Dimitrios BUHALIS - Information Technology for strategic tourism management

1. Impact of ICTs on Tourism • As ICT and tourism developments are closely interrelated, it is often difficult to identify whether ICTs generate changes in tourism supply and demand, or visa-versa. Usually reality is somewhere in the middle. • ICTs provide tools and enable evolution of tourism demand & supply. Consequently, tourism industry increases its requirements from ICTs. • In return, developments in ICTs offer further tools and greater potential which are then matched by the requirements of the industry. • At tactical level, it includes eCommerce and applies ICTs for maximizing efficiency and effectiveness of the tourism organization. • At strategic level, eTourism revolutionizes all business processes, entire value chain as well as the strategic relationaships of the organization. • eTourism concept includes all bussiness functions ; eCommerce, eMarketing, eFinance, eAccounting, eHRM, eProcurement, eR&D, eProduction, ePlanning, eManagement,etc. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

2. Transformation of best operational practices • ICTs transform the best operational practices and give opportunities to expand in all geographical and operational senses.. • However, TOURISM is an industry that has long been regarded as “labour” industry, and several practices are still carried out in traditional ways. • Many small enterprises (small hotels, travel agencies, etc.) make it even worse and keep ICTs at a minimum. • Increasingly, ICTs play critical role in CRM (customer relationship management) • CRMs enable organizations to interact with the clientsand continuously change their product to meeting the customer expectations. • Managing customer relationships on a continious (365/24) and global way is the key to success for future tourism organizations. • ICTs must also protect the organization from competitive disadvantages, as they now have to compete on a global arena.. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

3. Tourism Industry needs to become; • more flexible • more efficient • quicker • in responding to customer requests. • ICTs provide tourism organizations global presence, as well as formulate partnerships around the world in an efficient and cost-effective manner. • ICTs also reduce operational and communucation costs by; • integrating operational systems • maximizing internal efficiency • decreasing number of people required • reducing phone calls and faxes • enabling customer to have access to all information • CRMs enable organizations to interact with the clientsand continuously change their product to meeting the customer expectations. • Managing customer relationships on a continious (365/24) and global way is the key to success for future tourism organizations. • ICTs must also protect the organization from competitive disadvantages, as they now have to compete on a global arena.. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

4. However, it must be recognized that ICT developments have certain COSTS to the company. Thus, a detailed cost-benefit analysys should be drawn before taking action. • The cost of hardware and software and communucation packages, as well as developing and maintaining online presence is expensive... • Developing interfaces between internal legacy systems and systems of other organizations may require high investment. • Developing new technologies will also bring extra costs: • advertising at search engines, • interconnectivitiy with other organizations may need high investment, • new procedures may create new jobs • Penetration of ICTs in tourism is generally customer-driven. • Most of the technological innovations are demanded by customers.. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

5. Examples of information technology applications used in tourism • Entire range of hardware, software. • Office automation, reservation, accounting, payroll, procurement management • Portable wireless devices • Taylor made internal management tools; support systems, etc. • Databases • Internet / Intranet / Extranet • Computer Reservation Systems (CRS) • Global Distribution Systems (GDS – eg: Amadeus, Sabre, Galileo) • Property Managements Systems for hospitality; FIDELIO • Internet based travel intermediaries; Travelocity, Expedia, etc. • Kiosks and touch-screen terminals • Augmented Reality (Çoklandırılmış Gerçeklik) • All Social Media Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

6. TourismDynamic interaction of ICTs and tourism. DEMAND-DRIVEN eTourism • Internet increasingly revolutionizes flexibility in both consumer choice and service delivery process. Increasingly customers are becoming much more sophisticated and discerning, as a result of experiencing high levels of service. • Tourists become demanding, asking for better services at lower rates: getting value for their money. • Thus, sophisticated travellers rely heavily on internet & electronic media. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

7. Leisure vs. business travel demand • Inevitably, frequent business travellers are more familiar with travel arrangements having considerable expertise • Business trips are often classifed into Meetings, Incentives, Conferences & Exhibitions (MICE) categories. • Tourists demand dramatically more information than experienced travellers • Experienced travellers however, require greater indepth information as well as being sure that their previous experiences will be addressed. • Often bookings are not made by travellers themselves, but rather by their secretaries or travel managers in their organizations. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

8. Leisure vs. business travel demand • Business travel represents the highest proportion of on-line travel bookings, not only because it is often quite straightforward, but also most variables, such as time & places are set. Besides, business travellers are better educated and more independent and familiar with computers. • Business travellers can often compare the prices and offers available online, with the ones offered by their organization. • He/she can findbetter deals than their company travel professionals sometimes.. • Thus, business traveller is able to sort out his own travel arrangements, and they often disobey travel policies of their organizations. (playing “amateur travel agency”) Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

9. Package vs. Independent • B2B transactions betwen businesses and travel companies grow at much faster rate than other sectors of internet • In Europe, Leisure travel has been much slower to take off. Package Holidays still dominates leisure market. eg: Thomas Cook, Kuoni, TUI, Thomson, STA, Airtours, etc. REASONS INCLUDE: • package holiday makers are usually from lower income classes, less familiar with internet • complexity of family holidays create conditions that are difficult sell online • commercial interest of tour operator; low profit margins do not let greater IT investments • existing distribution channels they have • tour operator computer systems, old-fashioned but still usefull.. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

10. Package vs. Independent • In USA and North America however, leisure market is dominated by independent travellers. That is why internet did much better and much faster.. • Consequently, fast European counterparts, which are the no-frills airlines; e.g.: Ryanair, EasyJet start selling DIRECT and online. • Small & big hotels also started to use Internet efficiently to reach their clients directly! • RESULT: The Independent Leisure market grow faster, at the expense of inclusive packages by assisting consumers to substitute some of the functions and value added by tour operators... • Substituting inclusive package holidays with self-assembled leisure products!Experienced travellers certainly went for it! Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

11. Motivations factors to purchase online on OTA websites • Better Prices %64 • Online secure transactions for CC 56% • Ability for cancellation easily 52% • Easy to compare 49% • Ability to get answers online 48% • Better information, better content 48% • Brand loyalty 38% • Use of local language 38% • Loyalty award programs 37% • Easiness to order 36% • Familarity with internet purchasing 17% Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

12. Online trip planning activities in USA • Obtained Maps & driving directions 59% • Searched places to stay 54% • Searched things to do 46% • Searched airfares/schedules 45% • Searched for dining&entertaintment 36% • Searched for rental cars (prices&avail.) 26% • Searched for places to go 22% • Searched for package tours & holidays 13% Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

13. Web 2.0 • “It is not the strongest of the species,nor the most intelligent that survives. It is the one that is the most adaptable to change”-Darwin Travel e22

14. 1.8 Billion tourist arrivals expected in 2030, worldwide • While eTravel buyers have some common characteristics, there are differences among various sub-groups on how they travel & how they plan to travel! • Half of online travel buyers are between the ages35-54. and 33% of them married with children...

15. From 9 million international tourist arrivals in 1996; Turkey received 29 million visitors in 2011; with around 26 billion USD in international tourism receipts

17. Internationaltourist arrivals (overnight visitors) grew by 4% in 2012 surpassing a record 1 billion tourists globally for the first time in history • Europe reached 535 million tourist arrivals in 2012

19. Social Media for Destinations • Integration of Social Media to eMarketingStrategyby • MySwitzerland.com Switzerland Tourism, Portal Management Switzerland Tourism ran “Holidays Without Internet”, an interactive campaign designed to help people trapped by internet access. People were invited to compete for the chance to spend their holidays in a cabin with no internet connection and no mobile reception. Because the campaign was directed at online junkies, it also took place online, at www.holidayswithoutinternet.com. Sebi and Paul, the two mountaineers from Switzerland Tourism Advertising, appeared on the site sitting in front of their laptops and chatting with each other. Visitors could connect with them through Facebook, to have their personal Facebook photos, posts and online time analyzed. The two then recommended those Facebook junkies enter the contest for holidays without internet and no mobile phone reception. After just a few days Facebook stopped the app. After a week of online protests Facebook reinstated the page, allowing a competition to proceed. Travel e22

20. how social-media and social-networking fit in an internet marketing strategy! • Mission : • - To market the travel, holiday and congress destinationSwitzerland effectively and efficiently on a world widebasis. • - To strengthen the tourism brand Switzerland and to successfullyposition it nationally and internationally for • the benefit of the sector. Travel e22

21. http://bit.ly/myswitzerland-case-movie

25. More groups Please!..