Introduction
Technological advancement has impacted people and businesses in so many different ways that now its possible to have multiple channels of distribution, support and collaboration. For example facebook, a social networking site allows the friends to keep in touch with each other. Twitter allows the usage of its services for promotional deals and such for corporate users. Skype is used by companies to reach the global marketplace bringing down transglobal telephony costs down. The emergence of these web 2.0 technologies have brought down costs to a level that the global market place is more reachable and it cannot be ignored. Our focus in this report will be fixated on how these technologies have evolved traditional hotel reservation mechanisms.
Traditional Reservation Method
Traditionally methods of reservation were manual. An interested customer had to call in a hotel and check for availability and rates manually. He had no way of knowing how the hotel looked except what he can be told over the phone. The traditional method was not cost effective, as it had;
agents to answer calls
cross border telephone rates
high occurrence of human error
Modern Reservation Method
These days almost all hotels can be booked through the internet whether directly or indirectly. The input of web technologies has allowed the hotels add value to unprecedented levels. Database management systems and global distribution systems now help hotels manage their inventory of rooms. Now a customer can query through the internet directly and have a look automatically which rooms are available during their dates of travel, how the room looks like, complimentary features that the rooms come with and facilities. They can then proceed to book the hotel room, obtain an email confirmation and then just turn up on the day itself with a credit card that was used to authorize the reservation.
Technologies such as google maps which the virtual version of a map or street photo has enabled hotels to present the area around themselves. This also helps highlight nearby tourist havens and places of attractions. However this could also be a double-edged sword if the hotel is situated in a run down area. Therefore consumers can make an informed decision.
Online Travel Agencies
Hotels are not the only ones who are selling directly on the internet. There are also the internet version of travel agencies which help consolidate and sell for hotels around the globe. These sites provide a plethora of information for users of their sites. A search shows hotels with rooms available in the area and are ranked according to price. Furthermore, pictures of the room, area and maps of the location are provided. The user is also then provided with the choice of purchasing flight tickets, rental cars available at the area, tickets for entertainment acts performing in the area and tour packages for attractions located in the city. These one-stop shop sites complements and enhances the product value for the consumer.
This wouldn’t be possible without the influx of emerging technologies which run the backend. These sites are connected to global distribution systems of hotels and airlines, which return feedback based on the result entered and as a result the consumer gains plenty.
These online travel agencies also offer value as they are at times much cheaper than buying directly from the hotels themselves. As a result the hotel is able to obtain a better price for their rooms and if they are under capacity, they authorize such sites to provide deep discounts on the rooms that they would otherwise not sell.
The disadvantage to this is that hotels often hand over their pricing powers to these external parties and as a result lose their ability to negotiate pricing.
Security
The exponential increase in e-transactions and transfer of private data required a more secure way of transacting online. Secure systems have been developed for this very purpose such as SSL certs which mask communications between the client and hotel at server end and as a result guarantees the customer that transacting or purchasing via the site is safe.
Cost Savings and Revenue
The cost savings that accumulated through adopting the internet as a new distribution system and using new technologies can be substantial. The decrease in extra staffing in the reservation process, the ability to maximize occupancy rates, the reliance on technology to keep records and facilitate the hotel to customer relationship and lower marketing costs with the cost effective reach via the internet.
Conclusion
Info-communication technologies if adopted and deployed in the right way can benefit an organization in many ways possible. The increase in revenue and substantial cost savings are an undeniable advantage. Everyday there are new and improved ways of transacting, selling and reaching the global consumer. The organization that is slow to embrace these tools are at the losing end and disadvantaged as compared to their competitors.
