Research and Study Skills

Mobile Technology Innovation:

Apple iPad in Hyatt Hotels and
Resorts

Ardy Tristianto
Diploma in International Hotel and Tourism

ManagementTable of Content
Ardy Tristianto Mobile Technology Innovation: Apple iPad in Hyatt Hotels and Resorts

Cover Page
Table of Content...............................................................................1
Introduction......................................................................................2
Implementation Strategy..................................................................2
Benefits and Drawbacks...................................................................4
Conclusions.......................................................................................5
Reference List.............................................................6Introduction
Innovation is fundamental in ensuring the sustainability of a hotel
business. It is an approach in gaining an advantage over the competitors.
Associated with the global innovation, Apple iPad is undoubtedly the latest
breakthrough in mobile technology. Therefore, Hyatt Corporation, a world-
renowned hotel brand, has implemented iPad into their operation,
purposely to enhance their business. This paper will analyse the
implementation of Apple iPad technology in Hyatt Hotels and Resorts, also
the influences it brings to the business.

Implementation Strategies
Hyatt Corporation is the core of several Hyatt-branded hotels and resorts
worldwide. Hyatt is known as a hotel company that utilizes mobile
technology. However, in applying the technology of the iPad, an in-depth
market research, planning and organizing and a considerable amount of
investments are required.

Figure 1 – The McKinsey 7-S Framework (Thompson and Martin 2005)

In implementing an innovation, such as the mobile technology, several

factors have to be considered. A hotel company has to create a strong
framework in their company management, in order to precipitate the
creativity and turn the technology into a selling point (Martin and Austen
2002). From the McKinsey 7-S Framework above, there are seven
correlated aspects, which are being emphasised. The heart of this
framework is the shared value. Hyatt, one of the leading hotel chains in
the world, does have a common goal as their shared value. It is to deliver

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Ardy Tristianto Mobile Technology Innovation: Apple iPad in Hyatt Hotels and Resorts

a unique hospitality to their guests, and simultaneously differentiating

themselves from other competitors (Hyatt Corporation 2010). This goal
develops the company’s philosophy, in relation to the system of the
organization on how they achieve that goal. Considering that, Apple, the
manufacturer of iPad, is recognized for their continuous mobile technology
innovation. Integrating Apple’s brand into their account is undeniably
reinforced the Hyatt brand’s value, which will be beneficial for their
publicity in the market. In short, the public will visualize the characteristic
and overall feature of Hyatt plainly by being aware of the use of iPad in
their operation, as shown in the Apple’s website (Thompson and Martin
2005; Apple Inc. 2010).

Secondly, a highly competitive strategy is essential in ensuring the

success of an innovation and its sustainability. Robert M. Grant (2008, p.
297) stated, “... an innovation critically determines the choice of strategy
options.” Initially, with the vast development of mobile technology, there
are number of choices to select asides from the Apple iPad, for instance,
the Android-based tablet-PC, Samsung Galaxy Tab. Hyatt’s decision to
collaborate with iPad is primarily to enhance their business. However,
Hyatt also aims aim to become the leader of innovation in hotel industry,
as well as creating a new benchmark in the business. The status of iPad
itself as the pioneer of multi-touch-screen multimedia tablet-PC is one
major factor affecting Hyatt’s decision.

Furthermore, the timing of the implementation must also be considered

carefully. One example would be the comparison between
InterContinental Hotels’ strategy and Hyatt’s. Following the trend of the
iPad in business sector and several experiments in the field,
InterContinental Hotels became the pioneer in implementing the iPad on
the daily hotel operation (Breaking Travel News 2010). Moreover, realizing
the growth of Android-based-devices’ market, they became the first hotel
chain to release an official Android application (InterContinental Hotel
Groups 2010). This example is implying the importance of the timing in

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Ardy Tristianto Mobile Technology Innovation: Apple iPad in Hyatt Hotels and Resorts

implementing the innovation. It refers to a term of “to lead or to follow”.

InterContinental Hotels, as the first hotel to implement, has the advantage
of the public acknowledgement. Hence, this gives an impression of “the
trendsetter” from the public towards InterContinental Hotels.
Contrariwise, following the innovation also has advantages. This will give
a standard to refer to. This provides the possibility of modifying the
innovation and creates a better concept than the original. In this case,
Hyatt is able to maximize it through direct partnership with Apple Inc. as
they benefit each other through their promotion strategy (Gilbert and
Birnbaum-More 1996; Apple Inc. 2010)

Benefits and Drawbacks

Implementation of iPad in the operation of Hyatt Hotels and Resorts brings
both positive and negative impacts to their business. The maximization of
the iPad’s features undeniably raises the overall performance of the
staffs, from corporate to the operational level. Looking at the managerial
prospective, iPad enhances the communication between the staffs and
even among Hyatt Hotels worldwide. One of the applications is the IBM
Lotus Notes. This application, which is widely used by the management
and marketing of Hyatt, integrates a secured mail, calendar and
organizer, supported with various adds-on. These enable the user to easily
organize any important document and retrieve the previously opened
information from several different hotel databases even without any
Internet connection. This greatly assists the staff in presenting a material
in the corporate meeting or the research and marketing of the hotel (IBM
undated). Moreover, iPad also enhances the service that they provide to
the guests, refer to the time and quality. This considerably assists the
work of concierge in fulfilling guest’s demand. For example, a concierge
will be able to visually show the facilities of the hotels as well as the
access of the map around the hotel, simply by having one gadget in their
hand. In addition, iPad accelerates the process time of check-in and
checkout of the guest by mile (Apple Inc 2010).

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Ardy Tristianto Mobile Technology Innovation: Apple iPad in Hyatt Hotels and Resorts

Nevertheless, the implementation of iPad required a substantial amount of

resources and investments. Referring to the McKinsey 7-S Framework, the
skill of the staff is highly important. It is widely known that iPad is
categorized as a user-friendly device. However, as this is a service
industry where the satisfaction of the guest is its vital aspect, a
comprehensive knowledge is required. Every staff is expected to master
the function of the device as flawlessly as possible because a single
mistake may harm the hotel’s reputation. Moreover, the sustainability of
an innovation is always becoming a major problem. It is necessary to have
a conventional backup. Besides, Hyatt needs to continuously invest on the
product development and its application (Badawy 2009).
Conclusions
In conclusion, innovation is an essential factor in ensuring the competitive
edge of a hotel in the business. The implementation of iPad by Hyatt
Hotels and Resorts is noticeably brings various benefits to the business,
from the managerial aspects to the quality of the service itself. However,
in ensuring the sustainability of it, a serious consideration towards the
requirement for the resources and a perpetual investment must be taken,
as the world of technology is continually changing.

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Ardy Tristianto Mobile Technology Innovation: Apple iPad in Hyatt Hotels and Resorts

Reference List

Apple Inc. 2010. iPad in Business: Hyatt Hotels & Resorts. [online]
Available from: http://www.apple.com [Accessed November 28 2010].

Badawy, A.M. 2009. Technology management simply defined: A tweet

plus two characters. Journal of Engineering and Technology Management
[online] 26 (4) December, pp. 219-244. Available from:
http://www.sciencedirect.com [Accessed November 27 2010].

Breaking Travel News. 2010. InterConti becomes first hotel to trial iPad.
[online] Available from: http://www.breakingtravelnews.com [Accessed
November 29 2010].

Gilbert, J.T. and Birnbaum-More, P.H. 1996. Innovation timing advantages:

From economic theory to strategic application. Journal of Engineering and
Technology Management [online] 12 (4) January, pp. 245-266. Available
from: http://www.sciencedirect.com [Accessed November 26 2010].

Grant, R.M. 2008. Contemporary Strategy Analysis. 6th ed. Oxford:

Blackwell Publishing.

Hyatt Corporation. 2010. About Hyatt. [online] Available from:

http://www.hyatt.com [Accessed November 27 2010].

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Ardy Tristianto Mobile Technology Innovation: Apple iPad in Hyatt Hotels and Resorts

IBM. undated. Lotus Notes Traveler: Lotus Notes mobile email. [online]
Available from: http://www-01.ibm.com/software [Accessed November 29
2010].

InterContinental Hotels Group. 2010. IHG Launches Priority Club Rewards

App for Android. [online] Available from: http://www.ihgplc.com [Accessed
November 28 2010].

Martin, R. and Austen, H. 2002. Innovation vs. Implementation: Mastering

the Tensions. [online] Canada: University of Toronto. Available from:
http://www.rotman.utoronto.ca [Accessed November 30 2010].
Thompson, J. and Martin, F. 2005. Strategic Management: Awareness and
Change. 5th ed. London: Thomson Learning.