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Two Important Trends That Are Developing in the Hotel Industry

Essay by   •  May 12, 2011  •  Essay  •  1,343 Words (6 Pages)  •  3,394 Views

Essay Preview: Two Important Trends That Are Developing in the Hotel Industry

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Q A.

Ans: The hospitality industry overall is experiencing changing trends and specifically many changes are developing in the hotel industry. According to the case, the two major changes that are developing are as follows:

* Hotels are shifting from manual to electronic bookings and are focusing more on E-COMMERCE as they tend to increase their reservations available online.

* Secondly with more and more competition, the hotels are focusing more on programs with more outcomes (YEILD MANAGEMENT PROGRAMS) and increasing their customer services, as the social changes that have emerged in the industry requires more customized products.

Q B. Describe how interact Systems' AIS software products are to benefit the hotel industry from a profitability stand point.

Ans: Interactive systems are very beneficial to the hotel industry. While their impact is on a larger proportionate to other aspects then profitability, they indeed have an impact. The main core advantage that we look at here is the basic rule of thumb 'SAVE TIME, SAVE MONEY'. If we take a deep look, with interactive systems, we are ruling out complex processes, paper work, extra staff needed to perform all those activities etc. So by providing up to date technology and systems, we are increasing efficiency and cutting out cost to quite a high percentage.

Q C. Describe how interact Systems' AIS software is to help hotels improve customer satisfaction.

Ans: Customer satisfaction is the key to success in the hospitality industry. For hotels who wish to stand out in the market today, they rely heavily on the customer satisfaction. With this software up to date information is provided to the staff to deliver real time value to the customer. The social changes that have come out recently in the hospitality industry in the need for customization. Guests staying in the hotel are looking for more and more comfort and the customized feeling. For example, the RITZ hotel in London, provides its employees with a massive database, that even includes, which side of the bed a guests wakes up, so that his slippers are positioned in that place.

So tracking down customers and keeping their records, provides more retention and a huge marketing opportunity.

On a marketing perspective, frequent stay discounts, VIP programs, executive club membership and all the benefits to regular customers can be made through this software as more and more data can be gathered and provided to the staff.

In addition, the staff efficiency increases a lot. From in-room management to operations, efficiency increases overall. With the right technology provided to the staff, time is saved, and things are managed in a better way. I personally have worked with an AIS system at INTERCONTINENTAL HOTEL and have witness that more the 98% of the time is saved from the manual booking to the AIS software booking.

So generally, AIS is very beneficial for the industry and any hotel who wishes to succeed in today's world, has to adapt to this change.

Q D. Describe the life cycle stages that Interact Systems has progressed through to date.

Ans: Through to date, the firm has progressed through the following stages in the LIFE CYCLE:

* DEVELOPMENT STAGE

* STARTUP STAGE

* SURVIVAL STAGE

* RAPID GROWTH STAGE.

As we can see in the case how the firm managed its finances, we can take an idea that the firm has gone through the above mentioned stages. From starting up the idea, and investing $50,000 of the owners own saving plan and going through different design changes, then after a couple of years when the sales started to increase $200,000 was injected by private investors and then later, $1 million, was obtained through venture capital, and now we can see that the firm is finding more investments which shows that it is still in the rapid growth stage, with its sales going massive.

Q E. What types of venture financing have been obtained, or are being sought, by Interact?

Ans: There are multiple financing obtained by INTERACT and the following can be seen as which:

* SEED FINANCING

* STARTUP FINANCING

* FIRST

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