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WORLD TOURISM ORGANIZATION E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, 19-21 June.

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Presentation on theme: "WORLD TOURISM ORGANIZATION E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, 19-21 June."— Presentation transcript:

1 WORLD TOURISM ORGANIZATION E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, June

2 WORLD TOURISM ORGANIZATION AccessAccess

3 The On-line Market is there Forecast for European markets Market M(000) Internet salesM(000) Market share 0% 1% 2% 3% 4% 5% 6% 7% % of Internet sales are direct sales. - UK sales represent 34% of Western Eurepean sales. - Airlines are 60% of total sales and half of this is from low-cost airlines

4 WORLD TOURISM ORGANIZATION Distribution costs are a growing area of potential savings $ 20 billion per annum: 4% of overall costs and growing.

5 WORLD TOURISM ORGANIZATION The Electronic Marketplace in tourism – eBusinessBusinessConsumerGovernment Business B2B Extranets between Hoteliers and tour operators B2C eCommerce applications where consumers purchase air tickets B2G Business interacting with government departments, e.g. hotel developer requires planning permission Consumer C2B Consumers registering their preferences on airline or hotel loyalty/executive clubs C2C Consumers informing other consumers over good or bad practice (e.g. C2G Consumers applying for visas, requesting maps and local destination information Government G2B Government informing hotels about food safety legislation or taxation G2C Government informing consumers on regulations, visa or vaccination requirements G2G Governments interacting in tourism policy matters or asking technical assistance through organizations such as the World Tourism Organization Source: Buhalis D., eTourism

6 WORLD TOURISM ORGANIZATION New Business Models Tiscover GTREX

7 WORLD TOURISM ORGANIZATION Three online firms now control over 55 percent of all online travel bookings Source: Peter OConnor, IMHI, 2003

8 WORLD TOURISM ORGANIZATION WTO activities in E-tourism: Publications: Marketing Tourism Destinations Online, 1999 E-Business for Tourism, 2001 Seminars Capacity building: Courses for National Tourism officials of WTO member States Partnership with IFITT Bench-marking scheme for Destination Web Sites Harmonise

9 WORLD TOURISM ORGANIZATION

10 Hotel DMS Switch GDS Travel Agents TICs Customer Hotel 3rd Party CRS CRS Traditional Intermediaries Electronic Intermediaries As it was in the beginning…. Source: Peter OConnor, IMHI, 2003

11 WORLD TOURISM ORGANIZATION Is now….. CRS Hotel Web Intermediary GDSTravel AgentCustomer Rep Company DMS Switch DMS Web site Rep Company Web site TIC GDS-based Web site Switch Co Web Site Hotel Web site CRS Web site Hotel Customer Source: Peter OConnor, IMHI, 2003

12 WORLD TOURISM ORGANIZATION Critical tourism and hospitality functions supported by ICTs Front office: reservations, check-in, payments Back office: accounting, payroll, human resources management, marketing Customer entertainment and service Communication with consumers and partners Marketing research Reaction and management of unexpected events Flexible and dynamic pricing through yield management Differentiation and personalization of products Monitoring performance indicators and building feedback mechanisms Control of business processes and personnel

13 WORLD TOURISM ORGANIZATION Examples of information technology applications used in tourism 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

14 WORLD TOURISM ORGANIZATION Examples of information technology applications used in tourism 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) Global distribution systems (GDSs) (e.g. Galileo, SABRE, Amadeus, Worldspan) Switch applications for hospitality organizations (e.g. THISCO and WIZCOM)

15 WORLD TOURISM ORGANIZATION Examples of information technology applications used in tourism 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 centres Interactive digital television (IDTV) CD-ROMs Kiosks and touch-screen terminals

16 WORLD TOURISM ORGANIZATION Internal systems and intranets Improving capacity management and operations efficiency Facilitating central room inventory control Providing last room availability information Offering yield management capability Providing better database access for management purposes Supporting extensive marketing, sales and operational reports Facilitating marketing research and planning Providing travel agency tracking and commission payment

17 WORLD TOURISM ORGANIZATION The small e-business The ICT illiteracy of the entrepreneurs Lack of marketing and technology understanding The cost of ICTs being perceived as prohibitive for entrepreneurs Inability to control the equipment Perceived dependence on trained staff Lack of standardization and, often, professionalism Seasonality and limited period of operations in resorts Insufficient training and established organizational practices Small size multiplies the administration required by CRSs to deal with each property The unwillingness of SMTEs to lose control over their property

18 WORLD TOURISM ORGANIZATION Tourism is a very information intensive activity. In few other areas of activity are the generation, gathering, processing, application and communication of information as important for day-to-day operations as they are for the travel and tourism industry Poon 1993


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