The multipurpose application of radio frequency identification (RFID) in the Tourism industry: On a requirement analysis for employing RFID technology in the hotel sector

ABSTRACT: This study tried to evaluate the effects of Radio Frequency Identification ( RFID) as the new and latest technological advancement towards the implementation of profit chain model (Heskett et al, 1997) on international tourists (inbound) in the case of North Cyprus. North Cyprus is blessed with natural endowments and proximity to tourist market, especially the European countries. It has numerous regional and geographical advantages for a full-blown tourism industry. The study has focused on a research that targeted international tourists in four and five star hotels with an aim to explore the level of expectations and satisfactions in a hypothetical situation implementation of RFID technology. The main assumption of the study is that FRID, if its diffusion is managed adequately, has the potential to enhance the satisfaction of the consumers of services and consequently their loyalty. The underlined factors that FRID is able to generate a positive outcomes are bill settlement, location, and self-check-in in line with profit chain model and eventual customer satisfaction, loyalty and organizational profitability. For the purpose of this research, 300 questionnaires were distributed to international tourists whom 250 returned as usable items. Out of the pool of nine hypotheses, eight hypotheses were supported. The result showed that the positive effects of RFID on customer’s satisfaction and loyalty, which accompanied with increasing hotel profitability via hypothetical implementation of RFID. Keywords: RFID technology, Profit Chain Model, customer satisfaction, North Cyprus. …………………………………………………………………………………………………………………………………………………………………………………………………………