CLOUD COMPUTING IN HOSPITALITY INDUSTRY

Cloud computing Applications in Tourism and Hospitality Industry

Cloud computing Applications in Tourism and Hospitality Industry

Introduction

Developments in ITs revolutionize both economies and enterprises. ITs are defined as the 'collective term given to the most recent developments in the mode (electronic) and the mechanisms computers and communication technologies) used for the acquisition, processing analysis, storage, retrieval, dissemination and application of information'.' At the macroeconomic level, ITs become instrumental in the development and prosperity of regions, as they determine their competitiveness in the global marketplace.

At the microeconomic level, ITs permeate all functions of strategic and operational management and impel the competitiveness of enterprises (Hoffman 2001). The enhancements in ITs' processing power in the last decade have revolutionized their capabilities as they constantly increase cloud computing speed; decrease equipment size; reduce hardware and software costs; and improve the reliability, compatibility and interconnectivity of numerous terminals and applications.

A great degree of innovation is incorporated in hardware, software and network developments, whilst intellect becomes a critical asset in ITs' management. Paradoxically, the more powerful and complicated ITs become, the more user-friendly and inexpensive they are, enabling more people and organizations to take advantage. Hence, Hopper 2 proposes that 'in the not-so-distant future, computers will be as familiar a part of the business environment as telephones are today. They will also be as simple to use as telephones or at least nearly so'. The emergent information society and the knowledge-based economic powers will therefore redefine the ability of regions and enterprises to prosper in the new millennium? Inevitably the tourism industry is also affected by the technological revolution.

Both tourism destinations and enterprises increasingly need to adopt innovative mcthods and to enhance their competitiveness. On the demand side, the new, sophisticated, knowledgeable and demanding consumer increasingly becomes familiar with the emergent ITs and requires flexible, specialized, accessible, interactive products and communication with principals. Hence, new best management practices emerge, taking advantage of the ITs revolution and re-engineering the entire business processes of the industry(Page 2004).

Problem statement

This paper aims to analyse some of the most critical IT developments and to demonstrate how they influence the tourism industry. It blends the theoretical background of ITs with the strategic functions of the industry and proposes a multidimensional framework for the incorporation of ITs in tourism.

Research Background:

The fusion of ITs provides unprecedented tools, which facilitate the creation of new industries, restructure existing industries and radically change the way firms and regions compete. ITs reshape the nature of competition in most economic activities, whilst they link consumers and suppliers, adding value to organizations' products. Hence, ITs change the competitive game for almost all organizations, regardless of the industry they operate in, their location or size? In particular, technology affects competitive advantage as it determines the relative cost position or differentiation of organizations.

A firm can achieve several strategic benefits by using ITs, namely: establishing entry barriers; affecting switching costs; differentiating products/services; limiting access to distribution channels; ensuring competitive pricing; decreasing supply costs and ...