The Adoption of a Smartphone App in Enhancing the Competitive Advantage of Claridge Hotel, Mayfair
Technology has enhanced the manner in which business is conducted in the hospitality industry. Many facets of operations in the hospitality industry have been affected by technological innovation ranging from the manner in which guests book their reservations to how they control the access to their rooms through their smartphones to how they even pay for the services that they received through electronic means (Kansakar, Munir & Shabani, 2018). Technology has also benefitted managements of hospitality enterprises as they are able to conduct most of their operations faster and are also able to gather data about their customer easily and even use it to enhance customer experience through the provision of quality services (Quarshie & Amenumey, 2018).
The Mayfair Claridge Hotel is a five-star hotel in London that was established in 1850 and has grown to become a place of timeless elegance and an art deco icon in the whole of United Kingdom (Hammern, 2015). The hotel is renowned for its inspiring dining, glamorous design and how it has deftly blended innovation with tradition. Its dedication to providing quality service has made the hotel a byword for luxury (Marchant, 2018). Evidently, one of the most outstanding features of Claridge Mayfair is its art deco that does not just reflect the past but also looks into the future, therefore, embracing new design and fashion (Hammern, 2015). Merchant (2018) further notes that the hotel has collaborated with several globally influential designers such as Guy Oliver, Veere Grenney, David Linley and Dian von Furstenberg to come up with some of the most exotic designs that make their interior deco exemplary.
The hotel offers a broad spectrum of services, which includes rooms and suites, restaurant and bar, health club and spa, meetings and events, afternoon teas and other special offers. The restaurants and bars include the Davis and Brook, the foyer and reading room, Claridge’s bar, the Fumoir, Wine Dinners and the Foyer Private Dining Room (Marchant, 2018). The afternoon tea consists of the English sandwiches, delicate pastries and freshly baked scones that are washed down with specially- selected tea (Hammern, 2015). The special offers include timeless weekends; stay four longer which includes four nights at the cost of three; suite heaven where one stays in a suite and toast their memorable stay over a complimentary bottle of champagne; winter nights that involves shopping privileges and special winter rates that help a guest to savour London during winter; happy families that entails the fun-filled moments of discovering London with the starting at the hotel with two rooms and treats for each family member (Marchant, 2018).
The use of App would enhance the customer experience at the hotel by allowing the guests to choose channels on the television sets in their rooms, control the temperature settings, lower their blinds and even control the lighting in their rooms. This will provide the guests with a considerable measure of convenience that will go a long way in enhancing their experience at the hotel.
The Macro and Micro Environment of Claridge Hotel, Mayfair
The examination of the internal and external environment in which Claridge Hotel, Mayfair operates in is essential in understanding why the e-strategy is quite compelling for the hotel. The internal factors include the strength and weaknesses of the hotel. One of the strong factors of the hotel is that it is based on a concept that is well-defined, which gives it a rather unique identity that is enhanced by a modern character considering the four levels of its hospitality product (Henley, 2015). The hotel is also well experienced in providing quality services to diverse guests, which in some cases has made it a cultural attraction (Marchant, 2018). The hotel also enjoys autonomous control over its operations, which allows for the expressions for its passion for hospitality (Henley, 2015). Furthermore, the hotel leverages on the low costs of soft-branded distribution channels through sharing the costs of purchasing, technology, and distribution. However, the hotel grapples with some significant weaknesses internally. One of this weakness is the high cost of maintenance and staffing (Marchant, 2018). Besides, the hotel also lags behind in regards to the need for constant re-adaptation in a bid to respond to the fact changing demands of the market (Hammern, 2015).
There are also some external factors that affect the operationalization of the Claridge Hotel, Mayfair, which can be characterized either as opportunities or threats. The Claridge Hotel, Mayfair can increase its profitability through leveraging on the unique needs and wants of the current market, which demands traditional hospitality, quality tourism, diversity of experience, sustainable hotels, and personal approach (Henley, 2015). The other opportunity available for the hotel is the optimization of Customer Relationship Management (CRM) databases and the customer choice modeling design, which enable hotels to personalize their products and services, therefore, increasing customers’ retention, loyalty, and satisfaction (Hammern, 2015). The hotel can also take advantage of the power of prominent influencers online and opinion leaders to push their products awareness to the niche markets that are hard to reach using conventional media. There are also numerous ICT solutions that make it possible for businesses to market their product and services on a one on one basis with the consumers (Marchant, 2018). Furthermore, the Internet provides the hotel with the opportunity for developing websites through which it can convey the pleasurable experiences that it provides to a cross-section of market segment both near and far.
One of the threats to the operationalization and profitability of Claridge Hotel, Mayfair is the trend of aggressive down-pricing by other hospitality establishments such as box hotels, which are seeking to expand their market share (Henley, 2015). The hotel is also threatened by the difficulty involved in achieving brand loyalty given the increasingly unpredictable behavior of modern consumers. This has made it increasingly hard for hospitality establishments to segment their consumers based on conventional metrics such as income, education, geographic origin or social class (Hammern, 2015). The hotel is also threatened by the increase in the number of emerging low service stylized imitators and concepts who charge far less to provide guest with almost similar experiences that the hotel provides. They are also challenged by the fast-changing need of the modern consumer who is not only well-informed but is also familiar with various hospitality experiences and is demanding for value and the quality for their expenditure (Henley, 2015).
The micro and macro environment analysis of Claridge Hotel, Mayfair indicates that the hotel could leverage on the App to provide customers with a unique experience that may significantly influence their loyalty and at the same time keep attracting new customers.
The Existing Capabilities to be Enhanced by the E-strategy
The Claridge Hotel, Mayfair is regarded as very famous in terms of royalty and celebrities due to its iconic image. However, in recent years, the hotel has undergone make changes that have combined both modernism and post-modernism. There are, therefore, various capabilities that the e-strategy could enhance (Marchant, 2018). These capabilities include the private theatre, the 24-hour business center that offers the latest audiovisual equipment (Henley, 2015). The bedrooms in the hotel have contemporary, elegant décor; they are adjoined to decadent Italian marble bathrooms that have complimentary toiletries. The bedrooms are also furnished with Vispring beds with 350 count Egyptian cotton bedding and down pillows. The rooms are equipped with Samsung television sets that can access up to 300 channels in multiple languages (Marchant, 2018). The guests can also access the Internet from these rooms through high-speed WiFi. The hotel provides guests in some selected suites with iPads that enables them to browse the services and menus that the hotels are providing (Hammern, 2015). The guests can also access 3-D cinema, 24-hour gym, Palm Beach Casino and a tranquil may Fair Spa. These features of the Claridge Hotel, Mayfair will benefit from the invention of the App as its e-strategy (Henley, 2015).
Competitive Advantage Created by the E-Strategy
There are various ways in which the adoption of the App as an e-strategy for the hotel. As Kansakar, Munir and Shabani (2018, p. 16) note, currently, guests are highly likely to recommend a hotel that is up-to-date. The App will help Claridge Hotel, Mayfair to stay ahead of the technological curve in comparison with its competitors by integrating modern technology into its establishments such as smart television, mobile keys, room controls, and interactive digital signage.
The adoption of the e-strategy will also create a competitive advantage of the hotel by enhancing the security of the guests and their property. As Firoiu and Croitoru (2015, p. 19) note, customers trust the hotels where they have made reservations to protect their personal data. Such personal data include billing addresses, credit card numbers and the contact information. The use of the app could include back up capabilities and modern software application that can safeguard the personal information of the guests; this will provide them with a considerable measure of confidence and loyalty to the hotel, making them willing to recommend its services to others.
The other benefits that Claridge Hotel, Mayfair will attain in the quest to develop a competitive advantage are related to effectiveness and efficiency. Quarshie and Amenumey (2018, p. 41) point out that most hotel guests do not like to wait for long before they are served. For instance, the use of tablets at the front desk helps in streamlining the check-outs and check-ins processes in hotels. This invariably improves guests’ satisfaction and also saves the hotel sufficient time with which they can then focus on improving on their guests’ experiences.
The use of technology at the hotel such as the App enhances the customer experience through simplifying processes, a factor that may contribute to their preference of the hotel over the competing others. According to Kansakar, Munir and Shabani (2018, p. 10) integrated smartphone tools have conveniently provided guests will all the needs they require all in one place. With the development of a customer hotel application, it becomes increasingly easier for the guests to locate particular amenities at the hotel such as the spa, gym, laundry room, pool or bar. They can also keep track of their expenses and may also leave their reviews of the hotel facility. Quarshie and Amenumey (2018, p. 42) note that this is essential given that in the future innovations such as keyless access are going to become the norm in the tourism industry. The trends may even change in the future to include facial recognition.
Conclusion
The use of technology in the hospitality industry has played an integral role in enhancing the delivery of services to the guests and also in enhancing the operationalization of the entities. The adoption of the App as the e-strategy for Claridge Hotel, Mayfair will be a boon in making the hotel attractive to customers. This is especially critical given the fact that the hotel straddles between traditional and post-modernity trends in terms of its décor and the unique cultural offerings to its guests. The hotel should, therefore, adopt the technology as a way of enhancing the guest experiences at the hotel. It is, however, important that the development of the app be based on the identified needs of the guests. This will also be helpful in the further modifications that will be made on the app, as they will basically seek to provide solutions to the customer’s identified needs.
Therefore, the paper concludes that the e-strategy will help Claridge Hotel, Mayfair to sustain its competitiveness in the London market and leverage on its unique strengths, making it the preferable destinations for guests. This affirms the relevance of technological innovations in the current hospitality industry, particularly in regards to the development of solutions that adequately address the needs of the hotel guests. In sum, hotels such as Claridge Hotel, Mayfair will have to rely on technology to safeguard their profitability.
References
Firoiu, D., & Croitoru, A.-G. (2015). The Information And Communication Technology — Impact On The Hospitality Industry In Romania. Ecoforum , 4(1).
Hammern, J. (2015). Playgrounds for sheikhs and oligarchs: the secret world of London’s luxury hotels . The Guardian .
Henley, J. (2015). Hotel wars: the battle for Claridge’s, the Connaught and the Berkeley. The Guardian. Retrieved from https://www.theguardian.com/business/2014/sep/06/hotel-wars-claridges-connaught-berkeley
Kansakar, P., Munir, A., & Shabani, N. (2018). Technology in Hospitality Industry: Prospects andChallenges. 5(2). Retrieved from https://arxiv.org/pdf/1709.00105.pdf
Marchant, S. (2018). The Palace of Mayfair. The Luxury Explorer. Retrieved from https://www.luxuryexplorer.com/UK/London/Claridge-s
Quarshie, J. M., & Amenumey, E. K. (2018). Utilisation of information and communication technologies in hotel operations in the central region of Ghana. Journal of Hospitality Management and Tourism, 9(1), 1–8.
