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6S3H : Hotel & Hospitality Management

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Course Code: 6S3H
University: University Of South Wales

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Country: United Kingdom


Critical Discussion on the impact, role and future trends of disruptive technology on the Australian Hotel and Hospitality Industry.
Through research identify and discusses the impact, role and future trends of disruptive technology on the Australian Hotel and Hospitality industry.


The global hotel and hospitality industry is growing with a rapid speed by using new and innovative technologies and trends present in the market. However, some of the organizations present in this industry can easily adopt innovation and technology but it is very difficult for other to adopt such technology while trying to live. The purpose of this report is to evaluate the impact, role and future trends of disruptive innovation and technology in the field of hospitality industry of Australia. Disruptive technology refers to the process of development and enhancement of technology in such a way that more benefits are received to the organization out of available resources (Bilgihan, & Nejad, 2015). The report discussed the impact, role and future trend of two disruptive innovations in the business, these technological trends are Robot facility and Near Field Communication. Further, more details about these technologies are discussed below:
Australian Hotel and Hospitality Industry
The hotel and hospitality industry is regarded as one of the biggest contributor in the economic growth of Australia. From the market analysis, it can be clearly stated that the Australian hospitality industry includes more than 4500 hotels and motels that includes more than 225,000 rooms in it. In the current environment, this sector of the country is providing significant income due to strong development in this industry. In future, the researchers are expecting to come near the target of $167 billion by the end of 2025 (Parsa, & Narapareddy, 2015). The tourism staying rate of the country has been increased due to the tourist coming from China. Apart from that, the Australian hotel and hospitality industry is focusing well on use of innovation and technologies in business so as to offer best services to the customers. The hotel present in Australia also prefers the use of digitalized technology so as to entertain their guests through their innovative services. These activities of the company also increase the detainment level of customers. Thus, it should be noted that use of disruptive technology has changed the face of Australian hotel and hospitality industry (Newsroom, 2015).
Impact of Disruptive Innovation on Australian Hotel and Hospitality Industry
The Australian hotel and hospitality industry is very competitive. Increase in craft beer, good food and faithful customer experience has increased the productivity in this industry. It is good to see that the use of digital products is embracing the Australian industry in the external environment. As discussed above that companies present in Australia do not hesitate in using such disruptions in their business to proceed in the external market (Fleischmann, Daniel, & Welters, 2017). Further, it should be noted that robot technology ad NFC has both positive and negative impact on the Australian hotel and hospitality industry. These impacts are discussed below:
It should to be noticed that the robots faciility isn’t much predominant in the nation Australia however it being broadly utilized all around the world. The humanoid robots right off the bat decrease the workload and weight that is gotten to the employees while holding a fantastic service and pleasant experience as well. This innovation shares the workload of employees and at last lessens their pressure as well. Likewise now the administration of the hotels require not do the general repeated work by themselves. However, the robot disruptive technology has both positive and negative impact on the hospitality industry (Ivanov, S. H., Webster, & Berezina, 2017).
Positive in ways that the utilization of robot facility decreases the workload of the representatives in starting to exercises in the regular work. The representatives would now be able to concentrate around executing advancement in their business to not to care of doing the standard day work. This element likewise gives competitive advantage to association present in the hotel and hospitality industry. Further, it should be noted that utilization of robot reduces the mishaps occurring in the companies and it increment the satisfaction level of clients too. As robots cannot perform failures like human does, in this manner, it brings about giving better level of fulfillment to the client hold them also (Pérez-Pineda, Alcaraz, & Colón, 2017).
However, the robots do not understand the sentiments and emotions of the people as well due to which they perform actions that are not expected to be performed. Resulting in which, satisfaction level of clients decreases. Further, this type of technology is way too expensive for the companies to adopt. Not all the hotels, spas or resorts can make use of this type of technology in the business resulting in which small scale organizations do not get the chance to growth in the market. The companies that have already succeeded in the market are excelling and other companies are unable to compete due to expensive technology present in the market (Tolkach, Chon, & Xiao, 2016).
Further, coming up to the NFC disruptive technology, it should be noted that it refers to the technology that transform the ways in which the hotels welcome the guests and helps the customers in attaining better services in the market as well. It refers to the application that helps the organizations to transmit data at close proximity (Willie, et. al., 2017).
The above mentioned diagram clearly depicts the ways in which this technology works for hotels. Just like the robot technology only, this type of technology is also new in the industry but still it has captured a major portion in the Australian industry. This technology provides positive impact on the customers as their satisfaction level is highly increased. While travelling, every person wants as many facilities they get, in one single head. So, this type of technology aids them with such services. However, talking about the negative impact it should be noted that this technology has reduced the income source of many other people present in the industry. Many other businesses like taxi cabs services, guides etc. are connected with the industry and use of this app instantly reduce the intermediation of other people that reduces the employment level in the industry. Also, the age old people travelling alone also face difficulty in utilizing such technology with them while travelling due to which they face unpleasant experience. However, one benefit of this aspect is that it reduces the problem of handling the keys (Fridman, 2018).
Role of Disruptive Innovation on Australian Hotel and Hospitality Industry

The use of disruptive innovation in the Australian Hotel and Hospitality Industry is increasing the satisfaction level of the clients in the society. The use of disruptive innovation in the business plays a role of increasing the scope of working for the companies present in this industry. Thus, it should be noted that the disruptive innovation plays a role in enhancing the capabilities of organization and providing them better opportunities to work and grow as well(Marques, 2017).
In hotels, the administrations that were given to the employees of the organization have now changed that stage by utilizing development and receiving innovation. Expanding innovation additionally expanded the expectation level of the clients display in the market that demanded the organization to develop and assist clients with perceiving comparable experience. The utilization of disruption causes the organizations to give simplicity to the clients while traveling alone, the same number of associations have built up their sites that encourages the general population to find themselves in various nations(Guttentag, 2015).
Connie is the first ever robot that is utilized by the hotel Hilton to deal with their administrations in the market. This robot is fueled by IBM Watson with a mean to help the general population coming at the lodgings. The utilization of robot along with NFC facility gives numerous more favorable position to the association. This NFC application robot utilizes the local dialect of individuals to communicate with them and make it simple for individuals originating from various parts of world to connect with the association and request their questions. Individuals originating from Germany in Africa faces trouble in speaking with the general population and employing a guide interact with local using the NFC application and in hotel the robots helps them to do the same. Lastly, it should be noted that both the disruptions helps the business in attaining information about the target market and providing them to the companies to drive better experience for the customers. Big Data analysis is done using the information provided by these resources(Slåtten, & Mehmetoglu, 2015).

Future Trends of Disruptive Innovation on Australian Hotel and Hospitality Industry
The future trends related to the two disruptions discussed above are mentioned below:

With the use of human robot internation facility, the clients need not to sit tight and wait for the representatives to attend them, at that point the customer can without much of a stretch call the robots and achieve administrations from them. The robots will be composed such that they can legitimately address every one of the issues of the clients and give them benefits in like manner. The future robots would be planned such that they comprehend the human feelings and work as needs be(Riemer, Gal, Hamann, Gilchriest, & Teixeira, 2015).
Infrared scanners are currently being utilized by the robots to limit the disturbance identified with the housekeeping. Rather than utilizing the don’t bother labels on entryways or awakening the visitors by cleaning staff. The organizations are presently beginning to utilize the body warm indicator include inbuilt in robots that assistance them to realize that the room is right now involved and the staff should come later for additionally benefits(Viglia, Pelloia, & Buhalis, 2018).
Virtual Reality: The hotels, resort and spas present in this industry should move forward make use of this technology so as to provide a 3600view of their service at the mobile application of the user. This will enhance the interest of the user in the organization and they will instantly communicate with the company using NFC technology.

Thus, in the limelight of above mentioned events, the fact should be noted that the hotel and hospitality industry keeps on changing its nature day by day. In regards, to which it is important for the companies to be competitive on a regular basis. Disruptive technology is very important to business to use if they want to succeed in this industry. Such innovations helps the organizations to increase the satisfaction level of the customers and earn optimum value as well. The above mentioned report successfully displayed the impact of use of robot and NFC technology in the hotel and hospitality along with its role and future trends as well.
Bilgihan, A., & Nejad, M. (2015). Innovation in hospitality and tourism industries. Journal of hospitality and Tourism Technology, 6(3).
Fleischmann, K., Daniel, R. & Welters, R., (2017). Developing a regional economy through creative industries: innovation capacity in a regional Australian city. Creative Industries Journal, 10(2), pp.119-138.
Fridman, A. (2018). 3 Ways Technology Is Disrupting the Hospitality Industry. Retrieved from https://www.inc.com/adam-fridman/3-ways-technology-is-disrupting-the-hospitality-industry.html 
Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18(12), 1192-1217.
Ivanov, S. H., Webster, C., & Berezina, K. (2017). Adoption of robots and service automation by tourism and hospitality companies.
Marques, M. (2017). 5 tech trends revolutionising the hospitality industry. Retrieved from https://medium.com/hijiffy/5-tech-trends-revolutionising-the-hospitality-industry-76b734c961b7
Newsroom. (2015). Why Australia’s hospitality industry is booming. Retrieved from https://www.hotelmanagement.net/transactions/why-australia-s-hospitality-industry-booming
Parsa, H. G., & Narapareddy, V. V. (Eds.). (2015). Sustainability, Social Responsibility, and Innovations in the Hospitality Industry. CRC Press.
Pérez-Pineda, F., Alcaraz, J. M., & Colón, C. (2017). Creating sustainable value in the hospitality industry: a (critical) multi-stakeholder study in the Dominican Republic. Journal of Sustainable Tourism, 25(11), 1633-1649.
Riemer, K., Gal, U., Hamann, J., Gilchriest, B., & Teixeira, M. (2015). Digital Disruptive Intermediaries: Finding new digital opportunities by disrupting existing business models. University of Sydney, Business School and Capgemini.
Slåtten, T., & Mehmetoglu, M. (2015). The effects of transformational leadership and perceived creativity on innovation behavior in the hospitality industry. Journal of Human Resources in Hospitality & Tourism, 14(2), 195-219.
Tolkach, D., Chon, K. K., & Xiao, H. (2016). Asia Pacific tourism trends: is the future ours to see?. Asia Pacific Journal of Tourism Research, 21(10), 1071-1084.
Viglia, G., Pelloia, M., & Buhalis, D. (2018). Information Technology in Hospitality Education. In Innovation in Hospitality Education (pp. 87-100). Springer, Cham.
Willie, P. A., Connor, D., Sole, J., Forgacs, G., Grieve, R., & Mueller, J. (2017). Human capital challenges in the hotel industry of Canada: finding innovative solutions. Worldwide Hospitality and Tourism Themes, 9(4), 402-410.

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