What is information Technology?
The improvements in human and organizational problem solving are related to, and brought about from the development of Information Technology. This is possible, through a series of planning, development, and use of technologically based systems and processes. Efficiency and effectiveness are hence improved.
In modern days like these, Information Technology has been developed to a stage where it is everywhere and every moment around us. The successful implementations of Information Technology (IT in short) have enabled it to be extended over a huge area, as well as across almost every single industry/business in the world today.
The business of online hotel reservation can be served as an example of how and what the evolution of Information Technology had changed and brought about.
Past hotel reservation
Prior to the development of the information technology (internet in this case), travelers whom had the desires to make hotel reservation for their vacation had to make the hotel reservation personally and physically at the travel agents or make a phone call to the respective hotels.
Calls or physical visits had to be made to the respective hotels for inquiries regarding the facilities, cost, and transportation/accessibility and room availability. These procedures were pretty expensive for the majority back then. Additional calls or visits were often required for confirmations on the bookings before customers could proceed with their payment. It was inconvenient and cumbersome. The entire process was extremely time-consuming. In addition, price comparison between hotels is also not an available option back then and that could place the consumers in a disadvantageous position instead.
Present hotel reservation
Today, online hotel reservation is one of the most popular methods, which is utilized by many travelers in the reservation of hotel rooms. Travelers could utilize this method with ease, where the security and privacy of their personal and financial information could be ensured.
The entire process is relatively shortened by the conveniences that info-communications, namely the internet has brought about. Real time confirmation and price comparison between hotels is also available. Payment has also been made easier and faster with the availability of various kinds of e-payments.
Again, there are many alternatives to make hotel room reservations online. One alternative “route” for online hotel reservations may include the transaction broker. The tremendous growth in the utilization of the information technology together with globalization today has made the role of online transaction brokers possible.
Transaction brokers
Transaction brokers are not a representative for either the seller or consumers but acts as a third party facilitator who coordinates a sale or service. They provide a platform to aid in the link between business and consumers, acting like an intermediary. Therefore, transaction brokers can be classified as a business-to-consumers (B2C) group. An example of such transaction broker includes Agoda (http://www.agoda.com ), where it will be further examined.
Agoda
Agoda (www.agoda.com) is an internet company, which provides online hotel reservations in almost every destination worldwide. It started in the late 1990’s and had since expanded to comprise of hundreds of staff operating across the globe. In November 2007, Agoda Company was acquired by Priceline.com. In addition, Agoda was awarded Best Accommodation website in Asia for 2008 at the inaugural TravelMole Web Awards for Asia.
Advantages
There are several advantages for using a transaction broker like Agoda. First, it offers “Best Price Guarantee”. It means if the customer is to reserve a room in the same hotel for the same dates at a rate that is lower then what Agoda offer, Agoda will either match the rate or beat it to provide a satisfactory rate for the customer. However, the room selected will have to be viewable and bookable (available) on the other website as claimed. Claim submissions are possible, via email with the relevant information.
It also has a function - “Last viewed hotels”. In this way, taking down notes for specific choices was not a necessity, as the customer could easily refer to it for reference.
Agoda has also taken into consideration on the language barrier, by having the site available in 32 different languages. Customers can have access to them anytime, anywhere and at any language of their preference.
In addition, Agoda has a “loyalty program” which may be applicable and attractive to frequent travellers. This works in a way, where when a customer makes a reservation of the hotel room online through Agoda, the customer is entitled to points which are worth 4 -7% of the room price. Every dollar the customer spends, they are entitled to 20 rewards points. Members must redeem the points according to the redemption scale. For example, making a reservation for a $625 hotel stay, the customer will be able to receive 12,500 points, which is worth $25 in total. The customer has the option to accumulate points for bigger savings for future transaction, or use them at the current transaction. These points are applicable and cumulative for future transactions, leading to a reduction of the room rate for hotel room reservations at Agoda. Hence, frequent travellers will find this attractive with its cost saving features.
Besides giving the best price and savings, Agoda provides multi-lingual customer service 24/7, where inquiries regarding room reservations or their services can be made regardless of the time difference across the globe.
The user- friendly interface enables reservations to be made at a faster pace and under a more convenient way. In addition, the availability of pictures and reviews from past customers allows consumer to have a better understanding of their choice. Customers are hence able to align their expectations beforehand and make the best choice.
Disadvantages
However, there are also several disadvantages. With the anonymity on the transactions online today, identity theft has become very common. Despite the fact that Agoda keeps the personal and financial information of the customers under security, there may still be events where the information of the customers are leaked, under other circumstances. For example, a loss of the credit card may lead to a misuse by the other party, causing financial information of the victims to be leaked and used inappropriately.
The point system, or the “loyalty program” may not attract 100% of the customers. This is because not all customers are frequent travellers and hence, they might not find this feature to be an attractive one.
Multimedia features, namely pictures, videos and maps are available at convenience of a click for a customer to understand his/her option and to make the choice they deem as the best. However, this may not be the best case. There will still be a possibility where they do not make a best choice out of these features. This is possible when they might be given a “misleading illustration” from the pictures (for example, pictures taken only from a certain angle or from a small part of an infrastructure that seem “wonderful”). After all, being physically at the exact location may be different from what that is shown on the internet, in front of the computer screen itself.
Conclusion
In conclusion, information technology had brought about a great change in terms of online hotel reservation for travellers. Online hotel reservation is an increasingly popular method for travellers, where reservations can be made at ease, with convenience at a fast pace. Although, there are “down-sides” to it as well (as argued from the above), there is no denial that that these developments has brought about great conveniences with speed and accuracy.
