TME 303 / Tourism Information System
MAIN TOPIC 2: TOURISM INFORMATION The idea of a compiler, or interpreter, became feasible
TECHNOLOGY
Information Technology & Information System
Information technology (IT) – the acquisition, processing,
storage, and dissemination of vocal, pictorial, textual,
and numerical information by a microelectronics-based
combination of computing and telecommunications.
 Information Technology is the area of managing
technology and spans a wide variety of areas
that include but are not limited to things such as
processes, computer software, information
systems, computer hardware, programming
languages, and data constructs
 Information technology has far-reaching
economic and social implications. The increase
in the availability of information is the most
significant advantage associated with access to
new technology. Information is disseminated and
exchanged with a wider audience. Second, it
lowers the manufacturing costs of information
being developed, distributed, accessed, and
exchanged. Advances I ICT have progressively
reduced the costs of managing information,
enabling individuals and organizations to
undertake information-related tasks much more
efficiently and to introduce innovations in
products, processes, and organizational
structures. Third, it has resolved geographical
and distance constraints.
Information systems – combinations of hardware,
software, and telecommunications networks that people
build and use to collect, create, and distribute useful
data, typically in organizational settings".
History & Evolution of Information Technology
Without the invention of natural language programming,
information technology as we know it today may never
have existed. A sequence of codes, which was numbers,
were used in early programming languages. The majority
of early computer programmers had a mathematical
background. Early computer programmers usually came
from a mathematics background. When electronic
computers were first introduced in the 1960s, all of the
existing computing staff had expertise in electrical and
mechanical engineering, mathematics, and statistics.
New skills requirements meant that the first information
technology jobs went to engineers and mathematicians.
as computers advanced. This is a program that is
installed on the computer indefinitely and serves as the
foundation for an operating system. The interpreter could
convert programs written in assembly languages, which
are very simple instruction sets, into machine instruction
code. This development expanded programming's
capabilities and allowed for more complex instructions.
By the late 1960s, displays, keyboards, text editors, and
languages like FORTRAN and COBOL had made
programming accessible to businesspeople rather than
just scientists and engineers. Although scientists and
engineers continued to advance computing,
programmers, business analysts, and commissioning
enterprises created the field of information technology.
Information technology jobs, as opposed to computer
jobs, were first introduced in the early 1970s. Networks
and PCs put computers on the desks of non-computing
staff, and the application of computing to business
processes required the creation of specialists to create,
adapt, and maintain both the hardware and software that
would support business operations. The invention of the
spreadsheet and word processor were two of the first
software that enabled office workers to improve their
productivity. Company software packages spawned a
new branch of IT, resulting in a plethora of IT jobs even
within a single discipline.
For example, anyone interested in becoming a
programmer might pursue a career in a corporation's IT
or a software house. Specialist languages tailored to
various IT functions arose, dividing programming
workers into groups. A company with a database
required programmers who had worked with Oracle or
SAP, as well as C programmers who could write
networking software. Network server C programmers will
not be eligible for jobs writing database applications.
Workers' career paths were hampered by the
diversification of IT; more computers in the world meant
more IT jobs. Progressive flexibility of the labor force
meant that businesses became less willing to retrain
employees who were stuck in dead-end technologies.
Some lucky specialists found themselves with skills that
were in high demand but in short supply. This caused
their earning potential to rocket while those skilled in
retired technology found themselves unemployed.
Technology
has always
existed in forms we don't consider to be technologies
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before, as seen in the figure above. For decades, the
evolution of science has coincided with the advancement
of technology in society. It has evolved from basic yet
innovative materials to technologies with which we are
all familiar. While they are centuries and decades apart,
they all serve the same purpose: to make human life
easier.
Information Technology in Tourism
Due to the extreme fierce rivalry in today's business
world, tourism and hospitality companies must work
extra hard to sustain and improve their competitiveness.
To a certain extent, a company's ability to obtain and use
current information to aid its management and marketing
processes determines its performance. Hence,
Information Technology (IT) assists organizations in
dynamically managing information and influences market
productivity by assisting decision-makers in making
effective investments and decisions. IT facilitates in
meeting customers' demands for timely and reliable
information, and IT adoption in the tourism and
hospitality industries has recently accelerated at an
unprecedented pace. The specific performance in the
tourism enterprise network construction, management of
IT, website construction, information service, online
destination information network construction, tourism
enterprise customer relationship management, online
marketing, tourism information connotation, and
extension, etc. has helped tourism and hospitality
industries helped speed up operations and make the
traveling process much more enjoyable and efficient. It
also substitutes labor for expensive human labor,
lowering labor costs while also avoiding customer
service problems.
E-Tourism
Tourism and hospitality are social phenomena, and the
industries associated with them are primarily service-
oriented. Researchers in this field have conducted and
will continue to conduct, research that produces
innovative information that will support these industries
and, in turn, society. As IT investment and adoption have
become essential components of the tourism and
hospitality industries, it serves as a mechanism for both
enabling and inducing change. E-tourism refers to a
concept and research area in which the adoption of
information and communication technology (ICT) by
tourists and businesses transforms the processes and
the value chains in the tourism industry. This
development changes the process within a business or
organization while reconfiguring the landscape of
commerce (Buhalis, 2003).
The Tourism Value Chain is a mechanism that describes
how private sector companies, in partnership with
government and civil society, obtain or access capital as
inputs, add value through various processes (planning,
development, financing, marketing, distribution, pricing,
positioning, and so on), and sell the resulting products to
tourists. From conception to actualization and beyond,
the value chain defines the full range of activities
required to facilitate visitor experiences.
Tourism, as a service industry, is particularly affected
and transformed by technological advancements. E-
tourism is the digitalization of the entire touristic industry
and infrastructures; some of its benefits include reduced
seasonality, improved customer contact, and an increase
in reservations and sales in general. Similarly, the
advancement of ICT is inextricably linked to the
advancement of e- tourism.
Airlines, for example, used to manually handle
reservations using a card system, and hotels used to
monitor inventory using colored tapes on the walls. As
soon as the first electronic general-purpose computer,
ENIAC, appeared in 1946, airlines started the wave of
adoption: American Airlines installed the first automated
booking system in the same year. In the 1960s and
1970s, other airlines and hotel chains began to use ICT
to develop electronic reservation systems. Such airline
and hotel networks began to integrate into global
distribution systems in the 1980s, enabling travel
agencies to book multiple services. The widespread
adoption of the Internet in the 1990s provided new
avenues of distribution and ways of directly reaching
visitors, allowing the Internet to begin reconfiguring the
structure of tourism sectors (Buhalis & Law, 2008).
Social networking and mobile technology revolutionized
how customers access information and perform
transactions in the early twenty-first century, altering the
power dynamics and balance between consumers and
businesses. In the early 2010s, the possibility of applying
massive quantities of online data to tourism had the
potential to turn "big data" into information, significantly
improving the tourism experience and providing a deeper
understanding of behavioral trends and industry
structure.
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IT is reshaping the fundamental framework of industry
and society in a strategic way (Buhalis, 1998, 2003). It
can generate the knowledge at the center of a
business's competitiveness (Chathoth, 2007; Ham, Kim
& Jeong, 2005). Law and Jogaratnam (2005) further
suggested that information technology can change the
nature of tourism and hospitality products, processes,
businesses, and competition and that tourism and
hospitality businesses that don't master the right IT
systems will struggle to direct and manage their
information-intensive operations, reducing their
competitiveness. In the hands of tourism entrepreneurs,
information and communication technology, as well as
the Internet, if used wisely, will prove to be highly
creative strategic resources that can help them upgrade
the location of their facilities.
The Evolution of IT in Tourism Business
Over the last 50 years, the IT industry has played a
pivotal role in generating business value for users.
Industrial automation was driven by mainframes and
PCs in the 1960s and 1970s, followed by client-server
architecture and the Internet in the 1980s and 1990s,
which contributed to business process automation.
Digital transformation has been driven by the advent of
digital data systems since 2000, due to technological
advances in cloud computing, mobile, big data, and
social networks. The intelligent enterprise will be enabled
by the emergence of intelligent technology such as
advanced analytics, machine learning, artificial
intelligence (AI), and the Internet of Things (IoT). (Gopal
et. al., 2018)
Typologies of Information
Static Information - refers to a fixed data set-or, data
that remains the same after it's collected.
Dynamic Information - on the other hand, refers to
continual changes after it's recorded in order to maintain
its integrity.
The distinction between static and dynamic data is
conceptually straightforward. However, when it comes to
the effect data has on a typical enterprise, things get a
little more complicated. Here's an example of what we're
talking about: In the past, companies conducted sales,
marketing, and operations mostly using static data. But,
as technology improved business performance
worldwide, organizations started to gather data more
quickly. Meanwhile, the data they'd gathered started to
deteriorate at an alarming rate. It's become abundantly
clear in recent years that the world of consumer and
prospect data must transform. And, thankfully, more
companies are adopting a more dynamic mindset when
it comes to data.
Strategic Application of IT in Tourism Industry
In all aspects of strategic and organizational
management, information technology (ITs) are prevalent.
Since information is the lifeblood of the tourism industry,
its present both opportunities and challenges for the
industry, organizations, and destinations that must
compete. Products, one aspect in the tourism industry,
are typically dynamic and intangible in a business; their
development and consumption experiences are
inextricably linked; inventories of goods and services are
perishable, and the consumption experience differs
depending on the individual tourist at various times.
Furthermore, since the industry is composite, it
necessitates a significant amount of effort in integrating
various types of services and delivering rich information
in order to minimize volatility during service encounters.
To maximize revenue and profit, the companies must act
quickly to sell unsold inventories.
Unless the current tourism industry improves its
competitiveness, by utilizing the emerging ITs and
innovative management methods, there is a danger for
exogenous players to enter the marketplace,
jeopardizing the position of the existing ones. Only the
most innovative and creative and innovative suppliers
will be able to compete in the new millennium. Tourism,
as an information-intensive industry, necessitates the
use of ICT, and the two are intertwined. The following
are some strategic applications of information technology
in a certain industry:
 Managing Value Chains. Businesses must
constantly evaluate the value they generate as
competition for high-quality goods, low prices,
and outstanding customer service grow. The
value chain analysis is one of the most useful
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methods for breaking down each business
process and identifying opportunities for
innovation using information technologies and
systems. It has the ability to alter a company's
goods and services, as well as its relationships
with other companies and their customers or
clients. Value chain analysis aims to "build value
that exceeds the cost of providing the product or
service, resulting in a profit margin." The
following are three goals that should be
prioritized during analysis if you want to see
results:
 Achieve the best/lowest costs for the entire
supply chain, including operation, transactional,
and handling costs.
 Aim for the quickest cycle time possible.
 Identify and implement the greatest practices for
each core activity, sub- process, or process.
A company should start a value chain review by defining
each part of its manufacturing process and noticing
measures that can be avoided as well as other potential
improvements. Businesses will then decide where the
best value for consumers is, and then extend or boost
that value, resulting in cost savings or increased output.
Managing Knowledge and Information. A knowledge
management (KM) strategy is a detailed plan that will
assist the company in managing information, data, and
knowledge for the benefit of all stakeholders.
Identification, collection/creation, organization and
storage, curation, dissemination, and utilization are the
processes required for information management, as
described in the first chapter, with the help of ICTs.
Effective knowledge management strategies are aligned
with the organization's overall plan and goals, and they
keep the KM team focused on your business priorities
and needs. Having a simple and consistent knowledge
management plan allows you to:
 Increase internal information management
awareness and understanding.
 Create a compelling business case for the
potential benefits to your company.
 Clearly articulate effective knowledge
management practices, as well as the
organization's existing knowledge management
status, priorities, and strategies for achieving
those goals.
 Obtain senior management support.
 Gather resources to put your plan into action.
 Track your progress.
Marketing and Competitive Advantage. Company
innovation is aided by information technology, which
leads to smarter applications, better data storage, faster
retrieval, and broader information dissemination, all of
which are beneficial to the tourism industry. In addition,
innovation adds value, improves efficiency, and
increases productivity. Due to various information
technology advancements, digital advertising is more
successful than newspaper, television, and radio
advertisements because it is less expensive over time,
more appealing, and faster.
The fundamental ethic of strategically managed
companies is a mutual commitment to shaping their
future. Instead of settling for incremental gains-a few
more market shares or a few percentage points of cost
reduction-managers set ambitious goals for themselves
that, if met, would result in a long-term competitive
advantage for their business (investment). Competitive
advantage is what makes a company's goods or
services more appealing to consumers than those of a
competitor; it is a company's ability to manufacture
something more effectively or inexpensively than a rival,
resulting in higher profit margins.
Competitive advantages can be broken down into
comparative advantages and differential advantages. A
company's competitive advantage is the ability to
manufacture something less expensive than a
competitor, resulting in higher profit margins. While a
differential advantage is when a company's products are
seen as both unique and of higher quality, relative to
those of a competitor.
For example:
 Faced with increasing material and labor costs,
a Japanese television manufacturer ordered its
engineers to reduce the number of parts in its
color TV sets by 30%. Since then, the
manufacturer has been able to significantly raise
the volume while halving the number of
employees in its assembly plant.
 A machine tool manufacturer has pledged to
revolutionize the way an entire industry
purchases machinery. It is aggressively injecting
a top-management- oriented, technically and
financially argued sales strategy into a sales
environment where strong personal relations on
the plant floor and with process engineers were
previously the key to success.
As the economy becomes more dynamic, and single
business units continue to be integrated into global,
diverse organizations, ways to regain the entrepreneurial
vigor of a simpler, more personally focused company
structure must be discovered. Strategic management,
which combines the rigor of formal planning to vigorous
operational execution, may prove to be the solution.
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Service Delivery and Customer Relationship
Management (CRM). Organizations are recognizing that
customer-centric operations are no longer a
differentiator, but rather a requirement for long-term,
profitable growth. Customer relationship management, or
CRM, is a method for improving service delivery by
developing both business processes and supporting
infrastructure. CRM system focuses on automating and
optimizing front-end company processes including
marketing, distribution, customer service, and support.
CRM software and hardware are just a portion of the
system; individuals, procedures, management, and
incentive programs must all be included for a CRM
system to be effective. This aims to increase the
efficiency of the company by creating the following: a
single, complex, and consistent understanding of the
customer from a company's viewpoint, across different
departments of an organization; and a single, dynamic,
and clear understanding of the company from the
customer's viewpoint, regardless of communication
medium used (personal meeting, mobile, internet); and
improved communication, coordination, and efficiency
across marketing, sales, service delivery, and support
departments within organization. The expected
outcomes include enhanced customer satisfaction,
loyalty, and retention, which may lead to increased
profitability from increased sales and lower costs.
Changes in the buyer-seller model prompted the need
for customer relationship management. Beginning in the
1970s, a move away from transactional sales and
marketing behaviors and toward a customer-centered
paradigm began. In the 1980s, relationship marketers
improved the model, and in the 1990s, technological
advancements accelerated improvements even further.
The internet's dynamics, developments in social media
technologies, and empowered consumer behavior
altered the paradigm forever in the 2000s. As a result,
there was a change in how consumers were viewed as
the primary business commodity. Customer relationship
management strategy needed to achieve the following:
 Determine how to satisfy consumers in addition
to delivering high-quality goods and services
 Assist in the retention of current consumers in
order to increase efficiencies and lower
acquisition costs
 Ensure customer satisfaction and a memorable
brand experience
 Improve the overall relationship between the
business entity and particular audiences
A different set of customer relationship principles was
needed when focusing on the particular needs of a
specific customer group. By efficiently providing services
to the consumer experience, customer satisfaction and
loyalty have become essential business metrics. This
occurred largely in a technological vacuum, in which
advanced software lowered the cost of doing business
while raising quality and service standards. During the
late twentieth and early twenty- first centuries, economic
uncertainty posed a challenge to current sales and
marketing strategies aimed at attracting as many new
buyers and transactions as possible. Maximizing the
value of loyal customers and reaping the financial gains
of this strategy helped to mitigate the economic
difficulties of those decades.
Strategic Listening. In a business industry, listening is
essential for successful working relationships among
employees and between management and staff in the
business world. It also affects how an organization
interacts with consumers and other companies.
Industries can acquire information and facts that can
assist in making decisions that support the company
because of the much easier and accessible interaction
provided by information technology. Through listening,
you could learn about a job applicant's attitudes toward
the profession, previous job results, and other
information not detailed on his resume during an
interview. This extra information will assist you in
determining whether the applicant is a good match, for
example, the tourism and hospitality industry. You will
also be able to enhance your service and cater to the
needs of your customers by listening to their feedback. A
strategic listener goes a step further: we listen to
establish a connection. If you want to develop good
working relationships with the people you work with/for
and/or supervise, this is a must.
The Digital Tourism Ecosystem
Tourism is one of the most popular spheres of
application of digital ecosystems. Its functions are the
following:
Ecosystem Functions
 Inspiration - One of the most important aspects
of the tourism industry at this stage is to inspire
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buyers and potential customers. Information (KM), Web Content Management (WCM), Document
disseminated must be interactive, appealing, Management (DM), and Social Media Covernance
and timely in order to attract these consumers. technology solutions and best practices are all part of the
They must be convinced to have their travel, information management environment. These entities
lodging, and other related transactions with your must be able to use the technologies and perform the
organization for other ecosystem functions to following tasks:
proceed successfully.
 Transaction - When customers decide to do  Create and Capture Information
business with you, you must meet all of their  Extract Intelligence from Information
needs with the best service you can provide.  Digitalize Information-Intensive Processes
Aim to make their transaction as smooth as  Automate Governance and Compliance
possible, especially if they are booking or  Implement an Information Management Solution
making a reservation for flights, hotels, or other
services. With the support of good and reliable
customer service, the transaction can be as
comfortable and hassle- free as possible for
them.
 Experience – The importance of experience until
they land or arrive at their destination cannot be
overstated. They must have the best possible
experience with your company/agency, including
excellent accommodations, breathtaking views,
attractive offers, and reasonably priced yet high-
quality services. Since all plans and outcomes
are rooted in their experience, this is the heart of
the entire cycle.
 Reflection – This is the part where they reflect
on everything they did, from planning to booking
to the actual experience. Feedback is one of the
most important things we must value in
business; their words can make or break a
company. To gain positive reviews as they
reflect on their entire experience doing business
with your company, you must provide the best
service possible. For a happy customer means
happy business.

Components of the Digital Tourism Ecosystem

All of the functions require the components of the digital

tourism ecosystem, which include elements of the digital
technical environment as well as roles and
responsibilities in the field, to make it work. Desktops,
laptops, and mobile devices are used in conjunction with
connections (Wi-Fi, Broadband, Protocols) to produce
content and information that can be disseminated
through touchpoints such as websites, search engines,
and applications. Certain entities and communities will
play the role of information professionals in accelerating
business practices, enriching consumer interactions, and
enhancing organizational agility in order to make the
whole process possible. Enterprise Content
Management (ECM), Electronic Records Management
(ERM), Business Process Management (BPM),
Taxonomy and Metadata, Knowledge Management