Technology Strategies for the Hospitality Industry© 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey E-Commerce Chapter 5

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Interview Jerry Reece Managing Director Travel and Transportation Practice Dimension Data What they do: Goal- Provide interaction method with customers across all available channels

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Interview (cont.) Technology consultants work alongside with the creative and strategic disciplines to architect solutions. Fragmented and intermediary nature of the hospitality industry made it a prime candidate for initiatives such as E- commerce.

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Interview (cont.) Keys to e-transformation success:  Plan  Understand client’s requirements  Design  Develop  Deploy  Conclude

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Introduction E-commerce: doing business over the Internet Now, just another way of doing business!

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Beginnings B2B vs. B2C Two very important technology trends:  Proliferation of wireless devices  XML (extensible markup language) Benefits to consumers  Lower prices  Higher availability Flexible pricing mechanisms  More frictionless, efficient, and worldwide market

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Overcoming Obstacles Geographic fragmentation High cost of information exchange  Ability to function as vertically or horizontally integrated virtual enterprises, while providing the benefits of economies of scale and specialization Excessive inventory and purchasing

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Catalysts for Adaptation Increasing experience with Web technologies Consolidation of industry standards Simplification of application technologies Increasing stickiness in B2B and B2C solutions Cost savings and revenue opportunities

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Other E-Commerce Business Models Advertising Auctioning E-markets

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey E-Commerce Technologies Servers  Web Server  High Traffic = Redundant Servers  Electronic Commerce Server Software Content Management and Performance  Content Management Software  Performance Monitoring Software Consumer and Business Tracking  Collaborative Filtering  Clickstream Tracking

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey E-Marketing Crawlers (Spiders) Directory (Human Powered) Paid Listings Meta-Tag: descriptions and Keywords Entire Web site scanned for relevant words and links to other web sites Paying

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Security Major Risks  Spoofing  Unauthorized Action  Unauthorized Disclosure  Data Alteration

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Security (cont.) Securing the Website  Server ID from a Certification Authority (CA) Message Security  Secure Sockets Layer (SSL) Authentication Message Privacy Message Integrity

Technology Strategies for the Hospitality Industry © 2005 Pearson Education, Inc Nyheim, McFadden, & Connolly Upper Saddle River, New Jersey Summary E-Commerce strategy and usage a “must have tool” Understand its relationship with technology, marketing, operations, customers, and security! Additional Resources: cyberatlas.internet.com