The hospitality industry worldwide was among the major consumers of IT, both in the front office operations and back office, said Hotel Association of India (HAI) president and managing director of ITC Hotels SSH Rehman.

The Rs 500-crore figure could increase exponentially with more opportunities being unfolded as customers demand the latest, he added.Rehman was speaking at Infotech Hotels Expo 2000, the first of an annual series of conference-cum-exhibition on IT organised by the HAI.

Information technology in the hospitality industry is fast becoming the cornerstone of delivering competitive advantage, profitability and shareholder value, said Rehman, adding that the number of business travellers using technology to source information and book tickets and hotel accommodations is growing rapidly."Computer technology and its wider application to travel and tourism will change relationship between the vendor, intermediary and the consumer, as travel suppliers will be increasingly able to get their products and services to the consumer directly", said Rehman.

Rehman said the Internet is seen as a useful way of selling surplus inventories in hotels, with the majority of hotel chains launching special inventory programmes and weekend discount packages on intermediary sites for Internet bookings.

"Through IT, we have the opportunity to reach the consumer directly, build business partnerships, promote destinations, product and services and have cost and time saving", he added.

Calling information technology as the fourth generation of communication, Minister for information technology and parliamentary affairs Pramod Mahajan said that the ministries of information technology and tourism should work together and find possible areas of collaboration.Mahajan urged the hotel industry to become intelligent hotels and adopt information technology, and not merely remain luxury properties. Stating that IT-savvy customers now demand various IT related facilities in their rooms, Mahajan said if hotels do not become intelligent hotels, they will be wiped off.

Tourism secretary MP Bezbaruah said the infotech revolution will mean that hotels in India will have to change the way they work.