Digital distribution of hospitality services in the context of the COVID-19 pandemic

Myroslava Bosovska,Liudmyla Bovsh,Alla Rasulova,Margaryta Boiko,Alla Okhrimenko

doi:10.21511/tt.3(1).2022.05

Abstract

The rapid implementation of digital technologies in all spheres of society resulted from the evolution of consumer needs and IT breakthroughs, the acceleration of which was caused by the COVID-19 pandemic. Lockdowns restricted physical contacts in customer service, highlighting the urgent need to digitize the business. The difficulties in predicting socio-economic conditions of the pandemic have led to new opportunities and mechanisms for the distribution of services and the formation of economic stress resilience of economic entities. The study aims to reveal the essence of the digital distribution of hospitality services in the conditions of uncertainty caused by COVID-19. The study of services digital distribution gives awareness of the possibilities of their implementation in the activities of hospitality entities, which were considered in the context of business security and development drivers during COVID-19. To achieve the study’s goal, a comprehensive approach to the essence of digital technologies, including those specific to hospitality entities, was used. The results of the analysis allowed stating the economic feasibility of direct sales channels. In addition, prerequisites for the collaboration of hospitality entities with digital channels were determined, recommendatory markers of optimal relations with distributors using digital innovations in business were formed. Further, business strategy development took into account the peculiarities of mixing the niches of competition of business entities in digital format and traditional competition. Acknowledgment The paper shows the author’s results within the frameworks of the study, performed in 2021−2023 at Kyiv National University of Trade and Economics at the request of Ministry of Education and Science of Ukraine “Digital transformation of trade, economic and tourist systems in Ukraine” (state registration number 0121U112231) and “Forecasting the impact of the tourism system on the country’s economy” (state registration number 0122U001559).

Highlights

Digital technological innovations have radically changed the economic consciousness of the promotion and distribution of services, opening up global resources to scale the sales activities of hospitality entities
The argument in favor of digital distribution was the immersion of consumers in the Internet environment, which led to a change in customer behavior: the advantage shifted in favor of online action to find hospitality, booking, and payment services
In the falling demand for hospitality services, the study of distribution as a sales driver is an important issue for business survival and its adaptation to the pandemic crisis

Summary

INTRODUCTION

Digital technological innovations have radically changed the economic consciousness of the promotion and distribution of services, opening up global resources to scale the sales activities of hospitality entities. Consideration of digitalization is relevant because “modern business entities need to do busi- Digital technologies in the field of hospitality are ness in the paradigm of open innovation because considered as “technologies of communication, due to the speed of technological progress, it be- management, and control of the current hotel comes increasingly difficult to develop the neces- processes” (Buer, 2019) They may “bring benefits sary solutions with the use of internal resources” through multihoming, launching new products,. Even “high-technology firms’ business models functioning of both individual hotel market playchange when they transfer from physical distri- ers and the hotel business itself Such changes are bution channels to digital distribution platforms” considered at the level of individual countries

AND DISCUSSION

AIMS

Findings

CONCLUSION