1. 07.08.2015Travel e221 TRM 253 Information Systems for Tourism Industry An overview of current developments and major issues in the field of tourism and information technology Importance of IT for the various tourism organizations The impact of the Worldwide Web on traditional sales approaches models of technology use up-to-date properties of existing technologies inter-organizational systems in Turkey

2. 07.08.2015Travel e222 Effects of the Internet on customer behavior: the new travel buyer In 1997, thousands of travel agents in USA started to disappear... Today..More than 65% of flight tickets in USA are sold online! more than 59 million internet users in USA went on-line last year to gather information; 395% growth from 1997 to 2001 Of that group, 25 million actually purchased travel products or services on- line, a 384% growth from 1997 to 2001

3. 07.08.2015Travel e223 The Internet is an ideal technology for travel. It offers a vast information resource, immediate convenience and interaction that can provide a very personal experience. As the Internet reaches to every house and business, it will find a huge market of travelers looking for information "Just Beyond their Imagination, and only a click away". Today, Travel accounts for a nearly 35% (almost one third) of all annual online transactions in the world UK has already lost 2000 travel agents in the past 3 years, and there will be many more joining them…We are going to see fewer agents making money 5 years from now…Lots of big travel companies are going to be non-profit… TURSAB must have 4000 travel agents; last elections in 2009 only 1400 agents voted for elections!...

4. 07.08.2015Travel e224 Today's challenge to all players in travel field is not in finding passengers, but in "finding profit". International Tourism receipts reached 856 Billion usd in 2007 (WTO) Yahoo Travel in a recent survey indicated 61% of people go on- line for travelYahoo Travel in a recent survey indicated 61% of people go on- line for travel 2008 fact from USA hotel industry: 75-80% of hotel stays are not intermediated!... According to a September 2008 released study by Prophis eResearch, an estimated 19 million online Americans have visited one of the top ten travel 2.0 traveler community based sites such as TripAdvisor in the past 12 months.

5. WTO stats UNWTO's Tourism 2020 Vision forecasts that international arrivals are expected to reach nearly 1.6 billion by the year 2020. Of these worldwide arrivals in 2020, 1.2 billion will be intraregional and 378 million will be long- haul travellers. The total tourist arrivals by region shows that by 2020 the top three receiving regions will be Europe (717 million tourists), East Asia and the Pacific (397 million) and the Americas (282 million), followed by Africa, the Middle East and South Asia.

8. 07.08.2015Travel e228 Basically travel portals started by selling budget airline tickets over GDSs. Their interfaces (API) softwares connect to GDSs such as AMADEUS, SABRE, and make possible to check availability online & real-time.. And therefore to sell.. Next, the giant hotel database being sold inside the GDSs became their hotels section! And the same for rent-a-car and all other providers, even theater tickets! In a very short time, it was clear that those GDS rates of hotels & ren-a-car companies were NOT SELLABLE.. Now, Travel Portals start to establish their own database of hotels, car rental agencies, bus- train tickets, etc. But this time, it is their OWN database, and their OWN PRICES... Meaning, no longer the AGENT commissions...Now they are giant TOUR OPERATORS on the web... Online-Booking Travel Portals

9. 07.08.2015Travel e229 Travel Portals : giant travel shopping centers of web.. http://www.travelocity.com http://www.expedia.com http://www.bookinturkey.com http://www.venere.com http://www.elong.net http://www.orbitz.com

10. 07.08.2015Travel e2210 Basically travel portals started by selling budget airline tickets over GDSs. Their interfaces (API) softwares connect to GDSs such as AMADEUS, SABRE, etc. and make possible to check availability online & real-time.. And therefore to sell.. Beginning of IT use in tourism industry (CRS of Amadeus, Galileo, Worldspan) Next, the giant hotel database being sold inside the GDSs became their hotels section! And the same for rent-a-car and all other providers, even theater tickets!

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12. According to a just September 2008 released study by Prophis eResearch, an estimated 19 million online Americans have visited one of the top ten travel 2.0 traveler community based sites such as TripAdvisor in the past 12 months.

14. Web 2.0

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17. 7-Ağu-15Travel e2217 ICTs (Information & Communication Technologies) Tourism products are therefore almost exclusively depend on "representations & descriptions". Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism is a very information intensive activity. Unlike durable goods, intangible and variable tourism services cannot be physically displayed or inspected at the point of sale before purchasing. Tourism services are bought before the time of their use and away from the place of consumption. Communication and information transmission tools are therefore indispensable to the global marketing of tourism industry

18. 7-Ağu-15Travel e2218 Tourism & ICTs Thus, tourism & ICTs increasingly provide strategic opportunities for powerful tools of economic growth, redistribution of wealth and development of equity around the globe. However they also instigate new challenges and threads for players that are unable to cope with the developments and are left behind technologically Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism & ICT are 2 key catalysts for enabling dynamic, innovative and knowledgeable communities and organizations to communicate and interact with outside world in order to import expenditures & benefit.

19. 7-Ağu-15Travel e2219 Question: Whether technological developments drive business strategies or visa versa? Answer: Business Strategy & mission of organization should lead their processes and technological developments. Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism However, it is also evident that unless management appreciates their technological strengths and weaknesses, they will be unable to implement these strategies. It is only a matter of time before technological progress provides trouble-free solutions at justifiable costs. Technologies have been surpassing their initial expectations to become commonplace.

20. 7-Ağu-15Travel e2220 Information Management Information Management (IT Dept.) is responsible for providing information and communication services and resources for the products and services, operations, management and control activities and co-operative work of an organization. It is therefore charged with planning, developing, implementing, operating, and maintaining the information technology infrastructure and all applications of an organization. This is an ongoing process, requires feedback and adjustment at each stage Information Management enables organizations to develop systems and processes in order to transform raw data and input from the external and internal environment through software to meaningful & useful information which can support business processes & decisions. This is an ongoing process, requires feedback and adjustment at each stage. Dimitrios BUHALIS - Information Technology for strategic tourism management

21. 7-Ağu-15Travel e2221 Tourism Determines the competitiveness of an organization. Etourism takes advantage of Intranets for reorganizing internal processes; extranets for developing transactions with strategic partners, and internet for interacting with all the stakeholders. Dimitrios BUHALIS - Information Technology for strategic tourism management Etourism is the digitization of all process and value chains in the tourism, travel, hospitality and catering industries that enable organizations to maximize their efficiency & effectiveness.

22. 7-Ağu-15Travel e2222 The key is to recognize where in the process these opportunities exist and to apply the appropriate level of technology. Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism Time & Speed are the key factors of future business. Only organizations that create real value for their customers and partners will survive.. The greatest problem when introducing new technology is that you can apply improved technology to a bad process. On the other hand, the greatest gain and return are made when both process and the applied technology are optimized.

23. 7-Ağu-15Travel e2223 Sometimes it is much better for organizations to wait until the marketplace and technologies settled, rather than investing heavily on new technologies and get the associated risks. Try not to loose their positioning and marketshare. They need to develop a close understanding and assciation with their target markets and use appropriate and affordable technology to serve their needs. Dimitrios BUHALIS - Information Technology for strategic tourism management However, employing the right technology at the right time is DIFFICULT TASK. Technology and its applications move much faster than the decission making of corporations. Tourism

24. 7-Ağu-15Travel e2224 Dimitrios BUHALIS - Information Technology for strategic tourism management Sales and intermediary organisations need to rationalise a selling tool (B2B or B2C) capable of real time operationsSales and intermediary organisations need to rationalise a selling tool (B2B or B2C) capable of real time operations need to offer, without interruptions, only what is really available, as soon as availability shows upneed to offer, without interruptions, only what is really available, as soon as availability shows up Tourism

25. 7-Ağu-15Travel e2225 It is, therefore, proposed that technology use for the tourism industry is influenced byIt is, therefore, proposed that technology use for the tourism industry is influenced by (1) organizational properties (2) personal characteristics of the leader (3) the fit between technology and organizational activities Tourism – Stages of IT use

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27. 7-Ağu-15Travel e2227 Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism – Stages of IT use The process of adoption and diffusion starts with a problem and/or the perceived need for an innovation (agenda setting) and continues with the search for a technology that is able to solve the problem (matching).The process of adoption and diffusion starts with a problem and/or the perceived need for an innovation (agenda setting) and continues with the search for a technology that is able to solve the problem (matching). The initiation phase ends as soon as the right technology has been identified.The initiation phase ends as soon as the right technology has been identified. What follows is the decision whether to adopt or reject this specific technology and is referred to as the point of adoption.What follows is the decision whether to adopt or reject this specific technology and is referred to as the point of adoption. The implementation phase starts when the technology has to be modified to fit organizational goals and, simultaneously, organizational structures and systems are altered to accommodate the technological innovation (i.e., redefining, restructuring).The implementation phase starts when the technology has to be modified to fit organizational goals and, simultaneously, organizational structures and systems are altered to accommodate the technological innovation (i.e., redefining, restructuring).

28. 7-Ağu-15Travel e2228 Tourism – Stages of IT use The implementation process is completed when the relationship between the technology and the organization is clear and the innovation becomes an integral part of the organization.The implementation process is completed when the relationship between the technology and the organization is clear and the innovation becomes an integral part of the organization. organizational capabilities influence the way technology is used in organizations.organizational capabilities influence the way technology is used in organizations. IT diffusion involves complex interactions between technologies and users in a given system. The properties of the system include both incentives and constraints to the use of technology. Adopter capabilities also influence how an adopter perceives IT.IT diffusion involves complex interactions between technologies and users in a given system. The properties of the system include both incentives and constraints to the use of technology. Adopter capabilities also influence how an adopter perceives IT. Also, personal qualities of the leader (e.g., attitude toward change, vision for the future) have substantial influence on the use of IT.Also, personal qualities of the leader (e.g., attitude toward change, vision for the future) have substantial influence on the use of IT.

29. 7-Ağu-15Travel e2229 From an Internet marketing perspective; websites development stages ; Stage 1 Web sites are pure “publishing sites” that only distribute data. There is limited dialogue between the Web site and the consumer because the Web is used like a traditional broadcast medium. Have low degrees of innovation and require little adjustment of organizational structures. Simple advertising strategies such as advertising banners and mass e-mail fall into this category.Stage 1 Web sites are pure “publishing sites” that only distribute data. There is limited dialogue between the Web site and the consumer because the Web is used like a traditional broadcast medium. Have low degrees of innovation and require little adjustment of organizational structures. Simple advertising strategies such as advertising banners and mass e-mail fall into this category. Stage 2 Web sites concentrate on information. These sites are database driven and allow for more specific retrievals and ask-respond interactions. More innovative and integrate more functions. Online auctions are one example for Stage 2 models.Stage 2 Web sites concentrate on information. These sites are database driven and allow for more specific retrievals and ask-respond interactions. More innovative and integrate more functions. Online auctions are one example for Stage 2 models. Stage 3 Web sites are “personalized interaction sites” that stress relationship building. The concept of stages of technology use can also be applied to e-business models. E- business models are highly innovative, multifaceted, and integrated into the overall organizational framework. Virtual value chain integration and virtual communities are seen as models that have Stage 3 characteristics.Stage 3 Web sites are “personalized interaction sites” that stress relationship building. The concept of stages of technology use can also be applied to e-business models. E- business models are highly innovative, multifaceted, and integrated into the overall organizational framework. Virtual value chain integration and virtual communities are seen as models that have Stage 3 characteristics.

30. 7-Ağu-15Travel e2230 BusinessConsumerGovernment Business Consumer Government B2BB2CB2G C2B G2B C2CC2G G2CG2G Extranets between Travel Portals & Tour Operators: TO entering its tour info into travel portal. eg: www.BookinTurkey.com www.BookinTurkey.com Corporate Booking System eg: www.BookinTurkey.comwww.BookinTurkey.com Travel Portals for end- user. eg: www.travelocity.com www.expedia.com www.travelocity.com www.expedia.com Following and applying for taxes and regulations: www.maliye.gov.tr www.maliye.gov.tr Airline, hotel loyalty, executive clubs www.delta.com/ www.hilton.com Consumers informing other consumers over good or bad experience www.sikayetvar.com www.HolidayTravelWatch.comwww.HolidayTravelWatch.com Applying for visas, passport, etc. www.egm.gov.tr/onlinep asaport.asp Government informing hotels & TO about new regulations. eg: www.turizm.gov.tr www.tursab.org Government informing consumers about new regulations, Travel Adversories. eg: http://travel.state.gov/ Such as Turizm Bakanlığı with WTO www.world-tourism.org Dimitrios BUHALIS - Information Technology for strategic tourism management