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 Sol Meliá Beginning "e-transformation" 
to solmelia.com;
Creates New e-business Division
April, 2000 - Sol Meliá has announced the appointment of Luís del Olmo Piñero, previously Sol Meliá�s Executive Vice President Sales & Marketing, as the new EVP of the recently created E-Business Division. His priority objective will be the adaptation and promotion of the company�s sales and marketing activities and procurement processes to the Internet environment, and the eventual transformation of Sol Meliá to �solmelia.com�. Sol Meliá has provided the new Division with start-up funds of 5,000 million pesetas, a little over 30 million euros.

Sol Meliá commitment to Internet since 1995

Sol Meliá�s interest in the Internet dates back to 1995 when the company published its first Website. One year later Sol Meliá became one of the first hotel companies in the world to provide Internet users with real-time on-line hotel availability and reservations on a second generation site.

Since then Sol Meliá has continued to develop improvements to its Web presence, functionality and content. In 1997 the company opened sections for its shareholders and the media while also implementing the company Intranet. In 1998 the company also became pioneers in the industry by making its Loyalty Programmes and related transactions available on-line.

Finally, 1999 was the year that the company chose to begin the modernisation of its entire information technology platform with the objective of adapting its systems to be prepared to face the requirements of the 21st. Century hotel and tourism industries. 

This commitment to the Internet has now been further reinforced by the plans announced to bring about a true e-transformation in all of the company�s internal and external management processes.

B2C Strategy (Business to Consumer)

According to Luís del Olmo, who currently retains his Sales & Marketing responsibilities, �this new initiative aims to generalise the use of the Internet throughout our business, and to actively promote the distribution and direct sales of our products and services. We aim to increase our ability to attract and retain customers through the perfection of our loyalty programmes and through improvements to the services we provide to current and potential customers, giving them extensive information on our hotels and on tourism in general�. He explains that, �this will provide incremental sales for our hotels all over the world and generate greater revenues for the company as a whole�.

B2B Strategy (Business to Business)

According to del Olmo, �the integration and better use of technology will also allow us a greater centralisation of our purchasing processes, with the on-line environment also permitting greater levels of efficiency, increased negotiating power with suppliers and consequent cost reductions�. 

�Inside� Strategy

He also adds that, �we will also be optimising the internal management of our business and the globalisation of our procedures and processes through greater use and development of in-house Intranet systems�.

Tourism: one of the world�s most popular e-commerce products

As we begin the 21st. Century, tourism has come to be seen as more of a necessity amongst the people of the developed world, rather than the luxury it was considered by previous generations. Ample proof of this has been seen in continuously increasing number of trips taken in the world each year and the significant contribution of tourism to economic development and employment.

This growth is not just limited to traditional distribution channels. The importance of tourism is also becoming apparent in the world of e-commerce, with �travel� being one of the most popular categories for purchases over the Internet.
 

E-commerce purchases by product.
(percent of on-line buyers who bought ...)
Products
1998
1999
Books 19% 31%
Travel 18% 26%
Computers 19% 24%
CD's 11% 15%
Clothes/Fashion 8% 14%
Source: PhoCusWright
 
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Contact:
Mónica Cerdá
Coordinadora de Comunicación y RRPP
Tel: 34.971.22.44.64 Ext.: 1149
[email protected]
http://www.solmelia.com
Also See: Five Percent of Best Western Total Bookings Were Made Via the Internet in 1999 / Mar 2000 
Online Travel Bookings Growth Continues, Infringing Upon the Role of Traditional Travel Agents / July 1999 

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