SAINT AUGUSTINE UNIVERSITY OF TANZANIA

Faculty of Business Administration

Department of Hospitality and Tourism Management

APPLICATION OF ICT IN TOURISM AND HOSPITALITY MANAGEMTN

TGM 222

Module 2
2.0 INFORMATION AND COMMUNICATION TECHNOLOGY

ICT is a diverse set of technological tools and resources used to communicate, and to create,
store, share and manage information.

CONCEPT OF TECHNOLOGY

A word technology was coined from Greek word tekhnologia, meaning science of craft or
practical arts. It an application of scientific devices, machines, and techniques for
manufacturing goods or services or solving human problems. It is science or knowledge put
into practical use to solve problems or invent useful tools. As an example, the ability of
computer (GDSs) to perform basic reservation processes much faster enables tourism
operations to proceed much more efficiently. In short, ICT is a combination of two
technologies, information technology and communication technology. It is for neither
communication nor information but a technology for either communication or information.

CONCEPT OF INFORMATION TECHNOLOGY

It is a diverse set of technological tools and resources used to create, process and store data
in a paper or electronic format.

CONCEPT OF COMMUNICATION TECHNOLOGY

It is a diverse set of technological tools and resources used to disseminate or exchange

information in a paper or electronic format. It comprises of networking, internet access, and
website development. One can easily exchange, transfer, and provide information through a
network. Communication is the exchange of information through different mediums. Based
on the advancement and mode of technology, telecommunication is categorized into
telecommunication and wireless communication.

2.1 OVERVIEW OF ICT TECHNOLOGIES

ICT does not only require hardware and software but also demands netware. ICT is an
umbrella term that includes any communication device or application, encompassing: radio,
television, cellular phones, computer and network hardware and software, satellite systems
and so on, as well as the various services and applications associated with them, such as
videoconferencing and distance learning. ICTs are often spoken of in a particular context,
such as ICTs in education, mining, conservation or agriculture.

2.1.1 ICT Hardware

These are physical or mechanical equipment including:

• Mainframe, super and minicomputers
• Personal computers
• Videotext terminals
 • Self-service kiosk or terminals
• Mobile devices
• ATMs
• Digital television
• Bank electronic cards.
• Telephone center
• Television
• Radio.

SELF KIOSK OR TERMINAL

It is a standalone desk or an interactive computer terminal that provides information, goods,

or services. In many airports, individuals can purchase tickets, check baggage, and monitor
the status of arriving and departing flights at a specific airline's computerized kiosks.
Several airlines rely on kiosks to ease congestion and prevent long lines at check-in
counters. An airport kiosk may also be a booth where people can purchase food, magazines,
or souvenirs from a salesperson before or after a flight.

Laser Card

It is the hardware that stores digital data signifying the bearer’s fingerprint, voiceprint, or even
the pattern made by capillaries in the retina. It is equipped with a microprocessor that would
check whether this biological data on the card matched that of the card-holder.

Credit Card

It is a small plastic card issued to users as a system of payment to allow the holder to buy
goods and services based on credit. It is different from a debit card in that it does not
withdraw money from the users account after every transaction. The bank lends money to
the consumer to be paid to the merchant. The vendor receives essential credit card
information from the cardholder, the bank issuing the card actually reimburses the vendor.

Debit Card

It is also known as a bank card or cheque card that provides an alternative payment
method to cash when making purchases. The funds are withdrawn directly from either the
bank account or from the remaining balance on the card. In some cases, the cards are
designed exclusively for use on the internet, and so there is no physical card. In many
countries the use of debit cards has become so widespread that their volume of use has
overtaken or entirely replaced the cheque and, in some instances, cash transactions.
Debit cards may also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash and as a check guarantee card.

2.1.2 ICT SOFTWARE

It is a set of instructions, data or programs used to operate computers in executing specific
tasks. It refers to applications, scripts and programs that run on a device. ICT software
include: -
• Database management.
• Front and back-office applications
• Communication software
• Web browsers
• Spreadsheet
• Word processing
• Artificial intelligence
• Data definition languages such as html protocol.

2.1.3 NETWORK AND COMMUNICATION

It is also called netware, dealing with the transmission of signals over a certain distance. The
transmitted signals are in the form of voice, image and voices using telephone, radio and
television to mention few. Examples are Telecommunication and networking.

TELEPHONE, TELEX AND FAX

Telex is a teleprinter which can send and receive text-based messages using the telegraph
service. It was one of the most popular methods for communicating with ships while at sea
and maybe considered as the precursor to email communication.

COMPUTER NETWORKS

Three types of computer networks are usually deployed for tourism and hospitality
management. Intranet, extranet and internet are normally used.

INTRANET

It is geared to intra-organisations communication and function. Tourists or customers hardly

have access to this network. It is a network for authorized persons only. It is estimated that
two thirds of biggest tourism enterprises in the word have adopted intranet technology.

• Staff coordination
• Hotel information system
• Integrated point of sale system
• Food production technology
• Inventory for tourism enterprises.
• Accounting and billing
• Sharing of common resources database for customers
• Orders from headquarters
• Planning
 • Financial planning and control
• Reporting
• Budgeting
• Strategic planning

Extranet
• Keep partners informed about the plan or project
• Complains handling
• Feed and suggestions
• Building loyalty program
• Reservation and confirmations
• Travel document offering
• General information

INTERNET

It is a wide area computer network, involving several tourism and non-tourism enterprises for
sharing and exchanging different information.

• Weather forecasting
• Electronic commerce
• Reservation and confirmation
• Deposits and full statements
• Specific requests and enquiries
• Feedback and complaints
• Loyalty
• Payment and commission
• Advertisement and marketing
• Travel consultation
• Itinerary construction

TELECONFERENCING

It is the holding of a meeting among people distant from one another by means
of telecommunication devices or technologies including phones and computers. It is also
called teleseminar. There are videoconference and audioconference. It encourages
communication between teams by making it easier to stay in contact and organize meetings.
It makes communication between employees easier. It enables attendance of business
meeting hundreds of miles away without leaving your office, reduce travel and
accommodation expenses, reduce travel time requirements, keep in touch with other
branches of your business and reduces travel risks.

MOBILE COMMUNICATION
Mobile communication is important technology off and online. Since Smartphones are
convenient and portable, tourists can save the soft copies of hotel reservation, flight or
railway tickets and other important documents within your mobile. It simplified the formalities
related to travel booking has also reduced. It allows tourists to instantly compare the different
prices of the hotels on holiday reservation. It enables visitors to explore e-destinations.

POINT OF SALE

In short, POS stands for 'Point of Sale', it is a hub to manage everything including
sales, inventory, loyalty and reporting. POS software systems streamline retail
operations by automating the transaction process and tracking important sales data.

ELECTRONIC FUND TRANSFER AT POINT OF SALE

In short, EFTPOS stands for Electronic Funds Transfer Point of Sale, refers to the technology
that allows a retailer to directly debit a customer's bank account by using a debit card. The
debit card, generally the same as an ATM card, is swiped through a reading device just like a
credit card. The customer must enter his or her PIN, generally requested once the amount of
the sale has been entered into the EFTPOS device.

RADIO BROADCASTING

It is a transmission of sound radio waves intended to reach a wide audience. In terrestrial

radio broadcasting the radio waves are broadcast by a land-based radio station, while
in satellite radio the radio waves are broadcast by a satellite in Earth orbit. To receive the
content the listener must have a broadcast radio receiver (radio). Tourism enterprises may
use the radio to market their services and also tourists may use the radio to explore
important information about the destination TBC radio, radio free Africa and Clouds are
among of radio stations in Tanzania which broadcast hugely about domestic tourism.

TELEVISION BROADCASTING

It is the transmission of images and audio either by satellite or over electric lines (or some
other means) to a television set. National Geographic, Discovery and Safari television
stations are some of station which market different destinations in the world.

WEBCASTING

Webcasting is a general term in IT that refers to broadcasting or presenting over the Internet.

Advantages of ICT in Tourism and Hospitality Management

Advantages of ICT in tourism and hospitality are enormous. Its benefits are easy to perceive
and simple to implement.
• Reduces social and financial transaction costs e.g., teleconference and visual tourism.
• Increases customer-supplier interactions
• Reduces marketing costs
• Timely service delivery
• Shorten decision making process
• Enhances product and process innovation
• Reduces transportation costs
• Reduces postage and communication costs
• Reliable and timely information retrieval and transfer
• Maximize interaction with stakeholders.
• Provide timely solutions to consumers
• Geographical expansion
• Facilitate creation and management of alliances
• Incentivization for company loyalty

Disadvantages of ICT in Tourism and Hospitality Management

Just like any other technology, ICT too comes with certain limitations. While most of the
tourism enterprises empathize on putting aside the few disadvantages, few still argue
otherwise and pinpoints the drawbacks of using ICT in tourism and hospitality management.
• Misleading and misguiding information
• Risk of cyber-attacks and hacks
• A risk to the traditional book and handwriting methods
• Handling customers online is difficult
• Misuse of technology
• Not accessible everywhere
• Experience required to handle ICT
• Implementing computers and the internet is expensive
• Some believe that computers can limit imagination