Executive summary
Our business report analyses the various outcomes and implications of the application of information technology and information systems in the management processes of a business organization. Since today the role of technology is vital to gain a competitive advantage in the prevailing market conditions, it is vital to analyze how a business firm can correctly apply these tactics and have an upper hand over its competitors.
The use of this technology has been analyzed in the hotel and hospitality industry. The various decisions relating to the merger of ten different hotels into a single chain called “StayTogtheer” have been covered in the report. It highlights the various strategic decisions that have been adopted by the senior management which have a significant impact on the performance of the hotel chain. The various strategies adopted by the hospitality chain to attract new customers have been emphasized in our report study.
The impact of the application of information systems and information technology in the hotel business has been evaluated since it affects different facets of the business operations including brand loyalty, customer choice, continued patronage, etc. Various innovative strategies have been included which can be adopted by the hotel chain to expand its customer base. Several innovative tactics have also been incorporated as measures to increase the customer satisfaction level and increase the productivity of the chain in the current market scenario.
Introduction
The hotel and hospitality business forms a crucial part of the business scenario since it has an important impact on both the national economy and the people who use hotels as accommodation sites. As per Anderson, Wipfel & Golan, the proper and effective planning of hotel chains is vital to ensure the proper functioning and favorable productivity of the business. This report mainly focuses on the scenario where several hotel businesses merge to form a single chain.
This strategy and change in the management process is crucial for the business since it can determine its existence in the industry (Anderson, Wipfel & Golan, 2013). Another vital aspect that has been focused on is the proper and effective use of information systems and information technology in different work processes of a business organization since it can help a business gain a competitive position in the market. Since technology plays a vital role in any business environment, it is vital to understand the technology that needs to be adopted into a business model (Chuang, Liao & Lin, 2013). The current scenario covered in the particular report helps to understand how the management needs to adapt to the changing working situations to continue the business productively.
Objective of the report
The objective of this report is to create a constructive criticism of the existing technological framework in the form of the information system and information technology in the domain of hotel management and hospitality in the situation given. To objectify the notion of the utility of information systems and information technology in an organization, the focus has been laid on the creation of the desired management framework for the same (Cobanoglu, et al., 2013).
Scenario
According to Dhanesh, in the business scenario given, the case depicts that the management of ten hotel chains has decided to merge their businesses to become more profitable in a bid to create low-priced hotel accommodations all over the country. The new chain resulting from the merger of the ten businesses would be called StayTogtheer and would allow the management to gain a foresight about the current market dynamics in the hotel management and hospitality business (Dhanesh, 2014).
This merger would allow each of the hotel businesses to enhance their productivity by channeling their resources such as the information technology and systems that are used for customer acquisition and retention and also ensure that the collective image of this new entity is in line with the demands of the present day.
In terms of the functional business requirements, the management of the respective participant hotel chains has decided to combat the market pressure for low-priced, affordable accommodations by bringing in a slew of changes in different directions. The management has decided to implement a loyalty scheme to enhance the reward program for regular customers who use the accommodation services provided by the chain of hotels that includes over a thousand hotels all over the country (Elliott, et al., 2014).
The segregation of the services in terms of the quality of accommodation and the services that are included would be sharp as it would include from low priced services such as those for the backpackers to the luxury suites for the corporate professionals. The inclusion of the various value-added services in the hotel room services has also been furnished. It has been decided that the establishments that have kitchens and standard restaurants within the premises shall include the same in the hotel room cost that is charged to the customer, whereas those with exclusive restaurants onsite would charge extra for the same services (Holtshouse, 2013).
This would help the consumers to select the services better as per their budget and preferences as they bring more accountability and transparency as to what is included in the services.
The management, to enhance its popularity among the business and frequent travelers has decided to include a special scheme for those who would be using a certain airline for traveling. The credit points and the rebates are expected to bring in more customers in the long run. Finally, it was also decided that the management after the merger would be donating to a charity program of its choice by allowing the corporate customers to choose to contribute 1 percent of the bill amount to the CSR program.
The evaluation of the establishment and merging of the hotels into a single entity would also incorporate the changes in the accommodation of the hotel right from making a reservation. The ability and strategies of the hotel to make the guests make them feel acknowledged, welcome and appreciated are good and effective in providing high-quality service to the tourists and other visitors. The ease with which the hotel establishment is located or reached by telephone or over the internet is effective as it is very far from the access of all the people from different places across the world (Khanam, Siddiqui & Talib, 2016).
The reservation process is made easier through the amalgamation into a single application or site which makes it easy and more convenient for tourists and guests across the world. The ability to determine the special requirements and needs is very good by taking reviews from the guests and the tourists. The value-added services regarding the transportation of the tourists and the guests such as the rebates while traveling through selected airlines is an effort and strategy worth appreciation. This effort enhances the business association of the hotel with the selected airlines which enhances sales as it will attract more guests and visitors (Kowal & Roztocki, 2013).
The communication skills and the behavior of the staff would be enhanced due to the merging of the hotels into StayTogther Hotel as the exchange of information and knowledge would take place among the employees of all 10 hotels. The service regarding maintenance, cleanliness, and level of service that would be offered to the guests would be very high as the experience and the quality of the service of all the hotels would be integrated (Lin, 2014).
Management processes and correlation of emerging technologies
In the various business domains, the contribution of information technology in the form of various function-specific information systems has been tremendous. Studies have shown that the various widely adopted technological frameworks alongside the preexisting management framework in an organization.
Information systems can be defined as the tangible application of various information technologies for enabling and enhancing processes in the business domain. As organizations and businesses target to be more lucrative in their business undertakings and dealings, use of the information technology in the form of various information systems adds to the profitability of the organization profoundly (Luftman, et al., 2013).
According to (Oztaysi, 2014), the strategic use of IT in the hotel management sector has led to a change in the fundamental structure of the industry and society at large. By increasing the operational efficiency as well as the scale of operations and reaching out to the prospective customer base, information systems and the application of information technology have led to the wider, more concretized, and sustainable development of organizations.
As per (Luftman, et al., 2013), in the purchases and transactions that are conducted on the online platform, the customers undergo a five-stage decision-making process which includes the need recognition, information seeking and searching, evaluation of alternatives available, purchase decision, and post-purchase behavior. For the effectiveness of the information system that would be in place after the merger of the hotel chains, ample gravity would be provided for the information searching and evaluation of the alternatives from the consumer’s point of view.
From the marketing point of view, the information system implementation dedicated to the StayTogather chain, along with the premeditated mobile application would serve as a veritably visible contributor to the second and third stages of the five-stage decision-making process (Schwalbe, 2015).
An information system is concerned with the quality of information that will be stored in StayTogtheer. The manner of storage of the data and information of the hotel related to the guests, management, and organization of the data, the retrieval and transmission of the data by the appropriate methods and means will be death by the information system of the management for the hotel. An efficient information system of the hotel would lead to obtaining of clear and updated information regarding the guests which will help the hotel to provide better services in a timely fashion (Steenbruggen, Nijkamp & van der Vlist, 2014).
It will help to create a brand image of StayTogtheer. Guests are attracted to a hotel that has a better brand image which eventually creates an impression regarding the hotel about the types and quality of the services that it would be providing. However, StayTogtheer needs to implement this considering the context and nature of the hotel that they must draw out. Having an effective information system and technology would enhance the communications which would act as a proverbial being and coordinator between the department of technology and the hospitality management of StayTogtheer. The integration of the technological aspects such as information technology and information systems would ensure the internal infrastructure of StayTogtheer is functional efficiently and the being competitive in regards to innovation as well. The first impression in any hotel is created by the way to hotel lets its guests check in (Vasilev & Akhmetshin, 2014).
Incorporating this technology into the management of the hotel creates a lasting effect on the guests and they would find the good quality of service right from the moment they enter and check in the hotel. This would be reflected in the manner of execution of the operation of business and service to the guests. The business of StayTogtheer would be boosted once the guests are satisfied and impressed with the service of the hotel (Yoo, 2013).
Enabling an effective information system as well as information technology into the management system of the hotel would lead to effective and systematic storage, maintenance, and dissemination of the records of the guests that can be identified and considered to be an essential part of the hotel. The management of StayTogther can both manage and improve the utilization of the resources and capital and manage the performance of the business along with monitoring the effectiveness of the service it is providing to its guests through the incorporation of the information system and information technology in its overall business operations (Kowal & Roztocki, 2013).
Conclusion:
Through this report, the evaluation of the effectiveness and feasibility of the merging of ten hotels into a single hotel entity named StayTogtheer is analyzed. The management decisions are critically reviewed for better analysis of hospitality management. The implications of the management decision on the sales and business of the hotel have been reflected upon. The correlation of the emerging technology in the management of the hotel is been illustrated. All the findings that have been derived and appeared in the assignment are very effective and good in approach.
Recommendations:
It is recommended to the management of StayTohtheer to increase the campaign of advertisements regarding the customer loyalty scheme through various modes and means to increase sales. The tourists and the guests have to be given a better impression regarding enhanced services by increasing the corporate social initiatives. However, the provision of high-quality hospitality service to the customers along with taking good care of them by maintaining luxury as well as comfort at the same time would attract more customers to StayTogtheer.
References
Anderson, E. W., Wipfel, R., & Golan, J. (2013). U.S. Patent No. 8,543,916. Washington, DC: U.S. Patent and Trademark Office.
Chuang, S. H., Liao, C., & Lin, S. (2013). Determinants of knowledge management with information technology support impact on firm performance. Information Technology and Management, 14(3), 217-230.
Cobanoglu, C., Ayoun, B., Connolly, D., & Nusair, K. (2013). The effect of information technology steering committees on perceived IT management sophistication in hotels. International Journal of Hospitality & Tourism Administration, 14(1), 1-22.
Dhanesh, G. S. (2014). CSR as organization–employee relationship management strategy: A case study of socially responsible information technology companies in India. Management Communication Quarterly, 28(1), 130-149.
Elliott, R. A., Putman, K. D., Franklin, M., Annemans, L., Verhaeghe, N., Eden, M., … & Avery, A. J. (2014). Cost-effectiveness of a pharmacist-led information technology intervention for reducing rates of clinically important errors in medicines management in general practices (PINCER). Pharmacoeconomics, 32(6), 573-590.
Holtshouse, D. K. (2013). Information technology for knowledge management. U. M. Borghoff, & R. Pareschi (Eds.). Springer Science & Business Media.
Khanam, S., Siddiqui, J., & Talib, F. (2016). Role of information technology in total quality management: a literature review.
Kowal, J., & Roztocki, N. (2013). Information and communication technology management for global competitiveness and economic growth in emerging economies. The Electronic Journal of Information Systems in Developing Countries, 57.
Lin, H. C. (2014). An investigation of the effects of cultural differences on physicians’ perceptions of information technology acceptance as they relate to knowledge management systems. Computers in Human Behavior, 38, 368-380.
Luftman, J., Zadeh, H. S., Derksen, B., Santana, M., Rigoni, E. H., & Huang, Z. D. (2013). Key information technology and management issues 2012–2013: an international study. Journal of Information Technology, 28(4), 354-366.
Okumus, F. (2013). Facilitating knowledge management through information technology in hospitality organizations. Journal of Hospitality and Tourism Technology, 4(1), 64-80.
Oztaysi, B. (2014). A decision model for information technology selection using AHP integrated TOPSIS-Grey: The case of content management systems. Knowledge-Based Systems, 70, 44-54.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Steenbruggen, J., Nijkamp, P., & van der Vlist, M. (2014). Urban traffic incident management in a digital society: An actor–network approach in information technology use in urban Europe. Technological Forecasting and Social Change, 89, 245-261.
Vasiliev, V. L., & Akhmetshin, E. M. (2014). The role of information and information technology in the management control function. Biosciences Biotechnology Research Asia, 11(3), 1469-1474.
Yoo, Y. (2013). The tables have turned: How can the information systems field contribute to technology and innovation management research? Journal of the Association for Information Systems, 14(5), 227.
