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E-Tourism

E-Tourism. Lecture 7. E-Tourism.

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E-Tourism

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  1. E-Tourism Lecture 7

  2. E-Tourism • is used to refer to e-business in the field of travel and tourism, the use of ICT to enable tourism providers destinations to operate more efficiently, and to reach and serve consumers more effectively with facilities to search, compare and book tourism products.

  3. Definition of e-Tourism

  4. ICT • ICT - Information and Communication Technologies Umbrella term for technological developments for the Production, analysis, storage, search, distribution and use of information • ICT includes a combination of • hardware • software • telecommunications • netware • groupware • humanware • ICT enables effective data processing & communication for organizational benefit • opportunities & challenges for suppliers in all industries • Provide enormous capabilities for consumers

  5. Potential of ICT in Tourism • Characteristics of tourism • Intangibility, synchronism, non-storability, complexity of tourism services • High information need • High ICT potential • Improvement of available information about Offered services • Consumer and his needs • Elimination of information asymmetries and their consequences (adverse selection, moral hazard, etc.)

  6. Characteristics of E-Tourism: Tourism product Value chain Industry structure ICT infrastructure Challenges in electronic marketplace development: Legacy systems Heterogeneous information No global standards for data exchange Seamless interoperability E-Tourism

  7. Traditional tourism value chain

  8. History of e-Tourism

  9. 15 Years of Web-Story • The Internet - Global accessible and transparent infrastructure • System structure: Most nodes few links, but small and significant number show • very many (i.e. hubs, authorities) • 130 million distinct web sites • 40 billion web pages • 1 trillion links • In 2007 160 Exa-bytes (1018) of information • 25% originally created75% replicated • 95% unstructured, distributed, little control query • Internet Users • 2000 400m 2006 > 1Bn 2008 > 1.5 Bn2011 > 2.2 Bn (i.e. 1/3 of global citizens) • Changes in society • Complex interactions in parallel to ongoing globalization • Service industry and information work • Virtual network externality (value due to information and user integration in • service network)

  10. Stylized Facts on e-Tourism • Information Technology and Tourism - 2 world´s fastest growing industries • Travel & Holidays = most expensive regularly purchased item • Internet Tourism • 22.5% of EU eCommerce Sector61 Bil. € 2008 (Marcussen 2009) • 96% search online (i.e. 10 sites before booking), 62% book online (Phocuswright 2009) • Concentration : Top 1% of tourism websites join 53% of users • 3 players dominate 93% of online travel US market (65% EU) • InterActiveCo Travel Portals: Expedia, Hotels.com, Tripadvisor • Cendant GDS: Galileo, Gullivers, Avis, Orbitz.com, Octopustravel.com • Sabre CRS: Travelocity.com, Lastminute.com

  11. Specific role of ICT in tourism • ICT played an outstanding role for development of modern tourism • Computer Reservation Systems (CRS) • Developed and operated by airlines to cope with increasing volume • logistic and operational problems • systems with several ten-thousand participating companies • Similar applications could only be found in the financial sector • e-Tourism is one of the most important sectors in • E-Business • Acceptance of online orders • Marketing and sales processes

  12. Advantages of ICT usage in tourism • Optimal product information for customer • Multimedia, global search engines, recommendation • Reduction of effort for information gathering and travel planning (transaction costs) • Reduction of product complexity • Information about customer for supplier • Customer profiles and preferences (eCRM) • Customer behaviour and needs (web mining) • Flexibility of tourism offers • Customization of products (presuming) • Yield Management & dynamic pricing • Dynamic packaging

  13. Reduction of transaction costs • Transaction costs • Types of transaction costs • Information costs • Negotiation costs • Costs of supervision • Organization costs • friction costs • Transaction costs decrease through ICT • Ex-ante costs towards zero • Many customers can be served without need to increase • information and negotiation capacity • Intelligent search & recommender systems • Dynamic packaging • Support of supervision by online service recovery • (feedback)

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