online reservation system thesis

Customers’ perceptions of service quality, using an online reservation system, and online reviews affecting intention to use the system to book a hotel room

Major Professor

Committee member, journal title, journal issn, volume title, research projects, organizational units, journal issue, is version of.

Information technology transforms the way hospitality organizations do business. There are many areas during the hotel booking process that create moments of satisfaction or dissatisfaction for customers. One of these areas is the ease of utilization of a hotel’s online reservation system.

It is important for hotel companies to ensure appropriate service is provided to customers and creates a positive customer experience; therefore, accurate and timely reservations are essential. The internet enables hotel customers to take full advantage of the immense amount of information available while they are booking a hotel online. According to Castro and Custodio (2016), a hotel’s online reservation system has become a popular means for reserving hotel rooms. A hotel’s online reservation system enables hotel managers to manage the reservation process without manual efforts. Moreover, the online reservation system also improves the efficiency of the reservation process compared to booking via email or by phone. The hotel’s online reservation system also provides a direct way for hotels to monitor their revenue management (Hu & Gu, 2013). In addition, by booking a room through a hotel’s online reservation system, customers are assured about the availability of a room upon arrival at the hotel during their trip. The reservation is a commitment made by the hotel rather than a third-party business when the hotel accepts the reservation request via their online reservation system (Kasavana & Brooks, 1998). However, there is still a large portion of customers using other methods to book a hotel room, including through OTA websites, by email, by phone, or in person. Therefore, factors impelling customers to book directly through the hotel’s own reservation system turn out to be a substantial topic for hotel management. This study focuses on examining the factors affecting customers’ intention to use a hotel’s online reservation system by combining previous theories and framework.

This study examines the elements impacting customers’ intentions to use a hotel’s online reservation system to make room reservations, including the customers’ perceptions of service quality, the experience of using the hotel’s online reservation system on its website, satisfaction regarding the hotel, perception of the experience using the online reservation system, and evaluation of other customers’ online reviews of a hotel.

Results from 848 online survey responses indicated customers intended to book through a hotel’s online reservation system due to favorable perceptions about the hotel’s service quality, positive experiences using the hotel’s online reservation system in terms of usefulness and ease of use, and good evaluations about other customers’ online reviews about the hotel. The findings proved the TAM was successfully applied to the hotel industry to explain customer usage of a hotel’s online reservation system. It was also confirmed that perceived ease of use directly affected customers’ intentions to use a system only when the system was not purchase-oriented. Customers’ evaluations about online reviews regarding the hotel affected their intentions to book through the hotel’s online reservation system by increasing the customers’ satisfaction level and perception of their experience using the system.

Contributions of this study were both theoretical and practical. First, this study provided insights into the perceived service quality-customer satisfaction-purchase intention link in a hotel’s online reservation system setting. Second, the results generalized the TAM for a hotel online direct sale scenario by examining the relationship among user acceptance of system and intention to use the system for purchase. Third, this study made the first attempt to combine intention for system usage and intention to purchase and investigated in an online reservation system setting in hotel industry. Fourth, results suggested strategies to hotel practitioners for improving a hotel’s online reservation system in terms of ease of use and usefulness. Fifth, provided advice for hoteliers in improving online distribution strategies to take advantage of the customers’ adoption of the online reservation system as a reservation tool. Lastly, the results addressed the impact of online reviews generated by customers on customer satisfaction regarding the hotel and perception of their experience using the hotel’s online reservation system.

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Online Hotel Reservation System Capstone Project Document

Introduction.

Technology in our society becomes more complex over years through mans development of a new technique that could meet the ever-increasing needs in all aspects of information.

The study of System Analysis and Design (SAD) involves preliminary investigation through analysis of the existing system being used in the Reservation of Palazzo de Laoag Hotel. The researcher conducted this study at the said hotel with the end in view of coming up with a system that would facilitate the flow of transactions particularly in its reservation in as much as the present system is purely manual in nature. The study involves the Resident Manager and the front desk personnel, as they are the front liners in this business establishment. Moreover, they stand, as the partners of the researcher who shall in the end, be the ones to implement whatever good this study shall deliver.

Conceptual Framework Of The Study

Computerization program deemed the best alternative solution to once stagnant method of manual operation. The process virtually enhances the technical capability of companies and schools in the pursuit of their business venture. This study was further conducted to be able to study the organizational structure of the company and make research on its history, function, objective, policies, system and procedure, duties and responsibilities of each personnel, to familiarized the research with the process flow of the present system, to propose an online system for the company and to develop and implement the proposed system.

It include here also the Systems Development Life Cycle. This chapter presents the methods that the researchers have undertaken in the conduct of the study with the system development life cycle as basis.

Conceptual Framework

The first step is the Project Identification and Selection wherein the researcher selected from among the system proposals to be presented. The proposed system that was chosen was Online Hotel Reservation Of Palazzo de Laoag Hotel, Laoag City.

The next step is the Project Initiation and Planning wherein the researchers provided a letter of permission to the Manager of Palazzo de Laoag Hotel where the study was conducted. A receive copy was given back to the adviser as a proof of permission from the manager of the hotel. Initial details about the project were discussed with her. The researchers came up with a specific plan to follow during the course of the study.

The step that followed is the Analysis. In this step, the researcher will discuss how to determine the system requirements through interview, observation, and review of documents, forms and others.

Since the study focuses on the Online Reservation of Palazzo de Laoag Hotel, actual interview with concerned personnel will be conducted. The researcher will visit the hotel several times and additional interviews will be done.

Interview is not enough to complete the research. Going to the library will be a great help to the researcher in the development of the study. The researcher will browse old theses in the library, magazines and books to gain more ideas and knowledge on the proposed system. Through this method, the researcher will be able needed information of the study.

Surfing the net will also help the researcher to know the latest and newest information about the study. In the analysis stage the researcher will come up with the flow of the proposed system from which the description of the proposed system will be based. The researcher in this phase will come up with the cost benefits analysis that describes such plan to acquire any hardware and system software needed to build or operate the proposed system.

The next stage is the Logical Design wherein the researcher came up with the dataflow of the proposed system. The researcher will identify all entities needed to in the system and design the forms and reports to be outputted using Visual basic.

Next is the Physical Design wherein the researcher used to came up with the sample screenshots to be designed using HTML (Hypertext Markup Language).

The implementation and maintenance stages are to accomplish during the system development period.

It also involve here the Input Process Output (IPO) Diagram,

IPO (Input Process Output) DIAGRAM

Statement Of The Problem

The following problems have delivered during the course of the study:

How is the online reservation developed?
How efficient and effective is the proposed system in terms of the following:
In minimizing the time and effort of the personnel concerned in reservation transaction?
In facilitating reservation for the customer?

Significance Of The Study

To the company:

The result of the study would provide more efficient and effective processing of data. It would also result to faster easier generation of the outputs. Hence, reports are submitted on time for timely decision.

To the owner:

The study will provide all the necessary reports of all the transactions and will not cause the delay of submission of needed reports to the owner or the manager.

To the researcher:

The conduct of the study helped the researcher to work independently. She was able to practice her gained knowledge in System Analysis and Design (SAD).

To the Customer:

This study will provide the customer a more secure and reliable transaction because it will save time and effort rather than doing it manually.

Scope And Delimitation

This study is limited only to Palazzo de Laoag Hotel. It covers the latest art of reservation which is online system. It also discusses significant features to the company involve as well as the customer. Payments are not done online, thus the delimitation.

Definition Of Terms

Information – Facts or knowledge obtained from investigation, study or instructions.

Record – Group of collected fields of information treated as a unit.

Data – Refers to the facts needed by the computer system in order to process and output necessary information.

Computer – An electronic device used for performing high-speed arithmetic and logical operations.

File – A collection of records that can be manipulated by people or machine.

System – A complete installation including peripherals, such as disk drive, monitor and printer which all the components are designed to work with each other.

Online – It is activated and ready for operation, capable of communicating with or being controlled by a computer.

Internet – It is an interconnected system of networks that connects computers around the world via the TCP/IP protocol.

Related Literature

According to Ray Nolan, CEO of Web Reservations International ,

“Web Reservations International, a leading provider of online reservations for budget, independent and youth travelers, developed its first online store in 1999, and now handles over 2,000 customer transactions a day.

Its flagship site, www.hostelworld.com , provides real-time confirmed online reservations for over 3,500 hostels and hotels and almost 2,000 tours and activities worldwide. The site also provides comprehensive information to travelers including destination guides, discussion boards, travel stories and a personalized online itinerary builder. Other products sold online include bus and rail passes and a specially designed insurance product for backpackers and budget travelers.

Web Reservations’ first e-commerce solution was not robust enough to cope with the demand, and the reporting structure and support were poor.

Ray Nolan, CEO of Web Reservations International, explains: “Our customers are dotted all around the world and need to be able to log on to our site at a time convenient to them. Our store needs to be open and able to accept payments 24/7, and have the ability to cope with multiple simultaneous transactions.”

When looking at the options available in the market, Web Reservations came across WorldPay . Nolan was impressed by the reputation of the company: “WorldPay has been around for quite some time. It has offices and customers around the world, which we found reassuring. WorldPay were able to provide a solution that would fit in with our requirements, and they were also helpful and professional when we contacted them.”

Web Reservations already had an Internet Merchant Account from its own bank, so was looking for a simple, flexible solution to accept and process the payments. WorldPay provided them with the Bank Direct solution that enables them to accept payments securely over the internet, from a broad range of payment cards and types including: Visa, MasterCard, American Express, Electron, JCB, Diners; Ireland-specific cards like Laser; UK-specific cards like Switch and Germany-specific payment instruments like Lastschrift

Nolan comments: “Using WorldPay makes our lives, and those of our customers, a lot easier by having a reliable payment solution. Our web site sees up to 2,000 transactions a day; WorldPay processes them all smoothly and securely and we are very pleased with the result.”

The Web Reservations suite of websites including: Hostelworld.com, Hostels.com, Hostelplanet.com and Discounthotels-world.com have met with huge success and now attract over 2 million visitors per month. The company has been recognized within the industry for its achievements, with Hostelworld.com winning ‘Best e-commerce site’ and ‘Best of the Best’ at the ESAT-BT Golden Spider awards 2002.

Related Studies

According to Jenerly Mamanao:

“Computerization program is deemed the best alternative solution to the once stagnant method of manual operation. The process virtually enhances the technical capability of companies and schools in the pursuit of their business venture. To sum up, computerization obtains more credible and systematic way in dealing with records procedural process. The researcher recommends the use of a better and more reliable reservation system, a system that would help much the company in terms of speed and accuracy in processing bus reservations.

It is in this regard that the researcher avails of a better recommendation that will enhance to the great extent the technical output capability of Palazzo de Laoag Hotel. This study hopefully will fill the void and the loopholes that Palazzo de Laoag Ivory Hotel critically needs”.

Data Flow Diagram

Data flow diagram symbols

Database Design

Data Environment

Data Entry Customer

Entity Relationship

Table Design

DEFINING ATTRIBUTES AND DOMAINS

Presentation, Analysis And Interpretation Of Data

This chapter presents the data gathered by the researcher from the various sources. These data were analyzed, tabulated and interpreted for purposes of systematic presentation.

The status of Reservation system of Palazzo de Laoag Hotel

The present Reservation system of Palazzo de Laoag Hotel is all done manually.

To summarize the current situation of the hotel reservation system, it still follows the traditional way. Customers will still go to the hotel to reserve.

The Development of the Online Reservation of Palazzo de Laoag Hotel

B.1. The Process

The power of the computer and the web has amazed the hotel owner so much, so there was no question about the proposed of making the reservation online. In fact, it has been the long cherished dream of the hotel incorporators to see the implementation of fully automated system for the customers and the personnel’s of the hotel is not so distant future.

As a part of the development process it become incumbent upon the researcher to follow the systems development life cycle of project identification, analysis, implementation, revision and maintenance to approach the problem. It was dedicated to start on the basic requirements of the school in the lessons routines to be able to develop workable system to replace the manual system.

B.2 Software Requirements

The following software specifications are required for the system to properly run;

Windows XP/2000
Macromedia Dreamweaver 2004
Microsoft Access 2000
IIS(Internet Information Services)

Software requirements were the next concern; what programming language would best apply. The choice was narrowed down to ASP (Active Server Pages) using VBScript was dictated by the familiarity of the researcher with the intricacies of the programming language. In the undergraduate as well graduate level, the encounter with ASP (Active Server Pages) using VBScript was always happy and eventful one.

To keep expenses to the minimum, it was also dedicated that the Microsoft Windows as the operating system for the network set-up to implement the proposed study be adapted.

B.3 Hardware Requirements

The following are the recommended requirements for the system.

Pentium IV 2GHz, Intel board Slot A
128 MM SDRAM
4 Hard disk

The hardware requirement was the next concern that had to be tackled. To support the proposed system, the following minimum hardware requirements were identified; one computer unit set-up with the following specifications, processor type Pentium IV 600 megahertz, Intel Board Slot A plugging all the peripherals devices needed, 128 MB SDRAM of memory of effectively handle multitasking, 8.4 Gb Hard Disk Storage capacity.

This hardware, since they already exist, totally eliminated the major expenses for the project. Foreseen to require the barest of financial support was in the preparation of this study and manpower support in the implementation and maintenance step.

B.4 Design and Development

The programming process was initiated with the writing of codes based on the requirements of client architecture. The standard programming practices of data validation and error trapping were performed throughout to ensure that each phase was running smoothly.

Design of reports outputs was patterned after the reportorial requirements of the hotel.

As a final step, compilation of the program was done to create an executable file that can be used even in the absence do Visual Basic and can be installed or copied to another computer using the Visual Studio. User’s manual was

written as a matter of documentation as user\s reference that contained the programmer’s instructions and explanation on the functions of the system.

Testing and Implementation

Presentation of the proposed system for a trial run and demonstration among system users was performed. This way necessary to draw comments from the users, suggestions when appropriate, and recommendations that may help improve the system.

The systems were finalized taking into consideration the feedback of the users. The user’s manual was written to incorporate the changes that were adopted as a result of the trial run and demonstration.

Alpha Testing Results

Alpha testing involves the use of test data and not actual data. Simulated names, dates, costs, and data closely resembling what is intended to be processed are used as test data fed into the system. The system is tested if computations performed are correct, if the system is able to handle data and transform it to relevant information in the form of reports needed by the

organization. Output reports are analyzed if they are true representation of the data that were used. Alpha testing to sufficiently establish the acceptability of the system tested should be made to handle of sizable amount of data not necessarily approximating the size of data intended to be handled. The amount of data is such that the system is sufficiently tested for consistency of its output.

Results of the Alpha Testing done on the Proposed System are the following:

Logging in using the system is embedded for security measures for unauthorized users.
The system automatically generates.
Desired results in the reservation reports are consistent and correct.
Error trapping is the features of the proposed system.
Data is secured from corruption by users and is automatically backed-up during routine operations to ensure data recovery.
Beta Testing Results

Initials Beta testing used data from the Hotel Manager. Due to time constraints, one week testing was allotted for Initial Beta testing.

Table 4.1 shows the tabulation of results of the evaluation by respondents on the proposed system.

Weighted Mean Distribution off Respondent’s Evaluation on the proposed system

Efficiency of the Website
Quality of Information
Layouts and Graphics Appropriateness
Security and Maintenance

On the proposed systems’ capability to support Making and Taking Reservation, maintaining an organize and portable database, the interface of the system is user friendly, it allows the customer to cancel his/ her reservation within a reasonable time, the system automatically generates the reservation form and stores it in the database, there is sufficient field for directions, the system allows the front desk personnel to update, add, edit or delete items in the existing reservation, there is a help future that will guide a neophyte user on the use of the system, the system allows the personnel to generate reports for the reservation, features and design give the customer and personnel convenience to use the system over ball pen paper reservation type. Each category received a weighted mean of greater than 4, which mean the respondents strongly, agree that in all categories the expectations ore met and fully realized. Furthermore, the overall weighted mean of 4.33 corresponding to a verbal interpretation of “Very Strongly Agree” indicates that the proposed system has made used of function.

The Efficiency of the proposed Online Reservation System

Contrasted to the previous manual system, the proposed Online Reservation system has overall relieved personnel especially for the personnel from the tedious work of Making and updating reservation and repeating common tasks of data entry every reservation process.

Securing data from various factors that threaten data integrity involves standard programming routine that are build into proposed systems design. The proposed system has successfully built security around data using these basic principles in programming routine.

The ultimate test of system relevance is its usefulness and functionality, its ability to deliver according to the defined expectations from the systems that they intend to replace.

The proposed system has shown superiority in the aspects of usefulness and functionality for the following reasons: the design has been tailored-made according to the identified needs of the personnel; among its standard features are used of access keys and shortcuts that endow the system with an ease of handling and user-friendliness; structured rather than hard-coded programming was used; the system boast of error-free that can be relief to effectively handle and process data and generate reports for the customers and personnel’s.

The presentation of the proposed system is commendable. The graphical user interface is both appealing and friendly. There is a unity and consistency in the grouping of functions and objects. A screen design simulates windows application and overall is pleasant and shows the virtue of taste in special effects.

Benefiting the staff and personnel of Palazzo de Laoag Hotel as a whole, it also stands to benefits the customers who take reservations. Reservation was simplified and personnel and customer do not have to work hard for making the reservation. Repetitive routines are eliminated and customers do not have to go to the hotel. There is no question as to the acceptability of the proposed system. For one, Palazzo de Laoag Hotel has long depended on the manual system in its reservation routines. This system offers superior alternative that makes for ease, efficiency as well accuracy.

Summary Of Findings, Conclusion And Recommendation

This chapter presents the summary of all the data gathered by the researcher. It also includes the conclusion that could be ascertained. Finally, some recommendation was formulated for further improvement of the study.

Summary of Findings

Based on the data presented and analyzed in Chapter 4, the following findings were obtained.

That the proposed system provides a systematic handling and generation of reports.
The proposed system processes quicker than the present system.
That the proposed system procedures computer generated reports.

Based on the result of the study, the researcher concludes that the proposed system is faster in processing the reservation.

Recommendation

The researcher therefore recommends that the present system should be online for faster processing of data and for generation of accurate reports.

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