The Role of the Internet in Hotel IndustryYAHYA ABDULQADERMBA 645FALL 2014THE UNIVERSITY OF FINDLAY

Internet Channels Used in the Hotel Industry

Websites Official hotel websites• “Just about every hotel today has a website.”• The digital gateway to the hotels on the web.• “The website is at once the most important lead generator,

booking path, marketing apparatus and revenue manager available to the hotel owner or general manager.”

Internet Channels Used in the Hotel Industry

Websites Booking websites• “Reservations through third party internet booking companies

exploded in the early 2000's as the industry struggled with the effects of the September 11th downturn.”

• “Include online channels in your distribution plan, if you want to generate the highest possible revenues and increase occupancy rates.”

• “Paying commissions isn’t great, but empty rooms are worse.”

Internet Channels Used in the Hotel Industry

Social media websites

“Hotels and companies within the hospitality

industry must have a keen understanding of how to

deliver their messages via social media websites if

they are to compete in today's business

environment.”

Internet Channels Used in the Hotel Industry

Smartphone applications

“75 % of frequent business travelers (those

making at least five trips a year) are smartphone

owners. About half of frequent leisure travelers have

smartphones.”

The Role of the Internet in Hotel Marketing

As a marketing tool

Allows hotel to create a positive image.

Reach more potential customers / Wide regions at a lower price.

Offers buyers and sellers information/ gives clear details.

Example: PPC (Pay per Click) advertising campaigns (cost $1 per click,

Several hotel operators have cited returns of around 8:1 on average).

The Role of the Internet in Hotel Marketing

As a Booking/ Reservation Tool

The internet became a major distribution

channel for the hotel industry in 2002. Advantages:

Wide choices/ Immediate booking/ The availability of 24/7.

The Role of the Internet in Hotel Marketing

As a Booking/ Reservation ToolPercentage of survey respondents who use online services to make travel plansOnline travel agencies such as Travelocity, Orbitz and Expedia

34 %

Other Web sites 27 %Personal referrals 25 %Travel Company Web sites 19 %Traditional travel agents 9 % Calls to travel companies 7 %

The Role of the Internet in the Hotel’s Financial Side

Increase Hotel’s Revenues.

Enable new channels to offer hotel products and

services.

The ability to charge a deposit for the rooms prior

to check-in.

The ability to verify credit cards at the time of

booking.

The Role of the Internet in the Hotel’s Financial Side

Decrease Hotel’s Expenses.

Traditional methods of marketing, telephone lines,

faxes, and mail, holding press conferences, creating

workshops, travelling to attend exhibitions.

Reduce the need for human interaction/ employment.

The Role of the Internet in the Hotel’s Financial Side

Ease Customers’ Transactions.

Internet offers an automated payment methods

via credit cards, PayPal, and other payment means.

Today, Internet conducting all transactions.

The Role of the Internet in Customers Relationship

Facilitating communications with customers.

No need to dial hotel telephone number to get

information.

Browse website/ send an email/ chat.

The Role of the Internet in Customers Relationship

Customer’s reviews

Available in all hotels and booking sites.

Helping to take accurate decision.

Hotels’ customers and hoteliers must interact positively.

“Positive review can generate business, a negative assessment can just as

easily drive customers away.”

The Role of the Internet in Customers Relationship

Feedback surveys

Online surveys are much easier.

More Participants.

Hotels are receiving feedbacks faster.

References• Carr, B. (2014). How booking engines increase revenue and capture market share. Hotel

Executive.com. Retrieved from http://

hotelexecutive.com/business_review/2554/how-booking-engines-increase-revenue-and-ca

pture-market-share

• Horvat, J., Markovic, S., Katavic, S., & Mikrut, M. (n.d.) Using the World Wide Web in

hospitality industry. University of Osijek. Retrieved from

http://cuc.carnet.hr/cuc2001/papers/f9.pdf

• The impact of E-Commerce and social networking on the hotel industry. (2009). Pinnacle

Advisory Group. Retrieved from http://

www.pinnacle-advisory.com/impact-of-e-commerce-and-social-networking-on-the-hotel-ind

ustry.html

References• The impact of e-commerce on the hospitality industry. (n.d.). UK Essays.com. Retrieved

from http://www.ukessays.com/essays/ecommerce/the-impact-e-commerce-hospitality-industry.php

• The importance of online booking sites in a small property's distribution strategy. (2014).

Little Hotelier.com. Retrieved from http://www.littlehotelier.com/blog/online-booking-sites/

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from http://www.etourism.com.au/blog/the-importance-of-web-presence-in-hospitality-industry/155

• Murphy, J., Forrest, E., Wotring, E., & Brymer, R. (1996). Hotel management and marketing

on the Internet. Cornell University. Retrieved from http://www.cbpp.uaa.alaska.edu/afef/hotel_management.htm

References• Pilepić, L., Šimunić, M., & Car, T. (n.d.). Online hotel's sales strategies with emphases on

web booking. University of Rijeka. Retrieved from http://www.aabri.com/NO2013Manuscripts/NO13037.pdf

• Rodrigues, J. (2010). The importance of an effective hotel website. Hospitality & Catering

News.com. Retrieved from http://www.hospitalityandcateringnews.com/2010/07/the-importance-of-an-effective-hotel-website/

• Saracut, F. (20120. Mobile apps for hotels, the hospitality industry benefits from smartphone

market growth. Mobiversal.com. Retrieved from http://blog.mobiversal.com/mobile-apps-for-hotels.html

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http://smallbusiness.chron.com/social-media-hospitality-industry-37599.html