The Role of ICT in Tourism and Related Changes in Skills Tourism Value Net Revenue Management by Riina Glinskihh Hotelzon International Ltd Tartu University Pärnu College

Changes in Distribution and Sales Rapid development of information and communication technology has changed the way information is exchanged among tourism industry players. Companies are using intranets to exchange and manage information effectively within their organization. Extranets are used to streamline communication with business partners. The Internet is revolutionising the distribution of tourism information and sales.

Changes in Distribution and Sales There are many new intermediaries such as internet portals specializing in selling tourism services and products or providing tourism products as additional service to portal visitors. Distribution channels traditionally used by tour operators or travel agencies are now available for customers via internet. Additionally, tourism suppliers have established direct channels to the clients.

Changes in Distribution and Sales Furthermore, distribution co-operation is expanding across different tourism industry sectors: Transportation companies are providing the opportunity to book accommodation Destination management organizations are developing internet portals in order to distribute tourism information as well as tourism products and services. As a result, traditional tourism value chains have evolved into the Tourism Value Net.

Traditional Value Chains

Emerging Value Net

Skills Needed for Successful Navigation in Tourism Value Net How to identify opportunities for cross-promotion and sales How to evaluate electronic distribution channels How to choose the right electronic distribution channels How to manage sales across different distribution channels

Skills Needed for Successful Navigation in Tourism Value Net Tourism professionals need to understand the Value Net Tourism professionals need to know who the main players are Empirical knowledge and research results should evolve into industry knowledge and should also be available for educational institutions

Pärnu College of Tartu University Related Courses Basic ICT courses Software training (MyFidelio, Amadeus etc) Practical training in industry Information technology and tourism course for third year students since spring 2000

Networking between Industry and Educational Institutions Networking between tourism education institutions, information technology education institutions and tourism industry players (hotels, tour operators, travel agencies, new intermediaries and technology providers) is essential to develop a skill base for successful navigation in the Value Net.

From Data to Knowledge Information is a strategic resource for tourism companies The tourism industry generates a lot of information ICT provides a new means to analyse this information As a result, new tools are created for efficient sales and inventory management

Revenue Management Revenue management concepts and tools have been designed to improve and support bottom-line oriented decision-making. Revenue management has the following main objectives: Maximize yield/REVPAU or minimize lost revenue per available product unit in view of average cost per available product unit Control availability of price products by customer revenue potential and forecasted segment mix Control daily availability of price products lower than full price based on unsold inventory, time left to sell and segment total demand.

Skills Needed for Effective Revenue Management Marketing Statistics Finance Management Customer Service E-Business Networking Human Resource Management

Pärnu College of Tartu University Related Courses Revenue management course for third year students since 2001 Includes both theory and practice Students accomplish practical Revenue Management exercises by using Worldlink, a hotel sales and inventory management tool developed by Hotelzon International.