Mobile Commerce in Tourism and Hospitality Sector

Mobile Commerce in Tourism and Hospitality Sector

Introduction

The computer and the internet are two of the most vital innovations of the 20th century. These technological developments changed the manner in which communication took place and presented numerous opportunities for businesses. One novel technology that exploits the internet ability of mobile devices is mobile commerce (m-commerce). The tourism and hospitality industry has shown great interest in this technology. Key players in the sector have appreciated that this technology adds value and provides competitive advantages to individual businesses. Jung and Mills (2010) observe that in addition to extending the reach of wired networks, mobile technology acts as an alternative channel of information providing new opportunities to travellers. This paper will set out to discuss mobile commerce in the tourism and hospitality sector. It will highlight the ways in which m-commerce has been exploited in this industry and demonstrate how the technology has improved the tourism and hospitality sector.

Defining M-Commerce and its Importance

Traditionally, the internet could only be accessed through wired technology. However, advances made in telecommunication technology over the past two decades have made it possible for mobile communication to access the internet. This made it possible for mobile devices to be used for mobile commerce functions. M-commerce is essentially the application of electronic commerce though mobile devices. Alqatan, Singh and Ahmad (2011) define it as a wide array of business activities including advertisement, sales, and marketing, carried out by use of wireless devices such as personal digital assistants, tablets and smart phones. The convenience offered by this technology has led to a marked shift from e-commerce, which relies on wired networks. M-commerce is useful due to a number of important features it possesses. To begin with, it has great mobility making it possible for the user to carry out business transactions while on the move. The user can engage in business activities including looking for the best products from anywhere and at any time.

The second feature is the broad reach of mobile devices in the modern world. The past decade has witnessed a phenomenal growth in mobile technology and wireless communication. The cost of mobile devices has reduced significantly while the technological advances have increased. Mobile devices are able to offer high speed data connection using the 4G network. According to Patten and Harris (2013), there are billions of mobile devices owned by the general population. This means that the number of mobile communication devices far surpasses that of personal computers. These devices have therefore become the most common means of accessing the internet for a large segment of the population. Alqatan et al. (2011) acknowledge that consumers are increasingly depending on their mobile phones for more than just communication purposes. These devices are being used to access content and services from the internet on a frequent basis.

Another advantage is that m-commerce applications are built with usability in mind. Many consumers avoid technology that is complicated to use or requires a lot of learning before proficiency can be achieved. Dae-Young, Jungkun and Alastair (2008) reveal that the learning curve for m-commerce applications is steeper than that of other IT applications since this technology emphasises on user friendliness. Many businesses have moved in to exploit the advantages offered by m-commerce.

M-Commerce in Tourism and Hospitality

The tourism and hospitality sector plays a significant role in the global economy. The World Trade Organisation declares that the tourism and hospitality sector is the world’s largest employer making it the single most important economic activity globally. The economic growth of many nations is therefore dependent on this sector. For this reason, significant efforts are dedicated to its success. M-commerce has emerged as an important component of the tourism and hospitality business with the technology contributing to the success of various entities in the industry.

Airlines

Airlines play an integral role in the tourism business. Most tourists make use of airplanes to reach their favourite destinations. Access to airlines is therefore an important consideration for many tourists when they are making decisions to travel for leisure. Research indicates that most holiday makers are likely to use their mobile devices to research on the air travel options available to them (PhoCusWright Innovation, 2012). Through m-commerce, they are able to engage in personal research on the different airlines and the services they offer.

Once a traveller has chosen an air