Mini-Research Group Project

Project title: How have ICT changed the hotel reservation service

Introduction

In the past 50 years, we have witnessed and experienced tremendous improvement to our everyday lives; we have changed the way we communicated with each other. Among other valuable inventions that we have had, Information and Communication Technologies (ICT) have even been touted by sociologist such as Manuel Castells as the key drivers of globalization. We benefited through means of ease of communication, unbounded flows of information and many others. Without ICT, communicating with your loved ones or friends or business partners whom are a few thousand miles away will be relatively difficult and slow. The only source then was by letters/postcards or telephone.

How have ICT changed hotel reservation service

On a macro view, ICT have practically changed how things are done globally, from how businesses were once limited by physical boundaries to the present day where even a teenager could have made a fortune via internet.  Businesses no longer exists solely to serve only local customers, they have ventured out and seek foreign customer. Ironically, many businesses have to venture out to survive in the ultra competitive globalised world.

That will explain why in the hotel industry, hotels have been embracing ICT and adapting their business model and business processes. Hotels are taking this opportunity and benefits of ICT to reach out to global customers (Business to Consumer B2C) and to global business partners (Business to Business B2B). Hotel managers have detected the change in their micro environment, the changing expectations of its customers. Customers expect to have access to the internet, able to do things or make decisions fast and ease of information gathering.

In the past, in order to make a reservation of a room, customer usually has to do it via telephone or be physically there to book a room. This was the norm in that period of time where flow of people, money and information was slow. Its time consuming and take quite a lot of effort. The business model of hotels back then was probably to cater to basic needs of a traveler and providing basic amenities. The business process was probably very rigid and predictable. Daily activities or tasks required in the hotel are limited and basic.

In the present world, customers want to have information at their finger tips to make decisions. They want to be able to view the hotel’s facilities, how the room looks like and what is the price in the comfort of their computer, notebook or even on their smartphone’s screen. Thus many hotels have now jumped on the IT bandwagon and provide websites with information, picture and videos. Customers can even take a virtual tour of the hotel, absolutely free and easy.

Our group have chosen Raffles hotel as our example.

Reservation of hotel room, information of their service offerings and even the hotel’s history.

Virtual tour of the hotel

Another opportunity that ICT have created is businesses which act as intermediaries. Though the idea of a middlemen and earning commission for the transaction has been around for quite awhile, it really took off in recent years. We can call them e-transaction brokers. These businesses have bridged the information asymmetry between on the go tourists and local hotel. These middlemen help the tourists by being an information portal and being the executor. 

For example, it displays information of the hotels such as reviews by previous hotel guest, map of vicinity, photos and customer can book the room as well.

Our group have chosen hotels.com as our example.

One stop solution for tourist.

Information of hotel, maps, photos and booking of ticket function.

These businesses have linked up with participating hotels and definitely changed hotel’s businesses processes. This collaboration have allowed individual parties to focus on their core competencies instead of trying to do everything themselves. For example, Raffles hotel can focus on improving its customer service by sending their staff for upgrading or upgrade the hotel facilities while not have to place a huge emphasis on attracting customers. Not only hotel industry practice outsourcing, in fact most of other industries are practicing it.

Conclusion

ICT have enabled all the above mentioned, arguably the key driver of globalization, shrinking the world and intensifying the experiences that we had before. Individuals and businesses have benefitted from ICT. Even government bodies have hopped on to the ICT bandwagon, citizen can submit their tax forms online saving precious time. People are able to communicate and obtain information with ease, new e business models have been possible and many other industries have embraced ICT and made changes to their business processes.