Challenges of Innovation Activities in Hotels to Increase Business

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There exists various innovation activities that have been undertaken in the hotel industry and others are yet to be implemented. All are aimed at enhancing the hotel business in the competitive business market. The innovation activities are faced with numerous challenges and this piece of work will discuss an activity that could be used by the hotel industry to address the challenge (Hassanien and Baum, 2002). Being in the service sector, the hotel industry ought to be extremely aggressive to survive in the competitive market.

One important innovation that would give hotel business a competitive advantage is the utilization of technology, Information Communication Technology (ICT), to be specific. This is an innovation that is associated with a lot of positive attributes but at the same time, it is faced with various challenges. All in all, it is possible to overcome the challenges through utilization of different strategies (Berry, 1995).

Information communication technology is an incredible resource in the hotel and hospitality industry. In the recent past, there has been some reluctance in adoption of technology in the service sector and hotel industry in particular.

This therefore shows that there has been some inefficiency in the industry brought about by communication breakdown. In any form of business, there is need to reach potential clients and serve them appropriately. Information is a crucial element that facilitates success in business operations.

Through the various telecommunication technologies applied in ICT, it is possible to utilize information in an effective manner for the benefit of the organization at large (Buhalis, 1996).

Some of the benefits associated with utilization of information communication technology in the hotel industry is efficiency in serving the clients for instance through e-distribution. Through enhanced ICT, the hotels will be in a position to know the needs of the clients and thus satisfy them. The clients on the other hand will be in a position to source information relating to various issues such as booking for hotel rooms.

Despite the advantages associated with implementation of information communication technology in the hotel industry, there exist some challenges. They include resistance to change where some staff could not be ready to adopt the technological changes, high cost involved in installation and maintenance of the systems and lack of appropriate expertise to facilitate the technologies.

There are also threats that come along with technology application for instance insecurity and limited level of privacy. This could interfere with the operations of an organization if not well handled. For instance, top secret organizational information could be interfered with through hacking over the net an issue that could render an organization less competitive (Ham, Kim and Jeong, 2004).

This therefore dictates that there is also a need to ensure that security is maintained at the highest level possible to avoid any chances of compromising the integrity of the information contained in the networks. Staff in the hotel industry should be trained and encouraged to embrace ICT mainly because of the benefits associated with it especially in regard to enhancing efficiency, effectiveness, and economy.

In carrying out the activities involved in designing and implementing information communication technology in hotels operations, there is need to hinder to some factors to ensure success is achieved and that the challenges encountered are dealt with in an appropriate manner. This will avoid inconveniences and costs that go hand in hand with the challenges of development and implementation of Information Communication- related technologies (Atuahene-Gima, 1996).

Reference List

Atuahene-Gima, K. (1996). Differential Potency of Factors Effecting Innovation Performance in Manufacturing and Service Firms in Australia, Journal of Production Innovation Management, 13(1), 35-52.

Berry, L. (1995). On Great Service: A Framework For Action. New York: Free Press.

Buhalis, C. A. (1996). Information Technology as a Strategic Tool for Tourism. Revue de Tourism 2: 34-36.

Ham, S., Kim, W., and Jeong, S. (2004). Effect of Information Technology on Performance in Upscale Hotels. International Journal of Hospitality Management, 24, 281 -294.

Hassanien, A. and Baum, T. (2002). Hotel Repositioning Through Property Development. Tourism and Hospitality Research, 4 (2), 144 – 157.

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Challenges of Innovation Activities in Hotels to Increase Business

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