Sunday, October 3, 2010

"How info-communication technologies change hotel room reservation services"

Advancements in technology have results in numerous changes in today’s world. Have you ever thought about what is it that enables us to be able to shop online by a click of the mouse? Have you ever wondered what is behind, or rather within, this screen which we stare at?
Info-communication technologies (ICT) are defined as the combination of informatics technology with other related technologies, specifically communication technology. They cover any other products that store, retrieve, manipulate, transmit or receive information electronically in a digital form. Common examples are personal computers, digital television, mobile phones etc. They have indefinite boundaries and for most devices, they may have no definite spatial form. ICT revolution is responsible for much of the framework for the new society where social activities have moved from “spaces of places” to “spaces of flows”. ICT are transforming business.
Let us look at how ICT has brought about changes in the hotel room reservation services.
Hotel room reservation in the past:
In the past, when an individual wishes to reserve a room in a hotel, he would have to either walk in to the hotel to make a reservation, or seek services from a travel agency which will in turn make a reservation on behalf of him. Along with this, there are bound to be “human errors” and also wastage of time due to the introduction of a third party, in this case the travel consultant. Communication through calls to reserve rooms does have its drawbacks as an individual would have to make long distance calls and this would mean incurring an extra sum. Similarly, hotel room reservation through travel agencies too will incur an additional “middleman cost”. Hence, the traditional ways of hotel room reservation do pose problems such as time and money wastage, and increases the chance of error in booking.

In today’s fast paced and globalised society, organizations need to be aware of the impact of externalities and must be customers orientated. With the help of info-communication technologies (ICT), organizations are able to redesign business activities and transactions using information system.
Firms in the hospitality industry are now using computerizing systems to be competitive. In order to be competent, hotels in the industry have tried to increase efficiency by reducing the possible man made errors during the process of hotel room reservation. Therefore, they are now going into the computerised age of online booking and electronic services.
Let us look at how ICT has brought about changes in the hotel room reservation services.
Now with this new technology, hotel room reservation can be completed within a click of the mouse. This new way of booking rooms saves times and gives its users more assurance. Users are now able to look for information of the hotels they are interested in before making a decision as to where they would want to stay. On the same website, they will be able to look at hotels within the same vicinity, providing them with more choices. Somehow, ICT has brought the world closer and users are able to make their reservation in the comfort of their own home and at their own available time. 
Most hotels pay the intermediary fees to promote their hotel to various customers. Examples are asia-travel.com and hotel.com website, which hosts a variety of promotion and advertisements of various hotels online, and thus allowing travellers to choose what they think is suitable for them. After which, customers may check out that particular hotel company’s website to find out more details of the hotels such as its interior design, room condition, occupants’ reviews and in house entertainment services available. These websites also provide booking of flights bundled with hotels stays.
As such web pages are to be viewed by customers from all over the world, different language selections are often available. This is essential because a language barrier would deter customers from using the entire service provided by the website totally. An example would be ctrip.com. This website does prompt its user to select his language preference at the very beginning of the visit. However, asia-travel.com and hotels.com do not have such prompts but instead, viewers would have to change it manually. This may be a disadvantage to them because the customer may not know how to change the language selection when not prompted, or he may not even know that difference language selections are available. Thus, websites which do take note of this point allows their users to save time and there will not be any errors or misunderstanding due to miscommunication during the online booking on the hotel’s side. Such functions too allow the hotels featured on the website to reach to a larger pool of customers as language will not be a barrier in the booking of hotel rooms, cutting down on room booking and cancellation errors.
Hotels can now publish advertisements on the website, hence reducing their advertisement costs. Instead of wasting one lump sum advertising in the newspapers or magazines, such websites make a better alternative form of advertisement. Hotels reviews and rating are also available for customers as references. They may decide to book with a certain hotel after reading the positive reviews and high rating given by previous occupants. Reviews and rating are important as it is an accurate indication of how good or bad that hotel has been. 
Frequently asked questions (FAQ) and answers are posted on the web to help visitor clear their doubts. This way, companies can reduce headcount in customer service to answer phone calls. This in return helps the company to save money as they can cut down on the number of employees, or the company may choose to place the extra employee in other departments to enhance the hotel stay for the residents there. Such actions are examples of increasing efficiency. When certain doubts are not covered in the FAQ section, customers can then clarify with the person-in-charge by calling, instant messaging, email or video call. With the help of technology, customers may choose not to contact the hotel by making overseas calls, but using instant messaging or video call (Skype). This reduces the cost because instant messaging and video calling are free of charge online. Moreover, video call is a better way of communication as it allows both parties to see each other as if they are talking up front. Miscommunication is further reduced.
Through these websites, maps of the hotels are provided for the customers if they would like to know the exact locations of the hotels. Directions are given to help customers find their way to the hotels, especially if they are travelling to a foreign country without a tour guide. Some website uses Google street view map to facilitate it. Google street view is a technology that gives an extended pictorial representation of the surrounding and the hotel itself.
Online booking is also another feature designed from the hotel management. It enables customers to know the availability of rooms immediately for that particular check in date. Waiting time is reduced and occupancy rate of the hotel will be increased. There would be no booking and cancellation error due to miscommunication and customers can do it at anywhere and anytime. Once reserved rooms are cancelled, the website is able to track it immediately and allow other customers to book it. However, every hotel has its own term and conditions. For example, cancellation has to reach Ferrary Hotel in Taiwan four working days in advance, whereas cancellation has to reach Empress Hotel in same country three working days before the check in day. If not, cancellation fees will be charge. This is to ensure that customers do not take advantage of the advanced technology.
And lastly, e-payment is provided to enhance the online booking system. With e-payment, travellers do not need to bring cash with them to pay up front. Instead, they can make payments using credit cards after finalizing the reservation of rooms.
From all these positive impacts brought about by ICT, we as consumers do hope to benefit. Nevertheless, we should not let down our guards as not all websites are trustable. In order not to end up being victims of computers crimes and online frauds, we do need to keep our eyes open when using such online services.

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