Author:
Myat Aye Aye,Sharkasi Nora,Rajasekera Jay
Abstract
PurposeStudies show that internet has become a major force propelling growth in tourism sector in many countries. An appropriate diffusion of the information and communication technology (ICT) services can facilitate visibility of hotels and lodges on search sites and third-party booking websites and thus influence demand. It also helps leverage the use of social media for promotion and customer acquisition purposes. Recently, Myanmar, with impressive historical world heritage sites, is witnessing a tourist boom; more hotels are opening up and achieving competitive advantage by offering free internet connectivity to guests and locating their premises in the vicinity of an ICT infrastructure. The purpose of this paper is to investigate ICT readiness to support the lodging industry in Myanmar by focusing on one sub-index of the Network Readiness Index (NRI, a term heavily used by World Economic Forum). The paper focuses on the “Network Use” component of NRI, pertaining to the effect of the “quality of the Internet connection” available to lodges, and its association with the following dimensions: customer service: the availability of ICT services to guests, such as internet connectivity and availability of ATM in the vicinity; digital marketing: the use of social media, keeping records of guests and analyzing aggregate data to extract business insights; and business-to-business online booking: the use of online booking via major third-party intermediary websites like Expedia, Booking.com and Agoda.com.Design/methodology/approachSurveys were conducted in three major touristic cities in Myanmar: Bagan, Mandalay and the capital city, Nay Pyi Taw. A total of 101 valid questionnaires were used. Survey questions were centered around the following themes: internet connection problems, digital marketing activities, and online booking directly or via third party digital intermediary. The data are presented and interpreted by descriptive statistics and regression analysis.FindingsThough, Myanmar is new to internet and commercial use of ICT, the awareness of the importance of leveraging social media and online booking for business development is surprisingly high in the lodging sector. On average, about 80 percent of surveyed hotels are present on the WWW through a dedicated hotel website. However, most websites lack an online booking capability. As a result, and due to a global trend, online booking through third-party intermediaries has become the dominant option for hotel booking arrangements in Myanmar. Agoda, founded in Bangkok in 2002, was found to be the number one choice for online booking intermediary in Myanmar, followed by Booking.com. Analysis of the logistic regression revealed that it was highly likely that areas around ATMs have better internet connectivity. As expected, it was also found that it is very unlikely that hotels reporting a problem in internet connectivity will be able to provide internet service to their guests. Despite the presence of problems in internet connectivity in Mandalay and Bagan cities, located away from the capital; most hotels in these cities resort to leveraging social media for promotion and customer/guest development. The analysis also revealed that cities located away from the capital are more aggressive in leverage online third-booking intermediaries.Research limitations/implicationsWhile researchers were hoping for a higher participation rate in the survey, especially in the city of Mandalay, data collection was challenging, a number of hotels/lodges denied participation. This may have some implications on the generalization of results. However, over 70 and 45 percent of hotels/lodges in the capital city and the ancient city of Bagan, respectively, had participated in the survey.Practical implicationsTourism has a great potential for growth in Myanmar. This research recommends ways to achieve and sustain competitive advantage for the lodging sector, which is vital for tourism.Originality/valueThough a considerable research exists on tourism and the recent advances of the ICT sector in Myanmar, the country’s readiness for the actual usage of the internet for the development of tourism has not been specifically addressed. This paper explores this with compelling research findings useful for policy makers as well as players in the tourism sector.
Subject
Business and International Management,Strategy and Management
Cited by
7 articles.
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