ECommerce in Hospitality and Tourism Industry - 1 views
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New technologies are providing different channels for marketing and management that improve the capabilities of society. And computers are providing faster and more reliable processing with lower cost continually.
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In Hospitality and Tourism industry, hardware, software, information management, and telecommunications systems have allowed for the processing and information flow amongst organizations. The way in which tourism organizations take advantage of IT tools may determine their future success in the marketplace [4]. We consider the importance of the trend of Information Technology by implementing an effective IT system for advertising, distribution, encouragement and co-ordination of the industry. It is important that Hotel Industry take the lead of the emerging technologies to improve management abilities and develop business plans focusing on the most efficient income of delivering value added products to clients.
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The travel distribution system is currently facing many changes as online agencies such as Priceline, Travelocity, Expedia, etc. have introduced a way to access travel suppliers directly via the worldwide web. In general, Global Distribution Systems have not shown much of an effort toward targeting on-line customers. As an alternative, Customer Relation Systems have remained trustworthy to their travel agency distributors.
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The Internet is not the full solution to success in the Hospitality and Tourism industry. However, the Internet is the “overall business answer” across industries
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The success of the Hospitality and Tourism industry will depend upon the abilities to identify and answer quickly to current and potential customer needs
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Starwood Hotel Group was standing ahead of other Hotels to offer a online “virtual tours” of its properties. This feature provides a site visit to potential guests without having to travel to each property. And now, many well-known hotels are also providing this promotion feature for stand top of the roles to attract potential customers.
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Google presented the vision of Internet marketing is likely to grow by 2015. Some of them are worth to be informed and aware about.
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50% of ad campaigns will include video ads bought on a cost-per-view basis 50% of ads will be bought using this real-time bidding technology to tailor experiences for different viewers Smartphones / mobile phone will be the number one screen for digital brands to engage users There will be at least 5 metrics that advertisers will regard as more important than the “click” 75% of web ads will be “social” in nature such as facebook. Therefore, Ads will be shared, discussed, subscribed to and recommended Multimedia formats enable great creativity and interaction – these will grow from 6% of display ad impressions to 50%, especially for brand building campaigns Digital display advertising is going to grow to a $50 billion industry This forecast shows that competition to attract potential customers via worldwide web will be more and more drastic.
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World Tourism Organization (WTO) estimates that over 1.5 billion tourists would take international journeys in the year 2020.
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Airlines have a stronger straight link to customers as they compete directly against travel agents [23]. Furthermore, they could have stronger control over the customers due in part to the e-ticketing. In this respect, online technology has replaced the travel agency by adding value via fare shoppers, promotions, and personalized recommendations
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Another e-Commerce model such as Auction style-pricing models are becoming customer preference, where the customer are able to control the price of the products and services to be consumed.
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Customers are almost guaranteed that they will obtain the best price by negotiating via an online agent such as Priceline. But a shortcoming to all of this is that the customer will not understand all of the normal benefits of air tickets as they are sacrificed via online auction purchases. For example, in many cases the travel ticket does not permit any changes or accrual of or without significant penalty charges.
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Online companies have more of a chance at success in Hong Kong due to the dense population, strong education systems, high credit card and cell phone usage. This leaves room for the future development of the next Priceline or Travelocity in Asia which could pose a major threat to hospitality & tourism organizations. Based on the high volume cell phone usage in Hong Kong, Mobile commerce should be a new trend on next stage. [29]
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As low cost computer real-time data, fast speed internet access, voice and video communications become a reality, travel agencies may no longer be needed. On the other hand, the Internet challenge can also mean chance. Hotel owners and operators who understand and master e-commerce or m-commerce challenges will be able to jump ahead of online threats from large players such as Priceline. Otherwise, many will find themselves out of business.
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Information Technology tools have allowed travel intermediaries to expand their role in the industry by presenting opportunities to venture into other markets on a geographical level.
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Not only should hoteliers focus on the business traveler, but they should also consider whether there are other types of potential target customers as we may find that both young and older generations were sitting in the Internet shops utilizing online services during their vacation as well.
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Organizations have to invest in the expertise and equipment (Hardware, Software) for building a strong IT base at first.
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Governments are currently addressing Internet based global commerce by considering rules of conduct, guiding principles, laws and taxation. [*30]
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Today, hotels are distributing their product via more and more channels. How they keep control of availability and price, maintain a consistent level of customer service, in addition to keep their distribution partners up to date at the same time has becomes a complicated and expensive process.
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The core transactions of our business involve intimate face-to-face interactions, which have certain limitations in regard to the use of e-commerce in the hospitality industry compared with other enterprises
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It is important to take a look at how Internet technology will affect the future of the tourism industry. Most IT tools are being utilized
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The hospitality & tourism internet future suggests a universal system where property management systems will eliminate the need for expensive on-site computer hardware/software.
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Future success for hospitality & tourism companies depends upon their abilities to identify a target market and the strategic opportunities available for survival and growth.
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It is crucial for hospitality & tourism organizations to stay on top of the roles 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 & tourism marketing is crucial to the survival of Hoteliers.
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This article highlights the different aspects that e-commerce brings to society. It highlights the many ways that e-commerce has affected the Hospitality Industry and the things that can be done about it, and it also highlights the economical and political impact that e-commerce might have on the future of our society (especially the hospitality industry).