Technology is key to the modern hotel business, especially in the context of emerging markets. While large hotels or chains have enough resources to adopt certain technologies that significantly increase the efficiency of their operations, small local hotels have to rely on a limited number of tools. Information and communication technology (ICT) plays a key role in developing countries’ tourism growth. The Internet allows hotel businesses to build a media presence, attracting tourists from all over the world, as well as collaborating with the government and large hotel businesses to develop infrastructure. Internet communication and e-tourism are affordable and extremely effective tools for emerging markets.
The modern hospitality industry and hotel business, in particular, are actively integrating technology for more efficient operations. Kansakar et al. (2018) identify that the main tensions in the use of technologies in the modern hotel business are the digitization of services and the personification of experience. The main challenge for hotel chains in the near future would be the competencies in “pursuing better training and technology, attaining an enhanced understanding of their guests, creating authentic personalized experiences, maximizing all revenue streams” (Richard, 2017, p. 62). The adoption of new technologies helps hotels around the world maintain a competitive edge and provide guests with the most attractive services. In particular, technologies based on big data analysis can help the hotel business assess customer requirements and requests, which is associated with an increasingly complex demographic of travelers (Camilleri, 2019). It is also important that access to analytical data will allow offering more targeted advertising and better marketing, as well as collaborations with partners and sponsors (Camilleri, 2019). However, ICT plays the most important role in the development of the modern hospitality industry.
ICT provides hotel businesses with many advantages that affect the quality of services provided. However, the most important of these is the “obliteration of traditional barriers, such as time and geographical limitations” (Jaremen, 2016, p. 9). In particular, this aspect is important in the context of developing countries and emerging markets, which can attract tourists using the Internet. Moreover, ICT significantly improves the efficiency of hotel management and reduces operating costs, reducing the complexity and time of transactions (Jaremen, 2016). Adeola and Evans (2019) investigated the impact of ICT technology diffusion and infrastructure development in African content on the tourism industry. They found that these factors were highly positively correlated, resulting in greater interest among tourists visiting hotels in Africa and increased offline interactions. However, in the context of developing countries, this aspect also illustrates the challenges associated with technology adoption.
In particular, for the use of modern technologies in the hotel business, from ICT to artificial intelligence, both economic and technological resources are needed. Expanding into emerging markets is comfortable for large global hotel chains that can adopt a variety of technologies. However, for smaller on-site facilities in developing countries, a limited set of tools are available. Ahmad and Scott (2019) note that major brand hotels with impressive technology budgets in emerging markets can afford to use a variety of modern systems to improve efficiency. At the same time, smaller hotels still conduct their operations manually, but as the larger ones, they use ICT. Agegnehu et al. (2019) emphasize that in Ethiopia, five-star hotels use ICT much more extensively to manage operations and improve efficiency, while three-star hotels mainly recycle them for room sales purposes. This factor identifies that ICT can help hotels with limited resources to overcome technological barriers for development and growth.
Thus, the Internet allows more and more hotel businesses in emerging markets that do not have access to the resources of major brands to create their Internet presence and attract tourists. Tchamy et al. (2020) emphasize that the spread of ICT and, in particular, e-tourism provides tourists in Cameroon with access to search for hotels and events and attractions. Although Cameroon does not use e-commerce as actively as developed countries, in recent years, many sites have offered hotel selection and booking for travelers from all over the world (Tchamy et al., 2020). In turn, more competent use of the capabilities of technologies provides developed countries with the necessary revenues for further infrastructure development. It is also important that ICT provides local hotels with the opportunity to collaborate with larger facilities, which accelerates the adoption of technologies.
Communication with partners and the government is a key opportunity for hotels in developing countries. An important role in this process is played by the government, which implements various programs and initiatives to develop IT and infrastructure in developing countries (Tchamy et al., 2020; Ezzaouia & Bulchand-Gidumal, 2020). Khan et al. (2020) identify that government and policy-making play a critical part in the establishment of tourism and information infrastructure in developing countries. In particular, the policy aimed at national branding, support for small businesses, as well as the preservation of sociocultural and natural resources allows for the stable growth of the tourism industry (Khan et al., 2020). Thus, ICT provides an opportunity to attract tourists to emerging markets, which leads to economic growth and government involvement in infrastructure development.
In general, ICT is the primary technology tool used by hotels in developing countries to attract tourists. This aspect can be justified by the fact that local businesses need first to create a media presence and attract tourists to emerging markets in order to increase revenue and efficiency gradually. Building a media presence for local hotel businesses in developing countries can attract not only tourists but also investors (The hotel and tourism, 2018). It is also important that the presence of larger hotels in the emerging market also positively affects the number of tourists who can pay attention to smaller hotels using the Internet (The hotel and tourism, 2018). Thus, ICT is the main development resource for the hotel business in emerging markets, which does not require extensive investments and is available for organizations with limited budgets.
References
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