E-Commerce Impact on the Hotel Industry

This assignment delves into the significant influence of e-commerce on the hotel industry. It examines how hotels utilize e-commerce platforms for efficient procurement of daily essentials and supplies. The study further analyzes the role of social media, particularly platforms like Facebook and TripAdvisor, in shaping customer perceptions, reviews, and ultimately, the profitability of hotels.

HOSPITALITY
PROVISIONS

Table of Contents
INTRODUCTION......................................................................................................................3
1. Ritz-Carlton............................................................................................................................3
2. EVALUATION OF WEBSITE OF RITZ CARLTON..........................................................4
3. FUNCTIONALITY OF SECURITY SYSTEMS IN HOTEL...............................................4
4a) INCLUSION OF SUPPLIERS AND CUSTOMERS IN AN HOTEL'S EXTRANET.......5
4b) INTRANET WITHIN AN ORGANISATION....................................................................6
5. SOCIAL MEDIA...................................................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
The growth of e-commerce has great impact on the hospitality marketing services.
Many online websites and portals let customers to explore and buy hospitality services. In
present scenario, travellers believe more on travelling applications and websites to research
and compare prices of various hotels. As a result, social media like TripAdvisor and many
websites are actively participating to deliver services and to reach to customers across the
world. In the context of this, with the help of Ritz-Carlton (hotel industry) understanding the
concept of hospitality provisions.
1. RITZ-CARLTON
1a) The Ritz-Carlton is one of the most luxurious UK-based hotel. In the context of this,
hospitality provisions will be discussed.
1b) These are some websites Ritz-Carlton used to purchase food items, staff uniforms,
furnitures and equipments and conference facilities
 www.specialevents.com
 www.creditcards.chase.com
 www.calrecycle.ca.gov
 www.manta.com
 www.i-chef.biz.com
 www.hotel-buyer-store.co.uk
 www.alaskaqatar.com
 www.thepackagingconference.com
1c) Ritz Carlton purchase its various stocks like food and beverages, staff-member's
uniform,hotel amenities, kitchen and bathroom equipments through these UK-based websites
which are stated below :
 www.specialevents.com provide the services of hotel catering and expertise tips on
selecting staff uniforms.
 www.creditcards.chase.com provide ATM facilities to its customers and give extra
bonus points.

 www.calrecycle.ca.gov is used reduce waste by establish various recycling programs.
By using recycled products Ritz Carlton saved $45,000 in a year.
 www.manta.com pride security surveillance to the hotel industry.
 www.i-chef.biz.com are supplying frozen meat and fish in many parts of UK. It also
supply bakery items to many hotels.
 www.hotel-buyer-store.co.uk and offers. supply furniture and bathroom appliances to
the hotel industry.
 www.alaskaqatar.com rendering laundry services, environmental technology
delivering cleaning and floor maintenance equipments to hotels.
 www.thepackagingconference.com provide latest information on technology
packaging supply chain of UK. It conduct various conferences in hotels.
2. EVALUATION OF WEBSITE OF RITZ CARLTON
RitzCarlton.com is most user friendly and insightful website that brings an innovative
experience to the customers. It contains user-generated content which is the most dynamic in
nature, give a personalized experience to its visitors. Transparency is key element of website
that brings an immense online experience and trust to the people. It allows its visitors to
book vacation packages and spontaneous trips without looking other websites(Harrington and
et. al., 2014). Many new feature are innovated on the homepage of site like 'Ritz Carlton
Memories'. A display of photos in the form of slide show being posted by visitors. Users see
authenticity in highlighted user generated content rather than brand created designs. This
increases the the value of hotel. The website have nearly 3000 pages of informations and
videos. Moreover, display of hotels and rooms also avail visitors to book their rooms
according to their desire. Ritz Carlton is also availing category-wise search system facility
such as mountain resorts, family resort, golf , ski and honeymoon resorts to its users. The
website allow its users to explore the brand through several pathways and links. But
sometimes it may happen that its past users find several differences in information and
facilities shown in its website(Tesone, 2012).
3. FUNCTIONALITY OF SECURITY SYSTEMS IN HOTEL
There should be many security systems available in the hotel such as every floor
should have minimum 3-4 firewalls according to hotel structure, various virus checking
security systems, modern recording cameras in lobby, backup mediums and electronic

payment methods. Ritz-Carlton provide its guest with high standard of security. Abus video
surveillance system provide high degree of security. It covers all important public areas such
as, lobby, banqueting area, emergency exits and garage area. As well as modern IP cameras
and HDVRs needed for both internal and external purpose. Moreover, hotels should also have
Vehicle inspection system to identify the entering of vehicles into parking area. Ritz-Carlton
is using Manta Under Vehicle Inspection Units to scan the objects attached to the underside
of vehicles. It is also necessary to backup all important data of hotel. In case, if computer
crashes or system get corrupted, hard-drive failures and theft, so data backups are last line of
defence technique to recover lost data. If data is not backed up then the organisation may
loose its intensity and position in business(Khan, 2012). So, Ritz-Carlton is required to
choose right data backup technique. Data backups is essential as it consists of all records of
room availability, guest contact details including contact number and address. In case of
emergency and system outage, it become easy for hotel staff to recover all data storage
immediately. Backups can be done in the form of recordable CDs, magnetic tapes, virtual
machines,hard-disks and tapes. There are number of back up mediums like snapshotting,
LAN-free backups, online backups, cables and phone networks are available at different
levels of security to access to important information and data for hotel security. Moreover,
there are different types of electronic payment systems are available like VISA, MasterCard,
Maestro, Delta, Debit schemes, electronic wallets such as QIWI, Webmoney, PayPal, Paxum
etc. Electronic payment system has increased speed of functionality of organisation, security
level in the hotel and also reduced the risk of abuse or theft( Chon and et. al. 2013).
4A) INCLUSION OF SUPPLIERS AND CUSTOMERS IN AN HOTEL'S
EXTRANET
Extra-net is organisation's private portal that allows access to its stakeholders,
suppliers, customers, vendors and other business associates to securely access the
informations or operations from an organisation. Ritz-Carlton have distributed range of
activities such as event planning, transportation, lodging and restaurants facilities. So there
should be wide range of network among its suppliers and customers. Ritz-Carlton suppliers
may include food and beverage contractors and suppliers, furniture suppliers, Hospitality
consultants, In-room suppliers, kitchen equipments, room technologies, Banks and finance
etc. Its customers may be event managers, individual customers, corporate clients and trip
packaging firms( Enz, 2009). Extra net enables it to communicate and collaborate with its
vendors and customers efficiently. Moreover it also enhance the business relationships among

them. Ritz-Carlton has excellent extra-net systems likely whenever any event (like weddings,
corporate meetings or occasional functions) is planned in hotel customers directly
communicate to its supplier via hotel's portal or extra-net and hotel manager immediately
avail all facilities, goods and services to the hotel as soon as possible(Kotler and et. al.,
2016).
4B) INTRANET WITHIN AN ORGANISATION
Intranet is private network of an organisation accessible only to its members,
employees and other staff. Its an internal system of the organisation so that it would not be
available to public. Intranet is successively used in Ritz-Carlton with the installation of
wireless networks and LAN (Local Area Networks). Intranet make accessible to all
confidential information, knowledge, feedbacks, experience, events within an industry's
network. Many hotels and restaurants of Ritz-Carlton have Intranet facilities to share their
experiences, various business strategies, innovative ideas and access to confidential data (
Wearne and Morrison, 2013). It allows the hotel to improve its hospitality services by sharing
updated customer relationship management techniques, strategies, bring-forth competitive
management tactics and improve corporate communications. Moreover, they also emphasize
on the customer's feedbacks and reviews to improve the quality of goods and services.
Intranet has changed its business strategy as it enhance the performance and profitability of
the hotel. It also increase the knowledge distribution process within the industry among hotel
staff and top management (Cummings and et. al., 2013).
5. SOCIAL MEDIA
Social media is internet based tool or platform where people are allowed to share and
exchange text, data, ideas, interests and pictures/videos. It depends on web-based
technologies to create interactive platforms. There are various mediums of social media such
as, Facebook, twitter, LinkedIn, Google, Trip Advisor and many more. Many hospitality
industries like Ritz-Carlton promoting and advertising its services via social media channels
so that it can build its customer loyalty. Moreover they also use social media to upgrade and
personalize customer services. It is also using twitter to get feedbacks and comments about
services rendered to its customers. It develop and grow the impact of abundance of customer
reviews Social media is also reaching to global audience and rural areas of the world with
easy accessibility in less span of time( Okemos, 2013). Facebook is the easiest way to
communicate with people worldwide as companies and hotel industries and firms to make
their public page on Facebook to directly access to its users. Facebook has many features like

it allow to insert pictures and videos so that people can make positive and negative reviews.
Trip Advisor is continuously increasing the expectations and experiences of customers. In
case of Ritz-Carlton, Trip Advisor has huge impact on the profitability of the hotel as it give
easy access to users to make comments and give reviews on the hotel services and facilities.
Large number of tourist approach this hotel via Trip Advisor. So social media has great
impact on the growth and productivity of the hotel (Alton, 2015.).
CONCLUSION
It can be concluded from the study that hotel industry is utilizing e-commerce in very
effective manner for procurement purposes. Daily essential commodities and necessities of
hotels are purchased through many websites and apps.

REFERENCES
Books and Journals
Chon, S.K., and et. al. 2013. Hospitality Management Education. Routledge.
Cummings, R. P., and et. al., 2013. The Role of the Hospitality Industry in the Lives of
Individuals and Families. Routledge.
Enz, A. C., 2009. Hospitality Strategic Management: Concepts and Cases. John Wiley and
Sons
Harrington, J.R. and et. al., 2014. Strategic management research in hospitality and tourism:
past, present and future. 26( 5). pp.778 – 808.
Kotler, T. P. and et. al., 2016, Marketing for Hospitality and Tourism. 7th ed. Pearson
Education, Limited.
Okumus, F., 2013. Facilitating knowledge management through information technology in
hospitality organizations. Journal of Hospitality and Tourism Technology. 4(1). pp.64
- 80
Tesone, V.D., 2012. Principles of Management for the Hospitality Industry. Routledge.
Wearne, N. and Morrison A., 2013. Hospitality Marketing. Routledge.
Online
Alton, L., 2015. The Growth of E-Commerce and Hospitality Marketing. [Online]. Available
through : <https://www.smartling.com/blog/hospitality-marketing> . Accessed on
[ 10 March, 2016 ].
Khan, A. M., 2012. Journal of Business and Hotel Management. [Online]. Available
through : < http://www.scitechnol.com/social-medias-influence-on-hospitality-
3MQb.php?article_id=218 > Accessed on [ 10 March, 2016 ].