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With the rise of online bookings as a preferred mode of making reservations, electronic payment is the new mantra for the hospitality industry. Priya Krishnaswamy logs on to check out the scene

Lifestyle changes and the emergence of a variety of new technologies have put tremendous demands on the electronic industry. Foreign travellers prefer guaranteed reservations and therefore find Internet bookings most convenient. Indians, traditionally considered as conservative especially when it comes to making online payments, are also joining the party. Fortunately for the hoteliers and those in the industry, electronic bookings are on the rise and people are becoming more aware and comfortable with e-payments.

The importance of  technology

When opting for electronic payments, added value and specialised targeted marketing will be the mantra that needs to be aided by technology. To promote these, the technology vendors will need to deliver advanced transaction processing systems and infrastructure. Says Vijay Gollarahalli, general manager, Le Meridien, Bangalore, "The growth in Internet bookings has been tremendous over the past few years. Earlier nearly 90 per cent of the bookings were done through other media like fax, phone calls, etc. Now with more people using the Internet, this medium is becoming popular. However, what you need is a safe and secured online space."

The industry comprises of different negotiations with different clients. From a variety of travel agents to tour operators, direct marketing, online advertising, the trend in electronic booking has always seen a rise. The advent of Global Distribution System (GDS), a computerised system used to store and retrieve information and conduct transactions related to travel, has contributed greatly to the growth story. The entry of global hospitality chains and the tie-ups between Indian hotels and third party travel companies or hotel distribution channels has also fuelled the growth. Says Gollarahalli, "All the electronic reservations that happen for the hotel is only through the Starwood group's website. By no means, we connect to any other third party. The reason is primarily for security purposes." In the Le Meridien, Internet bookings, which currently account for 36 per cent of the total bookings, grew by 75 per cent over the past year.

Secure payment

Distribution channels today use software that uses Secure Sockets Layer (SSL) with multi-layer protection for online payments. Despite the secured protection available, it is difficult to estimate the extent to which a transaction is foolproof.

Arjun Chopra, director of sales, The Park, Bangalore says, "Currently, about 35 per cent of our booking is being taken care of online. There has been a growth of 100 per cent over last year's bookings." Talking further about online payments, Chopra says, "Payments have always been an insecure platform. However, people in the West transact mostly through the Web. The concept has already come to India. Proper awareness and guaranteed security can take it further."

With increasing demand for advanced reservations and due to geographical limitations, more and more people are introducing online transactions into their lifestyles. Gollarahalli says, "With strict legislation, cyber crime would decline to give rise to the confidence of people using the Web."

The brighter side

Offering discounted prices online, as opposed to the 'over the counter' rates, at most times proves beneficial to hotels. The assurances of future revenues due to advance bookings have also attracted the industry to make a presence in the virtual space. Says Chopra, "Often there is a price differentiation and the rates offered online are often lower than those offered through various channels like travel agents, over the counter." While the hotels benefit by making complete use of their capacity, clients on the other hand prefer to search for the best rates and therefore find the Internet a very convenient medium.

P K Padmanabhan, general manager, Royal Orchid Central, Bangalore says, "Most certainly, who would be not interested to avail convenience, particularly in today's stressful life with dramatic improvement of technological support in every area! GDS will go a long way in influencing millions of travel loving and price sensitive Indians to opt for Internet booking."