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1.

1 Critically evaluate the impact of technological change on the historical development


of the tourism and hospitality industry.

Introduction
Gradual transformation and change in the overall pace and quality of work executed
in tourism and hospitality industry all across the world can be directly attributed to
adaptation of different aspects of technology in business operations.
Technology refers to "The systematic use of knowledge in the design, manufacture
and use of products and services, and in the organization of human activities which
refers to strategies, structures and applications that are the product of the technical
use (Business Dictionary).

Definition
ICT (Information and Communication Technology) refers to innovations which
provide telecommunications access to any data. It is comparable with IT but mainly
focused on digital technology, including the Internet, network devices, mobile phones
and other electronic outlets.

Impacts of technological change in tourism and hospitality industry

i) Organisation:
It only due to technology saved, protected and retrieved more quickly and as per
the convenience than in the past leading to more benefits to its actual and potential
users.
ii) Coordination:
Improved communications technology has broadened the contact potential of tour
operators with clients as well as business relationships, partnership and promoters.
Fast-speed Internet access also offers nearly instant video, audio and text
connectivity around the world for less than conventional methods such as remote
phones and mobile telephones would deliver. Information can be sent from an
individual to an airline, hotel or other company, and then returned to the customer. It
allows bookings and scheduling which might have taken hours or days to occur
immediately, significantly reducing waiting and productivity loss within the
organization.
iii) Self service bookings:
The rise in online or e-reservations is among the major effects on the travel
companies especially Airlines. Clients who want to schedule a journey don't have to
visit tour operators to book tickets. Both airlines and hospitality companies
themselves have completely cut off tour operators and travel agents by letting clients
to make reservations and host straight through their transaction enabled websites.
1.2 Critically analyse the impact of contemporary technological developments on the
future growth of the tourism and hospitality industry.

i) Artificial Intelligence in tourism and hospitality industry:


- Artificial intelligence development (AI) has a considerable effect on customer,
employee and other actors ' relationships (Belanche, et al, 2019). Specifically,
Analytical, cognitive and empathically capabilities are gradually introduced by AI
(Huang and Rust 2018), thereby allowing for new forms of engagement to be
included in corporate strategy. In this way, a more difficult step has been taken; AI
has increasingly used process and operation optimization as a way of interacting
directly with front-line consumers (Van Doorn et al., 2017).
- AI offers the opportunity to explore a variety of new possibilities (using self-
supporting robotics, helicopters, vehicles; chat bots and automated support systems;
machinery learning, block chain etc.) and presents a direct opportunity to advance
travel, recreational and hospitality development by offering higher value to its clients
and increasing the value of the businesses. As a result, this literature is being
increasingly discussed and debated despite the fact that empirical research in this
area has still been lacking and potential applications for tourism, recreation and
hospitality remain untapped.
ii) Internet of Things (IOT) in tourism and hospitality industry:
- The Internet of Things (IOT) refers to network connectivity being included in
ordinary devices and equipment which usually has no such capacities. Examples of
these devices could include water heaters, electricity meters, automobiles and large
machinery guided, operated and maintained with the help of nano IOT chips installed
in them which generate real time data about the device and guide, alert and keep its
user updated.
- Basically, these equipment or machines can be converted into' intelligent' objects
that can both transmit data and communicate. This can boost collection of data,
maximize workflow levels and allow multiple devices, such as the phone or tablet, to
be managed or tracked from a centralized location.
Use of IOT in hospitality industry
a) Highly customised hotel rooms:
So now, the Internet of Things has primarily been used by ultra personalization
within the hospitality management system. For instance, Hilton and Marriott have
sought to use the idea of' connected rooms' in a slightly different manner, where
users can control a large number of functions of the space from a cell phone or
tablet. The heating, ventilation and air conditioning systems may be regulated from a
single point, or even just the temperature specified and different equipment may
regulate the environment dynamically at that temperature.
b) Information based on location:
Bluetooth, GPS and beacon technologies have created new ways to provide
proximity-based information, and these can be utilized by hotel and hospitality
providers to transfer information to clients at the very moment when they are most
important for the user.
c) Electronic key card:
Hotels have generally focused on physical keys or even individual keys to access
rooms in hotels, but the IoT creates new ways of delivering digital or wireless keys to
their customers directly on mobile phones. Hotels can use electronic
communications to transfer an electronic key an hour prior to check-in time to their
guest's phone, synchronize the door to the check-in desk and permit them to bypass
the check-in desk and go directly to the room.
iii) Block chain in tourism and hospitality industry:
- Block chain technology provides many applications for those who handle hospitality
operations and administrations, with the protection and safety benefits being one of
the most evident. for example, all record is encrypted and traceable, and the server
can never go offline or be destroyed by a cyber-attack, essential for safeguarding
and firewalling money transactions. Therefore, technology can play an important role
in simplifying payments in practice. This may at present be a little difficult, especially
when it comes to settlements in the outside world. The whole method can be
automated and made clear, with the use of block chain technology.
- With respect to the benefits of block chain technology, transparency and protection
are very critical in the tourism industry. The decentralized nature of the block chain
ensures that knowledge can never go 'offline' or be destroyed in case of an
accidental breakage or cyber attack The tourism industry depends on various
companies to provide data. Tour operators, for instance, had to send customer data
to the airlines and hotels, while traveller’s valuables are often transferred and
monitored between companies Block chain can easily and more reliably access and
store vital information, because storage is exchanged across the entire network.
iv) Enterprise resource planning (ERP) in tourism and hospitality industry:
- Enterprise Resource Planning (ERP) framework satisfies all the criteria of a new
travel business. It allows tourism companies to offer outstanding customer service,
synchronised departmental work tasks, ensure the performance of the day-to-day
work and provide structured data in real time. ERP allows operating costs to be
reduced and market performance to be improved.
- For a tour company, it is important to use all advantages and resources to be on
top in the current economic climate of strong competition. One such advantage could
be the ERP software system. It is tailored to the tourism industry's needs and
allowing the company to save both work hours and its money.
2.1 Critically review the emergence of the e-tourism concept.

E-tourism is the digitization of all the travel, transport, hospitality and catering
industries ' processes and value chains that enable organizations to optimize their
productivity and performance(Buhalis 2003).

E-Tourism has developed across several phases from simple email systems to
Destination Management Systems. The phases in the development of E-Tourism
are:
- FIRST PHASE (1970S)
Development of Computer Reservation Systems (CRS).

- SECOND PHASE (1980S)


The Global Distribution System (GDS) was implemented by CRS

- THIRD PHASE (SINCE THE 1990S)


Internet Distribution System (IDS) and Destination Management System (DMS)

i) First Phase (1970s) - Development of Computer Reservation Systems (CRS).


- In the 1970s, the introduction of computer networks and electronic communication
helped to create the online reservation system.
- "CRS is a system for managing the tourist organization's products, and local sales
offices, affiliates and service providers can reach the system to book tickets. The
booking offices are therefore fitted with online data"
- CRS has developed a new paradigm of travel and tourism marketing and has
created a new version of sales network.

ii) Second phase (1980s) – The Global Distribution System (GDS) was implemented by
CRS
- CRS developed into GDS as airlines have increased their global reach by growing
overseas booking offices.
- A vast variety of facilities and goods has been introduced by GDS for all sectors.
This horizontally incorporates many airline systems. GDS also assists in the
reservation of tickets for all airlines incorporated into the GDS. In this scenario many
Airlines now prefer to throw open their inventory on GDS.
- GDS combines integrated facilities like lodging, rental cars, booking of buses /
trains, etc. It's yet another development in terms of CRS. not only plane tickets
can be purchased, but there can also be accommodation, car rental etc.
iii) Third Phase (Since the 1990s)-Internet Distribution System (IDS) and Destination
Management System (DMS)
a) Internet Distribution System (IDS):
- IDS are digital tour agents or electronic travel agents unable to book tickets
physically. Ticket reservation agents have almost been replaced by websites.
- The key difference between stage two and stage one has been that in step three,
online sites substitute the ticket reservation agencies and ticket reservation
agencies. Tourists and foreign tourists can now check for and book their ticket
online.
b) Destination Management System (DMS):
- After the online distribution network evolved Destination Management System,
consisting of a database and customer information repositories and a connecting
framework for both.
- DMS enables visitors with detailed information on the local attractions and services
available and contributes greatly to the development of tourism.
- DMS enables better client relations as it focuses on attention on relationship
marketing. Relationship marketing empowered by DMS enables:
-Focus on customer protection
-product value strategy
- future emphasis on consumer services
- higher level of consumer interaction
- good level of consumer communication
- complete quality assurance.
- Timely brand recall
2.2 Critically evaluate how OTAs and meta-search impact the development of the
tourism and hospitality industry.

Definition
"Online travel agencies (OTAs) are virtual agencies offering and making accessible
various travel services like Airlines tickets, hotel bookings, activities bulk booking
benefits etc to the end users at substantial rebates than their offline brick and mortar
counterparts."

Some positive impacts of OTAs (online travel agents) affecting tourism and hospitality
industry
- Greater exposure:
Although some consumers may prefer to make reservations via OTA, hotels may
gain more exposure through OTAs on their own websites. According to the study
conducted by Cornell university and published it was found that hotels experienced
increase in the number of reservations line up by simply listing on Expedia, this
necessarily doesn't translate into actual bookings on the same site. The primary pull
factor towards OTAs is because of wider reach to the consumers as these potential
customers make the use OTAs for research hotels and its potential parameters like
location, brand association, tariffs and overall service encounters. The "billboards"
impact of hotels simply listing in a common OTA site increased in one study from 8
to 26%.
- Increase in bookings:
OTAs can provide hotels with an easy and effective way to make more reservations
in the slow season. OTAs may provide quality-added benefits and bundle benefits by
utilisation of advance yield management practices enabling the hotels to sell the
vacant rooms at BAR (best available rates). Single stock shopping also is possible
due proximate listings on airline and car rental deals transpiring into increase in
overall booking components.
- Increase in customers:
OTA websites are customer-friendly: Data is provided in many languages and
visitors can get to know the events and attractions in the area they are looking for.
As a result, these platforms may help new visitors who may otherwise have not
heard or cared about certain hotels.

Some Negative Impacts of OTAs affecting tourism and hospitality industry


- Commission Fees:
Every time a client books a room via an OTA, the hotel has to pay a fee to the OTA
which can vary from 15 to 30 percent of a reservation anywhere. Like a finder's fee,
in exchange for reservations, the process of paying commission is a long-standing
pattern for companies. Nonetheless, as OTA uses become increasingly common,
hotels find it increasingly difficult to bid for reservations on their own website.
- Price Parity:
As can be attested by any hotel manager, if the property has decided to offer and
display as specific price on any OTA website than the same hotel cannot display the
lower price on its own websites resulting into resentment and discontent amongst the
potential clients.
- Misplace of client information:
When a guest books with an OTA, the email address, telephone number and other
information are available at the OTA, but the details are not always forwarded to the
hotel. Furthermore, if a client books their stays directly with the hotel, managers can
implement comprehensive check-in / check-out procedures and VIP loyalty programs
to collect contact data from the guests.

Definition
Meta search engines apply user-typed keywords to a variety of search engines to
increases the number of related pages as different search engines may have listed
different sites.
Impacts of Meta-Search in tourism and hospitality industry
Meta-search for hotels such as Google Hotel Advertising gives prospective bookers
a fantastic opportunity to view the hotel rates directly compared to OTAs on the
Google search page. Offering direct booking advantage in case of competitive rates
In other words, a hotel needs to compete in the meta search sites. A communication
partner can be found who can deliver hotel rates and inventories directly to the meta
search sites.
- As per Google, meta search has aided its hotel advertisement affiliates
(participating hotels) worldwide obtain 65 percent more leads year-over-year in the
first six months of 2018.
- The Google Hotel Advertising cancelation figure is around 13 percent. It is far
below the number of cancellations that occur with OTA booking, compared to about
20 to 40 percent.
- Google Hotel Ads became the most popular Meta search engine, above Trivago
and Tripadvisor, with rise of 150 percent compared with last year's span.
- 12 % of hotel bookings are made by met search engines and 25 percent are
supported by other platforms (SEO, links, Ads, Play, etc.).
2.3 Critically analyse how consumers and businesses make use of the internet in the
tourism marketplace.

Use of internet by consumers:


-Travellers are easily using the internet to plan and book their vacations. More than
75 million online travellers in the United States used the internet in order to obtain
details on locations or to check prices and timetables, according to the Travel
Industry Association (TIA 2007). Almost every online booking advisor claims that
some of the trips that have been scheduled for the past year on the Internet were for
leisure, holiday or personal reasons. Three out of ten claim that most of the tours on
the Internet have been organized for business or conference purposes. The most
prominent forms of portals used for online trip booking are the websites operated by
online tour companies like Microsoft Expedia, Travelocity or Priceline etc.
- Online travel consumers carry out a range of online travel scheduling practices.
Browsing for flight costs, maps or gps coordinates and searching for better
accommodation to stay is most common. While there is a reasonably stable increase
in the number of people planning online trips, online travel reservation has been
strongly growing. In reality, online tourists book or make travel books on-line four out
of ten (41 percent). You can book your fare, hotel room, rental car, or online
packages. Virtually all people who make online travel bookings claim they have
booked for fun, holidays or private purposes.

Use of internet by travel companies:


- By publishing a webpage, several tour companies have established an online
identity, with extensive trip planning. Full travel websites are often complicated, and
require the support of providers of external travel technical solutions like Travelocity.
As more tourist’s book or access relevant information through the internet websites.
- Such organizations use Global Distribution Systems (GDS), including Sabre
Holdings, Amadeus, Galileo and World span, for the purpose of providing accurate
and up-to-date information on hundreds of thousands of holidays, hotels and car
rentals. Several websites allow visitors to compare hotel rates and flights with
several companies free of charge. Visitors can often arrange the packages for trips
using services, the price and or near towns or sights. Tourism companies have
introduced competitive pricing methods to ensure that the complete financial security
of travellers at the same or cheaper prices as those provided on the Internet by the
company.
3.1 Critically evaluate the importance of the social media for international tourism
marketing.

As per Indian scenario:


Importance of social media in marketing of Indian tourism:
- In a country like India, travel reporters, travel press specialists, leading beautiful,
famous and labeled publications mainly from Indian Metropolitan cities and digital
media often illustrate customers about destinations of visitor concern, transportation,
tourism, Major tourist period (peak and lean), photo, shopping area, services,
hospitality, people, cultural heritage in order to respond to the demands of the
travelers in the future.
- One of India's renowned newspapers, Economic Times, based in Chennai,
published a 28-03-2002 article on "promoting Indian tourism in Australia", ' Sir
Edmund Hillary, who first climbed Mount Everest together with Tenzing Norgay,
collaborated to support Indian tourism in the Australian region by doing a cost-free
television telecast.
- Tourism generates income through foreign exchange. The government requires the
foreign exchange to lower its deficit and the media are responsible for increasing
knowledge about tourist attractions for foreign visitors in India. The media industry
works together in order to promote tourism and add profits to the country through
hotels, travel companies, travel agents, airlines and government agencies without
the encouragement and help of the media, many areas would have been unexplored
because foreigners have very little knowledge of the location.
As per Russian Scenario:
Importance of social media in marketing of Russian tourism:
- As per the UNWTO; ETC European travel commission (2009) research; the large
number of Russian tourists (74 per cent) scheduled a trip of Europe by visiting the
tour company. Only 14 per cent scheduled their tour through the service provider
(web site, text or email). The priorities vary when you find ways to search for travel
information. People prefer the Internet, suggestions from friends and the advice of
travel agencies. People prefers to search websites which enable them to schedule a
tour, they are not very interested in basic information websites. The website will
probably be in Russian language and provide details on holiday travel (for example,
hours of service, prices of certain items, and possibilities for business, etc.) that is
normally not provided by travel agents.
- Russian Association for Electronic Communications (RAEC): Sokolov (2015)
estimates that in 2014 the overall market for online tourism market is estimated at
282 billion rubles, a rise of 45 per cent in size. Growth was 27 percent in the
previous year. The CEOs of Biletix and Anywayanyday (popular airline aggregators)
believe that the average rate of transfer between consumers from offline to online is
about 10-15 percent due to the difficult times for Russian tourism and focus on
domestic tourism in 2015. Market Investigation (2015) reports that airline tickets,
hotels and package tours are the main segments with a declining order of online
travel. During 2014, the industry's electronic payments during housing have risen
31% in volume, but this is attributed to a substantial increase in rubles in the average
prices of booking abroad. The size of the demand for package tours drops from
Rubles 31.7 billion to 28.4 billion. 80-90% of tours are scheduled and browsed
online, but payments are made by travel agents and travel companies. A lack of
confidence is the preconditions for charging the tour operators websites online and
for improving them.
3.2 Critically review the impact of social media on destination marketing.
Introduction
This critical review Analysis the impact of social media on destination marketing of
'regions rather than countries'. Regions shortlisted are Madhya Pradesh (India).

Impact of social media in Madhya Pradesh state tourism:


- Social media marketing approach in a company describes how social media
platforms like Face book, Twitter, and YouTube are used by an organization to
accomplish a marketing target for it. The Social Media strategy incorporates and
promotes higher level approaches and provides data and opportunities that are used
to build and adapt the business model of the company. The state also strengthens
the web-based platform in addition to its plan to Market Madhya Pradesh via social
media. The robust website for tourism (www. Madhya Pradesh Tourism.com) has
been updated to provide more interactivity for the tourists and potential visitors alike.
www. MadhyaPradeshTourism.com is now the main tourism platform covering in
detail, apart from popular tourist attractions, all the Districts of Madhya Pradesh. The
site offers a full collection of data since 2004 on numerous views, hotels, guides,
activities, events, locations and other travel related details.
- The social media impact has been strongly reflected in the fact that in 2013-2014
Madhya Pradesh reported a substantial 18.5% growth in domestic and foreign
touristic revenue. In 2013-2014 a total of 6.34 domestic and 2.80 lakh visitors arrived
in Madhya Pradesh according to the national tourist figures, an 18.5% higher rate
compared to 2012-2013. A research from the Associated Chambers of Commerce
and Industry of India in (Assocham) showed that domestic tourism entry to the state
rose by 381 per cent between 2006 and 2012 at an astoundingly compounded
annual growth rate (CAG). Madhya Pradesh has recently flourished and has become
the most popular domestic tourist attraction than Rajasthan, Gujarat, Uttarakhand
and West Bengal.
Impact of social media in Republic of Tatarstan (Russia) tourism:
- The National Commission initiated 7 marketing initiatives in Russia, Finland and
Germany in order to promote Tatarstan as a tourism destination in 2017.
- In 2017 new platforms were introduced to promote Tatarstan tourist services:
- Before the screening of the most box-office cinemas the video "Tatarstan tour" has
been shown in the Moscow, Petersburg, Yekaterinburg, Samara, Nizhny Novgorod,
Perm, Saratov, Ulyanovsk, Ufa, Izhevsk theatres.
- The functionality of the Republican Tourism Website visit-tatarstan.com continues
to be revised and widened. The number of tourist visits during the reporting year
rose nearly about 14 times and reached more than 15 thousand each quarter from
Russia and more than 120 foreign nations.
- The direct contact with Russian and international media has been given much
focus. Together, over 3,000 journals were shown in 2017 concerning the tourism
potential and attraction of the Republic of Tatarstan and 220 plots on television
channels.
3.3 Critically analyse the impact of social media and social review sites on tourism and
hospitality organizations.

Impact of social media on Hilton group of hotels


Waldorf Astoria:
- Waldorf Astoria is Hilton's one most symbolic luxury brand. The inability of Waldorf
Astoria to provide lavish amenities and exclusive opportunities for all visitors is
described. The brand follows a series of three main pillars which describe
themselves and their experience. This brand defines its' True Waldorf Services' as
the first vital principle. Waldorf describes it as "reacting to their guests ' changing
needs, always submitting the right note, always offering anticipative and discreet
service and offering an unparalleled luxurious experience." (Kingsley, 2019)
Facebook:
- On Facebook, Waldorf Astoria has achieved fame because what people are looking
to get is their product. Almost every post has a picture or video on the subject of the
post. Photos and videos affect audiences tremendously, as they can see a visual
instead of hearing it. Most articles refer to the view of a specific resort or hotel. The
preference of individual posts for different hotels provides a single image and
connects visitors with new destinations. Most posts provide exclusive culinary
options or events that can only be located in one specific location on their property
this will also help to keep people at home, as food is often an important factor in
leisure travel. (Waldorf Astoria, 2019a) Most significantly, each photograph is clear
and reflects comfort and relaxation. The reality resonates with tourists who look for
serenity and a lovely place to relax.
Instagram:
- Waldorf Astoria shares several varieties of Instagram posts. Most posts are basic
images, but videos are included. Certain features of the picture or video are more
striking with the use of basic colors. The focus on food is clearly given as several
posts highlight the special and savory cuisine which can be found in any of their
hotels all over the world. The range of experiences that a visitor can enjoy while
residing at one of their properties is essential for Waldorf Astoria. These kinds of
posts lead to describing the brand for audiences while also promoting the different
activities. Such posts provide a list of the rooms available. These postings help users
to assume themselves and experience the same thing in Instagram. (Waldorf
Astoria 2019b)
Impact of social media review sites on Hilton group of hotels
- The Trip Advisor is the world's leading digital travel review website with over 75
million users and more than 60 million regular monthly users (May 2012; (Keen
2008) and was selected as the pioneer of online hotel feedback website by
consumers. The main function of Trip Advisor is to gather and analyze travel related
information from travelers, with its guest reviews and ratings as its most important
features. Trip Advisor reviews the material of users to verify it follows the content
policy and, upon acceptance, it incorporates and retains the content permanently.
Although hotels will address each question, hotel requests to remove or modify
comments are not provided. There has been some concern about fake feedback but
in an analysis of Trip Advisor reviews, O'Connor (2008) claimed that only around 1 %
could be seen as fake posts and that as the number of reviews rises, the effect of
fake reviews drops.
- Negative reviews of Trip Advisor on Hilton hotels:
a)Reviews like, rooms are not up to the mark.
b) Cleanliness related issues.
c) Staff members are not supportive and ready to help.
d) No attention to client during and after the stay etc.
- Managerial implication to handle and avoid:
1) specialized team to handle and manage online feedback
a) Instruct the staff to, Address all feedback
b) Avoid police response time
c) Provide personalized replies
d) Analyze the feedback.
2) Supervising negative feedbacks of clients
a) Start to monitor the percentage of negative feedbacks every month
b) Sets realistic targets to minimize the percentage of negative ratings (e.g. 5%
reduction in the next 3 months)
c) Track the performance level of each target and report each month / quarter.

Impacts of social media on Rajasthan tourism:


- In the report, 86% of people in all social platforms scheduled their trip to Rajasthan.
Of the total 24 domestic travellers, 21 domestic travellers considered any type of
social media instrument for planning their visits. 10 visitors from abroad
(approximately 83 percent) decided to use any type of social media tool to schedule
their visits. The most effective social media resources, referred by visitors, have
been created by the Wikipedia, the Facebook and user reviews websites (in
particular the Trip advisor).
- They find several aspects that affect tourists including reviews, social media
available information and tour operator / friend / prior visitor’s suggestions. Many
people acknowledged they were affected by the social media customer reviews
which are available online. Majority of travellers indicated that
offering comprehensive text information from multiple social media platforms
regarding specific tourist locations / photos / videos and testimonial. In addition to
these feedback, the following information was provided by social media: travel /
infrastructural data, scheduling and fare charges for various locations, lodging / food
/ local market-related information, the right time to visit different locations, visitor
safety / protective measures and emergency control systems for destinations.
- Facebook page: The official Facebook page of Rajasthan tourism was established
on 30 April 2013. It was revealed to very few departmental respondents. This was
only produced for use during the last year. The website contains a greet note with
the slogan: "The land of Maharajas and the Kings" which describes some information
of Rajasthan's history. Several descriptions of popular attractions such as Pushkar,
Pink Floyd Cafe, Jaisalmer and Mount Abu were also found in Rajasthan. 16
pictures (including a logo) are downloaded on this official website. Most likes are 785
on a photo. A forum-page "At your service is provided on this official website where a
person can make a recommendation or question. Additionally, a "Rules of House"
subpage is provided on the website to give users feedback regarding the content
and reviews on the pages that are posted. The picture on the Facebook page is
given with the Twitter handle link ' http:/bit.ly / RajasthanT.'
- Twitter page: The official twitter account also features the Rajasthan tourism. On
the Rajasthan tourism twitter page it reveals its extremely gradual growth of
subscribers (approximately 3.1% rise). The Rajasthan Board of Tourism uses very
restricted social media platforms. Such accounts are not frequently published with
any sort of event details on Facebook and Twitter. There is also a lack of user
involvement to answer questions.

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