The Future of Hospitality and Tourism E-Commerce and

							                       Outline
1.   New Technologies
2.   New Paradigms
3.   New Strategies
4.   Issues, problems, and barriers




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               Internet Purpose
The purpose of Internet communication for business can be
   summarized as follow:
   • Sales and marketing
   • Human resources management (online manuals, forms
      and directories, and recruitment and application)
   • Manufacturing and operations
   • Customer service and support
   • Finance and accounting
   • Customer service
   • Customer relationship management (CRM)
   • Public relations and information distribution
   • Employee knowledge sharing and dissemination
   • Employer-employee communication                        3




      Three different communication
                 platforms




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       Overview of Classification
           Communication




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New Technologies, New Paradigms,
       and New Strategies
•   New technologies are being introduced into the
    market almost on a daily basis, which in turn opens
    up new territories and new possibilities in hospitality
    and tourism e-commerce.

•   With new technologies, new paradigms are being
    created, and therefore new strategies are being
    formed to compete in this ever changing but
    profitable world of e-commerce in the hospitality and
    tourism industry.



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      New Technology Trends
•   In considering development trends in technology, you
    need to understand the needs of humankind for
    communication, information distribution, and
    business transactions.
•   Just as the internet is the result of our relentless
    quest for instant, real-time, and 24/7 communication,
    future developments in technology will need to solve
    the remaining issues for communication and
    business.




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        New Technology Trends
1. Broadband and Speed
  •   The dial up modem connection to the Internet has
      become a bottle neck for complicated needs of
      human communication. Large chunks of data
      transmission, such as video, graphics, and other
      multimedia, require a lot of bandwidth, which the
      traditional dial-up telephone line want not designed
      to handle.
  •   Broadband technologies such as DSL, ISDN, cable,
      fiber optics, satellite and radio wireless will become
      the norm in the future.


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        New Technology Trends
  •   Hospitality and tourism businesses will look on
      broadband technologies as their major offering for
      consumers demanding broadband services.
  •   Today, most major hotel chains have installed
      broadband high-speed internet connection in their
      hotel rooms and business centers. Increasingly,
      travelers are expecting every hotel to have such a
      connection, just like they expect cable television in
      every room.




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        New Technology Trends
2. Mobility and Accessibility
  •   Mobility and accessibility are key in meeting the
      needs of the consumers
       • to access information not only 24/7 but also
          wherever.
       • Wireless and satellite communication provides
          such a solution to solve the problem.
  •   Handheld devices, such as PDAs (personal digital
      assistants) and cell phones will take the market lead
      in year to come.
  •   Location-based technology, this technology can
      provide interactive functions that permit people in a
      different locations to communicate via IM, or view
      restaurant listing together to decide where to meet. 10
        New Technology Trends
3. Instant Message (IM)
  •   With IM, each user has a private list of instant
      messaging address, and the instant message system
      can be set to alert you when someone on your list is
      online, or leave an message for a user who is not
      available online.
  •   Hospitality and tourism e-commerce can use this
      technology to send customized information ranging
      from travel conditions to flight cancellation.




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        New Technology Trends
4. Convergence of Technologies
  •   Web will server as a central communication
      platform where means of communications merge
      with each other to create the most powerful and
      convenient information distribution, communication,
      and e-commerce channels.
  •   Convergence refers to the integration of voice, data,
      and video into a single, IP-based network.




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        New Technology Trends
5. Integration of Business and E-Commerce
    Technologies
  •   The Motivation behind this trend is twofold.
      • First, the development of new technologies has
          made it possible for businesses to use internet
          technologies to transform their old business
          technology solution into an integrated system.
      • Second, cut costs in the adoption of new
          technologies
  •   Technology plays an increasingly important role in
      maintaining competitive advantage by increasing
      efficiency and effectiveness in business operations
      and customer services.                              13
           New Technology Trends
6. Voice Recognition
   •   With voice recognition, travelers can free up their
       hands while driving or doing fun things by speaking
       to voice recognition devices, such as handheld
       computer, instead of typing on a keypad.
   •   For instance, through a voice command service, a
       traveler can use a wireless device get e-mail and
       have it read or receive a response, and get headlines
       and make reservatiions.




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           New Technology Trends
7. Tracking technologies
   •   These technologies are needed by e-commerce
       companies to get users to visit their sites, allow
       shoppers to easily find and buy the products they
       need and enable electronic customer relationship
       management (e-CRM) by customization and
       personalization.
   •   When customer return to the site, the site will have
       remembered their interests and preferences to
       provide a personalized experience for the customers.



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           New Technology Trends
8. Wireless Communications
   • Key wireless technology applications are emerging
      quickly to meet the needs of the travelers.
   • Already in use or being improved are applications such
      as
       • location based services : the ability to locate cell
           phones to send information
       • Voice command service: basic voice recognition
           technology
       • Multimedia: viewing short videos, like trailers for movies
           and videos taken on vacation
       • Speed: faster wireless networking-and Ethernet
           connection at 11 megabytes per second that can match
           the speed of broadband
       •   Interoperability: improving the ability to talk to one
           another                                                16
        New Technology Trends
  •   The hospitality and tourism industry will continue to
      look for ways to increase productivity through
      wireless extensions of e-commerce.
  •   With wireless technology becoming more mature and
      shifting from voice to data and from limited personal
      usage to mobile e-commerce and personalization, it
      is foreseeable that more companies will be taking
      advantage of wireless technology




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                New Paradigms
1. Information as Assets
  •   Customer information has become part of a
      business’s assets.
  •   The idea means that the business will have to find
      ways to invest these assets.
      • One simple way to do is to make sense of those
         assets and customize the information so as to be
         able to provide valuable services to customers.
      • In e-commerce, this is called e-CRM, one of the
         hottest trends in hospitality and tourism
         management.

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                New Paradigms
2. Personalization and Customization is King
  •   Internet technology has made it much easier to do
      target marketing in a faster, more accurate way.
  •   With Internet research and communication tools,
      delivering personalized and customized information
      is no longer a time-consuming, costly proposition. In
      fact, it is cheaper and faster to deliver such
      information today than it was with a mass mailing in
      the past.




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                New Paradigms
3. The web site as a 24/7 office
  •   In the fierce competition for web dominance in e-
      commerce, the site that not only attract visitors but
      also convert into loyal customers will be the winner.
  •   Since online visitors can come to a web site must
      serve as a 24/7 office or an extension branch of the
      business.




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                New Paradigms
4. Permission Marketing is Everything
  •   Hospitality and tourism e-commerce business must
      make sure that they get consumers’ explicit
      permission to send marketing or any type of
      information.




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                New Paradigms
5. Disintermediation and Re-intermediation
  •   The internet has been blamed for much of the death
      of middleman. It is true that the Internet provide an
      excellent alternative for direct marketing and selling,
      thus putting most of the traditional middleman out of
      business.
  •   The fact is that it is not that travelers do not need
      travel agents, the middleman; it is that consumers
      need a more efficient and effective way of accessing
      travel information and reservation.



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                  New Strategies
1. Service Orientation
    •   The first e-commerce strategy for hospitality and
        tourism enterprises is to focus on customers and
        customer service rather than on products.
        • A customer-and-service-oriented company tries to
          understand the customer needs and find solutions to
          meet their needs.
        • A product-oriented company tries to sell features of its
          products and lets customers decide what they want.




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                  New Strategies
Travel agency
•   Customer-and-service oriented
    • Understands customer needs and preferences,
       personalizes solutions to meet those needs and
       preferences, and builds a long-term relationship with the
       customer.
•   Product-oriented
    • Simply tells the customer what the customer can get from
       the agency, such as airline ticket, hotel reservations, or
       cruise-line bookings. => In this case, the travel agency
       becomes as ticket retail store.



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                  New Strategies
2. Building Virtual Communities
    •   The internet has provided every imaginable tool for
        businesses to offer opportunities for their customers
        to communicate and share information about their
        products and services. Tools such as mailing lists,
        usenet, discussion forums, chatrooms, and web site
        portal are great communication vehicles for people
        with the same interests to gather in cyberspace to
        communicate and share information
    •   Viral marketing, which refers to a process in which
        consumers voluntarily spread a message about a
        company, a product, or a service based on their own
        experience. It is the internet version of word-of-mount
        marketing.
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                   New Strategies
   •   When your satisfied customers recommend your web
       site or service to their friends in virtual communities,
       • If that customer passes his or her
           recommendation to his or her friends. All this is
           made possible because passing information on
           the Internet is much easier and more convenient
           than through any traditional means.




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                   New Strategies
3. Partnership
    • Partnerships are important because of the nature of the
       hospitality and tourism industry, which is an interrelated
       group of businesses that serve the needs of travelers.
        • Hotels benefit from partnership with airlines, and small
           businesses benefits from partnership with large,
           reputable corporations.
    • This e-commerce strategy is based on the fact that the
       Internet is basically a web of information: Everything is
       linked to everything else.
       • By identifying web sites or web pages that attract potential
           customers for your product or service, you can exchange
           links or pay to be linked to or advertised in another web site.

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                   New Strategies
4. Multi-channel Communications
   •   This strategy uses multichannel communications for
       marketing and customer service.
   •   You need to realize that not all your customers have
       the same technological skills and may not prefer to
       use the same communication vehicle.




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                   New Strategies
5. Building Brand with Trust
    •   Established, well-known brands can play catch-up so
        quickly with web entrepreneurs and in many cases
        outperform the latter because consumers feel safe in
        dealing with these brands, even in cyberspace.




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    Issues, Problems, and Barriers
•   For small businesses, the cost of adopting new technologies
    becomes a big issue
    • related to the cost issue is that of deciding on managing
       technologies in house or out of house, that is, outsourcing
       to technology companies.
•   The problem of standardization of technologies
    • Vendors have produced different technology standards,
       resulting in confusion at best and incompatibility at worst.
•   Online payment methods
    • E-commerce requires a complete system for online
       financial transactions so that online travelers can pay for
       products and services instantly as they see fit.
        • Only when business and online travelers feel that they can
           pay or accept payment easily, reliably, and securely can
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           you convert more lookers into buyers.