How has info-communication technologies change hotel room reservation services?

Project Title: “How has info-communication technologies change hotel room reservation services?”

Class: F3

Group Name: isorg-joegeo

Group Leader: Joel Lee De’en, s8617772b

Asst. Group Leader: Geok Ting Neo, s8937264z

Before we delve into the process of how the hotel industry has improved in terms of its information technological aspects from yester-years to what it is today, and how it can be further improved, we must first understand what exactly ‘information communication technology’ is and how it can and has affected the services provided by this particular industry.

Information communication technology, in short, describes digital technologies including methods for communication as well as techniques for storing and processing information, more effectively and efficiently.

Back in the 70’s up to the 80’s, when the personal computer was still new to the market let alone the World Wide Web (internet), which was still unheard of at that time, hotels in Singapore, had to rely on manual, laborious forms of data collection and storage. At very best, the more wealthy hotels had simplistic computers that were big and bulky to handle some simple data storage processes. Until vast improvements to the personal computer systems’, including hardware and software capabilities, in the early 90’s to present, hotels mostly relied on the plain old telephone system (POTS), fax and ‘snail-mail’ letters to handle their hotel room reservations. This meant that customers had to send out their faxes or letters way in advance and be very concise of their booking dates as any cancellations or errors would prove to be a hassle. Guests who wanted to book a hotel for their overseas travels had to rely on past experiences or word of mouth from other travellers or agencies as they did not have the luxury of the internet search function which we have today.

Today, at a simple click of a mouse button, we are able to book a hotel room anywhere in the world for whatever duration we wish and at any time of the day! Guests are now able to select from a list, compare various hotel ratings, prices, locations to suit their preferences, lifestyles and all this can be done even before they make the final decision. Guests can do this with the “unlimited” information that can be retrieved from the internet (wide area network) or other sources that can be easily obtained with the advanced communication systems and IT systems.

Guests may also choose to go through a travel agency such as ‘STA travels’ to further reduce the workload when booking a vacation or hotel room overseas. These travel agencies have online information systems which are able access the hotel’s system to check for room availability for the date and duration of your stay and can immediately make a hotel reservation on request. The reservation is transmitted and reflected in both the hotel’s system and the agency can process a room reservation form. The process now is quick, user friendly and there is less handling of paper work required as everything now is done on information systems, software systems and the World Wide Web applications. Communication with various parties is also “instant” or immediate with the availability of e-mail and other online communication devices.

Hotels provide a good description and information about their hotel on their online websites today. One can read up on the hotel’s history, location, facilities, and local attractions surrounding the hotel, to events held at the hotel and eateries located in the hotel. All these information is crucial for a guest when deciding on a hotel for a vacation. Moreover, most hotels now provide detailed maps (google services) and even online 3D room tours, panoramic views, to even short video clips for viewers. Another good feature is the ability to translate the website into other languages which helps guests who are not proficient in the English language to understand the hotel better and to help in selecting the appropriate room. One such hotel that provides such services on their online hotel website is the Raffles Hotel Singapore.

Apart from selecting a hotel room, the mode of payment using online banking transactions, is also advancement in the field of information communication technologies. Guests are confident and assured that hotel and travel agencies are secured sites which provide users with the appropriate levels of online security where credit card payments are concerned. Guests are able to make online transactions within the hotel websites and payments will be routed via online banking systems from our personal bank accounts to the hotel without physically leaving the comfort of your home.

Now that a rough idea is drawn to show how information communication technology affects the hotel room reservation services in particular, we now talk about some of the advantages and disadvantages that the hotel industry as well as the surrounding network of other industries is faced with. As mentioned before, travel agencies, as middle man, are able to provide customers with a good varied selection of holiday destinations, hotel locations, hotel ratings and prices. Agencies have a database of existing hotels that they represent and hence can provide the customers with the “cheapest” option available. But are they really the cheapest rates available? Now, with the advent of the internet, customers can equip themselves with more information that are provided by the hotels and can then make an informed decision, rather than settle for the rates provided from agencies alone. This eliminates information asymmetry which was faced before, when people had to believe the agencies and their rates.

Another disadvantage that travel agencies may face with improved information communication technology adopted by the hotel industry, is that they may lose existing customers or face extinction altogether. As the hotels are constantly upgrading their services such as a user friendly website, ease of online room reservations and complete information, people can now communicate directly with the hotel and not go through a middle man. So, although guests can save time and on miscellaneous costs, some jobs may be affected.

Advantages that the hotel may gather are improved relations and rapport with guests. Serving guests directly also means that the quality of services is maintained.

Moreover, hotels that implement information communication technology will be able to develop strategic advantages over their competitors as well as to better organise and control tasks.

In conclusion, there are many modes and ways in which we can take to make a hotel room reservation but information communication technology has helped to transform our society and processes from “space of places to space of flows” , meaning to say that our business processes can now be done in a more proficient, efficient and cost effective manner.