Contents
First, we should question ourselves. What is ICT?
What are Transaction broker websites?
Research Focus
- Information Gathering
Conclusion
We are asked to do a report on how information communication technology (ICT) has changed the operations of hotel operations.
First, we should question ourselves. What is ICT?
ICT is referred to as 'technology' which includes both the information systems and the technology supporting them. Technology to networked computers took place, which leads to office automation, workflow, groupware, process redesign, knowledge management and information systems.
Today, work can take place anywhere and anytime. Workers may even work from home. Today, the new enterprise is loosely connected, distributed and mobile organization.
ICT revolution is responsible for the new society where society activities moved from 'spaces of places' to 'spaces of flows'.
Before ICT was introduced, hotel operations such as room reservations, check-ins, cancellations, room service and such are all communicated by 'spaces of places', which means that information have to be passed physically. For example, by mail, by calling or even personally go down to make a reservation.
Now, information is passed through 'spaces of flows'; information can be exchanged through the air. Here, we research on how ICT changed the operations of hotel operations. There are many types of internet business models to choose from. To name a few, there are Virtual Storefronts, where physical products are sold to consumers or to individual businesses, Online Marketplace where buyers and sellers meet digitally. The one most closely related to hotel reservations are Transaction Broker Websites. We observe the change by how hotels approached new technologies like transaction broker websites to get reservations, or even the advertising of their hotels.
What are Transaction broker websites?
Transaction broker websites are mainly organizations that represent the principal (in this case, the hotels) to sell their products (hotel rooms).
Transaction broker websites also help saves user money and time by processing online sales transactions and generating a fee each time a transaction occurs. Transaction broker websites also provides information on rates and terms.
I decided to focus on 2 transaction broker websites:
First, we should question ourselves. What is ICT?
ICT is referred to as 'technology' which includes both the information systems and the technology supporting them. Technology to networked computers took place, which leads to office automation, workflow, groupware, process redesign, knowledge management and information systems.
Today, work can take place anywhere and anytime. Workers may even work from home. Today, the new enterprise is loosely connected, distributed and mobile organization.
ICT revolution is responsible for the new society where society activities moved from 'spaces of places' to 'spaces of flows'.
Before ICT was introduced, hotel operations such as room reservations, check-ins, cancellations, room service and such are all communicated by 'spaces of places', which means that information have to be passed physically. For example, by mail, by calling or even personally go down to make a reservation.
Now, information is passed through 'spaces of flows'; information can be exchanged through the air. Here, we research on how ICT changed the operations of hotel operations. There are many types of internet business models to choose from. To name a few, there are Virtual Storefronts, where physical products are sold to consumers or to individual businesses, Online Marketplace where buyers and sellers meet digitally. The one most closely related to hotel reservations are Transaction Broker Websites. We observe the change by how hotels approached new technologies like transaction broker websites to get reservations, or even the advertising of their hotels.
What are Transaction broker websites?
Transaction broker websites are mainly organizations that represent the principal (in this case, the hotels) to sell their products (hotel rooms).
Transaction broker websites also help saves user money and time by processing online sales transactions and generating a fee each time a transaction occurs. Transaction broker websites also provides information on rates and terms.
I decided to focus on 2 transaction broker websites:
Both websites features numerous hotel rooms across the world. The websites are hotel search engines where hotels and guest houses pay to advertise their accommodation on the sites.
Booking.com offers low rates, many choices in over 15000 destinations and 100000 hotels worldwide. It also satisfied guests as more than 150000 rooms nights are booked everyday. Booking.com also offers unbiased hotel reviews from real guest. There are as many as 6.8 million hotel reviews on the website. Also, Booking.com is versatile as it is a website which can be translated to as many as 36 languages. In addition, There are weekly promotions which can be sent to your e-mail addresses as well. Recently, they have incorporated an application so that you could browse Booking.com through the iPhone. (Click here for example)
Hotels.com is similar to Booking.com. It offers choices of over 110000 hotels in more than 60 countries. They also have hotel reviews to help users find the best deal in the right location. They have a 24 hour phone line too. In addition, they have a Price Match Guarantee, where if you find a cheaper rate, Hotels.com will match it. They too, like Booking.com have promotions which can be sent to your e-mail addresses. (Click here for example)
I focus my research mainly on the reservation of rooms. The use of ICT vastly improves the way hotel rooms are being reserved. When a customer would like to reserve a room, they would usually gather information first. Thereafter, the user may make the reservation. After making the reservation, the user may proceed to check out or confirm reservation. Other advantages of the transaction broker websites is that customers can easily get the contacts of the hotel they are interested in. This way, customers can easily make a customer service enquiry, cancel or modify a reservation.
Information gathering
Information gathered by the customers may be in form of reviews by other fellow customers who stayed at the hotel before, or professional reviewers who reviews the hotel and give them ratings. Customers also look for information such as hotel amenities provided, rates, room availability in order to eventually make a reservation. However, there are other users than travelers that may be interested in the hotels. For example, a travel agency staff. They may visit this transaction broker website to gather hotel information prior to making reservation through an existing travel agency channel. In a way, these ICT technologies improve the way information are gathered. It also minimizes communication errors.
A transaction broker website can help users to do these at the information gathering stage:
• Input stay requirements – including location and proposed dates of stay
• Compare and evaluate results – user may view multiple hotel, room, rate combinations
• Decide – user decides which hotel, room, rate combination meets their requirements
Both Booking.com and Hotels.com have hotel reviews. Fellow users which stayed at the hotels previously may leave a review on the hotel they stayed and these can be used by the others users to compare the hotels. Both websites also list the amenities provided of a room. This helps users to reach a decision regarding reservations faster. They do not have to call the particular hotel and enquire what is provided in the room. ICT narrows the times a user have to physically contact the hotel to get a query answered as everything is listed digitally(on the website).
(Examples of hotel reviews click here)
When making a reservation, the user will first select the hotel, room and rate they wish to book, and then proceed to select additional services such as additional amenities or rooms as required. In the past, if users were to book without the use of ICT, they have to call, or use mail. It can be tedious and time consuming and at times, there may be miscommunications which will lead to wrong rooms being booked. With the use of ICT, or the transaction broker websites, users can select the type of hotel, room and rates they desire by themselves. This is much faster as there is no middle man involved so the risk of miscommunication is lesser.
Lastly, to confirm reservations, a transaction broker website requires users to:
• Input user details – such as name, address, email address etc.
• Input payment details – such as credit card details or other payment method
• Confirm reservation
As much as ICT has helped enhance hotel operations, there are some disadvantages too. As the user’s credit card number is required to confirm reservation, the user may be subjected to identity theft. Identity theft is a crime in which an imposter obtains key pieces of personal information such as credit card numbers to impersonate someone else. The information is then used to obtain credit, or merchandise in the name of the victim. Some other disadvantages is there may be unauthorized billing when the credit card number is given online.
Also, even though the terms of conditions of the hotels are stated on the transaction broker websites, the hotels may practice differently from what they preach. For example, some hotels claim that they do not charge the credit card number given as it is only for reservation purposes. However, when the user gave the credit card number, the hotels charge the credit card, even if they state that they would not, sometimes a cancellation fee is charged even though it was state on the website as otherwise. The transaction broker websites may not be able to help as they are only the middle man to pass the information to the hotel the user requested.
In the past, cost of gathering information is extremely high for users. ICT greatly reduce the cost of obtaining and distributing information and create a digital marketplace where millions of people are able to exchange massive amounts of information directly, instantly and for free. As a result, internet has changed the way hotels conduct business.
In the past, hotel reservations are something like this:
The customer have to communicate with each hotel by calling each hotel individually before a decision can be reached. this slows down hotel operations because the hotel staff is needed to assist the customer and it consumes time.
Now, hotel reservations through the use of ICT looks something like this:
With the use of ICT like the Transaction Broker Websites, the customer do not need to contact the hotels by themselves. The information is readily available on the website. Once the customer is done deciding, he/she can make a reservation via the transaction broker website.
Internet shrinks information asymmetry. Information asymmetry exists when one party in a transaction has more information that is important for the transaction than the other party. The information helps determine their relative bargaining power. In digital markets, consumers and suppliers can ‘see’ the prices being charged for goods and in that sense digital markets are said to be more ‘transparent’ than traditional markets.
For hotels, reservations are easier now as the introduction of ICT makes it much easier for them to aggregate, repackage, and distribute information. Also, there is a reduction in need for human customer support experts because hotels may use their websites and e-mail to answer customer questions or provide customers with the information they need. This frees up manpower for the customer service aspect of hotel operations.
ICT help change hotel operations by enabling hotels to reach across national boundaries, all around the Earth. It enables customers to participate in the process of delivering goods to the market (Interactivity). ICT also reduces information costs and raises quality and timeliness improve greatly. Information becomes plentiful, cheap and more accurate. hotels reviews on those transaction broker websites will help hotels to save be more efficient in other areas than customer service(lesser need for staff to attend to customer queries because most information is available on the internet) as well as cost(time).
ICT help change hotel operations by enabling hotels to reach across national boundaries, all around the Earth. It enables customers to participate in the process of delivering goods to the market (Interactivity). ICT also reduces information costs and raises quality and timeliness improve greatly. Information becomes plentiful, cheap and more accurate. hotels reviews on those transaction broker websites will help hotels to save be more efficient in other areas than customer service(lesser need for staff to attend to customer queries because most information is available on the internet) as well as cost(time).
However, one should exercise extra precaution when using ICT for transactions involving credit cards or important information. Online crime is becoming more sophisticated. As we are not communicating with the hotel directly most of the time (through the intervention of ICT), the integrity and honesty of the hotel is questionable. It will be beneficial to do some background check on the hotel by yourself before reserving a room with that particular hotel.
