Information and
Communication
Technologiesin
Tourism
2 © copyright IFITTICT in Tourism
ICTs in Tour Operators and Travel agencies
� ICT Usage by Tour Operators
� Case Study Tour Operators
� ICT Usage by Travel Agencies
� Case Study Bistro
� Case Study WebMAIL
� Further Collection of Travel Agency Case Studies
3 © copyright IFITTICT in Tourism
Tour Operators
� Tour operator functions
� Purchase and assemble a large number ofcomponents produced by the principals, and sellthese as packaged products
� Set up packages at a single price, which are standardised & repetitive
� Provide a one stop shop for travellers
� Achieve immense discounts by bargaining power
� Have a good market access, well known brandsand take over financial risk
4 © copyright IFITTICT in Tourism
Tour Operators
CustomerTravel
agencyTransport
Accommo-
dationServices
Tour operator
Ribbers 1994
5 © copyright IFITTICT in Tourism
Tour Operators
� Tour operator market position
� In Europe, in 1992 one third of total travel expenditures fell into the package category
� In Germany and in the UK roughly half of all holidays sold were packaged
� In specific destinations the percentage of packaged holidays is not that high (in Tyrol, Austria, nearly 70% of the tourists are “direct” bookers)
� TOs experience a fierce competition and have a rather limited control over the quality of the product
6 © copyright IFITTICT in Tourism
Tour Operators - Examples
� Large/mass operators
� TUI (www.tui.com)
� Thomas Cook (www.thomascook.de)
� Kuoni (www.kuoni.com)
� Small/specialist operators
� IGLU www.iglu.com
� Complete Skier (www.complete-skier.com)
7 © copyright IFITTICT in Tourism
TUI – Touristik Union International
TUI63.000 employees
19.300 million revenue
Travel agenciesTUI Reise-Center, TV Travel Shop
ScanHoliday, Budget Travel
Austravel, Thomson
3.300 agencies
AirlinesHapag-Lloyd, Britannia, Jetair, Corsair
100 airplanes
AccommodationsGrand Resort Hotels, Grecotels,
iberotel, Robinson, Solymar
300 hotels
Tour operators1-2-Fly, airtours, berge&meer, Ferien.de
Fox-Tours, l‘tur, touropa, Wolters Reisen
80 tour operators
8 © copyright IFITTICT in Tourism
ICT and Tour Operators
� In the early 1980ies, tour operators started to capitalise on ICTs
� ICT enables TOs to
� Enhance productivity
� Improve their holiday-capacity management
� Reduce the labour cost of telephone operators
� Reduce transaction costs
� Provide a better service to both agencies and consumers
9 © copyright IFITTICT in Tourism
ICT and Tour Operators
� ICT usage by tour operators
� TOs established electronic links with travel agencies
� To reduce their information handling costs
� To increase the speed of information transfer and retrieval
� As own systems or part of CRS/GDS
� TOs utilised market intelligence data arising from the systems
� Yield management & dynamic pricing
� Dynamic packaging
� The systems help monitor the booking progressand productivity of travel agencies
10 © copyright IFITTICT in Tourism
Internet and Tour Operators
� Tour operators use the Internet to
� Alter elements of the marketing mix according to market conditions
� Attract niche markets (skiing, diving, etc.)
� Develop differentiated products
� Promote distressed inventory at the last minute
� Expand operations globally
� Reduce the costs involved in brochure printing & distribution
� Replace traditional brochures by individualised virtual brochures
� Better understand the needs of their clients
11 © copyright IFITTICT in Tourism
TUI – Touristik Union International
12 © copyright IFITTICT in Tourism
Thomas Cook
13 © copyright IFITTICT in Tourism
Role of ICT for Tour Operators
� ICTs
� Determine the competitiveness of tour operators
� Change business practices & roles in the future distribution channels
� Lower entrance barriers to tour operator business
� Will lead to partial disintermediation of tour operators
� Alter the industry structure
� Challenge the leadership and power of major tour operators
� Require innovative and visionary management
14 © copyright IFITTICT in Tourism
Critical Issues for Tour Operators
� Tour operators have to
� Adopt innovative practices
� Establish interactive platforms for partners and consumers
� Adopt a multi-channel strategy
� Support the promotion and trade of tourism products on the Internet, mobile devices & digital television
� Personalise the experience for every user regardless of the channel used
� Target product & value added services to their customers based on individual preferences
� Support dynamic packaging
15 © copyright IFITTICT in Tourism
Case Study – Tour Operators
Namibia Tourism Board syndicates customized Facebook app for tour operators
http://www.tnooz.com/article/namibia-tourism-board-syndicates-customized-facebook-app-for-tour-operators/
http://www.immersionjourneys.com/
From the tour operator’s perspective, the Namibia
Tourism Board’s app has a
customizable section where
the tour operator can showcase its own Namibia
itineraries
16 © copyright IFITTICT in Tourism
Case Study – Tour Operators
Groupon takes tour operator route in France and Germany, OTA next
http://www.tnooz.com/article/groupon-takes-tour-operator-route-in-france-and-germany-ota-next/
http://groupon.co.uk/
Groupon says it is establishing itself as an
online travel agency as the
next logical step for it in
Europe.
17 © copyright IFITTICT in Tourism
ICTs in Tour Operators and Travel Agencies
� ICT Usage by Tour Operators
� Case Study Tour Operators
� ICT Usage by Travel Agencies
� Case Study Bistro
� Case Study WebMAIL
� Further Collection of Travel Agency Case Studies
18 © copyright IFITTICT in Tourism
Travel Agencies
� The role of Travel Agencies
� Act as a distributor, broker or retailer on behalf of the suppliers
� Act as advisers for consumers
� Sell individual products, packages or customisedproducts
� Carry limited financial risk
� Do not purchase tourism products in advance
� Reserve products and issue travel documents only
� Income is generated on the basis of commissions
� Leading to supplier / tour operator / system binding
� Are part of the international electronic distribution network constituted by the CRS/GDS
19 © copyright IFITTICT in Tourism
Travel Agencies and their Relationships
Travel agencies Customers
DMOs/DMSs
Hotels
and other suppliers
Tour operators
CRSs/GDSs
20 © copyright IFITTICT in Tourism
ICT and Travel Agencies
� ICT Usage by Travel Agencies
� Facilitates up-to-date schedules, prices and product availability
� Provides an effective reservation mechanism through the proliferation of CRSs and GDSs
� Enables agencies to build complicated travel itineraries
� Improves communication with consumers
� Supports agencies to track activity of clients through CRM systems and personalise service
� Enables integration of ‘front & back office’ procedures
� Facilitates strategic management & marketingfunctions of travel agencies
21 © copyright IFITTICT in Tourism
ICT and Travel Agencies
� CRS/GDS
� Support wide range of travel agency functions in front, mid and back office
� Use of CRSs/GDSs increased travel agency productivity
� In Germany travel agents introducing the German START system could lower their traditional communication costs by 22%, while increasing their turnover by 17%
� Linking to a specific distribution channel creates dependencies
� Offer & price comparison systems
� Global, multi-supplier offer and price comparison
� Bistro, Tourmanager, etc.
22 © copyright IFITTICT in Tourism
ICT and Travel Agencies
� Videotext systems
� 97% of UK leisure travel agents use mainly videotext systems
� Tools for connecting with tour operators’ databases and reservation systems
� Relatively inexpensive
� Require little staff training & expertise
� Disadvantages
� Reservation process is time consuming
� No integration between ‘front and back office’
23 © copyright IFITTICT in Tourism
Internet and Travel Agencies
� Travel agencies use the Internet to
� Develop an Internet presence
� Develop specialised sites for their distinctive markets
� Based on CRS/GDS functionality
� Interact with clientele, partners and stakeholders via websites & email
� Communicate with consumers worldwide
� Personalise interaction with consumers
� Develop cost-efficient communication mechanisms
� Develop a brand name
� Trade through other interfaces
� e.g. www.travel.telegraph.co.uk
24 © copyright IFITTICT in Tourism
Travel Agency Online Presence
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Travel Agency Online Presence
Migration
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Virtual Travel Agencies
Phocuswright 2003
Leading European online travel agencies
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eBookers.com
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Expedia
29 © copyright IFITTICT in Tourism
Travelocity
30 © copyright IFITTICT in Tourism
Travel agencies
Developments and trends
Bargaining power
of suppliers
� Commission capping
� Direct selling
� New suppliers (e.g. no-frill airlines) and products (dynamic packages)
� Concentration and new business models
Bargaining power
of customers
� More flexibility
� High knowledge & demand
� New communication channels
� Direct access to suppliers
� Market transparency & price sensitivity
Threat of
new entrants
� Low entrance barriers
� Standardised technology
� Low costs
� New distribution channels (supermarkets, call centers)
Threat of
substitute products
� Virtual travel agencies
� New online platforms
� Auctions
� Power shopping
� Mobile services
� eTicketing
Competitive rivalry
between travel agencies
� Concentration
� Specialisation
� New distribution channels
� Online platforms
� Auctions
� Generation of value-added services
� Recommendation
� Dynamic packaging
� New information & communication channels
� eCommunities
� Online platforms of destinations and suppliers
31 © copyright IFITTICT in Tourism
Concentration and specialisation
Organisation size
Product focus
Niche Broad
Large
Small
Global players
Niche marketeers
Few survivors
32 © copyright IFITTICT in Tourism
Importance of new distribution channels
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33 © copyright IFITTICT in Tourism
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34 © copyright IFITTICT in Tourism
Critical Issues for Travel Agencies
� Provide added value and value for money and time
� Design high quality personalised travel arrangements
� Take advantage of on-line tools and improve service
� Intelligent agents, intelligent search & recommendersystems, dynamic packaging
� Make maximal use of information & reservation capabilities of the Internet
� Use a wide range of media to communicate with customers
� Websites, email, SMS, mobile services, interactive TV
� Manage price & product transparency
� Choose the right technological platform & suppliers
� Integrate Internet technology with legacy systems
� Compete with ICT-based newcomers such as Expedia or Travelocity
35 © copyright IFITTICT in Tourism
ICTs in Tour Operators and Travel agencies
� ICT Usage by Tour Operators
� Case Study Tour Operators
� ICT Usage by Travel Agencies
� Case Study Bistro
� Case Study WebMAIL
� Further Collection of Travel Agency Case Studies
36 © copyright IFITTICT in Tourism
Bistro
� Travel Agency Advisory System
� Access to extensive information on tourism offers
� Catalogue information of tour operators
� Additional destination or hotel information
� Intelligent search mechanism
� Fuzzy logic technology to provide alternative offers
� Individual sales management
� Offer and price comparison
� Multi-supplier offer and price comparison
� Online booking functionality
� Integrated access to GDS functionality
� Support of major GDSs (Amadeus, Sabre, …)
37 © copyright IFITTICT in Tourism
Bistro Functionality
� Evaluation and calculation of� Last-minute offers
� Package holidays
� Flights
� Hotel offers
� Detailed travel information� Tour operator’s description
� Additional information� Photos
� Slideshows
� 360° panoramic shots
38 © copyright IFITTICT in Tourism
Bistro Functionality
� Information on the country and region
� Satellite and aerial images
� Impression of the hotel’s
surroundings
39 © copyright IFITTICT in Tourism
Bistro Functionality
� Geo-referencing� Geo-referenced information enables exact localisation of
hotels, beaches and sights of interest at the destination
� Enables enquiries about the surrounding area of a hotel
40 © copyright IFITTICT in Tourism
Internet Booking Engine
Integration of complete
functionality and
information into travel
agency website
� Fuzzy search
� Sales management
� Connection to GDS
41 © copyright IFITTICT in Tourism
Internet Booking Engine
Statistics and sales analysis
42 © copyright IFITTICT in Tourism
Information Flow
Tour operator
database
Tour operator
Data entry PrintingTravel
catalogues
Bistro
TravelTainment
database
GDS
Travel agencyTravel agency
Data entry
Availability check
and booking
Offer & price
comparison
Searching
and booking
43 © copyright IFITTICT in Tourism
ICTs in Tour Operators and Travel agencies
� ICT Usage by Tour Operators
� Case Study Tour Operators
� ICT Usage by Travel Agencies
� Case Study Bistro
� Case Study WebMAIL
� Further Collection of Travel Agency Case Studies
44 © copyright IFITTICT in Tourism
WebMAIL
� The WebMAIL information network
� Multi-supplier, web-based B2B platform for the distribution and management of sales-relatedinformation
� WebMAIL library
� Suppliers post messages or offers
� Headlines, description, attachments
� Travel agencies search for relevant information
� By supplier, information type, destination, date, …
� WebMAIL alert
� Daily email comprised of headlines from approved suppliers
45 © copyright IFITTICT in Tourism
The WebMAIL System
46 © copyright IFITTICT in Tourism
WebMAIL Alert
47 © copyright IFITTICT in Tourism
WebMAIL Library Search
48 © copyright IFITTICT in Tourism
WebMAIL Library Search
49 © copyright IFITTICT in Tourism
WebMAIL Library Search
50 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
51 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
52 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
53 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
54 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
55 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
56 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
57 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
58 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
59 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
60 © copyright IFITTICT in Tourism
WebMAIL Suppliers‘ View
61 © copyright IFITTICT in Tourism
WebMAIL
� WebMAIL – an Evaluation
� Launched Sept 2002 in Australia
� Currently by 3940 (96%) agencies
� 120+ suppliers lodged over 4000 product offer notices
� 1000+ unique visits from travel agents per day
� Hitwise ranked www.afta.com.au no 7 in Australia in the travel agency sector, no 5 in business & finance
� SMEs benefit by increasing their presence
62 © copyright IFITTICT in Tourism
ICTs in Tour Operators and Travel agencies
� ICT Usage by Tour Operators
� Case Study Tour Operators
� ICT Usage by Travel Agencies
� Case Study Bistro
� Case Study WebMAIL
� Further Collection of Travel Agency Case Studies
63 © copyright IFITTICT in Tourism
Case Study – Online Travel Agencies
China travel search portal Qunar speaks about the past, present and future
http://www.tnooz.com/article/china-
travel-search-portal-qunar-speaks-about-
the-past-present-and-future/
http://www.qunar.com
China’s travel company Qunar has become one of the country’s leading online travel search providers.
The company’s move into mobile has resonated users with more than 34 million downloads of its app so far.
64 © copyright IFITTICT in Tourism
Case Study – Online Travel Agencies
Over the Great Wall: eLong looks west to secure content deal with ArrivalGuides
http://www.tnooz.com/eLong-partners
-with-ArrivalGuides-for-travel-content
www.elong.com
http://www.arrivalguides.com
Expedia-owned Chinese OTA eLong is partnering with ArrivalGuides, a Europe-based destination content specialist, in a bid to overhaul and improve the site’s destination information.
65 © copyright IFITTICT in Tourism
Case Study – Online Travel Agencies
InnHand brings mobile, web and Facebook reservation system for B&Bs, guest houses, villas
http://www.tnooz.com/TLabs-InnHand-mobile-web-Facebook-reservation-system-for-Bed-Breakfast-inns-guest-houses-villas
http://www.innhand.com/
Although there are quite a number of players providing reservation engines In the bed and breakfast (B&B) sector, InnHand provide reservation package only targeted towards B&B properties
66 © copyright IFITTICT in Tourism
Case Study – Online Travel Agencies
CheapAir unveils semantic search for booking flights with natural language queries
http://www.tnooz.com/article/cheapair-unveils-semantic-
search-for-booking-flights-with-natural-language-queries/
http://www.cheapair.com/
To make travel search more intelligent, CheapAir.com has begun beta-testing Easy Search, a semantic search tool that allows users to pose natural language flight queries instead of choosing parameters in forms, drop-down menus, and calendars.
67 © copyright IFITTICT in Tourism
Case Study – Online Travel Agencies
Kayak fears bad UEX on mobile
http://www.tnooz.com/article/one-app-to-rule-them-all-kayak-fears-bad-uex-on-mobile-so-brings-third-party-sites-within-app/
One of the ongoing problems travel search sites have found when developing their mobile apps is that they have to send the user off to the supplier website to complete the booking.
However, many suppliers are not optimized for mobile bookings.