INTODUCTION
CONCEPT
The hospitality industry has a rich history that spans thousands of years and varies across cultures, with ancient Greece exemplifying this tradition through the concept of xenia, which emphasizes the generosity and courtesy extended to travelers and guests Central to xenia are two fundamental principles that highlight the importance of guest-friendship and mutual respect in hospitality practices.
The respect from hosts to guests Hosts must be hospitable and provide guests with a bath, food, drink, gifts, and a safe escort to their next destination.
The respect from guests to hosts Guests must be courteous and not be a threat or burden to their guests.
Modern hospitality has evolved significantly over the millennia, yet its core principle remains the same: offering exceptional services to guests Today, hospitality establishments are not merely transient stops; they have transformed into sought-after destinations in their own right.
Hospitality encompasses a wide range of definitions, primarily revolving around the act of making individuals feel welcome through comfort and entertainment This industry includes various sectors such as hotels, motels, resorts, restaurants, and theme parks To determine if a business belongs to the hospitality industry, consider whether it focuses on providing a welcoming experience.
- Does this establishment serve food or drink?
- Does customer experience a top priority?
- Does the business make money through services more than goods?
If you have answered yes to one or more of these, there is a strong chance that the business is involved in hospitality to some degree
To gain a deeper understanding of hospitality, it's essential to explore The Big Four sectors: food and beverage, travel and tourism, lodging, and recreation The food and beverage sector encompasses restaurants, bars, and lounges, while travel and tourism involve airlines and travel agencies Lodging includes a range of accommodations from hotels to AirBnBs, and recreation typically refers to activities like golfing, fishing, and tennis.
Various industries share a common goal of delivering a pleasurable experience for their patrons They create a friendly and inviting atmosphere, often featuring convenient amenities like showers and complimentary valet parking Ultimately, their revenue hinges on the enjoyment and satisfaction of their guests.
The hospitality industry in Vietnam encompasses various sectors, including hotels, resorts, restaurants, motels, casinos, spas, and travel agencies, often referred to as a "smokeless industry." Its primary focus is on welcoming guests, delivering essential services, and ensuring a high level of satisfaction throughout their experience.
With the orientation of making tourism a spearhead economic sector, Hospitality Industry plays a key role in promoting the national image, attracting more and more international visitors to Vietnam.
The hospitality industry's primary aim is to ensure customers have a memorable experience, whether through savoring delicious meals, unwinding in a lavish spa, or enjoying a restful night away from home Prioritizing the care of each guest is essential to achieving this goal.
Three things to know about Hospitality Industry:
- The potential of Vietnam's Hospitality Industry
Vietnam is a burgeoning tourism destination, boasting a wealth of attractions such as Ninh Binh, Ha Long, Quang Binh, Hue, Da Nang, Nha Trang, Da Lat, and Phu Quoc The country is distinguished by its numerous UNESCO-recognized heritage sites and biosphere reserves, drawing a significant number of international visitors eager to explore its rich cultural and natural offerings.
During the autumn, winter, and spring seasons, the Northwest and Central Highlands of Vietnam emerge as a captivating destination for tourists, showcasing stunning natural beauty such as Ha Giang's buckwheat flower season, the Northwest's ripe rice season, and Da Lat's pink grass hills in early winter Additionally, the region's vibrant culinary culture adds to its allure, making it a must-visit for travelers seeking unique experiences.
Vietnam is in the top 10 countries with the most attractive street food in the world, many Vietnamese dishes are loved by international diners such as: Pho, bread, bun cha…
Vietnam's tourism infrastructure is rapidly expanding, with over 25,000 accommodation options available nationwide The increasing presence of international 5-star and 6-star hotels highlights the country's growing appeal These developments are pivotal in enhancing the growth of Vietnam's hotel, restaurant, and tourism sectors.
- Job opportunities in Hospitality Industry
The Hospitality Industry is experiencing significant growth, necessitating a substantial increase in both the quantity and quality of human resources Current estimates indicate that our country requires 25,000 new workers annually, creating abundant job opportunities for candidates in the Hotel, Restaurant, and Tourism sectors Graduates can explore diverse career paths across various positions in hotels, restaurants, travel agencies, casinos, and airlines.
- New skills required by Hospitality Industry personnel
To succeed and go far in the Hospitality Industry, you need to understand professional knowledge from basic to advance in the Hospitality - Restaurant -
Tourism industry and especially have practical experience In addition to communication skills - foreign language skills - problem solving skills , human resources by industry need to equip themselves with new skills:
Mastering new technologies is a crucial advantage in the era of the 4.0 revolution, as it enables businesses to enhance customer experiences through mobile check-ins, exclusive discount applications, digital assistance systems, and social media integration.
Collecting data to improve and enhance customer experience: hotels – restaurants, need to bring guests constant surprise and satisfy customers with interesting and unexpected experiences.
Technology is advancing at an unprecedented rate, with a growing number of individuals eager to adopt it In 2019, there were 5.112 billion mobile users, 4.388 billion internet users, and 3.484 billion active social media users, all of which have seen growth of 2 to 9% since 2018 This upward trend is anticipated to continue in the coming years.
The digital age has a wide scope It’s likely that you have heard of buzz words like
‘artificial intelligence’ (AI), ‘automation’, ‘big data’, ‘InsureTech’, ‘Internet of Things’ (IoT), and ‘cloud’ These are just some of the streams that come under the ‘digital age’ umbrella.
Collins dictionary - Simply defines ‘the digital age’ (or information age) as “a time when large amounts of information are widely available to many people, largely through computer technology”.
The Digital Revolution, as defined by Techopedia, signifies the transition from analog electronic and mechanical devices to contemporary digital technology, a transformation that began in the 1980s and continues to evolve This revolution heralds the onset of the Information Era, fundamentally reshaping how risk managers operate in today's technology-driven landscape.
The digital era in action
Advancements in 5G technology are enhancing reliability, increasing download speeds, and expanding capacity, while digital disruptors like Uber, Airbnb, Peloton, and Netflix are transforming traditional industries These two digital trends are significantly impacting our daily lives.
SITUATIONS ANALYSIS AND TRENDING
MARKET ANALYSIS
2.1.1 How to Analyze the Hospitality Market in Digital Era ôDigital Vortexằ and the Adaptation of the Enterprises of the Hospitality Industry to Digital Transformation The results of the above conducted analysis, to a large extent, confirm the theory of "digital vortex", which has been put forth by the specialists of the company Cisco (2015), as the inevitable movement of various industries towards a
The concept of a "digital center" focuses on the digitization of products, value chains, and business models to enhance value delivery and preservation for customers Researchers have developed a methodology to assess the potential for digital breakthroughs across various economic sectors, based on interviews with approximately 1,000 top executives from 13 countries, including Australia, Brazil, and the USA The findings reveal that industries experience varying degrees of digital transformation, with those closer to the digital center undergoing faster and more extensive changes The high-tech sector is at the core of this "digital vortex," followed by mass media and entertainment, while retail ranks third The tourism and hospitality industry is positioned seventh in terms of digital transformation potential Notably, the evolution within the "digital vortex" is driven not only by technological advancements but also by the emergence of new business models that generate additional value for customers.
A comprehensive study conducted by the Metro group and the Lausanne School of Hotel Management examined the adoption of digital solutions in the hospitality industry, involving 3,405 independent restaurant employees from Japan, Germany, France, Italy, and Spain The survey encompassed a diverse range of food outlets, including full-service restaurants, cafes, fast food establishments, and take-out services Findings revealed that the primary barriers to investing in digital technologies for restaurant operators across these countries were the lack of strategic priorities and the high costs associated with implementation This indicates that many business leaders have yet to embrace the potential of digital transformation and the innovative opportunities it presents.
The Global Digital Transformation in Hospitality Management Market report by the Market Research Store offers valuable insights into current trends, including market value, growth rate, size, production, consumption, and gross margin It also details pricing and other key influencing factors, along with comprehensive information on distributors, suppliers, and retailers within the market Additionally, the report provides an in-depth analysis of the competitive landscape among industry players Notably, the pandemic has prompted market participants to strategically adjust their business plans.
Key players in the Digital Transformation in Hospitality Management market include industry leaders such as IBM Corporation, Sabre Corporation, Genpact, Cybage Software, Control4, Oracle Corporation, and Cisco Systems Inc.
HOSPITALITY.digital, DXC Technology, Mitel Networks Corporation, Accenture
Research analysts forecast that the Digital Transformation in Hospitality Management market, valued at XX million dollars in 2019, is expected to grow to XX million dollars by 2026, with a projected CAGR of XX% during the period from 2020 to 2026 This growth is driven by increasing investments in research and development and advancements in technology within the sector However, the global pandemic has created several market challenges, including economic crises in various regions and significant job losses.
The questions that are answered in the report:
What are the challenges for the Digital Transformation in Hospitality
Management market created by the outbreak of the global pandemic?
What are the drivers that are shaping the Digital Transformation in Hospitality Management market?
What are the top opportunities that are currently ruling the market?
What are the segments of the Digital Transformation in Hospitality
Management market that are given in the report?
What are the developing regions in the Digital Transformation in Hospitality Management market?
Overall industries are struggling on the global platform to revive the markets It has been observed that through the pandemic almost every market domain has been impacted.
The market segmentation for digital transformation in hospitality management highlights a significant presence across five key regions: Europe, North America, Latin America, Asia Pacific, and the Middle East and Africa, with detailed country-level analysis included in the report.
The Digital Transformation in Hospitality Management market is segmented into Product Types: Cloud, On-Premises, IoT devices
The Digital Transformation in Hospitality Management market is segmented into
By End User/Application: Hotel Bed a nd Breakfast, Motel, Hostel, Others
The major points that are covered in the report:
Overview: In this section, the global Digital Transformation in Hospitality
Management Market definition is given, with an overview of the report in order to provide a board outlook about the nature and contents of the research study
Strategies Analysis of Industry Players: This Strategic Analysis will help to gain competitive advantage over their competitors to the market players
Essential Market Trends: Depth analysis of the market’s latest and future trends is provided in this section
The research analyst has provided precise and validated estimates of the total market size, both in value and volume, for the global Digital Transformation in Hospitality Management Market This report encompasses forecasts related to production, consumption, and sales, offering a comprehensive outlook on market trends and dynamics.
The global Digital Transformation in Hospitality Management market report encompasses a comprehensive regional analysis, highlighting five key regions and their respective countries This analysis equips market players with valuable insights into untapped regional markets and potential advantages, enabling informed strategic decisions.
Segment Analysis: Accurate and reliable foretell about the market share of the essential sections of the Digital Transformation in Hospitality Management market is provided
Regional Segmentation: North America Latin America Europe Asia Pacific Middle East and Africa.
The study employs a range of general scientific methods, including analysis and synthesis to evaluate theoretical and methodological approaches related to enhancing digital technologies in marketing communications for tourism and hospitality enterprises It utilizes a structural logical method to systematically organize factors influencing company development and applies factor analysis to assess how these factors affect customer satisfaction with tourism and hotel services that leverage digital technologies The research is grounded in a robust information base, comprising legislative and legal documents, statistical data from public authorities, and scholarly publications from both Russian and international experts focused on the long-term application of digital technologies in the sector.
Konovalova and Lebedev 2017; Nikiforov, Ryazanova, Shishanova, Lyzhin and Lebedeva 2018; Vilisov, Khristoforova, and Startsev 2013)
This study aims to enhance digital technologies in marketing communications for tourism and hospitality enterprises by developing effective strategies and conceptual frameworks We will also address the need for a system of indicators to evaluate the quality of tourism and hotel services resulting from the integration of digital technologies Additionally, the research will identify and outline key development directions for tourism and hospitality businesses within the digital landscape.
2.1.2 Digital Development in The Hospitality Industry
In the digital age, DIY travellers now plan and manage their trips through online marketplaces, marking the decline of traditional travel agencies While many travel agents have struggled to survive digital transformation, some, like Thomas Cook, have embraced innovation by introducing virtual reality experiences in select stores This shift has intensified competition within the travel ecosystem, as brands strive to meet increasing customer expectations According to the UN World Tourism Organization, international tourist arrivals are projected to grow by 3-4 percent this year, highlighting the evolving landscape of travel.
In 2016, the global travel and tourism industry reached a remarkable $1.3 trillion, highlighting the necessity for travel businesses to invest in digital transformation for continued growth As demand for travel is projected to rise, embracing further digitalization will be essential to meet the evolving expectations of tomorrow's travelers.
Figure 2.1 Ditigal Journey for the Hotel (Source: https://hospitalitytech.com/optimizing-digital-evolution)
The tourism and hospitality industry plays a crucial role in the global economy, contributing significantly to the global gross product and rapidly emerging as one of the largest sectors With an annual investment growth rate projected at around 30%, this industry has become one of the most profitable business areas worldwide, accounting for approximately 6% of global capital The swift expansion of the tourism and hospitality sector necessitates the adoption of modern information technologies to enhance the quality of services offered These technologies are primarily utilized by tourist firms, insurance and transport companies, excursion bureaus, hotels, cafes, and restaurants, particularly when catering to individual tourists and groups Research on the challenges and developments within this industry has been explored in the works of notable scholars such as O.V Arkhipova, L.P Voronkova, V.K Krutikov, N.V Orlova, and M.A Polozhikhina.
Before the pandemic, hotels and restaurants had already begun digitally transforming their business models and operations They adopted technologies such as mobile payments, point of sale systems, online ordering, eCommerce, digital signage, and interactive kiosks to enhance growth strategies.
MARKET TRENDING
Many hotels have embraced mobile technology, recognizing that mobile websites and apps are essential for attracting potential customers These platforms enable users to easily book rooms, check availability, explore hotel services, read reviews, and view pictures—all while on the go By optimizing for mobile, hotels provide a seamless browsing experience that allows guests to make reservations conveniently from their smart devices, eliminating the need to wait for a desktop computer.
Mobile apps in the hospitality industry enhance the booking experience by providing customers with quick access and timely updates on offers and events through regular notifications Additionally, these apps enable hotels to effectively market their properties and amenities to a broader audience in innovative and engaging ways.
Figure 2.3 Mobile Technology Apps in Hotel (Source: https://www.techspot.com/news/72237-hilton-soon-you-control-hotel-room- using-smartphone.html)
Here are some of the facts that will let you how mobile technology is impacting the hospitality domain:
Approximately 85% of international tourists use a mobile device during their travel.
Around 74% of the travelers say that they would prefer using a hotel application for booking and other details
Nearly 70% of last-minute hotel bookings are made through mobile devices, highlighting the importance of hotel mobile applications in influencing traveler decisions Additionally, 88% of hotel guests express a desire for mobile apps that offer personalized experiences, underscoring the need for tailored services in the hospitality industry.
Clearly, mobile technology in hospitality industry, powered by the internet and the presence of apps, is a game-changing development for various industries regarding better consumer service and engagement.
*Features of mobile apps for hotel industry
Live and up-to-date information sharing
Hotels leverage online Content Management Systems (CMSs) to provide consumers with real-time access to information This technology allows them to efficiently manage and update content, enabling quick insertion, modification, or deletion of data within seconds.
Using a CMS allows hotels to instantly update information across all customer mobile devices, saving time that would otherwise be spent on phone communications When service details are modified, guests receive automatic email notifications, ensuring they stay informed This capability empowers hotel management to add offers and events in real-time, enhancing engagement with mobile users.
Better trend predictions based on customer behavior
Customer behavior within hotel mobile apps provides valuable insights into preferences, allowing hotels to better predict trending services for their guests By analyzing this behavioral data, hotels can enhance decision-making and optimize operational activities Understanding peak demand times enables management to ensure the right staff is available when services are most needed, ultimately improving guest satisfaction and operational efficiency.
Maintaining long-term relationships and connecting with customers
Hotels can enhance guest communication beyond traditional methods like phone calls and messages by utilizing social media platforms such as Facebook and Twitter These platforms allow hotels to gain insights into customer experiences and respond promptly to comments, feedback, and inquiries, fostering a stronger rapport and increasing customer trust Additionally, hotels strategically leverage their social media presence to offer discounts and freebies to followers during quieter periods, further engaging their audience.
In this way, they attract guests easily to use off-season times for cheaper accommodation, food, and drinks and thereby ensure better business!
Leveraging the loyalty program feature
Mobile apps in the hospitality industry enhance loyalty programs, enabling hotels to drive up-selling and encourage repeat business, as satisfied customers often become indirect brand ambassadors Many hoteliers and resort owners leverage push notifications to deliver personalized, context-based messages to guests, tailored to their behavior, purchase history, location, and profiles.
Promotions, discounts, and special events are effectively communicated to app users through push notifications, motivating them to book or make purchases Additionally, loyalty programs are designed to enhance the guest experience before, during, and after their hotel stay.
While many customers still value face-to-face interactions, the hospitality industry is embracing mobile technology to enhance guest experiences through instant services available on smart devices Mobile apps enable hotel guests to conveniently manage check-ins and check-outs, laundry services, dinner reservations, room service, spa appointments, and online payments This shift towards mobile solutions is transforming the industry by streamlining operations and providing greater value for customers By leveraging mobile apps, hotel management can improve operational efficiency and drive business growth.
2.2.2 Artificial Intelligence (AI) in The Guest Experience
Artificial intelligence is significantly transforming various industries, including the hospitality sector, which is now increasingly recognizing both the benefits and challenges of AI technologies Hotel operators are investing heavily in AI solutions to enhance guest experience management while also assessing the potential impact on roles such as front desk staff, customer service representatives, and concierges.
Figure 2.4 Artificial Intelligence (AI) (Source: https://www.digitaltechnologyreview.com/p/artificial-intelligence- wikipedia.html)
Hoteliers of all sizes must eventually adopt advanced technologies like AI-enabled speaker systems, personal assistants, IoT in-room controls, and service robots to enhance their properties and elevate guest service standards.
Research by Starfleet Research and Oracle Hospitality reveals that 89% of hoteliers believe AI plays a crucial role in significantly lowering operating costs in customer support The financial advantages of implementing AI in the hospitality industry are clear and impactful.
Integrating artificial intelligence to enhance customer experience allows hotels to boost brand awareness and foster customer loyalty, ultimately leading to significant revenue growth.
Research shows that 86% of hoteliers believe AI enhances employee satisfaction by automating routine tasks, such as answering FAQs, which allows staff to concentrate on more valuable, personalized interactions It's important to recognize that new technologies often complement rather than replace existing systems and manual processes, as they may be better suited to address different user needs in various contexts.