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Essay / Research Paper Abstract
This 7 page paper considers the impact that the use of information technology (IT) in the hotel industry has and is still having on the prices or rates charged for rooms. The paper considers the benefits and the disadvantages and the way these have impacted. The bibliography cites 11 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEhotelIT.rtf
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Unformatted sample text from the term paper:
is mature and potentially saturated where the supply is greater than the demand (Kotler, 2003). Niche markets exist, but with the use of technology the potential guests, both leisure and
business, are empowered to compare hotels in the same area in terms it facilitates and costs. In addition to this the internet also increases information flow and reduces the traditional
asymmetry of information especially with web sites such as trip advisor where guests can write reviews and grade hotels after their stay. However, it is not only the guests that
use information technology (IT), hotels are also using it and it is the guests that ultimately pay for the adoption of IT. The use of IT by hotels has
also increased, once seen as a potential source of competitive advantages it can now be seen as required in order to avoid suffering from a disadvantage. Traditionally information technology has
been taken up in luxury hotels at a greater rate than the budget motels, but ion both cases the uses have been functional linked to the hotel operations (Siguaw et
al, 2000). Likewise it has been adopted more readily in hotels that have convention facilities rather than leisure centric hotels (Siguaw et al, 2000). The IT is being used with
the aim of increasing productivity of the staff and enhance the revenues rather that to aid with the guest services (Siguaw et al, 2000). The aim of creating
value wit the use of IT and developing productivity has been a difficult to justify move. Like any strategy where there is a major change the investment needs to be
paid for prior to the realisation of the results. This means that the cost needs to be paid before savings are made
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