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SESSION OBJECTIVES
●Introduce the eTourism concept
●Demonstrate technological solutions & equipment. Explore
how each element of ICTs is used in tourism. Introduce ICTs
which are used extensively in tourism
●Understand the structure and components of the tourism
system. Explore some generic ICTs applications and
identify them as technological enablers for the tourism
industry
●Engage with the concept of Computer Reservation System
& Global Distribution Channels
●Appreciate the issue of technological convergence in the
tourism field
●Conceptualise a framework for dynamic use of ICTs
●Identify the tourism organisation stakeholders
●Explore how ICTs can integrate the entire industry &
economy
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 & 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 & suppliers
globally
●ICTs provide the tools and enable the evolution of tourism
demand & supply
●eTourism reflects the digitisation of all processes and value
chains in the tourism, travel, hospitality & catering
industries
●At the tactical level it includes eCommerce, eProcurement
and all ICT empowered functions
●eTourism applies ICTs for maximising the efficiency &
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 & the
strategic relationships of tourism organisations with all
their stakeholders
The eTourism concept
●eTourism determines the competitiveness of all tourism
organisations and destinations
●Takes advantage of intranets, extranets & the Internet
●It includes all business functions
●eTourism bundles together three distinctive disciplines
- Business & management
- Information systems and information management
- Tourism, travel, hospitality
The eTourism concept (continued)
Best operational practices
in tourism by ICTs
●Major drivers make ICTs an integral part of
the tourism industryoEconomic necessity
oThe proliferation of the Internet
oDevelopment of 3G mobile devices & interactive
television
oImprovements in ICTs' price/performance ratios
oRising consumer expectations
oICTs can also assist the reduction of operation
and communication costs
ICTs changes best operational 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.
ICTs assist the reduction of operation
& 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
THE TOURISM SYSTEM & IT
The tourism industry and tourism system
Source: Adapted from Leiper (1995); Cooper and Buhalis (1998)
Critical tourism and hospitality 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
Telecommunications & Networking tools
in the Tourism Industry
●Telephone, telex and fax
●Mobile devices
●Telex
●Videotext and viewdata
●Teletext
●Electronic Data Interchange (EDI)
●Inter-organisational & Intra-organisational
networking
●Virtual reality
●Information superhighway (converges media,
telecommunications and information technology)
Examples of ICT Applications 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
Examples of ICT Applications 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
Major ICT applications in the tourism industry
●Computer Reservation Systems (CRSs) assist tourism
enterprises:oHandle their inventories profitably
oFacilitate the tourism products distribution
oNormally operated by airlines, hotels & tour operators
oDistribute products nationally or globally
oUse computerised or videotext systems
oUse mainframes & extensive networks to support remote
terminals in travel agencies
o 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
Major ICT applications in the tourism industry (continued)
●Global Distribution Channels (GDS)o incorporate a comprehensive range of services and products
oprovide a global distribution info-structure
osatisfy consumers' need for easy access
oprovide transparent and easy to compare information
●Tourism suppliers use CRSs & GDSs to manage &
distribute their capacity as theyoenable flexible pricing & capacity alterations
oreduce communication costs
oprovide managerial information on demand patterns or
competitors' position
oserve the travel trade (intermediaries)
osupport quick and firm responses to customers' enquiries
Computer Reservation Systems and Global Distribution Systems as
drivers for tourism and hospitality globalisation
Functions of intranets in tourism
●Information exchange within a tourismorganisation●Management support
strategic planning competition analysis financial planning and control accounting and finance marketing research marketing strategy & implementation pricing decision and tactics middle term planning & feedback management statistics/reports operational control management functions
Source: Adapted from Buhalis (1998)
Functions of intranets in tourism (continued)
●Communication between departments business functions networking & information exchange human resources management staff coordination operational planning accounting/billing payroll supplies management
●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 informationSource: Adapted from Buhalis (1998)
Functions of extranets in tourism
●Links between partners●availability/prices inquiries
onegotiations and bargaining
●reservations & confirmationso lists of groups/visitorso receipts/documentsovouchers & tickets production
●travelling facilitationo follow up progressokeep partners informed about plansoamend plans should unexpected developments ariseo follow up developments
●feedback and clearing commissionsopayment & commissions clearanceo feedback & suggestionsocomplaint handlingobuilding loyalty through data mining
Functions of Internet in tourism
●Information distribution ●Electronic commerce
●Request availability/prices/information
●Reservation & confirmation
●Expanding value chain with complementary
products
●Deposits and full settlements
●Specific requests/enquiries
●Feedback/complaints
●Ancillary services