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Evaluating
Technology in
the Industry
 School of Hospitality Management
3 key questions
 • Does it provide a competitive
   advantage/s?
 • Does it improve productivity?
 • Does it enhance profit?




    School of Hospitality Management
• Choosing the right technology for your
  organization is a key management process
  that can help the company move up in the
  industry




     School of Hospitality Management
Does it Provide Competitive Advantage?

• How can the technology give us an edge
  over our competitors?
  – Product Differentiation
     • Unparalleled Service
     • Market Segmentation




     School of Hospitality Management
Does it Provide Competitive Advantage?
  – Cost Differentiation
     • Creation of product with lower cost
     • Creation of better product at the same cost




     School of Hospitality Management
Product Differentiation
 • Unparalleled Service
    – Service that is present only in your
      organization that provides a distinct
      identity for the company in the industry
      • Specific Item Freebie / Unique Customer
        Service etc.




    School of Hospitality Management
Product Differentiation
 • Market Segmentation
    – Is a marketing strategy in which there is
      a specific group in the market that is
      being “targeted” by the company’s core
      product or service
    – This “target” has at least a common
      characteristic present in all its members




    School of Hospitality Management
Product Differentiation
 • Cost Advantage – Lower of Costs
   – The cost of producing the same product
     or level of service is lower than that of
     the competition.




    School of Hospitality Management
Product Differentiation
 • Cost Advantage – Higher level
   Product for the Same Price
   – The level of the product is higher than
     that of the competitions, even if the
     price is the same




    School of Hospitality Management
Does it increase productivity

 • How can the technology increase our
   productivity?
    – Workflow Processing
      • Task Sequencing
      • Space Management




    School of Hospitality Management
Does it increase productivity

 • How can the technology increase our
   productivity?
    – Data Processing
      • Input – output time is minimized
      • Minimization of data handling
      • Streamlining the output




    School of Hospitality Management
Does it enhance profit?
 • Does the use of technology produce
   rewards that outweigh the risks?




    School of Hospitality Management
New Products in the Industry
 • E-commerce (electronic commerce or
   EC)
   – the buying and selling of goods and
     services on the Internet, especially the
     World Wide Web.




    School of Hospitality Management
New Products in the Industry
 • This term and a newer term, e-
   business, are often used
   interchangably.
 • For online retail selling, the term e-
   tailing is sometimes used.




    School of Hospitality Management
Division of E-Commerce
• E-tailing or "virtual storefronts" on Web
  sites with online catalogs, sometimes
  gathered into a "virtual mall"
• The gathering and use of demographic
  data through Web contacts
• Electronic Data Interchange (EDI), the
  business-to-business exchange of data


     School of Hospitality Management
Division of E-Commerce
• E-mail and fax and their use as media for
  reaching prospects and established
  customers (for example, with newsletters)
• Business-to-business buying and selling
• The security of business transactions




     School of Hospitality Management
Forms of E-Commerce
•   Distribution Channels
•   Social Networking
•   Internet Marketing
•   Enterprise Systems




       School of Hospitality Management
Electronic Distribution Channels
• Provides communication linkage to the
  hotel to its potential guests through
  multiple exposure alternatives
  – Internet Booking – Booking websites
  – Global Distribution Systems




     School of Hospitality Management
Agoda.Com




   School of Hospitality Management
Asia Travel. Com




    School of Hospitality Management
Global Distribution Systems




    School of Hospitality Management
Social Networking
• The use of Social Networking sites has
  been an alternative way of exposing the
  organization in a more “personal”
  approach, allowing management to reply
  to customer queries in a conversation type
  public forum setting




     School of Hospitality Management
Internet Marketing
•   Online Ads
•   Site Banners
•   Free Selling Sites
•   Pop Ups
•   Collaborative Sites




       School of Hospitality Management
Enterprise Systems
• ES addresses the needs of Multi Property
  organizations by providing a central
  system accessible to the different
  establishments
  – This allows elimination of central and regional
    office operation costs as well as increasing
    efficiency in transfer of data



     School of Hospitality Management
CONVENTIONAL
TECHNOLOGY
Tourism Industry




      School of Hospitality Management
• Property Management Systems
• Airline Reservation Systems




    School of Hospitality Management
Property Management Systems
• Is a system application that gives
  automated information about a facility
  and directly relates to the front and
  back office operations in the
  establishment




    School of Hospitality Management
Property Management Systems
• This system connects and coordinates
  several modules in the establishment
    • Reservations
    • Rooms Management
    • Guest Accounting




    School of Hospitality Management
What does Property Management
Systems do?

 • Tracking of Availability of rooms /
   facilities
 • Tracking of guest information and
   reservation details
 • Guest consulting



    School of Hospitality Management
What does Property Management
Systems do?
 • Registration and check in facilitation
 • Guest Accounting services and
   balances
 • Housekeeping room status and
   services monitoring




    School of Hospitality Management
School of Hospitality Management

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Evaluating Technology

  • 1. Evaluating Technology in the Industry School of Hospitality Management
  • 2. 3 key questions • Does it provide a competitive advantage/s? • Does it improve productivity? • Does it enhance profit? School of Hospitality Management
  • 3. • Choosing the right technology for your organization is a key management process that can help the company move up in the industry School of Hospitality Management
  • 4. Does it Provide Competitive Advantage? • How can the technology give us an edge over our competitors? – Product Differentiation • Unparalleled Service • Market Segmentation School of Hospitality Management
  • 5. Does it Provide Competitive Advantage? – Cost Differentiation • Creation of product with lower cost • Creation of better product at the same cost School of Hospitality Management
  • 6. Product Differentiation • Unparalleled Service – Service that is present only in your organization that provides a distinct identity for the company in the industry • Specific Item Freebie / Unique Customer Service etc. School of Hospitality Management
  • 7. Product Differentiation • Market Segmentation – Is a marketing strategy in which there is a specific group in the market that is being “targeted” by the company’s core product or service – This “target” has at least a common characteristic present in all its members School of Hospitality Management
  • 8. Product Differentiation • Cost Advantage – Lower of Costs – The cost of producing the same product or level of service is lower than that of the competition. School of Hospitality Management
  • 9. Product Differentiation • Cost Advantage – Higher level Product for the Same Price – The level of the product is higher than that of the competitions, even if the price is the same School of Hospitality Management
  • 10. Does it increase productivity • How can the technology increase our productivity? – Workflow Processing • Task Sequencing • Space Management School of Hospitality Management
  • 11. Does it increase productivity • How can the technology increase our productivity? – Data Processing • Input – output time is minimized • Minimization of data handling • Streamlining the output School of Hospitality Management
  • 12. Does it enhance profit? • Does the use of technology produce rewards that outweigh the risks? School of Hospitality Management
  • 13. New Products in the Industry • E-commerce (electronic commerce or EC) – the buying and selling of goods and services on the Internet, especially the World Wide Web. School of Hospitality Management
  • 14. New Products in the Industry • This term and a newer term, e- business, are often used interchangably. • For online retail selling, the term e- tailing is sometimes used. School of Hospitality Management
  • 15. Division of E-Commerce • E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall" • The gathering and use of demographic data through Web contacts • Electronic Data Interchange (EDI), the business-to-business exchange of data School of Hospitality Management
  • 16. Division of E-Commerce • E-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters) • Business-to-business buying and selling • The security of business transactions School of Hospitality Management
  • 17. Forms of E-Commerce • Distribution Channels • Social Networking • Internet Marketing • Enterprise Systems School of Hospitality Management
  • 18. Electronic Distribution Channels • Provides communication linkage to the hotel to its potential guests through multiple exposure alternatives – Internet Booking – Booking websites – Global Distribution Systems School of Hospitality Management
  • 19. Agoda.Com School of Hospitality Management
  • 20. Asia Travel. Com School of Hospitality Management
  • 21. Global Distribution Systems School of Hospitality Management
  • 22. Social Networking • The use of Social Networking sites has been an alternative way of exposing the organization in a more “personal” approach, allowing management to reply to customer queries in a conversation type public forum setting School of Hospitality Management
  • 23. Internet Marketing • Online Ads • Site Banners • Free Selling Sites • Pop Ups • Collaborative Sites School of Hospitality Management
  • 24. Enterprise Systems • ES addresses the needs of Multi Property organizations by providing a central system accessible to the different establishments – This allows elimination of central and regional office operation costs as well as increasing efficiency in transfer of data School of Hospitality Management
  • 25. CONVENTIONAL TECHNOLOGY Tourism Industry School of Hospitality Management
  • 26. • Property Management Systems • Airline Reservation Systems School of Hospitality Management
  • 27. Property Management Systems • Is a system application that gives automated information about a facility and directly relates to the front and back office operations in the establishment School of Hospitality Management
  • 28. Property Management Systems • This system connects and coordinates several modules in the establishment • Reservations • Rooms Management • Guest Accounting School of Hospitality Management
  • 29. What does Property Management Systems do? • Tracking of Availability of rooms / facilities • Tracking of guest information and reservation details • Guest consulting School of Hospitality Management
  • 30. What does Property Management Systems do? • Registration and check in facilitation • Guest Accounting services and balances • Housekeeping room status and services monitoring School of Hospitality Management
  • 31. School of Hospitality Management