Americans are increasingly researching and booking travel reservations online with airlines, hotels and car rental companies, making the travel-agent industry increasingly obsolete.

According to the Pew Internet & American Life Project's December 2006 survey, 63 percent of the more than 140 million Americans who are online have used the Internet to book travel reservations. In its 2002 survey, the project found that the travel sector was the fastest-growing online destination, up 87 percent from 2000.

woman at airport
Photo courtesy iStockPhoto
More consumers are booking travel online.

A November 2005 survey published by the American Hotel and Lodging Association reports that 49 percent of hotel guests booked their stay online, 27 percent directly through the hotel's Web site and 22 percent through travel sites such as Orbitz and Expedia.

Besides travel, people are also using the Internet to reserve tables at the hottest restaurants. According to the National Restaurant Association's "2007 Restaurant Industry Forecast," a full 11 percent of consumers have used the Internet to make restaurant reservations.

Whether a hotel room, spa treatment or dinner, every time we make an online reservation, we expect to receive a confirmation e-mail immediately, usually with a confirmation or tracking number.

These reservation confirmations are one of many electronic notifications and automated reminders that we receive via e-mail, SMS (text messaging), phone or fax. These notifications help us track purchases, financial accounts, reservations and appointments.

Reservation confirmations have become such a common part of online life that it's easy to take them for granted. But that would overlook their importance both to the consumers who receive them and to the companies that rely on them to do business.

Here are just some of the advantages of reservation confirmations and reminders:

  • They help busy consumers manage their schedules and appointments.
  • They lower the number of "no-shows" at restaurants, hotels or spas by reminding people of their reservation (and their obligation to cancel it if their plans have changed).
  • They enable businesses to fill seats and rooms at the last minute in the case of a cancellation.
  • They allow companies to offer special discounts and deals to help fill off-peak dates and times, like the classic "Early Bird Special."

In this article, we're going to explain how reservation confirmations work, for both consumers and businesses, and then explore how confirmation e-mails and text messages can be powerful marketing tools in the online age.

First, let's take a look at the technology that powers reservation confirmations and some of its most popular applications.