Just as you were
becoming accustomed to E-commerce, advances
in wireless technology and the Internet are
combining to drive a new generation of
electronic commerce called mobile commerce,
or if you prefer, ‘M-commerce’.
What’s the difference
you ask? Well, where E-commerce uses the Web
on a computer screen to run transactions,
M-commerce uses much smaller screens on
mobile devices. Mobile Commerce connects
business and customers via the Internet
through wireless devices, cell phones, Palm
Pilots, personal digital assistants (PDA’s),
handhelds and basically any wireless device.
Although applications
for the general consumer industry are
showing slow growth, the travel and
hospitality industry in particular are
poised to take advantage of the growth in
M-commerce. What level of growth is
expected? Well, the Princeton, NJ-based
Kelsey Group is predicting 1.4 billion
wireless users by 2005.
With those numbers it’s
easy to understand the potential impact of
telephony automation and Internet on the
travel and hospitality industry. Travel
occupies the cutting edge in both spheres
and for simple reasons. A travel purchase is
inherently a remotely-made decision. Before
you go on a trip, you pick up the phone. You
look at a map.
As well, travel, by its
nature, deals in constantly changing,
massive databases of train, plane, and
cruise schedules, fares and room
availability. In fact, across a wide area,
M-commerce will enable business travelers to
better access hotel information, find out
where rooms are available, check price and
room details then make or change
reservations from their cell phone or PDA.
With the advent of
M-commerce, hoteliers need to realize that
online access, i.e., a transactional
website, is no longer optional. An
increasing number of would-be travelers use
the Internet to find, view, evaluate, and
book hotels and travel. They want to see the
spread of room prices, pictures of the rooms
and suites, current availability grid and
make a reservation online.
Yet even with the
internet, online access is not enough, as
even though many travelers have seen the
range of services and perhaps made their
initial selections via web forms, a large
number of them want to follow through by
speaking with a live representative. If a
hotel's web page has a click-to-talk option
or a fast-track 800 number plus real time
reservations, the chances of locking in
traveler's business go way up.
The M-commerce
technology combining the old (telephone/fax)
with the new (Internet) is the Wireless
Application Protocol (WAP), an open, global
standard for communication between a mobile
handset and Internet oriented applications
which allows users of Web-enabled phones,
pagers and PDA’s the ability to search for
hotel information, book hotel reservations
and access guest loyalty programs using
their wireless devices.
Currently a number of
the largest hotel chains, have entered the
M-commerce arena with the launch of a
wireless capability, expanding on their
company’s well established Internet
presences. Mobile reservations or
M-reservations will also become part of the
travel industries repertoire.
Yet, the technology is
so new, that apart from the larger players
or more technologically advanced hotels, few
lodging companies have anything up and
running.
Considering that the
mobile handset is often the hub for working
while traveling and the
WAP technology simplifies much
of the administration around
reservations, the
travel and hospitality industry
should begin thinking how these new
technology opportunities can further their
E-commerce and M-commerce goals.
In the meantime
hoteliers and other players in the travel
industry should be rethinking their current
E-commerce efforts and concentrate on
converting more of those mouse clicks into
sales.