HOTEL AND E-COMMERCE

Hotel and E-Commerce

Hotel and E-Commerce

Introduction

Electronic commerce is a process whereby a business is run on the internet or uses the internet to improve profitability or productivity of a business. Ecommerce entails a process carried out externally, or internal process such as production, risk management, inventory management, human resources, and knowledge management (Graham 2008). Impact of Ecommerce in many organisations in developing countries has made local companies have the opportunity to be exposed to global market (Graham 2008).

Electronic commerce (Ecommerce) is generally defined to encompass any commercial activity that uses the transmission of electronic data to facilitate buying and selling (Graham 2008). Ecommerce therefore spans a wide variety of industries, not only those trading in tangible goods (as traditional brick-and-mortar storefronts do) but also those brokering the transfer of intangible ownership rights (Graham 2008). It also uses a wide variety of technologies, ranging from the simple buying and selling of products using electronic mail to more complex inventory-tracking systems that automatically replenish stock based on sales (Graham 2008).

E-commerce is a form of Web retailing that features the buying and selling of goods and services on the Internet, consisting of direct retail shopping (with a global reach and a 24-hour availability) and has become a multi-billion-dollar industry for world business. Multiple distribution channels are used through Web sites, third-party Web sites (such as social media network advertisements), and telephone reservation systems. There are several key aspects of e-commerce, which include the following:

A.Virtual storefronts on Web sites with online catalogs

B.Gathering and usage of demographic data

C.Business-to-business exchange of data, buying, and selling

D.The use of e-mail, instant messaging, and social networking

E.Security of business transactions

Company Chosen

The luxurious Grande Roche Hotel is situated in the Paarl Winelands, set against the backdrop of a rugged mountain range and surrounded by ancient oaks and historic vineyards.

It is located in the largest inland town in the Cape Province, Paarl. It is about 60 km North-east of Cape Town, approximately 40 minutes by car. Renowned for its illustrious past and unrivalled scenic beauty, Paarl is dominated by 3 huge granite domes which is Paarl Mountain, and the Berg River which flows through the town.

Current Business Issues

The hospitality industry is growing day by day and the main reason is globalisation of the world business. So in the service industry today, we see that there is a requirement to provide the best possible service to customers in order to meet their expectations and also improve business efficiently of the firm (Boutie,1997).

The quality of service in the hotel industry is an important factor for the successful running business. The existing trend of complete quality management in the hotel industry ensures the achievement of competitive advantage of hotel companies (Kandampully 2010).

Businesses in developing countries are faced with a number of challenges in their adoption and exploitation of Ecommerce. Several of the existing models of adoption emphasize the relevance of technological, financial, and legal infrastructure constraints (Dewan and Kraemer 2000). While most countries still need to address such problems, improvements (such as in telecommunications ...