EHL Research News

When Technology Turns from Ally to Adversary in Hospitality

hotelier technology

Standing at a hotel reception desk, tired from travel, only to be told the system won’t let us into our room? In hospitality, technology is meant to streamline and elevate the guest experience, but what happens when it does the opposite? This article dives into the hidden emotional cost of tech failures in hotels, revealing how even the sleekest systems can backfire and why the human touch still matters more than ever.

 

Tech Trouble – Who’s to Blame?

For several decades, hotels and restaurants have been investing heavily in digitalizing their service to enhance guest experiences. Property Management Systems (PMS), mobile check-in, digital keys, and ordering apps now play a vital role at multiple touchpoints of the customer journey. Yet, technology remains a paradox: it can be both a source of efficiency and a source of frustration.

Some guests shared: “Our room lock had a software problem. Every time we tried to enter, the key didn’t work. I went to reception three times, but it still wasn’t fixed. It took us more than 30 minutes to get into our room after a long day. This is our second stay here, but probably the last one.”

“I was very disappointed. The sales department charged me over €1,300 even though I had already made a prepayment. In the end, they said it was a system error, but we still had to pay for their mistake.”

Even when frontline employees deliver exceptional service, a single technological failure can derail the entire experience. The key question then arises: When technology fails, who do customers blame—the system, the staff, or the brand?

Seeking to uncover how technology glitches shape the guest experience, I analyzed over 2,000 hotel reviews from travelers across the globe. The study examines the dominant emotions expressed by customers, such as anger, frustration, and disappointment, and explores how hotel classification (3-, 4-, and 5-star) shapes customer reactions and satisfaction ratings after such incidents.

This work sheds light on how technology-induced service failures affect customer perceptions and provides crucial insights for hoteliers seeking to balance digital efficiency with authentic human service.

According to my study, the average customer satisfaction rating is only 3.6 out of 5, revealing that guests often hold hotels accountable for technology-induced service failures. In these situations, customers tend to express their frustration through negative ratings and unfavorable word-of-mouth, effectively using online platforms to “punish” the hotel for the breakdown.

This low performance reflects a large spectrum of negative emotions voiced in the reviews, as illustrated in Figure 1. The analysis shows that sadness, unpleasantness, and stress are the most frequently expressed emotional states during such incidents. Unlike human service interactions, technology is rigid and unresponsive, and its resolution is often beyond the control of both staff and guests. As a result, customers may feel trapped or powerless, as if they are captive of the malfunction.

Importantly, these negative emotions do not stem solely from the service failure itself but also from an ineffective recovery process. When staff lack the capacity, tools, or resources to resolve a technological issue, the failure remains unresolved, intensifying customer dissatisfaction and eroding trust in the brand.

 

Negative emotions expressed during technology-induced service failures

Figure 1: Negative emotions expressed by guests during technology-induced service failures.

 

Invisible Failures, Visible Consequences: How Tech Breakdowns Hurt Guest Satisfaction

The findings of my study reveal that Wi-Fi connectivity is one of the most recurrent technology-related issues mentioned by hotel guests in online reviews. Notably, reviews that mention Wi-Fi problems are associated with significantly lower satisfaction ratings, typically between 1 and 3 points out of 5, illustrating the severity of the issue and its direct impact on perceived service quality.

Most general managers are well aware of this challenge and already invest considerable resources to enhance network performance and reliability. The findings of this study validate these managerial efforts: as illustrated in Figure 2, when Wi-Fi functions properly, customers express their satisfaction and also tend to rate the hotel above 4 or even 5 points. This demonstrates that reliable connectivity is not merely a technical feature; it is a critical driver of guest satisfaction and loyalty.

Beyond Wi-Fi, customers also frequently report system failures, website errors, and computer malfunctions. Interestingly, these are typically back-office issues that occur behind the scenes—problems guests do not directly witness but blame on the hotel.

This finding highlights the importance for hoteliers to treat back-office reliability as part of the guest experience, as when such failures occur, customer ratings tend to drop sharply, most often to between 1 and 2 points out of 5. Managers should devote sufficient attention and preventive maintenance to these invisible technological systems rather than overlooking them, assuming that customers do not notice. In the end, even unseen failures can damage customer trust and brand reputation just as visibly as a front-stage service lapse.

 

customer ratings by type of technological failure

Figure 2: Breakdown of customer ratings by type of technological failure.

 

Variability in Guest Ratings by Hotel Class: Who Suffers Most from Tech Failures?

My study further reveals greater variability and severity in customer ratings across different hotel categories, as illustrated in Figure 3. The widest gap between ratings (1 to 5) appears in three-star hotels, indicating higher inconsistency and vulnerability to negative evaluations when technology failures occur. In contrast, five-star hotels demonstrate stronger resilience, showing a tendency to maintain higher satisfaction ratings even in the presence of service disruptions. This suggests that brand reputation, service standards, and recovery capacity may help upscale hotels better absorb the negative impact of technology-induced service failures.

 

review ratings per hotel category

Figure 3: Distribution of review ratings by hotel category.

 

Rethinking Tech and Trust in Hospitality

As hotels increasingly invest in digital transformation to stay competitive, understanding the potential drawbacks, especially the impact of service failures on customer experience, is essential to maximize the return on these investments.

To ensure a seamless and excellent customer experience, hoteliers need to focus not only on human service excellence but also on the reliability and responsiveness of technology. Moreover, employees should be trained to effectively recover from technology-induced service failures to minimize their negative impact.

If you are interested in exploring this topic further, I invite you to attend my conference on Friday, October 31, where we will discuss these findings in depth with industry leaders and experts. Please find more information here.

 

 

Written by

Jie_Yu_Kerguignas
Dr. Jie Yu Kerguignas

Assistant Professor at EHL Hospitality Business School