1. The Role of the Internet
in Hotel Industry
YAHYA ABDULQADER
MBA 645
FALL 2014
THE UNIVERSITY OF FINDLAY

2. Internet Channels Used in the Hotel Industry
 Websites
 Official hotel websites
• “Just about every hotel today has a website.”
• The digital gateway to the hotels on the web.
• “The website is at once the most important lead generator, booking
path, marketing apparatus and revenue manager available to the hotel
owner or general manager.”

3. Internet Channels Used in the Hotel Industry
 Websites
 Booking websites
• “Reservations through third party internet booking companies exploded
in the early 2000's as the industry struggled with the effects of the
September 11th downturn.”
• “Include online channels in your distribution plan, if you want to
generate the highest possible revenues and increase occupancy rates.”
• “Paying commissions isn’t great, but empty rooms are worse.”

4. Internet Channels Used in the Hotel Industry
 Social media websites
 “Hotels and companies within the hospitality industry must
have a keen understanding of how to deliver their messages via
social media websites if they are to compete in today's business
environment.”

5. Internet Channels Used in the Hotel Industry
 Smartphone applications
 “75 % of frequent business travelers (those making at least five
trips a year) are smartphone owners. About half of frequent leisure
travelers have smartphones.”

6. The Role of the Internet in Hotel Marketing
 As a marketing tool
 Allows hotel to create a positive image.
 Reach more potential customers /Wide regions at a lower price.
 Offers buyers and sellers information/ gives clear details.
 Example: PPC (Pay per Click) advertising campaigns (cost $1 per click, Several hotel
operators have cited returns of around 8:1 on average).

7. The Role of the Internet in Hotel Marketing
 As a Booking/ ReservationTool
 The internet became a major distribution channel for the hotel
industry in 2002.
 Advantages:
Wide choices/ Immediate booking/ The availability of 24/7.

8. The Role of the Internet in Hotel Marketing
 As a Booking/ ReservationTool
Percentage of survey respondents who use online services to make travel plans
Online travel agencies such asTravelocity, Orbitz and Expedia 34 %
Other Web sites 27 %
Personal referrals 25 %
Travel CompanyWeb sites 19 %
Traditional travel agents 9 %
Calls to travel companies 7 %

9. The Role of the Internet in the Hotel’s Financial Side
 Increase Hotel’s Revenues.
 Enable new channels to offer hotel products and services.
 The ability to charge a deposit for the rooms prior to check-in.
 The ability to verify credit cards at the time of booking.

10. The Role of the Internet in the Hotel’s Financial Side
 Decrease Hotel’s Expenses.
 Traditional methods of marketing, telephone lines, faxes, and
mail, holding press conferences, creating workshops, travelling to
attend exhibitions.
 Reduce the need for human interaction/ employment.

11. The Role of the Internet in the Hotel’s Financial Side
 Ease Customers’Transactions.
 Internet offers an automated payment methods via credit cards,
PayPal, and other payment means.
 Today, Internet conducting all transactions.

12. The Role of the Internet in Customers Relationship
 Facilitating communications with customers.
 No need to dial hotel telephone number to get information.
 Browse website/ send an email/ chat.

13. The Role of the Internet in Customers Relationship
 Customer’s reviews
 Available in all hotels and booking sites.
 Helping to take accurate decision.
 Hotels’ customers and hoteliers must interact positively.
“Positive review can generate business, a negative assessment can just as easily drive
customers away.”

14. The Role of the Internet in Customers Relationship
 Feedback surveys
 Online surveys are much easier.
 More Participants.
 Hotels are receiving feedbacks faster.

15. References
• Carr, B. (2014). How booking engines increase revenue and capture market share. Hotel
Executive.com. Retrieved from http://hotelexecutive.com/business_review/2554/how-booking-engines-
increase-revenue-and-capture-market-share
• Horvat, J., Markovic, S., Katavic, S., & Mikrut, M. (n.d.) Using the World Wide Web in
hospitality industry. University of Osijek. Retrieved from http://cuc.carnet.hr/cuc2001/papers/f9.pdf
• The impact of E-Commerce and social networking on the hotel industry. (2009). Pinnacle
Advisory Group. Retrieved from http://www.pinnacle-advisory.com/impact-of-e-commerce-and-social-
networking-on-the-hotel-industry.html

16. References
• The impact of e-commerce on the hospitality industry. (n.d.). UK Essays.com. Retrieved
from http://www.ukessays.com/essays/ecommerce/the-impact-e-commerce-hospitality-
industry.php
• The importance of online booking sites in a small property's distribution strategy. (2014).
Little Hotelier.com. Retrieved from http://www.littlehotelier.com/blog/online-booking-sites/
• The importance of web presence in hospitality industry. (2011). eTourism.com. Retrieved
from http://www.etourism.com.au/blog/the-importance-of-web-presence-in-hospitality-
industry/155
• Murphy, J., Forrest, E., Wotring, E., & Brymer, R. (1996). Hotel management and marketing
on the Internet. Cornell University. Retrieved from
http://www.cbpp.uaa.alaska.edu/afef/hotel_management.htm

17. References
• Pilepić, L., Šimunić, M., & Car, T. (n.d.). Online hotel's sales strategies with emphases on
web booking. University of Rijeka. Retrieved from
http://www.aabri.com/NO2013Manuscripts/NO13037.pdf
• Rodrigues, J. (2010). The importance of an effective hotel website. Hospitality & Catering
News.com. Retrieved from http://www.hospitalityandcateringnews.com/2010/07/the-importance-of-an-
effective-hotel-website/
• Saracut, F. (20120. Mobile apps for hotels, the hospitality industry benefits from smartphone
market growth. Mobiversal.com. Retrieved from http://blog.mobiversal.com/mobile-apps-for-
hotels.html
• Social media & the hospitality industry. (2014). Small Business Chron.com. Retrieved from
http://smallbusiness.chron.com/social-media-hospitality-industry-37599.html