Abstract

The purpose of this paper is to determine how technology can assist hotels in improving the relationship they have with guests and enhancing customer loyalty. The paper also discusses the knowledge customers have regarding technology in hotels and if this knowledge facilitates the hotel reach in positive outcomes.

This study is based on a pragmatism philosophy and descriptive research design. The analysis is based on a survey of approximately 100 hotel users in London, using an online questionnaire of about 43 questions. The participants have stayed at least one time in a London hotel, and their responses are based for most of them on their previous hotel experience.

The study findings were the willingness for participants to switch to the competition if prices of their preferred hotel increase. Also, this study confirms that the guest contact service for the western population is an important factor in the pre-arrival contact.   

This study will contribute to the existing research and literature on technology and relationship management in the hotel industry. It will help marketers and managers who are still sceptic of technology benefits on guests’ journey in a hotel. The study will encourage hotel managers to use more technology that improves customer satisfaction and increases customer loyalty.

Keywords: Information Communication Technology; hotel industry, customer relationship management, relationship marketing, relationship quality, customer loyalty.

Table of Contents

I.      Introduction. 5

a.      Background to the organisation and the problem.. 5

b.      Research aim and objectives. 6

II.         Literature review.. 7

1.      Hotel Industry. 7

2.      Information Communication Technology. 9

3.      Customer Relationship Management 11

4.      Customer Loyalty. 14

a.      Conceptual framework and hypotheses development 15

b.      Hypotheses development 15

c.      Hypothesis summary. 16

III.       Research design and methods. 17

a.      Research design. 17

b.      Primary data. 17

c.      Research methods. 17

d.      Data collection and sampling. 18

e.      Ethics approval 19

f.      Limitations. 19

IV.       Results and analysis. 20

a.      Demographic statistics. 20

b. Scales’ reliability analysis. 22

c. Correlational analysis. 22

d. Regression analysis. 23

e. Descriptive analysis. 24

1)     Results from Survey. 24

V.     Conclusions, Research limitations and recommendations. 29

VI.       References. 30

VII.      Appendices. 35

1.      Ethical form.. 35

2.      Survey setup. 38

3.      Online survey questions. 39

3.      Demographic data finding. 55

4.      Crosstabulation. 60

5.      Frequencies analysis. 61

6.      Factor analysis. 62

7.      Reliability. 63

8.      Regression analysis on SPSS   63

9.      Correlations analysis. 63

      I.           Introduction 

a.      Background to the organisation and the problem

Technology takes an essential place in today world and different industries sector. Hotels use technology to assist in understanding customers’ needs and want but also gain a competitive advantage. Even guests themself are surrounded by technology in their personal life like at home with Smart tv, machines that control electricity and security system at a distance or work with different software, more importantly, internet that connect almost everything to everyone (Neuhofer, Buhalis and Ladkin, 2015). One could say that nowadays it is difficult for people to travel somewhere where technology and the internet are not available. Therefore, one of the first criteria for some hotel guests will be access to the internet. This view can be tested by asking if hotels using in-room technologies can influence customers’ hotel choice. One could say that the use of technology for a hotel needs to be beneficial to the organisation in different ways for profitability. Hence the possibility for technology to drive customer loyalty. There

Past research has shown that the tourism industry has evolved significantly since the adoption of Information Communication Technology (ICT). Starting with Computers Reservations Systems (CRS) in 1970, Global distribution Systems (GDS) in the 1980 and, the internet in 1990 (Buhalis, 1998; Neuhofer, Buhalis and Ladkin, 2015). The main benefits the industry gain from ICT are as follow: enhance their competitive advantage (Buhalis, 1998; (Ham, Gon Kim and Jeong, 2005); productivity; improve operation management (Siguaw, Enz and Namasivayam, 2000); differentiation; support customer satisfaction; profitability and developing a strategy (Lee, Barker and Kandampully, 2003).

Despite the effort the hotel industry has put in the last past years of using ICT in all departments, hotels need to increase and adapt their technologies to their target market to be more specific in-service offering (Net, 2020). Using ICT in every strategic area is a response to the changes in customer behaviours. Eventually, customer needs change over the years alongside technologies that become faster, stronger, and smaller. Therefore, hotels will need to offer personalised services to combine with new technologies to facilitate the process (Neuhofer, Buhalis and Ladkin, 2015). Technology has permitted organisations to change how they do things, such as revolutionised human experience, customer experience, tourism (Rouse, 2019) and organisation tactical and operational management.

Some organisations use technologies to their advantage by using intelligent technologies that match their needs and resolve their specific problems. By consequence, they are embracing technology by using smart technologies. Neuhofer, Buhalis and Ladkin, 2013 study reveals that using technologies only is not enough, but customer participation to guarantee the success of outstanding and personalised service is necessary to take their experience to another level. Utilising innovative technology is a more customer-centric strategy the company has chosen (Buhalis and Law, 2008; Neuhofer, Buhalis and Ladkin, 2015). I.T. assists customers and encourages them to be actors of their experience in hotels benefits the firms by increasing their competitive advantage and profitability generated by customers retention.

Siguaw, Enz and Namasivayam, 2000 studies have concluded that hotels are using technologies to focus on improving guest services, and the type of hotel will determine the technology used. Hotel with fewer standards will use a small number of technologies, and the higher the category, the more sophisticated technologies they will be using. That confirms that the type of technology used by hotels will depend on different variables such as the hotel localisation, their target market, and hotels type. Although (Jaremen, 2016) studies found that one of the most important benefits in implementing ICT in hotels is to facilitate service quality and the speed of customer service.    

The quality of service provided by hotels enhance customer satisfaction that is then recognised by gaining customer loyalty (Lee, Barker and Kandampully, 2003). Hotels assure services quality throughout all their department as they come across customers’ journey. Therefore, technologies will empower employees with all information necessary to deliver good service that enhances customer experience. The literature recognised ICT as an essential evolution for the tourism industry and especially in the hotel sector due to the intangibility and perishability of its products offering (Dwyer and Forsyth, 2006; Jaremen, 2016) 

b.       Research aims and objectives.

This study aims to determine if the use of technology in a hotel can improve the relationship quality between a hotel and its guests, which led to positive outcomes for both parties.

1. The objective is to understand the effect technology has on hotel guests’ stay and the factors hotels can use to improve their journey.

• The objective is to understand how each factor is connected to positive outcomes such as repeat purchase, word of mouth, and customer loyalty.

• The objective is to evaluate the importance of using technology as one of the main factors that benefit an entire organisation.

The research questions of this study are as follow:

1. To what extent technology supports hotel in adding values to their guests?
2. How can technology improve hotel relationship with customers?   
3. How can technology drive customer loyalty?

The study results will contribute to the existing research on technology and relationship management in the hotel industry. It would be helpful for marketers and managers who are sceptic of technology benefits on guests’ journey at hotels.  

This paper is constructed as follow: Starting with Chapter 1 for the introduction, then Chapter 2 the literature review with the hotel industry in general, information communication technology, customer relationship management, relationship quality, and customer loyalty. Chapter 3 research design and method, Chapter 4 result and analysis, finally Chapter 5 conclusion.  

    II.           Literature review

The literature review part will focus on revising the existent academic literature of the subject to develop the researcher understanding and identify any gap.  The literature will be as follow: (1) the hotel industry, (2) Information Communication Technology section that gives some responses to the research question one. (3) Customer Relationship Management section responds to question two of the research, and (4) Customer Loyalty section for question three.

1.      Hotel Industry

The hotel industry recognised as the sector that does not take too seriously the benefits of using technology; most hotels do not use technology to its full advantages. As a result, they support employees for better efficiency, generate loyal customers, and retain customers, thereby gaining competitive advantages and increasing profitability (Law and Jogaratnam, 2005). According to Law and Jogaratnam research, hotels in the U.K. are not making full use of I.T., especially when comparing hotels to other industries in implementing new technology (Siguaw, Enz and Namasivayam, 2000). Despite the rise of customer demand and technology application expectations (Neuhofer, Buhalis and Ladkin, 2015; Jaremen, 2016).

Initially, the main goal for hotels is to provide good quality of service to their guests at all times. In the hospitality industry, hotels have the expertise to deliver superior quality of services which can add value to their product offering (Jaremen, 2016). Therefore, all service delivery and tools that contribute to enhancing a better quality of services are welcome (Lee, Barker and Kandampully, 2003). However, with the sizeable competitive market and easy access to the internet, customers have many available choices. Plus, the various hotels’ categories, from 2 to 5 stars hotels that offer additional services, guests are looking for the right balance between service provided, experience gain through product consumption, and meaningful connexion with hotels that evolve with their time. Therefore, hotels include technology in their service and product offering to support their customers’ demands and be successful in their domain. Although the intensity of ICT implementation will differ depending on the type of hotel (independent or chain), hotel category, location, and customers profile base (Siguaw, Enz and Namasivayam, 2000).

Nevertheless, the hotels’ business strategy (customer service, revenue enhancement or employee productivity) will determine their approach to ICT use in their hotel.  Others try to reduce their prices as a strategy to gain more customer and growth in their market share, even if this strategy might not last for the long term. One can argue that a business does not have to choose only one method but can use a mixed practice that includes only two approaches.

Hotel companies are the alliance of services and experiences industry which require specific and complex I.T. tools to manage the flawless operation of the organisation (Dwyer and Forsyth, 2006). Tools like specific programme and software have permitted to deliver better customer service and organisation at the operation and managerial level. Systems like programme management systems (PMSs) that support reservation and housekeeping employees. On the other hand, the global distribution system (GDS), the central reservation system (CRS) and the internet allow customers to have up to date information about the hotel. A great example of a programme uses in the hotel industry where customers’ information is stock, reuse, and centralised is the HGRM Happy Guest Relationship management system (Neuhofer, Buhalis and Ladkin, 2015). A platform that helps all departments retrieve customer information and interact with them.  

Another factor to consider is the locality of hotels that offer a specific type of technologies to their customers. Depending on the hotel’s location, technology application will be more critical in particular areas like hotels located in the city centre where business guests require more in-room technologies than in agglomeration with resort hotels where more tourist guests are looking for entertainment. These decisions to focus on technology depending on the hotel localisation remain to the hotel management decision. However, this does not guarantee that any guests can enjoy and appreciate technologies usage in hotels.

2.      Information Communication Technology

At the start, technology identified as the key to productivity in the manufacturing industry, but later, this belief was extended to the value technology can bring to consumers, along with its contribution to innovation in service delivery. As a result, academic and professional give more attention to the benefits technologies can have on service organisations (Law and Jogaratnam, 2005; Dwyer and Forsyth, 2006; Neuhofer, Buhalis and Ladkin, 2015; Jaremen, 2016; Ilieva, 2017). In recent years, information communication technology (ICT) has been implemented in the hotel industry to distribute information throughout different departments such as room reservation system, inventory system, wireless internet, emails, procurement, electronic transaction, and hotel’s websites. The ability to collect, store, retrieve meaningful information about a customer has empowered employees to make decisions without manager supervision (Lee, Barker and Kandampully, 2003).

Different studies demonstrate the importance of ICT application in hotels, especially at the operation and management level (Lee, Barker and Kandampully, 2003; Sirirak, Islam and Ba Khang, 2011). The two main reasons hotel managers implement ICT are to reduce operation cost and improve employee performance than, by consequence, increase their market share and enhance customer satisfaction. Sirirak, Islam and Ba Khang, 2011 demonstrate that ICT also positively relates to performance. For example, Sirirak study of ICT adoption shows that ICT does not require only to be available but also to be integrated into the hotel to enhance operational productivity. However, having only ICT availability and integration are insufficient to generate customer satisfaction. The benefits of ICT adoption will extend to customer satisfaction only when ICT usage in the room increases. It is worth pointing that if the hotels’ customers do not use in-room technology, ICT is unnecessary.

Organisations appreciate ICT advantage such as the value technology brings; enhance service quality, support service recovery, improve efficiency, and convenience, enhance customer firm relationship, augment the quality value of loyalty chain, competitive advantage. ICT also reduces costs in different domains such as collecting information, transactions, and communications costs. Employees also have some benefits like improving skills, delivering superior services, effectiveness, empowering members and enhancing service offers that enhances customer loyalty. Technology gives employees the ability to make an immediate decision without always waiting for manager approval. ICT also have its disadvantages to name a few: computer tend to be used to replace paperwork function (Law and Jogaratnam, 2005) to see the benefits managers need to make full use of it; cost association with installation, maintenance, and training. On the other hand, one worries about the misuse of technology to the point it could replace people in hotels when technology should only be used as a support to enhance superior customer services.

ICT can also benefit many other actors than only the hotel, starting with shareholders like customers, suppliers, and collaborators. Customers benefit from ICT, which are available to them and the technology that assists employees in delivering superior customer services. For example, mobile technology is one of the most critical technology in customer lives, allowing them to interact with the hotel (Ilieva, 2017). Nowadays, people always have their mobile phone available to hand, their use it to guide them when travelling to different places. Hence, businesses try to focus on technologies embedded in customers’ lifestyles to facilitate their integration and acceptance. Customers demand more and more services supported by technology, and organisation response to fulfil this need is not entirely constant (Lee, Barker and Kandampully, 2003; Law and Jogaratnam, 2005; Neuhofer, Buhalis and Ladkin, 2015; Jaremen, 2016). Customers have high expectation from marketer to use technology wisely in a sense it enables them to personalise offers and customise customers’ experiences (Neuhofer, Buhalis and Ladkin, 2015). ICT can at the same time encourage customers to participate in the creation of a more personalised experience. In the current days, people want more than only buy a product or service; in addition, they want to enjoy the positive experience generated by the consumption of this product or service (Neuhofer, Buhalis and Ladkin, 2015). To maximise customer experience, hotels make use of technology to their advantage. Hence the importance of collecting, selecting, and evaluating data is always necessary to deliver personalised customers services. Therefore, the need to access data information from hotels and a third party are crucial (Dwyer and Forsyth, 2006).

Customers have high expectations from companies to implement ICT in their businesses, particularly in the hotel industry, due to all the departments’ complexity and connexion. A service and experience industry that requires specific I.T. software that transmits precisely all information (Dwyer and Forsyth, 2006) to guests like computers, email, internet, fax, printers, voicemail, technical I.T. applications. ICT can enhance good service quality and experience (Neuhofer, Buhalis and Ladkin, 2015) and allows hotels and consumers to communicate. The internet will connect hotels to their consumers, an opportunity to exchange valuable information such as positive review from their previous stay. The internet empowers guests and makes it difficult for hotels to under-deliver the most demanding technology customers require when staying in modern hotels (Buhalis and Law, 2008). As a lot of information is available online, customers come with high expectations regarding technology availability. Therefore, customers can use their knowledge of technology available on the market to visualise the perfect experience and collect information that will influence their hotel choice.

One way hotels can anticipate customers need and improve their experience is to allow them to share their preferences before arrival via the hotel ICT software accessible to all employees. Consequently, constant contact with customers and up-to-date information is required to provide good customer service at the right time (Neuhofer, Buhalis and Ladkin, 2015). Technology is essential for hotels as it allows them to offer new services, improve their current offering, maximise guest experience, and improve customer relationships that generate more loyal customers. One could say that technology has changed the way organisation do things in the hospitality industry. The tourism industry has been transformed mainly due to the evolution of the internet, electronic channel that customers have access and mobile technology (Dwyer and Forsyth, 2006). For example, a better organisation of the industry structure, change of the business model, internal and external communication, and customer service will collect accurate information. (Lee, Barker and Kandampully, 2003; Law and Jogaratnam, 2005; Dwyer and Forsyth, 2006).

3.      Customer Relationship Management

Customer relationship management (CRM) defines as the relationship between a company and its customers. “CRM can also be defined as the management approach that involves identifying, attracting, developing and maintaining successful customer relationships over time to increase retention of profitable customers” (Bradshaw and Brash, 2001; Massey et al., 2001). Organisations work hard to maintain this relationship to know as much about the customer; through this relationship, collected information used in the future with tailored offers. Except for ordering information, all internal resources like (people, processes, technologies) are used in harmony to respond to customer’s needs (Mohammed and Rashid, 2012). Particularly useful considering the amount of data hotels need to gather about customers. Enhance customer relationship management aims to increase customers satisfaction and loyalty when offering a variety of customised services that match everyone needs.

This technology permits organisations to stay up to date with the information that concerns each customer. For example, when hotels make technology available for guests to update their data, such as their latest phone number or preferences for a specific bedroom. This data is entered or contacted to other systems once a customer gets an employee to any of its touchpoints (Email, phone, social media, sales, traditional or modern marketing). For this information to be accurate, customers proactivity and employee’s motivation to retrieve up to date information as much as possible is required.

CRM is more than a way to run a business but a strategy. This system enables hotels to achieve high revenue, profitability, increase customer satisfaction, reduce cost, have a better insight that helps in decision making, access to simple processes (Milović, 2012). These benefits make CRM a crucial tool that enhances business performance with all the information it detains, ideal for a customer-focused business strategy. CRM helps to reunite all database from different sources to one place where marketing and sales can coordinate their actions toward a targeted market. This tool will connect all the front office and back-office database to one specific area where all employees can have access (Chen and Popovich, 2003; Mohammed and Rashid, 2012). CRM contributed to some improvements for organisations such as ordering from suppliers, dealing with customer complaints and preferences, and track historical performance. All have been more efficient with technology in the hospitality industry (18 Tourism information technology).

Customer relationship management focus is the customer, and to be successful, the firm that provides the service or product will need to create a healthy and trustworthy relationship with them (Mohammed and Rashid, 2012). Implementation of CRM can benefit organisations, such as better market segmentation that can increase sales, adequate customisation of products and services to the right target market. A meaningful relationship with customers is the key to generate loyal customers who are more profitable than non-loyal customers (Mohammed and Rashid, 2012). A good relationship will allow them to gather data that will help understand the customer, permitting appropriate responses, and satisfying their needs and meeting even exceed their expectations. As a result, CRM will increase customer satisfaction and loyalty by offering more service or product options for personalised customer experiences. Also, reduce costs with better insight and decision making (Milović, 2012; Mohammed and Rashid, 2012). Therefore, CRM focuses on customer orientation that enhances business performance. Researchers demonstrate the relationship between CRM and hotel performance. Despite the excellent knowledge and skill of a human being, technology can play a big part in collecting, stocking, and analysing customer data faster and efficiently using software, warehousing, and data mining. These technologies will connect all the front office and back-office database to one specific where all employees can have access (Chen and Popovich, 2003).

• Relationship marketing

Berry 1983 defined relationship marketing (R.M.) as attracting, maintaining and in a multi-service organisation, enhancing customers relationship. Like what (Kim, Han, and Lee, 2001) explain, relationship marketing is the relationship a firm creates and maintains for long-term customers, which can benefit both parties. To finally result in customer loyalty, firms use all the tools necessary to fulfil customer needs while keeping their promises—the key to maintaining and enhancing relationship marketing (Oly Ndubisi, 2007). 

Marketing has for a long-time seen as transactional marketing, then, 20 years later, moved to a relational approach. The idea is to stay away from one transaction and create a more meaningful relationship where trust and commitment are grounded. The changes in marketing concept influenced by human nature. The relationships that provide mutual benefits, deep connections, and customer values (Hastings and Saren, 2003). It is also a long-lasting process that firms integrate into their marketing strategy to meet customers’ and stakeholders’ needs.

Relationship marketing derived from service marketing with many studies done in different sectors such as banking, insurance (Kim, Han, and Lee, 2001), retailing and healthcare. Hence, the hospitality industry is one of the industries where relationship marketing is mainly adopted. They deliver multiple services, provided by different contacts from the same company and often face to face approaches, unlike in manufacture (Buttle, 1996). As a service industry, hotels can illustrate these three different parts: “before service, in service, and after service” (Kim, Han and Lee, 2001). Throughout these three sections, organisations are looking to maintain a good relationship with their customers at all levels. These will, by consequence, creates mutual rewards for firms and customers. Consequently, relationship marketing will fill in the gap between companies and customers created by the mass market and social media.

The goal is to understand customer’s needs better, treat them as service partners, and employees will use initiatives to meet buyers’ and sellers’ needs, especially with valued customers. Understanding customer needs makes only sense in the long-term run. During this time, firms will have enough opportunities to create, improve, increase customers’ satisfaction, gain more loyal customers, reputation upgrades to a company that offers an outstanding quality of services, and increase profitability (Evans and Laskin, 1994). 

A theory in the literature identifies relationship marketing foundation through four different variables (Oly Ndubisi, 2007): trust, commitment, communication, and conflict handling. To result in having all the variables linked to customer loyalty. In other words, the variables represent a contract that customers and firms can hardly break as once all four variables are present in a relationship, it will satisfy both parties to go toward a balanced relationship, therefore, a loyal customer. The four variables make customers confident so, willing to deal with the same provider again and again. Customer’s commitment is shown when they are reluctant to move to the competition, and over time there are less sensitive to the same price increase (Kim, Han, and Lee, 2001). Their study aims to guide hotel managers to effectively build relationship marketing strategy activities to increase trust and guests’ satisfaction and consequent greater customer loyalty and profitability. Kim, Han, and Lee argue that a high level of trust and satisfaction will result in a high level of commitment toward the hotel.    

Relationship marketing can have many benefits for the firms, such as a proactive service attitude, customised service delivery, reduced risk, social benefits, and reduced cost from technology usage that allow the firm to enjoy relationship marketing peacefully. ICT allows business to target a specific individual for effective sales, so return to the mass media approach. R.M. enable organisms to detect the different types of customers they can encounter, such as unprofitable ones who are there for a moment and will not spend much in your business; loyalty-prone customers who will recommend the company to others and frequently use your services as knowing the value-added and quality of service they will receive; lastly, the deal prone who comes only when there are promotions. Over time, marketing activities to maintain the relationship between a firm and its customers will be priceless as committed customers will flourish. For example, they are happy to pay more (Lee, Barker and Kandampully, 2003) and share positive information about the firm to their contact with online reviews (e-WOM). These loyal customers are less likely to switch to the competition (Kim, Han, and Lee, 2001; Jaremen, 2016).

Four keys’ constructs of relationship marketing (trust, commitment, communication, and conflict handling) positively affect customer loyalty (Oly Ndubisi, 2007). Others describe commitment, repeat purchase, and word of mouth as the consequences of a good relationship between a customer contact employees and hotel guest.

3.2 Relationship quality

Relationship quality represents customers’ perception of individual service received from the organisation, also called the first point of contact. The first point of contact can be a salesperson, someone from the front office or reservation department that will influence customers perception when interacting with them in the future. According to (Kim, Han, and Lee, 2001), inspired by Crosby, Evans, and Cowles’s (1990) study, the quality of the relationship marketing with the sellers and buyer, depends on their pre-arrival contact like (guest confidence, guest contact and, effective communication) and consequences such as (commitment, repeat purchase and word of mouth)

From the customers’ perspective, relationship quality determines the employees’ capacities to reduce uncertainty and reassure lots of information as possible to ease the reservation process (Kim, Han, and Lee, 2001). Therefore, relationship quality resides in the trust and satisfaction of the first interaction with an employee. Different areas where customer satisfaction can be measure from hotel service categories such as staff service quality, room quality, general amenities, business services, value, and security. This indicates building long-term customer relationship and credibility (Sirirak, Islam and Ba Khang, 2011). Whenever customers go through a bad experience is likely to spread the word to their entourage. Be consequent, reducing the number of potential customers the company could have reached (Buttle, 1996). Customers can use the internet to diffuse this information worldwide by sharing it on all different platforms that exist. Especially on social media, once a customer shares the news with many followers, this information is reshaped again by their followers it can rapidly damage the company.

4.      Customer Loyalty

The actual business world makes it more challenging for companies to keep customers loyal to their product offering, a place where everyone is connected, no matter the time difference. Now customers can find within one click what they need on the internet. One could say that the internet broadens the gap existing between organisations and their customers. The marketplace opens the door to more competition with all the businesses available to them. Therefore, global competition makes information, prices, and products easily accessible. As a result, consumers are more exigent, and quality is no longer sufficient to generate more customers loyalty (Milović, 2012). There is a common idea in the literature and tourism industry that customers satisfaction and service quality is necessary to generate loyalty. Even if customers are satisfied with a service, it does not guarantee a repeat purchase, then have a loyal customer.

Moreover, prices can affect customers loyalty, even though competitive pricing does not guarantee commitment. Instead, it will increase the number of customers who come and go in the long term rather than profitability. It is more profitable for a business to retain loyal customers who generate more revenues than frequently looking for a new prospect that will cost more in time and money; in the end, it might not become a loyal customer (Kim, Han, and Lee, 2001). The literature affirms that loyal customers are willing to pay a premium price than others. It means loyal customers can be valuable for an organisation. It makes sense that a long-term relationship with loyal customers will positively benefit an organisation.

To influence customers choices proactively, organisations can tailor and personalise their products offering to customer’s needs, wants, and lifestyle (Lee, Barker and Kandampully, 2003) to increase their loyalty and retention. The company loyalty programme often generates new loyal customers. In that sense, the company can monitor how many loyal customers they have. Then, loyal customers will recommend the product or service to their friend, automatically generating new customers. The work organisation has made at the start to gain valuable customers is beneficial as they have some returns that come back straight to them. Therefore, all their energy can be spent on customer service and improving their offering for loyal customers rather than overwork to find new customers. If the company uses customers’ information effectively by anticipating their needs and wants, customer loyalty will increase (Neuhofer, Buhalis and Ladkin, 2015).

a.      Conceptual framework and hypotheses development

The literature review was used to create and adapt the conceptual framework of how customer technology benefits impact the pre-arrival contact stage, an important step to develop excellent relationship quality between a hotel and its customers. The relationship quality is demonstrated by customers commitment to result in different outcomes ultimately. The outcomes are also influenced by customer technology acceptance (Figure 1).  

Figure 1: Conceptual framework

b.      Hypotheses development

Customer technology benefits can be defined as some of the advantages customers get when using ICT in hotels (Jaremen, 2016). Hotels’ mains objective using technology is to meet customers’ needs in providing them quality service and speed of customer service. Customers technology benefits section is customers’ affirmations of technology benefits statements. The technology benefits statements are some examples of the benefits customers have when a hotel use technology. Those examples can be found in different area and stage of a customers’ journey, which can influence the “pre-arrival contact”. The participants’ answers will demonstrate how strongly they agree with the statements in three main areas (welcome encounter, room comfort and restaurant visit). Models of technology benefits inspired by (Lee, Barker and Kandampully, 2003) study the perception managers have on technology adoption in hotels and apply for customers’ perspective. Lee (2003) mentions the knowledge customers have on standard service delivered by hotels, affecting other hotels that are not following the evolution.

The pre-arrival contact section inspired by (Kim, Han and Lee, 2001) study has three variables: Guests contact, great communication and guest confidence. They are the marketing activities that affect the relationship quality between customer contact employees and guests. The objective is to evaluate if hotels use relationship marketing variables to increase their relationship quality. A similar experience was conducted by (Kim, Han and Lee, 2001) for luxury hotels in Asia. They found that guest confidence and communication have a positive relationship with relationship quality except for the guest contact variable as Asian guests are not interested in proactive guest contact due to their culture.   

Relationship quality is the customer perception, based on their personal experience at the hotel, when interacting with employees. The way they communicate and behave in respect, empathy, or helpfulness with guests (Kim, Han and Lee, 2001) Relationship quality influences the relationship consequences like commitment, repeat purchase, and word of mouth. Hence, the commitment variable is placed separately and further down for the framework of our study.

According to (Oly Ndubisi, 2007) study, relationship quality isconstituted of 4 different variables in relationship marketing such as trust, commitment, conflict handling and communication to result in customer loyalty. But for this study, the commitment variable will be separated. This framework has been tested in the bank, insurance, retail sectors, service industries interacting with customers like in the hospitality industry. Commitment is determined as one of the important variables that evaluate the strength of the marketing relationship and other outcomes such as customer loyalty and repeat purchase. In another study (Kim, Han and Lee, 2001), commitment is the result of good relationship quality positioned as the median between antecedents (pre-arrival contact) and consequences (repeat purchase, word of mouth and customer loyalty), reflecting better the alignment of our study.

The outcomes are a combination of variables of the relationship quality consequences like repeat purchase, word of mouth and customer loyalty. Customers who value their relationship with hotels will maintain this relationship by buying their product/service again (Kim, Han and Lee, 2001). Word of mouth another essential variable that permits measuring customers’ satisfaction with relationship marketing. This variable needed to be in the combination of the outcome, mainly because it is one of the most potent types of communication in hospitality. Example reviews from guests are precious for a hotel reputation. Lastly, customer loyalty the main goal for organisations to keep their existing customers as they are more valuable than attracting new customers. Oly Ndubisi (2007) study demonstrates a positive connection between how well a company resolves conflict to customer loyalty.   

The technology acceptance section is based on statements reflecting customers approval and measure the strength of their use of technology. (Ilieva, 2017) suggests that customers acceptance will ease the adoption of technology if they believe and trust its function. This concept relates to the technology acceptance model (Ha and Stoel, 2009). The technology acceptance questions are statements from situations guests experience the use of technology. Consequently, one can assume that technology acceptance eases positive outcomes of technology adoption such as repeat purchase, word of mouth and customer loyalty.    

c.      Hypothesis summary

Customer technology benefits

H1 – Technology benefits have a positive impact on pre-arrival contact.

Pre-arrival contact

H2 – Pre-arrival contact has a positive impact on relationship quality.

Relationship quality and commitment

H3 – Relationship quality has a positive impact on commitment.

Commitment and outcomes

H4 – Commitment has a positive impact on outcomes.

Customer technology acceptance

H5 – Customer technology acceptance has a positive impact on outcomes.

a.      Research design

This research is based on a descriptive and deductive approach to test the theory using the collected data. (Saunders, Lewis and Thornhill, 2016). People who have used the hotel in London in the past were targeted as it is a good reference for a population sample with London as a diverse place it is easy to find people who stayed in London before. The secondary data are based on different academic journals such as ICT in hotels and customers’ relationship to customer loyalty; International journal of bank marketing; the journal of marketing. The literature allowed the researcher to understand better the subject and overview of ICT application in hotels and why some are more implicated than others.

b.      Primary data

The questionnaire (Appendix 3) was made with an introduction part at the start of the survey to reassure the participant that their responses are completely anonymous. It will be used only for research purpose. Assuring participant anonymity is in line with the principle of research ethics (Malhotra, Nunan and Birks, 2017).

The survey was constituted of 43 questions participants have answered using a Likert scale structure for the framework question from 1 to 5, with one representing “Strongly agree” and 5 for “Strongly disagree” (Saunders, Lewis and Thornhill, 2016). In addition to that, there were ten multiple-choice questions for the general questions to add comments for 3 of them. The survey questions and statements all built from the literature review.

The Qualtrics software has been used to build the online survey because the platform is easy to use and set for this research (Qualtrics, 2021). It has many functions which can make a questionnaire very interactive. There are excellent quality images if needed to include pictures, and the survey can be personalised with the company or university logo. The platform allows people to take the survey from a laptop but also supported by mobile phones. The online survey is a modern way to deliver a faster and cheaper survey than traditional methods and complete the survey in their own time (Malhotra, Nunan and Birks, 2017). One of the disadvantages of using an online survey is the response rate. Not everyone has internet access or can have difficulties using online software, even though an online survey can reach people worldwide (Saunders, Lewis and Thornhill, 2016). However, as the main topic of this research is technology, it can be assumed participants have the adequate skills to fill in the online survey.  

This research is not subvention by any organisation but only to supports a final year marketing student project; hence, this method has been chosen. Qualtrics allow the researcher to see how many people have started the survey but have not yet completed the questionnaire and allow the participant to get back and complete the survey and the researcher choose to given them seven days to complete it before its suppression. Therefore, no participant had the pressure to complete the questionnaire nor a reminder via email as it is entirely voluntary and anonymous.

Most of the respondents were students who guaranteed to complete the survey by completing their survey in exchange. The other participants have simply responded on time to the survey.

The survey was sent out on 12 March to remain available for about five weeks, and on 22 April, the survey was closed (Appendix 2).

c.      Research methods

The research method is quantitative research characterised by a survey. The survey data permits an examination of the relationships between variables and measures them numerically. The survey data are analysed using two different techniques, such as a statistical and graphical technique. The software SPPS and Amos software were used to analyse the data, applying specific techniques for this research methodology. Once all the data is uploaded on SPSS, all the labelling for general questions and theme was done, and the values for each of them was entered

The first test is crosstabulation for a better understanding and overview of the general questions. The test would provide feedback on the participants’ answers to then determine if they were honest when answering the questionnaire. Crosstabulation is another technique used to check the validity of the data (Appendix 4). It gives feedback on the participant answers and if they responded to the questionnaire accurately. The result will reflect the validity of the data. The test is done by comparing different variables. For example, when comparing the variables age and education, most people across all ages have their Bachelor’s degree, and the maximum of 15 is for people between the age of 31-45. This age range also has the higher number for Master’s degree for 13 people against 4 people for each category above. The result translates that the participants have responded honestly to the survey. The same test has been done with the age and income variables, and all seems correct.

The next step was to check if SPSS detected any missing data by doing a frequency analysis (Appendix 5); after the test, the researcher did not find any missing data.

Then, factor analysis (Appendix 6) all the survey questions are selected to see how strong the responses are. It is a way to reduce the number of question and take out the needless ones. For that, the results need to be above 0.4, and if any of them are weak and cannot be used for the research, they will be removed from the study. For this research, all questions were between 0.594 and 0.853, so no questions have been removed. Follow that step, the framework questions have been merged into themes by combining the variables of each theme, “compute variable”, then divided them by the total of questions of this section.

Next, the reliability and validity test (Appendix 7), all themes were put together to study Cronbach alpha which needs to be above 0.7 and for each of them.

The regression test (Appendix 8) comes next. It will show the relationship between the different themes by adding the dependent and independent items of the research and see if they are significant.  

Following the correlation test (Appendix 9), the results were cleaned on excel. It will show the correlation between all the theme with a p-value is significant when it is less than 0.01 with the ** sign.

d.      Data collection and sampling

The data collection for this research based on Saunders’ research onion is as follow: This research is a cross-sectional study as the participants’ responses are only used for one specific time for this research (Malhotra, Nunan and Birks, 2017). A survey was used to gather this single data collection reflected with a mono method quantitative choice. The research is based on the principal theory orientation of a deduction process with an interpretative philosophy.

The survey sampling is based on two different types of approaches, a simple and a snowball. The first characteristic for this sampling is to have used hotels in London in the past. The survey was distributed on social media to reach as many people as possible while complying with government guideline and social distancing. As the survey is online, the sample is narrowed to have only people using social media such as “Facebook”, “LinkedIn”, and “WhatsApp”. As the survey was sent out on “WhatsApp” to the researcher closest friends and family than on different social media platforms such as “Facebook” groups and “LinkedIn”. In addition to this sample, people working in the hotel industry have also responded to the questionnaire. They represent around twenty participants of the survey total. The researcher has sent a message to the “WhatsApp” workgroup, asking for colleagues support in completing the survey if they are happy to do so. The additional part of participants was necessary to get closer to 100 respondents for the research.

The researcher received 98 responses in total from participants and made sure all participants were over 18; otherwise, they were directly sent to the last page of the survey without completing it. Most respondents are students from other universities looking for people to fill in their survey on dedicated Facebook groups to fill out their survey. Finally, a small group of people working in hotels from different departments also took part in the survey. Mainly due to the circumstances, social media were a reliable tool to reach many responses and got close to the goal of 100 participants. The participants have answered the survey questions according to their previous hotel experiences in London. Their experience could have been two or three years ago from now or more, as long they remember. No specific time frame has been set regarding people’s last hotel stay to give more room for data due to the worldwide pandemic and travel restrictions that have stopped people from going on holidays. Considering the first U.K. lockdown in March 2020, general people must have stayed in a hotel for the last time at least more than one year before the lockdown.

Research projects require to follow the university ethics guideline to comply with the ethical norms and legal regulations (Malhotra, Nunan and Birks, 2017). In that matter, there are certain steps to follow, such as fill in an ethics forms (appendix 1), with all the necessary information mentioning the all-purpose of the study, the type of participant, how the participant will answer the questionnaire, etc. The form is sent to the supervisor before sending out the questionnaire to the public. The ethics form’s primary goal is to guarantee that the research was done to safeguard participants’ data without taking any potential risk. The participants answered the questionnaire voluntarily. They were informed about the research purpose and how data is store via the “information sheet”, which is the first paragraph of the survey.

f.       Limitations

This research has some limitations. First, the study focuses only on quantitative research because of the lack of time and people availability related to the health situation. Qualitative research such as interviews could have been excellent to support the primary data, so more in-depth information could have been collected. However, due to the current condition of “Covid 19”, people are not available and might focus more on their health and safety at the minute. For instance, many employees have been made redundant in the hotel industry, making it difficult to schedule interviews with people. Also, the study does not focus on one specific hotel use as an example for this topic, where more precision could have been delivered. Instead, it focuses on the hotel industry in general. Nonetheless, the research remains reliable because the actual primary data was enough to respond to the research questions and hypotheses. Finally, not everyone is comfortable using online software, which can be a limitation in the research as not all population members have been reached.

This chapter will be in three different sections. The first part shows the survey questions statistical results from the participants’ demographic characteristics and the survey reliability, correlation, and regression tests. Then, the descriptive results will be explored in detail at the end of each section to finish with a discussion that responds to the research questions presented on page 5. The study will answer to what extent technology supports hotel in adding values to their guests? It then explained how technology improves hotel relationship with customers. And finally, how technology can drive customers loyalty.

a.      Demographic statistics

Table 1: Demographic characteristics

The demographic table is showing an overview of the general survey questions. The general questions are based on nine different groups: age, gender, income, education, frequencies and purpose of stay, hotel category preference, booking method and preferred hotel feature. Most participants are aged (Table 1) between 31-45, representing 39 per cent of the respondents total, followed by people aged between 18-25, which is 30 per cent of them. The majority of the participants are female (Table 2), with 68 per cent against 32 per cent for male. A large part of the participants earns (Table 3) less than £25000, representing 48 per cent of them, then 32 per cent of them are making between £25000-£50000. The level of education (Table 4) for the majority of 42 per cent is Bachelor’s degree than 24 per cent with a college degree. Not far away, 20% of the participants have a Master’s degree. More than half of them, 54%, stay in a 4-star hotel two to three times a year for 36 per cent of them, generally for leisure purpose for 67% of the participants who booked their stay from the hotel website and 16% through a travel agent. They also book through other platforms such as Booking.com, Skyscanner or Airbnb for 12% of them.

b. Scales’ reliability analysis

SPSS software allows evaluating the framework questions reliability and validity with their Cronbach’s alpha, starting with the whole themes. The evaluation is done by testing Cronbach’s alpha which needs to be above 0.7, and for this survey, Cronbach’s alpha is at 0.942. This value confirmed that the data of the study is valid. Next, Cronbach’s alpha for each theme is also tested separately under the same condition. The first variable, “customer technology acceptance”, is smaller than expected at 0.624, is still acceptable as the Cronbach’s alpha for all the theme is above 0.7. “Technology” is at 0.780, the “pre-arrival contact” is at 0.857, the “relationship quality” is 0.901, “commitment” is 0.829, and finally, the “outcomes” theme is at 0.707. These results reflect the reliability and validity of the whole survey questions.

Table 2: Reliability Statistics

c. Correlational analysis

The correlation analysis is part of the validity test. It studies the relationship between 2 or more variables to test the hypothesis. The correlation will determine how strong or weak is the relationship between the variables. The result shows that the questionnaire is satisfied, and the variables are significant as the p-value level is at 0.01, illustrated as (**). From the table, one can tell that the relationship strength between all the variables is moderate to high. The magnitude is between 0.4<r>0.7; however, the relationship between technology and pre-arrival contact is low as the magnitude is equal to r<0.4.

Table 3: Correlation’s analysis of each theme

d. Regression analysis

The regression test was done on AMOS. The purpose of regression is to test the hypothesis of the conceptual framework. The dependent is “outcomes” with its independent’s “technology benefits”, “Pre-arrival contact”, “relationship quality”, “commitment” and “technology acceptance”.

Table 4: Regression analysis

In appendix 7, the adjusted R square is at 0.684, representing the fit goodness of the model. The analysis shows a strong significance of all the hypotheses in Table 4 as p<0.001 representing by (***). The first hypothesis, H1, demonstrates that “technology benefits” have a positive impact on “Pre-arrival contact” as p<0.001 (***) emphasise the positive sign, and the path coefficient (beta) at 0.775 shows a strong relationship. H2 – “Pre-arrival contact” positively impact “relationship quality” supported with the beta at 0.730 indicates the connection is high. The following hypothesis, H3, is significant due to p-value <0.001; however, the relationship is low as beta is <0.4, but the “relationship quality” is still important as the p-value is <0.001. Then, H4 has a moderate relationship between the two variables as beta is <0.7, but it has the highest t value and still significant with p<0.001. Finally, H5 – “Customer technology acceptance” has a positive impact on “outcomes”, and the relationship between the two is moderate but significant with a p-value <0.001.

e. Descriptive analysis

The principal analysis indicates the range, maximum, minimum, standard deviation, variant mean, and median on the general percentage. It gives a complete picture of the research questions.

1)     Results from Survey

Technology benefits

Welcome encounter: 85% appreciate being welcomed by their name, even better for 67% of them if this happens to be a familiar face introduced to them before arrival.

Room comfort and food and beverage: 78% would love to change their room setting from standards to personalised, and even for 79.6%, guests will spontaneously update their preferences in terms of food and beverage.

Room comfort 1 – question 17

Analysis: These results show that guests are more and more aware of the technologies used in hotels and, by consequence, appreciate and might expect the same type of service in a similar environment. Hence more than 60% of the participant responded positively to the affirmations of the customer technology benefits section. The technology benefits section represents different types of service and areas of hotel guests can benefit from the use of technology.  As mentioned by (Neuhofer, Buhalis and Ladkin, 2015), customers are not looking to simply buy a service but also looking to acquire the experience that comes from the consumption of the service.  On page 9, another benefit mentioned is the personalisation of customers experience.

For example, question 17 of the “room comfort” section reflects the possibility of guests being actors of their hotel experiences by personalising their room setting, guaranteeing superior service assured by the hotel using technology. The first hypothesis of the framework was the assumption that customer technology benefits can positively impact “pre-arrival contact”. One could assume that technology benefits have a positive impact on “pre-arrival contact”. For example, when guests have habits to be welcomed by their name in a 4-star hotel, they would more likely expect the same service every time. The same service delivered each time returning to the hotel or in another hotel set the guests’ standards.      

Pre-arrival contact

Guest contact service: 83.6% confirm that hotel employee deals with their inquiries accurately and speedily at 80.6%, hotel employee understands customer requirements approved by 87.8% people. Communication: 74.5% confirm that they receive special treatment and felt valued by their preferred hotel. This attention can be reflected with a thank you letter, or birthday card sent to guests, but 61.2% affirm they do not receive this type of attention. However, 78.5% confirm that the hotel provides timely and trustworthy information. Guest confidence: 79.6% find that hotel employees are reliable. 73.4% confirm that hotel employee makes extra efforts to handle guests’ requests. 90.8% have confidence in the hotels’ services. 

Table: Communication question 2

Analysis: The “pre-arrival contact” with guests is essential for the positive development of the relationship between the hotel and its guests. During the pre-arrival contact stage, some interaction with hotels’ employees will occur and influence guests’ broad vision of the hotel. The results demonstrate that over 70% of participants are generally satisfied with the pre-arrival contact when staying in their favourite hotel. Except for the way the hotel communicate how they value their guests with special attention. 61.2% of participants confirm they who do not experience this type of attention. However, guests might receive particular attention from their favourite hotel; however, it could be different from a thank you letter or birthday card. One of the most comment way hotels can show guests they value them is to send an email the day of their birthday, but the email could be lost between other companies’ advertisement or the guest has not shared their details with the hotel. The guest contact service seemed to be an area participant agree with and had a good experience for more than 80% of them are satisfied with the person who was their contact of the hotel. The participants of the research are primarily happy with the way employees of their favourite hotel exchange with guests. As a result, they generally appreciate the service provided by the hotel.

Relationship quality

Trust: 89.8% of people affirm that hotel employees are trustworthy are honest, for 79.6% and employees show respect to customers according to 92.8% of them. People agree that a 93.8% hotel is consistent in providing quality service, 87.8% think they fulfil its obligations to customers, and 68.4% would like to have a continuous relationship with their favourite hotel.

Satisfaction: 96.9% Are happy with the service their favourite hotel provides, and 95.9% are pleased with the hotel employee. Conflict handling: About 82.7% of people confirm that hotel employees are dealing with unsatisfied guests well, and 76.6% agree that the hotel can openly discuss solutions when problems arise.

Chart: Trust question 6

Analysis: Overall, the results demonstrate that the study participants were satisfied with the relationship with their favourite hotel for more than 76% of them. The trust they have in the hotel, and the hotels’ employees are firm. As people can represent an organisation but act independently and negatively affect the relationship with key clients. However, the hotel relationship with its employees seems to be harmonious to impact customers positively by providing a quality of service and deal appropriately under challenging times. However, only 68.4% of participants want to have a continuous relationship with their preferred hotel. Guests might not want to stay in contact with the hotel continuously but could appreciate this relationship closer to their stay at the hotel. It can be argued that the relationship quality with customers is not sufficient to guarantee a positive impact on commitment, but it still significant.  

Commitment: People confirm at 71.4% that the hotel offers personalised services to meet their needs. Concerning price increases, only 40.9% are willing to use the same hotel regardless, and 47.9% will pay more for their favourite hotel rather than the competition.

Table: Commitment question 2

Analysis: The results show that hotels innovate to nourish their relationship with customers by offering personalised services, with 71.4% who agree they receive personalised services to meet their needs. The numbers are positive when the effort comes from the hotels; however, it decreases below 50% when actions are required from guests to show their commitment toward the hotel. Not many are willing to use the same hotel if they increase the price, about 30% would prefer to change hotel, but 28% are unsure, they might take a stand depending on specific criteria. The sceptical participants could pay more if they know the hotel’s value to their loyal guests, as cited on page 7 from the literature. Consequently, if the guest and hotel are committed to one another, positive results can come from this alliance, such as more purchase from customers, positive review about the hotel and the hotel remain the first choice among the competitions.  

Outcomes

In terms of repeat purchase, 70.4% of people affirm that they plan to return to their favourite hotel when possible. A majority of 86.7% of people are willing to recommend (word of mouth) their preferred hotel. Only 38.7% of people will choose their favourite hotel when travelling and not consider another hotel regarding customer loyalty.  

Chart: Customer loyalty question 1

Analysis: Overall, the participants are satisfied with their relationship with their favourite hotel and the service they can provide as they are willing to return and recommend the hotel to others. On the other hand, not many are eager to choose their favourite hotel when travelling and disregard the competition. These results can be understood in the senses that guests are willing to return to their preferred hotel, but they also want to try others. The customer choice will depend on the price or the type of hotel available at their location. Hence most of the participants are insured for this question. Especially when travelling abroad, they might want to stay in a hotel they are familiar with rather than an unknown hotel when customer should only be enjoying their holidays rather than worrying about where they will be staying.

Customer technology acceptance: This section is constituted of 4 questions. It generally represents guests’ approval and acceptance of technology benefits by agreeing or not with the affirmation. They communicate with hotel staff during their stay to encourage superior services agreed at 77,6%. Guests are approved at 76.5% to pre-select their preferences before a visit when possible, and 49% do not hesitate to update their data spontaneously when changes of their data occur. Finally, 72.4% are happy with the hotel to keep the records of the previous stay to propose accurate offers.

Table: customer technology acceptance question 3

Analysis: The results demonstrate that customers are generally happy with the benefits of technology when staying in a hotel. The participants confirm that they share valuable information with the hotel during their stay to assist them in delivering superior services through technology. However, customers seem to refuse to be disturbed during their stay to update their personal information or not see its need as only 49% of them are updating their data at that time. As a result, customers consider data to be updated if there is an actual purpose to resolve an immediate issue.  

Discussion

The results of the data analysis have confirmed all the hypotheses of the conceptual framework, described on page 16.

Several lines of evidence suggested that hotels’ original purpose of implementing technology was mainly for operational and managerial levels, but others benefits could assist hotels at different levels. Such as deliver superior quality service and speed of customer service as mentioned on page 9. The first hypothesis, H1, is about the relationship between the “technology benefits” customers get and the pre-arrival contact. As Ilieva, 2017 mentioned, guest needs and wants have increased with access to modern technology and have high expectations from hotels regarding service quality before, during, and after their stay. Customer technology benefits can be represented in different ways, such as personalised guest services that correspond to the guests’ needs and preferences. For example, question 17 of the questionnaire asked participants if they would love to change their room setting from individual to personalised, and 78% have agreed with the statement. This question represents one of the benefits customers have when using technology in hotels; by using the hotel application, they could personalise their room setting. Same for question 18, which asked if they were happy to update their food and beverage preferences, and 79% were agreed. This second question demonstrates that guests are willing to give information about their choice, which can, by consequence, help in delivering superior quality service. Other types of technology can benefit guests, like social network services and context-aware information individual services (Neuhofer, Buhalis and Ladkin, 2015). It goes without saying, technology support hotels in adding value to their guests in response to the first research question. Technology offers hotels the possibility to provide a new type of service in and out of the hotel. For example, customers can now find the hotel location on their mobile phone or contact the hotel via a mobile application.

The second hypothesis, H2, tackles the relationship between the “Pre-arrival contact” and the “relationship quality.” The employees’ interactions with quests can explain the correlation between the two themes. The way they communicate and behaviour with guests is an extension of the hotels’ values and culture. Therefore, pre-arrival contact is important to create a relationship quality with customers as it will impact the customer perception of the organisation. For instance, Kim (2001) study found that guest confidence and communication have a positive relationship with relationship quality, except for the guest contact variable as Asian guest are not interested in proactive guest contact due to their culture. Unlike our study, the targeted audience is primarily Europeans. According to the research results, there are flattered when receiving proactive guest contact as an average of all the questions, 84% have responded positively to the questions regarding guest contact service. It means the relationship between pre-arrival contact and relationship quality for our study was much higher than expected compared to Kim’s (2001) study. In fact, our correlation results show the relationship between the two variables is the highest, with a Cronbach alpha at 0.749 (Table3). The stronger the relationship is, the more it will affect customer perception of the employees and hotel to developing trust, confidence and other outcomes such as repeat purchase as mentioned on page 12. Guest contact can be seen as a preview taste of the type of service customers can receive. Same for the way customers communicate with guests. It can reassure customers of their choice as employees know their subject, which influences a repeat purchase. In hospitality, communication also means staying in touch with valuable customers to provide relevant and timely information. Kim (2001) points that the relationship quality depends on the employee capacity to reduce customer uncertainty of the product or service they have chosen. In other words, employees can be perceived as the angel on customers shoulders who tell them they took the right decision with some persuasion. It is quite clear that there is a positive relationship between pre-arrival contact and relationship quality.       

The third hypothesis, H3, represents the relationship between relationship quality and commitment. The two variables are linked in the sense that commitment can barely go without relationship quality. It has been specified on page 12 that commitment has been defined as the enduring desire to maintain a valuable relationship for both parties (Oly Ndubisi, 2007). The fact a customer is willing to commit to an organisation means they are satisfied with the service they receive and trusts the organisation. As Kim (2001) mentioned, commitment is the result of good relationship marketing. The commitment variable can also be used to determine the strength of the relationship marketing between a hotel and its customers and other variables like repeat purchase. The relationship is valued by guests and hotels when they are willing to pursue the agreement for a certain time showcase in the commitment. On page 10, constant contact with customers is mentioned to update their information at the right time. This is reflected in the result as 68% are willing to have a continuous relationship with the hotel.

The fourth hypothesis, H4, respond to the relationship between commitment and outcomes.

The price is a factor that can influence customer loyalty (one of the outcomes variables) and demonstrate customer commitment; as on page 14, the literature affirms that loyal customers are willing to pay the premium price. Although in our research, participants are unwilling to use the same hotel if the price increases and not much are willing to pay more for their favourite hotel rather than the competition. It might reveal that customers nowadays prefer to switch to the competition if the price of their preferred hotel increases at the risk of being disappointed. This situation demonstrates, even more, the importance to stay in contact with customers to better understand their needs and inform them of the relevant information at the right time. New technology might assist in accomplishing this goal. In response to the second question of the study, there is no doubt that technology can improve hotel relationships with customers. They have all the necessary tools available to anticipate and respond to customers needs. Technology even helps them to innovate in their product offering by allowing customers to choose between different options. The only barriers to improving their relationship are the willingness of both parties and the technical knowledge and skills of the hotel employees.   

The last hypothesis, H5, concerns the relationship between “Customer technology acceptance” and outcomes. It can be argued that customers technology acceptance impacts the outcomes such as repeat purchase, word of mouth and customer loyalty. For example, customers who are happy with the service received via the benefits of technology are more likely to share this information with others. They are more able to share a positive review about the hotel as they already know the technology. In response to the last question of the study, it does not seem unreasonable to suggest that technology can drive customer loyalty. Hotels have to start with the relationship marketing activities they have in place in improving the relationship quality of their relationship with guests. In that sense, relationship quality contributes to generating more customer loyalty.

This study confirms that the relationship between a seller and buyer is necessary in our case, hotels and customers, especially in the hotel industry, which priority is to concentrate their efforts toward service of quality and speed of customer service to make a difference in the competitive market.

Their efforts can be completed by the implementation of information technology communication with not many difficulties in an economy of social and customer-led technology. Hotels will only need to focus on training their employees to use the technology and constantly offer new technology in line with customers lifestyle and needs (Lee, Barker and Kandampully, 2003). The use of technology platform can help to facilitate communication between hotels and their customers.

Relationship marketing will help to conduct hotels in a long term relationship with its guest. Based on trust, communication and commitment that benefits customers and hotels. Long-term relationship with customers can be beneficial to the hotel with financial outcomes. As they loyal customers are more likely to bring new customers. Cycle maintains customer commitment to the organisation, is happy with the price, recommends the hotel to others, and remains loyal customers. 

Employees are one of the key actors that can increase the relationship quality. Without them, it could be difficult to reach this quality service even the quality increase with technology. One could argue that for a higher relationship, quality employees cannot go without ICT.

Suggestions for further research

Other studies could concentrate on evolving technologies-based service offering hotels have proposed to customers from the beginning of the internet till today and what type of service is less popular than others.

Reflections on the experience of carrying out your study

The study did not thoroughly explore the concept of technology benefits and acceptance model because of the lack of time and better research skills. Also, the study does not reflect the actual use of technology in hotels accurately. The research could have focused on the current technology offering and the ones hotels must reconsider using due to the current health crisis to facilitate customers return.  

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1.      Ethical form

Your details

Your project

If you project involves the interaction with human participants, please proceed with Section 3, if not, please go to Section 4. 

Your participants

Please append this form with copies of your information sheet(s) and consent form(s).

If using, please provide copies of questionnaires, interview schedules or other materials to gather your data.  

If you feel the proposed investigation raises other ethical issues, please outline them here.

FOR COMPLETION BY THE STUDENT

I have answered the above questions as fully and honestly as possible.             YES

I confirm that my project does not involve sensitive topics or vulnerable groups, e.g. minors.

                                                    YES

I agree to inform my supervisor if there is any change to the research project detailed here, and if my supervisor deems it necessary, I will seek additional ethical approval.                                                    YES

I agree to carry out the study in an ethically informed way and to ensure that participants, researcher(s) and the college are safeguarded.                                  YES

I agree to carry out the study in line with current Freedom of Information and Data Protection regulations, including storing and transferring data securely.               YES

I confirm that the research conforms to expectations of ethical research in my discipline.                                                                                                                                  YES

2.      Survey setup

3.      Online survey questions

Customers perspective on technology in hotels and relationship management

Start of Block: Introduction

Q0 Welcome and thank you for taking the time to take the survey.

Q01 As a final year Bsc Marketing student at Birkbeck University, I am working on marketing research that focuses on customer perspective of technologies used in hotels. The survey is entirely anonymous, and the collected data will only be used for my dissertation. It will take you less than 5 minutes to complete the survey.  

End of Block: Introduction

Start of Block: General questions

Q1 What is your age?

• under 18  (1)
• 18 – 25  (2)
• 26 – 30  (3)
• 31 – 45  (4)
• 46 – 60  (5)
• Over 60  (6)

Q2 What is your gender?

• Male  (1)
• Female  (2)
• Non-binary / third gender  (3)
• Prefer not to say  (4)

Q3 What is your annual income?

• Less than £25,000   (1)
• £25,000 – £50,000  (2)
• £51,000 – £70,000    (3)
• £70,000 – £100,000  (4)
• More than £100,000  (5)

Q4 What is the highest education you have completed?

•  High School           (1)
• College/ A-Levels  (2)
• Bachelor’s Degree  (3)
• Master’s Degree  (4)
• PhD or Higher         (5)
• Trade School  (6)

Q5 Before Covid-19, how often did you stay in a hotel per year? 

• Once per year  (1)
• Two to three times in a year  (2)
• Four to five times in a year  (3)
• More than five times in a year  (4)

Q6 In general, what are the purpose of your stays?

• Leisure  (1)
• Business  (2)
• Both  (3)
• Other  (4) ________________________________________________

Q7 Which hotel’s category do you mostly use? 

• 1 star  (1)
• 2 star  (2)
• 3 star  (3)
• 4 star  (4)
• 5 star  (5)

Q8 What is your preferred booking method? 

• Hotel website  (1)
• Travel agent   (2)
• Sales agent   (3)
• Social media  (4)
• Phone  (5)
• Mail  (6)
• Other  (7) ________________________________________________

Q9 What is your favourite hotel chain when staying in London? 

• Hilton Worldwide  (1)
• Holiday Inn  (2)
• Marriott International  (3)
• Intercontinental  (4)
• AccorHotels  (5)
• HyPuratt Hotels  (6)
• Other  (7) ________________________________________________

Q10 What is essential features my favourite hotel chain must provide?

• Multiple telephone lines  (1)
• Smart television  (2)
• Internet access  (3)
• Electronic meal ordering  (4)
• Self-wake-up call system  (5)
• Self-check-out  (6)

End of Block: General questions

Start of Block: Technology use

Q11 I am happy to communicate with my favourite hotel staff throughout my stay to encourage superior services.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q12 Before arrival at my favourite hotel chain, I am happy to share my personal preferences (room arrangement, room temperature, ideal bed, special requirements for kids, selection of drinks, etc.) to enhance my experience.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q13 I genuinely inform my favourite hotel chain of any changes in my personal information (phone number, email or preferences). 

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q14 I am happy with my favourite hotel chain to keep records of my previous stays for future offers.  

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

End of Block: Technology use

Start of Block: Technology benefits

Q15  I appreciate being welcomed and greeted by my name.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q16 I value being welcomed by the employee introduced during reservation before arrival.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q17 I love to be able to change my room settings from standard to personalised. 

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q18 I am happy to actively update my preferences and favourite selection in food & beverage during my stay. 

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

End of Block: Technology benefits

Start of Block: Before your arrival

Q19 During your reservation, would you say employees of your favourite hotel deals with guests’ inquiries accurately.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q20 During your reservation, would you say employees of your favourite hotel deals with guests’ inquiries speedily.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q21 During your reservation, would you say employees of your favourite hotel understands customer requirements.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q22 As a hotel guest, I received special treatment and felt valued.

• Definitely yes  (6)
• Probably yes  (7)
• Might or might not  (8)
• Probably not  (9)
• Definitely not  (10)

Q23 Does your favourite hotel chain send you a thank-you letter or a birthday card?

• Definitely yes  (11)
• Probably yes  (12)
• Might or might not  (13)
• Probably not  (14)
• Definitely not  (15)

Q24 Does your favourite hotel provide timely and trustworthy information?

• Definitely yes  (6)
• Probably yes  (7)
• Might or might not  (8)
• Probably not  (9)
• Definitely not  (10)

Q25 Are your favourite hotel employees reliable?

• Definitely yes  (6)
• Probably yes  (7)
• Might or might not  (8)
• Probably not  (9)
• Definitely not  (10)

Q26 Do your favourite hotel employees make extra efforts to handle guests’ requests?

• Definitely yes  (6)
• Probably yes  (7)
• Might or might not  (8)
• Probably not  (9)
• Definitely not  (10)

Q27 Are you confident that your favourite hotel chain will meet your expectations? 

• Definitely yes  (6)
• Probably yes  (7)
• Might or might not  (8)
• Probably not  (9)
• Definitely not  (10)

End of Block: Before your arrival

Start of Block: Relationship quality with the hotel

Q28  Are employees of your favourite hotel trustworthy?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q29 Are employees of your favourite hotel honest?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q30 Are employees of your favourite hotel show respect to customers?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q31 Is your favourite hotel chain consistent in providing quality service?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q32 Does your favourite hotel fulfil its obligation to customers?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q33 Would you like to have a continuous relationship with your favourite hotel chain?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

End of Block: Relationship quality with the hotel

Start of Block: Hotel satisfaction

Q34 Once at your favourite hotel chain, are you satisfied with the hotel facilities and features?

• Extremely satisfied  (6)
• Somewhat satisfied  (7)
• Neither satisfied nor dissatisfied  (8)
• Somewhat dissatisfied  (9)
• Extremely dissatisfied  (10)

Q35 Once at your favourite hotel, are you satisfied with the level of service,

• Extremely satisfied  (6)
• Somewhat satisfied  (7)
• Neither satisfied nor dissatisfied  (8)
• Somewhat dissatisfied  (9)
• Extremely dissatisfied  (10)

Q36 Does your favourite hotel offer solutions when problems arise?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q37 Do your favourite hotel employees deal with unsatisfied guests well?

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

End of Block: Hotel satisfaction

Start of Block: Commitment

Q38 My favourite hotel chain offers personalised services to meet my needs.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q39 I will continue to use my favourite hotel regardless of price increases.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q40 I am willing to pay more for my favourite hotel than other competitive hotels.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

End of Block: Commitment

Start of Block: After your stay

Q41 Once possible, I am planning to return to my favourite hotel chain.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q42 I am willing to recommend my favourite hotel to others.

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

Q43 If I travel somewhere new, I will still choose my favourite hotel chain and not consider other hotels. 

• Strongly agree  (1)
• Somewhat agree  (2)
• Neither agree nor disagree  (3)
• Somewhat disagree  (4)
• Strongly disagree  (5)

End of Block: After your stay

3.      Demographic data finding

4.      Crosstabulation

5.      Frequencies analysis

6.      Factor analysis

7.      Reliability

8.      Regression analysis on SPSS

9.      Correlations analysis

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