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Late Hotel Rooms – An Ecommerce Business Close to Failure?

Will the internet die under the strain of the ecommerce boom? The huge increase in internet usage over the last few years has not only revolved around social networking but also around online commerce. The volume of people using Google was surpassed by the number of people using Facebook during the run up to Christmas in 2009/10. So what does this tell us for the future of building a business on the internet?

Let’s take an example: The online hotel booking business is huge. It naturally lends itself to an internet based platform and many of us will have noted the demise of the local travel agent in our local market town.

It is the fact that late hotel rooms can be booked from anywhere at any time using a minimum of fuss. The hotels can be assessed, viewed and booked all in a couple of minutes. But it is the increasing dependence on these online booking systems that is beginning to cause problems for the industry as a whole. 분당룸싸롱

As users of the internet become more used to using these late hotel room search facilities they also become more impatient. As we know, the risks of using credit cards online have always existed and to be honest have not really diminished despite the best efforts of the credit card industry. This puts a huge amount of pressure on these late hotel room booking websites to accept credit card payments, pre-check them against fraudulent use, accept them and take a payment all in a couple of seconds. As all online merchants know, a proportion of all online sales are fraudulent and result in charge backs; charge backs result in penalties both to the credit card issuer and to the online store operator. In fact, if too many charge backs occur in a short period of time, the card companies increase the length of time that they hold on to the clients money.

What does all this mean to the online hotel booking industry? It has huge implications, because if the online companies cannot guarantee that they will be in receipt of payment long after the customer has purchased and utilised a night’s accommodation then the whole system will begin to collapse.

Does this mean we will see the return of the local travel agent? I don’t think so because they will still suffer the same issues, and most probably would be using the same booking systems anyway. What it does mean is that customers will face ever more stringent security tests as they go through the online booking process.

Already the MasterCard system will often produce a pop up window demanding extra information relating to secure passwords over and above the usual request for the csv number from the back of the card. This puts extra strain on late hotel room booking websites as they have to be built in such a way as to receive all this data securely. It is a mad world of security that is still so easily corrupted by fraudulent use.

 

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