Before we stress the role of information and communications technology (ICT) on hotel room reservation services, let us have a brief understanding of what ICT is about. ICT is the merge of telephone networks with computer networks through a single link system. Via information technology, electronic commerce (e-commerce) allows ninformation to flow through the Internet on a worldwide basis with virtually no entry barriers. The e-commerce route is an advantage to all organisations around the world in most industries because it allows for tremendous cost savings including the hotel industry. It is now serve as a key strategy and one of the most important growth drivers.
Hotel reservation process in the past
Prior to the Internet, when one wants to make a hotel reservation, he is required to make enquiries through the phone or make a trip down to the hotel personally. By making long-distance calls will cost the customer a higher cost and he may also have to encounter telecom network problems. By sending mail also faces the risk of taking longer peiod of time and even lost mail. Even if he may consider approaching a travel agent, he may have to bear the additional cost for the service which is equally troublesome. Thus, the hotel reservation process in the past was inefficient.
Introducing Information and communications technology
Nowadays, customers are able to go to the web and search for pictures of hotels and rooms, information on prices and deals. They also able to read on the travellers' reviews with the online travel agent.
As online hotel reservations are gaining popularity over the years, managers in the tourism industry has emphasized on Information Technology (IT) for future long-term growth and competitive advantage. Various hotel website featured web booking engine that allows both single and group reservations, even for multiple dates in one go with immediate confirmations through credit card guarantees or deposits that are processed directly through the secured web booking page, increasing direct booking revenues instantly. These web booking options are extremely flexible and easily customizable to your specific needs. They may be specified differently for each Rate/Package type, or kept the same for all as per your Hotel booking / cancellation policies.
The booking process has been kept uniquely simple for your prospective guests, to increase conversions by letting them complete their bookings in well defined, easy to follow steps, quickly.
For example,
- Guests can view rooms, pricing and room availability
- Receive a confirmation email
- Guests can only book by room category and not specific rooms
- Multiple rooms for multiple guests (groups) are allowed as well as a request for an extra bed (rollaway)
It also features online travel sales which includes air tickets, hotel, car rental, touring packages, places of attraction, and advertising on travel related sites. This will reduce the commissions paid to travel intermediaries as suppliers will be directly linked to customers.
Large hotel chains have direct connections to the airline national distribution systems and these provide hotel information directly to the hundreds of thousands of travel agents that align themselves with one of these systems. Several large online travel sites do send the hotels' information and rates downstream to literally thousands of online travel sites, most of which act as travel agents. They can then receive commission payments from the hotels for any business booked on their websites.
Limitations
Through the introduction of ICT, there is a higher cost incurred such as initial outlay and maintenance costs. In addition, customers also face the risk in regarding the security issue as they are required to key in their credit card particulars. If the online travel site is not strongly secured, these data may be leaked out to the hackers and get misused.
Conclusions
However, through the improvement of technology, ICT is able to help the organisations in saving costs. It has indeed made positive changes for the hotel reservation process, helping the organisations to reach its customers in a more efficient and effective way. At the same time, it also helps to improve the hotel industry's profitability as well.
