Omenahotellit: A Room with a View for the Internet Generation

The great advances in information and communication technologies (ICT) and the increasingly positive attitudes among consumers to embrace the Internet as an advanced commercial medium have spurred the emergence of many innovative and interesting business models even in the traditional sectors such as travel and tourism. This case study portrays the unique and novel accommodation concept launched by Omenahotellit (Omena Hotels), a new Finnish hotel chain which offers highclass accommodation at a rate that is significantly lower than the general price level. The company challenges the conventional service concept used by most other players in the field by fully exploiting the Internet and other forms of ICT in its operations. The customer books and pays for the room using the company’s proprietary online reservation system at www.omena.com, after which the room key a 5-digit numerical code is delivered to the customer electronically. All doors are equipped with code locks, and all possible work tasks, including the reservation and cancellation process, are completely automated. The hotels have neither reception personnel nor a reception desk, and there is no need for check-in or check-out procedures. The business model of Omenahotellit excels in cost-efficiency by offering the core product of hotel operations without expensive built-in auxiliary services. Nearly all tasks (housekeeping, security) are outsourced, and no intermediaries are used in the distribution channel.