Task Journal Entry. The Journal function in Interact2 must be used. External journal sites are not permitted. If your country geo-blocks Interact2 website or your circumstance prevents you from...

Task
Journal Entry. The Journal function in Interact2 must be used. External journal sites are not permitted. If your country geo-blocks Interact2 website or your circumstance prevents you from accessing the Internet (eg. due to a disability or if you are in a correctional centre), please contact your lecturer immediately. If it is an office/organisation firewall preventing access, you must find an alternative Internet access point to complete this task.
Write a business report based on the following:
A group of ten hotel chains have decided to merge their business to combat market pressure for low priced hotel accommodation. The new chain called StayTogether has over a thousand hotels from all categories (backpacker, bed & breakfast homes to luxurious suites) around the world. It combats the sale of hotel rooms via popular web sites such as booking.com, hotels.com and so on which reduces their profits and waters down their corporate image. Bookings will be from a single web site only (with a complementary mobile app) and prices are fixed through the year with peak pricing during popular periods.
Senior management has finalised on the following decisions:
1. A customer loyalty scheme called StayTogether Loyalty will reward customers with airport transfers, car parking on site and free nights.
2. If a kitchen and standard restaurant is on site, buffet breakfast and dinner is included in the hotel room price. This is to add to the dollar value earned per guest. Exclusive restaurants on site will charge extra.
3. If travellers arrive by selected airlines, rebates are given. Customers can choose credit for free nights or meals.
4. A corporate social responsibility programme to allow customers to nominate the charity where they want the chain to donate to. 1% of their total (billable) expenses will go to this charity.


Write a business report outlining the above case, stating assumptions you make at the beginning of your report. Provide critique into the management decisions substantiating with reference to literature. In your report, make the difference between Information Systems (IS) and Information Technology (IT) issues and how it will affect customer choice, continued patronage, brand loyalty, etc. Suggest how to attract new customers (from competitors) and any other new business opportunities that may arise with such a set up (eg. technological services on site, personalised automated tour guide, etc.). All these should be substantiated with references.