A CASE STUDY ON DATA-DRIVEN DECISION-MAKING IN THE HOSPITALITY INDUSTRY
Objectives: The objectives of this white paper were to identify the specific antecedents and barriers that prevent hotel managers from adopting revenue management tools by looking at patterns of resistance through the lens of innovation resistance theory.
Methodology: The study employed a qualitative approach to investigate the barriers to adopting revenue management tools in the hospitality sector and to identify strategies for overcoming these challenges. The research methodology involved two primary components: interviews with seven experts and a comprehensive literature review.
Key Findings: Hotel chains and large hotels are embracing new technologies, while owner-managed small and mid-sized hotels struggle to implement revenue management tools. The interviews revealed eight major psychological and functional barriers: 1) limited time, 2) trust issues and concerns about loss of control, 3) financial restraints, 4) outdated IT infrastructure and no digital business strategy, 5) lack of knowledge about the tools, 6) wide selection of tools 7) generational gap and 8) customer acceptance.
Recommendations: The overall market situation at a destination influences the adoption of revenue management tools and is an external factor that pushes hotel managers toward a digital transformation. However, not every hotel manager can overcome the barriers on their own. External consultants can help, but without clear objectives, consultants cannot effectively overcome internal resistance. The first approach needs to come from the hotel. Strategies for overcoming these barriers include showcasing hotel managers’ success stories, demonstrating benefits, and justifying investments. Managers should be provided with comprehensive training programs and trial periods for the tools.
Conclusion: By addressing the identified barriers and implementing the proposed strategies, mid-sized, owner-managed hotels can significantly improve the adoption of revenue management tools, leading to enhanced operational efficiency and profitability. The findings of this study provide valuable insights for industry practitioners, contributing to the broader discourse on technology adoption in the hospitality industry.