A REVIEW EXAMINING ADOPTION OF SMART TECHNOLOGY IN HOTEL INDUSTRY

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EXAMINING THE ADOPTION OF SMART TECHNOLOGY IN HOTEL INDUSTRY

ABSTRACT

The adoption of smart technology has revolutionized the global hospitality industry, offering enhanced customer experiences, operational efficiency, and competitive advantages. This study examines the adoption of smart technology in the hotel industry, focusing on its drivers, challenges, and implications for service delivery and customer satisfaction. The research utilizes a mixed-methods approach, combining quantitative surveys with qualitative interviews conducted among hotel managers, staff, and customers in select urban and semi-urban areas. Key findings reveal that the primary drivers of smart technology adoption include customer demand for convenience, the need to streamline operations, and competitive market pressures. However, challenges such as high implementation costs, inadequate technical expertise, and data security concerns hinder widespread adoption.

The study identifies the most commonly adopted smart technologies, including automated check-in systems, smart room controls, AI-driven chatbots, and data analytics tools, and evaluates their impact on operational efficiency and guest satisfaction. Results indicate a significant positive correlation between the use of smart technology and customer satisfaction, particularly in areas such as personalized services and seamless transactions. Additionally, the research highlights the importance of training and capacity building for hotel staff to maximize the benefits of smart technology.

The study concludes by recommending strategic frameworks for integrating smart technology into hotel operations, emphasizing the need for investment in infrastructure, cybersecurity measures, and continuous employee training. These findings provide valuable insights for hotel operators, policymakers, and technology developers aiming to harness the full potential of smart technology to transform the hospitality sector.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The global hotel industry has undergone significant transformations driven by rapid technological advancements. Among these changes, the adoption of smart technology has emerged as a critical factor in enhancing operational efficiency, customer satisfaction, and overall competitiveness. Smart technology encompasses interconnected devices, systems, and applications that utilize data-driven processes to deliver personalized and efficient services (Lee et al., 2020). In recent years, technologies such as artificial intelligence (AI), the Internet of Things (IoT), and big data analytics have been widely integrated into hotel operations, transforming the guest experience and redefining service delivery models.

The increasing demand for personalized and seamless services has led hotels to adopt innovations such as automated check-in systems, smart room controls, voice-activated devices, and AI-driven chatbots (Gretzel et al., 2019). These technologies not only enhance customer experiences but also enable hotels to optimize resource allocation, reduce operational costs, and achieve sustainability goals. However, the pace of adoption varies significantly across regions and hotel categories due to factors such as financial constraints, technical expertise, and consumer readiness.

In Nigeria, the hotel industry is a critical component of the tourism and hospitality sector, contributing significantly to economic growth and employment. However, the adoption of smart technology in Nigerian hotels remains relatively low compared to global trends, largely due to infrastructural and economic challenges (Adeoye & Adeola, 2021). As the demand for technologically advanced services grows among domestic and international travelers, understanding the factors influencing smart technology adoption becomes essential for the industry’s growth and competitiveness.

1.2 Statement of the Problem

Despite the numerous benefits associated with smart technology, its adoption in the hotel industry faces several challenges. Hotels in developing countries like Nigeria encounter barriers such as high implementation costs, limited access to reliable internet infrastructure, and a lack of technical expertise among staff. These challenges hinder the ability of hotels to fully leverage smart technology for enhanced service delivery and operational efficiency (Chukwuma & Okoro, 2020).

Furthermore, there is limited empirical research on the adoption of smart technology in the Nigerian hotel industry, particularly concerning the drivers, barriers, and impacts of this innovation. Without a clear understanding of these factors, hotel operators may struggle to align their technological investments with customer expectations and market demands. This study seeks to bridge this knowledge gap by examining the adoption of smart technology in the hotel industry, focusing on its implications for service delivery, customer satisfaction, and operational performance.

1.3 Objectives of the Study

The main objective of this study is to examine the adoption of smart technology in the hotel industry. The specific objectives are:

To identify the types of smart technologies currently adopted in the hotel industry.

To explore the factors driving the adoption of smart technology in hotels.

To assess the challenges faced by hotels in implementing smart technology.

To evaluate the impact of smart technology on service delivery and customer satisfaction.

To recommend strategies for enhancing the adoption of smart technology in the hotel industry.

1.4 Research Questions

The study aims to address the following research questions:

What types of smart technologies are currently adopted in the hotel industry?

What factors drive the adoption of smart technology in hotels?

What challenges do hotels face in implementing smart technology?

How does smart technology impact service delivery and customer satisfaction?

What strategies can enhance the adoption of smart technology in the hotel industry?

1.5 Significance of the Study

This study is significant for several reasons. First, it contributes to the growing body of knowledge on technology adoption in the hospitality sector, providing insights into the unique challenges and opportunities faced by hotels in Nigeria. Second, the findings will help hotel operators and managers make informed decisions regarding the integration of smart technology into their operations, thereby improving service delivery and customer satisfaction.

Additionally, the study will inform policymakers and stakeholders in the hospitality industry on the infrastructural and regulatory support needed to facilitate technology adoption. By identifying best practices and strategies for overcoming adoption barriers, this research can contribute to the sustainable development of the hotel industry in Nigeria and beyond.

1.6 Scope of the Study

The study focuses on the adoption of smart technology in the hotel industry, with particular attention to hotels operating in urban and semi-urban areas of Nigeria. It examines the types of technologies adopted, the drivers and barriers to adoption, and the impact of these technologies on service delivery and customer satisfaction. The study covers hotel categories ranging from budget to luxury establishments, providing a comprehensive analysis of the industry’s technological landscape.

1.7 Definition of Key Terms

Smart Technology: Interconnected devices, systems, and applications that utilize data-driven processes to deliver efficient and personalized services.

Hotel Industry: The sector of the economy that provides lodging, dining, and other hospitality services to travelers and guests.

Adoption: The process by which an individual or organization begins to use a new technology or innovation.

Service Delivery: The process of providing services to customers, including the quality and efficiency of these services.

Customer Satisfaction: The level of contentment experienced by customers based on the quality of services received.

1.8 Organization of the Study

This study is organized into five chapters. Chapter One introduces the study, including the background, problem statement, objectives, research questions, significance, scope, and definitions of key terms. Chapter Two reviews relevant literature on smart technology adoption in the hotel industry. Chapter Three outlines the research methodology, including the study design, population, sampling techniques, and data collection methods. Chapter Four presents the findings and discussion, while Chapter Five concludes the study with a summary, recommendations, and implications for future research.

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