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TRM 253 www.gurkanozer.org Information Systems for Tourism Industry

• An overview of current developments and major issues in the field of tourism and information technology

• Importance of IT for the various tourism organizations

• The impact of the Worldwide Web on traditional sales approaches

• models of technology use

• up-to-date properties of existing technologies

• inter-organizational systems in Turkey

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Effects of the Internet on customer behavior: the new travel buyer

• In 1997, thousands of travel agents in USA started to disappear...

• in the UK, 71% of consumers browsed for a flight, hotel or holiday in the last six months

•in USA, - consumers spent $79 billion in online travel, in 2006 - $125 billion in online bookings by 2011.

•Internet Advertising Spend Bypassed Newspaper in 2011

InternetKullanicilari

Internet

Banks,Credit Card Compaines,

PayPal, etc.

TRAVEL PORTALS

Hotels,Tour Operators, etc.

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• The Internet is an ideal technology for travel. It offers a vast information resource, immediate convenience and interaction that can provide a very personal experience. As the Internet reaches to every house and business, it will find a huge market of travelers looking for information "Just Beyond their Imagination, and only a click away".

• Today, Travel accounts for a nearly 35% (almost one third) of all annual online transactions in the world• UK has already lost 2000 travel agents in the past 3 years, and there will be many more joining them…We are going to see fewer agents making money 5 years from now…Lots of big travel companies are going to be non-profit…

• TURSAB must have 6000 travel agents; last elections in 2009 only 1400 agents voted for elections!...

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• Today's challenge to all players in travel field is not in finding passengers, but in "finding profit".

• International Tourism receipts reached 856 Billion usd in 2007 (WTO)

• 54% of British holidaymakers used social media platforms in the run up to their trip abroad to gain personal recommendations and reviews beforehand

• According to a September 2008 released study by Prophis eResearch, an estimated 19 million online Americans have visited one of the top ten travel 2.0 traveler community based sites such as TripAdvisor in the past 12 months.

• By 2012, a full 38 percent of all travel is expected By 2012, a full 38 percent of all travel is expected to be conducted onlineto be conducted online

WTO stats

UNWTO's UNWTO's Tourism 2020 Vision Tourism 2020 Vision forecasts that international arrivals are forecasts that international arrivals are expected to reach nearly 1.6 billion by the year 2020. Of these worldwide expected to reach nearly 1.6 billion by the year 2020. Of these worldwide arrivals in 2020, 1.2 billion will be intraregional and 378 million will be long-arrivals in 2020, 1.2 billion will be intraregional and 378 million will be long-haul travellers.haul travellers.The total tourist arrivals by region shows that by 2020 the top three receiving The total tourist arrivals by region shows that by 2020 the top three receiving regions will be Europe (717 million tourists), East Asia and the Pacific (397 regions will be Europe (717 million tourists), East Asia and the Pacific (397 million) and the Americas (282 million), followed by Africa, the Middle East million) and the Americas (282 million), followed by Africa, the Middle East and South Asia. and South Asia.

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Basically travel portals started by selling budget airline tickets over GDSs. Their interfaces (API) softwares connect to GDSs such as AMADEUS, SABRE, and make possible to check availability online & real-time..And therefore to sell..

Next, the giant hotel database being sold inside the GDSs became their hotels section! And the same for rent-a-car and all other providers, even theater tickets!

In a very short time, it was clear that those GDS rates of hotels & ren-a-car companies were NOT SELLABLE..

Now, Travel Portals start to establish their own database of hotels, car rental agencies, bus-train tickets, etc. But this time, it is their OWN database, and their OWN PRICES...Meaning, no longer the AGENT commissions...Now they are giant TOUR OPERATORS on the web...

Online-Booking Travel Portals

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Travel Portals : giant travel shopping centers of web..

http://www.travelocity.com

http://www.expedia.com

http://www.bookinturkey.com

http://www.venere.com

http://www.elong.net

http://www.orbitz.com

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Basically travel portals started by selling budget airline tickets over GDSs. Their interfaces (API) softwares connect to GDSs such as AMADEUS, SABRE, etc. and make possible to check availability online & real-time..And therefore to sell..

Beginning of IT use in tourism industry (CRS of Amadeus, Galileo, Worldspan)

Next, the giant hotel database being sold inside the GDSs became their hotels section! And the same for rent-a-car and all other providers, even theater tickets!

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Web 2.0

• Platform for participation, connecting people and enterprises

• More sociable approach to creating and delivering content

• Emphasizes open and transparent communication and

• possibilities to use and recycle open source information

• User generated content (UGC) will remain King.

• Only 14% of users trust marketing messages,whereas 78% trust recommendations of other

consumers.

• This highlights something many online marketers have known for a while: user generated content can be very beneficial.

blog comments, product reviews, video reviews, creative competitions, galleries, etcç

With more than 15 million reviews and opinions and nearly 30 million unique visitors a month, TripAdvisor claims to be

the largest travel community on the web.

Virtualtourist allows people to create and share blog-like pages

Of their destinations, including tips and photos.Tips can be added to your own "Trip Planner", which

allows you to create a personalized travel guide.

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ICTs (Information & Communication Technologies)

• Tourism products are therefore almost exclusively depend on "representations & descriptions" .

Dimitrios BUHALIS - Information Technology for strategic tourism management

• Tourism is a very information intensive activity. Unlike durable goods, intangible and variable tourism services cannot be physically displayed or inspected at the point of sale before purchasing. Tourism services are bought before the time of their use and away from the place of consumption.

• Communication and information transmission tools are therefore indispensable to the global marketing of tourism industry

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TRM 253Information Systems for Tourism Industry

• ICTs (Information Communucation ICTs (Information Communucation Technologies) and E-TourismTechnologies) and E-Tourism

• Leisure vs. Bussiness TravelLeisure vs. Bussiness TravelPackage vs. IndependentPackage vs. Independent

• Web 2.0 > Tourism 2.0Web 2.0 > Tourism 2.0

• E-Destinations and DMOs E-Destinations and DMOs (Destination Management (Destination Management Organizations)Organizations)

• Emails & BlogsEmails & Blogs• up-to-date properties of up-to-date properties of

existing technologiesexisting technologies

• inter-organizational inter-organizational systems in Turkeysystems in Turkey

• Travel PortalsTravel Portals

• Asignments!Asignments!

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TRM 253 Group Assignment (WEB PAGES)• affordable turkey

http://splendorsofturkey.com/affordable_turkey/

• luxury turkey http://splendorsofturkey.com/luxury_turkey/

• ecotourism, national parks and adventures in turkey http://splendorsofturkey.com/ecotourism

• health tourism in turkeyhttp://splendorsofturkey.com/health_tourism/

• vacations in turkeysplendorsofturkey.com/vacations_turkey/

• cultural tours in turkeyhttp://splendorsofturkey.com/cultural_tours/

Travel Portal and Hotel visits in Istanbul There will be a case study evaluation (maximum 15 minutes slide presentation). More details about the case study will be available at the Course Instruction Website.

Same teams will visit an online travel portal or 3 hotels located in Istanbul, ask questions and prepare a report on this visit. Duration of visit should not take more than 1 hour. Please apply to me for a list of companies to be visited. Report max. 8 pages, presentation max. 15 minutes.

In order to get better insider view, students are encouraged to enter imaginative tours, hotels etc. into their systems, and see how they function & communicate. For hotels, their web strategy, web based occupancy, etc.The list of companies and hotels will be posted soon.

TRM 253 Group Assignment (Travel Portal & Hotel visits)