This document discusses evaluating technology in the hospitality industry. It identifies 3 key questions to consider: does the technology provide a competitive advantage, improve productivity, and enhance profit? It then examines how technologies like e-commerce, social media, internet marketing, and enterprise systems can help businesses in these areas. Specifically, it explores how technologies can enable product differentiation, cost advantages, increased workflow and data processing efficiency. Lastly, it overview's conventional technologies like property management systems and airline reservation systems that have automated operations in the hospitality and tourism sectors.

1. Evaluating
Technology in
the Industry
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2. 3 key questions
• Does it provide a competitive
advantage/s?
• Does it improve productivity?
• Does it enhance profit?
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3. • Choosing the right technology for your
organization is a key management process
that can help the company move up in the
industry
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4. Does it Provide Competitive Advantage?
• How can the technology give us an edge
over our competitors?
– Product Differentiation
• Unparalleled Service
• Market Segmentation
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5. Does it Provide Competitive Advantage?
– Cost Differentiation
• Creation of product with lower cost
• Creation of better product at the same cost
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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.
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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
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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.
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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
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10. Does it increase productivity
• How can the technology increase our
productivity?
– Workflow Processing
• Task Sequencing
• Space Management
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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
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12. Does it enhance profit?
• Does the use of technology produce
rewards that outweigh the risks?
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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.
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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.
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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
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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
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17. Forms of E-Commerce
• Distribution Channels
• Social Networking
• Internet Marketing
• Enterprise Systems
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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
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19. Agoda.Com
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20. Asia Travel. Com
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21. Global Distribution Systems
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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
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23. Internet Marketing
• Online Ads
• Site Banners
• Free Selling Sites
• Pop Ups
• Collaborative Sites
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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
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25. CONVENTIONAL
TECHNOLOGY
Tourism Industry
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26. • Property Management Systems
• Airline Reservation Systems
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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
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28. Property Management Systems
• This system connects and coordinates
several modules in the establishment
• Reservations
• Rooms Management
• Guest Accounting
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29. What does Property Management
Systems do?
• Tracking of Availability of rooms /
facilities
• Tracking of guest information and
reservation details
• Guest consulting
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30. What does Property Management
Systems do?
• Registration and check in facilitation
• Guest Accounting services and
balances
• Housekeeping room status and
services monitoring
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31. School of Hospitality Management