Professional Documents
Culture Documents
E-Tourism & Social Media
E-Tourism & Social Media
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.
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.
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).
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.
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.