E-Tourism Nicos Rodosthenous PhD 28/02/ /2/2013Dr Nicos Rodosthenous1

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) Introduction IT is one of the external environment elements for tourism, travel and hospitality. ICTs offer the interface between consumers and suppliers globally. 1. The impact of ICTs on tourism ICTs incorporate information, management and telecommunication systems to enable the processing and flow of tourism info within and between organizations. 28/2/2013Dr Nicos Rodosthenous2

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) eTourism reflects the digitalization of all processes and value chains in the tourism, travel, hospitality and catering industries. It includes eCommerce and applies ICTs for maximizing the efficiency and effectiveness of tourism organizations. (eMarketing, eFinance, eAccounting, eHRM, eR&D, ePlanning, eStrategy, eManagement) eTourism bundles three principles:  Business management  Information systems and management  Tourism 28/2/2013Dr Nicos Rodosthenous3

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) 28/2/2013Dr Nicos Rodosthenous4

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) ICTs in the tourism industry is a new subject. Today many organizations use ICTs in the operations of tourism enterprises, i.e. airlines, travel agents, tour operators, hotels. ICTs are used for strategic and tactical management purposes, with a number of studies on strategic ICT applications and tourism business re-engineering. Class discussion: ICTs application in tourism industry. 28/2/2013Dr Nicos Rodosthenous5

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) 2. The transformation of best operational practices in tourism by ICTs.  ICTs provide business opportunities, strategic tools for networking and interaction with all stakeholders in a profitable way.  ICTs can improve managerial processes for better control and decision making procedures, and to support enterprises in reacting efficiently to environmental changes and consumer needs and trends. 28/2/2013Dr Nicos Rodosthenous6

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A)  ICTs enable organizations to interact with customers through (CRM) –customer relationship management- for meeting and satisfying customer expectations.  Managing customer relationships on a continuous (365/24) and global basis is of great importance for the successful tourism organizations in the future. 28/2/2013Dr Nicos Rodosthenous7

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) ICTs enable organizations to compete on a global basis and to enlarge their market share. Case study 1: Travelocity, Expedia.com, Marriot.com. Save up to 58% by booking online! 28/2/2013Dr Nicos Rodosthenous8

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) Several major drivers make ICTs an integral part of the tourism industry in: 1.Economic necessity, as global competition requires maximum efficiency on a worldwide basis 2.Rapid advancements in technology and particularly the Internet, the development of 3G Mobile and interactive TV 3.Rising consumer expectations for further improvements to the service and to communicate with the organization interactively. 28/2/2013Dr Nicos Rodosthenous9

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) ICTs offer opportunities for R&D and enable the industry to provide specialized products to niche markets and achieve competitive advantage through differentiation. ICTs assist the reduction of operation and communication costs by:  Integrating operational systems  Maximizing internal efficiency  Minimize the staff required for back-office jobs  Reducing the amount of face-to-face or telephone communications 28/2/2013Dr Nicos Rodosthenous10

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A)  Enable consumers to have access to all info  ICTs can alert organizations about pricing, demand, availability, i.e. airlines, tour operators. On-line auctions and last minute offers provide a new and interactive avenue of excess capacity. E.g. last-minute.com  Only dynamic and innovative organizations will be able to survive in the future by using ICTs. Case study AA-Sabre solutions 28/2/2013Dr Nicos Rodosthenous11

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) 3. Tourism system and ICTs Definition of Tourism: “the activities of persons travelling to a place outside their usual environment for not more than one consecutive year for leisure, business and other purposes” WTO (world travel organization. ICTs enable the massive growth of tourism and the increased volume of supply and demand. 28/2/2013Dr Nicos Rodosthenous12

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) The penetration of ICTs in tourism is to a large extent customer driven, as consumers familiarize themselves with new ICTs and seek e-interaction with the industry. 4. The use of hardware and software in tourism organizations ICTs are used to exchange info and to facilitate the operations of tourism industry. They enable tourism distribution and communication with consumers in order to exchange info, contracts, 28/2/2013Dr Nicos Rodosthenous13

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) reservations and payments, divided into:  Hardware  Software and computer applications  Communications (including telecommunications) and networking.  Dissemination of information and distribution of tourism products made through CRSs (computer reservation systems). At a later stage eCommerce applications were used, and recently 28/2/2013Dr Nicos Rodosthenous14

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) by using the PCs and smart mobiles phones. Self-service terminals or kiosks are expanding in usage in the tourism industry, and the bank ATMs as points of info and sale. (information, reservations, payments, issue travel documents etc). Software front-office applications in tourism is divided into: reservations, check-in, check-out, ordering systems. Back-office applications is divided into: planning, financial, management a/c, 28/2/2013Dr Nicos Rodosthenous15

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) payroll, personnel, supplies, inventory control, security and MIS (management info system). Integration of these two applications maximizes efficiency and reduces the cost of data processing. 4. Applications of ICT in tourism and hospitality. ICTs support all business functions for both day- to-day operations and the strategic management of tourism. 28/2/2013Dr Nicos Rodosthenous16

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) 1.Applications used in tourism industry:  Office automation, reservation, accounting, personnel, payroll.  Portable/wireless communication devices  Internal management tools, management support systems, decision support systems and management info systems.  Internet/intranets/extranets 28/2/2013Dr Nicos Rodosthenous17

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A)  Networking and open distribution of products through the Internet.  Computer reservations systems (CRSs)  Global distribution systems (GDSs) (e.g. Galileo, Amadeus, Worldspan, Sabre)  Destination management systems (DMSs)  Internet-based travel intermediaries (e.g. Expedia.com, Travelocity.com ) 28/2/2013Dr Nicos Rodosthenous18

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A)  Mobile/WAP-based reservation systems  Calling centers  Interactive digital TV (IDTV)  Kiosks and touch-screen terminals 2. Applications used in Hospitality industry Front office: reservations, check-in, payments Back-office: accounting, payroll, human resources management, marketing. Customer entertainment and service 28/2/2013Dr Nicos Rodosthenous19

E-Tourism: the dynamic interaction of ICT’s and tourism (Part A) Communication with consumers and partners 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. 28/2/2013Dr Nicos Rodosthenous20