1.0 Introduction
1.1 Overview and Rationale
As the effects of globalization continue to change how business is done for companies seeking competitive advantage, the role of information technology in the service sector, the hotel industry in particular, has increasingly received increased scholarly interest. As noted Neuhofer, Buhalis and Ladkin (2015), the traditional hotel industry has put considerable prominence on the delivery of quality service to its consumers. Understanding the role of information technology in influencing service quality is, therefore, important to managers as service quality has been shown to be an important factor in customer satisfaction (Mithas, Krishnan & Fornell, 2016; Mok, Sparks & Kadampully, 2013; Rosenbaum & Wong, 2015). Consequently, the outcomes of the proposed study are likely to make important contributions to managers and practitioners seeking to understand the way technology can be leveraged to improve services for competitive advantage. The study is also intended to contribute to the growing body of literature on hotel management with regards to the dynamic role of information technology, an area where studies precisely focused on the hotel industry (especially those that synthesize secondary literature and data) are scarce.
1.2 Research Aim and Objectives
Given the dearth of information on the effect of information technology on service quality in the hotel industry, the proposed study aims to explore the various roles that information technology can play in improving the quality of hotel service to improve customer satisfaction and loyalty. To realise this aim, the proposed study will be guided by the following objectives
- To ascertain, through an analysis of secondary literature and data, the ways in which information technology currently influences service delivery in the hotel industry.
- To explore recent trends in information technology related to the hotel industry and how these are likely to impact service delivery.
- To assess the implications of these trends and influences for policy and practice.
- To identify gaps in available information and make recommendations for future investigation on the role of information technology in the hotel industry.
1.3 Research Question
The following research question has been designed to enable the realization of the stated objectives, based on a preliminary review of literature.
Q: What role does information technology play in the management of service quality, with particular regards to the hotel industry?
2.0 Literature Review
Recent research shows that information technology has had immense impacts on the abilities of organizations in the hospitality sector to offer services as well as on the way consumers select such services (Gretzel et al., 2015; Law, Buhalis & Cobanoglu, 2014; Casalo et al., 2015; Lee, Verma & Roth, 2015; Kandampully, Zhang, & Bilgihan, 2015). By employing the appropriate information technology solutions, hospitality service providers are able to go beyond traditional practices, many of which, at least according to Verma and Chandra (2016), have focused on distribution at any price. Consequently, hotels are able to create value propositions and service opportunities for customers that take advantage of new opportunities for interesting customers and improving customer satisfaction.
One area in which information technology has shaped the hotel industry is through distribution. For example, in a review aimed at exploring the barriers and drivers for organizations in the hotel industry seeking an IT-enabled competitive advantage, Verma and Chandra (2016) found that developments in electronic distribution are the most recurrent theme in how hotels can use information technology. One way that this occurs is by information technology changing how consumers perform bookings. This idea is supported by Chawla (2013), whose findings show that numerous hotels currently encourage their guests to register and indicate their preferences so as to receive personalised service experience, including room management systems, personalised customer registration, and online booking of hotel facilities using front office management systems. The understanding here is that direct web distribution influences the relationship between travel agents, hotels, and customers.
As more hotels increasingly favour direct bookings (Law, Buhalis & Cobanoglu, 2014; Kucukusta, et al., 2015; Sharma, 2015), usually wooing customers by offering best rates and loyalty club points, the role of travel agents is likely to change. This is not to say that the travel agents cease to be an important source of business, but rather that they need to adopt to changes in the hotel-customer relationship. However, the changing relationship between businesses and travel agents due to information technology has not been given sufficient coverage by scholars, and offers an area for further exploration.
Another important area of consideration is how information technology has affected the pricing of services in the hotel industry. In this respect, many studies show that price is increasingly becoming transparent, and that information technology allows consumers to compare prices, cancel and even rebook (Melián-González, & Bulchand-Gidumal, 2016; Tanford, Baloglu & Erdem, 2012; Ozturk et al., 2016). Tanford, Baloglu and Erdem, (2012), for instance, in their study using an online panel of research subjects, show that transparent pricing due to information technology lowers consumer uncertainty and make the decision process simpler. However, the authors fail to acknowledge the impact of such pricing transparency on profitability and, ultimately, sustainability. As noted by Sharma (2016), instead of generating higher total sales discounting, which is an outcome of price wars due to transparent pricing, simply functions to displace customers from one distribution channel to a different channel. It may be important, therefore, to consider how firms can use information technology to offset the revenue lost due to discounting as an outcome of transparent pricing.
Information technology has also influenced the way consumers in the hospitality industry make decisions, thereby influencing the quality of services they seek and purchase. As demonstrated by Ozturk et al. (2016), seeking information is one of the primary stages in the decision making process, and is thus a strong determinant of consumer behavioural intentions (Jeon & Jeong, 2016). As such, hotel managers must make sure that their websites meet the information needs of consumers if they are to expect increased transactions. Specific website elements discussed in literature include reliable and accurate information (Casalo et al., 2015; Ladhari & Michaud, 2015), as well easy navigation (Wang et al., 2015; Kucukusta, et al., 2015). The understanding here is that, to account for variances between consumer desires and website offerings, hotels may need upgrade their website design, as well as their ability to deliver the facilities promised by their websites to enhance loyalty. Further research is, however, needed to explore the various elements and best practices of effective hotel website designs to expose improvements that need to be made in this respect.
Another important element of service quality is the customer relationship management. The philosophy here is that intimate customer familiarity has the capacity to lower expenditures associated with marketing and improve sales linked to customer relationships and improved customer satisfaction (Murphy et al., 2016; Pappas, 2015). However, for this to be realized, the whole hotel chain must cooperate in gathering, managing, and disseminating customer information (Wang et al., 2015), which can be a significantly expensive and complicated process.
As the use of technology has grown in the hotel industry, so has the associated risks. Various scholars recognise the importance of information technology security in the delivery of quality hospitality service. Evidence shows that the most common threat to information technology use include virus attacks (Sharma, 2015), device theft (Murphy et al., 2016), insider abuse of internet access (Popescu & Popescu, 2016), and spoofing (Wang et al., 2016). Information technology security, therefore, forms a crucial, yet largely ignored, element of quality service in the hotel industry. The proposed study should explore the various risk factors connected to the use of information technology in the hotel industry as well as how such risks can be mitigated.
3.0 Methodology
Given time, resource, and scope limitations, the present study uses secondary data, which can be understood as data gathered before the present study for purposes that are different for their use in the current research (Bryman & Bell, 2015). The secondary data and literature to be used for the proposed study will be accessed through electronic searches of reputable management websites and journals. The main advantage to using secondary data is that it is relatively inexpensive and can be obtained more easily.
3.1 Study Design
In terms of design, the mixed method design is preferred for the proposed study. As noted by Bryman and Bell (2015) a mixed method design is one in which the methodology for carrying out the study comprises the collection, analysis and integration of quantitative and qualitative data and research in a single study. For the proposed study, the approach that is both qualitative and quantitative (in combination) is preferred as it is likely to offer a more enhanced conception of the influence of information technology compared to either of the approaches used in isolation. Furthermore, the variation in data collection of the studies reviewed can also lead to greater validity (Bryman & Bell, 2015). The mixed method approach will also ensure that the research question is answered from a number of perspectives, and that there are no gaps in the information and data gathered. As such, studies using quantitative and qualitative approaches will be searched analysed and their findings integrated to inform conclusions and recommendations. The design for combining the two methods is the two-phase Exploratory Design, where the results of the qualitative method help in developing and explaining the findings of studies that use the quantitative approach.
3.2 Data Presentation & Analysis
To enhance comprehension, the data gathered in the study will be presented in tables, graphs, percentages, and charts. As indicated by Bryman and Bell (2015), statistical analysis of data in secondary research ought to be approached in the same way as analysis of primary data. As such, the data collected in the proposed study will be organised and cleaned, and frequencies will be performed to evaluate the data quality before the data can be fed into statistical tools like SPSS for analysis.
3.3 Reliability, Validity and Ethical Concerns
The generalizability and applicability of the proposed study depend significantly on the validity, reliability, and ethical soundness of the data used. Here, reliability implies whether the data was collected and arranged in an accurate and consistent manner (Bryman & Bell, 2015). Validity implies the degree to which the dataset used for the study cover all the variables outlined by the research question. When using secondary data, the proposed study must also consider measurement errors, as well as possible source bias, questionnaire design, response rate, and methods used by the original studies in data analysis. In terms of ethical concerns, the researcher recognises the need to ensure that data used has been collected with informed consent. The researcher also recognises the need to obtain appropriate permissions before using secondary data in line with the Data Protection Act.
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