1.1 Introduction
Phygital service integration refers to the strategic combination of physical service delivery and digital technologies to create a seamless, interactive, and personalized customer experience across service environments (Gretzel et al., 2015). In the hospitality industry, it involves the use of digital tools such as mobile applications, self-check-in kiosks, artificial intelligence-driven customer support, and smart room technologies alongside traditional face-to-face guest services to enhance efficiency and satisfaction (Buhalis & Amaranggana, 2015).
In recent years, the hospitality sector has experienced rapid transformation driven by technological advancement and changing guest expectations. Hotels are increasingly adopting phygital solutions to improve service delivery, reduce waiting time, and provide personalized guest experiences. According to Neuhofer, Buhalis, and Ladkin (2015), the integration of smart technologies in tourism and hospitality settings plays a significant role in co-creating value between service providers and guests, thereby improving overall experience quality.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.
1.2 Background of Study
Historically, phygital service integration in the hospitality industry is rooted in the gradual evolution of service delivery systems from purely traditional, face-to-face interactions to digitally enhanced and technology-driven customer experiences. According to Gretzel, Sigala, Xiang, and Koo (2015), the emergence of smart tourism marked the beginning of integrating digital technologies with physical service environments to improve personalization, efficiency, and customer engagement. According to Gretzel, Sigala, Xiang, and Koo (2015), phygital transformation in service industries combines digital innovation with traditional human interaction to enhance value co-creation between service providers and customers. In the hospitality industry, this integration is increasingly reshaping how hotels operate, communicate, and deliver services to guests, especially in highly competitive urban destinations.
Buhalis and Amaranggana (2015) asserted that the adoption of smart technologies in tourism and hospitality environments enables real-time service personalization, operational efficiency, and improved guest engagement. They further contended that digital tools such as mobile check-ins, smart room systems, artificial intelligence chatbots, and online concierge platforms are becoming essential components of modern hotel service delivery. These innovations reduce waiting time, improve accessibility of services, and allow guests to interact with hotel systems in more flexible and convenient ways.
Neuhofer, Buhalis, and Ladkin (2015) stated that smart tourism ecosystems are designed to enhance guest experiences by integrating physical and digital environments into a unified service system. They affirmed that when properly implemented, phygital systems enable hotels to anticipate guest needs, deliver customized services, and create memorable experiences that extend beyond traditional hospitality encounters. However, they also noted that the success of such systems depends on the readiness of both service providers and users to adapt to technological change.
In the global hospitality sector, the transition toward phygital service models has been accelerated by increasing consumer demand for convenience, speed, and personalization. Sigala (2018) reported that hotels are shifting from multichannel service delivery systems to integrated phygital models that combine online and offline experiences. According to Sigala, this shift is driven by the growing influence of mobile technology, artificial intelligence, and data analytics in shaping guest expectations and service standards. She further stated that guests now expect seamless transitions between digital interactions and physical service encounters without disruption.
Tussyadiah (2020) contended that automation and digital transformation in tourism and hospitality must be carefully designed to complement human interaction rather than replace it. She asserted that while digital technologies improve efficiency and service accessibility, they may also introduce challenges such as reduced human contact, technical failures, and user resistance. In her view, successful phygital integration requires balancing technological innovation with emotional intelligence in service delivery (Tussyadiah, 2020).
In the African context, particularly Nigeria, the hospitality industry is gradually embracing digital transformation, although at varying levels of implementation. Otegbulu (2018) reported that the Nigerian hospitality sector is experiencing increased adoption of information and communication technologies to improve competitiveness and service efficiency. He asserted that hotels in urban centers such as Lagos are investing in digital platforms to enhance customer experience, although infrastructural limitations and inconsistent power supply continue to pose challenges to full-scale integration. Gretzel et al. (2015) affirmed that the effectiveness of phygital systems in hospitality depends on the alignment between technology infrastructure, employee competence, and guest digital literacy.
In Nigeria, Sigala (2018) observed that while digital transformation is progressing, many hotels still struggle with integrating physical and digital service systems effectively. She contended that issues such as lack of staff training, inadequate infrastructure, and resistance to technological change hinder full realization of phygital benefits. Similarly, Neuhofer et al. (2015) affirmed that successful implementation requires continuous investment in both technology and human capital development.
This study is set against the backdrop of growing digital transformation in the hospitality industry and the need to evaluate how phygital service integration influences guest experience in selected hotels in Victoria Island, Lagos.
1.3 Statement of Problems
Investigation revealed that the integration of phygital services in the hospitality industry has increasingly reshaped how hotels engage with guests by blending physical service delivery with digital technologies to enhance convenience, personalization, and responsiveness. In selected hotels within Victoria Island, Lagos, there is growing adoption of digital tools such as mobile check-in systems, online concierge services, smart room controls, and AI-driven customer support systems. However, the extent to which these innovations improve or complicate guest experience remains a concern among industry stakeholders.
Furthermore, several hotels in Victoria Island operate with varying levels of technological readiness, leading to a gap between guest expectations and actual service delivery. In addition, some hotels that effectively integrate phygital systems report improved efficiency, faster service delivery, and higher levels of guest engagement, suggesting that outcomes are not uniform across the sector. It is against this backdrop that this study seeks to examine the impact of phygital service integration on guest experience in selected hotels in Victoria Island, Lagos.
1.4 Aim and Objectives of Study
The aim of this study is to examine the impact of phygital service integration on guest experience in selected hotels in Victoria Island, Lagos. In achieving this aim, the following specific objectives were laid out as follows:
- To identify the types of phygital service technologies adopted in selected hotels in Victoria Island, Lagos.
- To assess how phygital service integration influences guest satisfaction in selected hotels in the study area.
- To evaluate the effectiveness of digital and physical service coordination in enhancing guest experience in selected hotels.
- To examine the challenges faced by hotels in implementing phygital service systems in Victoria Island, Lagos.
- To determine guest perception and acceptance of phygital services in selected hotels within the study area.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What types of phygital service technologies are adopted in selected hotels in Victoria Island, Lagos?
- How does phygital service integration influence guest satisfaction in selected hotels in the study area?
- How effective is the coordination between digital and physical services in enhancing guest experience in selected hotels?
- What challenges do hotels face in implementing phygital service systems in Victoria Island, Lagos?
- How do guests perceive and accept phygital service integration in selected hotels within the study area?
1.6 Research Hypotheses
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between the types of phygital service technologies adopted and guest experience in selected hotels in Victoria Island, Lagos.
- H1: There is a significant relationship between the types of phygital service technologies adopted and guest experience in selected hotels in Victoria Island, Lagos.
Hypothesis Two
- H0: Phygital service integration has no significant influence on guest satisfaction in selected hotels in Victoria Island, Lagos.
- H1: Phygital service integration has a significant influence on guest satisfaction in selected hotels in Victoria Island, Lagos.
Hypothesis Three
- H0: There is no significant effect of digital and physical service coordination on guest experience in selected hotels in Victoria Island, Lagos.
- H1: There is a significant effect of digital and physical service coordination on guest experience in selected hotels in Victoria Island, Lagos.
Hypothesis Four
- H0: There is no significant relationship between implementation challenges and the effectiveness of phygital service systems in selected hotels in Victoria Island, Lagos.H1: There is a significant relationship between implementation challenges and the effectiveness of phygital service systems in selected hotels in Victoria Island, Lagos.
Hypothesis Five
- H0: Guest perception and acceptance of phygital service integration have no significant effect on service experience in selected hotels in Victoria Island, Lagos.
- H1: Guest perception and acceptance of phygital service integration have a significant effect on service experience in selected hotels in Victoria Island, Lagos.
1.7 Significance of Study
It is believed that at the completion of the study, policymakers in the hospitality sector will be better informed on the practical outcomes of digital transformation in hotels, which will support more effective regulation of technology adoption in service delivery systems. Also, hotel guests will benefit from improved service delivery systems as findings will highlight how digital and physical service integration affects convenience, responsiveness, and overall hospitality experience.
Furthermore, hotel guests will benefit indirectly from improved service standards as findings will accentuating key areas affecting their experience, including responsiveness, personalization, and ease of service access.
Lastly, researchers and academic institutions will have access to empirical data on phygital service integration in a Nigerian hotel context, contributing to future studies on digital transformation in the hospitality industry.
1.8 Scope of Study
The scope of this study is confined to selected hotels in Victoria Island, Lagos State, Nigeria, a major hospitality and business district regulated under the Lagos State Ministry of Tourism, Arts and Culture. The study focuses on phygital service integration within these hotels, examining how the combination of digital technologies and physical service delivery influences guest experience.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Phygital Service Integration:
Phygital service integration refers to the combination of physical hospitality services and digital technologies to deliver a seamless and interactive guest experience. According to Gretzel, Sigala, Xiang, and Koo (2015), it involves blending human service interactions with digital platforms such as mobile applications, self-service kiosks, and artificial intelligence systems to improve service delivery in tourism and hospitality settings.
Guest Experience:
Guest experience is the overall perception and emotional response a customer forms before, during, and after staying in a hotel. Neuhofer, Buhalis, and Ladkin (2015) stated that guest experience in modern hospitality is shaped by both physical interactions and digital touchpoints, which together determine satisfaction, comfort, and loyalty.
Hospitality Industry:
The hospitality industry refers to businesses that provide accommodation, food, and related services to guests. Buhalis and Amaranggana (2015) contended that the industry has evolved significantly due to technological advancements, with hotels increasingly adopting digital systems to enhance service quality and competitiveness.
Digital Transformation:
Digital transformation is the process of integrating digital technologies into all areas of service delivery to improve efficiency and customer satisfaction. Sigala (2018) reported that in the hospitality sector, digital transformation involves the use of smart technologies to create more personalized and efficient guest services.
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