THSH2203

Introduction to Tourism and Information Technology

Information Technology and the Tourism Industry
Information technology can be defined as “the application of computers and telecommunications equipment
to store, retrieve, transmit, and manipulate data.” In a business context, information technologies are often
referred to as information systems. Information systems are combinations of hardware, software, and
telecommunications networks that people build and use to collect, create, and distribute valuable data,
typically in organizational settings.
The tourism industry thrives on information. The industry's size alone suggests that it generates large volumes
of information to be processed and communicated. For each person embarking on a trip, scores of messages
and pieces of information must be exchanged, such as itineraries, schedules, payment information,
destination, product information, and passenger information. The tourism industry exhibits many other
unique characteristics, which create a need for IT applications used by travelers, organizations, and tourism
agencies (Beckendorff et al., 2019).
Characteristics of Tourism
While the term product is frequently used in the industry to refer to accommodation, transport, attractions,
and even destinations, tourism can also be described as a type of service. Sometimes, the tourism product is
also referred to as an experience. Some characteristics that differentiate tourism from other products,
services, and experiences, making it so information-intensive, are heterogeneity, intangibility, perishability,
inseparability, and global scope.
• Heterogeneity. Travel products and services cannot be standardized and vary enormously. A typical
trip is complex and consists of many components. To research and plan a trip, travelers must interact
with many private sector organizations and public sector agencies. Coordination and cooperation
between these organizations, agencies, and consumers is necessary to create the heterogenous
experience called a “trip.” This requires efficient, accurate, and timely information to piece together
the multifaceted trip. Information and IT provide crucial links between different industry sectors to
create a seamless travel experience.
• Intangibility. Services cannot be experienced, touched, felt, or sampled before purchase. Potential
consumers are often unable to see, touch, or feel a vacation or a business trip and its components
before purchasing. Instead, they need detailed information about the destination or experience to
substitute for the lack of tangibility. This information can be presented via different media.
Traditionally distributed through brochures, travel and destination information is increasingly
disseminated electronically. Rich and immersive digital content such as websites, pictures, videos, and
virtual reality allow travelers to “sample” the trip before purchasing. The intangible nature of tourism
has brought the IT and tourism industries together to market the product and make it more tangible
creatively. Information also serves to reduce the risk associated with travel. Social media allows trip
planners to learn from other travelers' experiences through forums, blogs, and reviews.
• Perishability. Unsold hotel rooms, aircraft seats, and tours cannot be stored for later sale. If an airline
seat is not sold on a given flight, that particular seat can never be sold again. The seat, or rather the
revenue from it, has “perished.” This is true for almost all products in the tourism industry (e.g.,
accommodation, attractions, tours, and transportation) and is due to the time-sensitive nature of
tourism products. IT can assist with monitoring inventories and dynamically adjusting prices to
maximize load factors, occupancy, and attendance rates. Internet booking engines and smartphone
apps can also assist suppliers in promoting and distributing “last-minute” deals before they “perish.”
• Inseparability. Production occurs alongside consumption. The product or service is being “consumed”
as it is delivered. Unlike goods, which can be purchased and taken home, there is an interaction
between service providers and travelers because the production of the experience happens
simultaneously. For example, a hotel guest “consumes” a hotel stay as it is being “produced” by service
providers.

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• Global Scope. Tourism includes the international movement of people on a mass scale. International
travelers need access to border control information such as visa and passport regulations, customs
regulations, arrival or departure taxes, currency controls, and health regulations such as immunization
requirements. In addition, tourists also require information on diverse topics such as cultural
practices, driving regulations, and language translations. The nature of the trip and the characteristics
of travelers can influence information needs. For example, travelers from France visiting Peru have
higher information needs than travelers from New York to San Francisco.
The Role of ICT in the Tourism Industry
Information and Communications Technology (ICT) is a technology used to handle communication processes
such as telecommunications, broadcast media, intelligent building management systems, audiovisual
processing and transmission systems, and network-based control and monitoring functions. Although ICT is
often considered an extended synonym for information technology (IT), its scope is, in some ways, broader.
ICT is often used to describe the convergence of several technologies and common transmission lines carrying
very diverse data and communication types and formats. ICT plays a significant role in the tourism, travel, and
hospitality industry. Its integration in the industry is essential for the success of tourism enterprises. It allows
an individual to access tourism product information from anywhere at any time. Tourism enterprises can also
reach the targeted customers across the globe with a single click on the keypad after the emergence of mobile
computers and web technologies. Effective and high-speed ICT infrastructure and software applications in the
tourism and hospitality industry are crucial for tourism development. ICTs allow customer management
relations and supply chain management to be combined into a single source that facilitates various operations
- product selection, ordering, fulfillment, tracking, payment, and reporting to be performed with one easy-to-
use tool. The following are some of the roles of ICT in the tourism industry (Bethapudi, 2013):
E-Tourism - Demand and Technology-Driven Revolution
The Internet revolutionizes flexibility in both consumer choice and service delivery processes. Customers have
become more sophisticated and discerning because they have experienced high service levels, and the
standard of living has grown considerably. As a result, tourists have become more demanding, requesting high-
quality products and value for their money and time. This reflects people’s shortage of time. Having been
exposed to several tourism products and destinations, demanding travelers rely heavily on electronic media
to obtain information about destinations and rapidly communicate their needs and wishes to suppliers.
E-Tourism - Impacts on Marketing Mix
ICTs provide unique opportunities for innovative organizations to redesign tourism products to address
individual needs and satisfy consumer wants. ICTs have also become part of the core product, especially for
business travelers who now expect certain facilities to be available during their trip. The internet and the
World Wide Web have revolutionized tourism's promotion and communication functions. ICTs can reduce
commission costs.
E-Airlines
In the 1950s, American Airlines introduced its SABRE Computerized Reservations Systems (CRS). It replaced
manual reservations on display boards where passengers were listed, and travel agencies had to locate the
best routes and fares for their customers manually and make telephone calls for availability, reservation, and
confirmation before issuing a ticket manually. Today, there are different Global Distribution Systems (GDS), a
computerized reservation network used as a single point of access for reserving airline seats, hotel rooms,
rental cars, and other travel-related items.
E-Hospitality
ICTs have penetrated hospitality management quickly, integrating the hotel operations, reshaping the
marketing function, improving total efficiency, providing tools for marketing research and partnership
building, and enhancing customer services, while also providing strategic opportunities. In addition,
consumers increasingly expect ICT facilities in their rooms, such as internet access and data ports that have
become standard for higher hotel categories. The Internet has improved hotel representation and reservation
processes dramatically. Bookings through the web are particularly convenient for customers who frequently

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book at a hotel, providing an efficient and effective communication mechanism. The greater the capacity,
number of departments, transactions, arrivals, departures, and reservations, the greater the need for
technologies to facilitate the processes. Further technology integration in hotel processes can improve
efficiency, facilitate control, reduce personnel, and minimize the response time to customers and
management requests.
E-Tour Operators
Tour operators need constant interaction with their partners, including accommodation and transportation
principals. ICTs are also critical for the distribution of tour operators’ packages. Introducing the Internet,
Intranets, and Extranets as strategic tools have several benefits for tour operators. The coordination and
exchange of timely information are vital because these allow tour operators to coordinate activities, resolve
potential problems, and communicate customer requirements to all principals delivering the tourism product.
Strategically, ICTs play a critical role for tour operators. For example, Kuoni Travel, a travel service provider,
allows consumers to alter their tourism package online and build their itinerary by making it possible to extend
the trip, change accommodation, meal plans, and add value (added services such as car rentals, scuba-driving
lessons). However, it is quite evident that tour operators will need to shift their focus from the information
provision and the reservation mechanism to a strategic role of adding value to the product and the process.
Therefore, tour operators will need to re-assess their core values and identify specific market segments they
can satisfy in the future.
E-Travel Agencies
ICTs have introduced major improvements in the internal organization of travel agencies. By integrating its
back office (e.g., accounting, commission monitoring, and personnel) and front office (customers’ history,
itinerary development, ticketing, and communication with suppliers) functions, travel agencies have achieved
significant synergies, efficiencies, and cost savings. As transactions made in branch offices can automatically
be reported back to the head office, tighter financial control can be achieved. In addition, transactions provide
invaluable marketing research data, which can almost instantly report market movements and aid tactical
decisions. At the individual level, CRM systems support agencies in tracking the activity of their efficiency,
control, and competitiveness. Storing information in a data warehouse can also help them develop proactive
marketing tools to target individual customers with specialized products, thereby increasing the value-added
services offered to each customer and defending themselves against disintermediation. Hence, agencies need
to utilize updated ICT on par with the suppliers' and customers' usage.
E-Destinations
A destination management system (DMS) has been used to integrate the entire tourism supply at a
destination. Its contribution to strategic management and marketing is demonstrated by its ability to
incorporate all stakeholders at destinations and reach the global market. DMS offers innovative information
and sometimes facilitates reservations. Destination Integrated Computerized Information Reservation
Management Systems (DICIRMS) address the entire range of needs and services required by tourism
enterprises and consumers for specific destinations. DICRIMS provides the info structure for communications
and business processes between all stakeholders, including consumers, principals, distributors, and
destination marketing organizations.

References
Benckendorff, P., Xiang, Z., & Sheldon, P. (2019). Tourism information technology (3rd ed.). CABI
Bethapudi, A. (2013). The role of ICT in tourism industry. Journal of Applied Economics and Business, 1, 67-79.
http://www.aebjournal.org/articles/0104/010406.pdf
Techopedia. (2020, August 18). Information and communications technology (ICT). In Techopedia dictionary. Retrieved from January
11, 2022, from https://www.techopedia.com/definition/24152/information-and-communications-technology-ict

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