Dynamics of Introduction of the Internet by Accommodations in Kusatsu Onsen, Gunma Prefecture from the Viewpoint of Corporate Strategy

Abstract

This study investigated the dynamics of introduction of the Internet by accommodations through a three-phase analysis constituting promoting tourism, taking reservations, and building or maintaining customer relationships in a case study of the Kusatsu Onsen spa resort, Gunma prefecture, from the viewpoint of corporate strategy.

The trend in the rate of utilization of the Internet by accommodations in Kusatsu Onsen shows that those with larger buildings or with frequent participation in local organizations is high. Most accommodations still maintain traditional reservation methods such as booking over the telephone or through travel agencies, although the introduction of Internet reservation facilities has spread throughout almost the entire area. In contrast, Internet use in the other two phases is limited, although there are many exceptions. Even accommodations in large buildings or with frequent participation in local organizations are reluctant to rely on the Internet during phases of tourism promotion and building or maintaining customer relationships. On the other hand, some accommodations in small buildings or with less frequent participation in local organizations have utilized the Internet aggressively in those two phases.

As the background to the heterogeneity of Internet utilization, the transformation of the tourism market and the changing corporate strategies of each type of accommodation were identified. Accommodations managed under conventional corporate strategies, regardless of the decrease in the number of large tourist groups, which have few employees and little promotional funding, have not made Internet utilization a high priority. In contrast, accommodations under management that perceives a need for new strategies to attract individual tourists have utilized the Internet both to promote tourism and then build or maintain relationships with customers; the management of these accommodations has regarded the Internet as a means to achieve a switch in corporate strategy after the end of the period of high economic growth or as a means to differentiate their facilities in the tourism market.

Therefore, accommodations have utilized the Internet selectively depending on their funds or corporate strategies along with the diffusion of ICT in society and transformation of the tourism market. Active utilization of the Internet is not always the best solution for accommodations in Kusatu Onsen spa resort. Furthermore, accommodations in Kusatsu Onsen take a diversified approach to this process and can be divided into those that attempt to maintain the previous corporate strategy and those that attempt to establish modern strategies to attract individual tourists through online marketing.