Information and Communication Technology in A Tourism Destination Management Pertemuan Matakuliah: G1174/Tourism Management and Planning Tahun: 2007

Bina Nusantara Topics ICT operation in managing a destination

Bina Nusantara Objectives 1. To demonstrate the utilization of ICT in a tourism destination 2. To explain the concept of e-Tourism 3. To find out the effect of ICT in managing a tourism destination

Bina Nusantara ICT Today Cell phone applications (SMS) Digital cameras Internet Wireless (WiFi and WiMAN) VOIP GPS & GIS Convergence (data, voice, media) Digital radio Applications on demand Source: USAID (2006)

Bina Nusantara The evolution of ICTs toward business EraYearsObjectives Data processing1960sTo improve operational efficiency by automation information based process Management Information System (MIS) 1970sTo increase management effectiveness by satisfying the organizational information requirements Strategic Information System (SIS) 1980sTo improve competitiveness by changing the nature or conduct of business – Introduction of ICT Network1990sTo alter competitiveness in the global marketplace and reduce the significance of location and size in the service delivery process

Bina Nusantara ICT and Tourism Information and communication technology (ICT) can be defined as the use of digital tools for business functions and process. The whole system of ICTs is being rapidly diffused throughout the tourism industry and no player will escape ICTs’ impacts. ICTs include the entire range of electronic tools which facilitate the operational and strategic management of organization by enabling them to manage their information, functions and processes as well as to communicate interactively with their stakeholders for achieving the objectives. ICTs offer various functionalities such as online reservation and booking systems with the aim of meeting their customers´ expectations.

Bina Nusantara Benefit of ICT on Tourism Increase their internal efficiency and manage their capacity and yields better Interact effectively with consumers and personalize the product Revolutionize tourism intermediation and increase the point of sale Empower tourists to communicate with other tourists Support efficient cooperation between partners in the system value Enhance the operational and geographic scope by offering strategic tools for global expansion

Bina Nusantara ICT + Tourism = e-Tourism Over the last few years, information and communication technologies (ICT) have had a growing impact on tourism promotion, marketing and sales. With the advent of new forms of ICT, a novel type of tourism, e- tourism, has emerged that is radically transforming the international tourism industry. More and more people now prefer to search for information on tourism destinations and offers on the Internet.

Bina Nusantara The e-tourism marketplace It should contain: General information about the country (maps, visas, climate, etc.) Specific local information about tourism services such as special- interest tours, a list of tourist spots and craft centers, national or regional parks, markets, hotels, restaurants, travel agencies, airlines and transport, practical information about excursions, guides, interpreters, doctors and car hire agencies Information about local crafts (relevant organizations and associations, crafts workers, products, etc.), and Links to the web sites of the various partnerships and associates and to existing information on the Web.

Bina Nusantara Concept of e-Tourism eTourism Source: UNTAD (2004)

Bina Nusantara E-tourism and Tourists Enable travelers to access reliable and accurate information Allow tourists to undertake online reservation in a short time, low cost and convenience Provide access to transparent and easily comparable information on destination, holiday packages, travel, lodging and leisure services Get immediate confirmation and speedy travel documents Enable visitors to book at the ‘last minute’ Empower consumers to research their travel requirements

Bina Nusantara ICTs in Tourism Supply Source: USAID (2006)

Bina Nusantara Tourism Site Selection, Management, Monitoring Source: USAID (2006)

Bina Nusantara ICTs and Marketing Swiss full service travel site Tourism in France Source: USAID (2006) & UNTAD (2004)

Bina Nusantara Customer Relation Management through ICTs Source: UNTAD (2004)

Bina Nusantara ICTs and Destination Destination Management System (DMS) are strategic ICT tools that can help operators and tourism enterprises in developing countries integrate, promote and distribute tourism products and services. The two primary functions of a destination management system are to: – Provide consumers with comprehensive and accurate information for the preparation of their vacations, and with booking facilities for tourism services and products, – Provide tourism enterprises with the means to be better integrated into the tourism supply chain by organizing and promoting personalized and enriched tourism experiences.

Bina Nusantara Objectives of DMS To efficiently integrate and facilitate interaction among all stakeholders To optimize the relationships with targeted groups To collect, manage and distribute information on tourism products to a larger number of consumers and tourism distributors throughout the world To develop an integrated tourism product and service offer To provide up-to-date and attractive tourism information and products according to a country's interests To allow consumers to make a reservation easily and receive a confirmation quickly To reduce marketing costs compared with traditional channels (such as printed material) To collect information on customers and to design marketing strategies for different market segments.

Bina Nusantara ICTs and Airlines Online reservation Electronic ticketing (e-Ticket) Yield management Electronic auction for last minute available seats Disintermediation and redesign of agency commission scheme Productivity of the new electronic distribution media

Bina Nusantara ICTs and Hotel Property management system (PMS) coordinate front office, sales, planning and operational functions by administrating reservations and managing the hotel inventory. PMSs integrate the back and front of the house management and improve general administration function.

Bina Nusantara ICTs and Tour Operators Offering customised package Updating e-brochure regularly Saving commission and reducing cost of developing, printing, storing, distributing brochure Making travel booking online Consumers information search

Bina Nusantara Conclusion ICTs represent a paradigm shift in the tourism industry ICTs provide innovative strategic tools for destinations to improve the impact of tourism by disseminating information and coordinating their offering