E-Payment In Hospitality Industry: A Catalyst For Generating Revenue In Some Selected Outlet

The general objective of this study was to assess the influence of e-payment in hospitality industry as a catalyst for generating revenue in some selected outlet in Enugu State. This study adopted descriptive research design to integrate various elements used in carrying out this study. Population of the study consisted of 65 respondents at Oakland hotel and Silicon Valley Resort. A sample size of 65 respondents was studied. A questionnaire was used for data collection and both descriptive and inferential statistics were deployed. The findings revealed that there exists a significant relationship between e-payment benefits and revenue performance, r (0.427); p-value < 0.01. The findings revealed that there exists a significant relationship between e-payment challenges and revenue performance, r (0.403); p-value < 0.01. Since the p-value < 0.05. The findings revealed that there exists a significant relationship between e-payment strategies and revenue performance, r (0.461); p-value < 0.05. This study concludes that e-payment technology enhances convenience. This is crucial for the hotel to influence more sales from various markets since it allows customers to pay for services at their own comfort. This study concludes that there is a relationship between electronic payment challenges and revenue performance in the organization. This study also concludes that partnership with various payment agents or partners to facilitate payments for the hotel is essential since the partners have reliable and effective payments systems that are used across the world, therefore, this partnership will be crucial. This study concludes that e-payment technology enhances convenience. This is crucial for the hotel to influence more sales from various markets since it allows customers to make payment of services at their own comfort. This study also concludes that electronic payment technology is essential for the hotel to have a global presence in terms of market expansion. This study concludes that electronic payment enhances cost reduction in the organization.

1.0 Introduction

1.1 Background to the Study

Realization of effective and efficient retail payment system is dependent on among others; choice of payment method for consumers and businesses; convenience, reliability and security of the payment method, service quality, the level and structure of fees charged by financial institutions; taste and demographic; and technological advances which have improved the speed, convenience and flexibility of different payment systems (Zekos, 2014). E-payment is therefore considered convenient, safe as well as a secure method for payment of bills and other transactions by electronic means like card, telephone, the Internet, Electronic Fund Transfer. Electronic payment are alternatives to consumers when it comes to paying bills and debts by cash, cheque and money order (Urumsah, 2015).

The economy of the world is dependent on the payment systems hence the need to adopt a payment that is secure, convenient and affordable and that is able to be the foundation for the development of any economy (Azam, 2015). Prior to the emergence of modern banking system, commodities were exchanged for commodities in a process commonly known as barter system. This invariably resulted to the creation of markets and specialization.

Nonetheless, the flexibility of the barter system is pegged entirely on mutual coincidence of wants. The transaction in a barter system occurs when each party must be able to supply what the other party demands. The other issues that arose as a result of barter trade include; absence of common measure of value, lack of divisibility and problem of storing wealth. Consequently, money sprung forth to expedite exchange by greasing the market mechanism, which before relied on the barter system. The advent of money assisted in minimizing transaction costs (Lok, 2015).

Nonetheless, the introduction of information technology and the internet, payment systems have given rise to a new direction as electronic money is slowly substituting paper money as well as coins (Nguyen & Gopalaswamy, 2018). Andrieu (2016), acknowledges that bank notes and coins are slowly running out given the various modes of payment for transactions are viable systems perceived as better alternatives across the world. For instance, Nigeria"s quest for transitioning from cash to cashless economy has been on the front burner. This is based on the principle that, for Nigeria to be among the world leading economies in the world, by 2020 electronic payment systems must be fully embraced. The transition of business from the ancient where there was need for physical contact to that of e-commerce is due to globalization and emerging technology (Esoimeme, 2018).

The growth of e-commerce has necessitated the significance of transferring money online otherwise referred to as e-payments, these entails exchange of money and information online without any direct involvement with the recipients. Electronic payments are received through direct online debit or credit card payments, or electronic bill payments, mediated debit or credit, electronic bill payments and stored-value money (Otusanya & Lauwo, 2019).

The ancient e-payment systems are seen to have many restrictions which prohibits consumers from accepting them. With these, there are factors that relate to lack of security, trust, usability, transaction costs being high, risks are perceived to be high and there in, there is a lack of any perceived advantage.

The use of e-payment has been developed to aid individual customers and companies in addition to the banks to mitigate some of the glitches innate in the settlement and payment process. The e-payment system makes it possible for customers to pay their bills without having to physically move to the bank"s locations (Wheelock & Wilson, 2017). It also makes it easier to access their account information and transfer money to other accounts at the comfort of their homes. The options available to people when making electronic payments include: cheques, Electronic Funds Transfer (EFT), Automated Teller Machine (ATM), cards (debit, credit and smart), Electronic Purses/Wallets, Mobile Banking and Money Transfer Services, Telephone Banking, Personal Computer Banking, Digitized "E-Cash" Systems, Electronic Cheque, Online/Internet Payments and Digital Person to Person (P2P) Payments. P2P exchange entails digital financial instrument like encrypted credit card numbers, electronic cheques, or digital cash backed by a bank or an intermediary, or by a legal tender (Pogodaeva & Baburina, 2018).

Performance is deemed as the heart of strategic thinking for every manager of hotels hoping to define and measure performance (Cao & Wang, 2014).The most critical question lingering in the business sector is why certain hotels post impressive performance while others dwindle in their performance, this has attributed to a research on the drivers of organizational performance as noted by Moser (2015) thus making the study to dwell on the drivers of outstanding performance in some hotels.

Adewoye (2013), notes that performance measurement is one of the notable tools that accelerate firms when it comes to monitoring performance, identifying the areas in need of attention, promote motivation, refining communication as well as solidification accountability. A firm needs changes to conform to the information systems capabilities to gain competitive edge (Asongu, 2015). It is presumed that in order for a company to be successful for it to record high returns and recognize propellers of performance from the top to the bottom of the company.

1.2 Statement of the Problem

The world is increasingly becoming technological hence the adoption of e-payment of systems by business. The e-payment platform has presented an interest area of study for many scholars for example, Egesa & Esau (2016) studied E-Service and Devolution: Use of ICT Application on customer service delivery in Machakos County Government, Kenya. Gathumbi (2015) also studied factors affecting electronic payment adoption by Matatu Owners Saccos in Nairobi City County and Morawczynki (2010) studied the adoption, usage and outcomes of mobile money services with a key focus on M-Pesa services. This points to limit study on the influence of e-payment service on revenue performance in hotel industry in Hotels hence the study gap.

Hotels like any other business is not left behind in technological advancements so as to tap on new opportunities. The influx in the use of e-payments modes like credit/debit cards by customers has herald benefits as well as challenges such as an upsurge in fraud cases by customers thus denying companies revenue. This study therefore seeks to assess the influence of e-payment in hospitality industry as a catalyst for generating revenue in some selected outlet in Enugu State. This will be achieved by establishing the benefits of e-payment system on revenue performance of Hotels; understanding the challenges of e-payment system on revenue performance of Hotels; to find out ways to enhance e-payment at Hotels.

1.3 Objectives of the Study

The aim of this study is to assess the influence of e-payment in the hospitality industry as a catalyst for generating revenue in some selected outlet in Enugu State.

Specifically, the objectives of the study include to;

To establish the benefits of e-payment system on revenue performance in the hospitality industry.

To understand the challenges of e-payment system on revenue performance in the hospitality industry.

To determine the effect of e-payment strategies on revenue performance in the hospitality industry.

1.4 Research Question

The following research questions are formulated to guide this research:

What are the benefits of e-payment system on revenue performance in the hospitality industry?

What are the challenges of e-payment system on revenue performance in the hospitality industry?

What is the effect of e-payment strategies on revenue performance in the hospitality industry?

1.5 Research Hypothesis

HO1 E-payment system does not have a significant influence on the hospitality industry in Enugu state

HA1 E-payment system has a significant influence on the hospitality industry in Enugu state

1.6 Significance of the Study

This study sought to assess the influence of e-payment in the hospitality industry as a catalyst for generating revenue in some selected outlet in Enugu State. The study will be of significance to a number of stakeholders such as hotel management, the regulator, hotel employees, scholars and academicians as well as hotel employees.

The regulator would use the study findings in policy formulation more so when it comes to e-payment systems by the industry stakeholders. This will go a long way in cushioning the industry players from losses occasioned by such malpractices.

Hotel management will need the results of the study to make informed decision when it comes to the adoption and use of e-payment system platforms within their jurisdictions. This will be vital when deciding on the tender types and crafting the ultimate payment policy.

The results finding will be of great importance to the employees more so the service department when it comes to payment management and having the experience to detect fraudulent payment by their customers.

This study will provide the current and potential scholars and academicians with the knowledge bank to refer to when studying the effects of e-payment on revenue performance.

1.7 Scope of Study

This study is confined to assess the influence of e-payment in hospitality industry as a catalyst for generating revenue in some selected outlet in Enugu State. This survey will be performed at Oakland hotel and Silicon Valley Resort in Enugu state, and will target employees drawn from different cadres that is, top management, accounts/ revenue department, e-commerce and service staff.

1.8 Limitation of the Study

In the course of this study, the researcher encountered some limitations. There was unwillingness of respondents to fill the questionnaires. Some of the copies questionnaires were also reported missing and it was severally replaced and this affected the researcher negatively finance wise. Also, the researcher faced time constraints and had to combine the research with other academic activities and coursework. Lastly, the study was limited to two selected hotels in Enugu state, Oakland hotel and Silicon Valley Resort, since all the hotels in the hospitality industry in the state could not be covered.

1.9 Definition of Terms

E-Payment System:

According to Altendorf and Schreiber (2015), e-payment system as an electronic payment system by means of direct credit, electronic transfer of credit card details or other electronic means contrary to payment by either cheque or cash.

Revenue:

In accounting, revenue is referred to as the income one gets after the sale of goods and services to their consumers. This is in their normal activities as a business.(Barnes & Corbitt, 2013).

Hospitality Industry:

Is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, travel and tourism. It includes hotels, tourism agencies, restaurants and bars.

Hotel:

An establishment providing accommodation, meals, and other services for travellers and tourists.

1.10 Organisation of the Study

This study is organized into five chapters. Chapter one included the background of the study, research problem, research objectives and questions as well as limitation of the study. Chapter two contains the literature review. Chapter three includes the methodology and study area. Chapter Four contains the results and discussion of key findings of the study. Chapter Five finally looks at the summary, conclusions, and recommendations based on the findings.

• Hotel / Catering / Tourism Project Topics and Materials