Self-Service Technology Trends in the Hospitality Industry

Introduction

The service industries have always played a significant role in the economy of the United States, and the projected growth of the service sector in the next decade and beyond is so significant it has become the stuff of legend. Reflecting its historical dominance, the service-providing sector is projected to account for all of the growth in non-agriculture wage and salary employment. Specifically, this sector's employment is expected to reach 129 million by 2014, accounting for almost 4 out of every 5 jobs in the U.S. economy (Berman, 2005, p. 45).

As this nation and the global economy in general change with regard to the development of technology as well as a broader conversion to a service industry emphasis, it is clear that the hospitality industry is and will remain a major player in economic change. "The availability and use of appropriate technologies govern the success of a service encounter" (D'Souza & Menon, 1995, p. 481). The realization of this fact is an essential element in continued success for both the smallest and the largest hospitality industry businesses. Self-service technology is, in fact, the present standard in many areas and offers substantial advantages and opportunities if implemented correctly and appropriately in the hospitality industry.

Technology Infusion in Service Encounters

Technology in general has often been made or broken in the service sector, and a more recent trend — though it goes back decades — is self-service technology. Self-service technology, or any technology utilized by the consumer to purchase or procure the services and goods he or she needs, has become almost second nature to the hospitality industry. Expansion of existing SST is likely to occur in the hospitality industry, partly as a result of the exponential growth of the service industry but also as a result of increased consumer confidence in such technology.

Self-service technologies (SSTs) are technological interfaces that enable customers to produce a service independent of direct service employee involvement. Examples of SSTs include automated teller machines (ATMs), automated hotel checkout, banking by telephone, and services over the Internet, such as Federal Express package tracking and online brokerage services (Meuter, Ostrom, Roundtree, & Bitner, 2000, p. 50).

SSTs appear almost daily in existing hospitality businesses and are in near-constant trials, introduced in forms that challenge consumers to meet their own needs through advanced vending and service acquisition technology. Consumers can now book a hotel room, a rental car, a seat on a flight, and find out what is happening at their destination — all from their home or office PC. Interestingly, they can also accomplish all of this without ever meeting a service delivery employee at most locations they visit, other than standard security and key pick-up interactions. In other areas of the hospitality industry, such as restaurants and bars, SST exists to some degree in much the same way it has for decades. In general, the higher the price paid for service, the less likely a guest is to engage in self-service beverage vending or similar SST-based transactions, yet a great deal of convenience-oriented SST is available across the industry.

The hospitality industry has been a leader in business, technology, and innovation since its beginnings in the United States. Restaurants, hotels, travel agencies, and even bars and nightclubs have historically led the way in the use, trial, and implementation of technology and in finding more cost-effective and ultimately profitable ways of doing business. In light of this history, the question arises: has the hospitality industry begun to lag behind in the acceptance of new technologies, or does it continue to lead the way and demand the creation of new technology to meet its growing needs? This paper analyzes this important question by offering a short introduction to the history of SST in the hospitality industry and then moves toward the future to determine the need for more of it — examining the demand offered by different hospitality providers and looking at possible future trends that must be met to maintain a hand in the growth market.