Information Technology Impact in the Tourism Industry

Question: Discuss about theInformation Technology Impact in the Tourism Industry. Answer: Introduction This industry of tourism was seen as one of the primary sectors of business where functions of business are exclusively using the technologies of the ICT (information and communication technology). The first application that is based on IT and is used worldwide is the computerized systems for reservations. This industry is having e-commerce successful areas because this is mainly based on client oriented and uses various provision and services. ICT will facilitate the integration and also enables the customization of the tourism products that will suit the requirements of the individuals. The operators of the tourism require getting awareness about the modifications and get equipped to take the proactive method, better skill and respond. The tourism operator challenge is to provision the increasingly via IT, localized data and accurate, whilst maintaining tourist relationship. IT is the place which will manage the technology and spans wide area which contains various things like data constructs, programming languages, computer hardware, information systems, computer software and processes. ICT (information and communication technology) will be used not just for an operational purpose, but for strategic and tactical management also. This will empower the tourism enterprises for efficiently directing with the prospective suppliers and clients for achieving the competitive advantages. (Stoddart, 2001) Figure depicts the overview of all players that are involved in the Tourist industry Internet Impact on Tourism With the use of an Internet, the marketers can access the technology for communicating directly and customizing the products with the marketers of smaller target. This Internet is established firmly as the tool for marketing. This is serving as integral part of the mix of marketing that serves as the electronic storefront and distribution channel. Internet is behaving as an interactive medium not like traditional marketing that usually permits one-way communication towards client from marketer. Below we are providing impact of internet based on strategic framework with the help of PEST and PORTERS FIVE FORCE Analysis: PEST Analysis We did analysis on four areas: Legal/Political: The organization of tourism is deploying Internet and IT for the competitive advantages will face various legal risks because of possible violation of privacy and anti-trust laws. Procedures and various policies get created for promoting the understanding of the potential risks. Economic: Internet is impacting the economic changes which contain current fluctuation, inflation, interest rates and economic growth which eliminate the cost advantage of the tourism organization. (Clayton, Criscuolo, 2002) Cultural/Social: Changes in attitude of the clients and demographic changes toward Internet and new Technology will have the direct impact on tourism and internet. Nowadays, clients are becoming more of the advanced and skilled in use of the technology. Technological: Internet and IT have been transformed the tourism product distribution for forming a market-place that is electronic where information access achieved instantly. Consumers and principals will continue for experiencing the interactivity unprecedented. As per technological explosion consequences, the tourism packaging is becoming more of the individualistic, inevitably leading to the certain degree of the disintermediation channel, the procedure which will give new opportunities and threats to all partners of the tourism. Porter's Five Force Analysis New Entrants Threats: New entrants will tend for bringing the substantial resources, desire for gaining the market share and new capacity. As per Rowson and Lashley (2005) suggests that developments of IT, give new opportunities for the operators of tour. For reducing the pricing wars and buyers power the governments policies will entry the distribution sector for such of the controls as limits and license needs on the access to the tools that are technical. (Dogac, Kabak, Laleci, Sinir, Yildiz, Kirbas, Gurcan, 2004) Bargaining the suppliers power: In tourism providers respect Internet will give the global distribution infrastructure and inexpensive delivery for multimedia information that is related to tourism. The Internet will permits firms for skipping the value chain parts. The successful strategy will expand the suppliers website or enter the joint projects the products that are competitive. Bargaining the clients power: The internet supports for accessing the new clients on the global basis and it enables for streamlining the operating process. Daily operations integrating like distribution, marketing and sales. The large tourism majority will present in the system of global distributions. Threats to substitute for Services of products: The agencies of the travel are major substantial to sales of Internet, when it comes for buying the packages of the tourism. Other media source and direct advertising also serve as the informative or promotional mean that will be used for Internet. (Huggins, Izushi, 2002) Bargaining competitors power: The Internet of the competitive environment and the impact on tourism firms identified widely being highly, dynamic and complex segmented. As the organizations are dependent on the resources for environment it will attempt for managing the dependency by maintaining and developing strategies. The Tourism and Internet The Internet relevant to the tourism enables the tourist and consumer knowledge for gathering the information. The use of systems that are based on web use has been grown significantly. In year 1996, the consumers that are suing this system is 3.1 million which got increased to 33.8 million clients by year 1998. It was confirmed that till year 2008, the whole business of tourism using internet systems are 30%. The revenues of travel on Internet have ranked consistently high comparison with other services and goods. Within the industry of tourism the online technologies have impacted significantly on relationships among clients and various operators of the industry, transactions and communications and also among operators and regulators. (Galloway, Mochrie Deakins, 2004) Below are the four important changes the way business was conducted: The shift in power balance among the customers and suppliers because of the increased information availability. Changed information sharing and procedures among and within the organizations Increase new product access and the speed to the market via the Internet For turning the ability into ideas having marketing innovation for the wide customers range, with the decrease of buyer costs of access and search the costs for markets. (Piccoli, 2004) Here, we are discussing the third and fourth factors in details. In the third point it will make essentially the value chain for vertical disintegration as the electronic procedures integration among and within the organizations for achieving it easily. The fourth factor will demonstrate the available extra choices to the entire buyer thus shifting the power of the balance to them. More choices are available for the tourist at the time of buying the products related to travel because it has various choices given for direct marketing and travel agents that are on-line by the airlines. Advantages of Internet IT benefits, are substantial mainly the tourism for the Internet. The advantages will be no longer dependent on the information system of proprietary once the Internet is available as common technology. Below are the main advantages: Normally having greater interoperability levels with the application that are either external or internal Greater service negotiation to get customized and purchased of activities/services Discovery of web services will recognize the packages, enabling holiday and purchased to get constructed The pre-arrangements with supplier respective that are no longer required Improved the collaboration level among the operators of tourism, just for example, among the providers of service and agencies of the travel. (Zipf, 2002) Need of Tourism Information The important elements for such of the requirements of information are: Facilities quality and their prices of standard containing the exchange rates Other of the unique features and seasons of the visit Facilities that are based on entertainment and activities Some of the special features, culture and social customs for the place Availability of the scheduled transport means, road, water, railway and accessibility through air Shopping, restaurant and accommodation facilities Information requirement in the Tourism Information based on geography on climate, landscape, location, etc. Tourists normally require both the dynamic and static information. In contains available facilities, history, attraction features, climate and location, etc. Information about the schedules of bus, train and airlines, tariffs of accommodation units and transport and availability of present facilities and can change frequently. The industry of tourism made up of the three main components, they are: Attraction sector Accommodation sector Transport sector (Baker, Crompton, 2000) Travel Areas Internet used Below are the various areas where an internet will be used in the industry of tourism: Marketing: here we are providing each marketing aspects, containing: promotion via email search marketing engine special website for giving information for specific region newsletter and editorial advertising the product online Systems used for booking: Recent research supports that more than half of the travel will book through online and thus helps in paying with system of real-time Visitor experiences delivery: The operators of tourism will be using this new technology: In the region, link the clients to the experiences like recommending the things for viewing or part of the experience or tour Give various interpretations such as handled devices and mobile phones Deliver the audio tours for the use of on-site via players of MP3 Give on-line primary experience, such as, tasters or web content using experience-driven delivered by online audio Follow-up and client relationship: It contains Satisfaction surveys that are based on customer email Email feedback based on client for improving the products and services The group email lists for getting regular updates ICT used in the Tourism IT uses the stresses unified communication role and integrate the telecommunications, necessary software and middleware, computers, audio-visual systems and storage that enable the users for manipulating the information, transmit, store, access and create. Below are some of the examples that are uses in the Tourism ICT: Managing the tourist statistics Recognizing the suitable tourist locations Managing attraction and sites Inventory of resources based on tourism Managing the destination resources (Kandampully, Duddy, 2009) Future Research Analysis and future research for adoption and development of IT is required and uses the industry of tourism. The ease of information for accessing and depth has been stimulated the new brand emergence for consumers that are travelled. Tourism and travel will be becoming the largest product categories that are sold on Internet. Conclusion It is very beneficial for integrating the appropriate the new IT into entire operation. It is mainly accepted the Internet and IT and should get treated as the tools of strategic than the tactical problems, and concerns for normal management. Also, this technology is not considered as the acting that happens alone. It is the society product, this also contains the part of higher environment which are used at work with other forces. Internet gives affordable and unprecedented opportunities for the marketing and global representation of both the tourism suppliers either small or large. In this paper we will discuss the fields that are related to various technologies of information and tourism that are available for enhancing the present infrastructure for the tourism organization. Here we have provided the name of the technologies used in this sector such as Attraction sector, Accommodation sector and Transport sector. With the help of these sectors, the current situation of the tourism industry can be enhanced tremendously. References Lashley C. and Rowson B. (2005) Getting IT Right, International Journal of Contemporary Hospitality Management, Vol. 17 Issue 1, pp. 94-105 Galloway, L, Mochrie, R Deakins, D (2004), 'ICT-enabled collectivity as a positive rural business strategy', International Journal of Entrepreneurial Behaviour and Research, vol. 10, no. 4, pp. 247-59 Stoddart L. (2001) Managing Intranets to Encourage Knowledge Sharing: Opportunities and Constraints, Online Information Review, Vol. 25 Issue 1, pp. 19-29 Clayton, T Criscuolo, C (2002), Electronic commerce and business change, National Statistics, viewed 16 April 2005. Dogac, A, Kabak, Y, Laleci, G, Sinir, S, Yildiz, A, Kirbas, S Gurcan, Y (2004), 'Semantically enriched web services for the travel industry', SIGMOD Rec., vol. 33, no. 3, pp. 21-7 Huggins, R Izushi, H (2002), 'The digital divide and ICT learning in rural communities: Examples of good practice service delivery', Local Economy, vol. 17, no. 2, pp. 111-22 Piccoli, G, (2004), 'Making IT matter: a manager's guide to creating and sustaining competitive advantage with information systems', CHR Reports, Cornell University School of Hotel Administration, Viewed 3 April, 2005, Zipf, A (2002), 'Adaptive context-aware mobility support for tourists', IEEE Intelligent Systems, vol. 17, no. 6, pp. 57-9 Baker, D.A. and Crompton, J.L. (2000), Quality, Satisfaction and Behavioral Intentions Annals of Tourism Research, 27(3), pp. 785- 804 Kandampully, J. and Duddy, R. (2009) Competitive Advantage Through Anticipation, Innovation and Relationships, Management Decision, Vol. 37 Issue 1, pp.189-199