Introduction
Information Communication Technology (ICT) is defined as any technology that facilitate in communication, assist in capturing, storing, manipulating and distributing of information. There are some commonly used technologies that can be seen within an organisation setting and throughout the world. For example, the internet, email, mobile phones, databases, biometrics and other applications such as VOIP (transmitting telephone calls over the internet).
While ICT play a role in the organisation's operation and processes, there are several limitations that organisation must be aware. The aim of this research was to identify and analyse how info-communication technologies affect and change hotel reservation services.
Room reservation system in the past
In the early days, hotel reservation was made directly through the travel agency or over the hotel counter. Great effort was needed to ensure the preferred hotel room is reserved. For example, an individual who is interested in making any the price comparison will have to read the travel section in classified, engage the services of travel agents or make uneconomical overseas calls to the hotels. Such amount of involvement is time-consuming and costly.
Moreover, any transaction between transacting parties are complex in the past. The traditional mode of payment is made by depositing cash to the hotel or agent. Though cash payment is the convenience, it is subjected to small purchases or payment. The traditional mode of payment can create a feeling of uneasiness especially when one is holding a large sum of money.
In this fast developing world, the whole society is in pursuit of convenience and efficiency. Society activities have moved from the “spaces of place” to “spaces of flows”. Info-communication technology is transforming how businesses operate. Hotel room reservation can take place anywhere, anytime with technologies such as the internet or wireless broadband. Another impact of using IT is to make use of the web services to extract information in addition text and graphics, video, images and sound files and with this, the demands of customers are easily met. Interestingly, websites have become an important marketing and promotional tool for business as a selling aid of reservation of hotel accommodation. Many hotels now have their own websites which serves as an electronic brochure that usually offers opportunity to reserve accommodation. This is already having an impact on global distribution company and traveling agent and the way they do business.
Hotels can choose to have a virtual storefront and sell its room directly through its own website or through an agent –“Transaction broker”.
With its own reservation system online, hotels are able to save time and cost. Any enquires can be emailed to the customer service, payment can be done electronically online which facilitate fast transaction. Cost is reduced as middleman is removed. When an individual make a room reservation online, personal information is needed upon payment. This database application allows hotels to operate more efficiently as customer information can be easily archived.
For example, Rendezvous hotel Singapore will be able to retrieve customer details such as their floor preference, address, arrival time and etc. This information is valuable to hotels for any follow-up purposes.
Although the emergence of ICT may bring many opportunities to the hotel business, there are a few limitations to be aware. Hotels that are highly dependence on the deployment of technologies have to be careful. Technologies are vulnerable to problems such as hacking, viruses which may lead to system failure.
Transaction broker
Hotel can engage B2B services with transaction broker where they selling rooms to customer directly on behalf of the hotel. This system also offers the opportunity to make direct reservation of hotel accommodation. The benefit of this approach is that is available to any one having access to the internet every thing about reservation is being simplified.
An example: hotels.com, agonda.com, hotelclub.com
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