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The Impact of Technology Amenities on Hotel Guest Overall

Satisfaction

Article  in  Journal of Quality Assurance in Hospitality & Tourism · October 2011

DOI: 10.1080/1528008X.2011.541842

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University of South Florida Sarasota Manatee

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The Impact of Technology Amenities on Hotel Guest Overall Satisfaction Cihan Cobanoglu a , Katerina Berezina b , Michael L. Kasavana c & Mehmet Erdem d a University of South Florida Sarasota-Manatee, Sarasota, Florida, USA b University of Florida, Gainesville, Florida, USA c School of Hospitality Business, Michigan State University, East Lansing, Michigan, USA d University of Nevada, Las Vegas, Nevada, USA

Available online: 14 Oct 2011

To cite this article: Cihan Cobanoglu, Katerina Berezina, Michael L. Kasavana & Mehmet Erdem (2011): The Impact of Technology Amenities on Hotel Guest Overall Satisfaction, Journal of Quality Assurance in Hospitality & Tourism, 12:4, 272-288

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Journal of Quality Assurance in Hospitality & Tourism, 12:272–288, 2011 Copyright © Taylor & Francis Group, LLC ISSN: 1528-008X print/1528-0098 online DOI: 10.1080/1528008X.2011.541842

The Impact of Technology Amenities on Hotel Guest Overall Satisfaction

CIHAN COBANOGLU University of South Florida Sarasota-Manatee, Sarasota, Florida, USA

KATERINA BEREZINA University of Florida, Gainesville, Florida, USA

MICHAEL L. KASAVANA School of Hospitality Business, Michigan State University, East Lansing, Michigan, USA

MEHMET ERDEM University of Nevada, Las Vegas, Las Vegas, Nevada, USA

Technology is a critical determinant in hotel guest satisfaction. Hotels often utilize technology as a value-added amenity to help promote differentiation and enhance guest satisfaction. The pur- pose of this study was twofold: to measure and document the level of guest satisfaction with existing technology-based amenities, and to examine the scope of impact of such amenities on over- all hotel guest satisfaction. A random sample of 3,000 American travelers was chosen from a national database for this study. A total of 534 usable responses were received. The results indicate that there is a significant positive relationship between three fac- tors—“Business Essentials for Travelers,” “In-Room Technologies,” “Internet Access”—and hotel guest’s overall satisfaction. “Comfort technologies” factor was found not significant in predicting hotel guest’s overall satisfaction.

KEYWORDS technology amenities, hotel, guest satisfaction

Address correspondence to Cihan Cobanoglu, PhD, Professor & Dean, University of South Florida Sarasota-Manatee, School of Hotel and Restaurant Management, 8350 North Tamiami Trail, Sarasota, FL 34243. E-mail: [email protected]

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Technology Amenities and Overall Guest Satisfaction 273

INTRODUCTION

The adoption of hospitality industry-specific technology began in the early 1970s and has been continuously advancing ever since (Collins & Cobanoglu, 2008; Kasavana & Cahill, 2007; Sammons, 2000). From its incep- tion, industry practitioners and researchers expressed concern relative to the value of technology and its possible consequences on guest satisfac- tion (Collins & Cobanoglu, 2008; Piccoli, 2004). Despite such concerns, hospitality technology applications are credited with providing a basis for competitive advantage, productivity improvement, enhanced financial per- formance, and guest service expansion (Collins & Cobanoglu, 2008; Kim, Lee, & Law, 2008; Kasavana & Cahill, 2007; Siguaw, Enz, & Namasivayam, 2000). For over a decade, industry practitioners have advocated support for the indispensible role of technology in managing hospitality transactions and operations (Collins & Cobanoglu, 2008; Ham, Kim, & Jeong, 2005; Kasavana & Cahill, 2007; Squires, 2008; Van Hoof, Combrink, & Verbeeten, 1997).

While David, Grabski, and Kasavana, (1996) suggested that technology systems may not always provide a positive impact on financial performance, such findings do not diminish the importance of front- and back-office applications to lodging operations. It has been long established that tech- nology is a critical determinant for hotel guest satisfaction (Singh and Kasavana, 2005; Van Hoof et al., 1997) and hotel choice (Cobanoglu, 2001). Hotels often utilize technology as a value-added amenity to help pro- mote differentiation, enhance guest satisfaction, and build loyalty among clientele (Cobanoglu, Ryan, & Beck, 1999). A recent American Hotel and Lodging Association survey (Brewer, Kim, Schrier, & Farrish, 2008) iden- tified both improved guest experience and enhanced guest satisfaction as major advantages of hotel technology applications. A recent trade journal article reported that incorrect or improper use of technology may produce guest dissatisfaction (Cobanoglu, 2009a). Another related article documented that in-house guests were highly dissatisfied with the implementation of a “walking” alarm clock placed in a hotel guestroom despite the fact it was easy to operate, sounded and looked attractive, and kept accurate time (Cobanoglu, 2009b). A thorough review of related literature revealed no empirical research studies that focused on the proper selection of hotel tech- nology amenities that meet guest expectations or address the issue of guest satisfaction.

Having realized that potential guests place significant emphasis on experience and satisfaction when selecting a hotel (Whitford, 1998), hotel companies tend to direct significant resources to monitoring the guest expe- rience. Given the interest of hotel companies on technology-based amenities (Erdem, Schrier, & Brewer, 2009) and the aforementioned influence of technology on guest satisfaction, the purpose of this study was twofold: to measure and document the level of guest satisfaction with existing

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274 C. Cobanoglu et al.

technology-based amenities, and to examine the scope of impact of such amenities on guest satisfaction.

REVIEW OF LITERATURE

Guest Satisfaction and Behavioral Intentions

Guest satisfaction is synonymous with customer or consumer satisfaction. Satisfaction refers to a post-purchase evaluation of product quality given pre-purchase expectations (Kotler, Bowen, & Makens, 2003). Customer is satisfied when post-purchase evaluation reveals service quality higher than guests’ expected service quality (Kotler, Bowen, & Makens, 2003). This situation is the goal for all hospitality businesses. Zeithaml, Bitner, and Gremler (2006) suggest that customer satisfaction has direct impact on customer loyalty. Different studies have investigated the relationship between service quality, satisfaction, and customer loyalty (Skogland & Siguaw, 2004; Yee, Yeung, & Cheng, 2009). There is a debate in the literature about the relationships among service quality, consumer satisfaction and consumer loyalty (Zabkar, Brencic, & Dmitrovic, 2009). Even when high service quality is provided and a customer is satisfied, it does not necessarily mean that this customer will come back (Kotler et al., 2003; Reid & Bojanic, 2009; Zeithaml et al., 2006). There can be different reasons why a customer would not come back to a property where he or she received high quality service and was satisfied. One reason could be that a customer does not want to travel to the same area, but prefers to explore something different. Another possibility is the customer’s willingness to try something new even if the customer returns to the area (he or she can intentionally look for a different hotel); and finally, a customer can be influenced by a better deal offered in another hotel. On the other hand, Yee et al. (2009) found that service quality has a significant and direct impact on customer satisfaction and that the relationship between customer satisfaction and loyalty is also highly significant. These findings are consistent with the results of Skogland and Siguaw (2004) who reported that satisfied stayers (satisfied returning customers) have the greatest loyalty.

Given the research objective, this paper concentrates on the hotel guest satisfaction with technology amenities, thus, the following sections will present the review of technologies implemented in hotels and studies which focused on guest satisfaction.

Technology in Hotels

The adoption of technology by the hospitality industry started in early 1970s and has been rapidly evolving ever since (Collins & Cobanoglu, 2008; Erdem, Schrier, & Brewer, 2009, Kasavana & Cahill, 2007; Sammons, 2000).

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Technology Amenities and Overall Guest Satisfaction 275

As a general principle, the larger and more complex a hospitality facility (i.e., overnight accommodations, food and beverage outlets, spa treatments, recreational activities, etc.) the greater its reliance on automation (Piccoli & Torchio, 2006; Siguaw et al., 2000).

Technology in hotels is often applied at two levels:

1. At the managerial and operational level; and 2. For in-room guest services (Lee, Barker, & Kandampully, 2003).

Guest oriented technological amenities are typically introduced to enhance guest satisfaction as well as the performance and functionality of hotel staff. In-room technology amenities, designed to provide a more comfortable and safe environment, may include mini-bars, electronic locks and safes, alarm clocks, desktop computers, entertainment systems, climate control systems, fire annunciator and security systems, and others (Collins & Cobanoglu, 2008). Select hotel technology amenities are presented in the Table 1. Many hospitality industry experts emphasize the importance of in-room technologies as the traveling public continues to become more technologically savvy (Higley, 2007; Munyan, 2008; Squires, 2008).

TABLE 1 Definitions of Select Hotel Technology Amenities

Technology Description

Voice over IP (VoIP) Use of Internet protocols instead of analog media to transfer voice data

In-room Pay-Per-View (PPV) Digital video, available over a television platform, available on a payment basis

Voicemail/messaging Phone-based service that enables a caller to leave a voice mailbox message

In-room accessible outlets Electrical outlets conveniently located for hotel guest access and use room

High-speed Internet access (HSIA) Internet connectivity at speeds of 1 to 100 Megabits per second (Mbps)

In-room safe Electronic safe that can be opened by electronic card or personalized code

In-room control panel Console controls room amenities (e.g., lights, temperature, curtains, blinds)

Universal battery charger Device capable of charging the batteries of various equipment and mobile devices

Electronic locking system Access security by electronic media (e.g., magnetic stripe, smart card, RFID, NFC)

In-room game system Entertainment system available in a hotel guest room (e.g., Wii or PlayStation)

In-room fitness system Specialty devices for physical exercise in a hotel guest room (e.g., treadmill unit)

In-room video checkout Television interface enabling express folio review, account settlement, and checkout

Resource: Collins and Cobanoglu (2008).

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276 C. Cobanoglu et al.

According to recent related studies, various in-room technologies are being employed to provide a more positive guest experience (Erdem, Schrier, & Brewer, 2009). Coupled with improved front office automation applications, and occasionally supported by a technology concierge, hotels are realizing increased overall guest satisfaction (Kim et al., 2008).

Given the debate in the literature about the contribution of technol- ogy to hotel guest satisfaction and implementation of numerous technology amenities in hotels, the first purpose of the study is to measure the level of guest satisfaction with different guest-oriented technology amenities. The research question was formulated as follows:

What is the level of guest satisfaction with technology-based amenities implemented by hotels?

Technology Amenity Guest Satisfaction

Product selection, based on need and expectation, are considered critical in determining customer satisfaction. Many researchers have investigated the nature of hotel guest satisfaction (Chathoth, 2007; Kandampully & Suhartanto, 2000; Shanka & Taylor, 2003; Torres & Kline, 2006). Skogland & Siguaw (2004) concluded hotel guest satisfaction is an essential compo- nent of long-term success. Kandampully and Suhartanto (2000) cited the influence of hotel image on customer loyalty and tied satisfaction to con- geniality, service, cleanliness, and price. Torres and Kline (2006) postulated a workplace model based on the assumption that employees and facilities were the most influential factors contributing to guest satisfaction.

The role and adoption rate of hospitality technology has been a focal point for several industry studies (Beldona & Cobanoglu, 2007; Ham et al., 2005; Verma, Victorino, Karniouchina, & Feickert, 2007). Despite some incongruent findings, research results support the evolving importance of technology in property selection. In a study of upscale Korean hotels, for example, guest-related interface applications (e.g., call accounting, elec- tronic locks, energy management, in-room entertainment, in-room vending and information services) were found to have no significant effect on over- all satisfaction (Ham et al., 2005). A similar study, conducted in Thailand, produced controversial findings as researcher’s acknowledged the dominant influence of technology amenities (e.g. television, mini-bar, telephone ser- vice, etc.) on customer satisfaction, without regard to socio-demographic characteristics (Prayukvong, Sophon, Hongpukdee, & Charupas, 2007).

Chathoth (2007) concluded that an important feature of hotel informa- tion technology is the delineation of significant components (i.e., reliability, responsiveness, assurance, and empathy) involved in meeting and/or exceeding guest needs. Recently, Cornell University Center for Hospitality Research conducted research to determine hotel guest technology prefer- ences (Verma et al., 2007). The study incorporated a web-based Technology

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