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THE INFLUENCE OF INNOVATION ON SUSTAINABILITY OF HOTEL ESTABLISHMENTS

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Product Code: 00009564

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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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