More Ways to Snag That Restaurant Table

The development of the information technology has led to the multiplication and the diversification of online businesses notably in tourism & event industry. Online bookings websites are now one of the most used tools and competition become fierce due to the appearance of new players into the market. Users are able to seek information, compare products or services they are interested in and make online reservations.

The present article aims to analyze the online restaurant booking platforms that are sharing the market and highlight services they offered. The 3 mains companies are “Opentable.com”, the largest one which reference over 13000 restaurants, “Urbanspoon.com” which has reservation available over 170 restaurants in Seattle and Los Angeles and finally, “ReservationGenie.com” which counts 31 partners. In order to gain market shares, these companies tend to differentiate and enhance their offers (multiplication of special offers, discounts…) as well as set up loyalty programs through customer relationship management. Opentable.com is the only one to charge restaurants for reservations made through their own websites (25 cents per head) and the total cost to be part of their listing is higher than its competitors. However the 3 online companies provide restaurants computerized systems to enter details about customers’ tastes and habits in order to gain their loyalty. Technology is in constant evolution, for instance the brand “RezBook” launched by Urbanspoon shows customers available tables and alert by phone call, iPhone or iPad the concerned restaurant, saying that someone is looking for a spot. Moreover restaurants which use this system are required to buy an iPad to operate electronically.

As a customer we really appreciate these convenient services which give us an overview of existing restaurants to facilitate our choice. In addition major companies operating in this market have developed their own mobile apps which allow consumers a better use of the service, at any time. Websites are easy understandable and well designed. Moreover booking at a restaurant is free of charge, instantaneous and directly confirmed to the customer. Nevertheless only few restaurants can afford to have their one online booking website due to the cost engendered. Moreover it seems to be difficult for these online booking platforms to constantly update information in real time about restaurants they reference (availability of seats, change in the menu, in the opening dates…). A limitation would be that restaurants cannot deal with several online booking websites at the same time due to the incompatibility of these systems regarding bookings. Another limit remain that customers who booked via these websites especially when there is special offers, are less pampered and served than others. Indeed, they are often considered as “low cost” clients who are not going to spend extra money for their dinner. In the same way it appears really hard to control the quality and the hygiene of restaurants although customers are incentivized to comment on their experiences.

Keywords: restaurant; booking; competition; computerized reservation tool; technology

Source: McLaughlin, K. (2010, May 20^th). More Ways to Snag That Restaurant Table. Retrieved January, 22^nd, 2012, from The Wall Street Journal website: http://online.wsj.com/article/SB10001424052748703691804575254680739522068.html#articleTabs%3Darticle