Introduction
What is the most convenient way to make a reservation in one’s hotel or restaurant of interest? While people may have different preferences on which method of booking to use, the online reservation system is fast increasing in popularity. Many hotels and restaurants have adopted this technology, and much more are investing their money and time in coming up with functional and reliable online booking systems. This technology is quickly becoming an essential service for any company in the hospitality industry that desires to satisfy both its customers’ needs and, subsequently, its business interests. This paper examines the online booking systems, giving an overview of how the technology works, its impact on the hospitality industry and the issues associated with incorporating this emerging service.
Overview
Normally, hotel online booking systems designed with the intention that they become the best in the market. As a result, developers usually incorporate features after obtaining inputs from different hotels regarding sales as well as operations. Since the system is intended to for use by a large number of prospective customers, it is made as user-friendly as possible (Che-Hui et al. 213).
The system usually has a backend side, which allows the hotel personnel to either update or maintain charges and availability. The backend services include uploading hotel images and description, updating the rates, updating promotions and discounts, and closing sales. On the other hand, the frontend allows for the customer interaction. This side is what comprises the user interface. On this interface, the customer can check the information uploaded from the backend, such as availabilities and promotions. He can then book a room and make an online payment that is accepted by the hotel. This payment reaches the hotel through a direct online gateway to the hotel’s bank. The data entered by the customer is then passed on to the database on the hotel’s server, and the reserved room is assigned a state that does not allow other users to access it (Che-Hui et al. 216). Additionally, the customer may want to cancel or make an amendment of his reservation. An occurrence of such a scenario changes the state of the data in the database in respective response to the customer’s actions.
How it Impacts the Hospitality Industry
The online reservation systems are beneficial to the hospitality industry mainly because they are convenient to the client, hence improve customer retention. Additionally, since the customer interacts directly with the hotel’s system, the hotel does away with third-party commission fees. Che-Hui et al. state that the hotel also saves on operational costs as the system provides the users with automatic feedback (218). Further, the occupancy levels of the hotels are increased due to the expanded target market that the system provides, being hosted on the internet where a larger population can reach it.
Perceived Issues
An important topic regarding hotel online booking systems is security (Murphy and Meng-Mei 531). Online reservation systems are often feared to put one’s personal details such as identity and credit card information at risk. This case is common when making a reservation via an insecure website. Moreover, this issue makes it difficult for hotels to choose whether to use third party systems or develop their own, which might be more costly. Further, online booking systems deny the potential customer to have a personal interaction with the hotel personnel limiting avenues for asking questions.
Conclusion
The hospitality industry is increasingly becoming dependent on technology. The online reservation service has surely created an impact on this sector of business and is still being frequently improved to offer even better services. Despite the few issues that are perceived to limit the capacity of this technology’s impact, the online booking system is one of the best innovations ever to hit the hospitality industry. Every hotel that seeks to remain in business should adopt this technology.
Works Cited
Che-Hui, Lien, et al. "Online Hotel Booking: The Effects of Brand Image, Price, Trust and Value on Purchase Intentions." Asia Pacific Management Review 20.4 (2015): 210-218. Business Source Complete. Web. 10 May 2016.
Murphy, Hilary Catherine, and Meng-Mei Chen. "Online Information Sources Used In Hotel Bookings." Journal of Travel Research 55.4 (2016): 523-536. Business Source Complete. Web. 10 May 2016.
