1. Chapter 19 Information Technology in Tourism

2. This Lecture will give you
An understanding of the key ICT and eTourism concepts;
An appreciation of the generic ICTs applications in the tourism industry;
A knowledge of the basic concepts of computer reservation system and global distribution channels;
A comprehension of the impact of the Internet and ICTs tools on the structure and components of the tourism system; and
An appreciation of the strategic importance of ICTs and the Internet for the future of each stakeholder in the tourism industry.

3. 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 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

4. The eTourism concept
eTourism reflects the digitisation 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 maximising the efficiency and 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 and the strategic relationships of tourism organisations with all their stakeholders

5. The eTourism concept (continued)
eTourism determines the competitiveness of all tourism organisations 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

6. The eTourism concept and eTourism domains
The eTourism mix
The eTourism concept and eTourism domains
Source: Buhalis, (2003) eTourism, FT Prentice Hall

7. practices in tourism by ICTs
Best operational
practices in tourism by ICTs
Major drivers make ICTs an integral part of the tourism industry
Economic necessity
The proliferation of the Internet
Development of 3G mobile devices and interactive television
Improvements in ICTs' price/performance ratios
Rising consumer expectations
ICTs can also assist the reduction of operation and communication costs

8. operational practices in tourism
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.

9. reduction of operation and communication costs by:
ICTs assist the
reduction of operation and 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

10. hospitality functions supported
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

11. and Networking tools in the Tourism Industry
Telecommunications
and Networking tools in the Tourism Industry
Telephone, telex and fax
Mobile devices
Telex
Videotext and new data
Teletext
Electronic Data Interchange (EDI)
Inter-organisational and Intra-organisational networking
Virtual reality
Information superhighway (converges media, telecommunications and information technology)

12. Software classification scheme
Source: Buhalis (2003) eTourism, FT Prentice Hall, based on Werthner and Klein (1999) Information Technology and Tourism: A Challenging Relationship,Springer-Verlag, Vienna

13. Software classification scheme
Source: Buhalis (2003) eTourism, FT Prentice Hall, based on Werthner and Klein (1999) Information Technology and Tourism: A Challenging Relationship,Springer-Verlag, Vienna

14. Applications in the tourism industry used currently
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

15. Applications in the tourism industry used currently (continued)
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

16. Lastminute
Case Study
Mission Statement

17. Figure 19.1 lastminute.com UK homepage
Source: lastminute.com

18. Figure 19.2 Tiscover
Source: tiscover.com

19. applications in the tourism industry
Major ICT
applications in the tourism industry
Computer Reservation Systems (CRSs) assist tourism enterprises:
Handle their inventories profitably
Facilitate the tourism products distribution
Normally operated by airlines, hotels and tour operators
Distribute products nationally or globally
Use computerised or videotext systems
Use mainframes and extensive networks to support remote terminals in travel agencies
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

20. tourism industry (continued)
Major ICT
applications in the
tourism industry (continued)
Global Distribution Channels (GDS)
incorporate a comprehensive range of services and products
provide a global distribution info-structure
satisfy consumers' need for easy access
provide transparent and easy to compare information
Tourism suppliers use CRSs & GDSs to manage & distribute their capacity as they
enable flexible pricing & capacity alterations
reduce communication costs
provide managerial information on demand patterns or competitors' position
serve the travel trade (intermediaries)
support quick and firm responses to customers' enquiries

21. Functions of intranets in tourism (continued)
Communication between departments
business functions
networking and information exchange
human resources management
staff coordination
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 information
operational planning
accounting/billing
payroll
supplies management
Source: Adapted from Buhalis (1998) Strategic use of information technologies in the tourism industry, Tourism Mangagement, 19 (5), 409–421

22. Functions of intranets in tourism
Information exchange within a tourism organisation
Management Support
strategic planning
competition analysis
financial planning and control
accounting and finance
marketing research
marketing strategy and implementation
pricing decision and tactics
middle term planning and feedback
management statistics/reports
operational control
management functions

23. Functions of extranets in tourism
Links between partners
availability/prices inquiries
negotiations and bargaining
reservations and confirmations
lists of groups/visitors
receipts/documents
vouchers and tickets production
travelling facilitation
follow up progress
keep partners informed about plans
amend plans should unexpected developments arise
follow up developments
feedback and clearing commissions
payment and commissions clearance
feedback and suggestions
complaint handling
building loyalty through data mining

24. Functions of Internet in tourism
Information distribution
Electronic commerce
Request availability/prices/information
Reservation and confirmation
Expanding value chain with complementary products
Deposits and full settlements
Specific requests/enquiries
Feedback/complaints
Ancillary services

25. Conclusions
Information Telecommunication Technologies increasingly determine the competitiveness of tourism organisations
Tourism industry should take advantage of the Internet, Extranet and Intranet to manage its representation to the world, its internal efficiencies and its relationships with other partners.
ICT-enabled tourism organisations will benefit and grow in the future