Sihm 401 - Sept 20 Information Technology in Tourism

INFORMATION
TECHNOLOGY IN TOURISM
THE USE OF ICT IN TOURISM
INTRODUCTION
 The tourism system is inevitably influenced by the new
business environment created by the diffusion of ICT’s
 Information technology is one of the external environment
element 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.
E-Tourism Concept
 eTourism reflects the digitalization 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 maximizing the efficiency and
effectiveness of tourism organization.
 At the strategic level it transform all business processes
and changes the industry structure.
 Hence it transform the entire chain and the strategic
relationship of tourism organization with all their
stakeholders.
E-Tourism Concept (continuation)
 eTourism determines the competitiveness of all tourism
organizations 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 and domains
Best Operational Practices in Tourism by
ICTs
 Major drivers make ICTs an integral part of the
tourism industry.
- Economic necessity
- Development of 3G mobile devices and
interactive television
- The proliferation of the Internet
- Improvements in ICTs price/performance ratios
- Rising consumers expectations
- ICTs can also assist the reduction of operation
and communication costs
ICTs changes best Operational Practices
in Tourism
 Integrating operational systems.
 Maximizing internal efficiencies.
 Decreasing the number of people required for
back office jobs
 Reducing the amount of face or telephone
communications
 Enabling consumers to have access to all
information that was previously only obtainable
by direct contact with tourism organizations
Critical Tourism and Hospitality Functions
supported by ICTs
 Front office: Reservations, check-in, payments.
 Back office: accounting, payroll, human resources
management, marketing, procurement.
 Communications with consumers and partners
 Control of business processes and personnel
 Customer entertainment and service
 Marketing research and industrial espionage
 Reactions and management of unexpected events
Critical Tourism and Hospitality Functions
supported by ICTs (continued)
 Flexible and dynamic pricing
 Differentiation and personalization of products
 Monitoring performance indicators
 Building feedback mechanism.
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 system.
 Tailor-made internal management applications
Examples of ICT Applications in the tourism
industry used currently (continued)
 Database 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.
 Computer reservation systems (CRSs)
 Switch applications for hospitality organizations
(ex. THISCO and WIZCOM)
Examples of ICT Applications in the tourism
industry used currently (continued)
 Internet-based travel intermediaries (e.g.
Expedia.com, Travelocity.com)
 Mobile/WAP based reservation system
 Calling centers
 Kiosk and touch screen terminals
Example site for online booking or
reservation
Major ICT applications in the tourism
industry
 Computer Reservation Systems (CRSs) assist tourism
enterprises:
- Handle their inventories profitably
- Facilitate the tourism product distribution
- Normally operated by airlines, hotels and tour operators
- Distribute products nationally or globally
- Use computerized or videotext systems
- Instant update of information
- Use mainframe and extension networks to support
remote terminals in travel agencies
 Advantages:
- support reservation/confirmation/purchase of
wide range of tourism products
 Disadvantages:
- installation and usage cost, lack of user
friendliness and bias in favor of their vendors
Major ICT applications in the tourism
industry (continued)
 Global Distribution Channels (GDC)
- incorporate a comprehensive range of service and products
- provide a global distribution info-structure
- satisfy consumers need for easy access
 Tourism suppliers use CRSs & GDC to manage & distribute
their capacity as they;
- Enable flexible pricing and capacity alterations
- reduce communication cost
- support quick and firm response to customers inquiries.
Functions of Intranets in tourism
 Information exchange within a tourism

organization
 Management support
 Communication between departments
 Communication and functions with
branches
Functions of extranets in tourism
 Linked between partners
- Availability/prices inquiries
* negotiation and bargaining
- Reservation and confirmations
* list of groups/visitors
* receipts/documents
* vouchers and ticket production
Functions of extranets in tourism
(continued)
- Travelling facilitation
* follow up progress
* keep partners informed about plans
* follow up developments
- Feedback and clearing commissions
* payment and commission clearance
* feedback and suggestions
* building loyalty through data mining
Functions of Internet in tourism
 Information distribution
 Electronic commerce
 Request availability/prices/information
 Reservation and confirmation
 Expanding value chain with complimentary
products
 Deposit and full settlement
 Specific
request/inquiries
 Feedback/complaints
CONCLUSION
 Information Telecommunication Technologies
increasingly determine the competitiveness of
tourism organizations
 Tourism industry should take advantage of the
Internet, Extranet and Intranet to manage its
representation to the world, its internal efficiencies
and its relationship with other partners
 ICT-enabled tourism organizations will benefit and
grow in the future

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INFORMATION

 Information exchange within a tourism

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