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Dimitrios BUHALIS - Information Technology for strategic tourism management

Tourism ICTs and the Tourism System. The profilaration of the Internet and the expansion of networking have revelutionized tourism industry and have altered the core business for all stakeholders.

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Dimitrios BUHALIS - Information Technology for strategic tourism management

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  1. TourismICTs and the Tourism System • The profilaration of the Internet and the expansion of networking have revelutionized tourism industry and have altered the core business for all stakeholders. • By networking tourism players globally, innovative operators have realized that a number of opportunities and challenges emerge. • Principlals use ICTs primarily to reduce operational and distribution costsby establishing powerful tools to interact directly with the consumers. • The innovative players took advantage of emerging ICT tools by developing appropriate products & services which add value in the process. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  2. ICTs and the Tourism System • The key reasons for this slow migration process are: • Low profit margins in the industry result in reluctance to invest in ICTs. • ICTs develop faster than the industry is able or willing to follow • Small Players cannot aford. • Complete migration requires all members & channels of organization to follow this development. • On tourism supply side, ICTs play critical role on : • Production • Marketing • Financial • Operational and Distribution... Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  3. Distribution • Distribution have become the most critical factor for the competitiveness of the organizations & destinations. • Setting appropriate and effective distribution channels influence consumer behaviour as well as industry ability to respond guests & clients. • ICTs have revelutionized distribution channels effectively.(e.g.: CRSs, GDSs ). • As tourism intermediation is all about handling information & facilitating transactions, ICTs play critical role in the operation of intermediaries. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  4. Distribution • While ICTs facilitate distribution, they influence the Marketing Mix (“P”s of Marketing): • Determine by assessing real-time demand & availability PRICE • Manupulate and formulate tourism by combining and specializing products according to customers’ needs & wants PRODUCT • Facilitate by targeting specific markets and establishing communucation PROMOTION • They also transform by introducing new distribution channels BUSINESS MODELS • Therfore, distribution channels bundle tourism products together, to make consumers confirm, and pay for the bookings. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  5. Distribution • Consumer Needs & Wants that are satisfied by principle suppliers, Incoming&Outgoing tour travel agencies & our operators: • Non-stop creativity. • Pleasent experience • Individual attention • Product knowledge • Unbiased service • Product variety • Best Deals • Advice for decissions • Convenient Access • Value for time • Accurate & reliable information • Minimum form filling • Competent staff • Tourism distribution channels require detailed analysis before ICT needs are examined! Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  6. Operational Management • Today ICTs are in the center of tourism organizations’ tactical planning & operational management 1. Internet supported eTourism Management • Most tourism organizations today have their own detailed websites. They use internet to: • Selling travel products online directly to customers. They can also adopt dynamic pricing according to demand. • Brand building (Communucate the brand values on the webpage) • Loyalty clubs & affiliations. (Increase interaction with loyal customers, thus maximize customer loyalty). Airlines have pioneered loyalty clubs; e.g.: www.ba.com , www.thy.com .Not only to communucate, but also offer special priviliges and benefits, as well as they also assist customers to manage with their rewards, air-miles, etc. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  7. Operational Management 2. Intranet systems & Intranet supported eTourism Management! • Communucation and interacting with staff and partners • Partner systems: e.g.: authorized tour operators can access • Facilitate a number of operational decissions • Controlling inventory helps principlals to actively anticipate and manage demand for their products. • Timely sharing of all data accross the organization, is critical for production; and selling • In addition, re-engineer, automate and facilitate entire business processes • Provides: eSales, eProcurement, eAccounting & eFinance, eHuman Resources... Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  8. Operational Management 3. Extranet systems supported eTourism Management! • Private intranet accessable to outsiders with privileges • Authorized tour company can access to a dedicated part of a hotel’s intranet to see corporate rates & availabilitiy, or update rooming list, etc. • Amadeus, Wordspan, etc screens at Travel Agency offices... Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  9. e-Airlines • Airlines have been using ICTs since 1960s. • Consequently, airlines moved fast towards Internet Protocol systems. • 20 % of all world airlines already established their webbased sales system, • 90% of airline companies have been reported to have started the migration to IPs. • Today airlines see their own websites, as the most important distribution channels • CRSs from 1970s, offered airlines a tool to manage their inventory internally, and also allowed distributors and partners to access information about availability and prices, schedules and routes • CRSs allowed airlines to compete fiercely, by adapting their schedules and fares according to demand. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  10. e-Airlines • 1980s, the CRSs developed into a more comprehensive Global Distribution Systems (GDSs) • Scheduled Carriers = AirFrance, United Airlines, THY, etc • They primarily targeted Business Travelers for eTickets, hence they facilitated online tickets. • Developed interfaces with consumers over the web, but still keep their old traditional systems as alternative distribution channels (CRSs) • No Frills (Low Cost) = EasyJet, Jet Blue, etc. • All sold on the web with e-ticket; more often control, minimized distribution costs. • Charter = Britannia Airways, etc. • Not on the GDS. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  11. e-Airlines • According to 2002 data, 2.8 % of all airlines revenue goes to ICT. • Strategic Functions of e-Airlines • Bussiness unit management. • Route Planning • Monitor competitors • Dynamic Pricing & yield management • Online Branding and communucation of principles to users • Partnerships and alliences Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  12. e-Airlines • Interface with consumers • Management of inventory & booking trhough GDSs and Internet • Reservation management, e-ticketing • Route Planning • Online Branding and communucation of principles to users • Dynamic Pricing & yield management • Special offers, promotions • eProcurement and management of supplies • Customer profiles, easy CRM, manage Loyalty clubs Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  13. e-Airlines • Crew Management Systems • Assist in creation of maintanence and duty schedules • Assess Crew planning & control • Comprehensive Crew databases to help contact with crew and crew control • Operations Control Systems • Enable airline to plan their operations and to analyse all incoming information • Automatic calculation and distribution of flight plans • Aircraft maintanence, etc. • Online catalogue system for ordering supplies • Various extranets.. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  14. e-Airlines Hot NewsaboutEairlines & Low-costAirlines • “US sneezes, rest of theworldcatchescold” • Crisishittingall of us.. • Airpassengersfalldrammatically.. • Increasedoilcostsmakeallairtransportationsuffer.. • 1% oilincreasereducestravelby 0.12 % • -2% to -3% decrease in allWorld Travel is expected.. • Business & Corporate Travel getstheworstdecline.. • Vacationsarestillneeded; shortertripsclosetohometrips • Conference & Exhibitionindustrywillfall… • WebcastsandTeleconferenceswillincrease Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  15. e-Airlines Hot NewsaboutEairlines & Low-costAirlines • 2004 to 2008 LowCostairlinestripledtheirseatcapacity. • RyanAircarriesaroud 3,5 millionpassengersincomingtoGermany • 113 LowCostAirlinesoperate in Europe.. • 60% of allairtraffictoPoland is byLowCostAirlines… • LowCostAirlines stand for 40% of allEuropeanAir Travel… • Lufthansacloseddownmanyroutesduetolowcostcompetition • RyanAiropened 20 moreroutes in 2007-2008 • However… Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  16. e-Airlines Hot NewsaboutEairlines & Low-costAirlines • Lufthansafightbackwithadvertisements, alreadygot 10% seatcapacitybackfromLowCostAirlines.. (Lufthansamakes 1,5 billion Euro profiteveryyear, therforetheyhavecapitaltofightback..) • Duetocrisis in 2009, LufthansamighttakeoverAustrian.. • Duetohighoilprices, LowCostAirlineswill no longer be lowcost in 2009-2010. Therefore, reducedseatcapacity.. • Many of themwillgoout of business.. • Keyforairlineindustry is; peoplewanttoflyone-stop; same as airlineswanttoflyone-stop forcostreasons.. • That’showLowcostcarriersmadetheirwaysupby far.. Travel e22 Dimitrios BUHALIS - Information Technology for strategic tourism management

  17. Forecastingfuture… / The Boeing Company, Seattle Travel e22

  18. Forecasting future… / The Boeing Company, Seattle Travel e22

  19. Airlines All Charts aretakenfrom : Current Market Outlook 2008-2027 / The Boeing Company, Seattle 2008 Travel e22

  20. AirlinesWorldwideTrafficDistribution Travel e22

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  22. Travel e22

  23. Travel e22

  24. Scenario Project FutureHotel Travel e22

  25. www.futurehotel.de Travel e22

  26. control of operational devices -voice control, sensoric control -control via mobile devices -usability -integrated solutions personalisation -guest profile -scenarios of usage -specific guest data -hotel management system media technologies & entertainment -TV-device -audio solutions -integrated displays -flexible projection surfaces -infotainment platform work place -network infrastructure -ergonomics -flexible display usage -standardised interfaces -services & support -integration of brought along private technical devices light -LED, OLED -light effects bathroom equipment -integrated sanitary objects -display mirror wellness & health -FutureSpa -EnergyBed automation -virtual mini bar -service and cleaning robots security -access technology, guest identification -check in, check out energy efficiency facility management technology integration comfort & guest satisfaction

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