Ensuring the Efficiency of Service, Technology, and Management
Processes in the Hotel and Restaurant Business
YULIIA ZEMLINA, SVITLANA PERESICHNA,
OKSANA OLIINYK, OLHA DANYLENKO, SERHII KRASOVSKYI, OLENA VASYLENKO
Department of Hotel and Restaurant and Tourism Business
Kyiv National University of Culture and Arts
36, Evgena Konovaltsia Street, Kyiv, 01601
UKRAINE
Abstract: - In the face of war and a global pandemic, the hotel and restaurant industry in Ukraine has been
compelled to adapt swiftly to unpredictable changes. This article assesses the efficiency of service,
technological, and managerial processes within this sector, employing concepts from Customer Relationship
Management (CRM) and customer experience, and operational efficiency. Statistical analysis was used to
evaluate efficiency coefficients, focusing on factors like staff engagement, local sourcing, streamlined check-in
processes, resource optimization, and dynamic pricing based on demand. The study highlights the shift toward
flexible operational management and customer service modeling amidst uncertain conditions. Using the case of
Ribas Hotels Group from 2012-2023, the article demonstrates strategies such as cost optimization and dynamic
pricing, showcasing how CRM principles aid in building customer loyalty during turbulent times. The research
provides valuable insights into the growth sources of gross operating profitability, emphasizing the practical
significance of efficient processes in the Ukrainian hotel and restaurant business.
Key-Words: - Service and technological processes, Operational management, Hotel and restaurant business,
Service efficiency.
Received: March 18, 2023. Revised: August 19, 2023. Accepted: October 11, 2023. Published: October 17, 2023.
1 Introduction
In the context of war and the pandemic, the hotel
and restaurant business is forced to optimize service,
technology, and management processes to ensure
sustainable operations. The lack of established
algorithms for working in such conditions required
optimization of business processes, changes in
business strategy, and operational management.
Optimization of costs, processes, personnel, and
teamwork were among the components to maintain
and continue operations. During the war and the
pandemic, all processes in the hotel and restaurant
business needed to be changed and revised. This
applies to human resources management, supply
chain processes, guest check-in, resource
optimization (including energy and fuel), budget
planning and forecasting, dynamic pricing, etc. Part
of the changes can be implemented through the use
of technologies that ensure innovation and
flexibility in providing services to customers in the
face of unpredictable changes. Among the
management technologies, there is Customer
Relationship Management (CRM), which has a
positive impact on the processes of guest lodging
and accommodation.
The article aims to assess the efficiency of
service, technological, and managerial processes in
the hotel and restaurant business in the context of
unpredictable changes and volatility of the external
environment.
2 Literature Review
2.1 The Efficiency of Service, Technological,
and Management Processes in the Hotel and
Restaurant Business
Technology as a concept includes a system of
conditions, methods, forms and means, techniques
and modes of operation, and sequence of procedures
and operations in the hotel and restaurant business.
Technologies include workflows: cycles,
procedures, operations, and elements. In the hotel
and restaurant industry, the process of providing
services corresponds to the function of providing
housing (temporary accommodation) and customer
(guest) service. Traditional main technological
service cycles include the period from pre-booking
(reservation) of an accommodation facility to the
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DOI: 10.37394/232015.2023.19.105
Yuliia Zemlina, Svitlana Peresichna,
Oksana Oliinyk, Olha Danylenko,
Serhii Krasovskyi, Olena Vasylenko
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moment of departure (booking - arrival - check-in -
registration - accommodation - service - departure
and check-out). Auxiliary processes include the
conditions for the implementation of the main
accommodation processes (control of the condition
of premises, equipment, services, repair,
maintenance, renovation, etc.) The literature also
distinguishes a closed cycle of accommodation,
which includes reservations, customer reception,
document registration, prepayment, room provision,
night audit, departure organization, and final
payment. Standardization of technological
operations is a common process in the hotel and
restaurant business. This ensures the consistency of
their execution, setting standards for service (for
example, booking confirmation should take place
within 3-5 minutes, customer feedback within 1
hour, etc.).
In the scientific literature, the effectiveness of
service, technological, and management processes is
considered in the context of innovation, ICT
implementation, strategic and operational
management, and customer experience. The studies
consider various concepts, approaches, and
strategies for managing business processes and
operations in hotels and restaurants in various
subsystems. In the practice of hotels and restaurants,
ICT is integrated into the following subsystems:
human resources (recruitment, training, adaptation),
security, bookings, revenue management,
marketing, guest services, and strategic and
operational management, [1].
Due to the high level of competition and the
development of information and communication
technologies (ICT) in the hospitality industry,
technologies are being introduced in various
functional units to optimize cycles, procedures, and
operations, [2]. The study, [3], identifies that hotel
companies in Finland use technological
improvements and innovations to improve products
and services as competitive actions. Other
competitive actions are 1) network and customer
loyalty; 2) pricing and revenue management
strategies; 3) marketing and branding; 4) business
model and strategy; 5) sales; customer service
quality, and customer relationship management; 6)
employee satisfaction and engagement [3].
Companies in the hospitality industry use
automation, robotization, and artificial intelligence
technologies in the form of chatbots, delivery
robots, robot concierges, conveyor restaurants, self-
service/check-in/check-out counters, and many
others, [4]. As a result, hotels and restaurants are
increasing operational efficiency, improving service
quality, and cutting costs. Technologies help to
increase competitiveness, and quality of services,
improve human resource management processes,
service delivery processes and standards, and
optimize operating costs, [4].
Some scientific works note the lack of research
on the effectiveness of innovations in the hospitality
industry, in particular, on their value to customers
and financial efficiency, [5]. Meanwhile, more and
more articles in the literature analyze customer
experience and readiness to adopt and use ICT in
hotels and restaurants. This is due to the
development of the concepts of customer-centered
marketing, self-service, especially in a pandemic,
customer satisfaction, customer relationships, etc.
Thus, [6] notes that customer satisfaction is the most
important indicator of hotel success and
development. Success is also influenced by financial
performance and use of ICT, standardization of
services, support from top management, quality of
service, customer satisfaction, location,
design/appearance of the hotel interior and exterior,
staff training, and empowerment, [6]. It is worth
noting that customer satisfaction can be defined as
an indicator of the effectiveness of service,
technological, and management processes in the
hotel and restaurant business.
The study, [4], investigates the costs and benefits
of introducing robotization and automation
technologies in tourism and hospitality companies
(hotels and restaurants included). The authors
conclude that the adoption of technologies depends
on their costs and labor, customers' readiness and
willingness to use robots for self-service, cultural
characteristics of service providers and guests,
technological characteristics of solutions, etc.
In the context of the use of ICT by hotels, the
literature also addresses the synergy of human
resources and technology to provide services to
customers. Customers in this area strive for fast,
convenient, easy, and comfortable services, to
perform more procedures and operations on their
own during check-in, stay, and departure, i.e. to
reduce contact with staff, [7]. At the same time, the
lack of experience in using ICT in the service
process is an obstacle for customers. Therefore, it is
important to find a balance between automation and
robotization of service and technological processes
and personalized service. According to, [7], a
combined service using staff and technology is the
optimal solution to improve customer experience,
meet their needs and expectations for high-tech
amenities, and integrate opportunities for
communication with staff and interpersonal
communication, [7].
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Serhii Krasovskyi, Olena Vasylenko
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There is little research in the literature on
achieving synergies between human resources and
Hospitality 5.0 technologies, [8]. [9], note that the
combination of "intelligent" and "warm" services
has become a new strategy for improving customer
touchpoints in service interaction and delivery.
Intelligent services cannot completely solve
customer problems, as key touchpoints in service
delivery require a combination of warm and
intelligent services to enhance their value, [9].
At the same time, a significant number of studies
have identified factors influencing customer
acceptance or rejection of technology, [10]. Some
articles focus on the reasons why customers interact
with self-service technologies (SST), the obstacles
to their use, which do not ensure the consistency of
processes and operations in the hospitality industry,
and the joint creation of an operating cycle, [10].
Thus, the effectiveness of service, technological,
and management processes in the hotel and
restaurant business is a broad area of research that
covers the issues of strategic and operational
efficiency, customer satisfaction, ICT integration,
and its combination with personal service, and
financial performance.
2.2 The Efficiency of Service, Technological,
and Management Processes in the Hotel and
Restaurant Business
Nowadays, the effectiveness of customer-oriented
marketing in business has been proven. The concept
of customer experience, developed by McKinsey in
2010, is being actively implemented in business to
ensure profit growth. In the process of selling, the
value of the product formed during the production
process is transferred, and a relationship with the
client is formed. The customer experience includes
the experience of interaction with the customer
during the ordering process, the experience of
purchasing (from purchase to delivery, support), and
the experience of owning the product and service.
Customer experience determines the potential
benefits of future purchases. A higher level of
benefits received will correspond to a higher level of
feeling the need to repeat the purchase, which
correlates with the theory of bounded rationality
about maximizing satisfaction, [11], [12], the impact
of experience on the customer's perception of future
benefits and losses from the product. Therefore, it is
important to ensure the maximum level of customer
satisfaction in the process of sales, support, and
service, which will ultimately build brand loyalty.
Consistent and clear communication is one of the
most important elements of customer experience,
according to a McKinsey US cross-industry survey
conducted in June-October 2015, [13]. "Journeys are
significantly more strongly correlated with overall
outcomes than are touchpoints". The correlation
coefficient of the communication indicator with the
hotel customer satisfaction indicator is 0.5, while
the correlation coefficient of the touchpoint
indicator equals 0.32, [13].
Compared to the traditional customer experience
model (need - offer - purchase - ownership), the
McKinsey customer experience model has
significantly expanded the company's ability to
influence brand loyalty. If earlier the purchase was
determined by the availability of the product, now
the purchase is determined by the simplicity of the
relationship with the client, additional options, and
the seller's response time to the buyer's request. If
earlier the offer was determined by the presence or
absence of a product, now the offer is formed in the
course of identifying the customer's needs. If earlier,
the customer made conclusions about the product,
now the seller influences conclusions and loyalty by
studying behavior, asking the right questions, and
providing effective service and support. The sales
department primarily influences the customer
experience, and the experience is further shaped by
interaction with the production, financial,
administrative, IT, marketing, and service
departments.
Customer experience refers to customers' internal
and subjective response to any interaction, whether
direct or indirect, with a company. Direct
interactions happen during purchasing, usage, and
maintenance, initiated by the customer. Indirect
interactions include unplanned encounters with the
company's products, services, or brands, such as
verbal recommendations, criticism, advertising,
reviews, or reports, [14].
Defining and improving customer experience is
of increasing interest in market research as the
concept of customer experience replaces the concept
of quality in marketing. The concept of service
quality assurance was the result of the integration of
the theory of total quality management (TQM) in
the 1980s. Its main drawback was the focus on the
supplier rather than on the value received by
customers. However, the customer experience is
formed over a long process of interaction between
the company and the customer through several
channels, both functional and emotional support,
[15]. The concept of Customer Relationship
Management (CRM) includes the following
components:
1) a system for capturing and disseminating
information and knowledge about the client to
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Serhii Krasovskyi, Olena Vasylenko
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understand their needs after interaction with the
client;
2) a system for collecting data on points of sale,
including through website visits, automatic sales
tracking, and a market research system;
3) a system of interaction between different users
of customer information: sales, marketing, and field
service, to ensure more efficient execution.
3 Methods
In the first stage of the research, statistical analysis
was used to assess the dynamics of the major
structural indicators of enterprises in the hotel and
restaurant business of Ukraine for the period 2010-
2021 according to the State Statistics Committee of
Ukraine. The system of structural indicators for
assessing the efficiency of service, technological,
and management processes included as follows:
1. The dynamics of the number of enterprises by
spheres of hotel and restaurant business.
2. The dynamics of employed persons (EP) of
enterprises by spheres of hotel and restaurant
business.
3. The dynamics of the volume of sold products
(VSP) of enterprises by spheres of hotel and
restaurant business.
4. The dynamics of gross operating income of
enterprises by spheres of hotel and restaurant
business.
5. The dynamics of production costs of
enterprises by spheres of hotel and restaurant
business.
6. The dynamics of the coefficient of gross
operating profitability (GOP) of the enterprises’
expenses by the spheres of hotel and restaurant
business, calculated by the formula:
7. The dynamics of labor productivity of
enterprises by spheres of hotel and restaurant
business, calculated by the formula:
The study uses the case study methodology to
conduct a case study of ensuring the efficiency of
service, technological, and management processes
in the hotel and restaurant business on the example
of the management company Ribas Hotels Group.
The company has been operating in the Ukrainian
market since 2012, launching hotel projects,
creating hotel real estate, and reconstructing or
building them. Ribas Hotels Group develops hotels
of 3 - 4 categories, resort beaches, ski hotels,
boutique hotels, apart-hotels, and city hotels. In
2015-2023, the company managed 26 hotel and
restaurant facilities. The effectiveness of Ribas
Hotels Group's service, technological, and
management processes is considered in the context
of operational efficiency, financial performance
indicators of various projects, and customer
satisfaction. The hotels are analyzed according to
the following characteristics: concept, stages of
cooperation in the hotel management process, area
and infrastructure, average occupancy, average daily
rate (ADR), revenue per available room (RevPAR to
assess hotel performance), planned return on
investment of the project, and rating. The article
describes four key areas of management:
1) operational management of the hotel; 2) sales and
marketing management; 3) financial management of
the facility; 4) implementation of common
standards: development and description of business
processes to improve management. In the process of
analyzing the cases, we evaluated the effectiveness
of such projects: Hotel Bortoli by Ribas, Richard by
Ribas, Ribas Rooms Odesa, Ribas Karpaty, Helios
by Ribas, WOL Lviv.
By conducting a detailed analysis of both
industry-wide structural indicators and specific case
studies within Ribas Hotels Group, the research
aimed to provide a comprehensive understanding of
the efficiency of service, technological, and
management processes in the Ukrainian hotel and
restaurant business. This multifaceted approach
allowed for a nuanced assessment of the industry's
dynamics and Ribas Hotels Group's operational
strategies, contributing valuable insights to the field
of hospitality management.
4 Results
Analysis of the efficiency of service, technological,
and management processes in the hotel and
restaurant industry of Ukraine. In Ukraine, the
number of operating business entities in the field of
temporary accommodation and catering increased in
the period 2010-2021, in particular, due to the
growth of hotels and similar accommodations by
694 units, and food and beverage service activities
by 21728 units. (At the same time, enterprises in the
field of restaurants and mobile food service
activities occupy the largest share among all
business entities in 2021 (36,02%). The number of
employed persons in the hotel and restaurant
business in Ukraine decreased by a total of 376,125
from 2010 to 2021; although the annual growth rate
was 10,28% on average, in particular, due to
significant decreases and increases in different
periods (decrease in 2013-2015, increase in 2016,
decrease in 2017).
The employment rate decreased in all subsectors
of the hotel and restaurant business. The largest
share of employees is in hotels and similar
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accommodations and food and beverage service
activities. The annual growth rate of sales in the
sphere of temporary accommodation and catering in
Ukraine amounted on average to 11.93%. The
largest share of sales volumes is accounted for by
entities in the hotels and similar accommodations
sector (14,01%), and food and beverage service
activities (26,96%). The dynamics of the number of
employed persons in the sphere of temporary
accommodation and catering in Ukraine, 2010-2021
are presented in Table 2. Similarly, the dynamics of
sales of products in the sphere of temporary
accommodation and catering in Ukraine, 2010-
2021, UAH mln is presented in Table 3.
Table 1. The dynamics of the number of operating business entities in the field of temporary accommodation
and catering in Ukraine, 2010-2021.
2010
2017
2020
2021
Deviation, +/-,
2010-2021
Annual growth
rate, %
Specific
weight, %
accommodation
10113
7628
8419
8127
-1986
-1,10
5,82
hotels and similar
accommodation
4209
4432
5125
4903
694
2,21
3,51
holiday and other short-
stay accommodation
5032
2636
2845
2805
-2227
-4,04
2,01
camping grounds,
recreational vehicle
parks, and trailer parks
82
59
51
48
-34
-4,04
0,03
other accommodation
790
501
398
371
-419
-5,23
0,27
food and beverage
service activities
39920
49950
63329
61648
21728
4,46
44,18
restaurants and mobile
food service activities
29950
38545
51069
50271
20321
5,27
36,02
event catering and other
food service activities
4635
4977
4963
4522
-113
0,29
3,24
beverage serving
activities
5335
6428
7297
6855
1520
2,69
4,91
Total
100066
115156
143496
139550
39484
3,41
100,00
Source: calculated by the author based on, [16].
Table 2. The dynamics of the number of employed persons in the sphere of temporary accommodation and
catering in Ukraine, 2010-2021.
2010
2017
2018
2019
2020
2021
Deviation, +/-
, 2010-2021
Annual growth
rate, %.
Specific
weight, %
accommodation
69511
15386
16230
16419
38514
16099
-53412
10,28
17,42
hotels and similar
accommodation
43019
13603
14527
14973
29465
11010
-32009
3,84
11,91
holiday and other short-
stay accommodation
22101
5778
6298
8350
4357
4436
-17665
-10,01
4,80
camping grounds,
recreational vehicle
parks, and trailer parks
283
94
103
95
87
75
-208
-9,68
0,08
other accommodation
4108
1197
1198
1308
695
578
-3530
-13,05
0,63
food and beverage
service activities
172626
28481
32176
31857
175714
22931
-149695
26,65
24,82
restaurants and mobile
food service activities
120309
132650
164767
156392
15249
14209
-106100
-5,62
15,38
event catering and other
food service activities
18371
15640
33240
19132
24698
8720
-9651
10,43
9,44
beverage serving
activities
18204
15676
18510
18557
14943
14349
-3855
0,73
15,53
Total
468532
228505
287049
267083
303722
92407
-376125
-8,48
100,00
Source: calculated by the author based on, [16].
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Serhii Krasovskyi, Olena Vasylenko
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Production expenses in the hotel and restaurant
business increased at a slower pace (6,91%) than
sales volumes, which positively characterizes the
operating activities aimed at reducing production
costs. At the same time, expenditures increased at a
higher rate for enterprises engaged in restaurants
and mobile food service activities (10,05%
annually). Meanwhile, expenses on hotels and
similar accommodations increased by 6,27%
annually. The dynamics of production costs in the
sphere of temporary accommodation and catering in
Ukraine, 2012-2020, UAH mln is presented in Table
4. Similarly, the dynamics of gross operating
income in the sphere of temporary accommodation
and catering in Ukraine, 2012-2020, UAH mln is
presented in Table 5.
Table 3. The dynamics of sales of products in the sphere of temporary accommodation and catering in Ukraine,
2010-2021, UAH mln.
2010
2017
2018
2019
2020
2021
Deviation, +/-,
2010-2021
Annual growth
rate, %.
Specific
weight, %
accommodation
5803,2
6115,5
7137,4
7521,5
11182,5
8419,6
2616,4
35,69
19,81
hotels and similar
accommodation
3985,8
5815,4
6793,4
7166,5
8532,8
5955,4
1969,6
24,13
14,01
holiday and other
short-stay
accommodation
1383,3
1282,9
1727,6
2737,1
1416,2
2141,5
758,1
5,95
5,04
camping grounds,
recreational vehicle
parks, and trailer
parks
8,2
11,9
13,0
15,2
13,9
14,8
6,6
8,94
0,03
other accommodation
425,9
276,9
300,9
370,2
227,0
307,9
-117,9
-1,49
0,72
food and beverage
service activities
9249,9
9079,6
10780,8
11373,0
38772,3
11460,1
2210,2
32,51
26,96
restaurants and
mobile food service
activities
5698,9
22603,1
30482,0
33198,6
4812,3
7660,3
1961,4
13,05
18,02
event catering and
other food service
activities
1750,7
2458,2
8877,0
3920,0
7142,6
3574,4
1823,8
72,23
8,41
beverage serving
activities
1160,1
1754,3
2260,1
2654,8
2065,0
2972,3
1812,2
16,90
6,99
Total
29465,9
49397,9
68372,2
68956,9
74164,5
42506,2
13040,3
11,93
100,00
Source: calculated by the author based on, [16]
Table 4. The dynamics of production costs in the sphere of temporary accommodation and catering in Ukraine,
2012-2020, UAH mln.
2012
2016
2017
2018
2019
2020
Deviation, +/-,
2010-2021
Annual growth
rate, %.
Specific weight,
%
accommodation
5385,8
5631,0
7181,8
8718,3
9659,7
7583,9
2198
6,89
17,83
hotels and similar
accommodation
4413,4
4909,3
6199,6
7566,2
8101,1
5712,9
1299
6,27
13,43
holiday and other
short-stay
accommodation
834,1
666,2
914,0
1067,2
1443,6
1313,1
479
8,44
3,09
camping grounds,
recreational vehicle
parks, and trailer
parks
4,9
5,0
3,4
6,5
8,3
7,1
2
78,45
0,02
other
accommodation
133,4
50,5
64,9
78,4
106,7
550,8
417
57,92
1,29
food and beverage
service activities
8754,3
7557,2
11950,9
13860,2
15932,8
13687,5
4933
7,60
32,17
restaurants and
mobile food service
activities
5733,7
5302,7
8598,8
9528,8
11496,9
10746,8
5013
10,05
25,26
event catering and
other food service
activities
2694,9
2042,0
3019,9
3885,6
3976,2
2569,6
-125
2,55
6,04
beverage serving
activities
325,8
212,5
332,2
445,8
459,6
371,1
45
5,68
0,87
Total
28280
26376
38265
45157
51185
42543
14263
6,91
100,00
Source: calculated by the author based on, [16].
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Table 5. Dynamics of gross operating income in the sphere of temporary accommodation and catering in
Ukraine, 2012-2020, UAH mln.
2012
2016
2019
2020
Deviation, +/-,
2010-2021
Annual growth
rate, %
Specific
weight, %
accommodation
725,4
2898,3
2314,4
991,9
267
65,31
20,84
hotels and similar
accommodation
419,8
2765,1
1991,9
829,8
410
79,08
17,43
holiday and other
short-stay
accommodation
307,4
117,8
311,7
72,5
-235
19,58
1,52
camping grounds,
recreational
vehicle parks, and
trailer parks
-2,2
1,4
1,6
-0,6
2
-39,18
-0,01
other
accommodation
0,3
14,0
9,2
90,2
90
1858,69
1,90
food and
beverage service
activities
-
1114,0
1001,2
234,8
1387,9
2502
-76,26
29,16
restaurants and
mobile food
service activities
-729,6
774,8
94,9
1280,5
2010
151,26
26,90
event catering and
other food service
activities
-320,3
158,4
55,4
43,5
364
-35,79
0,91
beverage serving
activities
-64,1
67,9
84,5
63,9
128
-149,92
1,34
Total
-777
7799
5098
4760
5537
12,70
100,00
Source: calculated by the author based on [16].
Production expenses in the hotel and restaurant
business increased at a slower pace (6,91%) than
sales volumes, which positively characterizes the
operating activities aimed at reducing production
costs. At the same time, expenditures increased at a
higher rate for enterprises engaged in restaurants
and mobile food service activities (10,05%
annually). Meanwhile, expenses on hotels and
similar accommodations increased by 6,27%
annually. The average annual growth rate of gross
operating income in the temporary accommodation
and catering sphere in Ukraine was 12.7%. In
particular, the following business entities
experienced the largest increase: hotels and similar
accommodation - by 79,08%, restaurants, and
mobile food service activities - by151,26%. The
hotel and restaurant business ensured a significant
increase in gross operating income by optimizing
expenses and exceeding the growth rate of sales
over expenses. The coefficient of gross operating
profitability (GOP) of expenses of the hotel and
restaurant business amounted to 11,86% on average,
with a significant increase in 2015-2018, in
particular, due to the efficiency of hotels and similar
accommodation enterprises (Table 6). On the other
hand, according to the GOP coefficient, the
activities of entities in the food and beverage service
activities sphere were not efficient, in particular, due
to the negative value of the coefficient in 2012-
2014, with further increase in 2015-2017
Between 2015-2018, hotels and similar
accommodations in the industry significantly
improved efficiency, reflected in a notable rise in
the GOP coefficient. In contrast, food and beverage
service entities struggled, with negative coefficients
from 2012-2014, gradually improving from 2015-
2017. This disparity underscores the varying
challenges and strategies within the sector,
emphasizing the need for consistent cost
management and adaptability for sustained
profitability. Entities in the food and beverage
service activities sphere must continue
implementing effective management practices, learn
from the successes of the hotel and similar
accommodation enterprises, and invest in strategies
that optimize operational costs and enhance
customer satisfaction.
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DOI: 10.37394/232015.2023.19.105
Yuliia Zemlina, Svitlana Peresichna,
Oksana Oliinyk, Olha Danylenko,
Serhii Krasovskyi, Olena Vasylenko
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Table 6. The dynamics of the coefficient of gross operating profitability (GOP) of expenses in the sphere of
temporary accommodation and catering in Ukraine, 2012-2020, UAH mln.
2012
2013
2014
2015
2016
2017
2018
2019
2020
Average
value
accommodation
13,47
26,19
15,46
9,25
51,47
56,01
42,52
23,96
13,08
27,93
hotels and similar accommodation
9,51
24,73
17,34
9,58
56,32
62,55
46,64
24,59
14,52
29,53
holiday and other short-stay accommodation
36,86
34,31
6,35
7,00
17,68
12,61
15,99
21,59
5,52
17,55
camping grounds, recreational vehicle parks, and
trailer parks
-
44,16
10,63
7,24
26,19
27,73
120,46
40,30
19,49
-8,77
22,12
other accommodation
0,22
23,73
20,82
8,11
27,63
39,54
6,20
8,63
16,38
16,81
food and beverage service activities
-
12,72
-
12,73
-0,96
8,22
13,25
5,43
1,83
1,47
10,14
1,55
restaurants and mobile food service activities
-
12,72
-
15,23
3,77
6,55
14,61
3,17
1,22
0,83
11,91
1,57
event catering and other food service activities
-
11,89
-7,89
-
11,11
14,30
7,76
8,53
1,43
1,39
1,69
0,47
beverage serving activities
-
19,67
2,20
-8,83
-6,39
31,96
35,90
18,20
18,38
17,23
9,89
Total
-2,75
3,61
4,59
8,62
29,57
24,42
17,54
9,96
11,19
11,86
Source: calculated by the author based on [16].
Table 7. The dynamics of labor productivity in the sphere of temporary accommodation and catering in
Ukraine, 2010-2021, thousand UAH / 1 employed
2010
2016
2017
2018
2019
2020
2021
Deviation, +/-
Average value
accommodation
83,5
253,8
397,5
439,8
458,1
290,3
523,0
439,5
251,8
hotels and similar
accommodation
92,7
248,8
427,5
467,6
478,6
289,6
540,9
448,3
265,5
holiday and other short-
stay accommodation
62,6
157,2
222,0
274,3
327,8
325,0
482,7
420,2
193,8
camping grounds,
recreational vehicle
parks, and trailer parks
29,0
63,4
126,9
126,1
160,3
159,2
197,2
168,2
90,4
other accommodation
103,7
155,0
231,4
251,1
283,0
326,6
532,8
429,1
208,4
food and beverage
service activities
53,6
146,4
318,8
335,1
357,0
220,7
499,8
446,2
198,6
restaurants and mobile
food service activities
47,4
139,4
170,4
185,0
212,3
315,6
539,1
491,7
168,3
event catering and other
food service activities
95,3
208,6
157,2
267,1
204,9
289,2
409,9
314,6
172,5
beverage serving
activities
63,7
83,4
111,9
122,1
143,1
138,2
207,1
143,4
102,3
Total
62,9
160,1
216,2
238,2
258,2
244,2
460,0
397,1
175,3
Source: calculated by the author based on, [16].
The labor productivity in the hotel and restaurant
sector of Ukraine as a whole increased by UAH
397,1 thousand per employee, averaging UAH
175,3 thousand per employee (Table 7). The highest
level of productivity was observed in hotels and
similar accommodations and restaurants and mobile
food service activities, especially since 2017, when
productivity almost doubled.
Case
During the period of managing Ribas Hotels
Group's hotel properties with various investors in
2012-2021, the company achieved the following
results of cooperation: an average 34% increase in
profit from hotel properties, an average 30%
increase in business capitalization, and an average
20% increase in guest loyalty, [17].
The results of the investors' cooperation with
Ribas Hotels Group in the field of hotel and
restaurant management include the optimization of
hotel operations, an increase in profit by 10-35%,
and an increase in the main key performance
indicators of the hotel. These include occupancy,
ADR, and RevPAR, an increase in profitability a
reduction in the payback period of the facility to 7
years, and an increase in the hotel's rating on
Booking.com and other online booking platforms.
Operational management of the Ribas Hotels
Group property includes, [17]:
1. Calculating hotel occupancy to increase
profits.
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Serhii Krasovskyi, Olena Vasylenko
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2. Effective personnel management, including
recruitment, training, and adaptation processes.
3. Operational management of the restaurant.
4. Quality control of services provided by the
hotel.
5. Accounting.
6. Legal service.
7. Hotel and restaurant supply.
8. Support of software services.
Sales and marketing management includes
marketing and advertising, a centralized reservation
department, and a corporate sales department. The
centralized reservation department increases sales
conversion and room occupancy by 25-30% on
average, and the cost by 10-40%.
Financial management of a facility involves
professional organization, planning, management,
and control over finances: strategic planning,
budgeting, cost control, and optimization.
Implementing common standards involves
developing and describing business processes to
improve their management. Employees of hotel
chains work according to certain algorithms, and
managers evaluate them according to clearly defined
performance indicators to ensure a uniform quality
of service. Common standards include standards for
the Reception service, standards for the operation of
a single reservation service based on the sales book,
and standards for the food and beverage service.
Table 8 illustrates the key performance indicators
of Ribas Hotels Group's management processes by
hotel property. Hotel management involves the
following stages of cooperation between the
company and the investor: 1) concept creation,
project support at the design and construction
stages, hotel launch, and operational management;
2) renovation, and operational management. Hotel
concepts differ depending on the location and the
area available for various services. Additional
services for guests include free municipal parking, a
business room for work and leisure, a terrace, a
restaurant, SPA, swimming pools, a children's room,
a ski room, etc. Hotel occupancy also varies
depending on the location and customer demand for
a particular type of vacation. Hotels with a more
unique concept or additional services are
characterized by a higher level of demand and
occupancy. The unique offer of Ribas Karpaty Hotel
with a large area provides the highest level of profit
(average hotel sales rate). Besides, the location and
the growing demand for tourist services in Bukovel
in Ukraine during the war also affected the ADR of
Ribas Karpaty. Richard by Ribas Resort is
characterized by different occupancy rates:
1. Average load during the high season (62 days
July-August): 92%.
2. Average load during the low season (70 days -
May, June, and September): 55%.
Table 8. Key performance indicators of Ribas Hotels Group's management processes by hotel properties.
Indicator
Hotel Bortoli by Ribas
Richard by
Ribas
Ribas Rooms
Odesa
Ribas Karpaty
Helios by Ribas
Concept
City design hotel of
economy-level
Midscale resort
hotel
Modern business
hotel of the
midscale level
Upscale ski hotel
Midscale resort and ski
hotel
Location
Odesa, Ukraine
Hrybivka resort,
Ukraine
Odesa, Ukraine
Bukovel, Ukraine
Bukovel, Ukraine
Opening date
01.12.2017
01.06.2011
16.06.2017
26.12.2020
17.06.2017
Stages of
cooperation
(management)
concept development,
project support at the
design and construction
stages, hotel launch,
operational management
renovation,
operational
management
renovation,
operational
management
concept development,
project management,
design and construction,
hotel launch, operational
management
renovation, operational
management
Area, m2
236
971
689,7
3200
2700
Infrastructure
free municipal parking,
business room for work
and rest, terrace
private beach,
summer
restaurant with
gazebos on the
beach,
playground,
parking
breakfast room,
parking
restaurant with access to
the terrace, coworking
space with panoramic
mountain views,
swimming pool, Finnish
and Roman saunas,
jacuzzi, massage rooms,
and a large spa area
restaurant, SPA and
swimming pools,
children's room, ski
room, parking
Average load, %
90
77
67
67,1
62,5
Average daily rate
(ADR), $:
30
55
41
138
109
Planned return on
investment in the
project, %
11
17
10
14
12
Source: compiled by the author based on, [18].
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To optimize its management processes, Ribas
Hotels Group has standardized IT tools for the
effective organization of hotel sales. In general, to
automate the booking process in the company's
facilities with up to 20 rooms, the company
connects to Channel Manager, a single software tool
for automating hotel sales management that
combines several sales channels. The tool automates
the sales function, the function of changing the
availability of rooms, and tariffs, making it possible
to create various promotional offers from a single
interface, without the need to manage this data on
each channel separately. According to the hotel
consultant, an expert in online sales systems at
Ribas Hotels Group, the hotel's channel manager
prevents overbookings and ensures that prices are
kept at parity.
Furthermore, the integration of a Channel
Manager tool by Ribas Hotels Group has
significantly streamlined its sales management
processes. This unified software automates
functions like sales, room availability adjustments,
and pricing across multiple channels. It enables the
creation of diverse promotional offers through a
single interface, eliminating the need to manage data
separately on each platform. Notably, this tool
prevents overbookings and maintains price parity,
ensuring a seamless booking experience for
customers and efficient operations for the company.
Hotels managed by Ribas Hotels Group with 25
rooms or more use some services. Among them,
[19]:
 CRM (customer relationship management) is
a customer database management system designed
to automate interaction strategies, including
increasing sales, optimizing marketing, and
enhancing customer service. CRM contains
information about customers their contact history,
and interactions with them. Moreover, it establishes
and improves business processes, and performs
further analysis of the results of interaction with
customers. CRM provides an understanding of the
level of customer loyalty and satisfaction with the
company's services. One of the most important areas
of work in this system is corporate sales,
transactions, etc. CRM allows you not to lose any
stage of communication with the client, even in the
face of staff changes, as all information is stored in
the company or client card and can always be
processed. CRM is also used to build business
processes for communicating with guests at
different stages of service provision: communication
with the guest after departure; creating a special
offer for a guest who chooses between hotels and
makes a reservation/change of reservation; selling
additional services to a guest who has already made
a reservation (transfer, SPA, etc.).
 A PMS (property management system) is a
hotel management system that allows you to
manage the room stock, control occupancy, and
make reservations for the room stock. This system
accumulates information on hotel occupancy, stores
guest cards, calculates income, generates staff tasks,
prints fiscal receipts makes key cards, transfers
financial results to the accounting department, and
much more.
 Booking Engine is a booking module for a
hotel website that allows you to book a room online
on the hotel's website, pay for it, change dates, or
cancel a reservation, and is integrated with the PMS.
 The technology of the interaction between
these programs. For instance, a CRM system can be
integrated with a PMS at the level of exchanging
reservations, guest cards, and companies that are
formed on the PMS side to generate mailings, sales
funnels, or end-to-end analytics in the CRM system.
The efficiency of service, technological, and
management processes in war conditions
The outbreak of war also changed the approach to
customer service and shifted to modeling possible
staff behavior in the face of unpredictable changes.
In a stable environment, hotels and restaurants
sought to ensure uninterrupted service delivery
under existing service standards. In a highly volatile
environment, service processes require identifying
potential problems and failures and developing
algorithms to address them. The hotel and restaurant
business in Ukraine is formulating new rules aimed
at active communication with customers regarding
possible disruptions in the provision of various
services: service hours, check-in and check-out
procedures, restaurant operations, etc.
Among the key factors in ensuring customer
loyalty in the hotel business in wartime are, [20]:
 Individualized approach and non-standard
solutions. The changes under martial law include the
introduction of curfews and power outages, which
make it impossible to provide services to guests
(arrival, and departure) at night. To solve this
problem, Ribas Hotels Group has developed new
staff work schedules, including night shifts, thus
combining the functions of some employees and
maintaining the usual level of service. Among the
innovations, for example, are night shifts for
different categories of hotel employees (cooks,
maids/laundry workers, waiters, technical service)
to maintain the level of service. The hotels changed
the operating modes of various services, the formats
of check-in and check-out, and the operation of
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Serhii Krasovskyi, Olena Vasylenko
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various services, and developed algorithms for
informing customers about possible failures and
services. Thus, during the martial law period, the
importance of standardizing communication with
clients regarding possible disruptions (impossibility
of cashless payments in case of power outages,
catering services, etc.)
 Improvement and optimization of service
processes that maintain customer loyalty and
satisfaction by providing certain types of assistance
and service. The service processes include a range
of free services (e.g., luggage storage, taxi service,
medical services). Such processes create additional
value for the customer by providing assistance and
creating a sense of security and care for the
customer. These processes are also part of building
customer experience and a loyal guest base.
 Creation of new services and standardization
of procedures for their provision in times of war.
For instance, Ribas Hotels Group's properties are
equipped with bomb shelters: ventilation,
autonomous heating, water pumps, generators,
restrooms, and minimal comfort facilities and
resources.
 Optimization of marketing tools and sales
mechanisms due to the growing security risks in
different regions of Ukraine, which leads to a
decrease in demand a reduction in prices for
accommodation services, and the need to reorient to
new consumer segments. The head of sales at Ribas
Hotels Group says that there is a decrease in search
queries for hotel facilities and a need to send
personalized offers to the company's loyal
customers.
Optimization of processes and costs in the
following subsystems, [21]:
1) recruitment and engagement of personnel
(minimum involvement and maximum
multifunctionality of employees), especially for
professions with similar functional responsibilities:
waiter and restaurant administrator, hotel manager,
and booking or sales department.
2) supply to reduce costs. Changes at Ribas
Hotels Group properties include switching the
restaurant to local products, checking prices for
products and product suppliers, and considering
offers from other suppliers. Hotel managers also
actively review suppliers' terms of reference,
providing specific requirements for the right goods
and services at the best prices.
3) Optimizing and changing the check-in process
to save on utility costs.
4) optimization of resources to control
consumption and inventory, as well as time spent on
maintenance.
5) planning and forecasting subsystems on a
quarterly and monthly basis and cost estimation
concerning hotel occupancy. Ribas Hotels Group
properties have implemented daily accounting of
fuel and electricity consumption in terms of
recording and analyzing costs depending on
occupancy. The hotels have shifted processes that
require high electricity consumption to times when
electricity is available.
6) introduction of dynamic pricing depending on
the occupancy of hotel facilities and demand.
5 Discussion and Conclusion
The study revealed the transition to flexible
operational management, cost optimization, and
processes of hotels and restaurants in the following
subsystems: 1) recruitment and engagement of
personnel (minimum involvement and maximum
multifunctionality of employees); 2) supply of
resources (transfer of the restaurant to local
products); 3) optimization and change of
accommodation processes; 4) optimization of
resources to control consumption and inventory; 5)
quarterly, monthly subsystems of planning and
forecasting, cost estimation to hotel occupancy; 6)
introduction of dynamic pricing depending on the
occupancy of hotel facilities and demand, [20]. With
the outbreak of war, the approach to customer
service is changing and there is a shift to modeling
possible staff behavior in the face of unpredictable
changes. The hotel and restaurant business in
Ukraine is forming new rules aimed at active
communication with customers about possible
disruptions in the provision of various services. The
hotel management company Ribas Hotels Group
should continue to actively communicate with
customers in the face of unpredictable changes to
help maintain satisfaction with service and
technological processes. Active communication and
interaction build customer loyalty to the company's
hotel chain, ensuring support for operations in times
of war. Among the key factors in ensuring customer
loyalty in the hotel business are, [19]: 1) individual
approach and non-standard solutions;
2) improvement and optimization of service
processes that support customer loyalty and
satisfaction by providing certain types of assistance
and service; 3) creation of new services and
standardization of procedures for their provision in
the war; 4) optimization of marketing tools and sales
mechanism due to increased security risks;
5) optimization of processes and costs in various
subsystems.
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Serhii Krasovskyi, Olena Vasylenko
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Integration of ICT into management processes
and improvement of operational efficiency of all
processes contributes to the efficiency of hotel
facilities management: their profitability,
occupancy, and cost-to-occupancy ratio. This
correlates with the findings of other scholars on the
positive effects of technology in the hotel business
[2], [3], [4]. The standardization of IT tools ensures
the optimization of Ribas Hotels Group's
management processes and the efficient
organization of hotel sales. The standardization of
IT tools in management depends on the size of the
hotels and their room capacity. ICT automates the
booking processes at the company's facilities and
sales management processes at the hotel, combining
several sales channels. Digital tools automate the
sales function, the function of changing the
availability of rooms, and tariffs, and make it
possible to create different promotional offers from
a single interface, without the need to manage this
data on each channel separately.
To implement the concept of customer
experience and customer relationship management,
the Group has integrated CRM (customer
relationship management), a customer database
management system designed to automate
interaction strategies, including increasing sales,
optimizing marketing, and improving customer
service. With the use of CRM in hotel facilities,
business processes for communicating with guests at
various stages of service provision are built:
communication with the guest after departure;
formation of a special offer for a guest who chooses
between hotels and makes a reservation/change of
reservation; sale of additional services to a guest
who has already made a reservation (transfer, SPA,
etc.), [22]. The empirical results correlate with the
theoretical provisions of the concept of customer
experience in terms of functional and emotional
support of customers through communication, [15].
The findings of this study also confirm the
importance of active communication in the process
of providing services to hotel guests, especially in
the face of unpredictable changes, [13]. The
company uses a PMS (property management
system) to manage its room stock (controlling
occupancy and booking). The PMS is integrated
with the Booking Engine booking module, which
makes it possible to book a room online on the
hotel's website, pay for it, change dates, or cancel
the reservation.
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Serhii Krasovskyi, Olena Vasylenko
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Conflict of Interest
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WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2023.19.105
Yuliia Zemlina, Svitlana Peresichna,
Oksana Oliinyk, Olha Danylenko,
Serhii Krasovskyi, Olena Vasylenko
E-ISSN: 2224-3496
1144
Volume 19, 2023