Tuesday, January 18, 2011

Investing in Technology for Competitive Advantage - The Challenge Facing the Hospitality Industry

Summary
This article explains the current technological situation in the hospitality industry as a whole, and more specifically the hotel industry. The hospitality industry has made improvements with their technology systems in the last 20 to 30 years, however there is still a lot of progress to be made. A major focus of this article was the lack of integration amongst all of the different information systems used in a hotel, for example. It seems to be a trend that hotels buy from the supplier with the best product for the best price instead of buying all of their systems from one supplier making it easier to integrate. One reason companies are less inclined to buy all their systems from one supplier is because no one company has found a total solution to the integration problem. Every vendor has their own specialty and are not making a big effort to solve this problem of integrating all systems required to run a hotel. Another reason there is slow progress in improving hotel technology is the lack of standardization in the industry. It is not required for hotels to update their technology therefore making improvements is a slow process. Companies realize to become more profitable they need to make changes, but because they are not required to do so some are slower to make the investment. With better technology comes better customer service. People need technology, especially when traveling. Hotel guests need things like wireless internet, fast and efficient check-in and check-out, and they also want everything running smoothly throughout their stay. All of these things require integration of systems and an overall improvement in technology in this industry.
Reflection
Before reading this article I had never put much thought into the kinds of technology it takes to run a hotel. I recognized the obvious ones such as reservation systems and wireless internet. It never occurred to me that they use property management systems and the technology involved with the financial and accounting side of business. This article brought to my attention the necessity to link all of these systems to make the business of the hotel run smoothly. I strongly agree that this is an issue that needs attention in order to improve how the hotel industry runs. I also think hotels should improve the technology available to guests. I have been too many hotels that do not offer wireless internet in guest rooms and some that do offer it charge extra. I know when I am looking to book a hotel that is something I look for. Another trend mentioned in this article was networking and using the Internet to reach potential guests. This is an excellent tool that should be used by all hotels. Almost everyone I know, I included, uses sites like Expedia and Travelocity to book trips. If a hotel is not included on a site like that I would never know about it. This is such a fast and easy way for hotels to get recognized by potential guests. Overall I thought this article made many valid arguments for the need to improve technology in the hospitality industry. After reading it I know that when I am traveling I will start to recognize which hotels are making improvements and which are standing still when it comes to technology.
Cline, Roger S. "Investing in Technology for Competitive Advantage - The Challenge Facing the Hospitality Industry." Hotel Online. Fall 1996.http://www.hotel-online.com/Trends/Andersen/Investing_in_Technology.html