PROJECT REPORT

DIGITALIZATION SPACE AS MARKETING

TOOL FOR LUXURY HOTELS

STUDENT NAME : CHIRAG SAINI

ENROLLMENT NO. : 02211002220

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 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my

teacher Mr. Siddharth Srivastava as well as our principal
Mr. RK Bhandari who gave me the golden opportunity to
do this wonderful project on the topic Digitalization Space
As Marketing Tool For Luxury Hotels, which also helped me
in doing a lot of Research and I came to know about so
many new things I am really thankful to them .
Secondly I would also like to thank my parents and friends
who helped me a lot in finalizing this project within the
limited time frame .

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 INDEX

S.N TOPIC PAGE NO.

O
1. Objective 5
2. Introduction 6
3. Methodology 7
4. Literature review 8-21
5. Conclusion 22
6. References 23

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 OBJECTIVE

 To study innovation in field of hospitality

management.
 To explore how hotels are adapting toward new
digital era .
 To bring to light the challenges faced by the
hospitality industry.
 To analyze the future prospects of the hospitality
and tourism industry.

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 INTRODUCTION

In this age of Digitalization, technology has made the world

market advance and error free . None of the industries
have left untouched by this technology . In fact , the
competition between the luxury hotels is very tough in
today’s time . It was discovered that when hotels were
using semi-automated systems the services they delivered
was slow and it’s wasn’t easy to keep records of guest
records . Whereas , fully automated systems aided hotels
in providing efficient and more accurate services to the
guests , hotels were also able to keep records in a much
higher manner and customer satisfaction was very high.
Today , hotels use digital ways to take the restaurant
orders , reserve rooms , self-check in terminals , analyze
room revenue reports and digitally controlled stay
experience . We are currently living in the fourth industrial
revolution , which is characterized by emerging
technologies such as artificial intelligence , robotics ,
virtual reality , the Internet of Things and fifth - generation
wireless technology .

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 METHODOLOGY

This study is analytical and exploratory character. Primary

data is collected by google forms . Therefore, the
secondary data is collected from various journals ,
reference book , topic related website and other important
links . The collected data has been analyzed to drew some
useful conclusions .

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Literature review

Hotels are the place that satisfy the basic needs of

customer (guest)such as accommodation and food . Some
hotels provide services beyond the basic needs , high level
of comfort , convenience and customer satisfaction are
known as luxury hotels . Luxury hotels motive is not only to
prove services but to provide services with some extra
luxury which one cannot enjoy at his place , to provide a
great experience . One person perception towards luxury
can be another person necessity . Luxury hotels are volatile
in nature because of their superior service , world class
facilities and high operational costs . In today’s world of
advance science and technology , everyone rely on
machines and technology to get there job done . Luxury
hotels needs to adapt and understand form the customer
point of view the importance of Digitalization. Technology
is growing at such rapid speed its destroy innovation ideas
in very short time . Therefore, customers expectations are
now shifting to the personalized and prompt service .
Customer can have access to lot of information and
perceptive about there choices and can have endless
options for the customer .
Internet has changed the way in which our trips and
vacation are planned . This gives customer a huge choice
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and ease of booking . These days many people just explore
destination on Instagram or Facebook and plan their
vacation , it has became very easy to explore and choose
the best place to visit , multiple sites have made it easy to
compare and choose best rate and plan accordingly.

ROBOTICS IN HOSPITALITY

With the development in Artificial intelligence (AI), service

robots have become increasingly common in hospitality .

Service robots are system-based independent and

adaptable interfaces that communicate and provide
service to an organization’s customer . Customers are
amaze to see these robots in hotels . The interactive and
communicative key features of
distinguish service robots from other self-service machines
. Due to the covid pandemic these robots were used at
airport and hotels worldwide because they emits uv light
which kill the viruses and germs to ensure clean and safer
environment.

CHATBOTS

Al powered online chat bots are also provides quick

answers to the customer question via live chat. With the
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easy access via mobile apps , social media , live chat . Chat
bots can provide answers 24*7 , its improve the customer
engagement and guest experience . During the pandemic
chat bots played a huge role when hotels where running
on short staff , they were really helpful at that Time.

VIRTUAL REALITY (VR) AND AUGMENTED REALITY(AR)

VR simulations is the perfect tool for hospitality operators

to create a engaging customer experience . Considering
the intangible nature of the hospitality experience , VR can
make a big difference in a customer’s booking stage. A
digitally customised environment give customers a clear
picture of what to expect when they will visit the property
specially for heritage property or resort property , thus
attracting more prospective customers . One example of
VR application is the virtual tour video, this gives guests a
first – person view of the property . Experience his 360°
digital tour of the property using your mobile or headset .
This not only gives customers the opportunity gain
experience before booking , but also allows the hospitality
business to benefit from the “try before you buy”
marketing strategy .
Unlike VR , which can provide a virtual tour in virtual
environment, augmented reality(AR) enhances the
physical environment and offers the experience of
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exploring your surroundings in real-time . The technology
operates by overlaying digital components into a live
image of reality , which can be easily accessible from a
mobile phone . As result , AR is highly valuable in
enhancing customers’ indoor experience in the
Hospitality industry .

INTERNET OF THINGS

Internet of Things refers to “a growing network of

connected devices that communicate with each other with
a central server” . This is a comprehensive service that
connect automated door lock, light , voice , blinds , voice
assistant and etc . This can be controlled via a mobile
application or tablets . Many hotels are now using this
technology in market . This is to improve the guest
experience and create new business opportunity and
uniqueness .
Today , guest can use there mobile phone or self check - in
terminals for check - In and check – out by creating a new
way by which hotels will shape customer experience
through operation efficiency and personalization . Many
hotels are already offers an option of digital check - in via
mobile devices which allow customers can use electronic
key cards or mobile room keys embedded in cell phones to
open the room door .
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Guest can control many things from mobile/tablet present
in the room such as lighting , room temperature , water
temperature , curtains , and TV . Customers can also use
voice-controlled assistants for example Amazon Alexa or
google Mini to control those in-room features, and order
food or drinks . Internet of things is very advance moving
beyond convenience andp offering more personalized and
customized service . It recieves real-time data through
continuous monitoring from various devices, as well as a
collection of customer data that was not available before ,
such as preferences , routines and habits .
Internet of things can collect customers’ preferences
for in-room features, and the data can then be used
to configure the room settings for their next stay . For
e.g. If a guest is allergic to seafood Internet of things
will store this information and provide the menu with
no seafood dishes in it ,
If a guest like dim lights in room or blinds should be
on always internet on things will ensure that these
things will be taken care of . On the other hand,
internet of things with locational information can
send real-time personalized recommendations to
customers based on their stored preferences . For
example , customers may receive messages or
advertisements about nearby tourist attractions ,
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local restaurants or transportation options when they
are geographically close to the business or property ,
based on their preferences , thus improving customer
satisfaction through personalized and customized
recommendations .
It gives a personalize touch to the service and guest
feels that he had been considered and this ensures
that guest will come back for sure.

ISSUES AND CHALLENGES TO CONSIDER

As we are growing and transforming to the digital era

There will be several emerging issues that will be
taken care of which includes security , privacy , cost ,
human touch in hospitality , lack of knowledge .
Security is the main issue in digital transformation in
any industry . Since al and iot are highly connected
they are prone to hacking . For e.g. Problem in one
device can cause to another and this can spread in
entire network . For this type of problem they can
adopt high - security technology to reduce software
vulnerabilities , building resources to mitigate risk of
cyber - attack and train employees on cyber-attack

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prevention . A special team should be there to deal
with this type of situation .
Another important factor is privacy because when we
have to provide personalized service there should be
data related to that to track customer preferences .
Nowadays customer are aware of their data privacy
and if there will be any leak of consumer data can be
a serious problem will even can lead to crisis . There
should be a strict transparent privacy policy which
states that what all data will be collected and stored
and who can have access to that data is important .
This will help to build trust between customer and
business provider .
Another challenge is will be requiring so much of
software and hire experienced employees it will lead
to high cost . For small business using digital
technology in their daily operation may require a
huge investment and that’s why its became difficult
to understand that how digitalization will help there
business to grow . Lets take a example of VR it is very
good option to give a virtual tour for the hotel but it
will requiring a significant investment on software ,
hardware and Virtual reality headset . For small hotel

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its very difficult to incur that cost , they need to
prioritize what work best for them .
One of the issue to keep in mind is that of the
paradox between digital convenience and in - person
experience . In many area of hospitality , particularly
in fine dining restaurant , customer - staff interaction
is must . Through digitalization it might diminish that
interaction . Its need to judged that what all services
cannot be replaced by digital tools , preservation of
the choice for customer to decide between digital or
human services .
Covid-19 has made digital transformation fast with
unimaginable speed, it has forced many hotels to
adopt digital technology . Digital transformation in
the hospitality industry is more significant than ever ,
and it’s time for hospitality businesses to embrace
this change .

Present research was conducted by sending survey

forms to customer who keeps on visiting luxury
hotels in Delhi NCR in India . Total 20 survey forms
were sent through Google Forms to customers who
opts to stay at luxury hotels , out of which 10 are
males and 10 are females , age of these customers is
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18-23 . Profiles of these customers were young
students who tends to enjoy visiting luxury hotel on
regular basis .
Mode of Providing
Function services N=20
Reservation Reservation on phone 2
(booking of rooms) Online booking 18
Check-in of guests Registration at desk 4
(registration) Self check-in terminal 16
Order taking, Online (Chatbots) 10
Complaint handling Hotel Staff 7
and In room dining Others 3
Restaurant Order Through Tablet 15
Taking Hotel Staff 5
Check-out of guests Express Check-Out 15
(settling bills) At Cashier's Desk 5

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According to the survey (19) guest thinks that’s
Digitalization in hotels will create a luxury segment
whereas (1) guest thinks that digitization will create
any big difference. Reservation fall under the first
stage of guest cycle where guest choose in which
location he wants to stay , decide the type of room
suite him according to his budget . According to the
survey (18) guest prefer to book room online and (2)
guest will not mind calling the hotel to make
reservation department because online gives you the
vast choice for selection and you can compare the
room tariffs and its just one click away . Check - in
falls under second stage of guest cycle where guest
have generally fill the guest registration card and
collects room key . According to the survey (16)
guest prefer to register through self check - in
terminals rather than going to receptions and filling
up the forms , (4) guest would not mind going to
receptions counter for registering themselves . Order
taking , guest handling , in-room dining , wake-up
calls and feedback falls under third stage of guest
cycle where guest enjoy his/her stay in hotel and
consume various services during the stay , whenever
guest is not satisfied with the service he/she also
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complaint sometimes which should be take care of .
According to the survey (10) guest prefer to place
order or in room dining through online
method( chatbots) because it's can provide to plenty
of functions that staff cannot provide , whereas (7)
thinks that’s it should be done by hotel staff , and
some have mix opinion such as (2) thinks that’s
complaint should be handled through staff only and
food ordering can be done by Chatbots , (1) thinks
customer service should be there 24/7 . Restaurant
order taking is when guest comes to restaurant to
have food either he can order food by physical menu
or from tablet or screen present on the table through
software . According to the survey (15)guest prefer
order food through tablets because it can give you
various details which is difficult for a server to tell
such as – ingredients , calories , picture of a dish ,add
ons , personalized menu and many more , whereas
(5) think that order taking should be done by hotel
staff only .
Check out falls under fourth stage of guest cycle
where guest have to clear there bills and have to give
there key cards . According to the survey (15) guest
prefer check out by express check out by self check in
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terminal because it’s a seamless and very fast
process through the machine . Whereas (5) prefer to
check out at cashier desk maybe because it’s
involves a monetary transaction and people are using
digital methods of payments but some people don’t
like to use machine for there payments . After
analyzing this survey I would like to say that people
are moving towards Digitalization and they are liking
these new changes in hotels which can create luxury
people nowadays don’t like traditional way of check -
in and check - out they want it fast and efficient
because they don’t have so much time , people who
are coming for business don’t like someone to disturb
them for example – when guest is ordering food
they don’t like someone standing at the table and
listening there personal talk and being digitals gives
it’s a advantage and new way or taking orders , they
want express service which would improve by
Digitalization . When guest have access to everything
from tablet present in room it will give a good
impression from which he will also recommend his
relatives and friends to visit property .

POST COVID -19

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Government - mandated restriction on movement
have forced luxury hotels to change their business
model , operational practices and transform their
business model and it gives rise to many different
innovation . The COVID -19 pandemic has accelerated
the rate of tech-adoption in the hotel industry . Some
of the smart gadgets and services where considered
add-ons before where became requirements post
pandemic . Travel restrictions and economic
turndown have forced every hotel into immediate
action . Those that make right investment in digital
technology to improve and elevate their guest
experience by offering new technology will be in best
to survive the pandemic. New changes can be
observed such as : new ways of delivering service like
ready to eat food or finish at home food for eg.
Barbeque nation started barbeque in box , many
restaurants and hotels started pizza kits which have
to be baked at home , new concept was started in
which is called no contact delivery . New changes in
service example installing plexiglass screens , design
new layout according to the rules or social distancing
for e.g. On table of four only two people are
allowed ,transform back office adopting new ordering
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it payment system . Hotels were running on short
staff and they have to wear PPE equipment .
Customer where forced to order food with
application rather at counter . In restaurant QR code
where put so that customer can scan it with there
smartphone and view the digital menu hotels where
forced to impose this to stop the COVID 19 spread .
In kitchens chefs and others staff have to wear PPE
equipment and maintain social distancing . Regular
sanitization and disinfectant was to be done in all the
areas . Hotels have incurred huge amount of cost in
procuring these machines and chemical for
sanitization . It was very difficult for hotels to operate
during that period .

Conclusion

This report present different area in hotels where

Digitalization is the one of the main role in luxury
hotels segment . It was By the survey that customer
of luxury hotels expected the hotel procedure on a
fast pace and they don't want to waste their time in
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filling forms manually and standing in long queue
waiting in a long queue for making reservations ,
check-in and check-out . While when the make
reservations though travel agent they ask for your
professional and personal question . Thus customers
like to opt for self booking reservation by filling forms
which takes time . From the customer point on view
they would like to do it by quick self check-in
terminal they want it fast and user friendly
technology . Use of Digitalization will generate faster
report without any error to analyze their hotels
performance . In the largely customer driven
hospitality industry the use of technology to spend
operation and gather detailed customer information
is optional . By the means of Digitalization more
hotels are now targeting the customer on the basis of
their overall experience of stay and the purpose of
travel . Attractive offers, scheme, package and
discount are offered . Nowadays hotels are upgrading
their system and shifting their system toward
Digitalization , new technology comes with new
challenges one of the main is security when we
Digitalize our system it can be hacked or whole
network can be compromised because of small fault.
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Digitalization will shift the service experience in
luxury hotels to a new extent .

References

S. S., Siddharth Srivastava , & Sanjay Sharma .

(2020) . Digitalization Space as Marketing Tool for
Luxury Hotels. Global Journal of Enterprise
Information System , 10(3) , 19-24 .

Digital transformation in hospitality industry .

Y Jingjie Zhu , Ying Wang , Mingming Cheng ( 2021)

Post COVID 19 transformation in hotel industry

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Innovation in High-End Food Service During COVID-19
Lockdowns . Hanna-Kaisa Ellonen , Iis Tussyadiah ,
Aarni Tuomi

Impact of Digitization on Marketing for the Room

Sales In Luxury Hotels . T.Chandra Shaker Reddy

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