Chapter 1: Tourism and Information Technology (IT)

information

tourism industry thrives on ______________.

Information Technology

“the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data” (Daintith, 2012).

Information systems

In a business context, information technologies are often referred to as

Information systems

“__________________ are combinations of hardware, software and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organization settings” (Valicich and Schneider, 2014, p. 19).

travel and tourism industry

The ___________________ is a heavy user of IT, and some of the largest telecommunication networks spanning the globe carry travel information.

Information Technology

provides the information backbone that facilitates tourism

service

While the term product is frequently used in the industry to refer to accommodation, transport attraction and even destinations, tourism can also be described as a type of ___________.

Heterogeneity, Intangibility, Perishability, Inseparable, Global

Characteristics of Tourism Products (Information- Intensive)

Heterogeneity

a typical trip is complex and consists of many component parts, therefore by nature is heterogeneous.

trip

heterogeneous experience called a “______”.

Intangibility

potential consumers are often unable to see, touch or feel a vacation or a business trip and its components before they purchase it.

Intangibility

need detailed information about the destination or experience to substitute for the lack of tangibility, via many different media. such as forms of brochures, websites, pictures, videos, and virtual reality, allow travelers to “Sample” the trip before making a purchase.

Intangibility

The _________________ nature of tourism has brought the IT and tourism industries together to creatively market the product and make it more tangible.

Perishability

if an airline seat is not sold on a given flight, that particular seat can never be sold again—the revenue from it, has “perished”.

Perishability

IT can assist with monitoring inventories and dynamically adjusting prices to maximize load factors, occupancy and attendance rates.

IT (CRS, apps, booking engines) helps with pricing & last-minute deals.

Inseparable

Tourism consumption is _____ from the production of experience.

Production = consumption (experience created & used at same time).

Inseparable

there is interaction between service providers and travelers because the production of the experience happens simultaneously.

Interaction between service providers & tourists.

Inseparable

_______plays an increasingly important role in ensuring that this co-production and co-creation of tourism experiences is efficient and of a high quality

________ applications are increasingly being used to personalize experiences and serve tourists more efficiently

IT improves personalization & efficiency (e.g., check-ins, reservations).

Global

tourism industry is one of the most ____ industries in the world.

Tourism is highly international.

domestic

International travel generates large volumes of information not found in _________ industries.

Global

International travelers need access to border control information such as visa and passport regulations, custom regulations, arrival or departure taxes, currency control and heath regulations such as immunization requirements.

Information Technology

This geographic dispersion requires data communication networks around the globe to link countries, tourism organizations and travelers together. Without _____, the tourism industry would not function as efficiently at the international level.

Information

is lifeblood of the Tourism Industry

AVIATION SECTOR

has been most innovative and heavy user of IT starting early in the 1950s with the implementation of computer reservation systems.

AVIATION SECTOR

These systems (CRS) evolved and became known as Global Distribution Systems (GDSs) as they integrated all types of travel reservations in addition to flights.

They became the main tool of travel intermediaries when booking trips.

AIRLINE SECTOR

leader in the use of yield management systems to strategically price airlines’ seats to maximize revenue.

frequent-flyer programs

Airline Sector

IT has facilitated the development of _______ that require sophisticated database technology and very large amounts of data.

self-check-in terminals and Automated call centers

As airlines seek to reduce labor costs and speed passengers through airports, _______________ in airports have been introduced. _______________ attempt to further reduce labor costs.

AIRLINE SECTOR

Use of the Internet for booking flights and IT applications that allow travelers to use their smartphones for boarding passes, updates on flight status and other functions are becoming popular, reducing paper usage.

TRAVEL INTERMEDIARIES

travel agents and tour operators have been significantly affected by technology to the degree that their existence is at stake.

disintermediation

travel agents and tour operators had to adapt to the “_______” caused by the Internet giving consumers access to the same information and more.

Specializing in destinations or products (e.g., cruises).

Using bulk buying power for cheaper rates.

Travel Intermediaries (Travel Agents & Tour Operators)

Many left the market; survivors adapted by:

HOSPITALITY SECTOR

has, in general, been more reticent to adopt technology, but now has many specialized systems to support their operations.

property management systems

Hotel operations are run by ______________, which process all activity relative to guests, rooms, accounting, housekeeping, and customer records.

HOSPITALITY SECTOR

• Hotel Reservation systems link customers to single hotels or chains.

• Increasing use of electronic locking systems, digital room keys, automation, voice commands, virtual concierges, and self-check-in.

• Some hotels now offer a fully automated stay with no staff interaction.

RESTAURANTS

use of IT through point-of-sale systems, menu management systems and restaurant management systems.

Tourism destinations

___________ have found much value in incorporating IT into their marketing and management strategies.

Information Technology

links different sectors and stakeholders together.

- Use Internet, social media, and mobile tech like GPS and GIS to

connect with travelers.

Travelers

aining much benefit from IT developments. In particular, social media and mobile technologies provide ubiquitous access to information about destinations and travel organizations.

Other Sectors of the Travel Industry

(Attractions, Entertainment, Casinos, Conventions)

- All have specialized IT systems for operations.

- With the Internet, even small businesses can access global markets

like large corporations.

1. Information is not used up or depleted as it is consumed.

2. Information and information technology can actually be used as a substitute for the other three resources of land, labor, and capital.

3. Information has tendency to leak.

Typologies of Information

1. Information is not used up or depleted as it is consumed.

- Information is not depleted

- Info expands as it’s shared, not lost.

Example: A traveler tells another about a hotel or beach → both now have the info.

- Can be opportunity or threat, depending on accuracy & receiver.

2. Information and information technology can actually be used as a substitute for the other three resources of land, labor, and capital.

- Information as a substitute for land, labor, capital

Substitute for Land: Telecommuting reduces need for expensive office space.

Substitute for Labor: IT replaces/augments workers (e.g., decision support systems, AI).

Substitute for Capital: Airbnb creates value without capital investment infrastructure

such as hotel rooms

3. Information has tendency to leak.

- Information leaks easily

- Info has a tendency to leak → security & privacy issues.

- requires policies and systems to prevent security and privacy breaches.

Example: Hotels don’t disclose guest room numbers to casual reports; airlines don’t share passenger personal details on a specific flight.

static

dynamic

prior to, during or after the trip.

Information can be ___ or ____. Information can be used, produced or shared by travelers ___, ___ or ___ the trip.

Static tourism information

- some tourism information does not change very frequently and therefore is relatively static. - may change in the long term but not in the short term.

Static tourism information

Examples: product description, transportation routes. Signages and location

information.

Dynamic tourism information

- information changes frequently.

• A large volume of tourism information, however is dynamic and requires digital format for frequent updates and rapid transmission.

• changes daily, weekly, monthly and seasonally.

Dynamic tourism information

Examples: product availability schedules, fares and rates, travel reviews, weather

conditions, snowfalls on skin slopes or surf conditions at beaches.

Pre-trip, In-trip (on-site), Post-trip

Trip Stages (When travelers need information at different times and different places)

Pre-trip

planning phase of a trip is required at traveler’s home or prior destination.

The type of information required at different times of the trip planning process The depends on the type of tourist.

In-Trip (On-site)

This need for on-site information is spawning new applications in mobile technologies and smart destinations.

Many decisions are now made at destination → drives mobile tech & “smart destinations.”

Post-Trip

After the tourist returns home, both static and dynamic information is used.

Dynamic post-trip uses of tourism information are growing as social media and other photo- and video-sharing platforms proliferate.

Travelers use/share info (often dynamic) via social media, photo & video sharing platforms.

extremely rapid

The evolution of information technology has been _______ compared to other industries.

UNIVAC 1 in 1951

First commercially available computer (1951)

IBM 650

world’s first mass-produced computer, used for science & aviation reservation systems.

scientific purposes

These large computers used magnetic tape, magnetic drums, vacuum tubes and punched cards for input, and were mostly used for ______.

aviation

The ________ industry was a pioneer in the commercial use of these large machines, which played an important role in the development of the first airline reservation system.

Transistor

by Bell Laboratories → led to the development of a second generation of computers, which were smaller, faster and more powerful.

Integrated Circuit

1958:_______________ → two engineers working independently invented the _______ (or the computer chip).

Led to smaller, faster business computers

third-generation

1965: Many travel businesses such hotel, travel agencies and other tourism enterprises used these ______________ computers for their operations.

microprocessor

1970: Intel corporation invented the ___________ for microcomputers

Major commercial microcomputers: Apple II, IBM PC

Greater affordability

storage media and operating system

________ coupled with new _____ and ______ (such as MS-DOS), and input devices such as the mouse, made computing both accessible and user-friendly for average users with no knowledge of programing.

Graphical User Interfaces

Early 1980s: Apple & Microsoft introduced window-based "point and click" ____________ (GUIs)

word processing, spreadsheets, desktop publishing, database management software

Late 1970s - Early 1980s: ________, _______, ________, ________ = common application in travel industry organizations.

Moore’s Law

(1965): Intel Co-founder Gordon Moore: transistors and integrated circuits in computers double every 2 years → applies to processor speed, memory, sensors, data storage capacity, data transmission, size of pixels on digital cameras.

software

1985 have involved incremental changes have occurred in the development of new version of _______

linking computers together using networks

The next wave of information technologies Overlap with electronic computing → while IBM, Apple, and Microsoft built the Digital Revolution, others thought of _____________.

1970 Prediction: Arthur C. Clarke, Popular Science (magazine)

Console in office = telephone + TV + Xerox + small computer. Connected to satellites → brings knowledge of the world to fingertips.

Could verify checks, get historical data, hear illustrated lectures, or hold electronic conference with people worldwide.

Internet

12 years later: Advanced Research Project Agency (ARPA) + US universities connected → created _______ (network of networks).

Internet

The _______ expanded rapidly in Europe and Australia in the mid-1980s and to Asia in the late 1980s and early 1990s. The ______ enable a range of networked services, including email, the WWW and cloud computing.

mobile and ubiquitous

The most recent IT wave relevant to travel and tourism is the rise of ____ and _____ computing.

Ubiquitous Technology

portable, always-available computing devices (like smartphones, tablets, smartwatches, smart glasses) that people can use anytime and anywhere.

Includes mobile phones, personal digital assistance PDAs, portable computers, digital cameras, portable music players.

History of Mobile Devices

miniaturization

In the early 1990s, the _________ of electronics and batteries made pocket-size portable devices possible, triggering the new product category of PDAs.

small, handheld computers

Result of the miniaturization of electronics and batteries: These were ____, _________, which allowed users to read text, send email, schedule appointment and store documents and contacts.

IBM Simon

The development of mobile phones and PDAs is significant because the convergence of these two technologies in 1994 resulted in the first smartphone, the ________.

Apple iPhone

This was followed (release of first smartphone IBM Simon) by a period of intense competition between mobile phone manufacturers, computer makers, and electronics companies.

- This eventually led to the release of the first successful mass-market smartphone, the _________ in 2007.

2007

The proliferation of mobile devices and apps has created many new benefits for both the travel industry and travelers.

Location-aware mobile devices

___________ have had an impact on visitor information, marketing, orientation, and interpretation.

ubiquitous

New innovations in _________ (or portable) devices such as smart watches and smart glasses have continued to find applications in the travel industry.

Ubiquitous Technology

Today, these devices allow travelers to access information, navigate, book services, and share experiences instantly.

Ubiquitous Technology

In tourism: _________________ helps with visitor information, marketing, orientation, and interpretation, making travel easier and more interactive

convergence of information technologies + increasing interoperability of platforms.

The major trends evident in this historical account information technologies included the __________ and the ____________ of various platforms.

travel agency

Miniaturization + ubiquity of computers + internet connectivity → new level of functionality; _____________ benefited.

information

Advances in Fiber optics + wireless telecommunication → exponential growth of _______ being produced and consumed.

Internet of Things

World where physical object is blended with the virtual → ____________ (IoT) (everyday objects and amenities like lights, cars, fridges, etc.)

Artificial intelligence and expert systems

_________ and __________ are now used to support tasks and decision-making that were previously carried out by people

Social media

_________ (Facebook, twitter, etc.) has connected travelers and organization in new and different ways and has transformed how society operates.

profound

Consequences of hyper-connectivity + globalization of business travel are __________.

collapse of space and time

- Technological innovations have caused “_________” → work anytime, anywhere. Example: Traveler in Heathrow can book Honolulu hotel via smartphone in seconds.

time and space no longer restrict us from connecting and working

IT and Internet connect us to whoever we want

Videoconferencing

____________ makes meetings commonplace → face-to-face less frequent, but more valued.

- Travel may reduce with videoconferencing → industry must be alert + innovative.

Example: Rosenbluth Travel added teleconferencing so clients could choose face-to-face or virtual meetings.

Information Technology

• Thinking strategically about ___ is critical in today’s competitive world.

• ______ supports strategic direction of the organization and innovation.

• Impacts both production of goods/services and marketing process

Cash et al. (1992) Model

Two- by-two Matrix

provided a model to show how different industries can use IT to improve both their production and marketing.

Cash et al. (1992) Model

Two- by-two Matrix

The model uses a two-by-two matrix

Horizontal Axis = Impact of IT on marketing activities.

Vertical Axis = Impact of IT on production of goods and services.

• Product choice is complex.

• Quick customer decisions with confirmations are essential.

• Customer tastes and pricing are volatile.

Cash et al Two by two Matrix: High on marketing (horizontal) if:

- Technology is embedded in the product.

- Production requires long design process.

- Time and cost savings possible through automation.

Cash et al Two by Two Matrix: High on production (vertical) if:

heavily used

varies

The travel industry sectors place on the matrix are airline, travel agents, tour operators, hotel and attractions (in bold).

Most sectors are place on the right side of the matrix since IT is ______ in marketing tourism products.

Various travel sectors are positioned from high to low on the production axis since the impact of technology _____ according to different sectors.

Airline Sector

• Highest on both production & marketing.

• Use of Global Distribution Systems, frequent flyer databases, yield management.

• IT is also used in aircraft design, maintenance, luggage handling.

Airline Sector

• High on marketing (information intensive, no tangible product of their own).

• Product choice is complex, quick decisions and confirmations are often necessary and customer tastes and prices are volatile.

• High production impact because service = information.