Can independent hotels survive? A case study of how technology changes the industry

Abstract

Purpose The purpose of this case study is to examine the hospitality industry by exploring the activities of a small, independent hotel. The hotel was experiencing disruption in recent years due to technology, intense competition and changes in customer preferences. Design/methodology/approach This case study uses a qualitative methodology approach by interviewing two generations of family members that were on the brink of failure. Discussions included ways and activities in which the business was exploring that could be identified to address the loss of customers and revenues because of the digitalization of the industry. Findings The case findings indicate that by creating a new hybrid business model can provide a successful direction for owners facing digitization with an industry. The findings suggest creating a new hybrid business model can provide improvements in areas such as financial stability and cost reductions, attracting new customers, improved usage of assets and the ability to leverage the technology disruption in the hospitality industry. Originality/value This study provides a reflective examination of a small, independent hotel facing financial collapse. However, the family members were able to use the threat of new technologies to create a new opportunity by developing a new hybrid business model that other similar businesses could explore in designing.