E-Business in the Hospitality Industry

Describe some recent development of e-business software in the hospitality industry.

Answer 1


E-business (electronic business), derived from such conditions as "e-mail" and "e-commerce the conduct of business on the web, not only investing but also servicing customers and collaborating with business lovers. One of the first to utilize the word was IBM, when, in October, 1997, it launched a thematic advertising campaign built around the term. Today, major companies are rethinking their businesses in terms of the web and its own new culture and capabilities. Companies are employing the net to buy parts and items from other companies, to collaborate on sales marketing promotions, and to do joint research. Exploiting the convenience, availability, and world-wide reach of the web, many companies, such as Amazon. com, the reserve sellers, have already learned how to make an online search successfully.

Increasingly, much direct offering (or e-tailing) is occurring on the Internet of computer-related equipment and software. One of the first to article sales in the millions of dollars directly from the net was Dell Computer. Travel bookings directly or indirectly consequently of Web research are becoming significant. Custom-orderable golf clubs and similar specialties are believed good potential customers for the immediate future.

E-business is a term used to describe businesses run on the web, or utilizing Internet systems to improve the productivity or success of the business. In a far more general sense, the term enable you to express any form of electronic digital business - that is to say, any business which utilizes your computer. This use is somewhat archaic, however, and generally in most contexts ebusiness refers solely to Internet businesses.

The most popular execution of ebusiness is really as yet another, or occasionally main, storefront. By retailing products and services online, an ebusiness can reach a much wider consumer base than any traditional brick-and-mortar store could ever expect. This function of ebusiness is referred to as ecommerce, and the conditions are occasionally used interchangeably.


Face of consumerism through e-commerce has radically transformed in the last few years. Buying or selling through Internet and online shops depending on websites, has become a typical part of consumer life today. Higher expectations, less tolerance, more challenging and choosy customers have become more prevalent. Economic, public and technical factors have created a highly competitive business environment where customers are becoming more powerful, Turban and King (2003, p. 25). The highly professional search machines get this to possible for them. E-Commerce is becoming a continuously bigger part of life without our realising it. To make e-commerce work well, constant development and improvement of adjoining functions is essential. E-commerce solutions are assorted, and owner, buyer compatibility with it's important to utilize a chosen one. Also it should be affordable for the supplier. Online offering is the primary growth area for the Internet. Elegant sites, easy requirements, less cumbersome process, more information sharing, computer animation, attractive information offered in the most interesting ways are bases of an sound e-commerce. E-commerce website should give a revitalizing experience with reliable information that could motivate the customer. Easy Channelling and navigating the clients to full portfolio of most necessary and essentially correct information is very important. Websites should be searchable, price should compete and eShop information should be common.

E-Commerce has taken ground-breaking changes in tourism and hospitality industry. Advantages are extensive. It facilitates neighborhood access to tourism market and minimises the financial information leakage. It web links local areas and hospitality industry directly with the travelers. It could help building up local finance combined with the national foreign exchange. It increases small businesses by immediately marketing the neighborhood products and companies all over the world. Local neighborhoods get a direct show in the income while traditional cultures, social buildings of the hosts get loved and remarkable skills make a come back.

Hospitality is a booming industry all over the world today and through Internet, reselling their hotels, facilities offered, picturesque backgrounds, food, comforts, ethnical attractions, communal functions, religious peculiarities are showcased without much expense or difficulty. Travelers have all information through search machines with the current data and rates. They could immediately talk, write, e book and pay for their stay much in advance, with all information about getting, being welcomed, how and where, reaching things, weather, forecasts, risks, destinations and day-today itineraries intact with them a few months in advance. Option of souvenirs, food requirements, comforts, usage of religious places, historical sites, internal going, places of interest, are all maintained by people at hospitality items. Trade opportunities, reservations, seat tickets, travel, instantaneous information about any place nearby are given through hotels. In today's performance criteria for service businesses, fast service delivery and quick and reliable service have been identified as two key competitive priorities for future years Web-based service delivery functions (Verma and Young, 1997), while time-based competition through better customer service has been re-emerging as a major tool of providing high-quality services to customers through a complete operation cycle - including planning, design, handling, marketing, and distribution.


The first role of the internet in the hospitality industry is online booking. As aforementioned in the past, travel companies were the most typical source for scheduling hotel rooms and other travel components like airfare tickets and travel tours. However, the internet has modified this; manual reservation and reservations have been changed to E-booking or online reservation via Central Reservation Systems (CRS). By March 2008, there are over 1. 4 billion internet users (Internet World Stats, 2008) and based on the Computer Industry Almanac, this quantity is assumed to increase to at least one 1. 80 billion in 2010 2010 (Clickz Stats, 2005). The Travel Industry Relationship in the United States stated that in 2002 about 64 million out of 619 million internet surfers were online travelers and used the web to acquire travel-related services (Zhang, 2004, p. 3). "Online leisure travel sales totaled $20. 4 billion in 2002 and hotel booked online come to $3. 8 billion" (Ibid). In 2005 the web travel revenue come to $27. 7 billion in the U. S. only and has gradually increased (Webmetro, 2005). Now consider what size these numbers would be on a global basis.

Internet as Marketing Tool:

Another important role of the internet is the use than it as a marketing tool. Before a hotel may offer e-booking it must set up its website. The hotel can apply attractive designs and offer guests a virtual tour of the complete property and show various room types. This plan is considered a minor but gets a great deal of appeal from internet surfers. The web also allows hotels to attain more customers by using search engine optimization (SEO), which really is a tool that helps boosting the traffic and page rank in search engine unit results (Hotel Travel Check, n. d. ). Another internet marketing strategy for the hospitality industry is electric customer relationship management (eCRM), that are activities to manage customer relationships by using the internet and browsers (Hotel Marketing, 2007).

Another popular internet marketing strategy in the hospitality industry is consumer generate advertising (CGM), which contains discussion board, community forums, personal blogs, review sites, social networking sites, etc. (Ibid). CGM consists of three approaches that can help market hotels:

1. Brand Defensive Strategy

To Protect and Monitor Chatter on the Web about hotels (Ibid).

2. Commercial Sponsored CGM Initiatives

To leverage the expert knowledge that presently is accessible at hotels out there on the net.

3. Advertising and Marketing Medium

To speak to visitors by advertising on high traffic CGM sites (Ibid).

Employment and Recruitment:

Another important role of the internet in not merely the hospitality industry but in fact in every establishments is online job ad and recruitment. Usually, hotels would advertise on newspapers and newspapers, where it was quite expensive to do but given that they developed their own websites, job opportunities are usually uploaded there under the profession section. People seeking a career in the hospitality industry can browse through the many job opportunities and send their resumes in via e-mail. However, bigger hotel chains like Starwood Resorts and Hotels, Marriott Worldwide and the Intercontinental group usually require job seekers to sign up as users; this also enables users to create their resumes on the web and allows employers to surf quickly and find the most matching standards; this as you can see benefits both workplace and job seeker. Nonetheless, there are also indirect websites where hotels may advertise their job opportunities, such as jobsdb. com in Thailand or monsterjobs. com in England.

Hurdles In online hospitality industry:-

Lack of good IT security support

Slow connections

Complex IT environment

Improper business planning and structure

Even though these hurdles influence this industry, still many new inventions and improvements are made keeping because the opportunity and extend of this industry. At the moment many institutes are providing degree and certificate programs in hospitality sector with computer and use of internet in its central curriculum. With these attempts more and more trained experts with better certification and knowledge are coming into this sector. With this new innovations are occurring each day and even more dedicated efforts are made for its expansion and development.

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