CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Technology advancement is typically considered a driver for national development, since it provides among other things, the required assistance for change in all the major sectors of the economy, most specifically in hotels and industrial sectors. It is unarguably the prime source of change, that is, of innovations and adaptations needed for enhancing production methods needed to propel development and growth (Kayode, 2010). According to Walker (2010) technology has an excellent effect on the hospitality sector recently, and this will continue to increase the uses of computers and the growth of information technology as a whole.
Emergence and use of technologies in hospitality markets such as Local Area Wireless Computer Networking (Wi-Fi-hotspot) web service, Close Circuit Televisions (CCTVs), online booking, in-room entertainment system, smoke detector, Liquid Crystal Display (LCDs) and so on. have made it easier for experts to convert, save, manipulate and share data and details both individually and within organizations, small and large, public and private. Technology has become an essential part of human daily tasks that in some cases we hardly notice its impact and has made a significant effect on the way we live, work and play. The way hotel industries provide services to their customers has changed over the past couple of years. Using networking in front office aids so much in strong information throughout the hotels in chain Nwakanma, et.al, (2014).
Hotel managers have come to expect gain from this technology in the form of improved client services and functional efficiency. Wireless technologies have likewise experienced an unmatched growth in spite of the increasing issues about security issues. A few of one of the most considerable information technological applications include using mobile handheld devices, such as personal digital assistants (PDA), tablet PCs, and mobile phones. Furthermore, among one of the most typical wireless technologies affecting the hotel industry is Wi-Fi. This enables hotel customers to access the internet from a bar, restaurant, lobby or guest room. Gatner Group reported that hotels continued to be the prominent Wi-Fi hotspot areas on the planet with more than 60,000 sites. Lots of hotel guests have come to consider their hotel room as a home away from home (Paret, 2011). Because of this they expect hotels to offer a minimum of the same level of options for entertainment as they have at their homes. This increasing level of guest assumptions has brought about a rise of techniques for incorporating customer entertainment technologies into hotel rooms (Beldona, and Cobanoglu, 2010).
According to Buhalis & Law, (2008), ICT is essential in promoting effectiveness and providing firms a competitive advantage. This happens when different facilities of the hotel such as the Central Reservation System (CRS) are well integrated with the Property Management System (PMS), not just greatly increasing operational effectiveness within the company however also bringing a basic change on the planet. This is because the development of the Central Reservation Systems (CRS) in the 1970s; the Global Distribution Systems (GDS) of the 1980s and the internet of the 1990's significantly generating a paradigm shift from the traditional norm of operations (Bulhalis & Law, 2008).
Increasingly, the global market has come to be expanded and diversified, bringing about the high need for Hospitality business and particularly for hotel industry not only creating business opportunities however also transforming the environment into a fierce battleground, (Thuy & Asambadze, 2010; Henry & Lucas,2005). Different studies have shown that firms which take advantage of Information Technology and product differentiation create an atmosphere where ICT has a wonderful effect in the business arena (Burgess, 2000). ICT has likewise improved information available to executives thus supporting decision making (Walsham, 2001).
In summary the overall role of ICT in improving a competitive advantage in the resort market and consequently that of companies is crucial, as companies that produce worth with infotech are pre-destined to be more effective. In spite of this, debate remains to exist regarding whether the efficiency reward is not overemphasized, therefore the need for an investigation into the role of technology in revolutionizing the hospitality industry in Nigeria by using Transcorp Hilton Hotels as a case study.
1.2 Statement of the Problem
In spite of the lots of possible benefits of ICT in the organizational competitiveness, the degree to which ICT has been applied to carve a niche in the hospitality industry still continues to be uncertain. Research has not persuasively established an increase in productivity following the introduction of ICT (Cline & Warner, 1999). A number of explanations have been provided for the above observation. Studies have recommended that the introduction of ICT in improperly run companies does not always enhance productivity, thus there is no competitive advantage observed, whereas introduction in well run companies pays off (Cron & Sobol, 1983). In another study Law & Jogaratman (2005) discovered that hotel decision makers did not recognize the significance of ICT in business exercise consequently ICT was not made use of in high level decision making. Additionally, Paraskevas & Buhalis (2002) explained that managers of independent hotels were reluctant in applying ICT therefore experiencing problems in gaining competitive advantage. Numerous studies have likewise shown that firms which do not take advantage of Information Communication Technology thus product differentiation have little or no effect in the business field as for service delivery and marketing are worried (Burgess, 2000; O'Connor 2008b). According to Kuria, Peter and Alice (2011), the human capital ought to additionally be efficiently managed through training and good staff welfare. As a result, in spite of the drastic improvement of ICT, the significant challenge continuing to be in the absence of innovativeness, as many hotels have not effectively integrated their websites with Property Management System (PMS), significantly reducing the operational effectiveness (Tesone, 2006). In accordance with the above identified, this study sought to find out the role ICT has played in the creation of a competitive advantage in Nigeria's hotel industry.
1.3 Objectives of the Study
The main objective of this study is to examine the role of technology in revolutionizing the hospitality industry in Nigeria by using Transcorp Hilton Hotels as a case study. However, the specific objectives include:
i) To understand the rate of adoption of ICT infrastructure among hoteliers at Transcorp Hilton Hotels.
ii) To determine the impact of ICT on the operations at Transcorp Hilton Hotels
iii) To examine the challenges being faced in the utilization of the ICT at Transcorp Hilton Hotels
1.4 Research Questions
Here are the research questions for this study:
i) What is the rate of adoption of ICT infrastructure among hoteliers at Transcorp Hilton Hotels?
ii) What is the impact of ICT on the operations at Transcorp Hilton Hotels?
iii) What are the challenges being faced in the utilization of the ICT at Transcorp Hilton Hotels?
1.5 Research Hypotheses
Here are the research hypotheses for this study:
i) There is a significant relationship between ICT infrastructure and hoteliers at Transcorp Hilton Hotels.
ii) There is a significant relationship between impact of ICT and the operations at Transcorp Hilton Hotels
1.6 Significance of the Study
This study shows the extent of ICT infrastructure utilization in hospitality industry in order to get a grip of the relationship existing between technological advancement and economic development trend.
This study will benefit the hotel industry by providing critical information to management in deciding on the areas which ICT should be adopted, such as room division or food & beverage division, as well as the specific technologies that would improve hotel performance. It also contributes valuable information to ICT marketing personnel.
The study will also create enough awareness on different types of ICT infrastructures used in hospitality industries today, help manages/stakeholders see ICT–based facilities as a tool that will provide greater competitive advantage or to blunt the advantage enjoyed by its competitors, increase profits/revenue, cut down cost and improve service delivery while doing so, also ease out employees work load, making his /her job easier and faster.
Once managers grasp the importance of ICT infrastructures, it will in return create employment opportunity for graduates in IT and IT experts, who will handle, install manage and train users of these infrastructures in the various hospitality industry that will adopt it.
1.7 Scope of the Study
Although there are various ways in which ICT can be deployed in a hotel, this study will be restricted to the role of technology in revolutionizing the hospitality industry in Nigeria at Transcorp Hilton Hotels.
1.8 Limitations of the Study
The study will consider ICT as a factor external to the hotel and analyze managers perceptions of the way their internal systems should and do respond to the requirements imposed by ICT. For the purpose of this study the internal elements of the hotels, such as corporate culture and working processes, will be considered as a picture-perfect totality which changes in response to the presence of ICT.
