Friday 31 January 2014

Cloud computing: a new challenge for the tourism industry.

The cloud offers limitless opportunities that you could not imagine before. The ability to access software, database and computer processes, whenever and wherever you want. This computing can be defined as “ a type of Internet-based computing “ instead of using local server and personal devices to manage resources.

Nowadays many businesses benefit from placing their key business processes in cloud-based software. Apple was one of the first company to provide a platform that allowed customers to stock their music files and photos. Dropbox as well is one of these innovative companies that based their business model on cloud storage services. Cloud computing offers opportunities not only for the IT industry but also to other sectors like Tourism. Particularly Hospitality industry, which is globalized and dealing with a large amount of clients every year.

Like any innovation, opportunities but also risks must be measured, anticipated and handled by hospitality stakeholders.



Technological breakthrough benefiting internal and external hotels activities.

Primary advantage of the cloud computing is the accessibility of information. Indeed, databases are available everywhere through giant e-platform. Secondly this new process does not require huge investment and permits cost reduction in handling procedures run by IT department.

Furthermore, cloud technology is a tool already used by tourism stakeholders in order to upgrade the overall guest experience. Hotel chains collect a large amount of information about their clients. As a result cloud platform is a tool able to manage and interpret big data creating value for customer through a more personalized service.

Another advantage of this innovation refers to a key function in the Hospitality industry, namely Customer Relationship Management. This tool ensures keeping contact with customers after their departures. By entertaining a connection via the cloud, it is easier for hotels manager to build a relationship with clients by delivering services before and after their stay. 

Last but not least, one of the most profitable opportunities offered by the cloud, which still needs to be developed, is the capacity to link with other businesses. Hotels can extend their services and find new resources by gathering customers with travel agencies, offbeat recreational companies, and entertainment companies.


An opportunity for small hotels looking for a new boost.

Cloud computing represents an affordable opportunity for small structures to generate an online community and position themselves on e-businesses. Recently the world tourism organization UNWTO signed a strategic partnership with Microsoft, in order to promote computing innovation in the world tourism industry. 

According to Microsoft’s International President, Jean-Philippe Courtois, “It is more and more important for tourism sector enterprises to develop their online businesses by looking to the most advanced technology. In this regard, the adoption of cloud computing is key, as it provides access to a solid web platform that will make it possible to offer more productive, efficient and competitive services.” 

With the aim of enhancing competitiveness, destinations and tourism companies receive training and tools to coordinate, understand best practices and spread innovation technologies.


Cloud computing implies also risks for the company.

This innovation raises several questions about risk and security. Indeed, hotels have to be aware of the consequences of bad management of cloud computing tool.

First of all, cloud computing arises a threat regarding individual confidentiality. Hotels must be able to secure internal data but also clients data/information they gather. It’s mandatory to communicate about privacy engagement and play the transparency card to avoid “the Big Brothers effect”.

Secondly we need to anticipate the consequences of cloud computing on customer relationship management. According to us the big challenge is to be really conscious about client’s feedback regarding this advanced strategy. The aim of the cloud is to enrich, not to substitute the relationship hotels create with customers. Such facilities cannot afford themselves to loose the physical contact, which is the core of hospitality business. 

As a conclusion cloud computing revolutions e-business, especially in the Hospitality industry. Thanks to this innovation, hotels increase their effectivity and enlarge their resources. Though the cloud help them improving their service, hotels have to tackle risks regarding customers privacy and confidentiality of data. What is at stake is to perfectly manage the cloud, particularly small businesses, which have to harness this tool for competitive advantage.

Marie Astrid Barral & Baptiste Lignel

REFERENCES:
  • http://cloudtimes.org/2013/04/17/opportunities-for-the-hospitality-industry-in-cloud-computing/
  • http://media.unwto.org/press-release/2012-02-28/microsoftand-world-tourism-organization-dri ve-innovation-tourism-sector
  • http://www.webopedia.com/TERM/C/cloud_computing.html 
Picture retrieved from http://www.cloudways.com/blog/top-4-cloud-computing-concerns-today/

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