The Relevance of Digitalization in Business Strategies Performance in Times of Uncertainty (Based on the Hotel Industry of Saint-Petersburg)

This study examines the concept of implementing digitalization into business strategies in the context of the uncertainty of the modern world using the example of the St. Petersburg hotel industry to achieve the following objectives: firstly, to explore the relationship between hotels' choice of certain business strategies and the unpredictable environment; secondly, to investigate whether digitalization in combination with specific business strategies can help hotels to overcome the consequences of this uncertainty. In this paper authors rely on Michael Porter's theory of Generic Strategies and make three assumptions, each concerning one of Porter’s strategies: Cost Leadership, Differentiation and Focus strategy. To test our assumptions, we use a case study methodology, including in-depth interviews with hotel representatives and a thematic analysis of different hotels of the same segment in the territory of St. Petersburg. Our focus is on 4 hotels of 3-star category with room stock up to 50 rooms. The results show the positive impact of digitalization on hotel business and its competitiveness, especially when combined with a differentiation strategy. This study extends the application of Porter's theory to the hotel industry by highlighting the importance of digitalization for successful strategies implementation in times of environmental instability. Its findings also attract the attention of researchers to the study of various aspects of digitalization as a phenomenon, as well as to the study of unfavorable trends in the operation of the hotel business in other cities of the Russian Federation and other countries. Keywords: hotel industry, strategic management, digitalization, uncertainty, strategies, hotel business, unstable environment, modern world and its trends.