
to be said that the different hotels are increasingly resorting to the usage of different kinds of
inputs which they have used to produce the kind of outputs which will in turn satisfy the
guests or the customers (Lu and Kandampully 2016). In this context, mention needs to be
made of the impact made by the different monitoring as well as quality controlling tools
which are being used by the diverse hotels in the present times (Bowie et al. 2016).
Output Process
I am of the viewpoint that the output process or the stage is directly related to the kind
of services which are being offered to the customers and also their level of satisfaction with
the services which are being offered to them. In this regard, it needs to be said that the
majority of the hotels in Switzerland like Park Hotel Vitznau, Badrutt's Palace and others are
increasingly resorting to the usage of different online feedback forms and also reviews to get
an idea about the satisfaction level of the guests (Stv-fst.ch 2019). More importantly, it is
seen that the majority of these hotels have been able to significantly modify their service
design and also the services that they offer to the guests on the basis of the feedbacks as well
as the reviews that they get from the guests (Ladkin and Buhalis 2016). However, at the same
time I would like to say that this is something which was rarely followed in the earlier times
because of the lack of technological developments.
Impact on the Stakeholders
Chathoth et al. (2016) have articulated the viewpoint that the success or the failure of
a business firm greatly depends on the extent to which it is being able to satisfy the needs or

9TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
the requirements of the stakeholders who are associated with them. In this regard, it needs to
be said that the major stakeholders who are directly associated with the hospitality industry
are the guests, employees of the hotels and others (Randhawa et al. 2016). I personally
believe that the extensive usage of the different kinds of technological developments by the
hotels have positively affected the guests and as a matter of fact had elevated the quality of
their experience as well. For example, it is seen that the guests are now getting the option to
book rooms of their choice in their favourite hotels over the internet itself and also make the
required payment via online payment gateways which actually saves a lot of time and energy
(Hua 2016). In addition to this, many hotels have policies in which the guests can get refund
for the services that they had opted in case they cancel the services or do not like
(Kandampully, Bilgihan and Zhang 2016). Furthermore, from the perspective of the guests,
the extensive usage of different kinds of technologies like remote control, digital keys, body
sensor doors, automation for carrying their luggage and others have greatly enhanced the
quality of the services which they are getting while increasing its accuracy. Moreover, the
guests also have the option to leave comments over the online portals of these hotels
regarding the aspects of their service that they do not like.
The employees of the hotels have also been able to gain a significant manner through
the usage of different technologies by the hotels. I believe that one of the major advantages
for the employees is the fact that it had greatly reduced the amount of physical or other forms
of labour that they were required to perform in the earlier times. This in turn had greatly
simplified the kind of work that they are required to perform and thereby enhanced the level
of their job-satisfaction (Sunny, Patrick and Rob 2019). More importantly, the enhanced
amount of profit that the hotels have been able to make through the effective usage of these
technological developments have also enhanced the satisfaction level of the investors and
others who are associated with these hotels.

10TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
Influence of Contextual factors
The contextual factors are related to the environment or the ecology of the nation or
the region in which a particular organisation is operational (Buhalis and Leung 2018). In this
regard, I would say that the major contextual factors which the hotels would have to take into
effective consideration is the factor of climate change and the damage that these hotels are
causing to the environment through their business practices. More importantly, it is seen that
the usage of different kinds of technological developments had greatly increased the amount
of pollutions that these hotels are causing and thus they would have to take the help of the
practices which would in turn enable them to reduce the same (Breidbach et al. 2018).
Furthermore, the hotels are required to take the help of different kinds of technologies for the
formulation of effective waste management system, reducing the amount of damage that they
are causing to the environment and others (Randhawa et al. 2016). In this context, I would
say that taking the help of different kinds of technologies the hotels have developed
sustainable waste management system which not only reduce the amount of harmful waste
that they dispose into the environment but also mitigate the adverse effect of the other
harmful business practices used by them as well.
Influence of Cultural factors
As opined by Sharma (2016), the entity of culture is of paramount importance within
the framework of the hospitality industry and the quality of the services offered by the hotels
to the guests greatly depend on the extent to which they are being able to take into
consideration the culture of the guests. I personally believe that the hospitality services
provided by the hotels vary from guests to guests depending on the cultural background of
the guests. In this regard, it needs to be said that the guests from USA would expect a cordial
kind of service wherein they would be greeted in an effective manner by the hotel staffs
whereas this might not be liked by the guests from the other cultural backgrounds. More

11TECHNOLOGICAL DEVELOPMENTS AND HOSPITALITY SECTOR
importantly, the kind of housekeeping services that the guests expect is also largely
dependent on the cultural background of the guests (Bharwani and Talib 2017). Thus, the
hotels are increasingly resorting to the technologies of data mining, data analysis and others
to find out the preferences as well as the service expectations of the guests from the different
cultural backgrounds and thereby designing their services on the basis of these aspects.
Moreover, the different hotels have also been able to amend the marketing as well as
promotional strategies used by them in a significant manner to attract guests from different
cultural domains (Fraj, Matute and Melero 2015). The same applies to the kind of food menu
that the hotels are currently offering to the guests from different cultural backgrounds. Thus,
it can be said that the extensive usage of different kinds of technological developments have
enabled the hotels to make the services offered by them guest-centric but also enhance the
experience of the guests belonging to different cultural backgrounds as well.
Conclusion
To conclude, the extensive usage of different kinds of technological developments
have positively affected the hospitality sector in the contemporary times. More importantly, it
is seen that the widespread usage of these technological developments have not only enabled
the hotels to significantly improve the quality of the services which they offer to the guests
but at the same time elevate the experiences of the guests as well. Furthermore, the positive
impact of these technological developments on the operations management processes used by
the hotels can in no way be relegated to the background. For example, it is seen that the
hotels have been able to significantly reduce their operations cost and also the amount of
human labour that they require for the completion of different tasks or job roles through the
effective usage of diverse technological developments. Moreover, the usage of the same had
also helped the hotels to fulfil the needs or the requirements of the different stakeholders and
also to take into effective consideration the cultural factor for the services that they offer to