In the past, hotel room reservation transactions were made solely between the hotels and the travel agencies, therefore it falls under the Business-to-business (B2B) category.
For instance, a consumer wants to make a room reservation at Hilton Hotel in Hong Kong (HK), he or she will have to contact a local travel agency in Singapore which is tied up with the Hilton Hotel located in HK. The local travel agency will have to check with HK's Hilton Hotel for the room's availability before getting back to the consumer. The whole process will take about a day or two for all the information and requests before they are communicated and processed accurately.
A typical backpacker, who usually makes spontaneous (impromptu) decisions may have to travel from hotel to hotel to seek for a room.
First, the availability of rooms is not guaranteed.
Second, the whole process could be rather tedious, especially after a long day of traveling.
In the past, hotel room reservation transactions were made solely between the hotels and the travel agencies, therefore it falls under the Business-to-business (B2B) category.
For instance, a consumer wants to make a room reservation at Hilton Hotel in Hong Kong (HK), he or she will have to contact a local travel agency in Singapore which is tied up with the Hilton Hotel located in HK. The local travel agency will have to check with HK's Hilton Hotel for the room's availability before getting back to the consumer. The whole process will take about a day or two for all the information and requests before they are communicated and processed accurately.
A typical backpacker, who usually makes spontaneous (impromptu) decisions may have to travel from hotel to hotel to seek for a room.
First, the availability of rooms is not guaranteed.
Second, the whole process could be rather tedious, especially after a long day of traveling.
As shown in the diagram above, there are at least four flows of communications, which is exclusive of other instances whereby confirmations or clarifications with any parties are required in order to process the hotel room reservation successfully.
All information about the types of rooms, pricing, hotel amenities and et cetera are being transferred from the hotel to the travel agency and lastly, to the consumers.
Information may be lost or passed on inaccurately to the consumer who is at the end of the communication chain, affecting the consumer’s holiday experience.
As it is a B2B transaction, consumers have to go through the travel agency (third party) to make the room reservations, resulting in higher price payable as it involves higher transaction costs due to the various transaction and communication levels involved.
As years went by, with the introduction of ICT, consumers started contacting the hotel directly by looking up their contact details from past experiences and catalogs. However, the costs back then was still higher as consumers need to make overseas calls for arrangements such as airport transfers and et cetera.
Lastly, they will have to send their room reservation confirmation and personal documents such as a copy of the consumer's passport, privilege cards and et cetera through facsimile to the hotels of their choices.
As shown in the diagram above, there are at least four flows of communications, which is exclusive of other instances whereby confirmations or clarifications with any parties are required in order to process the hotel room reservation successfully.
All information about the types of rooms, pricing, hotel amenities and et cetera are being transferred from the hotel to the travel agency and lastly, to the consumers.
Information may be lost or passed on inaccurately to the consumer who is at the end of the communication chain, affecting the consumer’s holiday experience.
As it is a B2B transaction, consumers have to go through the travel agency (third party) to make the room reservations, resulting in higher price payable as it involves higher transaction costs due to the various transaction and communication levels involved.
As years went by, with the introduction of ICT, consumers started contacting the hotel directly by looking up their contact details from past experiences and catalogs. However, the costs back then was still higher as consumers need to make overseas calls for arrangements such as airport transfers and et cetera.
Lastly, they will have to send their room reservation confirmation and personal documents such as a copy of the consumer's passport, privilege cards and et cetera through facsimile to the hotels of their choices.
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