Impact of Online Fraud Committed in the Cause of Reservation in the Hospitality Industry
Chapter One
OBJECTIVES OF THE STUDY
This project work is aimed at studying the impact of online fraud committed in the cause of reservation in the Hospitality Industry with special reference to Mirage Hotel Enugu. Therefore, the objectives are as follows;
- To find out whether online fraud has been committed in the cause of reservation in Mirage Hotel Enugu.
- To determine various ways online fraud are perpetrated in the hospitality Industry
- To examine the impact of online fraud in the Hospitality Industry.
- To suggest ways of prevention of online fraud in the Hospitality Industry.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
introduction
Information technology (IT) is the science and technology of using computers and other electronics to save and transmit information (Cobanoglu, & Demicco, 2007). This information can include variety of data, such as sales, customers, market, stocks and shares, accounts, airplane tickets, and booking (Cobanoglu, & Demicco, 2007). Organizations that use IT need to tackle and administer electronic information safely and securely (Daler et al., 1989). The organization’s administrative managers are responsible for the protection of the organization’s assets and information (Cobanoglu, & Demicco, 2007). Like other organizations, IT systems in hotels comprise of both software and hardware. The basic software in a hotel includes the property management system (PMS), point of sale system (POS), call accounting system (CAS), and accounting system. The basic hardware in a hotel include front desk computers, POS terminals, back office computers, printers, routers, switches, firewalls, and network cables (Cobanoglu, & Demicco, 2007). The front and back office computers, POS terminals, and printers are connected to routers and switches with network cables that enable communication between these devices (Cobanoglu, & Demicco, 2007). Routers also connect the hotel network with other networks and the Internet (Cobanoglu, & Demicco, 2007). The firewalls protect the hotel network from outside attacks (Cobanoglu, & Demicco, 2007). The hotel’s local area network (LAN) typically consists of devices within the hotel’s premises (Cobanoglu, & Demicco, 2007).
Cyber Risks and Challenges in Hospitality Industry
There are five major risks and challenges that hotels have faced during 2015 and they still continue, according to Hiller (January 23, 2015). These five challenges are: “ 1. Identity theft leading to credit card fraud which has caused a lot of data breaches and information stealing from hotel’s network systems, 2. Silent invasions and Cyber-crime attacks that are powerful tactics from next generation criminals, During 2015, there are lots of cyber criminals who have targeted and attacked the hotels’ Wi-Fi and get the guests’ personal information as well as their passwords. 3. Unfortunately there are no security audit cycles in majority of the hotels and this issue will put the situation of the investors and the guests in a highly risk. 4. Physical crimes like terrorism that put the hotels in challenge and it can be more seen in South Asia and Middle East. 5. Loss of competitive advantage and image as well as lots of negative words of mouth is other challenges that hotels have faced due to the cybersecurity attacks” (Hiller, 2015). One of the unique features of hospitality industry is being a place for their customers’ comfort and confidence; thus it is basically rely on this reputation and abusing the customers’ information doesn’t make any sense in this regard. Unfortunately the reality shows that this confidence and reputation can’t be achieved easily due to the estimation of annual cost of cyber crime that can affect the global economy as much as $375 billion to $575 billion and these numbers are still growing according to Butler ((January 15, 2016), due to greater technology available in the market for cyber attackers that makes the hotels’ system more and more vulnerable. In this regard, hotels are also not completely innocent and without fault; because they can do a lot to prevent these cyber attacks; for example in the case of data breach which happened to Wyndham hotels, after the investigation, many mistakes were revealed which was made by the IT managers of whoever was in charge of taking care of information technology system and computers. Some of those mistakes according to Butler ((January 15, 2016), are mentioned below: • “failed to use readily available security measures, such as firewalls • stored credit card information in clear text • failed to implement reasonable information security procedures prior to connecting local computer networks to corporate-level networks • failed to address known security vulnerabilities on servers • used default user names and passwords for access to servers • failed to require employees to use complex user IDs and passwords to access company servers • failed to inventory computers to appropriately manage the network • failed to maintain reasonable security measures to monitor unauthorized computer access • failed to conduct security investigations • failed to reasonably limit third-party access to company networks and computers” With what was mentioned above, we will understand that some of these cyber attacks can be prevented by hoteliers; however these cyber crimes will not come to the end here since cyber attackers will find new ways to penetrate customers’ information and take advantage of them. One of the most famous ways to get into customers’ account information is opening a new website and pretend to be the hotel that the customer looks for by using the same brand name, logo, map, picture and all other information that belong to the real hotel (Mest, October 6,2015). According to Mest (October 6,2015) this process is called fake booking which The American Hotel & Lodging Association reported that, each minute there are about 480 fake online hotel booking website are creating and it is an amazing place for cyber criminals to take advantage. Data breaches in the world of business continuously increase and they remind us of how having a secure system, taking action on cyber risks and implementing different security tools are critical and necessary for any business (MASTER, October 8, 2015). According to MASTER (October 8, 2015), not having enough knowledge and in most cases (%80) not having any knowledge at all is the biggest mistake, which is made by business owners. Therefor, as long as businesses doesn’t have any idea about how to secure their business, hackers and cyber attackers will have more opportunity to take advantage of this issue which is like an easy treasure for them to gain. In addition, hackers and attackers are not only able to abuse the computer system of the hotels by using different type of phishing email, viruses and etc., but also they are able to attack and take advantage of Wi-Fi in the hotels (Clark, April 13, 2015). Most of the hotels now a days offer free Wi-Fi to their guests and the guests will access to the same network all over the hotel such as lobby, convention center, dinning room and all other places within the hotel (Clark, April 13, 2015).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine impact of online fraud committed in the cause of reservation in the hospitality industry. Mirage Hotel Enugu forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain impact of online fraud committed in the cause of reservation in the hospitality industry. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of online fraud committed in the cause of reservation in the hospitality industry
Summary
This study was on impact of online fraud committed in the cause of reservation in the hospitality industry. Three objectives were raised which included: To find out whether online fraud has been committed in the cause of reservation in Mirage Hotel Enugu, to determine various ways online fraud are perpetrated in the hospitality Industry, to examine the impact of online fraud in the Hospitality Industry and to suggest ways of prevention of online fraud in the Hospitality Industry. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn Mirage Hotel Enugu. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The whole discussion of this research is concluded in the given manner. Overall results indicate that Security Risk, Financial Risk, Trust, and Consumer psychology all are important dimensions of online reservations. All these variables are important for an organization’s functions and increasing efficiency and effectiveness. All above risk factors are not only important for online reservations but also effects sales of their brand.
Recommendation
This study can be helpful for all the hospitality industry related organizations who want to measure risk factors for online reservations. Similar studies should be conducted in other cities of Pakistan as well. Organizations in private sectors and other industries can also be included in further research work. Managers should make sure that they and their subordinates follow the process flows on online sales of their brand, and do not make any exceptions. They should work on highlighted areas and risk factors observed by customers while making online bookings and reservations. Managers should also make use of these risks as their strength by working on them and making their online sale easy and supportive to the end users. Apart from the available routine analytical procedures, they should also proactively use new analytical techniques to make the most of available data. Based on the analysis, they should pass their recommendations to the senior management as to how to reduce risk factors for any processes further, and whether any step can be taken in order to meet future goals.
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