Tourism and Hospitality Industries Sample
Introduction
The COVID-19 outbreak not just resulted in a major effect on population health, but it also adversely damaged the tourism sector, which is among the cornerstones of the world economy. Local as well as global mobility dramatically decreased in early 2020 mostly as result of the introduction of travel bans by several nations to stop the disease’ transmission. The travel, lodging, transportation, catering services, as well as other sectors are all included in the tourist as well as hospitality sector. The study will focus on accommodation sector throughout the tourism and hospitality industry.
For specific analysis, Premier Inn will be selected in accommodation industry. The hotel chain was formed in 1987 by the parent firm Whitbread. The hospitality company is based in UK and have vast hotel chains including 72000 rooms as well as approx. 800 hotels. The change after Covid-19 as new normal emerged in the accommodation industry with new advancements and innovations. The study will evaluate how innovation and smartness can support and empower organisational recovery towards 2030. In this segment, the report will evaluate how Covid-19 had impacted the industry, what opportunity innovation will bring to the organisation and assess the future of the organisation considering the new trend in the global marketplace.
Analysis of the market
Premier Inn operates in hotel market and serves in 8 different countries including UK. In regards to revenue, the hotels sector has a competitive landscape of £16.4 billion in 2022 (Statista 2022). The hotel industry contributed $59.3 bn, or about 3%, to the UK’s overall economic production in 2019 (Statista 2022). The sector comprises hotels that host visitors from abroad and citizens of the UK. The hotel market in the UK affected significantly after covid-19 as revenues of the firm has dropped; demand of consumers has altered towards contactless services of room booking, allocations of keys and other services through digital transformation.
The market segmentation for Premier Inn is moderate to higher income group as the firm operates in five star categories. The hotel chain offers on-site restaurant and accommodations for their potential consumers. The market targets all type of consumers by offering different categories of rooms like business halls and rooms, kid-friendly rooms, family rooms, pet-friendly rooms and so forth. The UK hospitality sector has always lagged behind in terms of innovation, despite all the changes brought on by COVID-19, may be now opportunity for businesses to lead the way.
Analysis of key players in the market
Major players in the UK hotel sector include IHG, Whitbread Group, Travelodge. IHG or Intercontinental Hotel Group is also a UK-based hotel and resorts and record revenue of US$2.907bn as of 2021. While Travelodge offers limited service hotel throughout the UK.
All the key players serve in accommodation and on-site restaurant to the consumers. The hotel sector is a branch of the hospitality sector which focuses on offering lodging services to clients. There are many different hotel kinds; however they may often be divided into groups based on size, purpose, service, as well as price. Normal service, mid-range facility, as well as full service is the typical divisions of service standards. 1 being the least ranking as well as 5 would be the highest; the system of stars could be more recognisable to some customers. The mentioned key players serve between three to five star rankings and also operate at global level being the key competitor of Premier Inn in terms of innovation, technological adoption, and smartness.
All the players in the market are consumer-oriented and focusing on meeting consumer demand through digitalisation and integrating smart systems to ensure recover from losses after Covid-19.
Impact of Covid-19 on the industry (economic, socio-cultural, environmental)
Covid-19 had impacted the tourism and hospitality industry in different manner including economic, social, and environmental which is being explained as below;
Economic impact– Of all the industries affected by the outbreak, the travel and hospitality industry suffered the greatest economic losses. Substantial drops in productivity occurred during times of public health standards. The economic production from the hospitality sector in 2020 amounted for 42% that was less than in 2019 (Ramuni 2021). The production of the hotel industry fell 21% from 2019 to 2021. The UK economy’s hotel sector’s contribution decreased from 3percent in 2019 to 2percent in 2020 as well as 2021 (Ramuni 2021). Restriction in mobility affected the economic growth of the industry as there was downfall in spending.
Figure 1: Monthly business turnover for accommodation sector and food sector
(Source: Ramuni 2021)
Socio-cultural impact– Further, the social cultural impact of Covid-19 on the industry can be linked with the changing demands of the consumer and more consciousness of towards the hygiene and health. The limitations varied from mandatory closings as well as opening-hour caps to elements that impact consumer capacities as well as demand, including limitations on the quantity of individuals who may gather indoors while table-service regulations. While limits and enforced shutdown reduced client demand as well as business income, hotel firms still had fixed costs like some property as well as personnel expenditures. In the industry, 21.5millions of people have lost their jobs in the industry and increased insecurity of employment (Gursoy and Chi 2020).
Environmental impact– Issues about the environment are also closely tied to COVID-19’s uncertainties. In regards to environmental impact, Covid-19 brings opportunity for the industry by increasing the demand and consciousness towards sustainability and surrounding. Apart from this, among the issues the tourist as well as hospitality industries are dealing with is a labour and talent deficit (Ntounis, Parker, Skinner, Steadman and Warnaby 2022). The introduction of new technologies as well as tendencies which have to be fulfilled and addressed has mainly made this more difficult.
Recovery towards 2030
It is identified that Covid-19 had impacted the industry and the chosen organisation drastically and also enhanced the demand of contactless services, personalised services and more emphasis on health and hygiene and sustainability. In regards to recovery towards 2030, innovation and smartness in the hotel industry will performs major role to revamp the business and provide extensive services to the potential consumers (Foerster-Metz, Marquardt, Golowko, Kompalla, and Hell 2018). Premier Inn have different technological integration in their operations like smart keys, artificial intelligence, however to accelerate smartness and innovation, the firm should focus on market trend for the future. In the recovery towards 2030, Premier Inn can focus on following strategies;
Robots must be utilized by the hotel business in room operational processes to provide quick and contactless services. Clients are looking for quick as well as enjoyable services. Even if the cost of the service may increase, timely service is still attainable. The use of augmented learning technologies throughout the hotel industry’s room service division lowers the likelihood of human mistake, boosts service efficiency, shortens response times, as well as ultimately raises customer happiness.
Figure 2: Demand of robotics in hotels by 2030
(Source: Alliedmarketresearch.com 2021)
As seen in the above graph, from 2020 to 2030, the demand of front desk robots, delivery robots, cleaning robots are increasing gradually. This indicates that the hotel can focus on the employing robots in different operations in Premier Inn that will help the organisation in reducing the time, error and maintain hygiene that has been increasing in the demand after Covid-19.
Apart from this, sustainability is also emerging in the future and in the recovery strategy towards 2030, sustainability and green activities should be embraced by Premier Inn in broader manner to reduce the impact of Covid-19 that is reducing the consumer attachment with the firm. In order to adhere to their ethical objectives underneath the CSR Legislation, all corporate organisations are experiencing stress from both the administration and the people who are worried about their surroundings (Li et. al. 2022). Energies and water efficiency are also relevant considerations. When constructing their different accommodations, hotels and resorts measure the force strength rather than concentrating on the preservation of non-renewable resources. By utilising energy-efficient equipment as well as light bulbs, companies may also offer their valued customers an environmentally beneficial lodging option. By giving their garbage to local pantries, eateries may minimise their leftovers on a constant schedule. By using these strategies to draw more clients to themselves, the hotel sector may change to increase earnings. This will help Premier Inn by creating the sense of loyalty.
How innovation and smartness can support recovery for the organisation
The hospitality and tourism industries were significantly impacted by the COVID-19 epidemic as well as border restrictions. Innovations have been required throughout the outbreak to deal with problems caused by border restrictions, vaccination papers, including stronger health as well as safety regulations (Moliner-Velázquez, Fuentes-Blasco and Gil-Saura 2019). Such innovations may have given organisations a fighting chance to survive as well as remake themselves, but they are insufficient for long-term viability. Resilience, efficient and quite well productive labour market strategies, including public safety systems that engage in individual skill development will emerge as the fundamental building blocks of resilience.
For Premier Inn, innovation and smartness can support the firm towards recovery from the impact of Covid-19 in the UK hotel industry.
Personalisation– By providing personalised services, firm can support recovery for the organisation. Personalised services will help the firm in building strong relationship with their potential consumers that have been affected by Covid-19. Visitors will be more sensitive to neatness as well as demand superior client service (Beşliu 2018). They will recall their favourite pre-COVID stay experience as well as set high standards for subsequent travel encounters. During their entire accommodation, hotels should develop a personal relationship with the visitors as well as customise their accommodations to suit each person’s preferences. This is the opportunity for Premier Inn to introduce personalised services for their loyal consumers as smart strategy this will help in getting success in the near future.
Service automation– The use of biometrics to open room doors plus automated provision of services and facilities depending on the desires of the visitor, including additional linens or scheduling spa sessions, are only two examples of automated processes. Equally customer-facing as well as customer-centric tasks may be digitized with increased automation, relieving personnel to give more engaging guest satisfaction or allowing venues to operate at optimum efficiency despite a smaller manpower (Quarshie and Amenumey 2018). This kind of innovation and smartness can empower Premier Inn and support the recovery of the hotel towards 2030 by making the service seamless for the consumers so that they can have better stay experience in the hotel instead of other competitors.
Figure 3: Importance of automation in recovery of hotel for the future
(Source: ReviewPro 2021)
In the study by ReviewPro (2021) it is evident that automation is very important in the hotel’s recovery. Further, it is also identified that by putting in place defined norms and procedures as well as relying less on personal requirements, hospitality automation may help businesses make sure that internal business guidelines are adhered to everywhere (ReviewPro 2021). The firm can get benefit from enhancing the engagement through automated communication and feedback.
Digitalisation– In actuality, after the Covid-19 recovery cannot be carried out with a focus on outdated methods. Real-time reporting provides much-needed insight into a wide range of company variable information factors, including labour expense relative to ADRs, proportions of hotel vs. room service coverings, typical stay lengths, including services saturation by category. According to the operational context, the fusion method will also gradually integrate flexible scheduling methods relying on personnel availability, economic uncertainty, shift lengths, as well as cross-usage, allowing them to swap patterns on a weekly, quarterly, or monthly schedule (Bahar, Leśniewska-Napierała, Napierała and Topsakal 2019).
While utilising cutting-edge smart technology will have many advantages for the customer-facing company, the future of hotel depends just as much on looking inside. Hotels may accomplish recovery, expansion, as well as long-term profitability by adopting a comprehensive strategy for digitalization together with operational systems.
Opportunities that technology can bring to address the issues
In the daily life, technology is quite important. Additionally, it is now a part of how hotel administration is done on a regular basis. Technology is now more crucial than ever as well as will be vital in the recovery as hotels opened as well as strive for maximum occupancy. All areas of the hotel will benefit from using technologies to enhance the guest satisfaction, expedite processes, administer post-COVID-19 policies, as well as increase interactions involving employees and visitors.
Following are different technologies that bring opportunity and benefit Premier Inn to address the challenges;
Enhancing the internal capabilities of organisation– After pandemic, remote working has been challenging for hotels. But integrating cloud technology will help Premier Inn by managing the tasks of staff and operate seamlessly without presence. This technology will be advantageous for the hotel in addressing the issue of reducing labour in the near future as the firm has to do during pandemic (Sinambela, Ginting, Simanjuntak and Ridwan 2020). For 2030 recovery strategy, it is important for the firm to make the process potential in case of similar situation.
Competitive advantage through contactless technology– It is indeed critical to remember that smart hotel technologies, including as digital check-in as well as check-out, digital culinary booking, including guest communication, has been developed to meet business demands rather than the requirements of the population. By enhancing the flexibility, scalability, as well as efficiency of hotel operations, technology could assist Premier Inn in defeating the crisis by creating opportunity of gaining competitive advantage in the market, driving consumer attention and loyalty for more occupancy. For example;
However, Li, Wang, Abbas, Hassan and Mubeen (2022) stated that resistant to change can hinder the advantage and opportunity of technological innovation in the hotel from the staff behaviour. Technology implementation at the business focuses primarily on consistency as well as upgrading, whereas worker behaviour refers to how individuals react to substantial changes in the working environment.
Conceptual framework
The relationship among the technological readiness paradigm as well as the technology acceptance paradigm is connected to the conceptual framework. The goal of this approach, as its term suggests, is to demonstrate how a person’s preparedness to use smart technologies and solutions is closely correlated with their acceptability of the method being suggested.
The foundation of the technology preparation concept seems to be the idea that there seem to be specific things that help to prepare a person for embracing or changing to technology as well as communicating technologies. How a person comes to embrace as well as utilise technologies with ease is the focus of the model of technological acceptance (Chauhan 2020). Information systems theory served as the foundation for this approach which needs to be considering in the case of recovery towards 2030 of Premier Inn. The purpose of this method is to increase awareness and comfort levels so that individuals can utilise technology effectively.
The primary component here is behavioural purpose, and it is predicated on what variables have helped people alter their behaviour as well as what aspects haven’t. It has been determined that behavioural purpose is a crucial element since changing one’s perspective as well as conduct is the only way to modify behaviour, which includes acquiring new habits and implementing new behaviours. Facilitating conditions of use, behavioural intention, work status, plus user satisfaction are its key components.
Future of the organisation in new realities
In the new realities, strengthening consumer trust in important source marketplaces will be hotel’s first focus in order to reduce the effect of the COVID-19 situation. With such an optimistic outlook lies the duty for the hotel sector to adjust to changing customer requirements. Premier Inn will have competitive future in the new emerging of realities in the global marketplace since the firm has already technological advanced and have the financial capabilities of integrating new innovation technologies in the operations towards recovery that secure the position of the brand (Ramuni 2021). Apart from this, the brand name, recognition and existing consumer trust can be strengthened in the new realities by the hotel.
The majority of crucial hotel operations are going digital, from accessibility to streaming programs to the room card on a mobile. In the post-COVID age, it is now necessary to restrict physical intimacy amongst employees as well as visitors. The future of Premier Inn should focus on digitalisation the processes and facilities towards strategic direction in global marketplace. Further, in the future IoT can be seen in Premier Inn. With the use of IoT, visitors can effortlessly control and customise every aspect of their accommodations (ReviewPro 2021). Since IoT functions as a smart lodging technologies which can utilise data to discover as well as fix issues prior to them becoming bigger issues, they have particularly helpful in management.
Conclusion
In summary, it can be inferred that Covid-19 had affected the tourism and hospitality industry in drastic manner. The travel, lodging, transportation, catering services, as well as other sectors are all included in the tourist as well as hospitality sector.
In regards to recovery towards 2030, innovation and smartness in the hotel industry will performs major role to revamp the business and provide extensive services to the potential consumers. When constructing their different accommodations, hotels and resorts measure the force strength rather than concentrating on the preservation of non-renewable resources. This will help Premier Inn by creating the sense of loyalty.
Innovations may have given organisations a fighting chance to survive as well as remake themselves, but they are insufficient for long-term viability. Resilience, efficient and quite well productive labour market strategies, including public safety systems that engage in individual skill development will emerge as the fundamental building blocks of resilience. Hotels need to think about how they will unavoidably put aside capital expenditures for this development, both as a protective move to keep up with customer assumption as well as a way to boost brand visibility via popular new rapid acceptance. The hotel sector has always lagged behind other sectors when it relates to innovation, despite all the changes brought about by COVID-19, maybe it’s now time for hotels to lead the way.
References
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Beşliu, D.C., (2018). Institutional management of change resistance of the employees against organizational transformations. Scientific research and education in the air force, 20, pp.351-358.
Chauhan, V.S., (2020). Changing Employee Behavior: A Practical Guide for Managers. South Asian Journal of Management, 27(1), pp.206-208.
Foerster-Metz, U.S., Marquardt, K., Golowko, N., Kompalla, A. and Hell, C., (2018). Digital Transformation and its Implications on Organizational Behavior. Journal of EU Research in Business, 2018.
Gursoy, D. and Chi, C.G., (2020). Effects of COVID-19 pandemic on hospitality industry: review of the current situations and a research agenda. Journal of Hospitality Marketing & Management, 29(5), pp.527-529.
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