Tourism Information Technology

Pierre Benckendorff, Zheng Xiang, Pauline Sheldon

• Publisher: CAB International
• Year: 2019
• ISBN:
  9781786393449
• Edition: 3
• Topic: Business
• Subtopic: Hospitality, Travel & Tourism Industry
• Index: Business

The third edition of Tourism Information Technology provides a contemporary update on the complexities of using information technology in the tourism industry. It examines IT applications in all sectors including airlines, travel intermediaries, accommodation, food service, destinations, attractions, events and entertainment. Fully updated throughout and organised around the stages of the visitor journey, the book reviews how tourists are using technologies to support decision-making before their trip, during their travels and at the destination. The book: - Provides comprehensive and up to date coverage of all key topics in tourism information technologies.- Covers new areas, such as augmented and virtual reality, robotics, smart destinations, disruptive innovation and the collaborative economy, crowd-sourcing for sustainability, online reputation management and big data.- Incorporates a wealth of pedagogic features to aid student learning, including key models and concepts, research and industry insights, case studies, key terms, discussion questions, and links to useful websites.Accompanied by online resources, this book provides a comprehensive and learning-focused text for students of tourism and related subjects.

chapter 1




Introduction to Tourism and Information Technology

LEARNING OBJECTIVES

After studying this chapter you should be able to:

• define key terms and concepts in information technology;

• describe the evolution of information technology;

• recognize the types of information technologies relevant to tourism;

• explain the synergies between the travel industry and information technology; and

• evaluate the strategic applications of information technology in tourism organizations and destinations.

INTRODUCTION

The world is experiencing some of the most dramatic social changes in its history. Borders are dissolving and countries, societies, people and organizations are connecting more and in different ways than they ever have in the past. Increases in international trade agreements, global business activity, telecommunication networks and personal and educational travel are uniting the planet like never before. These linkages are being forged and supported essentially by two of the largest and fastest-growing industries in the world today – tourism and information technology (IT).

Tourism connects people today in ways that would never have been possible decades ago. It also contributes significantly to many national and regional economies. In 2016, with 1.24 billion international arrivals generating US$1220 billion, it was responsible for one in ten jobs worldwide (United Nations World Tourism Organization, 2017). Tourism was responsible for 9.8% of the global GDP and 6.1% of the world’s export of services in 2015 (United Nations World Tourism Organization, 2016). Tourism is also a powerful force in arenas other than economics; its transformative power on cultures and societies, its effect on environments and ecosystems, and its contribution to climate change – as well as the climate’s effect on it – are important issues that must be addressed. The increased connectivity that tourism creates between and within societies is one of the most important phenomena affecting society. This is enhanced greatly by information technologies.

The IT industry is equally, if not more, significant and powerful. We live in a digital world of laptop computers, smartphones, digital cameras, tablets, Cloud-enabled digital platforms, and the Internet of Things (IoT). Information technology can be defined as “the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data” (Daintith, 2012). 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 useful data, typically in organizational settings” (Valacich and Schneider, 2014, p. 19).

Worldwide IT spending for 2017 is projected to be US$3.5 trillion – three times the size of the tourism industry (Loten, 2017). The rapid pace of development in IT is creating millions of electronic connections around the globe, connecting people, the business community, industries and regional and international communities in new ways, and is substantially changing the way that enterprises, customers and governments operate. It is estimated that in 2017 there were 8.4 billion connected devices in the world, increasing to 20.4 billion by 2020 – far exceeding the global population (van der Meulen, 2017). The travel and tourism industry is a heavy user of IT, and some of the largest telecommunication networks spanning the globe carry travel information. IT, therefore, provides the information backbone that facilitates tourism (Dutta and Bilbao-Osorio, 2012).

This book is about these two industries and the synergies between them. It describes how the different sectors of the tourism industry are being affected by IT and how they apply IT to their operations. It also explores in depth the tourist’s use of IT at all stages of the travel experience (Loten, 2017). This chapter sets a foundation by examining the nature of the IT industry, concepts used, its history and evolution and the factors affecting IT adoption and innovation in tourism. It also presents characteristics of tourism that cause it to be so information-intensive. Various typologies of tourism information are also discussed. Its synergy with information technology is explained, and ways in which the two industries interlock and support each other are discussed. Issues relating to the strategic management of information and IT within an organization are also discussed.

TOURISM: AN INFORMATION-INTENSIVE INDUSTRY

The tourism industry thrives on information. The size of the industry 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: itineraries, schedules, payment information, destination and product information and passenger information; but the tourism industry exhibits many other unique characteristics, which create a need for the IT applications used by travelers, organizations and tourism agencies. This section will first present a model of tourism information flows and then discuss the characteristics that make tourism so information-intensive.

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. Pine and Gilmore (1999) argue that products are manufactured, services are delivered and experiences are staged. Furthermore, experiences are usually co-created through the interactions of travelers, tourism organizations and settings (Prahalad and Ramaswamy, 2004). Typically, most governments consider tourism to be part of the service sector rather than the manufacturing sector. These terms are often used interchangeably, but it is important to understand some of the characteristics of services and experiences and how they differ from manufactured goods.

Some of the characteristics that differentiate tourism from other products, services and experiences, and which make it so information-intensive, are its heterogeneity, its intangibility, its perishability and its inseparability. The global scope of the industry and the fact that tourism is a service industry also contribute to its information intensity (Table 1.1). Each of these characteristics will be discussed below.

Table 1.1. Characteristics of tourism services and experiences.

Characteristic	Description
Heterogeneity	Travel products and services cannot be standardized and vary enormously
Intangibility	Services cannot be experienced, touched, felt or sampled before purchase
Perishability	Unsold hotel rooms, aircraft seats and tours cannot be stored for later sale
Inseparability	Production occurs alongside consumption. The product or service is being “consumed” as it is delivered
Global	Tourism includes the international movement of people on a mass scale

A typical trip is complex and consists of many component parts, and therefore by nature is heterogeneous. The US Standard Industrial Classification System has identified at least 35 industrial components that serve the traveler (Gee et al., 1994). To research and plan a trip, travelers must interact with many private sector organizations and public sector agencies. Coordination and cooperation between each of these organizations, agencies and the consumer are necessary to create the heterogeneous experience called a “trip”. This requires efficient, accurate and timely information flows to piece together the multifaceted trip. Information and IT provide crucial links between different industry sectors to create a seamless travel experience. If these links break down or are too slow, information is not transmitted in a timely manner and the industry does not function optimally. The more complex and international the trip, the more information is required.

Intangibility is the second characteristic that makes tourism so information-intensive. Potential consumers are often unable to see, touch or feel a vacation or a business trip and its components before they purchase it. Instead, they need detailed information about the destination or experience to substitute for the lack of tangibility. This information can be presented via many different media. Travel and destination information, which was traditionally distributed in the form of brochures, is increasingly in electronic form. Rich and immersive digital content such as websites, pictures, videos and virtual reality allow travellers to “sample” the trip before making a purchase. The intangible nature of tourism has brought the IT and tourism industries together to creatively market the product and make it more tangible. Information also serves to reduce the risk associated with travel. Social media allows trip planners to learn from the experiences of other travelers through forums, blogs and reviews. Despite these benefits, it is important to note that some travelers still prefer the challenge of a trip they know little about before departing.

The third factor that makes tourism information-intensive is its perishability. 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, 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. Many computer reservation systems (CRSs) in tourism use revenue management systems to assist with the challenges created by product perishability. Internet booking engines and smartphone apps can also assist suppliers in the promotion and distribution of “last-minute” deals before they “perish”.

Tourism consumption is inseparable from the production of the experience. 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. Information plays an increasingly important role in ensuring that this co-production and co-creation of tourism experiences is efficient and of a high quality (Schertler, 1994). One of the greatest challenges facing managers is how to increase the productivity of service and knowledge workers (Drucker, 1990). In the past there has often been resistance to...