Blog Posting 1- "Self-Service Technologies: The Affect on Hospitality Branding"

Dickinson, C. (26 October 2006). Self-service technologies: the affect on hospitality branding. Hospitality Upgrade, Fall 2006. Retrieved February 21, 2007 from http://www.hospitalityupgrade.com/_files/File_Articles/HUFall06Dickinson_SelfServiceTechnologies_Fall06.pdf.

Summary:

Clay Dickinson’s article “Self-Service Technologies: The Affect on Hospitality Branding”, as the title suggests, examines the current influx of self-service technologies in hotels and the affects this has on hotel brands. CEOs have indicated that one of their major focuses in the future will be increasing spending on brand innovation; the institution of self-service technologies is often seen as a means to achieve this.

As many of the major hotel companies launch various self-service technologies in their properties, it becomes evident that many of the areas of competitive advantage are diminished because of the commonality of these technologies. Success and brand strengthening will only be achieved if companies invest in goods or services that unique to their brand and add sustainable value. These strategic decisions must also be cost-effective, while providing unmatched customer experiences delivered on a consistent basis.

When self-service technologies and other forms of technology are introduced by a brand, traditional services marketing is changed. There is potentially less interaction, less personalization; the cornerstones of the hospitality industry must be changed to accommodate these shifts.

This article also commented on the manner in which self-service technologies are implemented. The author seemed to find fault in the logic of brand leadership; few companies actually based their decisions on customer research and return on investment analysis. This has many implications for the firm, and its potential success with using such technologies. Much of the focus is on the perceived benefits for the firm rather than the customer benefits received by using self-service technologies; there is often a discrepancy between these two lists of benefits. More attention must be focused on the negative affects of sub-par deployment of these technologies on guest loyalty and satisfaction.

Self-service technologies are projected to increase in number and in scope in the future. This technology is likely to change many aspects of the lodging industry. In order to be successful, however, hotel brands must identify ways to create technology that is difficult to replicate, meets the needs of a diverse customers, and is cost-effective for the company.

Reflection:

I think this article had a great deal of pertinent information from a perspective I have not personally considered. From classes, industry information, etc, I had an understanding of self-service technologies and their popularity in the future. I did not think about the challenges this creates for a hotel brand; they must conform to the demands of consumers and the industry while maintaining a competitive advantage and innovation. They also must ensure guests truly want self-service technologies and they are serving the interests of guests, not only the interests of the brand/investors. I personally had never looked at this topic from this angle.

If capital is present, it is seemingly easy to install self-service technologies in hotels, but the question must be asked, is this what we need and will this better serve our customers? This article made me more aware of the changes in the traditional service that technological forces bring. Any manager must embrace technology and find sustainable ways to improve, not detract, the guest’s experience.

The point the author made about guest satisfaction and brand loyalty after using self-service technologies was also of interest to me. When new forms of technology are released to improve guest satisfaction and experience, the attitude of completion may be adopted by some hoteliers. The process is not complete at this point. The astute and informed manager or brand must see the institution of technology through to the satisfaction, or dissatisfaction, of the end user. The process cannot be based on perception, it must be based on actual. With my experience, much of which is outside the realm of hospitality technology, I think that hoteliers fail to adopt this attitude. A good idea is conjured- a service or good that has the power to transform the guest experience or increase profits- and it is implemented, but then achieves less than the expected results. The guest is often not the main focus of these plans; it is the hotelier that decides what he or she wants, and that is what the guest wants.

I think this article makes the point quite strongly that a fine line must be walked when introducing new technology; a marriage of technology, innovation, and guest satisfaction must be achieved. Hotels strive to create a competitive advantage and improve guest experience, and this is often accomplished through new technology such as self-service technologies. The challenge becomes understanding guest needs and setting the brand apart from other brands. Much of this technology is quite comparable from brand to brand; hoteliers must take a deeper look at the technology, and the overall situation, and devise a strategic program focused on guest satisfaction and competitive advantage.

This is a test posting for my blog.