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The reservation system is done by iHotel, but it's very, very nice. I have used Flash to do product showcasing for SME sites... but I tend to shy away from it in general.
We use it a lot for interactive maps and in one instance, for building a menu system. It is always a struggle for the designers to get it pushed through, however, which is good. Flash should only be used when there is a specific reason no other tool can do the job. Many sites have flash just for the sake of flash (or because they are paying some designer $$ and need to use her).
A lot of action scripting is used and it took a while to work out the bugs, but the end result is a very user friendly interface! Even added options to go back an edit the info being supplied before final submition.
To date I have not had a manual order placed :)
And on top of that, I have a way for them to contact me for a manual order