Business Process Reengineering Through Innovative Practices of Hotel Industry

Abstract

Traditional hospitality services offered by hotel industry were somehow shaken by the presence of sharing economy providers, particularly Airbnb. Some articles described the potential increase in revenues of Airbnb, however, based on 2016 performance of large hotel players their growth remain to be stable. They have noted the challenges of competition more on how they cater the demand for the services in the industry. Business Process Reengineering is one of the key functional strategies taken by these companies. Implementing operational innovation help them to continuously grow in terms of the bottom line. Operational innovation is a strategy to reduce cost by findings solutions on how to reduce the turn-around-time (TAT) on product development, customer services, or conducting activities that the company perform. (Hammer, 1990).This journal consolidates the ideas of different scholarly works to describe the approaches of business process reengineering to selected hotels in the world. The gains of the functional strategy might not be evident based on the available information. However, the strategy to reengineer the process, can be viewed, mainly driven by the challenge to address the dynamic needs of the customers and adopt with the continuously evolving technology. This journal will also highlight the importance of human resource or the work force in the success of the business process reengineering (Pongsathornwiwat, 2013). These are the important drivers that may be identified. The effect of the sharing economy is not conclusive yet but the paper describe that it seems not be a consideration of the hotels across the globe.