E-tourism Electronic Business Methodologies for Advancement: Advancing a Global Dialog Tunis, 19-21 June - PowerPoint PPT Presentation

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E-tourism Electronic Business Methodologies for Advancement: Advancing a Global Dialog Tunis, 19-21 June PowerPoint Presentation
E-tourism Electronic Business Methodologies for Advancement: Advancing a Global Dialog Tunis, 19-21 June

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E-tourism Electronic Business Methodologies for Advancement: Advancing a Global Dialog Tunis, 19-21 June

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  1. E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, 19-21 June WORLD TOURISM ORGANIZATION

  2. Access WORLD TOURISM ORGANIZATION

  3. The On-line Market is there Forecast for European markets 300 250 244 216 212 237 230 223 200 208 200 192 150 100 • - 64% of Internet sales are direct sales. • UK sales represent 34% of Western • Eurepean sales. • Airlines are 60% of total sales and half • of this is from low-cost airlines 50 14.7 12.8 10.9 8.45 6.77 0 4.73 2.64 0.227 0.811 1998 1999 2000 2001 2002 2003 2004 2005 2006 Market M€(000) Internet salesM€(000) Market share 7% 6% 5% 4% 3% 2% 1% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 WORLD TOURISM ORGANIZATION

  4. Distribution costs are a growing area of potential savings $ 20 billion per annum: 4% of overall costs and growing. WORLD TOURISM ORGANIZATION

  5. The Electronic Marketplace in tourism – Source: Buhalis D., “eTourism” WORLD TOURISM ORGANIZATION

  6. New Business Models • Tiscover • GTREX WORLD TOURISM ORGANIZATION

  7. Three online firms now control over 55 percent of all online travel bookings Source: Peter O’Connor, IMHI, 2003 WORLD TOURISM ORGANIZATION

  8. WTO activities in E-tourism: • Publications: • Marketing Tourism Destinations Online, 1999 • E-Business for Tourism, 2001 • Seminars • Capacity building: • Courses for National Tourism officials of • WTO member States • Partnership with IFITT • Bench-marking scheme for Destination Web Sites • Harmonise WORLD TOURISM ORGANIZATION

  9. WORLD TOURISM ORGANIZATION

  10. CRS Customer 3rd Party CRS Hotel Hotel Traditional Intermediaries Electronic Intermediaries Hotel GDS Travel Agents Switch Hotel DMS TICs As it was in the beginning…. Source: Peter O’Connor, IMHI, 2003 WORLD TOURISM ORGANIZATION

  11. CRS Web site Hotel Web site Travel Agent Customer Customer Customer Customer Customer GDS CRS Rep Company Switch Customer Customer Customer Customer Customer Customer Customer DMS TIC Web Intermediary GDS-based Web site Rep Company Web site Switch Co Web Site Hotel Hotel Hotel Hotel Hotel DMS Web site Is now….. Source: Peter O’Connor, IMHI, 2003 WORLD TOURISM ORGANIZATION

  12. Critical tourism and hospitality functions supported by ICTs • Front office: reservations, check-in, payments • Back office: accounting, payroll, human resources management, marketing • Customer entertainment and service • Communication with consumers and partners • Marketing research • Reaction and management of unexpected events • Flexible and dynamic pricing through yield management • Differentiation and personalization of products • Monitoring performance indicators and building feedback mechanisms • Control of business processes and personnel WORLD TOURISM ORGANIZATION

  13. Examples of information technology applications used in tourism • Entire range of hardware, software and netware • Stand alone computers and network devices • Office automation, reservation, accounting, payroll and procurement management applications • Portable/wireless communication devices • Internal management tools such as management support systems, decision support systems and management information systems • Tailor-made internal management applications • Databases and knowledge management systems WORLD TOURISM ORGANIZATION

  14. Examples of information technology applications used in tourism • Internet/intranets/extranets • Networks with partners for regular transactions (EDI or extranets) • Networking and open distribution of products through the Internet • Computer reservation systems (CRSs) • Global distribution systems (GDSs) (e.g. Galileo, SABRE, Amadeus, Worldspan) • Switch applications for hospitality organizations (e.g. THISCO and WIZCOM) WORLD TOURISM ORGANIZATION

  15. Examples of information technology applications used in tourism • Destination management systems (DMSs) • Internet-based travel intermediaries (e.g. Expedia.com, Travelocity.com, Preview Travel, Priceline.com, etc.) • Mobile/WAP-based reservation systems • Traditional distribution technologies supporting automated systems (e.g. videotext) • Calling centres • Interactive digital television (IDTV) • CD-ROMs • Kiosks and touch-screen terminals WORLD TOURISM ORGANIZATION

  16. Internal systems and intranets • Improving capacity management and operations efficiency • Facilitating central room inventory control • Providing last room availability information • Offering yield management capability • Providing better database access for management purposes • Supporting extensive marketing, sales and operational reports • Facilitating marketing research and planning • Providing travel agency tracking and commission payment WORLD TOURISM ORGANIZATION

  17. The small e-business • The ICT illiteracy of the entrepreneurs • Lack of marketing and technology understanding • The cost of ICT’s being perceived as prohibitive for entrepreneurs • Inability to control the equipment • Perceived dependence on trained staff • Lack of standardization and, often, professionalism • Seasonality and limited period of operations in resorts • Insufficient training and established organizational practices • Small size multiplies the administration required by CRS’s to deal with each property • The unwillingness of SMTE’s to lose control over their property WORLD TOURISM ORGANIZATION

  18. “Tourism is a very information intensive activity. In few other areas of activity are the generation, gathering, processing, application and communication of information as important for day-to-day operations as they are for the travel and tourism industry” Poon 1993 WORLD TOURISM ORGANIZATION