The hospitality industry is focusing on online purchasing and reservations to improve services to guests. Online purchasing and reservations are emerging as leading Web applications for the hospitality industry. Chris Hartmann, chief technology strategist for HVS International, a consulting and research firm, says the biggest potential savings probably will come from lowering the cost of transactions, rather than the cost of products themselves. Since so much purchasing is done at the property level, training and education will mean a significant investment in time and money, he adds. Brian Weed, vice president of strategic planning for Hyatt, says online procurement is appealing to hotels because purchasing is incredibly fragmented.
Online bookings provide convenience for travelers.
Avendra hopes to market its products and services to other hospitality firms, such as lodging, casinos, social clubs, and perhaps even cruise lines, Weed says. At Hyatt's Avendra partner, Marriott, Dennis Baker, an executive vice president who will be Avendra's COO when it is spun off as a separate entity, agrees that hotels are particularly suited to online purchasing because the industry is so highly dispersed, and each hotel operates on its own. We have 10,000 people out there buying and we can create huge efficiencies and better control, with the ultimate goal of taking better care of guests. Starwood Hotels and Resorts Worldwide has entered into a similar relationship with Zoho, another online procurement enterprise. Therefore, we chose a solution that was more than just an e-enablement of a traditional hotel purchasing system.