Introduction
ICT is an acronym that stands for Information Communications Technology. ICT consists of all technical used to handle information and improve communication. In today context, we are living in a world of communication of internet, email, video conferencing, mobile phone, sms, video- call, wireless broadband, I-phone etc. The rapidly growth and development of ICT lead to effective communications which lead to greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. It is like moving towards living in a borderless world. From this, we can see how ICT are designed, applied and used within the organisational settings to have better connection to people all around the world with the rapid advancement of technologies.
Past
(i)Shopfront
Hotel transaction in the past or present uses business to customer model (B2C) just that at present functions are more automated making it more effective and efficient for both the hotels and customers. During the past, interested customer will make enquiry of their accommodation through the customer service hotline or they will personally make a trip down to the hotel personally. In order to handle the increase number of enquiries of customers and calls they have to employ more employees thus increasing labour cost. Not only that, the customer will not have the idea of the hotel outlook and the services that they provide in details. They will have a clearer idea of the hotel only when they make a trip down to the hotel personally. Unlike nowadays, where we are able to view the outlook and the facilities located around the hotel via Google Maps.
(ii)Bookings
Beside making a trip down to the hotel personally, customers can also book their hotel via travel agency where this agency provide many standard packages for them to compare and see which package suit the customer’s preferences. Customers will have limited choices of travel package to compare and choose from. Not only that, the customers will have to go down personally to the travel agency to have a clearer idea of the packages offered before they decide to purchase. Usually in the package, agency will let the customer choose their preferred hotel from a list of hotels and the hotels have different availability date and prices to suit different customer’s requirements and budget.
Below is an example of travel package:
· CTC Travel Agency
· 4D3N Experience the Magic @ Hong Kong Disneyland (HKDL)
· 2 NIGHTS ACCOMMODATION @ CHOICE OF HOTELS
· 1 NIGHT ACCOMMODATION IN HONG KONG DISNEY HOLLYWOOD HOTEL
· ROUND TRIP AIRPORT / HOTEL TRANSFER BY SEAT-IN-COACH
· HONG KONG CITY TOUR
· DISNEYLAND DAY PASS + EXPRESS STAR PASS*
· BONUS FREE 2nd DAY PASS (VALID TILL 29 JUN'10)
· fr $568
(iii)Transaction
Before the advancement of ICT that boost the communication networks of people all around the world there is nothing such as internet banking where customer can pay for their hotel via the internet. In order to make the payment, the customers can either pay using cash, cheque before or upon arrival of the hotel. A hard copy of confirmation receipt will be issue to the customer upon issue of payment. The hotel will incur more cost as providing hard copy of receipt to every customer means more paperwork is needed. Travel agency provides a one stop service where customers can book and make payment for the packages they choose. However, travel agencies charged a commission that is why customers have to pay higher price than the normal hotel rate.
Present
The rapid development and commercialization of information and communication Technologies for the travel and tourism industry has prompted hotels and other enterprises in this sector to increasingly adopt these technologies. The ICT based products and processes help the hotels to enhance the operating efficiency, improve the service experience as well as provide a means to access markets on a global basis.
We shall now look into the different areas how ICTs change hotel room reservation services:
(i) Non importance of Shop front
An increasing number of travel agencies and hotels offer their services through online transaction brokers. These transaction brokers are websites such as asia-travel, hotels.com and zuji.com. They are supported by computer reservation systems, global distribution systems or tour operator’s videotext systems thus replacing the need for a physical shop front. Researchers such as Gilbert noted, “IBM specialists have predicted that by the early 1990s, central automated systems could remove the need for travel agents. Alternatively, there is little evidence that direct sell is on the increase.” As the web grew in terms of number of connected customers and as a more secure communication channel for funds transfer, the tourism industry quickly accommodated the technology.
In this context, the role of hotel websites and their continuing importance as part of a hotel’s channel distribution strategy can be a valuable source of competitive advantage.
(ii) Bookings
Instead of making personal trips to the travel agencies, the web has made bookings of hotel rooms much simpler. By reserving a hotel room online, a new customer would just need a first and last name, a valid address, their credit card number and phone number. Customers would be informed about the different hotels and the different room types available and the prices for each of the room types. Based on the information given, the customer can then make informed decisions in what they want.
Many of such hotel websites are trying to do things differently from competitors. This can mean offering a different set of features and a different array of services. For instance, Wotif.com provides star ratings for the different hotels available while hotels.com allows users to narrow their search through their price budgets and providing maps of the hotels and other nearby hotels in the area.
(iii) Transaction
Payment for hotel room reservations has been made different through the means of wireless payments. Instead of passing cold hard cash or a cheque to a travel agency in the past, now all we need is just a credit card to settle the payments online.
However, there are also limitations about such payment methods. Certain websites does not allow payment through certain credit cards. An example is that hotels.com does not allow payment through JCB cards.
(v) Cancellation
Hotels websites has now allowed cancellation of hotel rooms, even at the very last minute. This has allowed customers a lot of convenience. However, cancellation fees may be applicable at certain websites. For instance, Agoda.com charges a processing fee of USD $15 per cancellation of booking. While for websites like Bookings.com, they do not charge any booking fees, administration fees or cancellation fees.
(vi) Promotions
There are 3 levels of relationships characterized by hotels websites and they are Level 1: Basic, Level 2: Accountable and Level 3: Partnership. Here, we shall look closely at level 3. At this level, the company works continuously with customers to discover ways to better deliver value. The partnership level of relationship refers to website features that are geared up to add value to this company-customer relationship. Value is added through loyalty programs, exclusive hotlines and personalized accounts.
For instance, agoda.com allows users to earn points worth 4-7% of each booking. These points may be used towards your next booking for a reduction in the room rate.
