Smart Hospitality

The Covid-19 pandemic and path to recovery and innovation

Mladen Mitrović, PhD student at Faculty of Tourism Studies – Turistica, University of Primorska
 
 
HOW TO CITE:
 
Mitrović, M. (2021). The Covid-19 pandemic and path to recovery and innovation. In AIRTH Encyclopedia of Innovation in Tourism and Hospitality. Retrieved: <insert-date>, from http://www.airth.global
 
 
In addition to endangering basic human rights, to live, the Covid-19 virus has dramatically affected many aspects of modern civilization. With numerous measures which have entered into force, such as travel bans, social distancing and isolation, tourism as an industry has suffered and continues to suffer enormous losses. The outbreak of this pandemic is a major shock to the industry. An increasing number of people are losing their jobs, and small and medium-sized enterprises, which make up the majority of the tourism industry, are most affected. States were in a hurry to prepare packages of measures that would enable the functioning of these companies. It is difficult to estimate when the situation will return to the previous one or at least some optimal in which tourism will function without obstacles. There is a growing opinion this is the end of mass tourism and that in the future there will be a focus on sustainable, specialized types of travel where all health and safety measures will be respected. Although the pandemic affected both international and domestic tourism, it is believed that the latter one will have a much faster recovery. The encouragement of domestic tourism is exactly what a large number of countries base the survival of their tourism sector on. The return of trust among tourists to embark on the adventure that the trip brings with it, as well as whether the attitudes of the local population about their arrival to be affirmative, appear as great challenges in the coming period. Urban locations, that until recently were under a real siege by tourists, will have to find a way to make future visits in optimal numbers and with respect to the aforementioned (health and safety) measures, in order to protect lives of tourists, workers and locals. 
 
A lot of experts from the tourism were trying to clarify the situation with providing some predictions about the sector recovery and getting back to the before pandemic level. For example, UNWTO (World Tourism Organization) conduct a global survey among the tourism experts about the period when they are expecting the international tourism recovery. Most of them expect to recovery begin in third quarter of 2021, while returning to the pre-pandemic should not be before 2023. The STR (Smith Travel Research), a worldwide recognized company for the benchmarking in hospitality industry and tourism sector analysis, have organized the research during the February 2021 through their official web page among the travelers around the world about their opinions on future of the hospitality industry and recovery of both international and domestic travels in the post-pandemic time. Based on the results, their desire to travel in a post-pandemic, both domestically and internationally, was at the same level or even higher than before the pandemic started. But, they are very careful to actually start to travel before the pandemic is over. Those two researches are in line speaking about possible recovery scenarios.  
 
As a main drivers of booking accommodation, participants in STR survey highlighted location and pricing/value for money which can be considered encouraging, given that they were important to tourists even before the pandemic. The cancellation policy came in third place, which is not surprising if we look at the current situation, when it is important for potential tourists to have flexibility in making decisions. Speaking specifically about hotel services, the question arose as to how important it is for tourists to reduce contact in consuming meals or minimal room cleaning, which has definitely undergone changes since the onset of the pandemic. However, the respondents did not show much enthusiasm for these changes and it can be said that the percentages of those who consider it important, who do not, and with no preference, are similar.
 
All this reveals that tourists are definitely eager to travel, that domestic tourism is what keeps the industry alive at the moment, but that it will take time for international tourist movements and business travel to recover, as well as returning of hotel occupancy to pre-pandemic level. Flexibility for tourists is important, and there is no uniform attitude on changing basic hotel services in order to reduce risk.
 
Also, the widespread use of technological innovations is very important in order to increase the confidence of tourists that their travel and stay in the accommodation facility is completely safe from the health aspect. They should be considered as important drivers in gaining tourist trust in these hard times. Some of them that have found application in the tourism industry are touchless check-in, robots, ultraviolet (UV) technology, antimicrobial fabric, air ionizer, sanitizing drones, …
 
References
 
https://www.oecd.org/coronavirus/policy-responses/rebuilding-tourism-for-the-future-covid-19-policy-responses-and-recovery-bced9859/
 
https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism
 
https://str.com/data-insights-blog/tourism-after-lockdown-recovery-scenarios
 
https://www.travelweekly.com/Articles/futuristic-technologies-for-safer-travel?utm_source=Nevistas 
 
https://str.com/data-insights-blog/tourism-after-lockdown-guest-expectations-today-and-tomorrow 
 

The Covid-19 pandemic and path to recovery and innovation Read More »

Smart Tourism

Dejan Križaj, Miha Bratec, Peter Kopić, Tadej Rogelja
University of Primorska, Faculty of Tourism Studies – Turistica 
 
HOW TO CITE:
 
Križaj, D, Bratec, M., Kopić, P., Rogelja, T. (2021). Smart Tourism. In AIRTH Encyclopedia of Innovation in Tourism and Hospitality. Retrieved: <insert-date>, from http://www.airth.global
 
 
Smart Tourism followed in the footsteps of the earlier concept of sustainable tourism and quickly established itself as the reference adjective when discussing tourism in politics, economics, and academia. In the latter, the debate has been lively, and although there are many different conceptualizations, academics seem to agree that Smart Tourism is based on the use of novel technologies that improve the quality of visitor and local experiences, while enabling destinations to take steps towards achieving their sustainability goals.
 
However, as it happened in the past with the term “sustainable”, the adjective “smart” seems to be heavily misused when describing the various transformations that tourist destinations and cities are currently facing. Mostly, it dominates the marketing discourse, with many destinations trying to use this “smart” concept because it gives them a competitive advantage over other tourist destinations based on uniqueness and differentiation. 
 
Based on our study, the reality of developing smart solutions within these destinations is mostly still in its infancy. More specifically, we, in detail, analyse: 
 
a) What is the real content of the Smart Tourism projects currently implemented within Europe and supported by substantial EU (European Union) funding? 
b) What are the characteristics of the Smart Projects and what kind of technology solutions are used in them?
c) Can we really see the rapid technological progress in tourism services that the marketers of Smart Destinations promise? 
d) What do the currently implemented projects tell us about the future of Smart Tourism and Smart Destinations?
 
Summary of key findings:
 
Our work differed from most methods used in other studies that rely on the construction of conceptual models, frameworks, or indicator systems based on the evaluation of Smart City or Smart Tourism goals, statements, strategies, and initiatives. The presented study goes a step further and tries to understand which technological innovations exactly were adopted and how they contribute to projects’ smartness. In order to better distinguish between conventional and advanced, interconnected technology, we have placed a special focus on Smart Actionable attributes of the projects analyzed. From what we could perceive in the selected projects, four smart technology trends can be identified: 1) Connectivity and Big Data, 2) Connectivity and Intelligent Algorithms, 3) Big Data and 4) “smart” projects with mainly well-represented technology that does not exploit the Smart Actionable possibilities.
 
In our initial online resource search, we encountered the vast majority of projects that were touted as “smart” but did not address any of the newer aspects of ICT infrastructure, such as interconnectivity and interoperability of integrated technologies. They were therefore excluded from our study, leaving only 35 projects, which we analysed in detail and assigned to the four groups mentioned above. This confirms our preliminary findings that there is a lot of hype and little substance (e.g., smart washing) regarding Smart Tourism projects. This problem stems in part from the fact that there are different, everchanging definitions and meanings of the term Smart Tourism. Subsequently, different stakeholders and entities adopt different meanings and set different priorities based on their viewpoints and schools of thought.
 
 

Smart Tourism Read More »

Revenue management in hotel industry and innovation

Mladen Mitrović, PhD student at Faculty of Tourism Studies – Turistica, University of Primorska

 

HOW TO CITE:
 
Mitrović, M. (2021). Revenue management in hotel industry and innovation. In AIRTH Encyclopedia of Innovation in Tourism and Hospitality. Retrieved: <insert-date>, from http://www.airth.global

 

Revenue management is an area experiencing progressive popularity in the world of the hotel industry. Large hotels and hotel chains around the world have been practicing demand forecasting, market segmentation, performance measurement, dynamic pricing, benchmarking, as well as other processes that together constitute revenue management, with great success for many years. A commonly accepted definition of revenue management is to sell the right product to the right customer, at the right time, for the right price, through the right channel (HOSPA, p. 4).
 
From the historical point of view, back in 1970s, airline industry encountered a problem of filling all empty seats and improving the profitability of their business which led airline companies to introduce revenue management (RM) concept for the first time. After being developed by the airline industry, the RM began its extension in the form of a very successful common business practice within a wide range of industries, for example, in restaurants, telephone operators, hotels, conference centers, golf courses, car rental companies, cruise lines, etc.. A few years later, in 1980s, thanks to Marriot International, this concept was implemented in the hotel industry which resulted in generating around $150 million more than before, only by applying RM techniques.
 
Three essential conditions for RM to be applied:  fixed amount of available resources, the resources sold are perishable and different customers are willing to pay various prices for the same product.
 
In the last few years, concept of RM expanded to total revenue management (TRM). The concept of Total RM could be observed from the point of view that hotels should take into consideration all revenue streams (rooms, food and beverage, parking, spa, golf, retail, meeting space) instead only a room revenue, as a factors of the total profit contribution.
 
Today, a hotel RM is based on dynamic pricing, and traditional approaches in setting prices are no longer enough. Revenue managers need help in order for their work to be efficient on one hand, and on the other to enable them personal satisfaction. Software that relies on artificial intelligence (AI) and machine learning is playing an increasingly important role in this. Hoteliers are able to analyze a large number of data and implement them in such a way as to apply an optimal strategy in their business.
 
Although for a long time hoteliers have been considered slow acceptors of new technologies, it seems that AI-based RM solutions have completely “fascinated” them. By using it, large hotel chains and smaller hoteliers have significantly increased their profitability. Here, in addition to the inevitable historical, other data are used, such as market trends, booking trends, competition prices, inventory control, etc. With all the data, the so-called big data, only the RM jurisdiction is exceeded, and the information obtained is important for other departments in the hotel as well.
 
Certainly, when there is a possibility to obtain a large amount of data, one should be careful. First of all, there is a need to complete the processing of a smaller amount of data first in order to move to a larger number. Also, it is very important not to get lost in all this information that comes from different sides, which means that it should be learned to separate important information from those that are irrelevant. Mastering the so-called big data is definitely not an easy task.  
 
Of course, with the emergence of new quality and functional technological solutions in business practice, there is almost inevitably a debate whether it will completely replace the human factor. When it comes to RM software based on AI, the situation seems pretty clear at this point. They are advanced and helping in making the right tactical decisions, but definitely cannot replace a revenue manager or RM team. They cannot predict everything even when the circumstances are favorable, not to mention extreme situations such as terrorist attacks, natural disasters, or epidemics (one of which we are witnessing – the Covid 19 pandemic). Because of all this, it can be concluded that man is still in charge, and that AI RM software is a significant tool that makes it easier for those responsible to make final decisions.
 
 
References:
 
Ivanov, S. and Zhechev, V. (2012). Hotel revenue management – a critical literature review, TOURISM Review , Vol. 60, No. 2, 2012, 175 -197.
 
Marriott, J. Willard, Jr. and Cross, R. G. (2000). Room at the Revenue Inn. The book of management wisdom: Classic writings by legendary managers, ed. Peter Krass, 199-208. New York: Wiley.
 
Noone, B., Enz, C. and Glassmire, J. (2017). Total Hotel Revenue Management: A Strategic Profit Perspective, Cornell Hospitality Report, Vol. 17, No. 8, 1-15.
 
HOSPA e-book Revenue management, PRACTITIONER SERIES
 
https://www.hotelnewsresource.com/article104903.html
 
https://www.hospitalitynet.org/opinion/4095276.html
 
https://lodgingmagazine.com/data-and-ai-are-simplifying-hotel-revenue-management/
 
https://triometric.net/caught-in-the-big-data-deluge-what-about-mastering-little-data-first/
 

Revenue management in hotel industry and innovation Read More »

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.

These cookies are necessary for the website to function and cannot be switched off in our systems.

In order to use this website we use the following technically required cookies
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all services
Accept all Services