Change management dynamics applied to the fast-evolving luxury hotel industry

Abstract

This master’s thesis investigates the application of change management dynamics within the fast- evolving luxury hotel industry. As this sector undergoes significant transformations driven by multiple factors such as technological advances and changing consumer expectations, the necessity for effective change management strategies becomes paramount to maintain competitiveness and ensure organizational sustainability.

The study explores various models of change management, distinguishing between episodic and continuous change, to understand the main advances within change management academic research. It highlights the importance of organizational routines as catalysts for change, emphasizing the interplay between both change processes. It also introduces the luxury hotels characteristics, external pressures, and internal dynamics. The research is based on a qualitative methodology, employing semi-structured interviews for the empirical data collection and a grounded theory approach through a thematic analysis. The data is constituted of 6 interviews from operations-related personnel from European five-stars luxury hotels, providing insights into the applications and challenges of implementing change in this dynamic industry.

Central to the findings is the diversity of organizational change perceptions which commonly define it as an inevitable, complex, and collective phenomenon driven by internal and external factors. The role of organizational agents in shaping change at different levels is also expressed, enhancing the capability of both managers and employees with different roles and impacts, as well as the various barriers to change management and practices. These agents are crucial in fostering a supportive environment, communicating a shared vision, and influencing the organization’s culture. The major obstacles for a luxury hotel to evolve include financial constraints, recruitment challenges, decision-making and high staff turnover, while resistance to change also emerges from the psychological distress of employees and the complex nature of the change processes.

The thesis challenges traditional perspectives by offering a nuanced view of change as a complex and subjective phenomenon. Thus, it stresses the importance of fostering a shared vision of change through an organization and highlights the underappreciated role of organizational structures in facilitating or hindering change. For managers, the study underscores the importance of simplifying, communicating, and institutionalizing change to foster effective management and maintain competitiveness. It also suggests the strategic use of external change agents, especially in technological and managerial innovations.