Online Reservation System and Information: Review

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter contains related literature and studies about online information and resort reservation system. All information and data are published research books and online journals.

2.1 Foreign Literature

Maxwell (2002) stated that “Information system are designed and implement within an organization to support adequate action such that value addition may be achieved. Another, all medium to large organizations depend on information technology for their continued survival.”

Gerard (2002) stated that “the flexible online information system was created as a tool with the two main purposes the reservation theory and its application.

The usage of computers is more efficient, accurate and faster than the manual or traditional system of working.”

Moreover, according to Max (2001) in his book “The basic problem in managing and establishment in producing the right and timely reports for every single division of department clearly he problems or having an immediate and accurate work for every business exist. The need of computer is very vital in field of business provide them easy and faster transaction and retrieve data information.

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The application of modern information technology dominated so far by the use of Internet websites and online reservation systems, gives competitive advantage to other with same establishment. However, the potential competitive advantage can be transformed into real advantage if only the websites have proper design. As a result, the advocator conducted research on the facts related to the system that might be helpful to its development.

Jeong et al. (2005) discuss the role of website quality in attracting online bookings and empirically test their proposed model with potential lodging customers.

Authors indicate that information completeness and ease of use are important determinants of website quality.

Schegg et al. (2002) analyze Swiss hotel websites over different criteria and conclude that they provide static information and limited transactional functions. Law and Leung (2002) examine airfare reservation systems over attributes like information quality, system use, system quality, services quality, and customer loyalty. Their results show that North American-based websites outperform Asian-based ones.

Land Vogt (2004) evaluates several online booking engines over 23 different criteria, like overall user friendliness, payment method, instant confirmation, reliability, and invoicing function among others. These criteria present some of system’s functions and design principles discussed further in current paper. Law and Wong (2003) find the three most important factors that contribute to a successful website, according to the on-line purchasers, are secure payment methods, different price ranges for products/services, and user-friendly system.

2.2 Local Literature

A dynamic website is one that has frequently changing information or interacts with the user from various methods or direct interaction. When the Web server receives a request for a given page, the page is automatically retrieved from storage by the software in response to the page request. A site can display the current state of a dialogue between users, monitor a changing situation, or provide information in some way personalized to the requirements of the individual user. [WikiPedia]

A dynamic website is one in which the content of the website and the design are separate, meaning that the content is shown to the user as he asks for it, within the design of the site. The content itself is inserted by way of a Content Management System (CMS). A CMS is designed to enable a non-programmer to easily add new content to his/her dynamic website FASTER than a designer could add a page to a static one.

This means that you could stick with a single website for years without needing to pay a designer a dime for updates! Another big advantage that dynamic sites have over static ones is the ability to have advanced e-commerce solutions that are 100% integrated with your website. This is because all of the pages are generated from the content that already exists on the site, so every time you add an article, product, or news to your site, it will automatically appear in the places it is supposed to. http://www.mrwebwiz.com

According to Mary Grace R. Canlas et al. (2012) in their unpublished material entitled “Online Information and Reservation for MB Dream Resort and Function Hall. “The application of modern information technology dominated so far by the use of Internet websites and online reservation systems, gives competitive advantage to other with same establishment. However, the potential competitive advantage can be transformed into real advantage if only the websites have proper design. As a result, the researchers conducted research on the facts related to the system that might be helpful to each development.”

2.3 Foreign Studies

Among the findings are:

•  The Internet is a high intensity medium, unlike traditional advertising undertaken by many resorts. The consumer receives a resort’s message because they choose to, so they have the potential to be 100% engaged when they are exposed to an online message. There is a fundamental shift in the online space from “push” techniques where messages are pushed to consumers to a “pull” technique in which messages are selected by the consumers. This change is crucial to understand as a marketer in order to take advantage of the new opportunities in a marketplace that is consumer-driven, not-supplier driven. As mobile devices such as MP3 players, PDAs, and cell phones proliferate, this message is even clearer.
• Upon launching a website, each resort effectively enters the global arena. Some of the global implications include addressing international issues such as language, relationships with international carriers, the role of third party intermediaries to penetrate emerging markets, and sourcing cost-effective means to raise resort awareness in markets with a high level of online travel research and booking.
• Portfolio diversity applies to the customer base for opportunities to smooth seasonal patterns, to fill group holes and to compensate for markets during periods of economic fluctuation.
• Leveling the playing field between chains and independents. There is a resort’s customer base and then there is the universe of potential customers who have not yet been exposed to a resort’s name, no matter how well known the resort may be in its region or even in the United States. Prior to the Internet’s usage by the consumer market, it was not practical to consider marketing to the wide audience of those unaware of a single brand name resort. It is now, not only practical, but would be irresponsible for a marketing team to miss the opportunity to address this wider market.

* This game is not won by getting more bookings through your website, but by getting more bookings. Online distribution creates tremendously exciting opportunities to facilitate more revenue. How this new revenue comes will vary by resort. Each resort can use online utilities to support its business plan in different ways.

Some will gain more through retention, some will gain more through improved dispersal of information, some will create a machine that channels bookings through existing call centers, and some will rely on third parties for incremental business during need periods. Some will win by higher yields through reductions in sales and advertising costs. The possibilities and the combinations for success are extensive. The report also generated a number of issues and misconceptions. Among them are:

• Optimizing a website when built and then waiting a year to do it again, not updating keywords regularly and having sites designed by one vendor and asking another to optimize. Knowing how to program and design web pages is a totally different expertise than making those web pages generate high SE rankings. While some do, not all advertising agencies, friends and/or relatives who may have tremendous graphics and/or computer skills also have the specialized skills needed for search marketing. This skill is a core requirement of anyone hired to build a site. Search engine optimization (SEO) needs to be done daily, weekly and monthly. Search engine algorithms change frequently and SEO is a specialty that requires constant research to stay current.
• On Building Traffic, many say “most people coming to our site use our resort name to find it” and “those savvy enough to use the Internet will find us.” There is $70 billion spent online by Americans for travel-related products. The use of search engines to do Internet research for hotels by location only has been cited as being close to 100 times the number of searches done to find a hotel website directly. The resort industry should be at the front of the line for this flow of traffic, especially since it is dominantly consumers looking for leisure travel options. There are more and more cases of savvy independent hotels that have shifted their business to 50% through their website and much of it is new customers who never would have found them except through search engines. It is not just old customers coming through a new channel, although this will certainly be a small part of it.
• On Distribution Channel Management, many resorts have not realized they can control every channel that delivers business to them. There are times when a lower rate is still better than no rate and times when it isn’t. Each channel needs to be tracked accurately so its costs and its benefits can be weighed and a well thought out revenue management decision made.

Many resorts totally avoid online travel agencies because they think the rates have to be very low to be sold, and others never restrict their inventory in them. These agencies have a place. They also do not only sell lowest rates. Online travel agencies are expanding their packaging and want a wide variety of properties. Many online wholesalers also offer retail programs that are no different than the familiar retail travel agencies well known to resorts. Avoiding them is like avoiding a category of travel agents. Every resort can have dedicated 800 numbers that only appear online so their reservation office can accurately track inquiries that come via the web and book via the telephone. Systems will need to be implemented to link the call to the booking. The study was derived from interviews with 13 participating resort companies, representing a wide range of resort formats, including international hotel groups, independent mixed use/condo developments, and independent three- to five-star properties. A vital tool for the resort just embarking on an Internet strategy as well as the resort with experience that wants to see how their practices compare with other resorts and collect some unique strategic planning ideas, the full report is only available to the HSMAI Resort Marketing Special Interest Group subscribers, while highlights will be published in HSMAI’s Marketing Review.

The next Best Practices topic on Customer Relationship Management and Loyalty Programs is underway and available for subscription by Nov. 11, 2005. The topic will review automated systems, marketing campaigns, online elements and customer service models to illustrate how CRM and Loyalty can generate revenue for a resort. The third study topic, following CRM and Loyalty, will be selected by the end of 2005 by the participating resorts; deadline to subscribe for the two 2006 projects is March 31, 2006. Registration requires a minimum subscription commitment for two reports. The subscription cost is $2,300 for HSMAI members and $2,600 for non-members. New participating resorts will receive a complimentary copy of the Internet Marketing Best Practices Study. Payments for new subscribers may be made in 2005 and 2006. Only registered subscribers receive detailed copies of the final report. A generalized report with summarized information will be published for the industry-at-large. Results will be presented annually at the Resort Management Conference co-sponsored by HSMAI and University of Denver School of Hotel, Restaurant and Tourism Management. Full reports will be available to the public 12 months after publication.

The Best Practices studies are conducted by The Estis Group (successor to Driving Revenue) under the direction of Cindy Estis Green and under the auspices of the HSMAI Resort Marketing Special Interest Group. The HSMAI Resort Marketing Special Interest Group will develop an annual list of topics to consider. Representatives from each of the participating resorts vote on the number and choice of topics to be explored each year. Among other topics identified of great interest to the resort community are:

• Group attrition at a destination resort where you can’t fill occupancy holes easily
• Inventory/rate allocations for online travel agencies when you are a four- or five-star resort working hard to maintain your ADR
• GDS Advertising – how can you tell when it works
• Effective sales incentives that work; job descriptions that are descriptive
• Guerilla Marketing on the Web – how does it work, what makes it most effective
• Internet Marketing: dynamic packaging, SEO, website designs that work
• The travel agency market – how to get the most out of it
• Distribution Strategy (independent resorts and chain-affiliated resorts)
• CRM – offline and online – is it really worth the money it costs/