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Paris, 5 March 1999 � A Think-Tank on Technology organised
by the International Hotel & Restaurant Association (IH&RA) in
Vienna last month sent a clear message to hospitality leaders: to compete
in the digital economy of tomorrow requires new management thinking and
innovative methods to satisfy the customer.
The Think-Tank was the third to be convened by IH&RA following similar gatherings held in Singapore (1997) and Nice, France (1998). This year�s event was held to coincide with EURHOTEC '99, the IH&RA's annual hospitality exhibition and conference. It brought together 45 industry executives, technology experts, suppliers and academics to identify the global forces and information technology trends shaping the future of the hospitality industry, and help the industry prepare for these changes proactively. Preliminary findings were outlined at EURHOTEC '99 by Daniel Connolly, assistant professor in hospitality tourism management at Virginia Polytechnic & State University in the United States. What is holding the industry�s development back, Think-Tank participants concurred, is the �skills gap� - the failure of its traditional craft-based focus to produce high-calibre financial managers. It is also plagued by an erosion of brand loyalty and high staff turnover. Where technology is concerned, Connolly observed, hospitality is hampered by the predominance of legacy systems which are hard to update and often incompatible, and the tendency to see technology as an increasingly costly support function rather than a strategic enabler. �Hospitality leaders must recognise that the entire business model for the hotelindustry is defective and needs to change,� he affirmed. Industry leaders must seize opportunities provided by technology so as to create, rather than be led by, the future. Some of the most important trends which the industry must take on board were identified by the Think-Tank as follows:
The Think-Tank highlighted several implications for hotels advancing into the age of knowledge management :
There was a consensus among participants that tomorrow�s consumers will have a clear idea of what they want and the price they are prepared for it, will not tolerate error, and will use personal smart agents to make their hotel selection and booking. Tomorrow�s hospitality manager, they predicted, will be more business savvy, more likely to have come from outside the industry, financially driven and technologically enlightened. Connolly outlined potential scenarios the hospitality industry should envision if it is to stay at the forefront of change and anticipate the future before it happens. Among the visions he asked the industry to imagine were:
The International Hotel & Restaurant Association (IH&RA is a global network of independent and chain operators, national associations, hospitality suppliers and educational centres in the hotel and restaurant industry in more than 150 countries. As the voice of the industry it represents, protects, promotes and informs its members to enable them to achieve their objectives. |
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Also See: | IH&RA Congress Assesses Impact for Hotels of New Marketing Revolution / Nov 1998 |
Before You Invest or Switch Understand the Value of a Brand Strategy / Dr. Ronald A. Nykiel / 1997 |