Slide 19.1 Cooper et al: Tourism: Principles and Practice, 3e Pearson Education Limited 2005, © retained by authors Chapter 19 Information Technology in

Slide 19.1

Cooper et al: Tourism: Principles and Practice, 3e Pearson Education Limited 2005, © retained by authors

Chapter 19Information Technology

in Tourism

Slide 19.2


This Lecture will give you

• An understanding of the key ICT and eTourism concepts;

• An appreciation of the generic ICTs applications in the tourism industry;

• A knowledge of the basic concepts of computer reservation system and global distribution channels;

• A comprehension of the impact of the Internet and ICTs tools on the structure and components of the tourism system; and

• An appreciation of the strategic importance of ICTs and the Internet for the future of each stakeholder in the tourism industry.

Slide 19.3


Introduction • The tourism system is inevitably influenced by the new business environment

created by the diffusion of ICTs

• Information Technology is one of the external environment elements for tourism,

travel and hospitality

• In recent years technological developments have supported tourism innovation and

vice versa

• ICTs have become an imperative partner for tourism

• They offer the interface between consumers and suppliers globally

• ICTs provide the tools and enable the evolution of tourism demand and supply

Slide 19.4


• eTourism reflects the digitisation of all processes and value chains in the tourism, travel, hospitality and catering industries

• At the tactical level it includes eCommerce, eProcurement and all ICT empowered functions

• eTourism applies ICTs for maximising the efficiency and effectiveness of the tourism organisation

• At the strategic level it revolutionises all business processes and changes the industry structure

• Hence it revolutionises the entire value chain and the strategic relationships of tourism organisations with all their stakeholders

The eTourism concept

Slide 19.5


• eTourism determines the competitiveness of all tourism organisations

and destinations

• Takes advantage of intranets, extranets and the Internet

• It includes all business functions

• eTourism bundles together three distinctive disciplines

– Business and management

– Information systems and information management

– Tourism, travel, hospitality

The eTourism concept (continued)

Slide 19.6


The eTourism mixThe eTourism concept and

eTourism domains

Source: Buhalis, (2003) eTourism, FT Prentice Hall

Slide 19.7


Best operationalpractices in tourism by ICTs

• Major drivers make ICTs an integral part of the tourism industry– Economic necessity

– The proliferation of the Internet

– Development of 3G mobile devices and interactive television

– Improvements in ICTs' price/performance ratios

– Rising consumer expectations

– ICTs can also assist the reduction of operation and communication costs

Slide 19.8


ICTs changes bestoperational practices in tourism

• Integrating operational systems

• Maximising internal efficiencies

• Decreasing the number of people required for back office jobs

• Reducing the amount of face to face or telephone communications

• Enabling consumers to have access to all information that was previously only obtainable by direct contact with tourism organisations.

Slide 19.9


ICTs assist thereduction of operation and

communication costs by:

– Integrating operational systems– Maximising the internal efficiencies– Decreasing the number of people required for back

office jobs– Reducing the amount of face to face or telephone

communications– Enabling consumers to have access to all information

Slide 19.10


Critical tourism andhospitality functions supported

by ICTs Front office: reservations, check-in, payments Back office: accounting, payroll, human resources management, marketing,

procurement Communication with consumers and partners Control of business processes and personnel Customer entertainment and service Marketing research and industrial espionage Reaction and management of unexpected events Flexible and dynamic pricing Differentiation and personalisation of products Monitoring performance indicators Building feedback mechanisms

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Telecommunicationsand Networking tools in the

Tourism Industry• Telephone, telex and fax• Mobile devices • Telex• Videotext and new data• Teletext• Electronic Data Interchange (EDI)• Inter-organisational and Intra-organisational networking• Virtual reality • Information superhighway (converges media,

telecommunications and information technology)

Slide 19.12


Software classification scheme

Source: Buhalis (2003) eTourism, FT Prentice Hall, based on Werthner and Klein (1999) Information Technology and Tourism: A Challenging Relationship,Springer-Verlag, Vienna

Slide 19.13


Software classification scheme

Source: Buhalis (2003) eTourism, FT Prentice Hall, based on Werthner and Klein (1999) Information Technology and Tourism: A Challenging Relationship,Springer-Verlag, Vienna

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Examples of ICTApplications in the tourism

industry used currently Entire range of hardware, software and netware Stand-alone computers and network devices Office automation, reservation, accounting, payroll and procurement

management applications Portable/wireless communication devices Internal management tools such as management support systems, decision

support systems and management information systems Tailor-made internal management applications Databases and knowledge management systems Internet/Intranets/Extranets Networks with partners for regular transactions (EDI or Extranets) Networking and open distribution of products through the

Internet

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Examples of ICTApplications in the tourism industry

used currently (continued) Computer Reservation Systems (CRSs) Global Distribution Systems (GDSs) (e.g. Galileo, SABRE, Amadeus,

Worldspan) Switch applications for hospitality organisations (e.g. THISCO and WIZCOM) Destination Management Systems (DMSs) Internet-based travel intermediaries (e.g. Expedia.com, Travelocity.com, Preview

Travel, Priceline.com etc) Mobile/WAP based reservation systems Traditional distribution technologies supporting automated systems (e.g.

Videotext) Calling centers Interactive Digital Television (IDTV) CD-ROMs Kiosks and touch screen terminals

Slide 19.16


LastminuteCase Study

Mission Statement

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Figure 19.1 lastminute.com UK homepageSource: lastminute.com

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Figure 19.2 TiscoverSource: tiscover.com

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Major ICTapplications in the tourism industry

• Computer Reservation Systems (CRSs) assist tourism enterprises:– Handle their inventories profitably – Facilitate the tourism products distribution – Normally operated by airlines, hotels and tour operators – Distribute products nationally or globally– Use computerised or videotext systems – Use mainframes and extensive networks to support remote terminals in travel

agencies – Instant update of information

• Advantages: support reservation/confirmation/purchase of a wide range of tourism products

• Disadvantages: installation and usage costs, lack of user friendliness and bias in favour of their vendors

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Major ICTapplications in the

tourism industry (continued) • Global Distribution Channels (GDS)

– incorporate a comprehensive range of services and products – provide a global distribution info-structure – satisfy consumers' need for easy access – provide transparent and easy to compare information

• Tourism suppliers use CRSs & GDSs to manage & distribute their capacity as they– enable flexible pricing & capacity alterations– reduce communication costs – provide managerial information on demand patterns or competitors' position– serve the travel trade (intermediaries) – support quick and firm responses to customers' enquiries

Slide 19.21


Functions of intranetsin tourism (continued)

• Communication between departments•business functions•networking and information exchange•human resources management•staff coordination

• Communication and function with branches•coordination of operations•reports and budgeting•availability/prices/information orders from headquarters/administration•share of common resource databases for customer and operational

information

• operational planning• accounting/billing• payroll• supplies management

Source: Adapted from Buhalis (1998) Strategic use of information technologies in the tourism industry, Tourism Mangagement, 19 (5), 409–421

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Functions of intranets in tourism

• Information exchange within a tourism organisation• Management Support

• strategic planning• competition analysis• financial planning and control• accounting and finance• marketing research• marketing strategy and implementation• pricing decision and tactics• middle term planning and feedback• management statistics/reports• operational control• management functions

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Functions of extranets in tourism• Links between partners

– availability/prices inquiries• negotiations and bargaining

– reservations and confirmations• lists of groups/visitors• receipts/documents• vouchers and tickets production

– travelling facilitation• follow up progress• keep partners informed about plans• amend plans should unexpected developments arise• follow up developments

– feedback and clearing commissions• payment and commissions clearance• feedback and suggestions• complaint handling• building loyalty through data mining

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Functions of Internet in tourism• Information distribution • Electronic commerce

• Request availability/prices/information

• Reservation and confirmation

• Expanding value chain with complementary products

• Deposits and full settlements

• Specific requests/enquiries

• Feedback/complaints

• Ancillary services

Slide 19.25


Conclusions

• Information Telecommunication Technologies increasingly determine the competitiveness of tourism organisations

• Tourism industry should take advantage of the Internet, Extranet and Intranet to manage its representation to the world, its internal efficiencies and its relationships with other partners.

• ICT-enabled tourism organisations will benefit and grow in the future

Documents

Slide 19.1 Cooper et al: Tourism: Principles and Practice, 3e Pearson Education Limited 2005, © retained by authors Chapter 19 Information Technology in