Search results

Reviews the development of approaches to reservations management in the hotel industry alongside models of the stages of development in information technology (IT). Suggests that strategic success and operational implementation have been built on the prevailing IT “era”. Explores the future strategic potential of reservations management. Hotel operators need to understand how technology changes the “rules of the game” and identify alternative strategies for gaining competitive advantage. In reality, strategic implementation is either “service‐led” or “IT‐led”.

This paper explores the implementation of yield management using different reservation modes at a global hotel network (referred to as the “Group”).

The Group operates close to half‐a‐million rooms in about 4,000 hotels world‐wide. Following an overview of yield management in hotel industry, the two reservation modes used in the Group are presented. The performance of Group's online and off‐line reservation modes globally over a two‐year period is then discussed in terms of three yield management performance measures, namely: average price (AP), occupancy rate, and average revenue per available room.

The findings indicate that the online mode outperforms the off‐line mode with respect to performance measures of AP and average revenue. Further to a global‐based comparison, a localized evaluation of these two modes is also presented for two sub‐groups of hotels clustered in a given region. Statistical analysis of findings is provided, pointing to a substantial revenue increase for the hotel sub‐group that switched from the off‐line to the online reservation mode, compared with the hotel sub‐group that continued to operate off‐line. The paper concludes with a brief discussion on the strengths, weaknesses, opportunities and threats associated with the online reservation mode.

Future research could look into the impact of specific macro and micro economic conditions on the three yield management performance measures defined.

The research reported is of value to hotel executives who want to pursue online reservations.

The purpose of this paper is to examine the use of electronic distribution systems (EDS) in Korean hotels and investigate the differences between large and small and medium (S&M) hotels.

This is a qualitative and explorative study. An in‐depth interview was conducted of seven large hotels and nine S&M hotels.

Regardless of size, the surveyed hotels received, on average, more reservations through offline systems than online. It was found that large hotels showed less variation in the use of EDS than S&M hotels. While there was no distinct difference in the overall use of EDS, in terms of average, the highest percentage of hotel EDS use was demonstrated by S&M hotels. Regarding specific components and distribution flows, large hotels overall employed a variety of distribution channels, often implemented in multi‐faceted systems. S&M hotels, in most cases, adopted simpler distribution flows, i.e. hotel web sites and online travel agencies. This difference seems to be the result of the affiliation of primarily large hotels with huge hotel corporations.

An emphasis has been placed on the current use of an EDS within S&M hotels, given their greater competitive challenge with regards to their larger counterparts.

Meaningful implications are made that building an extensive and effective information system appropriate to the size and type of the hotel's operations is especially needed by S&M hotels.

The paper addresses EDS issues specifically for S&M hotels.

Unlike manufacturing firms where the production of goods can be adjusted according to the demand of customers, hospitality firms do not have the ability to alter the capacity of the changing demand of guests in a short period of time. Given the relatively fixed capacity or supply, maximizing revenue through inventory control is essential for hospitality operations. This chapter covers operations inventory control extracted from the field of revenue management. First, the concept of capacity management and planning is enclosed and various capacity management tactics and inventory control strategies are explored. Next, the management and principles of space inventory through inventory-based restrictions, strategic pricing, displacement analysis, and distribution channel management are addressed. Finally, the respective applications of these principles, strategies, and tactics in several hospitality sectors are discussed.

Several tourism destinations are using social media (SM) marketing more than traditional marketing in the developed countries. The increasing use of technology has replaced the role of travel intermediary. Most of the travellers in developed countries are no longer using travel agencies for their services. Many bookings are done online using electronic devices either at office or home. It is, therefore, a fact that SM has come to stay. However, the situation is contrary to some developing countries due to several reasons; for example, unreliable source of energy, communication, poor infrastructure and lack of competition. Most of developing countries depend on tourists from developed nations to consume their tourism destination products. Moreover, the modern travellers are no longer travelling in the dark. They want to have prior knowledge about their destinations. They check online product offerings, certification and destination labels. A modern tourist is becoming a more responsible traveller. SM plays a big role by providing information about many tourism destinations. Nevertheless, there are ongoing debates regarding the usefulness, future and survival of traditional travel agents despite the fact that there are threats from online travel agents and the increasing use of SM. This chapter is a case study of Malawi as a tourist destination. It critically discusses and analyses the impact of SM as a marketing tool. It also analyses the benefits and challenges of the travel agents, and finally confirms that there is a need to embrace technological change in travel and tourism industry in the developing nations.

This is the first implementation of Revenue Management System in a major international hotel chain in India. The case describes the history of development, corporate story of overdrive for profit, system integration issues. It describes two components of a revenue management system, forecasting and optimization. It also raises several questions that need to be addressed before implementing a RMS.

Information technology (IT) has become a strategic weapon on tourism products’ identification, presentation, dissemination and getting a sustainable competitive advantage. Tourism management is the most important candidate for using IT with the need for gathering information in large quantities and diffusion of tourism management. The heterogeneous nature of these businesses means that information-communication Technologies’ uses change from sector to sector and from management to management in the tourism sector. The development of IT has created new application areas for tourism industry managers especially in efficient cooperation and provided tools for real globalization, IT is unexpectedly part of tourism management because of information creation processing and transmission which are important in daily activities. Therefore, both rapid development of tourism demand and tourism supply have become a compulsory partner of IT; and for this reason, IT plays an important role in the tourism marketing, distribution, promotion, and coordination. Due to this importance; the impact of IT on tourism sector is valued to be investigated. This chapter stresses that IT’s uses play an efficient role in choosing the management on behalf of the consumer. Within this context, this chapter composes of the information society; IT development and tourism; the usage of IT on travel, hospitality, tourism sector, its challenges, and advantages. This chapter mostly emphasizes on these subjects that will be examined deeply.

The purpose of this paper is to understand several key issues regarding technology strategies for the lodging industry, including the use and impact of technology, technology adoption and implementation, the role of organization technology environment in technology use, channel management strategies, as well as future trends of technology development.

Qualitative interviews are conducted with hotel practitioners to gain knowledge in order to help explore issues and generate hypotheses for future research regarding information and communications technology (ICT) applications in the lodging industry.

The research finds that technology will continue to impact guest service and customer relationship management in the lodging industry, and that companies vary in their implementation and use of the technology applications.

Using qualitative research limited the number of hotels that could be interviewed; as a result, the findings cannot be generalized to every hotel.

Hotel owners and managers can look at the various trends and determine which can help their guest service, focusing on providing added value to guests.

The paper provides insight from the viewpoints of practitioners rather than just from technology experts.

The emergence of global electronic markets on the Internet has been seen as an opportunity for small and medium‐sized tourism enterprises to improve their competitive position. However, several barriers hinder small hospitality organizations from capitalizing on IT and the Internet. This paper reports on an action research program of introducing Internet technology in a small hotel located in a peripheral region of Finland. As part of a project funded by the European Union, a complete integrated Web booking and hotel management system was developed, denoting a re‐engineering of many business processes. The system, which features customer online (real‐time) reservation services was an inexpensive, user‐friendly solution specially designed for the purposes of small and medium‐sized hospitality organizations with little prior IT knowledge. In the field of online reservation systems, the hotel is a pioneer, as it is the first independent hotel in Finland to offer online reservation services through a non‐customized reservation system.

In the hotel industry today, web site marketing and third party distribution metrics are of critical importance in understanding the effectiveness of hotel revenue management objectives. The purpose of this paper is to propose a new model which tests hotel web‐effectiveness using the following variables: reach, content, consistency and price parity (RCO2P).

For the current RCO2P study, the hotel sample was broken down into two segment groupings of five hotels: luxury; and upper‐upscale. The ten full‐service hotels were monitored over a 90‐day period using room rate quotations and ordinal values across 14 dimensions based on three pre‐selected arrival dates.

Results of the RCO2P study indicated preferential display sequencing emerged as a significant factor in the reach category among all hotel properties reviewed. Only six of ten properties were measured as having achieved optimal web‐effectiveness, while poor price‐parity competency reflected the most situation‐critical performance among sampled hotel properties.

International comparative research methodologies were examined and determined to be effective models of certain hotel web‐effectiveness dimensions; however, a comprehensive hotel web‐effectiveness measurement model is still lacking which can better inform hotel industry executives. Therefore, future research should incorporate a best practice research approach combining the current RCO2P study elements with other web‐effectiveness measurement criteria based on the collective best practices identified among the research studies reviewed.