Project title:
How info-communication technologies (ICT) change hotel room reservation services?
Introduction
Info-communication technology is simply “Information Technology and Communication Technology”. It refers to the merging of telephone networks with computer networks through a single cabling or link system. The use of this new kind of system has brought about huge cost savings to many organizations in many industries including the hotel operations. In the following, we shall explore how information and communication technologies have changed hotel room reservation services.
Past hotel room reservation services
In the past, an individual can write or telephone the hotel directly, or approach a travel agent to make hotel room reservation. However, with current developments in technology, the above methods are considered slow and costly. Writing to the hotel takes time as with olden days’ snail mail. Moreover, there is the danger of loss of mail in the process of delivering. Making long-distance calls to the hotel can be considered huge costs using the domestic phone, and there is a problem of clarity of signals over the phone which can cause communication breakdown. By approaching a travel agent, there are also costs involve as the agents will charge a flat nominal fee for the service rendered to make hotel reservation. Therefore in the past, hotel room reservation process is considered cumbersome and inefficient.
Changes that ICT brought to room reservation services
Now, an individual can make room reservations online anywhere anytime so long as there is an electronic device with internet access, thanks to the development of ICT. Moreover, using online to make hotel room reservations has brought about a number of benefits.
First, an individual can book rooms from home by using online security to protect their privacy and financial information. Unlike the past where our personal information may be given to a middle party (travel agent), where there is risk of our information leaked out or sold to others. However, there is no 100% guarantee that using online security can 100% protect our privacy as technology improves, people are getting more IT inclined, who may be able to hack into the system. Thus, it is our responsibility and the hotels’ to create a stable and safe system to prevent any loss from breakdown of system.
Second, individuals can use services provided by the online travel agents to compare prices and facilities at different hotels. Alternatively, individuals can also make room reservations through transaction brokers like Agoda.com. A transaction broker is one who indirectly represents both the buyer and the seller for them to complete each transaction.They are not responsible for the operational efficiencies of the hotels offered in their websites but only the follow-up documentations and confirmations. At Agoda.com, individuals can view pictures of hotels and rooms, information on prices and deals, even information on local resorts. There are also reviews or ratings of the hotels’ facilities. In this way, individuals can base on their personal preferences and budget, and make reservation with the hotel that best suits their requirements. However there is a risk that whatever information provided in the website may not be entirely the truth. Nevertheless, this can be overcome by cross checking against other websites or enquire from family and friends if possible.
Third, online hotel reservations are helpful for making last minute travel arrangements. To the hotels, they may want to drop the price of a room if some rooms are still available. To individuals who may be backpackers, who usually decide on a last minute stay over at certain places, this comes in handy. All these can be done just by updating details on the website where customers can see from all over the world. However, again, there is a risk of system breakdown which fails to update the details which may result in possibly many people fighting for the same deal, thereby causing any loss to both the individual(loss on disruptions to travel plans) and the hotel business (loss in terms of compensation).
Fourth, large hotel chains typically have direct connections to the airline national distribution systems (GDS system which allows individuals to only pay at the time of check in or check out of hotel instead of paying at time of reservation). These in turn provide hotel information directly to the hundreds of thousands of travel agents that align themselves with one of these systems. This provides a one-stop convenience for individuals to make room reservations. Moreover, given the reputation of the large hotel chains and the associated airlines, individuals can enjoy a higher form of assurance when using the system for bookings. However, there may be a disadvantage such that individuals may not be able to compare prices with other hotels. Then again, people who can afford to choose this airline service may not see this as an issue as they have the ability to spend.
Fifth, individuals can also book directly on the hotel’s website. An increasing number of hotels are building their own websites to allow them to market their hotels directly to consumers. An example would be Holiday Inn who has their own website for direct booking. On top of that, Holiday Inn’s rooms are also offered on behalf by transaction brokers (e.g. Agoda.com). As we can see, Holiday Inn is doing this to reach out to as many consumers as far as possible which is possible thanks to ICT. Moreover, making reservations directly with the hotel, individuals can benefit from the hotel’s full cancellation policy as well as not needing a deposit in most situations. This creates convenience for the consumers. However, from the hotel’s point of view, this may be a form of business risk as the hotel must bear losses if customers last minute cancel the reservation or even ‘no show’ despite reservation.
Lastly, the service provided by say Agoda.com to the hotels and the online consumer is that they provide a single database from which all reservation sources draw immediate room availability and rates. It is very important that hotels integrate with all the supply channels so that their guests are able to make accurate online bookings. Moreover, with ICT, there is this OPERA Reservation System (ORS), a true centrally managed central reservation system, at the heart of the hotel industry's first enterprise-wide room inventory management system, where some hotels use to enable them to maximize bookings to increase revenue.
Conclusion
Conclusion
Therefore, from the above arguments, we can see how much benefit ICT has brought about to different parties. For instance, ICT has brought about convenience to consumers and hotels’ business with speed and accuracy in placed. As with current societal pace, everything is about speed and accuracy, ICT has indeed brought in many useful changes helping the economy to flourish. However, we must always bear in mind the possible risks involved which may cause serious and huge losses.
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