Technology Utilization in the Hotel Industry:

Challenges and Prospects

A Thesis
Submitted to the Faculty of the
College of International Tourism and Hospitality Management
Lyceum of the Philippines University Manila

In Partial Fulfillment
of the Requirements of the degree
Bachelor of Science in International Hospitality Management
with specialization in Tourism Management
Bachelor of Science in Cruise Line Operations in Hotel Services
Hotel and Restaurant Administration

Baquiran,Cheney C.,
Barberan, Ryan John R.,
Galang, Rainier C.,
Margos,Yvan R.
Trajano, Herald L.,

July 6, 2021
College of International Tourism and Hospitality Management
APPROVAL SHEET

This thesis entitled TECHNOLOGY UTILIZATION IN THE HOTEL INDUSTRY:

CHALLENGES AND PROSPECT OF SELECTED 4TH YEAR CRUISE LINE STUDENTS IN
LYCEUM OF THE PHLIPPINES UNIVERSITY-MANILA prepared and submitted by
BAQUIRAN, CHENEY C., BARBERAN, RYAN JOHN R., GALANG, RAINIER C., TRAJANO,
HERALD L., AND MARGOS, YVAN R. has been reviewed and recommended as partial fulfillment of
the requirements for the degree of Bachelor of Science in International Hospitality Management with
specialization in Tourism Management, Cruise Line Operations in Hotel Services, Hotel and Restaurant
Administration

MS. EUNICE G. PARCO

Research Adviser

Accepted and approved by the panel of examiners following a successful Oral Defense on July 6, 2021

Panelist Panelist

Accepted and approved in partial fulfillment of the requirements for the degree Bachelor of Science in
International Hospitality Management with specialization in Tourism Management, Cruise Line
Operations in Hotel Services, Hotel and Restaurant Administration

DR. LILIBETH C. ARAGON

Dean, College of International and Hospitality Management
Date: __________
Technology Utilization in the Hotel Industry: Challenges
and Prospects
Baquiran,Cheney C., Barberan, Ryan John R.,Galang, Rainier C.,Trajano, Herald L.,
Margos,Yvan R.
Lyceum of the Philippines
Manila.lpu.edu.ph

ABSTRACT

Technology has been present since the dawn of time. Since then, technology has developed from rocks and
stones to microchips embedding a lot of data. With the rise of taverns, inns, and now modern-day hotels, prudence
demands that technology be implemented in order to satisfy customers and have an advantage over the competition.
Current research does not offer aggregated data, defined as “compiled into data summaries or summary reports,
typically for the purposes of public reporting or statistical analysis—

The hospitality industry arose from informal agreements between locals and tired travelers searching for a
comfortable place to rest their horses and lay their heads (Jobs, 2020). These casual stays eventually developed into
more than just a place to stay. The hospitality industry arose to serve an increasingly mobile class of traders, nobles,
scholars, and priests (Heffernan, 2014).

This study utilized the qualitative synthesis method, where the researchers systematically search for
research on a topic and draw the findings from individual studies together (Seers, 2012). The researchers collected
data from 25 research studies and divided them into five categories in accordance with the Statements of the
Problem. Sites used to assist in the study were Google Scholar, and relevant studies from the years 2011 to 2021
were collected.

Five categories have been formed: 1) Technologies Used; 2) Productivity; 3) Competitive Advantage; 4)
Challenges, and 5) Trends. These themes were analyzed, have drawn insights on how hotels are implementing
technology in their premises, their effects, challenges to overcome, and what to expect shortly.

The researchers conclude that modern-day hospitality services such as hotels utilize various technologies to
satisfy their clients. Hotel companies use cloud computing (Ayoobkhan & Kaldeen, 2020) to increase overall
efficiency, information technology to monitor and improve energy efficiency (Masa, 2020), room services, and
seamless billing (Bhatnagar, 2020) to guarantee a positive customer experience, and general information technology
used to boost the employees' attitude, self-efficacy, and subjective norms (Ko, et. al, 2016).

It has been found that hotels use a lot of technology to implement new features in their hotels, to guarantee
customer satisfaction, to increase employee productivity, to have an advantage over the competition, and to promote
local economic growth. It is recommended for the hotels to adapt the knowledge compiled, and to address the
information gaps, such as the definition of “smart hotel,” that were addressed in this paper.

Keywords: hotel, technology, advantages, usage of technology

INTRODUCTION
Technology shapes everything from our food, our homes, and how our cities are managed. It is progressing
at a higher rate than ever before. That includes the hospitality industry, which is leading the progression of
intelligent business technology. It is changing both customer attitudes and the way the hospitality industry operates.
Marketing, management, and hotel entrepreneurs can no longer operate in silos, and technological
innovation offer them with the necessary resources, instrument, and methods to generate unforgettable interactions
that can contribute to significant industrial transformation and success. Some market changes contribute to
significant enhancements and cost savings for hospitality firms, while others alter how hotel architects design their
facilities, utilities, management framework, and staffing needs. With technology present, hotel owners and operators
can ease the pain of management.

Current research does not offer aggregated data, which the Great Schools Partnership (2014) defines as
“compiled into data summaries or summary reports, typically for the purposes of public reporting or statistical
analysis—i.e., examining trends, making comparisons, or revealing information and insights that would not be
observable when data elements are viewed in isolation”. Hotel management seeks information to help improve their
business, and the customers’ experience.

This study seeks to address this information gap by gathering information from multiple research studies.
These studies shall then be gathered and answer the questions of the technology currently being used in hotels, how
it improves productivity, how it offers a competitive advantage, challenges present in implementing it, and how the
future of technology holds from the information aggregated from these research articles.

Statement of the Problem

This study aimed to probe the utilization of technology in the hospitality industry, specifically the hotel
industry. It will also identify challenges and prospects for technology to be implemented at a much faster rate.
Furthermore, it specifically sought to answer the following questions:

1. What are the different technologies used in the hotel industry?

2. How does technology improve productivity?

3. How do hotels use technology for competitive advantage?

4. What are the challenges in the implementation of technology in the hotel?

5. What are the new trends in terms of the technologies used in the hotel industry?

LITERATURE REVIEW

The hospitality industry arose from informal agreements between locals and tired travelers searching for a
comfortable place to rest their horses and lay their heads (Jobs, 2020). Back then, hospitality typically meant a
simple meal and a few sips of ale. These casual stays eventually developed into more than just a place to stay. The
hospitality industry arose to serve an increasingly mobile class of traders, nobles, scholars, and priests (Heffernan,
2014).

Technology is a complex issue in the hospitality industry (Soler, 2020). Purchasing technological solutions has
not been at the top of the agenda for an industry that has traditionally excelled and set the benchmark for consumer
service (Jobs, 2020). Not because hoteliers like to be old-fashioned, but because tourists did not notice until recently.
Guests are concerned about the consistency of the mattresses as well as the wear on the carpets. They think about
hot water, air conditioning, and elevators that work (Robinson, 2021). The hotel industry has several positive effects
on the local economy, including the creation of new employment, the support of the local economy

A study presented by Pham & Williamson et al. (2019) has investigated the relationship among customer
technology readiness, perceived value, satisfaction with the hotel website’s integrated self-service technologies, and
purchase intention. They used data from 668 international tourists who were vacationing in Vietnam and those who
stayed in luxury hotels. The results have found that a positive correlation exists between optimism and
innovativeness, customer perceived value, customer satisfaction, and customer purchase intention. The study has
shown that the prevalence of technology increases customer satisfaction.

Orthodox hotel operators have put a high value on providing premium service to their clients (Ko et al., 2016).
With the growing demand for detailed knowledge from consumers and hotel professionals, hotels have implemented
computer-based IT facilities to reduce prices, boost competitiveness, raise sales in the hospitality industry, and
maximize customer satisfaction. However, scholars have stated that it is not entirely acknowledged that human
considerations are not considered (Hasan, 2003, as cited by Ko et al., 2016). Employees' desire, skill, and managers'
encouragement are examples of those obstacles. Finally, managers should be mindful of how their efficiency has
improved due to the use of information technology (Soares et al., 2020). This is especially crucial when
implementing an information system so they can see and understand the advantages of using a new system that can
help boost their service and increase guest loyalty in hotels. Their motivation would also noticeably improve.
Managers should aim to publicize any improvements in revenue, visitor loyalty, service efficiency, and productivity
due to introducing advanced technologies and any drop in work-related injuries (Ruiz-Molina et al., 2013).

A paper by Han et al. (2021) argued that mobile technology in hotels has the potential to offer creative business
options for both staff and clients, but it is still underutilized, and managerial and organizational challenges persist.
Eighteen managerial challenges were identified, leading to creating a mobile technology management system with
six themes: strategic aim, customer management, logistics management, process design, vendor management, and
infrastructure management.

A paper authored by Tavitiyaman et al. (2020) investigated the impact of prior experience and education level
on perceived hotel technology utility. In particular, 301 foreign visitors took part in this report. Their findings
indicate that tourists' prior interactions and education level have an engagement impact on the perceived utility of
hotel technology in terms of recognizing and answering questions, delivering factual information, and talking in
multiple languages. Regardless of education level, the understanding of technology adaptation continues to
demonstrate a commonality among novice visitors.

Okumus & Bilgihan et al. (2017) have investigated potential barriers to information technology (IT)
implementation in hotel companies. The researchers conducted a series of interviews with chief information officers,
IT managers. It has found that the barriers are divided into three stages: pre-implementation (which includes cost
and return on investment, and resistance by owners and executives), the actual implementation (integration issues,
time delays, vendor contact issues, and employee resistance), and post-implementation (inadequate staff training,
and customer resistance). In all stages, resistance is present – whether from the owners, the employees, and the
customers.

Koutroumanis (2011) has stated that the ever-changing face of technology has played an essential role in the
growth of the hotel and restaurant industries. His paper looked at the effect of innovations on the hotel and
restaurant industries. A comprehensive analysis of the literature on the advancement of technology in the industry
was related to establishing the strategic strategy. The identification and application of these innovations will aid in
the development of a long-term competitive edge for hotels and restaurants.

This study was performed at the residence of the researchers through the use of a personal computer. The
collected data was then prepared and organized. A thorough qualitative analysis was performed, which were then
divided into themes. It was then presented cohesively, as seen in the next chapter.
RESULTS AND DISCUSSION

After data collection, a detailed data explication of the research transcripts was executed. The data came from
twenty-five research studies. Aggregating these significant statements has shown five central ideas and have been
labeled as 1) Technologies Used; 2) Productivity; 3) Competitive Advantage; 4) Challenges; 5) Trends. These
themes were analyzed, have drawn insights on how hotels are implementing technology in their premises, their
effects, challenges to overcome, and what to expect shortly.

Different technologies used in the hotel industry

The aggregated research data has shown that the hotels use websites, self-service technologies (SSTs) (Pham,
et. al, 2020), a hotel intelligence guidance system based on ZigBee (Xioayan, et. al, 2020), technology acceptance
model (Seo & Ahn, 2018), renewable energy technologies (Kanokwan, 2021), reducing health risks through the
usage of applications (Shin & Kang, 2021), general amenities such as Wireless Fidelity (Wi-Fi), digital conference
facilities, mobile communication, near-field communication (NFC), robots, infrared sensors, smart room keys,
entertainment on tap, cloud services (Aurecon, 2021), smart energy management, predictive maintenance, smart
guest experiences, big data protection, smart reserved parking, remote check-in and check-out, room keys, and smart
room services (Attala, 2019). With the data, the researchers conclude that modern-day hospitality services such as
hotels utilize various technologies to satisfy their clients.

Table 1. Related studies about different technologies used in the hotel industry

Technology Utilization in the

Title of the Study (Year of Hotel Industry: Challenges and
Authors / Locale Prospects
Publication)
Technologies Used

Pham, L.

Williamson, S.

Lane, P.
Technology readiness and
purchase intention: role of Limbu, Y. Hotel website
perceived value and online
satisfaction in the context of Nguyen, P. Self-service Technologies
luxury hotels (2020)
Coomer, T.

Vietnam

Hotel intelligent guidance Xiaoyan, S. The guidance system uses the

system based on ZigBee ZigBee technology, with a portable
Technology Wei, S. module and a guidance module.

(2020) Zheng, Z.

Peng, X.
China

Seo, S.
Why hotel guests go mobile?
Examining motives of Ahn, J. Implementation of the Technology
business and leisure travelers Acceptance Model (TAM).
(2018)
China

A study of renewable energy

Kanokwan, D.
technology adoption dynamics Renewable energy technology is
being used to generate electricity
in the hotel sector
on-site for the hotel sector.
Australia
(2021)

Dhirasasna, N.
A system dynamics model for
Sahin, O. Renewable energy technology can
renewable energy technology
reduce emissions by the hotel
adoption of the hotel sector
sector.
(2021)
Australia

Infrastructure for Wi-Fi.

Digital conference facilities are
available.
Aurecon Infrared sensors and robots.
Technology in the hospitality
industry – exploring the very Room keys that are smart.
latest trends (2021)
International There will be plenty of
entertainment available
Cloud computing services.
Social media feedback.

Smart energy management.

Predictive maintenance.
Ten ways smart technology is Attala, J.
Experiences for smart guests.
reshaping the hotel industry
Protection for large amounts of data.
(2019) International
Smart reserved parking.
Remote check-in/check-out.
Technology improving productivity
Hotel companies use cloud computing (Ayoobkhan & Kaldeen, 2020) to increase overall efficiency,
information technology to monitor and improve energy efficiency (Masa, 2020), room services, and seamless billing
(Bhatnagar, 2020) to guarantee a positive customer experience, and general information technology used to boost
the employees' attitude, self-efficacy, and subjective norms (Ko, et. al, 2016).

Table 2. Related Studies reviewed in connection with technology improving productivity

Technology Utilization in the Hotel

Title of the Study (Year of Industry: Challenges and Prospects
Authors / Locale
Publication)
Productivity

Ayoobkhan, M.
An Empirical Study on Cloud
Computing Technology on Kaldeen, M. Cloud computing for the hotel sector
Hotel Industry in Sri Lanka can increase overall efficiency
(2020)
Sri Lanka

Masa, T.
The impact of information Information technology as a solution
technology on energy saving for monitoring and improving energy
in hotel companies (2020) efficiency.
Serbia

Bhatnagar, P. Technology can make room services

The Importance Of Updating
and billing seamless and guarantees
Your Hotel Technology
positive customer service and
(2020)
International experience.

Ko, C.
A Study of Employees’
Perception of Information Pei, L.
IT usage can boost employees’
Technology Adoption in Tsai, Y. attitude, self-efficacy and subjective
Hotels norms.
(2016)
International

Technology for competitive advantage

Various advantages of using technology in the hospitality industry can influence customer perceived value,
satisfaction, and purchase intention (Pham, et. al, 2020). Customer perception can also be increased with advertising,
reviews, public relations, social media, and personal experiences of the technology-based facilities (Subkait, et. al,
2020). It also perceives health risks and cleanliness and is effective in maintaining that hotels are virus-free in post-
pandemic scenarios (Shin & Kang, 2021). It can also guarantee integrated, seamless experiences for customers
(Aurecon, 2021), and can boost the level of customer engagement behaviors on hotel websites (Vo, et. al, 2019).
Table 3. Related studies reviewed in connection with the usage of technology for competitive advantage

Title of the Study Technology Utilization in the Hotel

(Year of Authors / Locale Industry: Challenges and Prospects
Publication) Competitive Advantage

Pham, L.

Williamson, S.
Technology readiness
Lane, P.
and purchase
intention: role of Limbu, Y. Optimism and innovativeness undoubtedly
perceived value and have an impact on purchaser perceive
online satisfaction in Nguyen, P. value, satisfaction, and buy intention.
the context of luxury
Coomer, T.
hotels (2020)

Vietnam

The Impact of
Subkait, A.
Consumer
perceptions to Anita, T.
Technology-based Consumer impression is by advertising,
facilities at Bobobox Triana, I. reviews, public relations, social media, and
Capsule Hotel, personal experiences.
Jakarta
Indonesia
(2020)

Reducing perceived
health risk to attract
hotel customers in the The health risk perceived influences the
Shin, H. connection between booking intentions and
COVID-19 pandemic
era: Focused on Kang, J. actual interaction.
technology
innovation for social
distancing and International In post-pandemic scenarios, the perceived
cleanliness health risk mechanism is successful.

(2021)

Technology in the Aurecon

hospitality industry – Full-service integration of clients with
exploring the very smooth, personalized service
latest trends (2021) International

The Impact of E- Vo, N. It improves customer satisfaction and

service Quality on the customer commitment on Vietnam’s up-to-
Customer Chovancova, M. date hotels websites.
Satisfaction and Tri, H.
Consumer
Engagement
Behaviors Toward
Luxury Hotels
Vietnam
(2019)

Technology’s Effect
on Hotels and
Restaurants: Building Koutroumanis, D.
a Strategic Technologies can help develop a lasting
competitive edge for hotels and restaurant.
Competitive
Advantage United States of America

(2011)

Challenges in the implementation of technology in the hotel

Implementation of technology in hotels also face some challenges, such as peer-to-peer networks being a
significant competitive threat to hotel chains (Akbar & Tracogna, 2018), and the definition of a smart hotel being
unclear, with terms "interconnectivity", "interoperability", "social media monitoring", "robots" and "artificial
intelligence" not mentioned (Leung, 2019). The challenges are also divided into three stages, with pre-
implementation presenting resistance by hotel owners, the actual implementation presenting resistance from hotel
staff, and post-implementation presenting resistance from the hotel customers. The usage of information technology
may also differ by area, with hotels located in established tourist destinations using technology to set themselves
apart from the competition, while local hotels may try to attract Western tourists by not using any technology at all
(Maria, et. al, 2013). Managers themselves see the difficulty in implementing mobile technology (Han, et. al, 2021),
and A widely held view of technology holds that it presents something unaltered to everyone, no matter their
educational level. (Avitiyaman, et. al, 2020).

Table 4. Related studies reviewed challenges in the implementation of technology in the hotel

Technology Utilization in the

Title of the Study (Year of Hotel Industry: Challenges and
Authors / Locale Prospects
Publication)
Challenges

The sharing economy and the Akbar, Y.

future of the hotel industry: Hotel corporations face a strategic
Tracogna, A.
Transaction cost theory and threat from peer-to-peer sharing
platform economics (2018) systems
International

Smart hospitality: Taiwan Leung, R. Interconnectivity, interoperability,

hotel stakeholder perspective social media monitoring robots, and
artificial intelligence were not cited
(2019) Taiwan as definition of smart hotel.

Identifying and overcoming Okumus, F. prior to implementation

barriers to deployment of (investment, profit; throughout
information technology Bilgihan, A. implementation (integration, delays,
projects in hotels Ozturk, A. vendor complications, and workers
resistance)
(2017) Zhao, X.
China

Maria, E.
The use of ICT in established
and emerging tourist Irene, G.
CT may be advantageous for both
destinations: a comparative Maja, S. hotels in established and developing
analysis in hotels tourist destinations.
.
(2013)
International

Han, S.

Lee, J. The study was identifying the issues

Mobile technology adoption involved in adopting and
among hotels: Managerial Edvardsson, B. implementing mobile technologies
issues and opportunities by a thematic analysis of focus
Verma, R.
(2021) group interviews of luxury hotel
managers and executives.

International

How Tourists Perceive the Avitiyaman, P.

Usefulness of Technology
Adoption in Hotels: Zhang, X.
Overall, technology usage tends to
Interaction Effect of Past Tsang, W. be widely accessible, regardless of
Experience and Education education level.
Level

(2020) China

New trends in terms of the technologies used in the hotel industry

Research suggests that implementing technology can create new employment, support local economies,
construction of facilities, improvement of social services as a result of increased tourism, and access to electricity
(Peric & Radic, 2016). The study by Wu & Cheng (2018) Smart hotel management will also help to develop and
implement market-oriented service strategies to raise the dimensions of quality of experiential relationships and
build intentions for experience sharing.In Iraq, the need to adopt the use of technology at hotels will reflect
positively to improve customer service, and increase the number of computers used and improve the business as a
whole (Salih, 2017).

Table 5. Related studies reviewed new trends in terms of the technologies used in the hotel industry

Technology Utilization in the

Title of the Study (Year of Hotel Industry: Challenges and
Authors / Locale Prospects
Publication)
Trends

FDI-led tourism growth Peric, J. Increasing visitor expenditures to

hypothesis: empirical evidence boost the local economy
from Croatian tourism (2016) Radic, M.
Croatia

Relationships between technology Wu, H.

attachment, experiential Information derived from the study
relationship quality, experiential Cheng, C. will assist hotel managers in
risk and experiential sharing developing a market-oriented
intentions in a smart hotel strategy for smart hotels.
(2018) United States of America

The impact of information

technology on achieving hotel
management innovation (A Salih, D. Use of technology will promote
survey of the views of a sample of customer satisfaction, and as the
administrative staff at the Royal hotel business grows, so is the
Tulip Al Rasheed Hotel / money flowing into the local
Iraq economy.
Baghdad)

(2017)

CONCLUSION

In this chapter, the conclusions derived from this study's findings on technology utilization in the hotel industry
are elaborated and explained. The conclusions were based on the study's statement of the problems, and the study
results. The implications of these findings and the recommendations based on the study's conclusions and purpose
will also be explained.

What are the different technologies used in the hotel industry?

Hotels use various technologies to seamlessly automate every sector in the hotel industry – from the
serving of food, check-in and check-outs, and room service. With the data, the researchers conclude that modern-day
hospitality services such as hotels utilize various technologies to satisfy their clients.

How does technology improve productivity?

Studies presented have positively correlated the use of technology to increased efficiency, whether that
would be on the employees, the energy usage, or the customers. Hotels use technology to boost productivity among
their personnel and to guarantee customer satisfaction.

How do hotels use technology for competitive advantage?

Hotels use technology to give themselves an edge on exposure, as seen by their utilization of social media
platforms to promote their business. They also use the technology to provide their customers a seamless, easy
experience when using their rooms. Koutroumanis (2011) concludes that implementation of technologies can help in
building a sustainable competitive advantage for hotels and restaurants. The researchers have concluded that it does
give hotels a competitive edge over other competitors.

What are the challenges in the implementation of technology in the hotel?

Challenges to the implementation of technology in the hotel industry can vary from the technology itself
being a challenge, to the misinformed hotel administration, difficulties perceived by the hotel administration, and the
implementation itself. The researchers have concluded that hotels face various challenges, and must take steps in
order to overcome these.
What are the new trends in terms of the technologies used in the hotel industry?

Technology usage in hotels can promote local economic growth. Furthermore, studies presented have urged the
usage of more smart features to improve the already seamless experience being offered by the hotels in various
countries.

RECOMMENDATION

Everyday life is significantly influenced by technological advancements. It has also become a part of the day-to-
day operations of the hospitality industry. The use of technology has become more vital than ever as hotels reopen
and strive for full occupancy (while adhering to municipal, state, and national reopening rules in light of COVID-
19), and it will play a critical part in the recovery process.

Customers in the hospitality business desire that type of seamless, technology-driven, contactless experience,
especially as contactless hospitality becomes more and more widespread. The use of automated kiosks, which may
be accessed by scanning a QR code, and tablets to order room service eliminates the need to stand in line or to leave
your room to place an order. The majority of hotel customers prefer a simple and uncomplicated experience. This is
made possible by technological advancements in the hotel business.

Technology is vital for enabling communication, especially in the hospitality and tourist industries, since many
enterprises are huge and distributed across a vast geographic area. Numerous hotels have sophisticated
communication technologies that allow various departments and members of staff to stay connected and respond to
guest requests more effectively. These systems should be employed by hotel owners and examined by a future
iteration of this study.

It is recommended to the hotels to take the information contained within this research study and use it to their
advantage – for the sake of the customers and to have an advantage over the competition. Furthermore, information
gaps such as the definition of the “smart hotel” must be addressed in a future iteration of this study.

ACKNOWLEDGEMENTS

The researchers would like to acknowledge the following for their contribution to the success of this study:

First and foremost, God Almighty, for the gift of knowledge, guidance, and hope to complete this study
despite the occurring crisis and all the encountered setbacks while conducting this study;

Thank you LPU Manila Management and to the President of Lyceum of The Philippines Atty. Roberto P.
Laurel and to the Vice President Ms. Jennifer D. Tucpi. Thank you so much to our college of international
hospitality dean Dr. Aragon and to Dr. Camalig head and research coordinator

Our parents, for being our pillar of strength that motivated us to believe in ourselves and pursue the
fulfillment of our study;

Finally, we would like to thank Ms. Eunice Parco for believing in our capabilities, encouraging us, and
pushing us to become better researchers. We would not have completed this study without her unending support,
advice, and constructive criticism that helped us throughout the process.

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