Inthe era of technology, applying new technologies and digital transformation tosuccessfully prevent epidemics and promote customer convenience is recognized as theinevitable way to over
Research methodology .- - << + 111199119911 911 91H ng 5 5 Research n voi Ả
In this research, the analysis method is based on data collected from interviews and financial reports of the business.
To collect primary data, a survey in the form of interviews and observations will be conducted A list of questions will be used to investigate the experiences or opinions of travelers This questionnaire will be sent to 100 people in Holiday Inn &
Suites Saigon Airport (an IHG Hotel) in Tan Binh District, Ho Chi Minh City, especially focusing on business customers who travel as individuals The number of customers in a month can be up to more than 1000, which is the ratio of people going on team building or business trips booked by the company For those going on as leisure travelers, there are only 110 people Therefore, 100 respondents are reasonable. Students are also in the 100 customer base that I sent this questionnaire to because the future trend will serve Gen Z That means Gen Z will be the target customer, and that is why there is a questionnaire about students.The purposes of my research include:
1 Do gender, age, occupation and income affect bookings via digital platforms?
2 Which digital platform is the most favorite application for travelers?
Secondary data will be collected through sources such as official annual reports, financial reports, business documents, libraries, thematic articles, magazines and academic research of the Institutes International, University, Big Tech.
The research will focus on analyzing the factors related to formulating a digital transformation strategy for IHG in Vietnam based on the data collected in the hospitality industry in general, and IHG in particular within the scope from 2023 to 2028 It will focus on a strategic plan for digital transformation in the next 5 years.
My research includes five chapters: Introduction chapter which is about the rationale of the topic, research objectives, research methodology and research scope.
Chapter 1 introduces the theoretical background on digital transformation;Chapter 2 presents digital transformation in the hospitality industry; Chapter 3 proposes digital transformation for IHG; and the Conclusion chapter includes conclusion,implications and limitations.
THEORETICAL BACKGROUND ON DIGITAL
Digital trends oo
The fourth Industrial Revolution (4IR) has been making great changes to life, economy and society in Vietnam as well as around the world Above all the innovations, technology is the one that truly reflects the explosion of 4IR 4IR, which is being driven by disruptive trends including the rise of data and connectivity, analytics, human- machine interaction, and improvements in robotics, is the next stage in the digitization of the industrial sector According to McKinsey & Company (2022), “the Fourth Industrial Revolution (4IR) expands upon the discoveries made during the Third Industrial Revolution, which occurred between the 1950s and the early 2000s and gave rise to the Internet, computers, and other types of electronics” McKinsey & Company points out the potential of these innovations is expanded by 4IR with the aid of four core disruptive technology types:
1 Connectivity, data, and computational power: cloud technology, the Internet, blockchain, and sensors
2 Analytics and intelligence: advanced analytics, machine learning, and artificial intelligence
3 Human-machine interaction: virtual reality (VR) and augmented reality (AR), robotics and automation, autonomous guided vehicles
4 Advanced engineering: additive manufacturing (such as, 3-D printing), renewable energy, nanoparticles
The Fourth Industrial Revolution (4IR) is marked by rapid advancements across various industries Artificial Intelligence (AI) and Machine Learning (ML) enhance decision-making and automate processes Automation and robotics transform industries, boosting productivity The Internet of Things (IoT) enables device connectivity, facilitating data exchange and communication These technological advancements drive innovation, efficiency, and interconnectivity.
4IR has the potential to facilitate the availability and transfer of goods and services for companies, customers, and stakeholders throughout the value chain. Preliminary data indicates that effectively using 4IR technology reduces waste in manufacturing, boosts working hours and supply chain productivity, and provides numerous other benefits for customers, workers, and stakeholders.
In regards to the difficulties posed by the pandemic, utilizing 4IR technology is also quite advantageous In reality, because of geographical distance and shifting customer needs, COVID-19 has accelerated the 4IR transition by forcing firms to adopt digitization and contactless operations In a McKinsey poll conducted six months into the epidemic, 94% of participants claimed that Industry 4.0 had kept their businesses operating, and 56% said that these technologies were essential to the crisis response.
Industries in all areas are changing as a result of 4IR With networked systems and autonomous machines, smart factories are becoming more prevalent in manufacturing Technology is being used in healthcare for effective personalized medicine, telemedicine, and efficient diagnostics Intelligent infrastructure and autonomous cars are advancing the transportation industry Precision farming methods are being adopted by agriculture with the help of sensors and data analytics.
The nature of labor is changing as a result of 4IR While opening up new opportunities in fields such as data analysis, software development, innovation, automation and AI may displace some work roles In order to adapt to the shifting employment market and stay relevant, reskilling and upskilling are essential.
Massive volumes of data are being produced by 4IR Businesses, governments, and organizations may benefit greatly from the analysis and exploitation of this data.
Making decisions based on data improves productivity, fosters creativity, and allows for more informed decisions.
The digital economy has emerged as a result of the growing digital transformation of many different industries and sectors To boost competitiveness, innovation, and productivity, it involves integrating digital technologies into corporate operations, procedures, and consumer interactions The digital economy refers to the economic system driven by digital technologies and the internet Industries such as agriculture, retail, and banking are being transformed by technology The billions of daily online interactions that occur between individuals, companies, devices, data, and processes define the digital economy Hyperconnectivity, or the increasing interconnectivity of individuals, companies, and machines as a result of the Internet, mobile technologies, and IoT, is the foundation of the digital economy (Deloitte Malta,
2022) The emergence of the digital economy is upending conventional ideas about how companies operate, collaborate, and provide customers with access to goods, services, and information.
More people are connecting to the global environment anytime, anyplace through smartphones, wearable devices, and other mobile Internet gadgets The digital economy allows millions of people worldwide to buy and sell goods and services According to
US economist and statistician Thomas Mesenbourg (2001), three components distinguish the digital economy from the regular economy:
- Infrastructure: Businesses have software, hardware and other technological resources, plus specialist human talent.
- E-business: Computer applications, online tools and digital platforms help carry out business processes.
- E-commerce: A familiar concept, e-commerce means the sale of goods and services online.
A few key aspects of digital transformation are critical to the success of firms in the digital economy Firstly, people tend to work from different workplaces, such as their homes or local coffee shops, since the pandemic has made working remotely more
The global pandemic has accelerated the transition to hybrid work models, with employees increasingly demanding seamless connectivity and collaboration from any location To succeed in this dispersed workplace landscape, businesses must establish a dynamic talent ecosystem that enables the implementation of advanced digital business processes across multiple time zones and locations This requires a scalable and adaptable approach to workforce enablement, ensuring that employees have the necessary tools and support to thrive in a remote or hybrid work environment.
Second, in the digital economy, customers want to interact with businesses in the most convenient way, whether they are business-to-business or business-to-consumer. When interacting with brands, customers also want smooth, multichannel, direct, contextual, and personalized experiences It is now crucial to provide each customer with a unique and personalized experience from the time they visit a business's website until they complete a purchase.
Third, IoT connects the physical and digital realms by collecting, evaluating, and interpreting data to predict demands and automate commercial processes As sensor prices continue to drop, the day is not far off when everything in the world can be connected to one another, including people, businesses, gadgets, and processes As the digital and physical realms converge, every asset moves into a digital realm where software reigns.
In an era of smart, networked devices, IoT solutions let businesses examine sensor data from actual physical objects This data has the power to revolutionize businesses by revealing hidden trends and insights that can lead to decisions and action.
When a business can understand its inventory of digital and physical assets at any given time, it can operate with a precision that was previously unthinkable, opening the door to the ultimate lean corporation Any digital company that wants to stand out from the competition in the next two years must have this.
Finally, a company can operate with a precision that was previously unfathomable when it can comprehend its inventory of physical and digital assets at any given time This opens the door to the ultimate lean organization This is a must-have
12 for every digital business hoping to differentiate itself in the next two years from the competition.
1.1.3 Challenges of digital era for enterprises
In the digital age, businesses must take advantage of new opportunities and overcome challenges that require them to adapt to changing conditions and maximize the use of available technology.
Basics of digital trannSÍOTTTAfIOII 5 521831183183 11 11 1111 1k rrre 14
The fifth challenge of the digital age is how fiscal and monetary policies work and what effect they have Fiscal policy refers to the government's policies regarding spending and taxes, whereas monetary policy refers to the actions done by the central bank to control the money supply and interest rates Monetary and fiscal policy can affect the macroeconomic performance and stability of the economy as well as the microeconomic incentives and consumer and corporate behavior In the digital age, fiscal and monetary policy needs to work with other countries and organizations, handle the debt and fiscal consequences of the COVID-19 pandemic, and adjust to the digital revolution of the financial system.
There are many definitions of “digital transformation’ According to Deloitte, “digital transformation is all about becoming a digital enterprise—an organization that uses technology to continuously evolve all aspects of its business models (what it offers, how it interacts with customers and how it operates).” For enterprises, this entails continuously seeking out ways to improve the user experience Better on-demand training, data migration to cloud services, artificial intelligence use, and other strategies could help achieve this.
According to IBM (2023), “digital transformation takes a customer-driven, digital- first approach to all aspects of a business, from its business models to customer experiences to processes and operations.” Even if many enterprises have implemented one-time fixes in response to a single competitive challenge or market shift, this has never been the purpose of a digital transformation There is a definition that works well in the majority of circumstances.
Conceptualizing digital transformation as an ongoing adaptation to a dynamic environment is crucial Establishing a strong technological and operational foundation is the initial step towards its objective of seamless evolution and response to market conditions, global events, and the ever-changing needs of customers This adaptation strategy ensures businesses can remain competitive and relevant in the face of constant technological advancements and evolving customer expectations.
According to Rice-Boshi, Maya (2023), there are some examples by industry that demonstrate what digital transformation is.
Table 1.1: Examples demonstrate what digital transformation is
Hospitality Online check-in/check-out | Using online check- in/check-out for guests to skip the in-person process.
Healthcare Telehealth Covering telecare and telemedicine including remote doctor consultations, health education, and monitoring of vital signs (blood pressure, ECG). e-commerce stores H&M _ (clothing — brand) encourages users to download the H&M's app where it can reach customers through in-app and push notifications that creates a new stream of revenue with its online store. partner cultural organizations throughout the world.
Thanks to the digital revolution, a great deal of business and life now differ greatly from those of 20 years ago This is also the reason that we are, in a sense, inhabitants of the digital era.
IT transformation focuses on optimizing existing IT systems and processes, while digital transformation encompasses a broader scope that includes integrating digital technologies throughout the organization The goal of IT transformation is to improve efficiency and reduce costs, whereas digital transformation aims to create new products, services, and customer experiences IT transformation typically has a limited impact on the organization's overall business strategy, while digital transformation can have a transformative impact on the entire enterprise Finally, IT transformation is typically implemented through incremental changes to existing systems, while digital transformation often requires a more radical overhaul of the organization's technology infrastructure.
Focuses on enhancing Transforms every aspect of the particular areas through enterprise, from customer automation and technology | experience and business models solutions to internal procedures and staff interactions.
Optimizes current Builds a company that is more procedures while cutting competitive, efficient, and costs and increasing focused on the needs of its efficiency within the current | customers by utilizing digital business model technology in a fundamental way.
Improves operational Stimulates innovation, redefines performance and saves industries, and produces new costs value.
Implementation | Primarily driven by the IT | Requires a comprehensive division, with an emphasis | strategy and major organizational on network infrastructure, transformation that includes staff hardware, and software training, leadership development,
Digital transformation reimagines whole processes, business models, and even organizational structures, whereas IT concentrates on automating specific functions It is all-encompassing, covering every facet of the company.
1.2.2 Main faces of digital transformation
Based on MIT Sloan Management Review (2017), there are three key areas of digital transformation for enterprises including customer experience, operational processes and business model as follow:
- Customer experience involves developing a deeper understanding of customers, utilizing technology to increase customer growth, and improving the number of client interactions.
- By utilizing digitization and automation, providing staff with digital tools, and gathering data to track performance and make more strategic business decisions, operational processes are enhancing internal processes.
- By introducing digital products, enhancing physical offerings with digital tools and services, and utilizing technology to deliver worldwide shared services, the business model is redefining the business.
Figure 1.1: Key areas of digital transformation for enterprises
The COVID-19 pandemic in 2020 exposed every enterprises' efforts and advancements in digital transformation Manufacturers realized how efficiently and rapidly they could launch new items Retailers rushed to offer customers new and safer shopping options Employers embraced or developed technologies that allowed employees to work remotely Supply chains were the operational workflows that showed the most obvious flaws Supply chain disruptions lasting one month or more happen every 3.7 years, as explained by McKinsey Global Institute, indicating that they are constantly susceptible However, the United States unexpectedly imported roughly 50% less from significant trading partners immediately after the pandemic started. Companies were compelled to restructure their supply chains in a matter of weeks or months which often took years or decades.
Almost any digital technology can be incorporated into an enterprise's digital transformation plan Nevertheless, a number of technologies, including automation and artificial intelligence (AI), hybrid cloud, microservices, IoT, blockchain, and digitization, seem to be significant both today and in the near future.
- The power of the human mind can be reproduced by a computer or machine thanks to AI technologies like machine learning AI learns from examples by recognizing objects, making decisions, and more When combined with automation, AI can bring intelligence and instantaneous decision-making to any workflow Advanced smart devices, highly customized user and customer experiences, enhanced supply chain management, change management, and other workflows are just a few of the things it might enable.
- Ina cloud-native architecture known as microservices, several applications are made up of loosely connected, independently deployable components. Microservices act as a catalyst for digital disruption or as a tool to thwart it, in conjunction with Agile or DevOps approaches It allows businesses to roll out new software or product features every day, or occasionally hundreds or thousands of times.
- Ahybrid cloud is a cloud computing system that connects on-premises IT, public cloud, and private cloud resources via orchestration, administration, and
18 application mobility Hybrid cloud offers the agility, scalability, and resilience needed for long-term success in digital transformation by generating a single, flexible, ideal cloud for running every workload and preventing an enterprise from being locked into a single platform or provider.
- IoT consists of devices and items with sensors that gather and send data online.
Interconnecting the digital and physical worlds, IoT devices enable self-driving cars and supply chain logistics to generate real-time data This data is processed by AI and big data analytics applications to automate operations and facilitate decision-making Additionally, hybrid clouds leverage on-premises IT, public cloud, and private cloud resources, offering a comprehensive approach to infrastructure management, planning, and mobility.
- Information on paper is transformed into digital data through the process of digitization Although it might seem like an outdated technique, practically every industry and sector is undergoing a digital transition It serves as the cornerstone of fundamental reform programs in government, education, and healthcare (electronic medical records, or EMR).
Basics of digital transformation strategy - - sư, 20
According to Cambridge Dictionary, “strategy” is a detailed plan for achieving success in situations such as war, politics, business, industry, or sport Based on Harvard Business Review, “strategy: is the creation of a unique and valuable position, involving a different set of activities Within the framework of my research, I want to focus on the concept of strategy in business.
Based on (Vauchel, Pierre, and Pierre Vauchel., 2022), a master plan for an enterprise is called a business strategy To accomplish its strategic objectives, a company's management creates and executes this plan A business plan is essentially a
20 long-term diagram that shows the intended strategic course for an enterprise The strategic long-term sketch must be made to accomplish its long-term goals Then, this corporate plan will serve as the main organizing principle for management. Collaboration among several departments within an enterprise is encouraged, guaranteeing that the actions of each division align with the overall direction of the business A few essential processes are defining a vision, establishing goals, assessing the company and the industry, identifying the competitive edge, and creating a framework before developing a strategy.
An enterprise may begin to struggle if its strategy is poorly defined because when personnel changes, the core of a business becomes less clear Enterprises may achieve short-term gains as a result, but this may come at the expense of their long-term survival.
In some situations, this can cause enterprises to suffer the consequences of their own success.
Influencing factors like declining sales, growing expenses, or more competition might make this situation worse In these situations, an enterprise will start to struggle. Even while developing a business strategy is not very challenging, it requires time and attention As a leader, we should give our business plan top priority and make sure to set aside some time from our daily tasks to create our business roadmap The development of a company strategy does not guarantee the success of the company. However, it does let us communicate with the staff about the vision and objectives of the company Additionally, if done properly, it instills a single goal of success across a whole company If times are rough, we are able to know that our staff is aware of the company's strategic vision and may work harder to realize it rather than focusing just on putting out fires.
An enterprise frequently has to define its goals in order to prepare for success during the early stages of creating a company Accurate data, organizational alignment, and a process to evaluate results are often necessary for an effective strategy A company can advance their team toward attaining their shared objectives by having a better understanding of strategy formulation As indicated in Management Study Guide
(2023), the process of determining the best course of action to achieve organizational goals and objectives and, consequently, the organization's vision is known as strategy formulation Creating strategies is necessary for establishing objectives and assessing their feasibility After creating plans, a company frequently provides training to its staff so they may understand the mission of the company as well as the objectives of the work environment.
As explained by Indeed Editorial Team (2023), in business, there are three levels of strategy Developing a plan for every one of these stages could help the group organize its work and simplify its procedures It may also help the company plan for the future and choose the best course of action for scaling up operations in response to changing market conditions There are the three levels of strategy formulation:
- Corporate level: Structure the organization and coordinate across business units
- Business level: Target and retain customers and compete with other organizations in the market
- Functional level: Plan to grow and improve the organization
There are six steps to perform strategy formulation First, develop a strategic mission A core statement that defines the company's values and long-term goals is called a strategic mission Consider the actions the companies would like to see their employees take on a daily basis as they consider their company values A strategic mission helps direct initiatives by providing a high-level comprehension of a company's goals and philosophy The three major components of a strategic mission are time, core values and business description.
To craft a comprehensive strategic purpose, companies should consider their long-term goals over various timeframes (e.g., one, five, and ten years) This perspective aids in identifying essential components such as target markets, consumer preferences, and potential challenges By establishing a clear strategic purpose, organizations can align their actions with their long-term objectives and maximize their potential for success.
In establishing a strategic purpose, it is essential to consider long-term objectives by evaluating the company's goals for the next three, five, and ten years This long-term view enables the identification of the target market, consumers, and problems the strategic purpose seeks to address, ensuring that the company's aspirations are aligned with its capabilities and market opportunities.
- Business description: Giving a description of the company's activities and goals might also support its strategic mission Take into account the business's sector,
22 the goods or services it plans to offer, and the methods of distribution it plans to employ.
Second, set a company's objectives The establishment of the company's long- term goals is an important component of any strategy statement Company's goals are specific and achievable targets that can help the teams get closer to completing the strategic mission and optimizing operations Having a clear understanding of objectives will help create efficient processes and procedures to achieve the business objectives.
To enhance organizational effectiveness, department plans play a pivotal role By defining clear objectives, we can craft customized strategies for each unit, streamlining task allocation and empowering employees to drive key performance indicators Whether setting concrete goals or establishing numerical targets, these plans provide a roadmap for sustained growth and enable us to track progress towards our strategic ambitions.
Fourth, carry out a performance evaluation Performance analysis includes identifying and evaluating the performance gap between actual performance and anticipated or planned performance The business needs to critically evaluate its past results, present situation, and ideal future state This critical review establishes the extent of the disconnect between the company's long-term objectives and its current state of affairs The company endeavors to forecast its probable future state, presuming the perpetuation of present trends A SWOT analysis is a typical analysis method that can be used:
- TT: Threats to the business
Enterprises can make future goals and critically evaluate current operations with the analysis of a SWOT analysis This application can help identify risks, put management practices and rules into place, cut down on errors, and create accurate sales projections The companies may put proactive measures in place to help stay resilient with the aid of a successful SWOT analysis.
DIGITAL TRANSFORMATION IN HOSPITALITY INDUSTRY
Overview of digital transformation in the hospitality Indusfry
2.1.1 Concept of digital transformation in the hospitality industry
Digital transformation in the hospitality industry involves integrating digital tools and strategies to enhance operations, improve customer experiences, and drive revenue growth It emphasizes adopting technology to streamline operations, leverage data analytics, and enhance marketing and distribution channels To achieve successful digital transformation, organizations must prioritize a customer-centric approach, foster a culture of innovation, and leverage leadership to guide the transition The integration of technology into hotel operations aims to provide seamless customer experiences, optimize resource utilization, and drive competitiveness in the rapidly evolving digital landscape.
Every hotel has its own digital transformation needs For example, there are hotels that want to focus on potential groups of guests who do not want to have contact with the staff Instead, they want to quickly enter their room In this case, the front desk robots can speed up and simplify their entry Or people just need their phones to check in They can choose their rooms from the floor plans on the app 24 hours before arrival, deciding the cleaning services they want, and getting a mobile key When they arrive, they can check in as soon as they can at the hotel without having to speak to anyone.
Covid-19 has speeded up the digital transformation of the hospitality industry, forcing many hospitality practitioners to adopt digital technologies It is time for the hospitality industry to embrace this transition since the impact of digital transformation on the sector is greater than ever.
“General digital transformation” is the process of applying digital technology to all aspects of an enterprise such as production, sales, marketing, sales, and customer care.The difference between “general digital transformation” and “digital transformation in the hospitality industry” is in the specific aspects in which digital technology is applied In the hospitality industry, digital technology is mainly applied to customer-related activities to improve service quality and customer experience.
General digital transformation is adopting digital technologies to improve business performance It can involve using new technologies to automate tasks, streamline processes, and create new products and services.
Digital transformation in the hotel industry is the specific application of digital technologies to improve the guest experience, increase revenue, and reduce costs for hotels It can involve using technologies such as mobile apps, cloud computing, and artificial intelligence to create a more seamless and personalized guest experience For example, Hilton Hotels uses data analytics to optimize room rates in real time, or Accor Hotels uses AR to allow customers to preview their room before they book it.
2.1.2 Main phases of digital transformation
According to Gizem Tas (2023), digital transformation consists of 10 steps in the hospitality industry The first step is to identify the company's goals Before creating a digital transformation strategy, the company needs to establish some particular targets. There are some benefits that digital transformation can help hotels to:
- Increase website traffic (The number of visits a website receives)
- Reduce operating costs (Lower the amount a company spends to run business)
- Improve the quality of goods and services (Concerned with how well a product performs)
- Increase customer experience (Improve each interaction a customer has with the brand)
- Boost digital revenue (Generate more revenue from digital channels, such as the hotel's website and mobile apps) Second step is to make a solid digital marketing strategy A digital marketing plan helps the hotel to stand out from the competitors When choosing where to stay on
32 their holidays, many travelers search online for hotels Therefore, the strategy should approach online users and convince them to make a reservation Working with a hotel marketing company that can help a hotel create an active web The marketing team can plan promotional giveaways or provide interesting content on social media.
The third step is to use a mobile-friendly website Nowaday, before making bookings, people search for accommodation options online Most likely, they do so while using their smartphones That is the reason why any hotel should create mobile- friendly websites According to a research by Grant, Trevor (2019) “92% of travel brands believe that a mobile strategy is critical for business success; 61% of users do not revisit a mobile site with low internet accessibility Instead, 40% of them will visit a competitor’s website.”
The fourth step is incorporating engaging elements into the website By adding interactive features to the website, the hotel may enhance the experience of its online visitors That lengthens visitors' stays on the website, improving SEO rankings That will gradually increase brand recognition, resulting in the development of a reliable brand image Also, the hotel should include a booking engine on the website That might speed up and streamline the booking process.
AI technology, particularly AI-driven chatbots, is revolutionizing the hotel industry Chatbots leverage artificial intelligence to respond to guest inquiries, resolving issues without human intervention Their accuracy and efficiency free up hotel staff to focus on more complex matters, enhancing the overall guest experience.
The sixth step using Customer Relationship Management (CRM) software CRM refers to the process of employing a software program to enhance existing and potential customer connections The hotel may produce high-end leads this way, and clicks can become bookings CRM software brings together the three important divisions of the hotel industry including marketing, sales, and service in one place The first benefit of this technology is to offer sophisticated marketing automation capabilities that let the hotel plan customized marketing campaigns This technology enables after-stay surveys
33 with a customer feedback system This aids in service improvement and inspires customers to leave online reviews.
Integrating IoT into hospitality enhances guest experiences by transforming rooms into "smart rooms." IoT seamlessly integrates advanced technologies into hotel operations, enabling guests to control amenities such as lighting, music, and temperature through mobile apps or voice assistants like Alexa and Google Home This provides guests with a convenient and personalized stay, maximizing comfort and satisfaction.
To enhance guest comfort and reduce direct contact, hotels are implementing technologies like mobile payments, self-check-in, and keyless entry By offering mobile payments through their website, hotels can provide a contactless payment option Mobile check-in and check-out services allow guests to avoid lines and enter their accommodations seamlessly Keyless room entry options, such as apps, RFID, or recognition technologies, further minimize contact A survey by AHLA (2020) revealed that 85% of guests prefer contactless services, increasing their comfort level during their stay.
The night step is organizing virtual hotel tours By enabling guests to preview hotel services and look over the interior design before making a reservation, virtual hotel tours improve the booking process The majority of these tours involve the use of VR,
Benefits of digital transformation in the hospitality Industry
The way that locations are used is what has traditionally set the hospitality industry apart, and digital spaces have now joined this club As the globe develops more digitally connected, creative solutions for the digital hospitality industry are regularly given.
The digital revolution has changed the patterns of international tourism development, creating room for novel strategies like cloud-based reservation platforms or digital channels for exchanging knowledge and experiences According to current travel trends, there is a growing demand for special offerings that go beyond mass tourism since discriminating consumers want solutions that are customized to meet their individual requirements IHG is an example of applying tailored services in digital to enhance guest experience It will be discussed in more detail in chapter 3.
The benefits of digital transformation in many traditional businesses will continue to evolve as advances in technology occur There are many advantages from digital transformation for both customers and the businesses Many businesses are aware of the advantages of digital transformation in the hospitality industry such as increasing brand awareness, developing operational efficiency, and improving customer experiences.
The digital revolution has revolutionized international tourism, enabling innovative strategies like cloud-based reservation platforms and personalized services like IHG, catering to individual travel trends: Hotels may better understand their customers and learn more about their interests and tastes with the use of data analytics Singh, Nikita., (2022) indicates that digital transformation in the hospitality industry can be used in several ways for improving the guest experience, operational efficiency, and bottom-line performance The hotels can offer an exceptional level of assistance based on their customers’ profiles, which will improve their sense of enjoyment Increasing operational effectiveness, more personalized guest experiences, and higher revenue are benefits for hoteliers The hotels can target particular customer segments, personalize their advertising campaigns, and offer specific promotions by evaluating guest data Higher conversion rates, more reservations, and better revenue are the results
Trending technologies like IoT, VR, and digital housekeeping offer benefits to customers and hotels: There are many kinds of trending technologies recently such as Integration of Technology (IoT), Virtual Reality (VR), digital housekeeping and concierge that give customers or hotels many benefits. Reduce lines by using self-service options such as check-ins or guidance in the airport Customers do not have to spend much time checking in (E-SPIN Group,
To reduce their environmental impact, hotels are implementing IoT solutions that promote sustainability These include digitalizing operations to reduce paper and key card usage Moreover, IoT enables intelligent energy management, allowing rooms to be heated only when occupied, minimizing energy consumption Additionally, digital transformation streamlines processes and integrates systems like PMS, reducing manual errors and optimizing resource allocation This enhanced efficiency translates into cost reductions, increased productivity, and streamlined operations.
- The hospitality industry is leveraging IoT to improve operations and customer experience: The hospitality industry has already star implementing IoT to enhance operations and customize the customer experience For example, customers can use their smartphones to download the Hilton Honors app Hilton has offered access with Digital Key including rooms, elevators, side doors, fitness center and parking garage Customers can book the rooms, manage the reservation, self-check in and check-out lo enhances customer experiences by simplifying customer service processes.
- Hotel operators can enhance customer experience by using VR simulators, providing a 360-degree virtual walkthrough of the property, attracting potential customers and utilizing the "try before you buy" marketing strategy: Customers thought that the best tool for hotel operators to develop an engaging customer experience would be VR simulators Customers can have a better idea of what they are expecting through the digitally enabled environment, attracting more potential customers Boston Hospitality Review (2021) provides an example that The virtual tour video is a VR application that gives visitors an insider's perspective of the property Visitors can observe the arrangement of hotel rooms and engage in a 360-degree virtual walkthrough by only clicking the mouse or wearing a headset This not only gives clients an opportunity to test something out before making a reservation, but it allows the hospitality industry to take advantage of the "try before you buy" marketing strategy.
IoT presents ample opportunities for the hospitality industry, particularly with the advent of data analysis Advanced technologies such as AI, big data, and cloud computing enable hoteliers to harness valuable insights from IoT data Moreover, the deployment of 5G networks enhances connectivity, allowing for seamless data transmission and unlocking even greater potential for IoT in the sector.
Challenges of digital transformation in the hospitality Indusfry
While there are promising significant benefits, digital transformation in the hospitality industry also comes with challenges This is one the most important parts of this research because digital transformation is happening every day and changing rapidly The key of a digital transformation strategy is to improve customer satisfaction and increase revenue Therefore, realizing and facing the challenges of digital transformation in the hospitality industry is important It is recommended that hospitality industry operators use a proactive approach by integrating pertinent digital technologies to enhance productivity within their establishments These tools are essential for improving client connections in real time and looking into new revenue streams By utilizing digital technology, various facilities can compete more successfully against their international and global peers and are better equipped to handle market issues Technology boosts profitability by generating new employment opportunities in the hospitality industry and drawing in new clientele, such as independent travelers and digital nomads.
- The challenge that the hospitality industry now has faced is the rising availability and deployment of digital technologies as they look for the best plan to direct their investment in new systems and technology in the digital era Wynn, Martin G., and Peter Jones., (2022) states that "customer expectations regarding digital technology innovations pressure hotel operators to implement a range of new devices and technologies that aim to provide better customer service and generally improve operational efficiencies." Intelligent technologies have been used in the hospitality industry such as the IoT, big data, cloud computing, biometric recognition, virtual reality (VR), augmented reality (AR), or service robots It is going to be expensive to implement intelligent technologies and upgrade infrastructure at first The financial barrier can make it difficult for smaller or independently owned hotels to begin their journey toward digital transformation.
- Another challenge is the old system and integration Many hotels continue to depend on old systems that may struggle with modern digital solutions It can be
38 challenging and time-consuming to integrate new technology with current systems According to SystemChidi Ukamaka B., Chinazo Juliet O., Nneka Martina A (2023), currently in the hotel industry there are few truly integrated systems used because there are so many heterogeneous systems already in existence The challenges of scalability, maintenance, cost, and security become bigger.
Employee training is necessary to help businesses make the transition to a digital- first approach Challenges in the transformation process can include the requirement for comprehensive change management and resistance to change. Technology offers significant assistance to hotel staff members as they carry out their daily duties and contribute to the efficient management of a hotel's general daily operations "However, how well employees do their job, which is reflected in the quality of the service of a hotel, heavily relies on the effectiveness with which hotel employees use their hotel technology Employee attitudes toward technology are already considered in the hotel industry’s effective technology usage." (Sun, Sunny., 2019) Hence, understanding employee reactions to technologies is critical (Parasuraman, A Parsu, and Charles Colby., 2014).
Evidence suggests that urban and rural areas are more different in terms of infrastructure quality as societies become more linked and digitalized For many digital services in the hospitality industry, dependable and fast internet connectivity is essential Providing smooth digital experiences might be difficult in remote areas or places with inadequate Internet access Additionally, as digital technologies become increasingly integrated in people's social, political, economic, and personal life, the negative effects of disconnection depending on the social context of the person, group, or community (Park et al., 2019)
While the goal of digital transformation is to improve customer experiences, there is a chance that the human touch and one-on-one interactions that customers enjoy will be lost It is important to find the correct balance between technology and customer service Most business customers like to check-in and check-out online or with self- service kiosks to save their time, but leisure customers might want to speak to the front
39 desk agents when they first come to a hotel They feel like they are welcome when visiting a new country, and they enjoy talking to locals Their experiences might be less friendly if they have to check-in with self-service kiosks.
“The adoption of advanced technology may create a digital divide among hotel guests” (Wahl, Thomas., 2023) Some customers might not be as knowledgeable about technology or have access to digital devices, which could result in being excluded from some services Elderly customers or customers from countries that have not yet caught up with the most advanced technologies may experience frustration or rejection when trying to use the hotel's digital features The digital gap may make guests’ stays less pleasurable if they are used to personalized attention from hotel staff and conventional, face-to-face interactions It can be difficult to guarantee inclusivity and close the digital divide for every visitor.
In an effort to stay up with quickly evolving technologies and constantly shifting consumer behavior, the hospitality industry is going through a lot of change More and more people are using advanced automation systems, robots, artificial intelligence, loT and smart technologies, augmented reality, and computerized maintenance management systems According to Katie S., (2022), the hospitality industry "is under constant pressure to deliver high-quality services, maintain the highest safety and hygiene standards and ensure seamless maintenance of livable spaces and critical equipment." The digital world is continually changing, and new technologies are always being developed It might be difficult to keep up with the most recent trends and select the technology that will best serve the needs of the hotels.
Maintaining consistency in the digital experience across all locations can be difficult for hotel chains with multiple properties The infrastructure and level of digital readiness may differ between different places."A consistent customer experience starts with an authentic brand that has a clear mission and foundational pillars that drive how they perform That clear mission begins before guests enter the hotel It starts online. Research is reporting that between 75% and 80%+ of customers are booking travel electronically, without any human interaction It’s imperative that the online customer experience matches what they will experience in person,” says Meredith Kasheta, owner
40 of MMC Agency It is important to ensure that the online experience of guests lives up to hotels' standards in all locations over the world.
Relying on third-party technology providers can have its own set of difficulties, such as managing vendors, ensuring high-quality services, and controlling any disruptions Deloitte (2018) reports that In the current digital economy, organizations are depending more and more on outside parties As a result, a lot of companies could overlook forthcoming problems and ignore dealing with them directly Additionally, managing these relationships may not always be coordinated.
In short, an intelligent and thoughtful strategy to digital transformation is necessary to overcome these challenges It entails careful planning, investment in training and support, collaboration with dependable technology partners, and a dedication to improving the overall guest experience while embracing hospitality's digital future The digital transformation strategy in the hospitality industry is continuing to be discussed in detail in the next chapters.
Current status of digital transformation in the hospitality 1ndustry
Early in 2020, the Covid-19 outbreak affected people's access to information, way of life, and employment The development of contactless digital technologies has resulted, which is good for customers and businesses Due to circumstances such as remote working, people have welcomed technology so quickly Human behavior has changed, so should the customer’s experience at the hotels Many customers are expecting digital adoption in hotels after the pandemic since they have grown increasingly to obtain their demands and activities from their phones.
Many of the technologies that are so popular have existed for years Many other businesses have already adopted contactless payment methods such as online banking, online check-in, or booking instead of going to the airport or travel agent The hospitality industry has always been slow to adapt to new technology, but as digital habits grow, this will no longer be acceptable It's important to understand that contactless hotel technology, including online check-in and check-out, digital meal ordering, and guest messaging, was developed to meet the requirements of the industry.
The report of Statista Research Department (2021) shows the adoption rates of selected contactless technologies in hotels in the United States in 2020 as below:
Adding contactless New digital messagling Self-service check-in Room keys/locks activated payment options services to handle guest procedures by smartphone requests
@ Already made/making this change @ Considering this change in the future No plans to change
Figure 2.1: The adoption rates of selected contactless technologies in hotels in the
As mentioned in the previous chapters, hotels can invest in mobile apps to offer easy access to services and information to customers These apps have featured functions including room service ordering, virtual concierge, loyalty program management, and personalized recommendations Data analytics and AI are being used more by the hospitality industry to gain insights from guest data (Data-driven insights) Understanding customer preferences, behavior and spending patterns help customize marketing efforts and enhance customer experiences Virtual reality, augmented reality, Integration of IoT and smart devices are also the trends in the hospitality industry that mentioned before.
The hospitality industry is leveraging technology to enhance booking experiences Online reservation platforms and distribution channels are gaining traction, prompting hotels to collaborate with online travel agencies (OTAs) and optimize their websites for mobile accessibility Global distribution systems (GDS) play a crucial role in facilitating hotel bookings by connecting them to a network of travel agents and other distribution partners, thereby increasing their visibility and reach.
42 important distribution channel for connecting with travel agents Travel agents use this system to browse hotels, view rates, and check availability Well-known global distribution systems include Amadeus, Worldspan, Sabre, and Travelport Not only do GDS provide real-time pricing and availability information, but they also help maintain clients’ information up to date across travel agent systems globally.
Digital transformation is also supporting sustainability efforts in the hospitality industry Hotels are using technology to reduce waste, increase eco-friendly operations, and optimize energy usage Nicholas Vincent (2023) indicated that energy usage is one of the major costs for hotels LED lights and other energy-efficient lighting systems consume less energy and have a longer lifespan than conventional incandescent bulbs. Energy can be saved by having smart HVAC systems configured to adjust the temperature based on occupancy and outside conditions.
The hospitality industry is experiencing rapid digital transformation, and it is essential to stay updated on the latest developments Recent reports, industry publications, and news sources provide valuable insights into the current state of digital initiatives in the sector, enabling businesses to make informed decisions and adapt to the evolving landscape.
CAGR of 6.5% projected growth for the Vietnamese hotel market is 6.5% from
2023 to 2027, reaching a size of USD 18.6 billion by 2027 (CDV 2024) 85% of Vietnamese hotels have implemented or plan to implement digital transformation, highlighting its strong adoption (Vietnam Hotel Management Association, 2022) The data has shown digital transformation growth in the hospitality industry in Vietnam that 90% of hotels have implemented or plan to implement it on online booking, and 80% of hotels have implemented or plan to implement smart hotel management Hotels in Vietnam need to implement digital transformation for reasons of increasing operational efficiency, competitiveness, market access and innovation.
In conclusion, to successfully transform digitally, hotels in Vietnam need to pay attention to management lessons including having vision and commitment in management, building a specific digital transformation plan, training and developing human resources effort, monitor and evaluate effectiveness.
IHG’S ASSESSMENẽT - Gv ng ng ng ệt 44
Introduction about IH 5 + 19v TH nh ng Hư 44
Based on IHGPLG (2023), one of the top hotel chains in the world, IHG Hotels
& Resorts employs almost 345,000 people to provide True Hospitality for Good in more than 100 countries IHG operates in various segments of the hospitality industry, including luxury, upscale, midscale, and economy hotels The company's brand portfolio includes well-known hotel brands, catering to different market segments and guest preferences Some of the prominent brands under IHG include InterContinental Hotels
& Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, Holiday Inn Express, Kimpton Hotels & Restaurants, EVEN Hotels, HUALUXE Hotels and Resorts, and Candlewood Suites, among others.
IHG has a rich history dating back to the 18th century Here's a brief overview of its key milestones:
- 1777: Bass Brewery is founded in Burton-on-Trent, England The brewery later became a major player in the hospitality industry.
- 1946: The first InterContinental hotel opens in Belem, Brazil, marking the beginning of the prestigious InterContinental Hotels & Resorts brand.
- 1960s-1970s: Bass Brewery expands its hospitality portfolio through acquisitions and developments, including Holiday Inn and Crowne Plaza Hotels & Resorts.
- 2003: Bass Brewery undergoes a significant restructuring, and the hotel division is spun off to form InterContinental Hotels Group (IHG) as a separate entity IHG becomes a standalone hospitality company, headquartered in Denham, Buckinghamshire, UK.
- 2004: IHG acquires the boutique hotel brand Kimpton Hotels & Restaurants, adding a luxury segment to its brand portfolio.
- 2007: IHG sells its iconic InterContinental Hong Kong hotel, setting a record as the world's most expensive hotel sale at that time.
- 2015: IHG acquires the luxury hotel brand Regent Hotels & Resorts, expanding its presence in the luxury hospitality market.
- 2020: IHG celebrates its 200th hotel opening in China, highlighting its significant growth and presence in the country.
- 2021: IHG continues to evolve and adapt to the challenges posed by the COVID-
19 pandemic The company focuses on digital transformation, sustainability, and supporting its properties and guests during the unprecedented period.
With hotels and resorts in the Americas, Europe, Asia, the Middle East, Africa, and Oceania, IHG has a significant worldwide footprint The corporation is one of the biggest hotel chains in the world, with operations in over 100 countries.
Under a franchise and management contract business model, IHG primarily operates hotels owned by third-party investors This enables rapid global expansion without substantial capital outlay IHG manages and franchises a portion of its properties, while the majority are owned by external entities that contract with the company.
Global sales organisation Strong loyalty
We programme and a MỊ bp enterprise contribution
IHG generates revenue from multiple sources, including franchising fees, management fees, and brand licensing fees Franchise and management fees are earned from hotels under franchise agreements or management contracts, while brand licensing fees are generated from the use of IHG's brands in hotels owned by third parties.
IHG Rewards Club is a comprehensive guest loyalty program run by IHG. Participants in the program can accrue points for lodging stays and exchange them for free nights, vacation, and other benefits The loyalty program plays a crucial role in driving customer retention and repeat business for IHG properties.
1HG is firmly committed to ethical business conduct and sustainability Through a number of projects, the corporation hopes to lessen its impact on the environment, promote diversity and inclusion, and assist local communities.
As many hospitality companies, IHG has been investing in digital transformation to enhance guest experiences and optimize operations The company has introduced mobile apps, contactless check-in/out, and other digital innovations to cater to the changing preferences of modern travelers indicated by the company's official website and recent financial reports.
IHG's development strategy centers around growth, global expansion, and brand diversification It aims to expand its portfolio by attracting new hotels, increasing its regional brand presence, and maintaining a diverse hotel offering The company targets both mature and emerging markets for expansion, seeking opportunities for new developments, conversions, and brand signings IHG mainly operates under a franchise and management contract model, partnering with third-party investors and owners to franchise its hotel brands and manage hotels on their behalf, allowing it to reach a wider audience and increase its market share.
IHG is focused on growing its luxury hotel offerings As an illustration of its dedication to increasing its position in the upscale hospitality sector, IHG recently acquired the Regent Hotels & Resorts brand.
IHG has used digital transformation programs to improve its approach to development They want to maximize distribution channels, enhance customer experiences, and streamline operations by utilizing digital technologies IHG is dedicated to responsible and sustainable growth In its development efforts, they have prioritized social responsibility, environmental sustainability, and community engagement.
3.1.3 Digital transformation is necessary and important for IHG
The necessity and importance of digital transformation for IHG are driven by a number of variables that have an effect on the hospitality industry and the changing needs of visitors IHG's ability to remain competitive, improve guest experiences, and increase operational effectiveness is greatly helped by digital transformation.
IHG emphasizes customer-centricity by tailoring services and solutions to meet evolving guest and owner expectations In 2022, they invested in enhancing the guest experience, catering to travelers' demands for seamless, personalized, and technologically advanced journeys For business travelers, IHG offers convenient booking, hybrid solutions, and customizable rewards to optimize workforce engagement Additionally, IHG has implemented upgrades such as a new app with improved features, online IHG One Rewards enrollment, expanded Digital Concierge services, enhanced Wi-Fi connectivity, and utilization of GRS's configurable room amenities and stay upgrades.
In addition to improving procedures and optimizing performance, IHG 1s upgrading their digital capabilities to gain access to deeper data and enhance their capacity to communicate with customers across platforms, increasing brand awareness.
Launched — | next-generation 58x mobile app (eo)
| Of all digital bookings are now made on our new mobile app
Commenced rollout | Redesigned brand of next-generation websites as part payments system 2 of transformed booking journey | |
Introduction of 24/7 customer care text @) 3% messaging service 2 (eo)
Of customer contacts shifted to digital channels, reducing
IHG leverages data and analytics to gain valuable insights, enabling the anticipation of guest demands and creation of tailored experiences By harnessing cloud-based platforms and apps, IHG can swiftly and cost-effectively test innovative hotel offerings, ensuring a seamless guest experience The company's digital infrastructure serves as a foundation for continuous improvement and optimization of customer satisfaction.
SWOT analysis for IHG in term of digital transformation
SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities, and threats of a business In the context of IH G and its digital transformation efforts, here is a SWOT analysis:
IHG's notable brand portfolio encompasses an extensive range of hotel brands, catering to diverse market segments This strategic diversification allows IHG to leverage its digital offerings effectively and capitalize on its well-established brand recognition, reaching a broader audience in the process.
- Global presence: IHG has properties in more than 100 nations, giving the company a worldwide presence IHG has a lot of opportunities to participate in projects for digital transformation across many regions because of its extensive network.
- IHG Rewards Club: IHG Rewards Club, the company's loyalty program, has a sizable membership base With its data insights and emphasis on keeping customers, this initiative aids IHG's efforts toward digital transformation.
Digital infrastructure: IHG has made investments in digital capabilities and infrastructure The company has a strong foundation to manage digital transformation efforts due to its established systems and technology base.
Operational complexity: Given the size and scope of IHG's international operations, it may be difficult to accomplish a consistent digital transformation across all properties due to variations in infrastructure, regulations, and cultural differences.
Data Management and Privacy: It can be difficult to manage customer data and privacy across several areas IHG's digital transformation journey must ensure compliance with data protection regulations This might be a challenge.
Resource Allocation: Careful planning and prioritizing may be necessary to allocate enough funds for digital transformation activities across an extensive network of properties.
Personalization and guest experience: [HG has the chance to improve guest experiences through tailored services, targeted marketing, and seamless interactions via digital transformation.
Contactless technology: The COVID-19 epidemic has increased interest in contactless interactions Using contactless technologies may enhance guest satisfaction and safety.
Data analytics and AI empower IHG to gather valuable insights into guest behavior This data-driven approach enables informed decision-making that enhances operational efficiency, optimizes marketing campaigns, and maximizes revenue generation.
Competition: Intense competition exists in the hospitality industry, where a large number of hotel chains and online travel agencies compete for customers IHG must continually innovate and set themselves apart if they want to lead in the digital age.
- Cybersecurity risks: IHG is exposed to cybersecurity risks due to the growing reliance on digital technologies Cyberattack protection for customer data and digital infrastructure is essential.
- Changing customer preferences: In order to stay relevant and competitive, IHG has to rapidly adapt to changing guest preferences and travel behaviors.
External Factor Evaluation matrix (EFE) and Internal Factor Evaluation matrix (IFE) are used as an analysis technique that applies in parallel with the SWOT matrix and has the effect of comparing with the SWOT matrix I would like to include these techniques as following tables:
Established brand portfolio Operational complexity
Global presence Data management and privacy TOWS
IHG Rewards Club Resource allocation
Opportunities SO Strategies WO Strategies technology
Data-driven S4,1,2,03: IHG's current decision making | strategy for digital transformation relies on the use of AI and data technology
Competition $1-4, T1-2:IHG has adopted digital technologies to automate and digitize many employee functions
Cybersecurity | S1-4, T1-2: IHG uses a W1-3, T1-2: HG's current communicate its digital transformation relies on the strategy to employees, use of AI and data technology including internal websites, conferences and training, online tools and resource
Overall, IHG may build on its strengths and take advantage of opportunities as it embarks on its digital transformation journey, but to be successful, they must also address its weaknesses and counteract threats IHG will be able to preserve its competitive advantage and improve guest experiences in the constantly changing digital hospitality industry with the support of a systematic approach to digital transformation. 3.3 Digital maturity assessment
In chapter 1 and 2, these are the main areas I have researched about digital transformation in the hospitality industry:
90% of enterprises use the cloud for business, digitally replicating existing services and transforming the company as a whole Cost reduction, increased customer satisfaction, and data-driven insights drive success.
Digital transformation strategy utilizes AI and data technology to personalize customer experiences, recommend tailored services, and understand customer needs, enhancing products and services.
Digital transformation strategy aims to enhance business performance by leveraging technology, creating new products, and overhauling processes, often requiring organizational structure changes to provide innovative services.
To successfully transition to digital transformation, a strategic approach involving careful planning, investment in training, collaboration with technology partners, and dedication to guest experience is crucial.
From these studies, I would like to assess an organization's digital maturity level by evaluating a company's current digital transformation strategy, evaluating a company's customer experience, and evaluating a company's people and processes.
From there, I can analyze digital maturity in IHG and propose an appropriate strategy for IHG through research and survey results.
Assessing an organization's digital maturity level is a modern method that allows identifying areas for improvement from an organization's digital perspective The results of this assessment can be used to build an organization's digital transformation strategy. Below are some main points.
3.3.1 General concept of digital maturity
- Evaluating a company's current digital transformation strategy involves a comprehensive analysis of the company's digital capabilities and their alignment with its business goals This assessment helps identify areas for improvement and prioritize digital initiatives to drive business growth and innovation.
- Evaluating a company's customer experience involves assessing the company's focus on customer-centricity, its use of technology to enhance customer experience, and the integration of customer experience into its overall digital transformation strategy.
- Evaluating a company's people and processes involves assessing their ability to support and adapt to the company's digital transformation journey This
53 evaluation helps identify areas for improvement in the company's talent management, organizational culture, and operational efficiency.
3.3.2 Digital maturity in the hospitality industry
Evaluating a hotel's current digital transformation strategy involves the use of digital technology tools, products, and services; and how they inform employees about applying digital transformation.
Evaluating a hotel's customer experience involves in how the hotel engages and interacts with their customers using multiple channels such as mobile apps, online platforms, and agency; and how the hotel has an accurate and detailed assessment of customers across various interaction points such as transaction history, demographics, complaints and support issues and reservations.
Theoretical Meaning - <1 HT TH TH HH 85
The theoretical meaning of this research contributes to the library of knowledge in the field of hospitality It is an opportunity to demonstrate knowledge of business theory and practice, as well as the capacity for independent study and strong conclusion-making, through the research This research gives new viewpoints on current hospitality issues, proposes new solutions, tests existing theories, and develops new business theories The research can also be used to explore new and emerging areas of hospitality research.
The practical significance of a digital transformation strategy for a hotel is a plan for how the hotel will adopt and use digital technologies to improve its operations, customer experience, and financial performance This comprehensive plan addresses
85 every aspect of the hospitality industry, ranging from bookings and guest arrival/departure to advertising and revenue generation.
In short, a hotel's digital transformation strategy is essentially a road map outlining how it will leverage digital technologies to meet its objectives In order for hotels to succeed and remain competitive in the digital era, which is an important tool.
3 Limitation and direction for future research
This research is limited in scope due to the time and resources available This means that I might not be able to include all aspects of a complex business strategy The number of samples is small and cannot be generalized domestically and internationally.
T also have limited access to data because my research is currently an emerging topic. This limits the generalizability of my exploration Finally, I am still under development.
While I acknowledge my limitations in possessing the comprehensive expertise of seasoned hospitality industry professionals, this does not diminish my understanding of the nuanced business challenges within the sector My ability to analyze complex business issues is not hindered by a lack of experience but rather enhanced by my eagerness to learn, adapt, and collaborate with industry experts.
Expanding the research scope to encompass student, enterprise, and funding customer groups enhances the accuracy of the findings By considering factors like AI-powered asynchronous messaging and hotel management software, the determinants of mobile app usage intent can be more thoroughly analyzed Examining future technology platforms' customer satisfaction offers valuable insights Strategy research could delve into areas like competition, corporate social responsibility, and globalization.
REFERENCES “How COVID-19 Has Pushed Companies Over the Technology Tipping Point— and Transformed Business Forever.” McKinsey & Company, 5 Oct 2020, www.mckinsey.com/capabilities/strateg y-and-corporate-finance/our- insights/how-covid-19-has-pushed-companies-over-the-technology-tipping- point-and-transformed-business-forever.
“How to Use Strategy Formulation: Definition, Steps and _ Tips.” https://www.indeed.com/, 3 Feb 2023, www.indeed.com/career-advice/career- development/strategy- formulaton#:~:text=Strategy%20formulation%201s%20the%20process.to%20 workplace%20strategies%20as%20needed.
“IHG Annual Report and Form 20-F 2022.” https://www.ihgplc.com/, 2022, www.ihgplc.com/~/media/Files/I/Ihg-Plc/homepage/annual-report-2022.pdf.
“Process Optimization - FPT Digital.” FPT Digital, digital.fpt.com/en/process- optimization.
“Rise of Digital Transformation in the Hospitality Industry | Techved.” Techved, www.techved.com/blog/rise-of-digital-transformation-in-the-hospitality- industry.
“SURVEY: HOTEL INDUSTRY’S ENHANCED CLEANING PROTOCOLS
PUTTING TRAVELERS AT EASE.” https:/www.ahlacom/, 2018, www.ahla.com/sites/default/files/Survey_Frequent%20Travelers%20 View %20 on%20Hotel%20Cleaning %20and%20Safety%20Initiatives.pdf.
“What Is Digital Economy?” Deloitte Malta, www2.deloitte.com/mt/en/pages/technology/articles/mt-what-is-digital- economy.
A Digital Transformation Strategy That Delivers: 6 Ways to Do It Right. www.betterup.com/blog/digital-transformation-strategy.
Adapting To Constant Changes In The Hospitality Industry: 4 Incorrect Views
You Have To Avoid - hoteliga (n.d.).
87 https://www.hoteliga.com/en/blog/adapting-to-constant-changes-in-the- hospitality-industry-4-incorrect-views-you-have-to-avoid
10 Adapting To Constant Changes In The Hospitality Industry: 4 Incorrect Views
You Have To Avoid - hoteliga (n.d.-b). https://www.hoteliga.com/en/blog/adapting-to-constant-changes-in-the- hospitality-industry-4-incorrect-views-you-have-to-avoid
11 Agency Inc (2020, October 20) What is the Relationship Between a Marketing
Strategy and a Business Plan? - Agency Inc. https://www.agencyinc.co.uk/blog/relationship-marketing-strategy-business- plan
12 Bindy (2023, September 19) How to keep your hospitality brand experience consistent across multiple hotels and channels Operations and Standards. https://blog.bindy.com/how-to-keep-your-hospitality-brand-experience- consistent-across-multiple-hotels-and-channels
13 Boston University "Digital Transformation in the Hospitality Industry | Boston
Hospitality Review." © 2023, 4 Oct 2021, www.bu.edu/bhr/2021/10/04/digital- transformation-in-the-hospitality-industry.
14 Chase, C (2023, July 12) Directive Directive. https://www.directive.com/blog/over-90-of-businesses-use-cloud-computing- and-for-good-reason.html
15.CiHMS (2021) Digital Transformation in the Hospitality Industry Retrieved
January 16, 2024, from_www.cihms.com/en/digital-transformation-in-the- hospitality-industry/
16 Contributor, Guest “Digital Transformation Strategies for Hospitality.” eXceed
Global Learning Pty Limited, 10 Jan 2022, insights.ehotelier.com/insights/2022/01/13/digital-transformation-strategies-for- hospitality.
17 Davis, Tyler “‘Digital Transformation’ Is a Misnomer - MIT Sloan Management
Review.” MIT Sloan Management Review, 11 Sept 2020, sloanreview.mit.edu/article/digital-transformation-is-a-misnomer.
18.Deloitte “Managing Third Parties in the Digital Era.” https://www?2.deloitte.com/, 2024, www2?2.deloitte.com/content/dam/Deloitte/global/Documents/Technology/gx- tech-supplier-risk-report.pdf.
19 E-Spin (2019, October 16) Benefits of digital transformation in the hospitality industry E-SPIN Group https://www.e-spincorp.com/benefits-of-digital- transformation-in-the-hospitality-industry
20 Geevarathna, & Shyam, Reena "Digital Transformation Trends and Challenges in Hospitality and Tourism." ResearchGate, Dec 2018, https://doi.org/10.13140/RG.2.2.16465.79206.
21.Grant, T (2019, April 18) The importance of mobile bookings in hospitality.
Revenue Hub https://revenue-hub.com/mobile-bookings-hospitality
22 Hanoi Times (2023, January 22) Tourism Firms Upbeat About Vietnam’s
2023 Outlook hanoitimes.vn Retrieved January 16, 2024, from https://hanoitimes.vn/tourism-firms-upbeat-about-vietnams-2023-outlook-
23 Hiệp hội Du lịch Việt Nam, Quy hỗ trợ phat triển du lịch, & Tổng cục Du lịch.
(2022, thang 04) 5 Định Hướng Mới Cho Phục Hồi Và Phát Triển Du Lịch
Việt Nam Vietnamtourism.gov.vn._https://vietnamtourism.gov.vn/post/40305
24.Hotel distribution Channels: The complete guide | CVENT blog (n.d.). https://www.cvent.com/en/blog/hospitality/hotel-distribution-channels
25.IEEE CAS Vietnam Chapter “The 9th International Conference on Integrated
Circuits, Design, and Verification (ICDV 2024) June 6-7, 2024 — Hanoi,
Vietnam.” https://icdv-conf.org/, 6 June 2024, icdv-conf.org.
“Home - VHMA.” Higher Logic, LLC, www.vhma.org/home.
26 Kitija “Top 5 Challenges Facing the Hospitality Industry in 2023.”
DigitalGuest, 27 Oct 2023, digitalguest.com/challenges-facing-the-hospitality- industry-2023/.
27 Kraus, Sascha, et al “Digital Transformation: An Overview of the Current State of the Art of Research.” SAGE Open, vol 11, no 3, July 2021, p.
28 Liferay (2020, August 3) Digital Strategy - The Evolving Business Strategy |
LifeRay Liferay https://www.liferay.com/fr/resources/I/digital- strateg y#:~:text=Traditionally%2C%20the%20process %200f%20IT, provide %2 Obetter%20services %20for%20customers
29.MarTech cube “The Customer-Centric Approach to Digital Transformation.”
MarTech Cube, 17 Jan 2022, www.martechcube.com/the-customer-centric- approach-to-digital- transformation/#:~:text=Customer%2Dcentricity %20marks %20the%20new,op portunity%20lies %20in %20customer%20satisfaction.
30.McKinsey & Company, 17 Aug 2022, www.mckinsey.com/featured- insights/mckinsey-explainers/what-are-industry-4-0-the-fourth-industrial- revolution-and-4ir.
31.McKinsey & Company, 21 Feb 2020, www.imckinsey.com/capabilities/mckinsey-digital/our-insights/managing-the- fallout-from-technology-transformations.
32 Nadkarni, Swen, and Reinhard Priigl “Digital Transformation: A Review,
Synthesis and Opportunities for Future Research.” Management Review
Quarterly, vol 71, no 2, Apr 2020, pp 233-341. https://doi.org/10.1007/s11301-020-00185-7.
33.News, VietNamNet “Digital Transformation Begins in Hotel Industry.”
VietNamNet News, 2022, vietnamnet.vn/en/digital-transformation-begins-in- hotel-industry-806708.html Accessed 7 Feb 2023
34 Our history (n.d.) InterContinental Hotels Group PLC. https://www.ihgplc.com/en/about-us/our-history.
35 Parasuraman, A., & Colby, C L (2014) An updated and streamlined technology readiness index Journal of Service Research, I8(1), 59-74. https://doi.org/10.1177/10946705 14539730
36.Park, S., Freeman, J., & Middleton, C A (2019) Intersections between connectivity and digital inclusion in rural communities Communication
Research and Practice, 5(2), 139-155. https://doi.org/10.1080/22041451.2019.1601493
37 Pelham, Martin “Digital Transformation in Hospitality Industry - a Framework by Northell.” Brand Insights, 21 June 2023, northell.com/brand-insights/data- and-digital-for-the-hospitality-industry.
38 Redacción "Digitization of the Hotel Sector by GAT - Voxel - Blog." Voxel -
Blog, 23 May 2022, www.voxelgroup.net/blog/en/digitization-of-the-hotel- sector-by-gat.
39.Rinn, T (2022, May 10) Why Data-Driven Insights are critical to digital
Transformation Forbes. https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2022/05/10/w hy-data-driven-insights-are-critical-to-digital-transformation/?shRfb3ad978c2
40.Rinn, Thomas “Why Data-Driven Insights Are Critical to Digital
Transformation.” Forbes, 10 May 2022, www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2022/05/10/why- data-driven-insights-are-critical-to-digital-transformation/?shRfb3ad978c2.
Digital transformation is revolutionizing customer experiences, driving businesses to adopt innovative technologies that enhance interactions and meet evolving preferences The hospitality industry, in particular, has witnessed significant advancements, with digital platforms streamlining guest communication, check-in and check-out processes, and personalized services tailored to individual needs.
Aeologic Blog https://www.aeologic.com/blog/role-of-digital-transformation- in-the-hospitality- industry/#:~:text=Digital %20transformation%20in%20the%20hospitality%20in dustry%20can%20be%20used%20in,and%20guest%20self42Dservice%20port als
43 Statista (2021, September 2) Adoption rates of contactless technologies in U.S. hotels 2020 https://www.statista.com/statistics/1254942/adoption-rates-of- contactless-technologies-in-us-hotels
44 Steps in Strategy Formulation Process. www.managementstudyguide.com/strategy-formulation-process.htm.
45.Sun, S., Lee, P., & Law, R (2019) Impact of cultural values on technology acceptance and technology readiness International Journal of Hospitality Management, 77, 89-96 https://doi.org/10.1016/j.ijhm.2018.06.017
46 Tas, Gizem “Digital Transformation in Hotel Industry.” Gourmet Marketing, 4
July 2022, www.gourmetmarketing.net/blog/digital-transformation-in-hotel- industry.
47.Team, W (2023, December 15) 7 digital transformation examples from top enterprises WalkMe Blog https://www.walkme.com/blog/digital- transformation-examples
48 Transformational Strategies for the Hospitality Industry: A Case Study of Hilton
Worldwide" by A Kasavana and M Brooks (2012)
49.Treehouse Tech Group “IT Transformation Vs Digital Transformation.”
Treehouse Tech Group, 20 May 2021, treehousetechgroup.com/it- transformation-vs-digital.
50 Trường, M X (2023, October 17) Digital Transformation in Operations:
Definition, Examples, and tips Magenest - One-Stop Digital Transformation
Solution https://magenest.com/en/digital-transformation-in- operations/#:~:text=Digital%20transformation %20in%20operations %20is,new
51 Vauchel, Pierre, and Pierre Vauchel “What Is a Business Strategy? And How to
Develop One!” IMD Business School for Management and Leadership Courses, ?
27 Jan 2023, www.imd.org/reflections/business-strategy.
52 Vial, Grégory “Understanding Digital Transformation.” Routledge eBooks,
53 Vietnam Investment Review “Digital Transformation Needs for a Tourism
Recovery.” Vietnam Investment Review - VIR, vir.com.vn/digital- transformation-needs-for-a-tourism-recovery-91510.html.
54.View of Automated Hotel Management Information System. hspublishing.org/JRECS/article/view/78/64.
55 Vincent, N., & Vincent, N (2023, January 23) 10 Ways Technology is
Transforming the Hospitality Industry One Green Planet. https://www.onegreenplanet.org/environment/10-ways-technology-is- transforming-the-hospitality-industry
56 Wahl, T (2023, April 7) Hotel technology - too much of a good thing can be a bad thing - by Thomas Wahl Copyright (C) by Hotel News Resource. https://www.hotelnewsresource.com/article125796.html#:~:text=One%200f%2 Othe%20most%20significant, between %20hotel %20staff%20and%20guests
57.What Is Digital Transformation? | IBM www.ibm.com/topics/digital- transformation.
58 Wynn, M G., & Jones, P (2022) IT strategy in the hotel industry in the digital era Sustainability, 14(17), 10705 https://doi.org/10.3390/su141710705
Direction for future T€S€ATCHh - - G6 1 9311911930193 911191 nh ng hư 86 3585450091177
A survey invitation on using digital platform
Nowadays, most customers tend to make hotel reservations, research hotels or interact with hotel staff via digital platforms Hotels will definitely face a competitive disadvantage if they do not implement digital technologies This survey is conducted within the framework of a study to support the proposal of a digital transformation strategy for the hospitality industry.
Collected data is used only for scientific research purposes Please complete the answers and make sure to submit the form Thank you!
Below are questions about factors that influence the intention to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via digital platform Please indicate your level of agreement in increasing order from 1 to 5.
1 Do you intend to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App in the future?
2 Do you intend to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App more often?
3 Do you intend to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App rather than other platforms?
4 Do you intend to suggest others to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App?
e
A survey invitation on using digital platform
Nowadays, most customers tend to make hotel reservations, research hotels or interact with hotel staff via digital platforms Hotels will definitely face a competitive disadvantage if they do not implement digital technologies This survey is conducted within the framework of a study to support the proposal of a digital transformation strategy for the hospitality industry.
Collected data is used only for scientific research purposes Please complete the answers and make sure to submit the form Thank you!
Below are questions about factors that influence the intention to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via digital platform Please indicate your level of agreement in increasing order from 1 to 5.
1 Do you intend to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App in the future?
2 Do you intend to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App more often?
3 Do you intend to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App rather than other platforms?
4 Do you intend to suggest others to check in/out, book reservations, order services and manage the temperature, lighting, and entertainment in your room via a Mobile App?