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The changing face of technology has played an integral role in the development of the hotel and restaurant industry. The manuscript investigated the impact that technology has had on the hotel and restaurant industry. A detailed review of the literature regarding the growth of technology in the industry was linked to the development of strategic direction. The manuscript also looked at the strategic analysis methodology for evaluating and taking advantage of current and future technological innovations for the hospitality industry. Identification and implementation of these technologies can help in building a sustainable competitive advantage for hotels and restaurants.
INTRODUCTION
Current economic conditions have had a dramatic, negative financial impact on the hospitality industry (Brandau, 2009). Consumer behavior patterns have been changed for multiple reasons, including high levels of unemployment, a deep recession, and overall fear of what the future holds. Hoteliers and restaurateurs will need to look at various strategic vehicles to build and regain customers. The face of innovation in technology is continually changing. The hotel and restaurant industry needs to take a proactive stance in implementing technological advances, while continually striving to build levels of service quality and guest loyalty (Magnini, Honeycutt, & Hodge, 2003). A 2004 study conducted by the National Restaurant Association stated that 70% of a restaurants business base comes from repeat customers. The same survey asked restaurateurs if it was getting more difficult to maintain customer loyalty. Fifty-two percent of the respondents said yes (Sanson, 2004). Tapping into customers needs through the use of information can be instrumental in building loyalty and gaining competitive advantage (Piccoli, 2008).
Hotels and restaurants are continually competing for employees, locations, and more recently information about customers. As more people are using the Internet there is a high amount of information that is being captured on web server logs (Garver, 2002). Proper extraction of this information coupled with high levels of service is what will help the hotel and restaurant industry build competitive advantage in a troubled economy. An organizations ability to take advantage of external environmental factors will help the firm sustain and grow in economically challenging times (Oparanma, Hamilton & Accra-Jaja, 2009). Piccoli, Spalding, and Ives (2001) stated that organizations need to structure the way they think around how customers think...