Vol 6 Issue 1, February 2006 - School of Hotel & Tourism ...

20SHTM Latest ResearchImpacts of Internet Technologyon Consumer Behaviourin China’s Hotel IndustryVincent C. S. Heung, Associate Professor and Cherry Huyan, MSc graduateThe Internet is becoming an important tool for hotel businesses in China,used by customers for hotel information, booking and purchase of hotelproducts and services. The Internet and e-commerce not only bringopportunities, but also new challenges to China’s hotel industry. In thecoming 10 to 20 years, both will become a part of the lifestyle of mostpeople in the world, who will become accustomed to searching fortourism information, choosing destinations, drawing up travel plans andarranging tour routes through the Internet.Heung (2003) points out that there is lack of research concerning whytravellers use the Internet to browse, reserve and purchase tourismproducts, and the characteristics defining this kind of traveller, despite agrowing number using it as a tool for seeking information. This study aimsto explore the impact of the Internet and e-commerce on travellers’behaviours and their implications for hotel management in China.A survey of 300 hotel customers of different demographic backgrounds inChina indicates that approximately 70% use the Internet for searchinghotel information. About 40% of mainland Chinese hotel customers and50% of overseas hotel customers use the Internet for purchasing hotelproducts and services. Findings also indicate that there were virtually nosignificant differences between mainland Chinese travellers and overseastravellers in terms of the Internet usage patterns.The study provides hotel managers with information on hotel customers’behaviour in using the Internet. The key issues are:■ The Internet is the first-choice method used for searching hotelinformation, followed by travel agencies and brochures from travelagencies. In order to exploit the potential of the Internet as a newmarketing channel in the hotel industry, managers are advised to takeHORIZONS