Distribution Channel Efficiency in the Hospitality Industry

distribution lineage energy in the Hospitality IndustryAdvances in engineering combined with its more mature procedure argon gener entirelyy assumed to be a good tr cobblers last for the global expanding upon of trade and commerce. Technological advances ar ordinarily believed to quicken the globalization process with modify economic growth and telephone line profit baron is consequently assumed to be the beneficial results. Globalization and the routine of improved applied science add-on the potence for increasing efficacy as the electronic and digital transfer of development and financial proceeding center that guests green goddess be gained on a global, regional, or subject direct. exchange equal to(p) most other industries or economic sectors, the cordial reception and tourism industries engage been affected by the intake of and improvements in engineering in fresh years. Hospitality as will be argued, is an industry like some(prenominal) other that e mpennage potentially increase its distribution channel efficiency by means of more widespread or more effective engagement of technology. Traditionally the use of technology was confined to improvements in the mode of ecstasy acquirable to excursionlers. Hotels and places of cordial reception progress to been strategically placed for the derive of fitlers. For compositors case the developing of trains, cars, ships, and planes all helped to expand the tourism and cordial reception industries as heap found it easier, quicker, and more cost-effective to plump further distances. However, it is the use of technology much(prenominal) as television advertising, personal and business calculating machines, and the net income that arguably has the potential to increase the distribution channel efficiency in hospitality. For the habit of this essay it would be sensible to remember that the hospitality industry deals with two main types of customer, touring cars or holiday - sufficers alongside business travellers. Whatever motivates good deal to travel is non as big as the chemical elements that makes pick a place to stay and possibly tempts them to stay in that respect again and again. As will be discussed the use of technology is non the sole factor in distribution channel efficiency in the hospitality industry, even it stinker be the decisive factor.To begin with the hospitality industry has everlastingly been reliant upon the transport infrastructure available at every disposed(p) era, the less developed that infrastructure the less likely tidy sum are willing to travel great distances or so often. Prior to the attack of improvements in transport and communications technology during the 19th century there were little pressures for the hospitality industry to cede Distribution television channel qualification. abject roads and sail powered ships meant that most travellers only went short distances. lone(prenominal) the very wea lthy could bear the time and the expense of travelling widely. extravagance hotels existed in small numbers to cater for their needs. More generally hospitality was confined to small hotels and inns, often located on main roads. Without the development of the railship canal, steam powered ships, and later the car, the modern hospitality industry would not cast evolved. The railways make short shocks and day trips affordable for the masses, whilst steam ships cut the sea voyages from weeks to days (Cooper, Fletcher et al, 1998 p. 395). Transport cost are bland a vital consideration for the hospitality industry to consider. For instance the greater handiness of charter flights made package holidays more affordable from the 1960s (Vellas Becherel, 1995, p.79). For instance, for a time after the 9/11 attacks higher insurance costs as well as safety concerns reduced the number of travellers (Higley, 2004). The refinement of newspaper sales combined with the invention of the tele gram and the telephone made international and national communications quicker and more effective. Such developments meant that hospitality was able to develop marketing and advertising strategies on a national and sometimes an international basis. The need for Distribution Channel Efficiency in hospitality developed in conjunction with the expanded opportunities that resulted from upward(a) technology (Cooper et al, 1998, p.424). Income levels also piss an impact upon the hospitality industry people who arousenot afford to travel will not be effected by Distribution Channel Efficiency (Vellas Becherel, 1995, p.91).The appropriate use of modern information technology equipment nates certainly help improve Distribution Channel Efficiency in hospitality although it does not guarantee commercial success. undivided travellers and hotels can use computers bodys and databases to make travel and accommodation arrangements with increasing ease (Outhart, Taylor et al, 2000 p. 16). The use of automated engagement and payment arrangements means that customers no longer live to make travel and accommodation arrangements in person or via correspondence. As long as hotels are linked to national and international databases and net income pull up stakesicipations can be made at any travel agency, booking office and even online. The automation of the payment process began once the use of credit cards became more widespread, especially in North America, lacquer and Western Europe. Credit cards, debit cards, and the use of automated credit transfers bring home the baconed transactions to take place anywhere in the world at any time of day. Travel agencies, transport companies, and hotels have developed booking systems that allow tourists and business travellers to arrange their travel and accommodation more effectively (Killingworth-Baird and Carter, 1996 p. 12). The refinement of automated payment systems has had the greatest impact on hotel reservations, with ho tels and booking agencies development computer databases to turn in the level of vacancies and reservations at every hotel within a local area network or now across the globe. As with other areas of commerce the efficiency and speed of those systems has improved markedly with rendering of profit technology (www.gcis.ca).It was developments in the United States that led to the modernisation and involution of hospitality industry through the invention of computer reservation systems. The computer reservation systems are usually referred to as global distribution system or GDS. The most widely used GDS systems are Sabre, Galileo, Amadeus, and Worldspan. Once compatibility problems were decided these systems have proved invaluable for the global hospitality industry. For travellers the main benefit of GDS is that it gives them the ability to make their arrangements in advance, offer ups a good level of customer service and it means that holidays or business trips are efficiently p lanned. For the move of the hospitality industry that have fully automated bookings and payment procedures the ability to make bookings in advance is a great help for the effect of Distribution Channel Efficiency. The companies that pioneered GDS such as Thomson used it to expand promptly (Outhart, Taylor et al, 2000 p. 16). The taking of advanced bookings means that hotels can budget for a cognise amount of income coming in at any given time and set staffing levels accordingly. Hotels have more time to attract more visitors if they know that the hotel will have a higher number of vacancies and therefore declare discounted stays at short notice to hire out as many dwells as possible. Logically the more accurate information that hotels have about the number of bookings already made and the amount of bookings still available then they can make caseable arrangements for extra marketing, discounted room hire and the holding of special events. The development of GDS when combined with the increase in charter flights and package holidays meant the rapid growth of the hospitality industry on a greater scale and fashionable new destinations such as Benidorm in Spain (Outhart, Taylor et al, 2000 p. 149).The hospitality industry had already began to make use of improved Distribution Channel Efficiency in the first place the meshwork became widely available and dramatically altered the prospects for commerce and marketing. For the hospitality industry the use of the internet has made it possible for hotels to advertise their vacancies and their locations on a global basis. Individual hotels and international hotel chains were quick to realise how the internet could increase the chances of improving Distribution Channel Efficiency through the effective use of technology. The internet allows the opportunity for hotels to advertise and make bookings online, as well as gaining bookings through travel agents as well as being in brochures and tourist information offi ces. Many customers now prefer to make their own travel and accommodation arrangements online so the hotels have their own websites or can be book through other websites have a stronger opportunity to increase their sales compared to those hotels that cannot be booked online. The internet provides the chance to book hotel populate as customers can view what the hotel is like without going there in person. Customers can learn about a hotels precise location, transport cerebrate to the hotel, and the closeness of tourist attractions or important business sites that could be nearby (www.gcis.ca). The internet is also a great media for showing other features of the hospitality and leisure facilities available at hotels. For instance, hotels no longer just provide somewhere to sleep and eat. Facilities, which can be attractive to customers, include gyms, smooth pools, bars, and restaurants. Customers expectations of what hotels should provide them with have also altered due to change s in technology. Whereas travellers would have once been happy with a bed, tea- making facilities with en-suite bathroom, now they would like televisions, miniskirt bars and phone sockets so they can access the internet via their laptops (Outhart, Taylor et al, 2000 p. 17).For vauntingly hotels and hotel chains the hospitality they provide has certainly changed for the reasons mentioned above. Hotels are no longer about having a bed for the night they are about having an pleasant experience, which means the customer will wish to use the hotel company again. It could be argued that providing such run and facilities make the hospitality industry more costly to run, even so such expenditure could be justified if hotels are able to increase the number of happy guests and keep the loyalty of their customers. The Distribution Channel Efficiency of technology will, if used effectively, prove more profitable to the companies that are prepared to implement changes as soon as they beco me possible. retentiveness pace with technological changes allows hotels and other hospitality providers to improve and maintain their standards of customer service. Hotels are not able to provide their guests and customers with a higher level of service when it comes to providing information about travel and the leisure activities available at the hotel itself or within the surrounding areas of it. It is possible if the hotel or hospitality provider is linked with travel and leisure companies that customers can arrange to pay for all other services not provided by the hotel when they make their hotel bookings. Smaller hotels and hospitality providers index not be able to fit in all the services provided by a larger or chain of hotels, yet they can still provide their customers with a higher level service than they did before the internet became widely available (Higley, 2004).Improvements in technology do not automatically equate to a better Distribution Channel Efficiency for h otels and other hospitality providers. There are certainly actual and potential drawbacks to the greater use of technology within the hospitality industry. Staff and managers have to have enough instruct to use new technology properly, whilst not all customers may be able to use new technology and will need to make their hospitality arrangements by more tralatitious means such as going to a travel agent, booking by telephone, or even by letter. For smaller companies and hospitality providers it might not be cost effective to use every mend of new technology as their income and resources would not be increase by as much as the cost of upgrading their equipment. Smaller hospitality providers have tended to avoid such drawbacks by forming links with the larger companies such as Thomson. The use of GDS suits small operators as the larger companies fill up their rooms, whilst the arrangements suit the large companies as it increases the number of bookings from customers that they can meet (Outhart, Taylor et al, 2000 p. 16). For smaller hospitality providers there is another potential drawback that new technology becomes obsolete in any case frequently. Once again strong links with the larger tour operators can mean that even with sometime(a) technology that the smaller hospitality providers can still stay connected to global databases or booking systems such as GDS. It also means that the efficiency of the payments they send and receive is increased (www.gcis.ca).Another drawback that could provide problems for the hospitality industry when it is seeking Distribution Channel Efficiency is that when tour operators and smaller hospitality providers are so fussy meeting current demands that they do not plan adequately for the expansion or contraction of tourist destinations. When growth levels in certain resorts are very strong hospitality providers have found it difficult to match demand with actual capacity. tourism booms that in some holiday resorts may se em destined to last for a long period yet such resorts are prey to the changing tastes or budgets of tourists. Unplanned or too rapid an expansion of holiday resorts could lead to the areas becoming high-risk and burdened with declining popularity and profits. Experience has shown that the decline of popularity in some holiday resorts can be as rapid as previously high levels of tourists staying. mayhap the classic example of a tourist resort expanding rapidly and perfectly declining in popularity is Benidorm. For the best part of two decades the demand for bookings was barely met as new hotel construction only just stayed ahead of demand. Rapid expansion had spoilt the original character and attractiveness of the area for tourists and the level of hospitality provided varied greatly across the resort. The popularity of Benidorm fell sharply at the end of the 1980s with bookings down by a third. Expansion is never non-finite and the consistent adoption of technology to Distributi on Channel Efficiency cannot make people go to certain destinations (Outhart, Taylor et al, 2000 p. 149). The popularity of hospitality providers and holiday resorts can be affected by factors outside of their control such as distressing weather, changes in tastes and income, or especially relevant after the 9/11 attacks on the United States by security concerns. Regional conflicts can have detrimental affects on tourism and hospitality as people are unwilling to travel near war zones (Outhart, Taylor et al, 2000 p. 196). American hotels frequently responded to the downswing in business after 9/11 by shelving or reducing company training programmes which arguably affected efficiency and certainly lowered customer services standards. To some extent the availability of online training has addressed some of those training needs (Higley, 2004).To some extent the Internet provides an alternative way of making hotel and travel arrangements. People that use the Internet are in a position to make their own plans, as they are able to bypass travel agents and make bookings directly from travel and hospitality providers themselves. People that want to arrange things independently of other people are using the technology developed by the hospitality providers to do so. The main alternative to the evolving electronic booking and payments systems would be to use older less efficient offline versions although they would still work they would not be as fast or as accurate (www.gcis.ca).Therefore the use of technology can greatly assist the Distribution Channel Efficiency of the hospitality industry. However technology alone does not make or break hospitality operators. A combination of information technology, plus advances in transport, changes in consumer tastes, and effective marketing can make all the difference amid success and failure. Technological advances since the 1960s have radically altered the ways in which hospitality is provided, booked, and paid for. The expa nsion of charter flights and the development of GDS allowed large international travel and hospitality companies like Thomson to flourish and to form links with hotels, airlines, and other transport providers to offer complete travel packages that could be booked and paid for at the same time. Perhaps the most single important technological advance that affects Distribution Channel Efficiency in the hospitality industry is the Internet. On the Internet customers can make their own travel and accommodation arrangements by assessing operators deals and taking advantage of the payment and GDS that are part of websites and hospitality networks.BibliographyCooper C, Fletcher J, Gilbert D, Wanhill S, (1998) Tourism Principles and Practice, 2nd edition, Longman, London and new-made YorkHigley J, Hoteliers need to rediscover training benefits, Hotel Motel Management Sep. 6 2004Outhart T, Taylor L, Barker R, Marvell A, (2000) modernistic Vocational Travel and Tourism, Collins, LondonTh e General Center for Internet work Inc, The Internet has greatly helped to increase the efficiency of transactions, July 15, 2002 from www.gcis.caVellas F Becherel L, (1995) International Tourism An Economic Perspective, MacMillan Business, Basingstoke