Kindly read the case study. After reading it, answer the two questions. 1. Evaluate why the volume of reservations from smartphones has increased so rapidly. What future opportunities do smartphones offer to hotels? 2. Explain how the Cloud will help IHG with its operations. What are the benefits of cloud computing compared with having all systems stored on local computer hardware? Case Study: Intercontinental Hotels Group

IHG is strategically innovating in the area of mobile technologies. It is experiencing a 400% increase in the number of hotel rooms booked with mobile phones and has therefore created apps for both iPhone and Android. With these apps, guests can check availability, make a reservation, check themselves in and even unlock their rooms. Another strategic initiative involves the concierge staff, which now uses iPads to access information for their guests. This unleashes them from their desks so that they can engage more dynamically with hotel guests in different parts of the hotel. An application currently being developed by IHG is the ability for the concierge to create sightseeing itinerary of the area where the hotel is located and to transmit this to a guest's mobile device. IHG is also innovating strategically with its commitment to cloud computing for many of its operations. It is building a private cloud environment called Camelot to move its core customer relationship management (CRM) systems off its mainframes and onto industry-standard equipment. IHG's loyalty program, its analysis of current guest activity information and historical records, and its system for sending promotional material to individual guests run on Camelot. IHG is working on also using Camelot for its revenue management and room yield system that determines room rates. It is using public cloud infrastructure for application development and testing, and also to host web content accessible by customers worldwide. It is also evaluating moving key proprietary systems, such as room reservation software, into the Cloud.