The Negative Effects of Hotel Websites to the Company Itself

Topics: Hotel, Hospitality industry, Hotels Pages: 3 (879 words) Published: September 21, 2011
The Negative Effects of Hotel Websites to the Company Itself

21th century. We live in a world where internet has become one of the most important resources in the world. Internet basically has everything we need, from news, information of companies, or even e-shops. Hotel industry too has improved and uses internet as one of its tools for giving information about the hotel, allowing customers who want to book a reservation to be able to check if the hotel meets their expectation. Most of the famous hotel companies have their own websites that picture how the hotel looks like. Owning websites gives many benefits to hotels, yet it has negative impact that is not to be taken lightly. Maintenance issues, promotion cost, and changes in room rate pricing are the effects that hotel managers might consider before developing a website for their hotels. In fact, many hotels could not handle the negative impact of having a website that they do not use it until now.

Before owning a website, one should consider everything that might be needed and could be a cost. Even buying or renting a server for the website cost money. Operating the server system, renting web designers’ service to design the hotel website, installing the revenue system, are examples of one-time costs that will be needed in order to own a website. Managing the website, do check-ups on the server system, updating the revenue system, are the examples of potential costs that need to be paid from time to time. These could potentially charge hotels a huge amount of money. Web designers could charge their customers up to $15,000 for a website made from scratch, while a personal computer that can act as a server could cost up to $2,000. The amount of money required might not be a problem for big hotel companies such as Four Seasons and Marriott, but for medium-scale to economical hotels, it is huge. Some incidents might happen that would be an additional expense, for example when the server is infected by...

Cited: Gilbert, David C., Dominic W. Beveridge, and Liz Lee-Kelley. "Electronic Distribution of Hotel Rooms-- An Exploratory Study of the European Hotel Industry." Journal of Hospitality & Leisure Marketing 12.3 (2005): 45-61. Academic Search Premier. EBSCO. Web. 5 Apr. 2011.
O’Connor, Peter and Jamie Murphy. “A Review of Research on Information Technology in the Hospitality Industry.” N.p., n.d., Web. 05/04/2011.
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