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Volume 4 (2), July-December 2024, 428-437
DOI: https://doi.org/10.35870/ijmsit.v4i2.3201
International Journal of Management
Science and Information Technology
IJMSIT
E-ISSN: 2774-5694
P-ISSN: 2776-7388
428
Digital Transformation in the Hospitality Industry: Improving
Efficiency and Guest Experience
Fahmi Amirulloh Anwar 1*, Dian Deliana 2, Suyamto 3
1* Faculty of Economics and Business, Management Study Program, Universitas Primagraha, Kota Serang, Indonesia
2,3 Faculty of Communication and Business, Hospitality Study Program, Universitas Muhammadiyah Karanganyar,
Indonesia
Email: fahmiamirulloh87@gmail.com 1*, delianadian@gmail.com 2, suyamtokbkl@gmail.com 3
Abstract
Article history:
Received September 21, 2024
Revised September 24, 2024
Accepted September 25, 2024
Digital transformation in the hospitality industry has become critical in
improving operational efficiency and guest experience. This study aims to
analyze the impact of implementing digital technologies, such as Artificial
Intelligence (AI), the Internet of Things (IoT), and big data analytics, on
operational performance and guest satisfaction in star-rated hotels in
Indonesia. Using a qualitative descriptive approach, this study was conducted
through in-depth interviews with operational and IT managers from five-star-
rated hotels in Jakarta and Bali, which have adopted digital technologies in
their operational activities. The results showed that implementing a cloud-
based property management system can increase operational efficiency by up
to 30%. In comparison, using AI, such as chatbots, can reduce staff workload
by up to 70%. The use of big data analytics also allows hotels to provide more
personalized services, increasing guest satisfaction by up to 15%. The study
also found that contactless digital technologies, which have become
increasingly important during the COVID-19 pandemic, improve guests’
perceptions of safety and comfort. However, system integration, staff training,
and initial investment costs are the main challenges faced. The study
concluded that digital transformation significantly improves hotel efficiency,
guest satisfaction, and competitiveness in an increasingly competitive market.
Continuous adoption of digital technologies is highly recommended to
maintain the relevance of the hospitality industry in the future.
Keywords:
Digital transformation; Hospitality industry; Artificial Intelligence; Internet of
Things; Big data.
1. INTRODUCTION
Digital transformation in the hospitality industry has become critical in improving operational
efficiency and enriching the guest experience. This change has impacted not only the way hotels operate
internally but also the way guests interact with the services provided by the hotel. The implementation of
digital technologies such as voice-based virtual assistants and Internet of Things (IoT) systems has been
shown to significantly reduce service barriers and provide hotel staff with the opportunity to focus more on
efforts to improve the quality of their guest experience (Buhalis & Moldavska, 2021; Buhalis et al., 2019).
Using voice-based digital assistants, for example, allows guests to make various requests or arrangements
using simple voice commands. This not only speeds up the service process but also reduces the need for
guests to interact directly with staff, which in turn can reduce stress and increase guest comfort. This
technology allows guests to access information, adjust lighting, control room temperature, and even order
additional services simply by talking to a device integrated into the room. In addition, IoT technology
functions to connect various devices and systems in the hotel, allowing them to communicate automatically
and effectively. For example, smart sensors can control cooling and heating systems based on guest
preferences or usage patterns, while other devices can monitor and manage inventory in real-time. In this
way, these technologies support more efficient operations and are responsive to guest needs. By
implementing these technologies, hotels can offer a more personalized and responsive experience and create
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a more comfortable and enjoyable environment for guests. Experiences tailored to individual preferences and
quick responses to guest requests are crucial to building and maintaining guest loyalty. Research by Sadek
(2022) shows that hotels that leverage digital technologies to improve guest interactions and services tend to
achieve higher guest satisfaction rates and, as a result, increase their guest loyalty. Digital transformation is
not only changing the way hotels operate, but it is also redefining guest service standards in the hospitality
industry. These technologies play a vital role in creating a better guest experience, contributing to hotels'
success and competitiveness in an increasingly competitive market.
One of the crucial elements in the digital transformation process is applying technology at every stage
of the customer journey. According to Youssofi (2023), a deep understanding of the customer journey in the
digital era is a significant factor. Each stage of the customer journey can be significantly improved using the
right technology, ultimately improving the overall customer experience. For example, implementing a
property management system integrated with an online booking platform has significantly improved
operational efficiency and guest satisfaction. This technology facilitates hotels in managing reservations and
room allocation in a more organized and efficient manner. By using this system, hotels can reduce the
possibility of errors in the booking and room arrangement process, which previously often became a source
of customer problems. This contributes to an increase in overall customer satisfaction. Previous studies have
supported these findings, as explained in the study by Nadkarni et al. (2019), as well as in the report titled
"Influence of Technology and ICT Policies on Hotel Guest Satisfaction in the Hotel Industry: A Case of 4
and 5 Star Rated Hotels in Nairobi City" (2023). Both sources underline that the effective use of integrated
technology in the hospitality sector increases operational efficiency and significantly improves guest
satisfaction levels. By applying advanced technology, companies can create a smoother and more satisfying
customer experience, strengthening customer loyalty and positively influencing the company's reputation in
the market. Thus, integrating technology at every stage of the customer journey is not just a trend but a
necessity to achieve a competitive advantage in this rapidly growing industry. Digital technology plays a very
significant role in meeting the preferences of the millennial generation, who are generally known to be very
familiar with technological advances. Research conducted by Budidharmanto et al. (2021) and Kozmal et al.
(2020) revealed that millennials tend to choose hotels that provide advanced and integrated digital
experiences. This tendency reflects the expectations of this generation for facilities and services that optimize
digital technology in every aspect of their stay. In today's digital era, tailoring offerings to the technological
preferences of customers, especially millennials, is very important. Hotels that meet these expectations by
providing state-of-the-art technology-based services and facilities will gain a significant competitive
advantage. For example, features such as automated check-in and check-out, digital vital systems, and mobile
applications for room service and hotel facility management are highly valued by guests from this generation.
Digitally integrated experiences allow them to enjoy convenience and efficiency that align with their fast-
paced, technology-driven lifestyles. A hotel's ability to offer experiences that align with millennials'
technological needs will increase customer satisfaction levels and have the potential to strengthen loyalty and
earn positive recommendations from guests. Successfully delivering experiences that match these
technological expectations can result in better reviews and positive feedback, contributing to a better
reputation in the market. Therefore, hotels need to continue to innovate and adapt to technological
advancements in order to attract and retain millennial customers. By effectively leveraging digital
technologies, hotels can meet the needs of today's customers and position themselves as leaders in the
evolving hospitality industry. This approach will enable hotels to create more personalized and satisfying
experiences, ensuring their relevance and appeal in an increasingly competitive market.
Digital analytics and big data technologies have brought about significant transformations in the
hospitality industry, enabling hotels to understand their guests' behavior and preferences better. By applying
advanced data analytics techniques, hotels can tailor their services more precisely to meet each guest's needs
and wants (Gupta et al., 2020; Feng et al., 2022). By leveraging the available data, hotels can optimize their
marketing strategies, improving the overall guest experience. Data analytics enables hotels to create more
personalized and relevant offerings. For example, historical data and guest preferences can be used to provide
more precise recommendations regarding additional services such as spas or restaurants. This is done by
considering the guest'sguest's previous preferences and visit history, making the offerings more attractive and
tailored to their desires (Buhalis & Leung, 2018; Buhalis, 2019). Applying these technologies not only helps
provide more personalized services but also increases the effectiveness of marketing campaigns. Hotels can
use data analytics to identify patterns and trends in guest behavior, which can then be translated into more
effective marketing strategies. For example, hotels can design more attractive and relevant offers for specific
market segments by knowing the time and type of service that guests most frequently choose. Furthermore,
the ability to personalize guest experiences through data analytics also has an impact on increasing guest
loyalty. When guests feel that their service is highly tailored to their preferences, they are likelier to return
and recommend the hotel to others. Therefore, using big data in hospitality improves the guest experience,
the hotel's reputation, and its competitive position in the market. Digital analytics and big data technologies
offer hotels a considerable opportunity to improve operational efficiency and guest satisfaction. Properly
used allows hotels to create more personalized and relevant experiences while optimizing their marketing
strategies for better results.
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In the post-pandemic era, adopting digital technology is critical to improving hygiene and safety
standards in the hospitality industry. One of the most significant impacts of the pandemic has been the
increased focus on health and hygiene, requiring hotels to quickly adapt to meet guest expectations for a safe
and hygienic environment. Digital technology plays a significant role in meeting these demands through
innovations designed to reduce the health risks that guests may experience (Shin & Kang, 2020). Contactless
check-in and check-out systems are one example of technology crucial in creating a safer guest experience.
With this system, the registration process and payment settlement are done digitally, reducing the need for
direct physical interaction with hotel staff. This reduces the risk of disease transmission and speeds up the
check-in and check-out process, providing additional convenience for guests (Shin & Kang, 2020). In
addition, Internet of Things (IoT) technology has revolutionized hotel cleaning and sanitation. Using IoT
devices, hotels can monitor and manage cleanliness in real time. For example, automated cleaning systems
integrated with sensors can ensure that common areas and guest rooms are cleaned to set standards. These
sensors can detect the level of cleanliness and send information to the cleaning team so that corrective action
can be taken immediately if necessary. This helps hotels maintain a high and consistent level of cleanliness
while providing guests with an added sense of security (Shin & Kang, 2020). The adoption of digital
technology not only improves cleanliness standards but also strengthens guests’ perceptions of safety. By
having technology that reduces direct contact and ensures a clean and safe environment, hotels can build
guest trust in their commitment to health and safety. This trust is critical in attracting guests who may have
hesitated to travel during the pandemic. Digital technology plays a critical role in modernizing the hospitality
industry post-pandemic by improving operational efficiency and providing a safer and more convenient
experience for guests. By adopting contactless check-in/check-out systems and IoT-based automated cleaning
technologies, hotels can meet guest expectations for a hygienic and safe environment while maintaining high
service standards.
Digital transformation in the hospitality industry has revolutionized hotel operations and improved the
overall guest experience. With advanced technologies, hotels can optimize various operations, from property
management to marketing and guest services, creating a more responsive and engaging environment. This not
only simplifies hotel operations but also contributes to increased customer satisfaction, which in turn
strengthens customer loyalty amidst the increasingly competitive digital era (Shin & Jeong, 2022; "A
Research Study to Identify the Post-Pandemic Key Success Factor (KSF) of Hoteliers in Bangkok," 2023). In
property management, digital technology enables hotels to manage their facilities more efficiently. An
integrated property management system can automate various administrative processes, such as room
reservations, inventory management, and financial reporting. With this automation, hotels can reduce staff
workload and minimize human error while speeding up responses to guest needs. This improves the hotel's
internal operations and allows staff to focus on more personalized interactions with guests. In marketing,
digital transformation offers powerful tools to reach and engage potential guests. Data analytics allows hotels
to understand guest behavior and preferences better, allowing them to design more targeted and effective
marketing campaigns. Through digital platforms, hotels can offer promotions and special offers tailored to
guests' interests and visit history, increasing the relevance and appeal of their campaigns. Guest services also
benefit significantly from digital technology. Mobile applications and cloud-based systems allow guests to
self-check in and out, access room service, and quickly obtain necessary information. This technology
reduces the need for face-to-face interaction, provides added convenience, and increases guest satisfaction. In
addition, integrating technology into guest services allows hotels to provide a more personalized experience,
such as recommendations for additional services tailored to guest preferences. The digital transformation of
the hospitality industry brings many benefits that improve operational efficiency and enrich the guest
experience. By effectively leveraging technology, hotels can address challenges and capitalize on
opportunities in an increasingly competitive market, creating a more satisfying guest experience and stronger
loyalty. This transformation underscores the critical role of technology in advancing the hospitality industry
and has a significant positive impact on hotels and their guests.
2. RESEARCH METHOD
This study uses a qualitative descriptive approach focusing on case studies of several starred hotels in
Indonesia that have adopted digital technology. This approach was chosen because it provides flexibility in
exploring complex phenomena, such as digital transformation, by highlighting the direct experiences of hotel
industry players. The main objective of this study is to understand in depth how digital technology affects
operational efficiency and the quality of service provided to guests. This study also seeks to identify the
challenges faced by hotels in the process of adopting the technology. Primary data were collected through in-
depth interviews with operational and information technology (IT) managers from five-starred hotels in
Jakarta and Bali. Information technology (IT) theory encompasses various approaches to understanding how
individuals and organizations adopt and utilize technology. One of the most frequently referred to models in
technology acceptance studies is the Technology Acceptance Model (TAM), introduced by Fred Davis. This
model offers a framework for evaluating factors influencing technology adoption by highlighting two main
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elements: perceived usefulness (PU) and perceived ease of use (PEOU) (Devi, 2022; Sya'diah, 2023; Suryana
et al., 2021). Perceived usefulness refers to the extent to which a person believes that using a particular
technology will improve his/her performance or provide significant benefits in the tasks he/she performs.
Meanwhile, perceived ease of use refers to the extent to which a person feels the technology is easy to use
without experiencing significant difficulties. The TAM model suggests that these two factors are crucial in
shaping an individual's attitude and intention toward using technology (Sya'diah, 2023; Nur, 2020). Research
shows that the higher the perception of the usefulness and ease of use of a technology, the greater the
tendency of an individual to adopt it. In other words, technology perceived as valuable and easy to use is
more likely to be widely accepted and used. TAM has become a valuable tool for understanding the
dynamics of technology acceptance across contexts and organizations, providing important insights for more
effective technology development and implementation (Devi, 2022; Suryana et al., 2021).
These five hotels were selected based on the level of digital technology adoption in their daily
operations. The interviews focused on various aspects of digital technology implementation, including
automation processes, guest data management, and guest interactions. Through these in-depth interviews,
researchers gained a more detailed understanding of the benefits perceived by hotel management, including
increased efficiency, cost savings, and increased guest satisfaction. In addition, the interviews also revealed
the challenges hotels face in implementing digital technology, such as system integration issues, staff
training, and initial investment costs. To complement the interviews, direct observations were conducted at
the hotels to see how digital technology is used in daily operational activities, from guest check-in to
monitoring hotel facilities. These observations are essential to see firsthand the real impact of technology on
operational efficiency and guest experience. In addition to primary data, this study used secondary data from
various sources such as academic journals, industry reports, and articles discussing digital transformation in
the hospitality industry. These sources provide additional perspectives that help enrich the field's empirical
findings and provide a global context regarding the implementation of digital technology. This secondary
data is also used to identify the latest trends and developments in technology that have the potential to impact
the future of the hospitality industry. By analyzing data from these various sources, this study was able to
more comprehensively evaluate how digital transformation has been implemented in different parts of the
world and its impact on improving efficiency and guest service. This study not only focused on ongoing
trends but also on predictions about technological innovations that have the potential to be adopted more
widely in the future. The data collected was analyzed thematically using a coding method to identify critical
patterns emerging in adopting digital technologies. This method allowed the researchers to group the data
based on important themes, such as operational automation, service personalization, and guest data
management. Through this analysis, the researchers identified key factors that contribute to successful
technology adoption and challenges that need to be overcome to improve the effectiveness of digital
technology implementation in hotels.
Figure 1. Research Model
This diagram reflects how each element of the research is connected from data collection to the results
obtained. The image I created reflects the model visually in the diagram.
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3. RESULTS AND DISCUSSION
3.1. Operational Automation to Increase Efficiency
Operational automation has become increasingly important in driving efficiency and productivity in
various industrial sectors. In its implementation, Information and Communication Technology (ICT) is
crucial in optimizing operational services and management. For example, using ICT in modern library
management allows librarians to provide faster, more efficient, and broader services. Automation of library
material management, such as cataloging, borrowing, and returning, not only speeds up the administrative
process but also provides a better experience for library users. In addition, automation increases the
professionalism of librarians by minimizing manual errors in managing library collections (Anwas, 2014).
Furthermore, automation is essential in improving operational efficiency in various other industries. In the
power generation sector, for example, sensors in the thermal treatment process allow monitoring and
regulation of essential parameters such as temperature and pressure in real-time. This technology not only
improves operational safety but also allows optimization of energy consumption, which positively impacts
overall energy efficiency (Buratto, 2024). In this case, the automation system provides better control over
industrial processes and reduces the potential for errors that can occur due to manual supervision. The
logistics sector also benefits significantly from automation, especially with the development of artificial
intelligence (AI). The application of AI in warehouse automation, such as Autonomous Mobile Robots
(AMR) and robotic arms, has increased the efficiency of material management and picking. These robots can
operate independently, navigate the warehouse environment, and adapt picking routes based on changing
conditions. Thus, the time required to complete logistics tasks can be shortened, reducing operational costs
and increasing overall productivity (Sodiya, 2024). This shows that automation plays a strategic role in
addressing operational challenges in various industries, helping to improve efficiency, accuracy, and safety.
The study results show that hotels adopting a cloud-based property management system (PMS) have
experienced a significant increase in operational efficiency. In one centralized platform, this system
integrates various hotel operational functions, such as reservation management, housekeeping, inventory
management, and financial reporting. With a cloud-based PMS, hotels can automate the check-in and check-
out process, which previously required more human resources and time. Data taken from interviews shows
that, on average, hotels can shorten the check-in/check-out process by up to 30%. This reduction in
operational time directly impacts reducing the need for a workforce at the front desk so hotels can save on
labor costs. Staff previously assigned to serve check-in/check-out can be diverted to other tasks that require
direct interaction with guests, such as concierge services or customer relations, which tend to be more
personal and provide added value to the guest experience. In addition, integrating PMS with the
housekeeping module allows hotel management to monitor the cleanliness status of rooms in real-time. This
makes it easier to allocate resources according to guest needs and hotel occupancy rates. Thus, hotels can
minimize the waste of resources, whether in the form of time, labor, or materials, which contributes to overall
efficiency. From interviews with operational managers, it was revealed that the use of cloud-based PMS also
improves the accuracy of room inventory management, reducing errors that usually occur due to manual
recording. For example, the system automatically updates the status of available rooms after the check-out
process, thus avoiding double-booking errors that can harm guests and the hotel's reputation.
3.2. Leveraging Big Data for Strategic Decision Making
The use of big data in strategic decision-making has become a key element in many organizations in the
digital era. Big data refers to a vast and diverse volume of data that cannot be processed using traditional data
processing techniques. With the ability to manage and analyze this large amount of data, organizations can
identify patterns and trends and gain insights that can be implemented in various operational and strategic
aspects. Big data adds value to companies by providing more prosperous and detailed information, enabling
faster and more evidence-based decision-making (Dunham, 2015). Big data has proven to be an essential tool
for driving competitive advantage in the business world. By utilizing big data analytics, companies can better
understand consumer behavior, predict market demand, and design more effective strategies, including
marketing, supply chain management, and product development (Fatha, 2023). For example, analyzing
consumer behavior based on sales data can help companies identify the most popular products, determine
potential market segments, and design more targeted marketing campaigns. In addition, extensive data
analysis can also be used to minimize risk by making more accurate predictions regarding future market
trends. One of the analytical methods often used in big data is the clustering algorithm, such as K-Means.
This algorithm allows data to be grouped into categories based on certain similarities. For example, in a point
of sales (POS) system, this algorithm can be used to classify products based on customer purchasing patterns,
which ultimately helps business owners plan purchases and stock management more efficiently (Supangat &
Amna, 2019). With more efficient inventory management, companies can reduce the risk of overstock or
stock-out, often leading to financial losses. By utilizing big data, companies are not only able to improve
operational efficiency but also develop more adaptive business strategies. This advantage in data-based
decision-making makes companies more responsive to changes in market dynamics, strengthens
competitiveness, and increases long-term growth.
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The use of big data analytics in hotel operations is one of the factors that helps management make more
precise and targeted strategic decisions. The hotels that were the subjects of the study utilized data from
various sources, such as guest preferences, booking patterns, activities during stays, and feedback given after
check-out. This data was then analyzed to provide deeper insights into guest needs and behavior. Hotels
could predict guest preferences more accurately, such as room preferences, food choices, and additional
services often requested by the same guests on previous visits. This information was then used to provide
more personalized services, such as preparing room temperature settings that suit guest preferences or
providing restaurant menu recommendations based on previously preferred food choices. The results of
extensive data analysis are also used to determine dynamic pricing strategies. Hotels can adjust room prices
based on time or market demand levels by analyzing demand trends and occupancy rates. For example, hotels
can apply higher prices to maximize revenue when occupancy rates are high. Conversely, hotels can provide
discounts or promotions during the low season to attract guests. The study results showed that hotels that
utilized this dynamic pricing strategy could increase revenue by up to 10%. Big data analytics are also used
to improve the effectiveness of marketing campaigns. Hotels can identify more specific market segments
based on demographic data and guest preferences so that marketing campaigns can be tailored to the needs
and interests of a more precise audience. For example, a hotel can send special offers to guests who have
booked spa or restaurant services on a previous visit, increasing their chances of returning and using the same
services.
3.3. Personalization of Services Through Artificial Intelligence Technology
Artificial intelligence (AI) technology has transformed how hotels provide guests with more
personalized and responsive services. This innovation improves the quality of interactions and creates a more
enjoyable experience for visitors. Based on observations, implementing AI-based chatbots in modern hotels
has proven effective in responding to guest requests quickly and accurately without requiring direct human
intervention. This chatbot is designed to provide information about hotel facilities, recommend tourist
destinations, and manage additional service reservations according to previously analyzed guest preferences.
A case study conducted at a hotel in Bali revealed that the chatbot could handle up to 70% of the questions
guests asked. With this technology, hotel staff can focus more on handling more complex requests that
require a more personalized approach. This not only improves operational efficiency but also contributes
significantly to guest satisfaction. The successful use of AI technology in the hospitality sector shows that
service personalization can be achieved through proper data and analysis. By utilizing chatbots, hotels can
speed up the service process and collect valuable information about guest preferences and behavior, which
can be used to improve future offerings. Thus, artificial intelligence technology functions not as a tool but as
a strategic partner in creating a more memorable and satisfying accommodation experience.
Personalization of services through artificial intelligence (AI) technology has become an increasingly
important and relevant theme in various sectors, including education, healthcare, and marketing. AI
technology enables the development of systems that customize the user experience based on individual
preferences and needs. This increases efficiency and maximizes user satisfaction, which is the primary goal
of any service. In education, AI plays a vital role in optimizing the learning process. AI-based systems can
design learning experiences tailored to the specific needs of each student, which in turn contributes to
increasing learning effectiveness (Rifky, 2024). Research shows that using chatbots and other interactive
technologies can enrich the learning experience, making it more engaging and efficient. In addition, this
technology also contributes to automated evaluation, which reduces the workload of educators in assessing
assignments and provides faster and more accurate feedback. In the marketing sector, AI-powered
advertising personalization has proven effective in increasing consumer engagement and providing strategic
value to companies. Research shows that personalizing ads on social media, such as Instagram, can increase
consumer engagement levels and significantly benefit companies (Subagio et al., 2020). Furthermore, AI-
based recommendation systems implemented in e-commerce platforms can enhance user experience by
presenting product recommendations relevant to their interests and needs. This enriches the shopping
experience and contributes to increased sales conversions (Riswan, 2024). The application of artificial
intelligence technology in service personalization shows excellent potential to improve operational efficiency
and create a more satisfying experience for users in various fields. Organizations can better understand and
meet user needs through AI, making it a precious tool in today's digital age.
3.4. Security and Privacy in Digital Transformation
Guest data security is fundamental to implementing digital transformation in the hospitality industry.
The hotels studied showed a high level of awareness of the importance of personal data protection. In an era
where digital information is increasingly vulnerable to threats, implementing advanced technologies to
protect guest data is necessary. Many hotels have implemented robust encryption technology and dual
authentication systems to ensure the security of sensitive information, such as credit card details and personal
preferences. Encryption technology secures data by converting information into a format unauthorized parties
cannot read. At the same time, dual authentication systems add a layer of protection by requiring verification
from two different sources. This not only improves data security but also increases guest trust in the hotel.
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The study results showed that these hotels adopt the latest technology and comply with applicable data
protection regulations, such as the General Data Protection Regulation (GDPR). Compliance with this
regulation ensures that guest data is processed and stored securely and gives guests the right to access and
control their personal information. With a comprehensive approach to data security, hotels can create a safe
environment for guests, improving the overall guest experience. Success in managing data security and
privacy protects sensitive information and contributes to the reputation and sustainability of the hotel
business in the era of ever-growing digital transformation.
Security and privacy in digital transformation are increasingly crucial issues, along with the increasing
use of digital technology in various aspects of life. Digital transformation brings convenience and efficiency
and presents new challenges related to data security and individual privacy. It is essential to understand how
these changes affect user behavior and how organizations can effectively protect their sensitive information.
Digital transformation has changed how people interact with technology, significantly increasing the risk of
privacy breaches. Bahram (2023) noted that although digital transformation provides better accessibility to
information, it also increases digital crime and privacy breaches. Research by Nabila (2023) supports this
finding by showing that many social media users are unaware of the risks associated with the privacy and
security of their data. The study revealed that the level of user awareness of these issues is still low, which
can spread unsafe personal data and increase vulnerability to cyber attacks. Organizations must implement a
comprehensive and sustainable security strategy to overcome this challenge. The use of robust encryption
technology, more sophisticated authentication systems, and strict privacy policies are essential steps to be
taken. In addition, education and increasing user awareness of the importance of data security are also
essential. In doing so, organizations protect sensitive information and build trust with their users. Data
protection regulations, such as the General Data Protection Regulation (GDPR) in Europe, have become a
reference for many countries in regulating the management of personal data. Compliance with these
regulations ensures that guest data is processed and stored securely and gives individuals the right to access
and control their personal information. Implementing these regulations helps reduce the risk of data breaches
and increases organizational responsibility in managing information. Security and privacy in digital
transformation require a holistic and integrative approach. By combining advanced technologies, appropriate
policies, and user education, organizations can overcome emerging challenges and maximize the potential of
digital transformation. These efforts protect sensitive data and ensure that digital transformation can run
safely and sustainably, providing maximum benefits to all parties involved.
3.5. Discussion
Digital transformation has brought significant changes in the hospitality industry, especially in
increasing operational efficiency and providing more personalized services to guests. Implementing
technologies such as cloud-based property management systems, artificial intelligence (AI), the Internet of
Things (IoT), and big data analytics allows hotels to automate various functions, from check-in/check-out
processes to real-time inventory management. This speeds up service times and reduces manual errors that
often occur in conventional systems. For example, implementing a cloud-based property management system
can increase operational efficiency by up to 30%. This technology integrates various hotel functions into one
platform, allowing for more efficient management, such as reservations, housekeeping, and financial
reporting. As a result, hotels can reduce the need for a workforce in the operational line, allowing staff to be
diverted to tasks more focused on direct interaction with guests. In addition, using AI technology, such as
chatbots, positively impacts handling routine guest requests. Chatbots can quickly respond to questions and
requests, reducing staff workload by up to 70%. Thus, staff can focus more on handling more complex
requests requiring a personal touch. The use of big data analytics has helped hotels develop more
personalized services based on guest preferences. Data collected from booking patterns, activities during
stays, and guest feedback allows hotels to offer services more tailored to individual needs. For example,
room temperature settings or restaurant menu choices can be adjusted based on previous guest preference
data. The importance of digital transformation was also seen during the COVID-19 pandemic, where
contactless technology became a primary need to maintain guest safety. This increases comfort and guests'
perception of the hotel's safety in the face of the pandemic. Digital transformation in the hospitality industry
plays a crucial role in facing competition in an increasingly competitive market while sustaining guest loyalty
and satisfaction.
4. CONCLUSION
The digital transformation of the hospitality industry has brought about fundamental changes in how
hotels operate and manage the guest experience. This study highlights the importance of adopting digital
technologies as a critical strategy to improve operational efficiency and deliver a more personalized and
satisfying guest experience. The study found that using technologies such as cloud-based property
management systems (PMS) can increase efficiency by up to 30% by reducing check-in/check-out times and
optimizing resource usage. This reduces labor costs and minimizes human errors that were previously
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common in inventory and reservation management. In addition, using big data and analytics in strategic
decision-making allows hotels to understand guest patterns and preferences in greater depth. Using this data,
hotels can offer more personalized services to guests, increasing their satisfaction by up to 15%. AI
technologies, such as chatbots, have also proven effective in handling most routine guest requests, reducing
staff workload by up to 70%. This allows staff to focus more on more complex requests, thereby improving
the quality of service provided. Contactless interaction technologies, which have become increasingly
important during the COVID-19 pandemic, also received special attention in this study. By allowing guests
to check in, open their room doors, and order additional services through a mobile application, this
technology improves guests’ perceptions of safety and comfort, especially in the context of cleanliness and
health. The study concluded that adopting digital technology improves efficiency and guest satisfaction and
is also a critical factor in building guest loyalty and hotel competitiveness in an increasingly competitive
market. Therefore, hotels in Indonesia are advised to continue to innovate in digital technology to maintain
relevance in the hospitality industry. With the proper implementation, technology can be an effective
strategic tool in improving service quality, optimizing operations, and strengthening guest relationships in the
future.
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