The revolution of Information and Communication Technology in Tourism

Introduction

The revolution in ICTs has profound implications for economic and social development. It has pervaded every aspect of human life whether it is health, education, economics, governance, entertainment etc. Information and communication technologies are also crucial drivers for tourism providers to conduct business transactions, distribute their products and services, network with trading partners and provide information to consumers worldwide. An increasing number of consumers are using the Internet to obtain information, plan and buy their travel. This session will provide an introduction on the role of tourism for development and will highlight the role of technology innovation in the tourism sector. Tourism is currently one of the fastest gowning industries across the world. It is primarily a service industry as it does not produce goods but renders services to various classes of people. It is a combination of various interrelated industries and trade like food industry, transport industry etc.

Tourism industry is currently an extremely sensitive hybrid industry and incorporates distinct features of information society. Although the core product in the industry is physical services which are produced and consumed in the physical world, it is dominated and achieved though information services. The perfect integration of information and physical services is the challenge for the contemporary tourism industry across the globe. Hence it is largely an information product. For instance, tourism destinations are those places the environment are assumed to be unique and different from the everyday experience. One has to travel to the place of consumption to test the product or services and which cannot be done in advance for a trial. Since, tourism services are consumed the very time they are produced; it is largely based social interaction between the supplier and the consumer. The quality of the service or product is mainly defined by the interaction. To be more elaborate, consumer has access to only an abstract model of the product at the time of decision-making and contractual agreement. Hence decision-making and consumption are separated in time and space. Such gaps can be overcome by the information about the product, which is available in advance to the consumer. Thus tourism services and product are based on confidence, information and communication.

Objectives

 Create of an advanced technological platform for the promotion of Region’s tourism and cultural product and for the provision of services to the tourism sector in order to:

• Provide effective information to potential travelers
• Assist tourism entrepreneurs in the promotion of their offerings
• Provide useful and updated information to entrepreneurs Investigate the Uses of Information and Communication Technology (ICT) Tools/Applications for Destination Managers in Support of Sustainable Tourism Development.
• To Develop Assessment Procedures for ICT-based tools/applications that can be used by Destination Managers for Sustainable Tourism Development.

ICT enables tourism organizations to have a global presence and partnerships around the world in an efficient and cost effective manner enabling small firms to build their virtual size. Distribution is the obvious function that benefits from virtual organizations. The globalization of the industry intensifies the information required for all tourism transactions and requires instant confirmation and purchasing abilities. As distribution has changed from facilitation of information exchange and reservations to a sophisticated mechanism for dynamic personalization of added value services, virtual corporations enable tourism firms to expand their value chain and include endless products and services. Organizations need therefore to appreciate the benefits of co-opetition and co-destiny, when organizations need to collaborate with players that they would normally regard as competitors.

Despite expensive initial investments, ICT can reduce administration and production costs by integrating internal data and processes. Operational and communication costs can be reduced by integrating operational systems, maximizing internal efficiencies, decreasing back office labour costs, reducing number and length of personal communications, and enabling consumers to have direct access to information. Disintermediation and reduction of commission and fees for intermediaries also reduces costs.  Hence, ICT should contribute to profitability through increase of revenue and reduction of costs.

Hotel managers also claimed that the major benefits of using CRS are:

• Increasing the efficiency and accuracy of internal information transmission; 
• Saving the costs of paper work and information-processing labour.
• Increasing the effectiveness of management, especially in terms of cash, account, stock and yield management.

ICT and Tourism

Contemporary information society has made Tourism a highly information-intensive industry as ICT has a potential impact on tourism business. The role of ICT in tourism industry cannot be underestimated and it is crucial driving force in the current information driven society. It has provided new tools and enabled new distribution channels, thus creating a new business environment. ICT tools have facilitated business transaction in the industry by networking with trading partners, distribution of product services and providing information to consumers across the globe. On the other hand consumers are also using online to obtain information and plan their trip and travel. Information is the key element in the tourism industry.

ICT pervades almost all aspects of tourism and related industry. For instance, we depend upon it right from the scratch while identifying and developing tourisms site and destinations itself. The use of Geospatial Information Technologies in the recent years across the globe for varied purposes is popularly known and Tourism industry has not been an exception in availing its advantages. It can be used by tourist professionals to define the boundaries of the proposed tourist site as well its surrounding areas and the communities living in it. It can also get information on roads linking to the sites and availability of other utilities like water, power, market etc. Such technologies are also useful for site management and monitoring. The role of ICT tools in the industry for marketing, operation, and management of customer is widely known. Marketing techniques can be more innovative through ICT tools.

ICT and Economic growth

Development of Information and Communication Technologies (ICT) has transformed the contemporary business environment. It has led to new information economy which is digital in nature. ICT is a broad terminology referring to multiple communication technologies which range from simple and complex namely Cell Phone applications (SMS), Digital Cameras, Internet, Wireless (WiFi and WiMAN), VOIP,GPS, GIS, Convergence (data, voice, media), Digital radio, These technologies are creating a new global market place, which is more competitive. With e-commerce and e business the market has more opportunities and possibilities than ever before. The ability to reach a global audience, obtain instant market information and conduct electronic business transactions has increased economic efficiency and has opened markets for goods and services from the developing world.

E- commerce is expected to benefit economic development in several ways:

·         Through allowing local business access to global markets

·         By providing new opportunities to export a wider range of goods and services

·         By improving the internal efficiency with in the firms.

First, e-commerce allows business to reach a global audience. In Africa, for example, the tourism and handicrafts industries are realizing their ability to deliver their product information directly to consumers. Tourist lodges, hotels, and governments across the continent now maintain sophisticated websites advertising their unique features, handling booking order, and promoting specials to interested consumers. Similarly, small manufacturers of traditional handicrafts are discovering how ICTs can assist the marketing and distribution of their wares.

Secondly opportunities created by e-commerce and its predecessor technologies is that ICTs can create digital market places to manage supply chains and automate transaction, increasing efficiency and opening previously closed markets to firms in developing countries.

Thirdly, e-commerce is improving the culture of business. There are now better intra-firm communications, cost savings procedures, and reductions in the inventory costs leading to better management.

Thus ICTs are the backbone of the capital accumulation. They are connected with new business

opportunities, increased trade and investment although they are risks involved sometimes. It suggests a positive relationship between ICT development and economic growth. Indeed an often cited achievement of Indian economy during the last decade has been the emergence of an ICT sector which has shown remarkably vibrancy in terms of output and export growth. However, the contribution of ICT to an economy can be viewed at two different levels. They are contribution on account on ICT growth and contribution on account of ICT diffusion. While the former refers to the contribution in output, employment, export earning etc on account of the production of ICT related goods and services, the later refers to ICT induced development through enhanced productivity, competitiveness, growth and human welfare on account of the diffusion of this technology to the different sectors of the economy and society.(Karmer and Derick 1992).

Global Distribution Systems

Global Distribution Systems (GDS) have evolved over the years and has played a major role in making online travel possible. A Computer Reservation System (CRS) is used to store and retrieve information and conduct transactions related to travel. They were originally developed by airlines, but it was later extended to travel agents as a sales channel. A functionality of CRS has been extended and what is known as the Global Distribution Systems came into existence. The major CRS operations that book and sell tickets to multiple airlines are known as GDS. Many airlines have opted to divest most of their holdings to Global Distribution Systems due to which many systems are now accessible to consumers through Internet gateways for hotels, car rental agencies, and other services as well as airline tickets. A traveler or a travel agent can chalk out an itinerary using a GDS which is a global system interconnecting airlines, hotels, travel agents, car rental companies, cruise liners etc. The four major Global Distribution Systems are AMADEUS, GALILEO, SABRE and WORLDSPAN. AMADEUS boasts of a market share of 31% and is followed by SABRE with 30% of the market, GALILEO with 26% and WORLDSPAN which has captured 12% of the market.

Today's GDS systems have the following capabilities

• Available and accessible 99.9% of the time
• Process up to 17,000 messages per second during peak time
• Operates on cutting edge enterprise systems architecture
• Enjoys response times of a fraction of a second
• Is capable of booking a multitude of transactions
• Can make itinerary changes up to the last minute and complete complex international routings to every country in the world
• Automates the time consuming and complex process of re-pricing airline tickets when itineraries change
• Permits customers to send e-mail and faxes without exiting from the system
• Allows customers to compare fares and availability in order to shop for the most convenient travel at the lowest cost
• Stores all data related to the tens of millions of travelers securely so that the customers receive the travel preferences they desire

On a given day a GDS can access

• Over a billion fare combinations
• More than 95% of the available seats worldwide
• More than 750 airlines
• More than 50,000 hotel properties
• Over 400 tour operators
• Nearly 30,000 car rental locations

GDS systems are capable of booking

• One way and roundtrip airline seats
• Hotel rooms
• Rental cars
• Tours
• Cruises
• Bus and rail tickets
• Insurance
• Limousines
• Event and theatre attractions
• Dining Reservations
• Itinerary Changes
• Complex international routings

Different aspects of industry: Application

Site development: GIS used for identification of Tourist site and destinations

Marketing: Advertisement, promotion

Operations: Buying and management of supplies and services

Customer services: Management of customer relationships through booking travel, lodge etc

Monitoring: GIS and GPS is also used for managing and monitoring tourist sites.

Key factors for applying ICT in tourism

1. IT education and training for policy makers, managers and other players in the industry

2. Integration of various sectors like transport, lodge etc.

3. Technical Infrastructure

4. Human Infrastructure, which includes skilled people, vision and management.

5. Legal Infrastructure

a. Regulation of telecommunication providers

b. Subsides for Internet service providers

c. Legal framework for online advertisement or official endorsement for online marketing.

6. ICT culture

a. Create and sustain ICT environment

b. Maintenance and updating of websites

c. ICT training for all level of workers

d. Establish electronic linkages between all related sectors

The Indian Scenario

In India, the Department of Tourism took the first initiative to introduce information technology in tourism in the year 1989 by establishing TOURNET with the technical assistance of CMC Ltd. The network consisted of 35 information nodes installed in the field offices of the Department of Tourism located in different parts of the country. Each node contained a CD-drive apart from the usual configuration of floppy drives and hard discs. Each node was provided with a CD containing textual database on all the major tourist destinations in the country.

Recently, multimedia databases on tourism have been developed by Rajasthan and Maharashtra Tourism Departments with the assistance of some of the private software development firms. Apart from the government initiatives, a few private firms are also active in the field and a few CDs on Indian tourism are already available through their efforts.
The Central Department of Tourism is presently trying to tie-up with some of the private software development firms to produce a series of multimedia CDs covering all the tourist destinations in India. The intention is to bring out a marketable product for sale within India and abroad. In the online field, the CRS Amadeus and PARS are already operational in India. Amadeus was established in 1993 and PARS came in 1995. INTERNET facilities are also presently available in India.

Limitations and Future Possibilities

There is a need for a well-structured Information System or Intelligent System technologies in tourism industry to facilitate the access of tourist information by the users. The current ICT system has certain limitations. For instance, accessing information through Internet and www is an intelligent mean of getting the information, but many a times, the information is highly fragmented. One shall arrive at it only after intelligent navigation, which is time consuming and may mislead in the process. Sometimes, presentation of information in the web is not intelligent too. Search engines for tourism should be developed. Facilities to browse according to the topic portals can be made.

Wireless is likely to be the next major event in the history of technology. Its application in tourism industry is also likely to increase in future. Mobile services shall continue to be an important channel of information and tourism services distribution for both providers and consumers. Future mobiles might decrease in size, weight ad prize and likely to increase in power, storage, connectivity, position and capabilities. Electronic personal guide might be in frequent usage. Besides SMS (short message services), WAP (Wireless Application Protocol) standard for accessing the Internet with wireless devices like mobile phones should be increased. GNSS (Global Navigation Satellite System), which gives the position, and GPRS (General

Packet Radio Services) enabled mobiles which can handle larger amounts of data than the GSM network shall be useful in tourism industry. W-LAN (Wireless Local Area Networks) and Blue tooth, which gives wireless access at short distance about few meters, can be useful too.

It is also essential that usability studies and research is conducted to examine the ICT integration in tourism and its impact. Usability is the measure to the quality of a user’s experience while using the ICT tools. It could be a product of a system, website, a software application, mobile technology, or nay related technology.

It is important to note the technology and application to work together with respect to bandwidth, user interface, position etc. All applications, technology and services should be user-friendly which can be used both by the veterans as well as the new-bees effectively. Hence technology and services should be effective, efficient and safe. It should have utility value and simple to comprehend.

Customer relations management can be improved by strategies which sustain the old customer’s interest besides attracting new prospective clients. Planning of the trip should be inclusive such that booking should take care of travel, lodge, local tours etc. It should take care of the trip from the beginning till the end. Pre trip session, during trip session and post trip sessions should be properly laid out and implemented. Such activities can be better streamlined if the reservations facility can be outsourced as much as possible. Arrangement should be made for ‘Live Chat’ so that all queries of the customer is answered at any time. Reviews by the customer, feed backs and surveys should be in progress to know the gaps if any. SMS can also be used for logistic updates.

Conclusion

ICT is essential to use well throughout your tourism activity from site selection to construction to marketing to operations to monitoring. Nevertheless, ICT should not be pushing your approach, set your approach, target market, business plan, and then design ICT elements. Information technology has left an indelible mark in the application area of Tourism and Travel. In the coming years, areas like Travel Recommender Systems, GIS, and Space Tourism etc will gain popularity and will help in giving a new dimension to the travel and tourism sector. The International market which is growing has been given a shot in the arm with introduction of IT and will stand to gain further from it.  ICT has made great changes to hotel reservation for travelers.  Despite the limitations mentioned above, ICT has enabled society activities to move from 'space of places' to 'space of flow'. In conclusion, ICT is becoming a key determinant of organizational competitiveness. Using ICT to exchange information about products and services enables all actors involved in tourism to be aware of what services are on offer Developing countries are major tourist destinations. However, a large proportion of the profits from tourism drain out of the world’s poorer nations and back to large travel firms, hotel chains, and booking and transportation providers based in developed countries.

The Internet offers a chance to change that pattern. Tourism providers in developing countries can access customers directly. Their websites can offer authentic flavour, unique insights and specialized local knowledge that a big international provider can´t.

The challenge for developing countries is to reorganize tourism services so that they can benefit from ICT. Well-designed websites can allow local companies to offer tourists a full package, including reservations, flights and currency exchange. That way the profits can stay at home and contribute to job growth and economic development.

Developing countries now attract 35 per cent of international travellers each year and are starting to develop e-tourism strategies. Today, 24 least developed countries (LDCs), for example, have tourism websites. Unfortunately, these are largely “information windows". They don´t reflect the wealth of local tourism producers and don´t allow booking and payment.