TRM 253 Information Systems for Tourism Industry

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TRM 253Information 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...

• Today..More than 65% of flight tickets in USA are sold online

• Today, the internet processes a striking 52% of all hotel bookings.

• 1.7 billion consumers have access to the internet and this number is growing by the day.

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)

• Yahoo Travel in a recent survey indicated Yahoo Travel in a recent survey indicated 61% of 61% of people go on-people go on-line for travelline for travel

• 2008 fact from USA hotel industry: 75-80% of hotel stays are not intermediated!...

• 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.

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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ONLINE DESTINATIONS

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ONLINE DESTINATIONS

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

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


Tourism & ICTs

• Thus, tourism & ICTs increasingly provide strategic opportunities for powerful tools of economic growth, redistribution of wealth and development of equity around the globe.

• However they also instigate new challenges and threads for players that are unable to cope with the developments and are left behind technologically


• Tourism & ICT are 2 key catalysts for enabling dynamic, innovative and knowledgeable communities and organizations to communicate and interact with outside world in order to import expenditures & benefit.


• Question: Whether technological developments drive business strategies or visa versa?

• Answer: Business Strategy & mission of organization should lead their processes and technological developments.


Tourism

• However, it is also evident that unless management appreciates their technological strengths and weaknesses, they will be unable to implement these strategies.

• It is only a matter of time before technological progress provides trouble-free solutions at justifiable costs. Technologies have been surpassing their initial expectations to become commonplace.


Information Management

• Information Management (IT Dept.) is responsible for providing information and communication services and resources for the products and services, operations, management and control activities and co-operative work of an organization.

• It is therefore charged with planning, developing, implementing, operating, and maintaining the information technology infrastructure and all applications of an organization. This is an ongoing process, requires feedback and adjustment at each stage

• Information Management enables organizations to develop systems and processes in order to transform raw data and input from the external and internal environment through software to meaningful & useful information which can support business processes & decisions.This is an ongoing process, requires feedback and adjustment at each stage .



Tourism Determines the competitiveness of an organization.

• Etourism takes advantage of Intranets for reorganizing internal processes; extranets for developing transactions with strategic partners, and internet for interacting with all the stakeholders.


• Etourism is the digitization of all process and value chains in the tourism, travel, hospitality and catering industries that enable organizations to maximize their efficiency & effectiveness.


• The key is to recognize where in the process these opportunities exist and to apply the appropriate level of technology.


Tourism

• Time & Speed are the key factors of future business. Only organizations that create real value for their customers and partners will survive..

• The greatest problem when introducing new technology is that you can apply improved technology to a bad process.

• On the other hand, the greatest gain and return are made when both process and the applied technology are optimized.


• Sometimes it is much better for organizations to wait until the marketplace and technologies settled, rather than investing heavily on new technologies and get the associated risks. Try not to loose their positioning and marketshare.• They need to develop a close

understanding and assciation with their target markets and use appropriate and affordable technology to serve their needs.


• However, employing the right technology at the right time is DIFFICULT TASK. Technology and its applications move much faster than the decission making of corporations.

Tourism



• Sales and intermediary organisations need Sales and intermediary organisations need to rationalise a selling tool (B2B or B2C) to rationalise a selling tool (B2B or B2C) capable of real time operationscapable of real time operations

• need to offer, without interruptions, only need to offer, without interruptions, only what is really available, as soon as what is really available, as soon as availability shows up availability shows up

Tourism


• It is, therefore,It is, therefore, proposed that technology use for proposed that technology use for tthe tourism industry is influenced by he tourism industry is influenced by

(1)(1) organizational propertiesorganizational properties

(2) personal characteristics of the leader(2) personal characteristics of the leader

(3) the fit between technology and organizational(3) the fit between technology and organizational activitiesactivities

Tourism – Stages of IT use




Tourism – Stages of IT use• The process of adoption and diffusion starts with a The process of adoption and diffusion starts with a

problem and/or the perceived need for an problem and/or the perceived need for an innovation (agenda setting) and continues with the innovation (agenda setting) and continues with the search for a technology that is able to solve the search for a technology that is able to solve the problem (matching). problem (matching).

• The initiation phase ends as soon as the right The initiation phase ends as soon as the right technology has been identified. technology has been identified.

• What follows is the decision whether to adopt or What follows is the decision whether to adopt or reject this specific technology and is referred to as reject this specific technology and is referred to as the point of adoption. the point of adoption.

• The implementation phase starts when the The implementation phase starts when the technology has to be modified to fit organizational technology has to be modified to fit organizational goals and, simultaneously, organizational goals and, simultaneously, organizational structures and systemsstructures and systems are altered to accommodate are altered to accommodate the technological innovationthe technological innovation (i.e., redefining, (i.e., redefining, restructuring). restructuring).


Tourism – Stages of IT use• TheThe implementation process is completed when the implementation process is completed when the

relationship between the technology and the relationship between the technology and the organization is clear and the innovationorganization is clear and the innovation becomes an becomes an integral part of the organization.integral part of the organization.

• organizational capabilities influence the way organizational capabilities influence the way technology is used in organizations. technology is used in organizations.

• IT diffusion involves complex interactionsIT diffusion involves complex interactions between between technologies and users in a given system. The technologies and users in a given system. The properties of the system include both incentives properties of the system include both incentives and constraints to the use of technology. Adopter and constraints to the use of technology. Adopter capabilities also influence how an adopter perceives capabilities also influence how an adopter perceives IT . IT .

• Also, personal qualities of the leader (e.g., attitude Also, personal qualities of the leader (e.g., attitude toward change, vision for the future) have toward change, vision for the future) have substantial influence on the use of IT.substantial influence on the use of IT.


From an Internet marketing perspective; websites development From an Internet marketing perspective; websites development stages ;stages ;

• Stage 1 Web sitesStage 1 Web sites are pure “publishing sites” that only are pure “publishing sites” that only distribute data. There is limited dialogue between the distribute data. There is limited dialogue between the Web site and the consumer because the Web is used Web site and the consumer because the Web is used like a traditional broadcast medium. like a traditional broadcast medium. Have low degrees Have low degrees of innovation and require little adjustment of organizational of innovation and require little adjustment of organizational structures. Simple advertising strategies such as advertising structures. Simple advertising strategies such as advertising banners and mass e-mail fall into this category.banners and mass e-mail fall into this category.

• Stage 2 Web sites Stage 2 Web sites concentrate on information. These concentrate on information. These sites are database driven and allow for more specific sites are database driven and allow for more specific retrievals andretrievals and ask-respond interactions. ask-respond interactions. More innovative More innovative and integrate more functions. Online auctions are one and integrate more functions. Online auctions are one example for Stage 2 models.example for Stage 2 models.

• Stage 3 Stage 3 Web Web sitessites are “personalized are “personalized interaction sites” interaction sites” that stress relationship building. The concept of stages that stress relationship building. The concept of stages of technology use can also be applied to eof technology use can also be applied to e--business business models.models. E-business models are highly innovative, E-business models are highly innovative, multifaceted, and integrated into the overall organizational multifaceted, and integrated into the overall organizational framework.framework. Virtual value chain integration and virtual Virtual value chain integration and virtual communities are seen as models that have Stage 3 communities are seen as models that have Stage 3 characteristics.characteristics.

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Business

Consumer

Government

Business

Consumer

Government

B2B B2C B2G

C2B

G2B

C2C C2G

G2C G2G

• Extranets between Travel Portals & Tour Operators: TO entering its tour info into travel portal. eg: www.BookinTurkey.com

• Corporate Booking Systemeg: www.BookinTurkey.com

• Travel Portals for end-user. eg:www.travelocity.com www.expedia.com

• Following and applying for taxes and regulations:www.maliye.gov.tr

• Airline, hotel loyalty, executive clubs

www.delta.com/ www.hilton.com

• Consumers informing other consumers over good or bad experience

www.sikayetvar.com www.HolidayTravelWatch.com

• Applying for visas, passport, etc.

www.egm.gov.tr/onlinepasaport.asp

• Government informing hotels & TO about new regulations. eg:

www.turizm.gov.tr www.tursab.org

• Government informing consumers about new regulations, Travel Adversories. eg:

http://travel.state.gov/

• Such as Turizm Bakanlığı withWTO

www.world-tourism.org


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1 Melih Daltaban Trip AdvisorTrip Advisor2 Aytaç Yarıktaş 3 Müge Çolakoğlu Serap Gullu - Tripadvisor4 Onno Anıl Business Listing EMEA5 Burcu Görek [email protected] Caroline Bisiaux (email ile skype call icin randevu alinacak)7 Emre Yüksel tel : (Londra' da) : 442033203200

1 Cüneyt Yıldız BookinTurkey.com BookinTurkey.com 2 Emre Yıldız Harbiye

3 Alberto Fernandez

4 Laura Schmidt Emre Ünal

5 Lena Simanowski Demet Köse

6 Özge Çetinel

1 Tugce savas ExpediaExpedia2 Mert altinoklu 3 Irem balkan 4 Seyma dalkiran Berna Derin- Expedia5 Burcu kisakurek 6 Merve ozkan [email protected] 7 Hazal turegun T: +90 - 212- 340-7630


TUITUI

Booking.comBooking.com

Gezisitesi.comGezisitesi.com

Sirkeci OtelSirkeci Otel

? Otel? Otel


Inclass practice

• What is the meaning of What is the meaning of luxury travel luxury travel for you?for you?

• What are the core objectives you are trying to What are the core objectives you are trying to achieve from with your website content?achieve from with your website content?

• Who are your customers?Who are your customers?

• Where will you find them 'hanging out' on Web Where will you find them 'hanging out' on Web 2.0?2.0?

• How can you best enter into How can you best enter into dialogue/conversation with them?dialogue/conversation with them?

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Documents

TRM 253 Information Systems for Tourism Industry