Executive Summary
The paper critically examines the introduction of new service called Mobile Sensor app to the management of Marriott Hotel. The product is a technological base type that incorporates various features that enables tracking of customers’ in-house behaviours, simplifies language barriers, improves understanding of customer priorities, enhances marketing activities for the hospitality brand, increases loyal customer base, and provides customers with reliable information among other benefits. The proposed product has proven impact on customer experience and organizational competitiveness because it offers convenient, intuitive, and seamless online booking services. Also, the customer-friendly app has a platform for language conversion for international tourist and offers all-in-one attention to potential and existing customers of the Hotel. In the context of this paper, service delivery system refers to a business model that incorporates NSD process to provide efficient and quality service to every customer of the hospitality brand. Data-based studies show that service quality and positive customer experience have a direct impact on both short- and long-term business survivability. Although arguable that the provision of quality on-demand services that meet the needs of both potential and loyal customers is practically impossible, the integration of a Mobile Sensor app to Marriott Bonvoy’s technology infrastructure increases chance of creating value for money when required. This paper is structured into three main sections: the introductory section briefly explains the concept of quality service delivery system that incorporates the NSD process; analysis of the environmental section presents theoretical and practical views of services offered by the management of Marriot Hotel, including a critical analysis of its business environment using the PEST analysis and Porter’s models and conclusion, which briefly explains the connectivity between the Hotel services and customers in the mobile sensor app.
- Introduction
The hospitality and tourism industry are in the forefront towards of delivering high-quality services that will seek, create, and provide essentials and added values to their guests. Accordingly, through the provision of speedy, effective, and efficient quality service, hotels can achieve greater and intense customer’s loyalty and satisfaction that will eventually culminate into greater and long-term profitability (Zeithaml & Bitner, 2020). Therefore, to deliver quality and efficient services that will meet the ever-changing needs of customers, hotels and organization need to plan on the various kinds of service and product to offer and ensure the smooth implementation of the actual plan. Additionally, good planning based on PEST (political, economic, social, and technological trend) analysis which also incorporates the NSD process (people, technology, and system) is necessary to maximize results from an efficient, high quality service delivery system that enhances brand equity, customer loyalty, market competitiveness, and long-term profitability (Chebat & Kollias, 2020).
According to Parasuraman et al (2021), quality service delivery system means the structures which include the NSD process (people, technology and system) used for delivering quality services to customers. Based on the scholars’ assertion, good and efficient service delivery system should be consistent with producing several positive outcomes, comprising cost reduction, increase availability of efficient operations, promote service quality and optimize Smart Guess Experience. Arguably, various scholars believed that the aim of service delivery system is to close the gap between customer expectations and customer experience (Armistead, 2020). The NSD process is presumed to be the channel through which service employees attempt to meet the quality standards set by the management (Parasuraman et al, 2021; Zeithaml et al, 2020).
This paper critically examines the introduction of a new service/ product called the Mobile Sensor (PMS) app to Marriott Hotel with several included features that improves understanding of customers’ priorities, simplifies booking of itineraries, and enhances tracking of customer’s in-house behaviour. The intuitive app also grants access to authentic information, improves the brand’s marketing activities, and eliminates language barriers. Interestingly, the app is built with chatbots that provide 24-hour contactless customer support to create a satisfied, loyal customer base and, in turn, strengthen competitive advantages. Therefore, digitalizing the operational service to provide the needed Smart Guess Experience required by the management of Marriott Hotel will certainly increase profitability and shareholders’ wealth maximization (Bitner & Hubbert, 2021; Demirbag et al, 2019).
2.0 Analysis of the business Environment of Marriott Hotel using PEST approach
PEST analysis is a tool for analysing the political, economic, social and technological factors that affect business performance. For example, government policies can reduce an increase profitability, therefore, it is necessary to scan Marriott Hotel’s business environment (Parasuraman et al, 2020).
Figure 1: PEST Analysis
The Author (2023)
Porter’s Five Models and Marriott Hotel
The tourism and hospitality industry are a dynamic service-based domain with increasing growth and expansion rate (Drucker, 2020). Considering that the industry thrives on intent marketing, customer loyalty, and referrals, it is important to also scan Marriott Hotel’s external environment using Porter’s model. The analysis includes five dimensions, competitive rivalry, power of suppliers, power of buyers, the thread of substitution, and the threat of new entry.
Figure 2: Porter’s Five Forces Model
Competitive rivalry – in the Hotel industry, competition is so intense which shows that service differentiation among competitors is relatively low. The market usually indicates high capital cost which pressure competitor to cut down prices except on peak season. Hartline & Jones, 2019).
Power of buyers – the power of buyers in the hospitality industry is so high. There are customers who always purchase bulk rooms for their business, the organizers of conferences cans also influence the prices offered by the hotel to a larger extend (Hartline & Jones, 2019).
Power of suppliers – the power of supplier in the hospitality industry can be categorize as low because the sector is mostly affected by factors of labour. This indicates that there is high demand for qualified and professional personnel. Suppliers do not pressure hotels. (Bowen & Jones, 2021).
New entrant – new entrant into the industry must be conscious of the high capital cost, and adequate use of its potential to maximize the available profit. However, existing hotel like Marriot that already has a brand, reputation and loyal customers can have competitive advantage over the new entrant (Lovelock 2017).
Thread of Substitute – the thread of substitute in the Hotel industry is relatively low. Although, there are substitute such as motel, stay in with friends etc. this thread does not put much pressure to the Hotel management (Zeithaml et al, 2020).
The adoption of modern technology to spread the service delivery is a strategic idea (Parasuraman et al, 2020). Thus, this the area where the product (Mobile Sensor) comes into action. Mobile phones are becoming the constant travel buddy during trips for leisure and business. Therefore, mobile sensor within these devices serves as the perfect strategy to close the communication gap between Marriott Hotel and its growing customer segments. Features included in the mobile sensor are designed to provide life-changing customer experience.
Understanding Customer Priorities
For the management of Marriott Hotel to improve profit and maximize shareholders’ wealth, the management should understand the changing needs of customers and establish real-time solutions. Although it is impossible to meet the needs of every customer and serve them satisfactorily, the introduction of mobile sensor app to Marriott Bonvoy’s service chain can transform results. Therefore, the mobile sensor app is designed to capture real-time data that provides reliable analytics of customers’ interests. The information is further used to create personalized services that significantly increase connection with all customers. Other benefits from the app include display of current offers that have high value, interactive sessions with guests via voice/speech, and intent marketing of various complementary services and prices and more (Lovelock 2017).
Seamless and Speedy Booking of Itineraries.
Securing and booking hotel accommodation can be frustrating and difficult, especially when the service staff are unfriendly, unprofessional, and ignorant of customers’ needs. The customer-friendly app thus helps users to select service and book/pay for Marriott Hotel’s apartments in a seamless manner. By incorporating Mobile Sensor into the hospitality brand’s information communication system (ICT), customers will enjoy some amazing features while browsing through the app to select and pay for the appropriate service that meets their demand. The innovative technology has proven capability for (a) instant booking (b) setting time limit for easy cancellation, and (c) generating receipt for payments received from customers (Galbraith, 2020; Bettencourt & Brown, 2021).
Trace Customers’ in–house Behaviour
Understanding customers’ activities and interests during their stay in the Hotel can be difficult task. However, the integration of a mobile sensor app to the Hotel will enable the management of Marriott Hotel to differentiate between the services offered that are of least and high demand among the customers. This knowledge therefore empowers management to focus on offers that have high demand and improve business performance via Smart Guess experience (Lovelock, 2019).
Providing authorized information about Marriott Hotel
It can be time wasted and increase cost bearing to potential clients when customers usually ask simple questions about the hotel such as, booking prices, furniture and fittings inside the hotel’s rooms, packing space, glossaries, foods and more (Zeithaml et al, 2020). Mobile sensor app can make such easy and friendly to customers. The app is design to deliver all kinds of relevant and authorize information to customers as well as answer every query that they have in mind about the Hotel. The product can also provide notifications to alert customers at least 10 minutes before the check –in and check –out time (Bowen & Jones, 2021).
Simplify Language Barrier to Customers
The management of Marriott Hotel can lose millions of customers especially the international customers who do not speak English wishing to know the availability of rooms and other services (Hartline & Jones, 2019). The application of mobile sensor can enable customers to switch to languages that they are familiar with while communicating their desire demands to the management of the Hotel. This service would be commended by local and international tourist for being user friendly and widely show casting equality amongst societies and cultures. This will facilitate the business growth of Marriott Hotel and create a larger and loyal customers base, especially to those who are not familiar with English language. (Weitz et al, 2019).
Simplifying marketing of the Hotel services
Marketing of the company product can be demanding especially when the management needs to employ staff that will be always in fore front to market the company services to potential customers. However, with the use of Mobile sensor, it can create a personalized platform where the services can be advertised with ease. Different marketing strategies that can promote the innovation of existing service such as, the inclusion of video advertisements and poster like images to convey information about the latest deals that are available (Hartline & Jones, 2019). Flash sales with discounted prices for services that are less in demand can be marketed through the mobile sensor app to increase patronage towards the services (Kumar et al, 2021).
Provide a Loyal Customer Base
Enjoying large customer base in the business of hospitality can provide adequate profit optimization for the management and sustain the business in the long run. By providing platform where customers easily reach out to the management on the kind of services offer and select the appropriate service that meet their need will not only provide sustainable profit for the organization but also create a loyal customers base for the Hotel (Bryk & Raudenbush, 2019).
Touchless service
With the increasing fears about the COVID 19 pandemic, it therefore becomes pertinent that customers meet their needs through the various services offered in the mobile sensor app. Customers can conveniently pay for services in the Hotel without contacting personnel, book in services, check in and out services. This feature in the app will afford potential and loyal customers the desire confident about the management of the Hotel.
Digitalizing operational services
The need to add innovation on the existing product is very paramount to the long run survival of Marriott Hotel, existing service include presentation of nuts, fruits and welcome cards and flowers to potential and loyal customers. Introducing the mobile sensor app, will create additional features to the existing service by including real time room conversations with customers, voice overs and music that keeps the customers on while in the Hotel room. The provision of such service will attract other customers and indeed side line other competitors in the industry, build a strong customer base for the company and increase the overall profit maximization (Hartline & Jones, 2019; Kumar et al, 2021). Innovation and creativity are different words of same coin that need to be addressed by management of Marriott Hotel.
Improving Competitive Advantage
Incorporating mobile sensor into the technology of Marriott Hotel will provide efficient service delivery to customers. This altitude of service delivery will add value to customers demand and improve the competitive edge of the company among other competitors in the same industry. Competitive advantage is key to the sustenance of the long run profitability of the business and increasing shareholder’s wealth maximization (Weitz et al, 2019). Efficient service delivery in the hospitality and tourism industry is key factors to maintain the overall survival of the business. Management of Marriott Hotel is poised to providing adequate and improved services using mobile app to reach out to discerning and potential customers wishing to experience the smart guess service offered by the hotel. Company in the hospitality and tourism sector will always seek ways to overshadow her peers in the business by providing added, creative, and innovative services that will meet the need of both potential and discerning customers. The provision of such services will improve the capability, profit potentials and the overall long-term growth of the business in the face of turbulent world (Kumar et al, 2021; Hartline & Jones, 2019).
The impact of service characteristics on the new service development offered to the management of Marriott Hotel
Intangibility – service intangibility indicates that services cannot be seen or touch. The introduction of mobile sensor negates these features and reduces its impact to low level because customer both loyal and potential can use the service, they can pay for service offered on the platform of the sensor and have a sense of touch about the perceive service delivery of the hotel (Weitz et al, 2019).
Variability – service variability expresses the concept that service quality varies from service provider to the next. The impact of service variability on the new service development offered to the management of Marriott Hotel is high. This indicates that the service varies greatly from other service provided by similar organisation within the same industry.
Inseparability – the concept of service inseparability opined that the production and consumption of service cannot be separated from the provider of that service, it also explains that a customer is physically participating in the consumption of the service (Kumar et al, 2021).. The service inseparability has a medium impact on the mobile sensor service such that the service is not totally tied to the users and provided of the service. Booking of Hotel rooms and relaxation can be perfected on the service device by a proxy. The product allows for flexibility and users friendly.
Perishability – the concept of service perishability refers to the fact that business owners cannot store, return or resell service capacities. Various features offered on the platform of mobile sensor indicates that existing service can be resell to potential and loyal customers at different intervals, therefore, the impact of such is approximately low. The efficacy of this service will provide long term profit to the organization.
Access – service access as define by authors indicates whether the service provided for customers is customer friendly and easy to access. Accessibility of the newly introduce service development to the hotel is high. The product offered easy accessibility and is users friendly. It means that customers can easily interface with the service and pay for their desire demand as and when require. Customers at the convenient of their houses, book, inquire and pay for the Hotel service provided on the mobile sensor app (Jossey-Bass & Gibson, 2019).
Underpinning Service Delivery theories
Service delivery system is a key factor to the hospitality and tourism sector, management of hotel needs to key into the new technological trend and abreast with its dynamic features to maximize profit and sustain the long run survival of the business. Arguably, various theories and hypothesis have been synthesized by different scholars for and against the significance of service delivery system while incorporating the NSD processes (Ellinger et al, 2019).
Karmin’s theory of customer’s service opined that the value of quality customer service is very significant to the short and long run survival of the business. Accordingly, it is world of service and that company survival in the long run are those already closing the gap on smart guess experience through the delivery of efficient customer service (Kumar et al, 2021).
Jossey-Bass and Gibson (2019) examined customer satisfaction as the perception in line with its comparison between their experience and expectations. The theory also believed that customer’s loyalty comes from the quality of service received. Bitner and Hubbert (2021) argue that quality service is satisfactory when expectations of quality service are met. Also, Zeithaml and Bitner (2020) opined that long waiting times in service delivery shows negligence of customer-oriented, value-based business approach. This will lower the expectation of customers and patronization of the company’s product.
3.0 Conclusion
There are more benefits than risks from using this newly introduced technology-driven service to promote Marriott Hotel brand (Kumar et al, 2021). An investment in the development of this mobile app will strengthen direct link and communication with prospective and existing customers. By increasing connectivity and engagement with customers, the product will deliver competitiveness and sustainable growth. Also, Marriott Hotel owners can increase short- and long-term profitability and maintain customers’ loyalty within the hospitality and tourism business domain by integrating the proposed customer-friendly app (Ellinger et al, 2019).
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