There is reason for optimism in the hospitality & tourism industry. The 2010 Soccer World cup is expected to bring a flood of tourists to South Africa. The intense media interest will stimulate tourism. This will in turn translate into a cash injection for the hospitality industry. This bodes well for IT investment in this cash-constrained industry. For the IT supplier, it is useful to understand the factors that influence the IT usage patterns in the hospitality industry.

Thursday, September 24, 2009

Adoption of IS Use in the Hospitality Industry - Influence of Structural Factors on Strategy and Ultimately Adoption

Source: Siguaw JA, Enz CA & Namasivayam K. (2000). Adoption of Information Technology in US Hotels: Strategically Driven Objectives. Journal of Travel Research, 39:192-201.

This interesting article investigates the link between structural aspects of a lodging establishment and the strategies that are supported by the technologies they adopt.

Four structural variables are defined, namely:
- Lodging segment (i.e. budget, economy, midprice, upscale, luxury)
- Lodging type (all-suite, extended stay, convention hotel, casino hotel, standard hotel, bed-and-breakfast)
- Chain affiliation (chain affiliated or independent)
- Size, expressed in terms of number of rooms

Three strategic priorities are considered, namely:
- Revenue enhancing strategies, e.g. yield management
- Employee productivity enhancing strategies, e.g. automation of manual functions
- Guest services enhancing strategies, e.g. customer relationship management

The survey results are reflective of the 4679 hotels who responded to the survey and had adopted at least one technology.

There were differences amongst the lodging establishments w.r.t. strategic priority, namely:
- Chain affiliated hotels adopt significantly more technologies than independent hotels, and specifically technologies that enhance employee productivity and also revenue.
- The more expensive the lodging segment the more technologies it adopts, and specifically revenue enhancing technologies.
- Convention and casino hotels implement more technologies than any other lodging type.
- Size influenced the extent of technological adoption and specifically the number of employee productivity and revenue enhancing technologies adopted.

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