Introduction
Information and communication technology (ICT) is an umbrella term that covers all technology and technical ways for storing, processing and communicating information. ICT is inevitably vital especially to organization. It is so essential that the survival of the organisation depends largely on the application of it. It ranges from traditionally used ICT like telephone, fax machines, television, and pagers to commonly used devices like computer, email, mobile phone, internet etc.
As we all know, technologies has evolved dramatically over the years. The role of technologies plays a significant part and brings in benefit to our environment. One of examples of technologies is information system. Information system is defined as a combination set of hardware, software and people working together to collect, retrieve, process, store and distribute information to support decision making, coordinate, control, support the organisational strategic, and achieve the organisational goals. The hotel, same as other organisation, uses information system for one of their key business process, in our case, the hotel reservation management system to run their business more efficiently and effectively too with the support and facilitation of ICT.
A hotel reservation service by definition is an arrangement to secure accommodation at a hotel. In the past, customer would need to physically make the effort to the hotel or by snail mail just to make enquiry and finally, book the facilities and services that a hotel provided. Slowly, the development of telecommunication device that transmit and receive sound, telephone was invented, it speeds up the process but there are still some pitfalls for example, ill-timely information. In 1990, as international network use had been introduced, hotels come up with an idea of booking room online. Now, people would prefer making room reservation online as it has brought about a number of benefits such as it is time-saving, easier to obtain information etc.
Initially, the use of information system is to store and generate information with regards to the hotel reservation system, such as to provide a simple accounting of number of rooms available, rooms sold, financial information and etc. Over time, this function has expanded in complexity and strategic importance as it emphasises has been placed on yield management to maximize a hotel’s total revenue.
Internally, the ICT has changed the way the hotel conducts its business. Hotel can differentiate from their competitor depending on their efficiency in the implemeting of ICT. More, it enables the processing and flow of information within organisations. By using hotel reservation management system, it will help capture the customers’ reservation details such as arrival date, number of person arriving, type of room booked etc. This will help staff to have clearer view of work scope and smooth the progress of communication between staffs and customers.
However, information system is vulnerable to system break down if the upgrading and checking of these technologies is not properly maintained. If there is any breakdown of ICT, this might cause the hotel system paralyse and lead to loss of information. Recently, DBS online and branch-banking services have broken down and the central bank have required the bank to set aside an additional $230 million of regulatory capital for operational risks. There is also another case happened in Copley Square Hotel in Boston, whereby its online reservation system crashed and frustrated its customer. Therefore, hotel should have a good server to back up all the information, an alternative system, proper maintenance and checking of the ICT.
On the other hands, ICT has also transformed the payment method to cashless, by means of debit card, credit card mode which ease the payment cycle while booking online.
In addition, by paying upfront through internet, the hotel will be able to secure the deal as for some hotel applying non-refundable rule.
Making hotel reservation through internet also acts a data repository and a learning system for guest history, preference, profiles, and buying patterns. By doing so, hotel can accommodate the customers’ needs immediately like the room temperature, the optional room services needed, the music played on the background as to achieve great customer accommodation experience.
It will also help to stay connected with customer by sending out digital hotel latest newsletter promotion, new services available etc and maintain a good customer relationship.
Besides changing the way it conduct business internally, the information system enables hotel to communicate externally as well.
Externally, with ICT, customers are able to obtain information for example room available, easily online.
With ICT, customers are able to obtain information easily online that they are able to access to check on the room availability, rates, promotion, service provided etc. This clearly shows that ICT, particularly internet has helped to reduce information asymmetry between transacting parties. It provides all users with the relevant information that depths and details of information that hotel can supply.
But customers have to conduct due-diligence on hotels as some of the information given online might be out-of-date or even false.
In addition, there is limitation that set in for internet security issues too. Some of the internet service provider requested personal information such as customer’s name, NRIC No, address, credit card information etc and requesting payment upfront might ended up being a credit card fraud or loophole for hacker to act on if hotel does not implement tight security system.
It eventually will turn hotel’s system into a mess, create great inconvenient, panic to the consumers and bring down the reputation of online hotel reservations.
With the existence of technology, there are a rising number of hotel reservation agents to grab a pie of profit by making use of ICTs. It will indirectly boost up the revenue of hotel as agent acts as a middleman to facilitate the transaction cycle. Example of online reservation system provider would be pelicansystem.com, hotels.com, ctrip.com, zuji.com.
Now, there are more agencies/hotels setting up online hotel reservation "delusion" about internet offers cheapest price has caused put up of "price war". This will cause most websites put on exaggerate advertisements which might not be true package when customer purchase it.
In the future, hotel’s information system might collaborate with tourism industry partners such as hotel agency, tour operator, tourism attraction, and airline service provider etc to give better one-stop services to the enquiring customer. This IS enables these partners to communicate effectively as they are direct connected which provide a private network for collaborating parties to access the information, known as extranet, and thus bringing the benefit for all parties in the tourism industry.
Conclusion
We can clearly see that we have progress from "space of places" to "space of flows". The development of Information and Communication Technologies (ICTs) had effectively marked positive effects (good “helper”) in the hotel room reservation services, as well for the whole industry conducts its business.
References
http://www.flickr.com/photos/throttleuk/4484487401/
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www.pelicansystem.com
http://www.hospitalitynet.org/news/4001638.search?query=implication+of+information+technology+on+hotel+reservation
http://scholar.lib.vt.edu/theses/available/etd-113099-200845/unrestricted/connolly1999.pdf
http://business.asiaone.com/Business/News/Story/A1Story20100805-230569.html
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http://www.bostonherald.com/news/regional/view/20090714copley_square_hotel_hit_by_booking_breakdown/srvc=home&position=recent
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