IT Strategy in the Hotel Industry in the Digital Era

Abstract

The hotel industry has historically suffered from a misalignment of IT and business strategies, and yet has embraced digital technologies in many aspects of its operations in recent years. This article explores and assesses the options and dilemmas facing the hotel industry in selecting and implementing information systems and digital technologies as part of an evolving IT strategy. The methodology centres on a narrative synthesis of pertinent academic literature and industry source material available on the internet. Earl’s model of IT strategy development is also used as a frame of reference to assess the options facing the industry in the digital era. The article finds that some of the digital technologies have been widely deployed in the hotel sector, and an increasing number of software packages are also now available, some of which provide the requisite functionality to allow a one-stop purchase ensuring systems integration. Other packages rely more on the use of third-party software products to provide integration of different packages and digital technology applications. Findings suggest that three perspectives need to be pursued together in a balanced fashion to develop an effective overall IT strategy—top-down technology integration, bottom-up evaluation of required functionality and digital technology options—along with the inside-out matching of these needs with what is available in the marketplace. The article provides new perspectives on developing and applying IT strategy in the hotel sector in the digital era and suggests that proven approaches to IT strategy development are still of value in the planning and management of digital transformation initiatives.