RISKS & CRISIS AND TIME LOSS CAUSED BY TECHNOLOGY IN HOSPITALITY INDUSTRY : A case study @ Hotels in Sarasota & Manatee County

KEY WORDS

Risks

Crisis

Technology

Time loss

Hospitality

Travel

Tourism

Contents

1- Introduction

2- Literature View

3- Hypotheses

4- Methodology

A- Design of Study

B- Sampling Method

C- Measurement

5- Proposed Data Analysis

6- Implications and Limitations

IntroductionTechnology based crisis is one of

the most important factor mainly resulted from lack of prevention efforts related to internal technological risks.

The development of the industry is negatively influenced by types of crises: external and internal factors that both have potential to affect industry as a whole.

If your business relies on technology systems such as computers and networks for key business activities you need to be aware of the range and nature of risks.

Literature Review from 1950s to today’s tech

Inevitably the tourism industry is one of the most affected by the technological revolution.

1950s>>> ICTs (information-communication systems) have been applied in tourism since the early adoption of Computer Reservation System (CRS) in airlines in 1950s

1980s the transformation to Global Distribution Systems (computerized, centralized services that provide travel-related transactions). Businesstravel.com

1985s Hotel property management systems (PMSs) and hotel CRS systems appeared shortly afterwards, bringing switch companies into the market as well in order to improve interconnectivity and interoperability (Ma, Buhalis and Song, 2003).

To bring higher quality products to the market and those have to be supported by offering the best service available to current and potential customers. However the competition in tourism industry has become more intensive than ever.

https://www.youtube.com/watch?v=mvXfNEtQ2hA 1:40

Literature Review Continued Risks : The probability or threat of quantifiable damage, injury, liability, loss, or

any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action. Risk points out potential problem, threat and dangerous in future.

Risk can be categorized perceived risk by consumers as financial risk, performance risk, social risk, physical risk, psychological risk, time-loss risk, personal risk, privacy risk, source risk (Lim, 2003:219).

Risk factors can be also broadly grouped into the following categories: market risk, credit risk, liquidity risk, operational risk, legal and regulatory risk, business risk, strategic risk, and reputation risk (Crouhy et al., 2006:25).

What is technology risk in hospitality?

Technology risk, principally computer systems risk, also falls into the operational risk category (Crouhy et al., 2006: 31).

Computer and communication systems error or interrupts (Hugentobler, 1995: 65 cited Boyacıoğlu, 2002), virus problems, insufficient or old systems (Keck, Jovic, 1999:965 cited Boyacığolu, 2002), data losses resulted from inadequate technology usage, hackers, software or hardware problems, firewall, backup insufficiency, poor data, fax, phone lines and so on (Fidelity, 2010 cited Pelit, 2011:122) are most common faced with technology based problems.

Crisis : can be defined as any occurrence which can threaten the normal operation and conduct of tourism related business; damage a tourist destination’s overall reputation for safety, attractiveness, and comfort by negatively affecting visitor’s perception of that destination; and, in turn, cause a downward in the local travel and tourism economy, and interrupt the continuity of business operations by reduction in tourist arrivals and expenditures (Sonmez, et al., 1994:22)

Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public.

Disaster and Chaos: Loss of Time as a Result of Technological Crisis

The common meaning of the time can be “bringing back is not possible”. Additionally, it is not possible to buy, sell, store, lease, borrow, produce, and change (Şimşek vd., 2007:2). The most important issue is to manage time effectively.

Time loss is not only negative consequence of the internal crises caused by technology based risks. Customer performance, motivation, stress level could be also affected by any internal crises.

we propose following research hypothesis:

H1- There is a positive relationships between tech based risks and time loss

( Negative WOM, Reputation, unsatisfied customers)

H2- There is higher technology risks in seasonal hotels than well established year around hotels. (Seasonal hotels, resort hotels ; importance of risk perceivedness of hotels)

H3- There is a positive relationships between technology based risks and crises. ( Hurricane, no power, war, disaster )

RISKS & CRISIS AND TIME LOSS CAUSED BY TECHNOLOGY in HOSPITALITY INDUSTRY : A case study at Hotels in Sarasota & Manatee County

4- METHODOLOGY

A- DESIGN

B- SAMPLE

C- MEASUREMENTS

A- DESIGN

In this study, time loss will be determined as dependent variable whereas crises and technological based risk factors and types of hotels, duration of operation of hotels will be independent variables.

Compare causal relationship between new built & operated hotel, and experienced hotel in terms of technology based risks, crises.

Questionnaire will be used as a survey instrument. Initially, a total of 11 evaluation criteria were already created by reflecting the structure of risks, crises. The survey instrument will include comprehensive literature review.

A pilot study will be applied in order to get face validity of instrument. Survey questions will be close ended (structured) questions

Researcher plans to interview chief engineers of hotels, front desk managers and IT managers who are mostly affected of time loss, crises, and technological factors.

B-SAMPLING

The proposed study will use random sampling technique in Sarasota and Manatee Counties.

The list of hotels is obtained from the directory of hotels list in Sarasota and Manatee Counties prepared by local tourism offices. However, during obtaining of target population through initial contacts with tourism bureau administrations;

unfortunately County only holds room records instead of numbers of hotels or classifications

Moreover, with respect to the official classification, hotels are not grouped into any classification by their service facilities and capacities. Hotels will be grouped by American Hotel Lodging Assoc.( AH&LA) requirements in order to randomize sampling.

C- MEASUREMENTS

All questionnaires will be conducted using face-to face interview technique.

A total of 11 evaluation criteria were created by reflecting the structure of risks, crises and time-loss in the hotels.

The same structure will be used for three variables – risks, crisis and time-loss.

The range for scores was determined as between 11-55 (5 point Likert scale) for each variable.

Using the coding scheme, a higher point for risk variable indicated higher risk management performance, crisis prevention capability, and low possibility to face with time-loss problem resulted from technology based crisis in the organization.

T-Test, (Independent Samples T-Test), One way Anova and Simple Linear Regression will be used for data analysis.

T-Test: Off Season and Year around types of hotels ( independent variable)

Total scores of tech based risks , crisis and time loss (dependent Variable)

One way ANOVA : Duration of operation of hotels ( independent variable) (1990-2000) (2001-2010) (2011-2014) in order to make Anova test we need to have more than 2 sub groups.

Total scores of tech based risks , crisis and time loss (dependent Variable)

5- Proposed Data Analysis Method

Simple Linear RegressionTech Based

Risks (independent

Var)

Crisis (dependent Variable )

Crisis(Independent

Var)

Time Loss( Dependent

Variable)

Tech Based Risks

(Independent Var)

Time Loss( Dependent

Variable)