Thursday, October 7, 2010

Definition and Benefits

ICT (information and communications technology - or technologies) is an umbrella term that includes any communication device or application, encompassing: radio, television, cellular phones, computer and network hardware and software, satellite systems and so on, as well as the various services and applications associated with them, such as videoconferencing and distance learning.

According to the European Commission, the importance of ICTs lies less in the technology itself than in its ability to create greater access to information and communication in underserved populations. Many countries around the world have established organizations for the promotion of ICTs, because it is feared that unless less technologically advanced areas have a chance to catch up, the increasing technological advances in developed nations will only serve to exacerbate the already-existing economic gap between technological "have" and "have not" areas.

Major Benefits of Computer Reservation System are operational efficiencies and staff reductions.
Braham (1988) briefly outlined the processes, functionalities, and benefits of a CRS as follows:
  • Flexible inventory booking capability
  • Immediate availability update
  • Overbooking management
  • Complete and detail reservations screen
  • Individual and group reservations and blockings
  • Travel agency information entry, activity reports and commission handling
  • Guest information enquiry
  • Reservations linked to city ledger
  • Advance deposit posting and auditing
  • Request for deposit and deposit received
  • Modifications and cancellation confirmations
  • Free-form comments field on all reservations
  • System generated confirmation numbers on all reservations
  • User identification
  • Confirmations printed automatically or on demand
  • Forecast reports
  • Current and future dates to five years historical information
  • Detailed inventory control
  • No-shows reports and handling (charging and billing)
  • Customer information- past, present, future- retained in system.
The primary reason for using computers in the handling of reservations is to increase yield metrics, but this entirely depends on the level of systems integration (Sigala et al., 2001). CRS not only help tremendously in processing reservations, but also supports decision-making in marketing and sales (eg. Yield management, discount policies, the creation of guest records etc.)
(http://hotelmule.com/hospitality_travel_wiki/index.php?doc-view-182)

Thus, with so many benefits, there is an increasing use of CRS for inventory management by airlines, hotels, and other tourism and hospitality enterprises. There are also many different online booking websites to compare prices.

e-Commerce has also helped in the growth of tourism industry. Through e-Commerce, the websites can be designed to meet consumer needs by closely monitoring the consumer online booking habits and their search behaviour through market research. Thus, it is more convenient and easier to book their air tickets, hotel rooms online.

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