An investigation into e-commerce in hospitality: A Cape Town study

Abstract

Much has changed in the business world since the birth of technology and the subsequent discovery of the world wide web (www) in 1989. Global communication between potential buyers/customers and suppliers became a reality and with it, so did the sale of products through the use of this platform. Electronic transactions also known as E-Commerce, gained momentum in the last few decades enabling customers to search for products online and purchase their desired findings through a host of electronic payment methods. A common misconception is that e-commerce refers only to the sale of tangible products through the internet, although “services” such as found in the tourism and hospitality industry also use this medium of sales. Tourism is a key sector in South Africa and vital contributor to the Gross Domestic Product (GDP) of the country. According to South African Tourism (2015), more than 180 million bed nights were sold in 2015, making the hotel industry an attractive client of e-commerce. Hotel rooms are advertised on company websites, and these in turn are also linked to websites such as Booking.com and Expedia.com, which facilitate the room sales of subscribing hospitality properties across the globe.