Information and Communication Technology

in A Tourism Destination ManagementPertemuan 23-24

Matakuliah : G1174/Tourism Management and PlanningTahun : 2007

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Topics

• ICT operation in managing a destination

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Objectives

1. To demonstrate the utilization of ICT in a tourism destination

2. To explain the concept of e-Tourism3. To find out the effect of ICT in managing a

tourism destination

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ICT Today

• Cell phone applications (SMS)• Digital cameras• Internet • Wireless (WiFi and WiMAN)• VOIP • GPS & GIS• Convergence (data, voice, media) • Digital radio • Applications on demand

Source: USAID (2006)

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The evolution of ICTs toward businessEra Year

sObjectives

Data processing

1960s

To improve operational efficiency by automation information based process

Management Information System (MIS)

1970s

To increase management effectiveness by satisfying the organizational information requirements

Strategic Information System (SIS)

1980s

To improve competitiveness by changing the nature or conduct of business – Introduction of ICT

Network 1990s

To alter competitiveness in the global marketplace and reduce the significance of location and size in the service delivery process

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ICT and Tourism

• Information and communication technology (ICT) can be defined as the use of digital tools for business functions and process.

• The whole system of ICTs is being rapidly diffused throughout the tourism industry and no player will escape ICTs’ impacts.

• ICTs include the entire range of electronic tools which facilitate the operational and strategic management of organization by enabling them to manage their information, functions and processes as well as to communicate interactively with their stakeholders for achieving the objectives.

• ICTs offer various functionalities such as online reservation and booking systems with the aim of meeting their customers´ expectations.

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Benefit of ICT on Tourism

• Increase their internal efficiency and manage their capacity and yields better

• Interact effectively with consumers and personalize the product

• Revolutionize tourism intermediation and increase the point of sale

• Empower tourists to communicate with other tourists• Support efficient cooperation between partners in the

system value• Enhance the operational and geographic scope by

offering strategic tools for global expansion

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ICT + Tourism = e-Tourism

• Over the last few years, information and communication technologies (ICT) have had a growing impact on tourism promotion, marketing and sales.

• With the advent of new forms of ICT, a novel type of tourism, e-tourism, has emerged that is radically transforming the international tourism industry.

• More and more people now prefer to search for information on tourism destinations and offers on the Internet.

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The e-tourism marketplaceIt should contain:• General information about the country (maps, visas,

climate, etc.)• Specific local information about tourism services such

as special-interest tours, a list of tourist spots and craft centers, national or regional parks, markets, hotels, restaurants, travel agencies, airlines and transport, practical information about excursions, guides, interpreters, doctors and car hire agencies

• Information about local crafts (relevant organizations and associations, crafts workers, products, etc.), and

• Links to the web sites of the various partnerships and associates and to existing information on the Web.

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Concept of e-Tourism

eTourism

Source: UNTAD (2004)

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E-tourism and Tourists

• Enable travelers to access reliable and accurate information• Allow tourists to undertake online reservation in a short

time, low cost and convenience• Provide access to transparent and easily comparable

information on destination, holiday packages, travel, lodging and leisure services

• Get immediate confirmation and speedy travel documents• Enable visitors to book at the ‘last minute’• Empower consumers to research their travel requirements

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ICTs in Tourism Supply

Source: USAID (2006)

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Tourism Site Selection, Management, Monitoring

Source: USAID (2006)

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ICTs and Marketing

Swiss full service travel site

Tourism in France

Source: USAID (2006) & UNTAD (2004)

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Customer Relation Management through ICTs

Source: UNTAD (2004)

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ICTs and Destination

• Destination Management System (DMS) are strategic ICT tools that can help operators and tourism enterprises in developing countries integrate, promote and distribute tourism products and services.

• The two primary functions of a destination management system are to: – Provide consumers with comprehensive and accurate

information for the preparation of their vacations, and with booking facilities for tourism services and products,

– Provide tourism enterprises with the means to be better integrated into the tourism supply chain by organizing and promoting personalized and enriched tourism experiences.

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Objectives of DMS

• To efficiently integrate and facilitate interaction among all stakeholders

• To optimize the relationships with targeted groups• To collect, manage and distribute information on tourism

products to a larger number of consumers and tourism distributors throughout the world

• To develop an integrated tourism product and service offer• To provide up-to-date and attractive tourism information and

products according to a country's interests• To allow consumers to make a reservation easily and receive

a confirmation quickly• To reduce marketing costs compared with traditional

channels (such as printed material)• To collect information on customers and to design marketing

strategies for different market segments.

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ICTs and Airlines

• Online reservation• Electronic ticketing (e-Ticket)• Yield management• Electronic auction for last minute available seats• Disintermediation and redesign of agency

commission scheme• Productivity of the new electronic distribution media

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ICTs and Hotel

• Property management system (PMS) coordinate front office, sales, planning and operational functions by administrating reservations and managing the hotel inventory.

• PMSs integrate the back and front of the house management and improve general administration function.

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ICTs and Tour Operators

• Offering customised package• Updating e-brochure regularly• Saving commission and reducing cost of

developing, printing, storing, distributing brochure

• Making travel booking online• Consumers information search

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Conclusion

• ICTs represent a paradigm shift in the tourism industry

• ICTs provide innovative strategic tools for destinations to improve the impact of tourism by disseminating information and coordinating their offering