Chapter 3.

Introduction to Information Technology and Familiarization of

Application
I. INTRODUCTION

Tourism is travel for recreational, leisure or businesspurposes. The World Tourism Organization defines
touristsas people "traveling to and staying in places outside theirusual environment for not more than
one consecutive yearfor leisure, business and other purposes".Travel and tourism has not only become
one of the world'slargest industry but also grows consistently every year.

II. PRE-TEST
Multiple choice. Please choose the best answer.

1. The internet has a powerful impact on hospitality and tourism. A customer’s first experience
with your business is a visit to your website.
a. Computer Systems
b. Internet and Marketing
c. Conclusion
d. Mobile Communication
2. Mobile tablets and smart phones have replaced large desktop computers, making them virtually
extinct.
a. Computer Systems
b. Internet and Marketing
c. Conclusion
d. Mobile Communication
3. The systems allow communication between larger hotel chains with multiple locations to
connect easier.
a. Computer Systems
b. Internet and Marketing
c. Conclusion
d. Mobile Communication
4. The use of Technology in the hospitality and tourism industry has helped speed up operations
and helped the traveling process much more enjoyable and efficient.
a. Computer Systems
b. Internet and Marketing
c. Conclusion
d. Mobile Communication
5. Modern travelers expect the digital experience to continue on their trip.
a. Experiencing
b. Information technology
c. Graphics
d. Animation

III. LESSON PROPER

A. Lesson 1: Why Information Technology?

Information technology (IT) plays a vital role in commerce and

business which helps the differentorganizations for proficiently
working in order to elevate the output. Advancement in
Informationtechnology minimizes the required time for working in
the business field. Electronic storage,protection of records and faster
communication are benefits of IT which can be utilized.
Information technology is completely working in almost all fields such as learning, work, health and
leisure. IT is the best way to process the information and students must need to access the
computerand internet for increasing their skills. Schools are source of knowledge and information. So,
fromministries to classroom the use of IT is best way in educational institutes for enhancing and
holdingthe proficiency skills to compete with modern technology for both teachers and students.
Informationtechnology enhanced the learning process via computer and assignment which becomes
moremeaningful and productive for teachers to get expected outcomes from students.

1.1: The Digital Tourism Landscape

The evolving digital tourism landscape.A look at how digital tourism is changing, and how the touristis
shifting behavior:

The way in which tourism authorities and destination organizations market themselves to
theircustomers has gone through a period of reinvention over the past few years. Moving on from the
likesof price-comparison websites and PPC remarketing, it has become something much more
significantwithin digital.

 A different kind of tourist.

For as long as we can remember, the main way to book a trip would have been through a travel
agent;choosing your options from a printed brochure, ultimately deciding on the preferred
destination.Whereas now, the entire process is has been revolutionized. The experience has allowed the
customerso much more choice and control.

 This new customer journey is shaped by digital, and falls into a 5-stage process.
Dreaming.
Everyone has a dream holiday destination, which they’ll research for hours, even days
beforehand,checking reviews on TripAdvisor, Yelp and Foursquare. A recent survey suggested that over
60% of uswill research and browse through different holiday options for hours before we commit to
adestination.
Planning.
A study in the Applied Research in Quality of Life journal noted that the highest levels of happinesscome
at the beginning of the holiday process; the planning stage. It’s even reported that many of us actually
plan holidays that will never happen just to experience this feeling.Not surprisingly, most holidaymakers
now consider the internet their main source of information forholiday planning.
Booking.
Digital has made consumers much more aware of the options available to them. Content is
frequentlyposted with titles like ‘21 amazing places to visit before you die’ and ‘26 amazing things you
have todo in Berlin this weekend’ and it’s opening new doors to destinations that people might not
havethought about travelling to before, all whilst getting the best deal.With this trend comes an
opportunity to communicate value, and offer an experience that price comparison sites simply don't.
Experiencing.
Modern travelers expect the digital experience to continue on their trip. However, this is somethingthat
many tourism businesses are not tapping into. Geo location technology allows an application tosend
visitors notifications with recommendations on the best restaurants nearby, discount vouchersand the
option to book attraction tickets in advance.
Sharing.
Social Media is shaping travel. Around 70% of tourists will update their Facebook statuses whilethey’re
on holiday. Photos which may have previously been kept in a box under the bed are now sharedfor
friends to see on Facebook and Instagram at any time. Seeing a friend’s photos of their trip toIceland,
standing on top of a frozen waterfall can inspire others to dream about doing this themselves;something
which they may have never considered before.

 A destination marketing strategy.

Successful tourism websites and digital experiences don’t just happen. They all share the
samecomponents that are sometimes missed by other providers. Failure to recognize the key
successfactors will result in an experience that is not memorable at all, or worse, memorable for all
thewrong reasons.Tourism organizations need to look at their strategy and how it will speak to these
customers.
 The unique selling proposition.
Any tourism-based organization or brand needs to recognize what makes their offering unique, inorder
to develop a competitive advantage. The tourism industry is one that is growing; with it, alsocomes a
growth in providers. The two largest online retailers Amazon and Alibaba have both enteredthe
industry, and after the acquisition of tour-booking platform Viator, TripAdvisor’s CEO StephenKaufer
stated that “TripAdvisor intends to go beyond its core focus on hotels and be the solution ofchoice
throughout the entire travel cycle”. Adopting a Single Customer View and focusing on
hyperpersonalization will be the main focus for these big industry players and it will be a digital
experiencethat, therefore, sets it apart.
 Positioning the destination.
Based on needs and destination characteristics, such as hospitality, climate and attractions, asuccessful
market position is integral to any digital tourism plan. How a destination is positionedeffects how that
country is perceived in the eyes of tourists all around the world.A successful destination position
requires the destination itself to be considered a ‘product’. The priceand distribution are a consideration
similar to any brand; and are elements that need to becommunicated clearly and consistently to fight off
rival destinations.
 Content-led approach.
How a tourism organization defines its position is down to their content. The development of acontent-
led approach falls into two distinct categories.
First, the provider must build a calendar that focuses on promoting digital content around
specificmilestones. These can be destination specific, date specific, or can fit around topics that
havesignificance for that region as a whole. Planning is crucial at this stage to communicate the
rightmessage.Content marketing needs to reflect what’s important to the target audience, and will be
derived fromthe market position. In this case, it will always be content that is relevant to enhancing the
experience.
 Creative technology is a key.
Technology and digital will be at the heart of all future destination marketing campaigns. As thenumber
of marketing and fulfillment channels increases, so will the need to integrate them to ensurethat KPIs
are measured and met.Travel organizations have the power to connect suppliers and software to its
core offering,coordinating local products and services, and making them available globally. This allows
for a morepersonalized buying experience, based on an individual’s preferences without any barriers.

1.2: Using Information Technology for Tourism

How Information Technology Has Affected the Tourism and Hospitality Industry.

Information Technology has played an important role in the hospitality and tourism industry over thelast
decade. Technology has helped reduce costs, enhance operational efficiency, and improveservices and
customer experience. Both customers and businesses can benefit from improved communication,
reservations, and guest service systems.Technology has helped tourism and hospitality industries
replace expensive human labor withtechnological labor. This helps reduce labor costs, but also helps
avoid customer service issues.

Here are some examples of the ways that IT continues to improve the hospitality and tourism
industry.

 Internet and Marketing

The internet has a powerful impact on hospitality and tourism. A customer’s first experience with
yourbusiness is a visit to your website. This includes looking at pictures and reviews from past guests. It
isvital for a business to effectively utilize online advertising, social media, blogs, and online purchasingto
help convenience their customers, especially when your competitors are doing the same thing.
 Computer Systems
Computer systems allow communication between larger hotel chains with multiple locations toconnect
easier. They also help keep staff on the same page and make it easier to access information,making your
guests experience much better. Guest requests, housekeeping information, andreservations can all be
found on one system.
 Mobile Communication
Mobile tablets and smart phones have replaced large desktop computers, making them virtuallyextinct.
This is helpful, because many travelers take some type of mobile device with them on a trip.This helps
hospitality businesses keep customers advised of changes and delays to their reservations,offer deals,
and advertise by using GPS tracking.

 Conclusion
The use of Technology in the hospitality and tourism industry has helped speed up operations
andhelped the traveling process much more enjoyable and efficient. Technology not only helps large
chainhotels, but can also be useful to B and B’s and other smaller companies in the industry.

B. Lesson 2: E-Business And E-Commerce Systems

Some people use the terms "e-business" and "e-commerce" interchangeably, but they aren't
synonymous. To put it simply, e-commerce refers to buying and selling online, while e-business
encompasses all business conducted online. E-commerce can be viewed as a subset of e-business. If you
plan on starting or working closely with an internet-based company, you should strive to understand all
the ways these two concepts are unique.

However, to clearly bring out the differences between the two as both of them are completely different
phenomenon are as follows:
1. E-Commerce is the subset of E-Business.
2. Those activities which essentially involve monetary transactions are termed as "e-commerce".
However, e-business is a much broader term. There are many other things besides selling including
but not limited to marketing, procurement of raw materials or goods, customer education, looking
for suppliers etc.
3. To sell online is e-commerce but to bring and retain customers and educate them online about the
product or service is e-business. Having a website to do it is not sufficient. But, having a
professionally built website loaded with latest technologies to capture the attention of the visitor
and win his/her appreciation is required. When money is involved then the first thing which user
looks for is safety and security of his/her money. Having a website laden with such qualities is
important.
4. When Dell sell computers, laptops, monitors, printers, accessories etc online then it is not engaged in
e-commerce but e-business. Let me tell you how. When a visitor comes on the website, the first
thing he see is website design and navigation as well as those things which are going to help him
find what he is looking for and if he directly lands on the page he was looking for, he looks for the
information related to it. The information provided should be appealing and clear maximum doubts
of the visitor so as to convert him in a client. Till now no money has been exchanged nor been talked
about. So, was this e-commerce? No, it is e-business which guides the visitor.
5. E-commerce has also been defined as a process covering outward processes that touch customers,
suppliers and external partners while e-business covers internal processes such as production,
inventory management, product development, risk management, finance etc.

E-Business Basics
In a tech-driven world, it might be tough to tell which businesses are truly e-businesses. Perhaps the
best way to understand e-businesses is with the help of examples: Email marketing to existing and/or
prospective customers is an e-business activity. It electronically conducts a business process—in this
case, marketing. A company that builds and sells an online system that tracks inventory and triggers
alerts at specific levels is an e-business. Inventory management is a business process, and when
facilitated electronically, it becomes part of e-business.

E-Commerce Basics
Compared to e-business, the definition of e-commerce is clearer. In its basic form, it involves placing
orders and making payments online. E-commerce comes in multiple forms. In business-to-consumer
(B2C) e-commerce, a business sells goods and services to consumers through its website. Many brick-
and-mortar retailers have adapted to the popularity of e-commerce, and they now conduct sales
through their websites as well as in their stores.
E-commerce sales can include every element of a sale: ordering a product, paying for a product, and
having it delivered. It might also involve only part of the process. For example, a customer might order a
product online to be picked up at the store. Payment might be conducted online or at the store when
the item is picked up. Either way, the transaction still involved an element of e-commerce.
E-Commerce is the concept of buying and selling on the Internet. However, the infrastructure of any
business is more than just buying and selling and this is where e-Business begins.

2.1 TERMS AND CONCEPTS OF E-BUSINESS

E-Business Concept

A simple definition, e-Business is the use of electronic, computing, and Internet-based technologies to
change traditional revenue models and business designs to the mutual benefit of customers and
vendors.
A wordy answer : e-Business is the replacement of ineffective existing methods of information flow in
the supply and value chains of an organization, and creating new ones with Internet-based, computing,
and communications technologies. E-Business liberates resources like manpower, materials, money and
time, which can then be redistributed for more value-added tasks, to bring incremental revenue and
profits to customers and suppliers.
E-Business, by definition, implies the usage of Internet-based technologies, but to what end? Initially, e-
Business was used to replace current methods of information (bits and bytes) flow within and outside
organizations. Current methods of information flow to and from customers can be slow and expensive,
and contribute costs that are unsustainable in environments of extreme competitiveness. (Anand- 1998)

For example, a typical manufacturer may receive about 20% of the ultimate selling price to the end-user.
Eighty-percent of the margin is spent in the distribution pipeline from the manufacturer to the end-user.
Elimination of the non-value add intermediaries in the value chain (or disintermediation) can deliver
substantial benefit to both the producer and the consumer. Pundits predict that e-Business’s
disintermediation contribution will be as significant as Henry Ford’s Model T was to the manufacturing
and production paradigm. Forecasters predict that distribution costs will collapse substantially in the
next decade, significantly altering all methods of consumer and business buying behavior!

Basic Benefits of e-Business

 increase sales - this is the first thing that people consider  when dealing with e-commerce
 decreasing costs
 increase profits
 understanding that profits is not the same as sales
 Expands the size of the market from regional to national or national to international
 Contract the market
 reach a narrow market
 target market segmentation allows you to focus on a more  select group of customers
 and therefore have a competitive advantages in satisfying them

1. Decreasing costs
 costs of creating the product
 marketing of promotional material
 costs of distribution
o eg. Netscape allowing you to download instead of waiting to get the CD by mail
 costs of processing (orders from the customers)
o repeat activities and information processing
o of handling customer phone calls
o of handling sales inquiries
o determine product availability (inventory management)
 costs of storing information
 lowers telecommunication costs
2. Other Benefits....
 Pull-type processing
 enables customization of products
 allows for innovative business models
 allows for a high degree of specialization
 reduces the time exposure
 supports BPR - Business Process Reengineering 
 increases productivity
 improves customer service (in some cases)

Main Types of E-business

 Business to Consumer (B2C)

The most widely recognized form of e-business, B2C is the exchange of information, products or
services taking place between a business and a consumer over the internet. As the internet
develops, B2C is continually changing the way consumers acquire information, the way products are
compared against one another and the way in which they are purchased.
An example of a B2C only site is amazon.com. Ae.com is an example of a B2C site housing a
physical location as well.

 Business to Business (B2B)

The largest form of e-business in terms of money spent is B2B. Business-to-business allows trading
to take place between businesses, using a low-cost sales channel for the sale of goods and services
and is responsible for constantly changing corporate buying habits.
An example of a B2B site would be a car part company selling parts to a car dealership, another
company, rather than directly to consumers.
 Business to Government (B2G)
B2G is the online exchange of information and transactions between businesses and government
agencies, also known as e-government. B2G allows government agencies and businesses to use
electronic means to conduct business and interact with each other over the internet.
An example of a B2G site would be one that offers electronic tax filing.

2.2 Customer Focus and Management

The orientation of an organization toward serving its clients' needs. Having a customer focus is usually a
strong contributor to the overall success of a business and involves ensuring that all aspects of the
company put its customers' satisfaction first. Also, having a customer focus usually includes maintaining
an effective customer relations and service program.

Customer-focused management is a concept that goes far beyond just smiling, answering queries, and
communicating with buyers. It transcends customer service training. Companies must change their focus
from products and processes to the values they share with customers.
Customer-focused management goes beyond just the dynamics of service and quality. Everyone with
whom you conduct business is a customer or referral source of someone else. The service we get from
some people, we pass along to others. Customer service is a continuum of human behaviors...shared
with those we meet.

Customers are the lifeblood of every business. Employees depend upon customers for their paychecks.
Yet, you wouldn’t know the correlation when poor customer service is rendered. Employees often
behave as though customers are a bother, do not heed their concerns, and do not take suggestions for
improvement.

Here are a few quotes on courtesy, customer service, and corporate manners to keep top of mind:

“The customer is always right.”—H. Gordon Selfridge

“The greater man, the greater courtesy.”—Alfred Lord Tennyson (1809-1892)

“There are two little words that can open any door with ease. One little word is thanks, and the other is
please. Good manners are never out of style.”—Pinky Lee, 1950”s

“We are born charming, fresh, and spontaneous and must be civilized before we are fit to participate in
society. It is far more impressive when others discover your good qualities without your help. Let us
make a special effort to stop communicating with each other, so we can have some conversation.”—
Judith Martin, (Miss Manners)

“Good manners will open doors that the best education cannot.”—Supreme Court Justice Clarence
Thomas

“Do thou restrain the haughty spirit in thy breast, for better far is gentle courtesy.”— Homer

“Don’t forget to say please and thank you.”—Captain Kangaroo, children’s TV star

“Don’t flatter yourself that friendship authorizes you to say disagreeable things to your intimates. The
nearer you come into relation with a person, the more necessary do tact and courtesy become. Except
in cases of necessity, which are rare, leave your friend to learn unpleasant things from his enemies; they
are ready enough to tell them.”—Supreme Court Justice Oliver Wendell Holmes (1809-1894)

“Gratitude is the most exquisite form of courtesy.”—Jacques Maritain (1882-1973)

“Discourtesy does not spring merely from one bad quality, but from several—from foolish vanity, from
ignorance of what is due to others, from indolence, from stupidity, from distraction of thought, from
contempt of others, from jealousy.”—Jean de la Bruyere (1645-1696)
 IV. APPLICATION/ASSIGNMENT

Basing on the 5-stage process that is shaped by digital, (dreaming, planning, booking, experiencing,
sharing) I want you to make a simple narrative about your best travel.

Note: Include your best photo taken on that travel of yours (Unlimited). And define how did you do the
dreaming, planning, booking, experiencing and sharing. (read the definition of 5 stages in our lesson for
your guidance)

Sample format:
I. Cover page
II. Introduction (about your travel)
III. Content
IV. Conclusion (why you love that travel)

V. ASSESSMENT

Refer to the LMS for the exam