Ecommerce, also known as electronic commerce, is a means of trading or selling goods or services online. First created in the late 1970s, ecommerce has grown dramatically in the last 3 decades. Companies like Amazon and eBay have become monsters in the ecommerce industry. While most everyday people are familiar with
Ecommerce played an integral role during the lockdowns. Even though many hospitality businesses were put on hold, ecommerce was an important tool to engage customers, activate consumer advertising, and increase sales safely.
This article will discuss the vital role of ecommerce in the hospitality industry.
The Role of Ecommerce in Business
Ecommerce is used in all types of businesses, big and small. Some advantages of using ecommerce include the following:
- It reduces production costs
- It allows for businesses to operate day and night (24/7)
- It allows businesses to run more efficiently
- It allows businesses to sell products to individuals in different states or countries
- It allows for businesses to connect with more people than they could otherwise
- It allows for payment to be sent instantly
When it comes to ecommerce in hospitality, the tourism industry is a major benefactor. While this sort of technology has been available for some time, the
Hospitality industry websites now encourage individuals to buy tickets, book hotels, book Airbnb, and so much more directly with ecommerce. This creates less hassle for both customers and company employees.
The Benefits of Ecommerce in the Hospitality Industry
The great part about ecommerce in the hospitality industry is that it offers benefits for everyone involved. For instance, hotel ecommerce simplifies the process of booking a room, minimizing the headaches that come with traditional
It offers a more personalized form of customer service
Ecommerce gives businesses the opportunity to access a customer’s personal information, including their name, gender, email address, phone number, birthday, previous purchases, and more. This information allows them to offer personal, special deals depending on the information they collect.
For instance, a business can email special birthday discounts to a previous customer. This opens the door to future purchases while working to establish a
It helps build relationships and promotes retargeting
Retargeting is an essential part of the hospitality industry. When a relationship is established with a customer, it is important to continue to keep them on your radar. In most cases, customers will not frequent a business without continued exposure, even if they like their services. Ecommerce allows businesses to:
- Invite them to loyalty programs that may offer special deals and insider offers.
- Use their information to figure out people with similar interests and backgrounds. This helps businesses find new customers to target via social media and marketing.
Dramatically increasing sales
The internet has made purchasing anything you want (at any time) incredibly easy. 20 years ago, you would need to go to a movie theater in order to purchase a ticket. Today, when you are looking for a movie online, you can purchase a ticket immediately. The convenience and immediacy make a sale much more likely.
With ecommerce, you can use that to encourage even more sales. For instance, once the movie ticket is purchased, the movie theater can offer a special offer for a movie membership at a discount. This membership will encourage them to go to the movies more frequently and hopefully buy snacks as well. Some movie theaters even offer full meals delivered right to your seat. Theaters may offer discounts on specific brands that are affiliated with the theater itself.
It encourages and boosts virtual reality technology
Once viewed as an innovative way to play video games, virtual reality technology has now infiltrated the hospitality industry. With VR technology, businesses can create a virtual tour experience for potential customers.
Whether it’s a restaurant, hotel, amusement park, bar, or ice skating rink, offering a virtual experience allows potential customers a unique,
Ecommerce can increase brand awareness
Having a recognizable brand is extremely important. The internet is perhaps the most useful tool for brand building in the world today. That’s another reason why ecommerce is so beneficial to the hospitality industry.
Since online sales can be completed anywhere, many businesses are able to cast a wide net. This effectively reels in new customers from all over the world. Through the use of social media and marketing, you can collect customers that can offer valuable information. After analyzing that information and learning what customers are looking for, you can meet people’s needs.
While building a brand may seem
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