How Information Technology changed hotel room reservation service?

Information and communications technology or information and communication technology, usually called ICT, is often used as a synonym for information technology (IT) but is usually a more general term that stresses the role of communications (telephone lines and wireless signals) in modern information technology. ICT consists of all technical means used to handle information and aid communication, including both computer and network hardware as well as necessary software. - quoted from Wikipedia, the free encyclopedia

Introduction:

Today ICT interlocks the business environment, it supports the sucess of corporations as well as increasing efficiency in the goverment body. It plays a crucial role in the modern world, examples of such are the internet, wireless communication and personal computers. The internet is a driving force for the development and innovation of many sectors in the economy and the tourism industry is no exception.

It is undeniable how ICT has changed or even shaped the way people go about making a reservation for their hotel. Aside from the basic fact that one no longer needs to be physically at a shopfront to make a reservation, the current web environment has evolved quick enough to counter some problems that grew along with ICT development.

Reservation of hotel rooms before the use of ICT:

In the past before online booking was made available. Hotel booking was more cumbersome. Travellers were basically presented with a few options to make hotel reservations, the two most common ones are booking through agencies and calling the hotels personally. It would involved individuals to go through tour agencies which is a customers to business transaction and for the tour agents (business transaction broker) to then go approach the hotels to make the booking which again is a business to business transaction. As we can see that process involves 2 steps (C2B and B2B). With the use of ICT we can now cut down the 2 transactions into one, online booking sites would now help to link the consumers directly to the hotel which would only require a customer to business transaction.  Below we would analyse the disadvantages in the process of booking it through tour agencies.

• requires a trip personally and physically- cost incurred in transport and time wasted
• have to go through a 'middleman'- (Transaction broker, eg. travel agent) who would draw commissions based on every transaction made which implies that there would be extra cost incurred for comsumers
• agents would only disclose informations which are beneficial to them - consumers would risk getting disappointed with the outcome of the trip 
• upon the cancellation of a trip due to any unforeseen circumstances- payment could be partially or sometime fully forfeited

• have to make several phone calls to hotels in order to check room rates and the availability- waste of time 
• hotel staffs have to answer phone calls manually and help make booking accordingly- there is a danger of human error during that process and it is unclear who would be liable in the event of any miscommunication. 

Hotel reservation with the use of ICT:

Procedure of online booking

Step 1:Select destination, duration of stay, size of group and date of departure. 

Step 2: Select hotel

Step 3: Select prefered type of room and packages.

Step 4: Comfirm order, acknowledge terms and conditions.

Step 5: Enter particulars

Step 6: Payment

As you can see from above, today with the help of ICT, the hassle of making trips down to agencies can now be saved with just the 6 simple steps above. Now we can book a room without having the necessity to stand up from our computer. Hotel reservations have been made easier as travellers can now carry out the transaction at a lower cost, great certainty, shorter time as well as greater ease. From that we can see that ICT has brought hotel booking to our doorstep, providing us with comfort and convenience. However ICT is like a double edge sword, it has its dangers and disadvantages as well. 

Advantages:

1. Discounted Rates 

Hotels that are listed in websites are usually partners which means that their products and services, will be typically presented at its lowest and best prices there would also be other special offers for the customers to take advantage of. They are the lowest or the best but if travellers do find a better price than claimed, the concerned hotel will normally try to match the price. Hence, through online booking consumers are guaranteed a good deal.

2. Choices

A major advantage of using the internet to book a hotel is the accessibility of information.  Details of the hotel, its prices and its surrounding places of interest can be readily available upon the click of a mouse. You can easily find pictures and reviews of hotels. This is especially important in urban centers where the choices are seemingly endless. You can be sure that the hotel you book is suitable  and is located in a safe location, as safety is usually the top most priority of most travelers. You are also able to check out area traffic cameras, a feature now offered on many local government Web sites. Lastly, forums allows a two way communication where people can share their experiences and obtain feedbacks on the hotels. All this allows the consumer to make an informed choice and find a hotel that matches their expectations

3. Availability 

Online booking websites are able to reach out to consumers globally at any point in time (24hours a day, 7 days a week). Today it is quick and convenient to book your trips through the internet, which can be done anywhere and anytime. This has helped moved the hotel booking system from "spaces of place" to "spaces of flows", providing consumers with greater convenience. Different time zones would not be an issue and this would appeal to a larger group of audiences on a global scale. Helping the boost of sales for hotels. Online booking websites have made transactions faster, today consumers would no longer need to wait in a queue at travel agencies to make the transactions. 

4. Flexibility

ICT brings about much more flexibility in hotel reservation than before. People may change their reservation as and when they feel like it and on their own, as compared to calling the hotel staff personally in the past or with hotel businesses that did not go online. The degree of flexibility offered by hotel booking websites differs. Some allows you to cancel the booking just hours before check-in. Some do not require you to pay in full or even a deposit amount. Certain websites may even have the whole schedule of available rooms for the year to choose from.

 

Disadvantages:

1. Hidden Fees

Many online travel sites advertise low rates to attract your attention and then add fees and surcharges for a much less competitive deal.

2. Limited Validity

The bargain rates that make booking online appear so attractive often mean giving up flexibility in your dates of travel or other such constraints. Most often, the attractive hotel packages only apply to off peak season. Consumers would not face that much freedom in choosing the dates of their vaction.

3. Unemployment

With the use of ICT the hotel industry today depends heavily on information systems, technology and networks. This has reduced the need for human labour, creating job redundancy. This implies that lower level jobs such as agents and counter staffs are becoming replaced by technology. Hence leaving many out of job which may indirectly affect the economy. 

4. Online payment risk

Payment is probably the most important part about online hotel reservation services. The customer needs to be able to make payment with ease and safety of payment information, but perhaps some may not know about the consequences of revealing personal credit card details on "unsafe" merchant sites. While ICT brings about convenience of hotel booking with afew clicks, it might also put users at risk of having their credit card numbers stolen. It is difficult to determine if the website you are transacting with, is reliable or not without researching alittle about its reputation.

Solutions:

On the side of the banking system, credit card issuing banks have evolved promptly enough to counter the problems that grew with online payment, eg fraud, pin phising. any banks have come up a device linked to a customer's bank account, to generate random numbers unique to the device and account.

Conclusion:

Information Technology has no doubt changed the way people go about booking hotels. It has brought about tremendous benefits but it not without any risk and/or problems. Depending on what one is looking for, ICT  may or may not have the best to offer.