ABSTRACT
The study focused on the influence
of innovation on sustainability of hotel establishments in Umuahia, Abia State.
The objectives of the study are; to identify the innovations used in hotel
establishments in the study area, to examine the level of application of
innovations in hotel establishments in the study area, to examine the influence
of the identified innovations on the sustainability of hotel establishments in
the study area and to identify the factors affecting innovation in hotel
establishments in the study area. To achieve the objective of the study, survey research design was
adopted. The researcher adopted primary data in getting the required
information through the use of structured questionnaire. The population of the
study is 38 registered hotels in Umuahia, Abia State with 540 staff strength.
The sample size of the study is 225 after adopting Taro Yamane formula. In
analysis the data, simple regression analysis was used. The findings revealed
that Digital concierge service, customizable hotel bookings, Ai-integrated
hotel rooms, mobile room keys, twitter-activated hotels, free wifi and chatbots
are the innovations used in hotel establishments in the study area, the
findings also revealed that there is high level of application of digital
concierge service, customizable hotel bookings, ai-integrated hotel rooms,
mobile room keys, twitter-activated hotels, free wifi and chatbots in hotel
establishments in the study area. The result of the question one have a grand
mean 3.50, the question two has a grand mean of 3.42, question three has grand
mean of 3.39 and the fourth question has a grand mean of 3.41. The whole
variables in the analysis are accepted. Based on the result, the study
recommends that Hotels should engage in innovations such as customized hotel
bookings, digital concierge, mobile room keys among others in order to enhance
hotel sustainability. The effective management and implementation of innovation
can be an excellent way for hotels to improve service standards, and to create
a competitive advantage.
TABLE OF CONTENTS
CHAPTER 1
INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objective of the
Study
1.4
Research
Questions
1.5
Research Hypotheses
1.6 Significance of the Study
1.7 Scope of the Study
CHAPTER 2
REVIEW OF RELATED LITERATURE
2.1 Conceptual framework
2.1.1 Hotel Establishment
2.1.2 The Concept of Hotel Innovation
2.1.3 Innovations in the Hotel Industry
2.1.4 Influence of Innovation in the Hotel Industry
2.1.5 Marketing Innovation
2.1.6 Sustainability
2.1.7 Influence of Innovation on Sustainability of Hotels
Establishment
2.1.8 Customer Satisfaction
2.1.9 Innovation strategies and performance
2.1.10 The advantages and disadvantages of innovation in the hotel
establishment
2.1.11 Innovation strategy and categories of innovation
2.1.12 Innovation Types in Hospitality Industry
2.1.13 Factors which encourage and responsible for creativity and
innovation within organizations in the
Hospitality Industry:
2.1.14 Human Factor in the Innovation
Process
2.2 Theoretical Framework
2.2.1 The componential theory
2.2.2 Maslow hierarchy of hotel
expectations theory
2.2.3 Theory of reasoned action
2.2.4 Management theory
2.2.5 The Otus theory
2.2.6 Expectancy theory
2.3 Empirical Review
2.4 Summary of Related Literature
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Design
3.3 Population for the Study
3.4 Sampling and Sampling Technique
3.4.1 Sample size
determination
3.4.2. Sampling Technique
3.5 Instrument for Data Collection
3.6 Validation of the Instrument
3.7 Reliability of the
Instrument
3.8 Method of Data Collection
3.9
Method of Data Analysis
CHAPTER 4
RESULTS AND DISCUSSION
4.1
Results
4.1.1
Socio-economic Characteristics
4.2
Analysis of research questions
4.3
Test of hypotheses
4.3
Discussion of Findings
CHAPTER 5
SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1
Summary
5.1.1
Restatement of the Problem
5.1.2 Description of Methods Used
5.1.3
Major Findings
5.2
Conclusion
5.3
Recommendations
5.4 Contribution to knowledge
5.5 Suggestion for Further Studies
REFERENCES
APPENDIX: QUESTIONNAIRE
CHAPTER 1
INTRODUCTION
1.1 Background to the Study
The hotel industry is one of the most important
sectors in the tourism and hospitality industry. The World Tourism organization
(UNWTO) stated that the global number of hotel rooms has grown from 14 million
to 17 million between 1997 to 2005 and the figure is expected to increase
astronomically by the end of 2020. The growth in the hotel industry has been
identified as one of the major facilitators in the development of Tourism and
hospitality industry as a whole. No wonder the governments of some countries
give incentives to hotel developers and owners in order to further enhance
their country’s tourism sector (Page 2009). Of all the various types of
accommodation available to the tourist, the hotel is the biggest and most
visible sub-sector. It is usually viewed traditionally as an establishment
which provides accommodation, food and beverage services on a pay basis to
guests who are only for a short stay. However, the modern perception of a hotel
is more complex than this due to the fact that not all of the hotels provide
services such as food and beverages, at the same time, some hotels even offer
additional services such as conference rooms to their guests. (Cooper, Fletcher,
Fyall, Gilbert and Wanhills, 2008).
Innovation is a critical element in today’s hotel
operations (Sundbo et al., 2007; Martínez-Ros and Orfila-Sintes, 2009). It
certainly helps firms reach and keep higher competitiveness standards (Aldebert
et al., 2011; Hjalager, 2002; Kumar et al., 2008; Pulido et al., 2011; Rodgers,
2007; Zach et al., 2010) as well as growth (Love et al., 2011). In the context
of hotel management, Chen (2011) points out that “innovation appears to be the
only means for an organization to convert change into opportunities and thus
succeed”. In a recent article, Hjalager (2010) describes innovation research in
tourism as a young phenomenon, suggesting several research gaps that should be
tackled in order to get further insights that contribute to consolidating the
theoretical underpinnings of tourism innovation. Specifically, this author,
among others, points out a research gap in tourism innovation that should
attract more analysis: the relationship between innovation actions and their economic
performance. This author explicitly raises the question of examining “what
types of innovation produce what level of results”. In an attempt to add to the
extant body of knowledge on the topic, this article analyzes the effect of
different types of innovations on the hotel industry’s market value.
The innovative activity is multifaceted and covers a
variety of sectors, whereas the innovations can be manifested in many forms.
Foreign and Russian scientists (Schumpeter, 2007) have developed various classifications
of innovations to regulate the concept. According to the classification of
Schumpeter (2007) innovation may refer to: new products, new sources of supply,
new methods of production, the exploitation of new markets and new ways to
organize business (management).
However, all
classification criteria cannot reflect the nature and characteristics of
innovations in hospitality industry in its entirety. We believe that the most
suitable in this regard are the following classification criteria: type of
innovation, depth of changes, continuity, type of novelty to the existing
market and innovation time-to-market (Romanova & Chernova, 2015). It should
be noted, however, that few innovations may be characterized using only one of
these criteria; most innovations manifest two or three.
Innovation emerges as a driver of economic growth and
prosperity in several countries (Stockdale, 2001; Fagerberg and Godinho 2004).
Additionally, innovation is a source of competitive advantage for firms as well
as a key source for improved output performance of services industries (Van
Ark, Broesma, Hertog, 2003). In fact, the services sector plays a fundamental
role in developed economies. The United Nations confirm its relevance by giving
three main reasons for this: “First: Services are the largest productive sector
in most economies growth and efficiency
of services promote competitiveness in the broad sense of the term; Second:
Many services are crucial inputs into products that compete in domestic and
international markets With the rising
importance of information- and knowledge based economy, the share of services
in most activities is growing Third:
Advances in information and communication technologies (ICTs) facilitate trade
in services. (United Nations, 2004, p.95)
Within the services sector, tourism plays an important role in the economy of
various OECD countries as it contributes to their economic growth and provides
employment and income (OECD, 2000). Given its importance and the globalization
of economies, increasing the competitiveness of this sector is fundamental and
the key to increasing its competitiveness lies in innovation. Studies into the services sector have
increased recently (Sundbo 2001, 2007, Sundbo
2007, Gallouj 2002, Schianetz, Kavanagh, Lockington, 2007, Miles 2005,
Hjalager, 2002, Carvalho, 2008). In this context, while several authors
indicate that innovation in services and in manufacturing are closely related,
other authors establish a difference between them (Sundbo 2007, Pires, Sarkar,
Carvalho, (2008).
Sustainability is widely regarded as the key to a
successful business in the 21st century. A hotel is an establishment that
provides paid lodging on a short-term basis. Facilities provided inside a hotel
room may range from a modest-quality mattress in a small room to large suites
with bigger, higher-quality beds, a dresser, a refrigerator and other kitchen
facilities, upholstered chairs, a flat screen television, and en-suite
bathrooms. Small, lower-priced hotels may offer only the most basic guest
services and facilities. Larger, higher-priced hotels may provide additional
guest facilities such as a swimming pool, business centre (with computers,
printers, and other office equipment), childcare, conference and event
facilities, tennis or basketball courts, gymnasium, restaurants, day spa, and
social function services. Hotel rooms are usually numbered (or named in some
smaller hotels and B&Bs) to allow guests to identify their room. Some
boutique, high-end hotels have custom decorated rooms. Some hotels offer meals
as part of a room and board arrangement. In the United Kingdom, a hotel is
required by law to serve food and drinks to all guests within certain stated
hours (Easingwood , 2018).
Sustainability or social responsibility is fast becoming
a prime concern for public and private sectors alike and the hotel industry is
no exception. In simple words, sustainability means that natural ecosystems can
continue to support life and provide resources to meet the needs of the present
and future generations. Evidently, the hotel sector puts increased pressure on
the environment and is demanding on the natural resources. However, the
industry also relies on the same natural environment unspoilt landscapes, sandy
beaches, turquoise waters, glaciers, waterfalls, coral reefs and fresh air; all
of which serve as great tourist attractions. Therefore, there is an inherent
danger that the we might harm the very basis on which hospitality is built.
Over the past few decades, services have played a
critical role in the economies of most industrialized nations (Song et al.,
2009). Innovative technologies and business models have transformed the service
environment (Sorescu et al., 2011). Service innovation “introduces something
new into the way of life, organization, timing and placement of what can
generally be described as the individual and collective processes that relate
to consumers” (Barcet, 2010). Research in service innovation has evolved from a
generic perspective to a demarcation perspective, portraying it as something
that should be differentiated from product innovation and, finally, shifting
into a synthesis perspective (Carlborg et al., 2014). The synthesis perspective
emphasizes the necessity of an integrated approach to innovation that considers
both technological and non-technological aspects. However, studies carried out
into innovation in the hotel sector are still in their infancy. These study
aims to contribute towards creating and developing research into innovation in
the hospitality industry.
Therefore, it is on the backdrop that this
study seeks to investigate influence of innovation on sustainability of hotel
establishments. The study is therefore limited to selected hotels in in
umuahia, Abia States.
1.2 Statement of the Problem
The hotel establishment is characterized by a high
degree of competition (Blum, 2010) where innovation is a key resource to keep
or attain a competitive advantage (Cooper and Edgett, 2017). This sector is
currently underrepresented in the innovation literature and does not receive
much attention from policy makers regarding its innovative capacity. This is
unfortunate since the industry is a vital force for increasing employment in
general, as well as for helping integrate individuals with a foreign background
into society. The industry has also been identified as particularly important
for employment in rural locations (Cánoves et al., 2014) in an era where
urbanization forces dominate the demographic landscape in many advanced
countries.
Hotel establishment are facing increased social and
economic change, and increased competition. Technological developments are also
occurring very rapidly. Continuous renewal and adaptation are required to stay
in business. Bolwijn and Kumpe (2014) describe four patterns of the competition
among companies in the developed economies.
Hotel establishment compete under the pressure of innovativeness,
creativity and innovation in products, services, systems, and work processes
being recognized as a key factor to long-term hotel establishment survival and
success (Mathiesen and Einarsen, 2014).
Nowadays, no one needs to be convinced of the importance of innovation
in a dynamic world of intense global competition, along with fast changing markets
and technologies; the cry ‘Create, innovate or die!’ is a common slogan of
today’s managers (Politis, 2015). Hence, the quest for increased organizational
creativity and innovation in products, services, systems, and work processes is
recognized as a key factor to long-term hotel establishment survival and
success (Mathiesen and Einarsen, 2014). Thus, knowledge about innovation in the
hospitality sector is a keystone in understanding the growth and development of
the sector. It is based on these identified problems that this study is set to
provide a structured and accurate investigation that will set to reveal the influence
of innovation on sustainability of hotel establishments in Umuahia, Abia state.
1.3 Objective of the Study
The main objective of the study is to examine the influence
of innovation on sustainability of hotel establishments in Umuahia, Abia State.
Specific objectives
of the study include;
(i)
to identify the innovations used in hotel establishments in
the study area.
(ii)
to examine the level of application of innovations in hotel
establishments in the study area.
(iii)
to examine the influence of the identified innovations on the
sustainability of hotel establishments in the study area.
(iv)
to identify the factors affecting innovation in hotel
establishments in the study area.
1.6 Research
Questions
The
following research questions guided the study
(i)
what are the innovations used in hotel establishments in the
study area.
(ii)
what is the level of application of innovations in hotel establishments
in the study area?
(iii)
What is the influence of the identified innovations on the
sustainability of hotel establishments in the study area?
(iv)
What are the factors affecting innovation in hotel
establishments in the study area?
1.7
Research Hypotheses
The following research
hypotheses was tested in null form.
H01: Innovations have no significant influence on the
sustainability of hotel establishments in the study area.
1.6
Significance of the Study
This research work will be
significant to, managers of hospitality establishment, owners of hospitality
establishments and scholars
The hotel manager and owner: The findings of the study
will educate the hotel manager and
owner on the use of Artificial intelligence in innovating the services
rendered by to help hoteliers in managing their brands through reviews,
utilizing customer feedback for benchmarking, managing social channels in
real-time, screening negative reviews and more. It will give hotel
establishment a step forward from machine learning in terms of customer support
through chatbots. Technological innovation is set to play the most important
role in ensuring the rebound of this industry to commoditise these technologies
for mass consumption. Customers are expecting greater personalization hence
guest in the hotel, with visual reality’ would be able to experience things
that they might not be able to enjoy in reality
Hotel guest: hotel
guest is the
reason for setting up hotel business and as such the hotel guest satisfaction and guest retentions are a
priority to Hotel management.
Customers are retained as a result of the experience and memory from the
quality service such as the use of 5G Wi-Fi in the hotel because the hotel is
all set to ensure that the experience is vivid and pleasant right from the
start and the stays with customers long after the travel is completed. Superfast
mobile websites, video and images enriched booking experience, apps to control
hotel rooms, real-time customer support website and apps, virtual reality and
more. 5G opens up a world of technology innovation for commoditization
Students
and Scholars: The study will educate students of this noble institution and other
institutions on Creative tourism a panacea for economic sustainability in Abia
state.
It will also serve as a reference material to
researchers and Scholars who would want to research more on a similar topic in
future.
1.7 Scope of
the Study
The study centered on influence of innovation on
sustainability of hotel establishments in Umuahia, Abia State. The geographical
scope is Umuahia Metropolis while the unit scope is staff of some selected
hotel establishments in Umuahia Metropolis
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