New technology are providing different stations for marketing and management that enhance the capabilities of society. And computer systems are providing faster and much more reliable control with less expensive continually.
In Hospitality and Travel and leisure industry however, not only, hardware, software, information management, and telecommunications systems have allowed for the processing and circulation of information among organizations. Plus some sources declare that how tourism organizations take advantage of IT tools will determine their future success available on the market [4]. We consider the value of the trend of IT by implementing a highly effective IT system for advertising, circulation, encouragement and co-ordination of the industry. It is important that Hotel Industry take the lead of the appearing technologies to boost management capabilities and develop business programs focusing on the most effective income of providing value added products to clients. In this value, tourism associations will be able to keep an competitive advantage over those who find themselves not applying this yet.
Electronic commerce (known as e-commerce) is a broad expression that is used to spell it out the activities of businesses or commercial organizations. It included connections and exchange that happen via telecommunications multimedia to provide function, creation or service to others. It permits information to be streamed via network such as Internet on a worldwide basis almost. The e-commerce direction is an advantage to all gatherings about the world in most industries since it is cost benefits once everything is equipped.
E-commerce includes all business functions which may be refined over Internet, Intranet or Extranet in virtually any industry. In General, there are four types of connections on e-commerce deals might occur.
B2C transactions entail business-to-customer interactions. For instance, airline booking system (Busiess) allow people (Customer) do online reservation of air solution.
B2B transactions entail business-to-business. For instance, a booking of any accommodation via Travel Firm system, where in fact the Travel Organization is a company that pre-purchases blocks of rooms from a given hotel (another business) for sale to others at lower prices. The arrangement between Travel Agency and the hotel is a B2B purchase, whereas if someone interact as an internet customer of TA system, which is a B2B2C transaction.
B2E transactions entail a business and its employees. For instance, provides an electric system for air travel technicians to order replacement parts for aircraft called INIRN, which means "I Need It AT THIS TIME. " In cases like this the business offers an electronic service because of its employees.
C2C transactions entail two or more consumers (customer-to-customer). eBay or TaoBao are some examples of any business that provide a network program for customer to work with another customers.
Technical the different parts of e-Commerce
Most of computer sites contain 3 major areas: leading end and the back end and Firewall.
Front end - User interface for e-commerce customers, including employees, customers, and business affiliate marketers.
Back end - Contains interfaced components developed to provide e-commerce services or products to get rid of users.
Firewall - Filters all network traffic to provide a secure data transfer over a network and transmission to other sites.
To be competitive in hospitality and tourism industry, they need to follow the web pattern for future long-term progress and competitive benefits. However, before put into action e-Commerce, one most significant thing to be considered on hospitality and travel and leisure organizations is the central business in this industry involves to consist mostly of interactions (guest relations) with customers and build of memorable encounters F2F (face-to-face). Therefore the ventures of online booking of Accommodation or restaurant merely satisfy basic customer expectations
Hoteliers must have visions of airlines, hotels, cruise ships, restaurants, spas, golf, concert, and so on, based on their individual encounters. Interactions include the relationships that take place during each transaction.
Content
Fact / Hotel procedure /
The industry can make income to numerous countries and pull foreign currencies in to the country. Consequently, tourism marketplace has rapidly grown. World Travel and leisure Organization (WTO) estimates that over 1. 5 billion vacationers would take international journeys in the entire year 2020. European countries would be the most popular traveler place. Second to Europe, Asia Pacific would welcome up to 397 million travellers. The growth rate is average as 6. 5% per season [1].
(Electronic Commerce Source Center (2000). "Electronic Business for Thai Tourism Industry". Bangkok. )
The Internet is not the full method for success in the hospitality industry. However, the Internet is the "overall business answer" across business. The increase in travelers over the time has also driven IT demand on offering high quality products at low costs to the clients. The success of the travel and leisure industry depends upon the abilities to identify and answer quickly to current and possible client needs. IT is playing a major role in "servicing" customers. It really is a significant challenge for travel and leisure organizations because it requires efficiency in exterior and internal interactions. The initial cost of It'll be quite saturated in a financial sense, and the tremendous cost savings in the long-term depends after the efficiency of the IT during its crucial implementation stages. In some way, Hotel could decrease the cost such as the commissions paid to visit intermediaries as suppliers will be immediately associated with customers
Starwood Hotel Group was located ahead of other Hotels to give a online "virtual trips" of its properties. This feature offers a site stop by at potential guests without having to travel to each property. And today, many well-known hotels are also providing this advertising feature for stand top of the roles to attract customers.
The developments of Hotel websites were created with many photography design that allow visitors to inspect the facility, lobby, grounds, guestrooms, and amenities visually. Many hotel websites also provide superior media presentations designed to give virtual travels of the facilities to potential guests, using streaming videos and 360-degree viewing websites of the properties.
ADVERTISMENT
Google provided the eye-sight of Online marketing is likely to develop by 2015. Some of them are well worth to be educated and aware about.
50% of advertisement campaigns will include video advertising bought over a cost-per-view basis
50% of advertisings will be bought making use of this real-time bidding technology to tailor encounters for different viewers
Smartphones / mobile is going be the number one display screen for digital brands to engage users
There will be at least five metrics that marketers will respect as more important than the "click"
75% of web advertising will be "social" in mother nature i. e. Ads will be shared, discussed, subscribed to and recommended
Rich media types enable great creative imagination and interaction - these will grow from 6% of display advertisement impressions to 50%, especially for brand building campaigns
Digital display advertising will grow to a $50 billion industry
It implies that competition to appeal to prospective customers in worldwide web will be more and more
Age of e-Commerce in Hospitality and Travel and leisure Industry
Customers feel empowered to create their own itineraries for airline, hotel and other travel amenities immediately through the Internet. It is predicted that the worldwide web will drive the majority of reservations immediately from customers and intermediaries at a fraction of the expenses associated with today's 800 amount and Global Distribution Systems (GDSs)[20].
The travel distribution system happens to be facing many changes as online agencies such as Expedia, Travelocity, Priceline, etc. have presented a way to access travel suppliers directly through the worldwide web. Generally, GDSs have not shown a lot of an effort toward concentrating on on-line customers. Instead, CRSs have remained loyal with their travel agency vendors.
Traditional Travel Circulation Channels
The traditional travel distribution channel works where in fact the customers contact the travel agent or point selling route to reserve their entire getaway or business travel offer (please refer to Appendix I). Figures indicate that travel companies deal with 80-85% of vacation presentation[22]. However, with the development of technology and the worldwide web, these figures are changing. Purchasing tickets online through airlines will continue steadily to dominate the travel market. A significant task for airlines, other suppliers and travel organizations is to encourage customers to reserve their travel packages online. They need to always keep customers satisfied by offering traditional programs, acceptance, servicing, and other rewards that keep them coming back for more. With regards to competing directly with the major online players such as Priceline, Travelocity, etc. , airlines and other suppliers have an edge because they have got all the faithful customers, brand acceptance and large call centers that online firms do not maintain. Airlines have a more robust direct connect to customers as they remain competitive straight against travel realtors[23]. Further to the, airlines have more robust control over the customers due in part to the paperless seat tickets (e-ticketing). In this respect, online technology has replaced the travel organization by adding value through fare shoppers, promotions, and personal referrals. Although travel companies have preserved market share, they must strategize to be either a niche market player or a big player in the changing business environment.
Auction style-pricing models are becoming customer preference, where in fact the customer controls the price of the merchandise and services to be used. At exactly the same time, vendors still preserve control over the ultimate conditions of the purchase and can utilize mechanisms such as Priceline to help clear the marketplace of unsold inventory. Travel auctions such as Priceline have grown to be the latest trend in offering the best price for hotel deals. Since customers are now focusing on price as a main factor in searching for travel packages, online auctions such as Priceline are a significant risk to the hotel branding system and the industry in general. The future distribution channel calls for providers, suppliers, and customers all linked together within an integrated environment
The customer is almost guaranteed that he'll have the best price by negotiating via an online broker such as Priceline. But a drawback to all of the is that the client will not realize all of the normal benefits of air tickets because they are sacrificed through online public sale purchases. For instance, in many cases the travel ticket does not allow an accrual of mls or any changes without significant charges charges.
Many customers have made Travelocity their online vacation planner. Sites such as Travelocity offer real-time, on-line reservation capabilities for unsold inventory and travel packages. By checking customers on the web, online companies can create information of prospective customers in defining their target markets
The New Distribution System
The customers then proceed to purchase a whole travel package immediately via an online broker
Expedia relationship that presents Expedia's travel arranging & packaging engine on Yahoo! sites across Europe. The combined power of the collaboration brings users both motivation of Yahoo!'s content and the capability to refine this choice relating to their tastes and publication with assurance that you are making a good choice by looking at their choice with a number of mapping options, reviews from previous Expedia customers and photos
We understand that consumers use a number of tools and sites when planning and exploring their travel online and you want to make that process as easy as possible for travellers so we imagine it is important to use sites like Yahoo!
Yahoo! and Expedia have larger strategies to leverage each other's content and ability to inspire travel.
The online travel space has seen an array of new developments over the last 10 years and these are very interesting times in the online travel world. Almost always there is been a detailed romance between travel and Search and there are a variety of opportunities which this presents for collaboration. For instance, we recently launched a fresh service www. expediahotelview. co. uk using Google's Neighborhood View technology which enables users to view the hotel outside and have a virtual walk around the area before scheduling with Expedia.
A solution to the problem for small players is to build up an innovative, catchy, attractive, and quick web-site
Threat of Online Players & THE BRAND NEW Distribution Channel
The web-based reservation system has experienced severe problems in maintaining control over room inventories
The Asian Internet Obstacle & Online Threats
Given that Internet marketing continues to be in its starting stages in the US, the development throughout the Asian region is still quite immature as well. There is not as a lot of an online hazard to travel providers and intermediaries in Asia compared to the US. Now that the hazard is noticeable, perhaps hospitality and tourism companies in Asia may take advantage of the Internet and gain an edge on challengers.
Ctrip / Thailand
In most Asian countries, credit cards aren't utilized as much as in the U. S. , which is a major drawback to Asian online companies unless they can be targeting U. S. customers. However, the hospitality and travel and leisure industry in Asia still must look at Online marketing for a long-term strategy. (NOT Upgrade) (EXPAND)
ECOMMERCE IN HONG KONG (ASIA)
In general Asia is currently experiencing many troubles in the e-commerce revolution, especially on the business enterprise to consumer area due to the fragmentation of the marketplace. A few examples of successes have been a Hong Kong company called Recreation area 'n Shop and Welcome supermarket chains which sell online groceries (WHAT ELES ???)
Online companies have significantly more of an chance at success in Hong Kong because of the dense populace, strong education systems, high charge card and cell phone consumption. This leaves room for future years development of the next Priceline or Travelocity in Asia that could pose a significant danger to hospitality & tourism organizations[29]
(MOBILE COMMERECE)
Asia Travel Mart is known as the first online travel booking Internet-based arranging system. Asia Travel Mart offers a secure booking system for worldwide hotels, trips, transfers, meals, car rentals, travel insurance through its network of suppliers
Provide service like personal savings on travel, design and destination guides, advice, reports, exchange rates, weather patterns, and airfare schedules providing a complete web experience
signal for Asian organizations, travel agents, and intermediaries to reevaluate their long-term strategies[30].
The Future Role of Travel Agents
The expansion of the web causes the question of what will eventually online travel agents and intermediaries.
negotiating prices at lower charges for customers and manage a lot of the logistics. They also recommend customers and build a continuing trusting relationship in order to keep up customers for the long-term.
As low priced desktop real-time data, words and video communications become a certainty, travel agencies may no longer be necessary. Alternatively, the Internet concern can also signify opportunity. Hotel owners and providers who understand and learn e-commerce challenges can jump ahead of online risks from large players such as Priceline. Otherwise, many will find themselves out of business.
IT tools have allowed travel intermediaries to increase their role on the market by delivering opportunities to project into other markets on a physical level.
Challenge - how they can continue steadily to add value to customers.
Creative
The Internet Focus on Market
The business tourist appears to be the number one concentrate on for hoteliers who are focusing on the Internet pattern A lot of the hotels mentioned recently are providing online services specifically to accommodate business traveler demands.
LANGHAM PLACE OFFER apple iphone 4 4 on Guest room for travel use
Langham Touch for reservation
Not only should hoteliers focus on the business traveller, but they also needs to consider whether there are other styles of potential goal customers
Both young and old generations were relaxing in the Internet retailers utilizing online services during their vacation (STATIS)
Hospitality and travel and leisure organizations should be up on all of the latest technology, to be able to understand a competitive gain in the market especially in the long-term. One major task for all those online travel companies is in assessing how their target customers are employing their personal computers.
young generation will utilize their computer in a different way from a 40 year-old or perhaps a 60 year-old traveler
identify their target prior to marketing/advertising their products/services online
Primary Constraints of the Internet
Must invest in the equipment and expertise in order to build a strong IT base
As increasingly more hospitality & tourism companies become well informed on the long-term benefits associated with IT, they'll realize the significance of it to their organizations.
involved in the booking process: room booking dept. , central booking system, banquet dept. , restaurants, spas, golfing courses
Internet security has been a major issue bordering the Internet community. There is an countless amount of information passing through on an internationally basis.
credit credit card information within the Internet
Hacker
Governments are currently addressing Online global commerce by considering rules of do, guiding principles, laws and regulations and taxation
Dot com companies have an advantage in funding, authority, low channel issue, firm and technology skills while traditional companies hold the brand and customers bottom part. Although Dot com companies seem to be to dominate in this sense, traditional hospitality & travel and leisure companies possess the capabilities of developing on top if they opt to project online[35].
Conclusion
Today, hotels are distributing their product through more and more channels. The way they keep control of supply and price, maintain a regular level of customer service, plus keep their circulation partners current at exactly the same time has becomes an elaborate and expensive process. Major companies have attended a distance to develop new approaches for competing in the web environment. These strategies vary widely from reselling rooms online, providing customers with better online customer services, keeping track of the individual customer likings to growing the best customer commitment incentive programs. For major hotel chains, E-commerce doesn't only mean marketing products from a web based portal but developing a strong relationship with the other travel lovers in order to guarantee the wider selection of facilities for the varied traveler profile. It also means offering a travel product to head to operators and the need to know which operator has the strategy and distribution power to sell their product online.
The core ventures in our business involve intimate face-to-face interactions, which have certain limitations in regard to the use of e-commerce in the hospitality industry weighed against other enterprises
Although the key telecommunications hyperlink for e-commerce is the web, private systems such as extranets and intranets are also area of the e-commerce surroundings. The major functions of B2C, B2B, and B2E e-business include management information systems and the marketing, accounting, human resources, and procedures departments
The hospitality & travel and leisure Internet future first calls for a user-friendly platform containing an array of services that fit all customer pursuits. Web customers are looking for the ultimate experience when browsing through the Internet. A specialist web graphic creator is an option for companies requiring assistance in creating an innovative attractive web-site that will lure customers into the web travel experience of an eternity. A travel site that is quick, user-friendly, and includes cutting edge graphics will show attractive for web customers[36].
Now is enough time for hospitality companies to take good thing about the opportunities available in creating a new value added custom-made online travel shopping experience for customers. The best trend calls for something comparable to the shopping-bot. For individuals who are not sure of the shop-bot theory, it is meant specifically for online clothing purchasers who prefer to truly have a personal agent. Similar to the shop-bot, the future of the web in the travel industry provides a travel bot who will play the hand-holding travel agent for the ones that require the most instruction in arranging their travel ideas. This travel bot will create a custom experience that suits this customer needs supplying a selection of services including hotel rooms, restaurant tables, airline seats, and local rental autos. The travel bot provides advice and advice as currently found on GDSs[37].
It is important to look into how Internet technology will results the future of the travel and leisure industry. Most IT tools are being used. However, there is still much room for improvement in quickness, reliability, and adaptation to new technologies. It is crucial for companies to have advantage of the world wide web before the competition. A good R&D function is one of the elements in this process. It is pertinent to study the customers and their businesses by stimulating them to complete a customers profile form on the web. As a motivation to fill out this form, an organization may consider offering to give a service or reward to the clients in return. In order to keep up on the changing solutions, maintaining or subscribing to a data or data pattern bank is an integral option for hospitality & travel and leisure organizations. The process of turning data into knowledge can be found through dealing with such companies as Horwath, Smith Travel Research, PWC and PKF consulting[38].
It is important to consider how scientific drivers will impact changes. Many traditional small and large players in the industry are having a difficult time adjusting to the changes involved in switching to a full IT centered strategy. That is mainly due to the level to which the Internet changes how hospitality services and amenities are sent. It further alters the organizational structures within hospitality companies and modifies the interaction of the client and service provider.
The hospitality & tourism internet future implies a universal system where property management systems will eliminate the dependence on expensive on-site computer hardware/software. The maintenance problems associated with breakdowns, backups, and updates will be settled in a simple efficient manner. THE WEB will control all trades involving credit-based card authorization, travel agent commissions, and point of sales transactions. This can cause fewer problems, a reduction in staff and a rise in profits. The normal hotel visitor will have the choice of selecting videos, video games, software, shopping and information through speech communication and data/video recording, all offered by a minimal cost[39].
Future success for hospitality & travel and leisure companies depends after their abilities to identify a marketplace and the proper opportunities designed for survival and growth. If data is been able properly, the technology can assist hoteliers and restaurateurs in projecting the lifetime value of guests, creating increased loyalty, resulting in a rise in market show. The procedure of mass development has never been accepted in the tourism industry, therefore custom-made services are essential for survival. Today's computer world permits mass customization in charges, location, and amenities to a far more knowledge-based format. In cases like this, marketing and IT departments must work meticulously toward a merger of central competencies. The drive toward e-commerce success includes a plan to monitor surfing and utilization habits like the purchasers, payers, and the go back visitors. Unbiased consultants are available to provide this data effectively and confidentially.
It is essential for hospitality & travel and leisure organizations to stay on top of the tasks of the major online players that are posing a serious threat to the industry such as Travelocity, Priceline, Expedia, Yahoo, etc. Their role in the future of hospitality & travel and leisure marketing is essential to the survival of Hoteliers. Hospitality & travel and leisure organizations might want to check out the potential to become one of the first movers to join the dot com craze. The already proven loyal customer foundation allows hospitality & travel and leisure organizations to have an upper-hand over general online risks.
The customized travel bot could supply the ultimate travel connection with an eternity for customers in adding the most value, thus allowing first movers in the industry to gain a standard competitive edge.
