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Chapter 7

Operational management and

distribution in e-tourism

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Chapter Objectives Tourism distribution mechanisms Functions and benefits through the

tourism distribution channel How ICT supported eTourism

management operation? ICT operation in Airline (eAirline) ICT operation in Tourism Service (eTour

Operators and eTravel Agencies) ICT operation in Hotel (eHospitality)

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Tourism distribution mechanisms

Distribution becomes one of the most critical factors for the competitiveness of tourism organizations and destinations.

Setting appropriate distribution channels effectively allows tourism organization to build bridges with consumers and provide mechanisms for purchasing tourism products.

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Distribution channel is any organized and serviced system, created or utilized to provide convenient points of sale and access to consumer.

Most distribution channels therefore provide information for prospective tourists, bundle tourism products together, and also establish mechanisms that enable consumers to make, confirm and pay for reservations.

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Discussion

Discuss on impact of ITC development to some local distributor (tour agency and tour operator). How they react to this change?

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Internet-supported eTourism management

Tourism organizations use ICTs to communicate with all stakeholders and to manage and control their inventory.

They use the Internet for eCommerce (selling products directly to their consumers.)

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Internet presence is part of the promotion mix for both tourism enterprises and destinations.

Developing interactive facilities enables consumers to offer feedback to enterprises and to communicate dynamically.

Employment and HRM is also empowered through the Internet as increasingly tourism organizations rely on the internet for advertising vacancies & recruitment. (let check www.CamHr.com)

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Operation and Distribute System

ICT operation in Airline (eAirline) ICT operation in Tourism Service

(eTour Operators and eTravel Agencies)

ICT operation in Hotel (eHospitality)

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From CRSs to GDSs

CRSs on one hand aimed at organizing airlines internally, by offering them a tool to manage their inventory, and on the other aimed to allow distributors and partners to access information about availability and prices.

eAirline

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In the mid 1980s, CRSs developed into much more comprehensive global distribution system (GDSs), offering a wide range of tourism products and providing the backbone mechanism for communication between principals and travel agencies.

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GDSs provide one-stop customer service at both the point of departure and the destination.

GDSs have effectively become travel supermarkets offering information and reservation capabilities for the entire range of travel products, including accommodation, car rentals, schedules for non-air transportation.

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Airlines types and ICT utilization

There are several different kinds of airlines, which can be characterized mainly by type, ownership and routes.

Different types of airlines use ICTs differently and have a different emphasis on their online presence.

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Although most of them take advantages of the basic ICT modules Scheduled carries No-fills or low-cost carriers Charter airlines

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Critical issues for the future success of airlines

Technology will assist airlines to integrate their operational and to control and coordinate all their business and management functions.

The eAirlines’ futures will be determined by their ability to use ICT for achieving their vision and mission.

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Airlines around the world face a wide range of challenges and ICTs provide several tools to help them to address these challenges.

Safety and security have emerged as being the most critical challenges for airlines.

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Frequent travellers demand speedier check-in processes and a higher degree of flexibility and control over their own travel arrangements.

More passengers prefer self-service check-in rather than queuing up in overcrowded terminals.

case of AirAsia, Jetstar Airline

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Providing self-service through kiosks and wireless technologies can mean operational and productivity gains, improved customer satisfaction and reduced costs.

With wireless solutions, airlines can offer their passengers the ability to purchase through a handheld device virtually anywhere, at any time.

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eTour Operators and eTravel Agencies

Tour operators undertake a wide range of activities in order to negotiate with suppliers as well as to prepare and sell their packages to consumers.

They normally pre-reserve and pre-purchase a number of travel services and set up a package at a single price.

Tour operator functions and types

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Packages are standardized and repetitive and they offer transport and accommodation, while sometimes they include catering, entertainment, other facilities and service.

Tour operating is a process of combining aircraft seats and beds in hotels in a manner that will make the purchase price attractive to potential holidaymakers.

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The use of videotext as an early leisure travel network

In the early 1980s, tour operators realized that they had to capitalize on ICTs and use more effective distribution methods.

They wanted to enhance their productivity improve their holiday-capability management, reduce the labor cost of telephone operators and provide a better service to both agencies and consumers.

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eTravel Agencies

Holloway (1998) suggests that the main role of agents is to provide a convenient location for the purchase of travel.

At the locations they act as booking agents for holidays and travel, as well as a source of information and advice on travel services.

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Agencies carry limited financial risk, as they do not purchase tourism products in advance. They only reserve, confirm, purchase, issue travel documents, i.e. tickets and vouchers, on customer request.

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ICTs provide a wide range of tools for travel agencies, by providing the mechanism for information exchange and tourism product distribution.

ICTs enable agencies to build complicated travel itineraries in minutes, while providing up-to-date schedules, prices and availability data.

Travel agencies use ICTs to access tourism suppliers’ database, to verify availability and rates, and to confirm reservations.

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Accommodation establishment types and ICT utilization There are a great range of hotel

types and categories, resulting in a wide range of ICT applications being used.

Understanding the variables characterizing a hotel property can therefore help us to appreciate their ICT requirements.

eHospitality

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Variables characterizing accommodation establishments

Factors Location: urban/rural/seaside Size: small/medium/large properties Ownership and affiliation:

family-run/Corp/franchising/consortia/state-owned

Price: exclusive/expensive/affordable/inexpensive

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Activities: sports/all-inclusive/clubs/farmhouses

Services: hotels/B&B/rooms to let/self-serviced apartments

Reasons of visiting for travellers: leisure/business/conference/seminars/incentives

Reasons of visiting for locals: functions/special occasion

Proximity to transportation terminals: airport/port/railway/roadside

Primary market: youth hotel/university and school accommodation/hospices

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Lessons and issues for the future of eHospitality

Customer care and recognition become central for the successful hospitality organization of the future.

Customer demand more and are increasingly difficult to satisfy.

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To please them, hotels need to appreciate customer motivations, circumstances and even mood and should work harder and differently every time.

Stemming from the Internet are wireless devices and bluetooth technology, all of which promise to be the next big thing in hotel operations.

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The ability to recognize guests and have access to guest data via biometrics would help to improve the levels of service.

Hotel rooms will increasingly offer more ICT capabilities to provide in-room entertainment as well as working facilities, emulating the home away from home and office away from office principles.

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Show

Property management system Guesthouse (Room Management

System) Tour operator management

system