UOLFT/F2 - ISORG
The objective of this mini-research project is to evaluate and discuss how new technologies change and affect business processes. This project shows how information communication technology (ICT) has changed the operations of hotel operations, particularly in room reservation processes.
ICT merges telephone networks with computer networks through a single cabling or link system. This allows large economic incentives, as in huge cost savings due to elimination of the telephone network, merging the telephone network with the computer network system. This has stimulates the growth of organizations with the term ICT. Hence, ICT transforms business and its organisation in the way they operate.
Changes in the business environment leads the global economy to emerge and strengthen. It also causes to increase the knowledge of our societies and the industrial economies. Due to globalisation, business organisations need to think 'globally' as the business environment now is more challenging than ever and that it is a global competition.
Business oraganisations need to realise how businesses operate in a global economic environment basically the increase in trading internationally. To cater this, ICT has solved the distance problem in most business situations as well as problem in decision making.
Hence, most business organisations must develop good technology infrastructure to support their goals and also by upgrading their technologies regularly, for instance upgrading their cashier software and guests tracker software, to keep up with the challenging global environment. This strategy is especially important to the service industry such as the hotel industry.
Hotel room reservation used to be a hassle in the past. The previous process usually involves conventional way such as a trip down to tour agency, contacting hotels and tour agency by telephone and fax. But with advanced information and communication technology (ICT), the process is much more simplified and convenient.
The term ICT literally to clarify its meaning which refers to the merging (convergence) of telephone networks with computer networks through a single cabling or link system to support business goals inline with the fast changing business conditions and new technologies.
For example, The Fullerton Hotel rents Sabre System software that provides business solutions to link business and customer (B2C). Another example, Expedia, an all–in-one travel website uses Pegasystem to manage their business processes.
Filtering at the website allows customers easy search for hotels by choosing our destination, check-in and check-out date, number of rooms, number of persons going, budget and preferences on the type of hotel and amenities such as breakfast, pets allowance, internet access and business centre.
Customers can take an online tour of the hotel and even choose which room they want to stay in. They can surf nearby restaurants and attractions all within minutes. It is quick and easy. Example, Marriott Singapore provides 360 degrees virtual tour.
The hotel is able to provide detailed information about the hotel online hence customers are able to view it anytime and anywhere. Customers can book anytime and anywhere hence hotel administration can receive reservation confirmations round the clock. Easy cancellation allows hotel administration to take note quickly.
Hence, hotels are able to provide what is interesting about their hotel and their surroundings, e.g. the Pan Pacific Hotel is close to Suntec City Convention and Shopping Centre, the Singapore Flyer, Marina Bay Sands Casino and Marina Square Shopping Centre.
For example, Riviera Resort provided details of the hotel facilities and amenities and its surroundings.
Maps can also be found on the websites; both hotel and transaction broker websites. Some of these maps are actually supplied by Google. This allows customers to be familiar of the hotel surroundings.
The great thing about Google map is that it has also street view. Here, customers can have an idea about the hotel surroundings or expect what to see when the get to their hotel.
Customers can also download or print out these street view images.
The way Google charges the hotel and the transaction brokers brokers vary for its map usage. Some are sponsors of Google while others are charged with a service fee.
Another advantage of online booking is the convenience. It takes little time and minimizes interaction with employees. If customers need to communicate, they can send email and hotel employees can provide much more detailed information than they can in person. However some hotels would not reply quickly or even bother to reply. Hence, the conventional method of calling the hotel or faxing might speed up the reply process.
Some hotel websites are equipped with live chat service where customers can make queries right away. Clarkton Hotel in the Philippines is an example of this service. Hence, hotel staff could reply customer queries immediately.
Another aspect of using ICT to support hotel reservation services is by using software to gather customers’ feedback. For instance, OpinionLab software used by Expedia to enhance customer relation management.
Another advantage is, with advanced hotel room reservations system, it effectively and efficiently reduces the cost for both customer and hotel businesses.
For instance, Hotel 81 utilises an alternative online hotel reservation system known as thebookingbutton.com.au which does not charge any commissions based on the services provided. Unlike other hotels that use Sabre Software.
Few people realize that once customers make a reservation, their information is stored in the computer system. Re-booking at a later date then becomes quick and easy. In addition, this form of booking offers security and complete privacy. In certain cases, regular return customers receive additional rewards and incentives for their loyalty. For example, Ctrip uses “Ctrip Rewards” to express their appreciation to their customer and hence enhance customer relationship management.
Payment has never been easier as customers can pay online. Customers need to provide their credit card information to confirm their reservation.
However, payment security is also an issue while doing hotel room reservation online. credit card fraud is the main culprit of payment security. Thus, some suggestions rise out that is when making reservations with a hotel either directly or through their website, it is wise to always write down the confirmation number.
However, payment security is also an issue while doing hotel room reservation online. credit card fraud is the main culprit of payment security. Thus, some suggestions rise out that is when making reservations with a hotel either directly or through their website, it is wise to always write down the confirmation number.
Another way for the hotel to avoid credit card fraud is to ensure that the credit card owner is present upon arrival.
Furthermore, due diligence is required on the customer side, ie, to do research on the credibility of a particular transaction broker. For example, a tourist may be cheated by a transaction broker if he is information asymmetric. Thus, a research for credibility of a particular transaction broker has to be carried out.
People who do online hotel room reservation must have internet access. Thus, this would create substantial barriers to reach out customer who are not technology savvy. Principal hotel and transaction broker will lose a pool of potential customers.
In summary, using ICT has their advantages and disadvantages. The convenience brought about by the use of ICT creates other concerns in the aspect of the security of the transaction and the requirement of the customer to be discerning in their choices of website used.
In addition, saved cost is based on the condition that an internet is accessible. People would not be able to book hotel room online if no internet accessibility. Furthermore, it is difficult to gather information without internet accessibility as internet provides a lot of information such as report of the hotel prices, well-organized pictures, travel guide and price match.
In addition, saved cost is based on the condition that an internet is accessible. People would not be able to book hotel room online if no internet accessibility. Furthermore, it is difficult to gather information without internet accessibility as internet provides a lot of information such as report of the hotel prices, well-organized pictures, travel guide and price match.
