14-Ağu-15Travel e221 At tactical level, it includes eCommerce and applies ICTs for maximizing efficiency and effectiveness of the tourism organization.At tactical level, it includes eCommerce and applies ICTs for maximizing efficiency and effectiveness of the tourism organization. Dimitrios BUHALIS - Information Technology for strategic tourism management As ICT and tourism developments are closely interrelated, it is often difficult to identify whether ICTs generate changes in tourism supply and demand, or visa-versa. Usually reality is somewhere in the middle.As ICT and tourism developments are closely interrelated, it is often difficult to identify whether ICTs generate changes in tourism supply and demand, or visa-versa. Usually reality is somewhere in the middle. ICTs provide tools and enable evolution of tourism demand & supply. Consequently, tourism industry increases its requirements from ICTs.ICTs provide tools and enable evolution of tourism demand & supply. Consequently, tourism industry increases its requirements from ICTs. In return, developments in ICTs offer further tools and greater potential which are then matched by the requirements of the industry.In return, developments in ICTs offer further tools and greater potential which are then matched by the requirements of the industry. Impact of ICTs on Tourism At strategic level, eTourism revolutionizes all business processes, entire value chain as well as the strategic relationaships of the organization.At strategic level, eTourism revolutionizes all business processes, entire value chain as well as the strategic relationaships of the organization. eTourism concept includes all bussiness functions ; eCommerce, eMarketing, eFinance, eAccounting, eHRM, eProcurement, eR&D, eProduction, ePlanning, eManagement, etc.eTourism concept includes all bussiness functions ; eCommerce, eMarketing, eFinance, eAccounting, eHRM, eProcurement, eR&D, eProduction, ePlanning, eManagement, etc.

14-Ağu-15Travel e222 CRMs enable organizations to interact with the clientsand continuously change their product to meeting the customer expectations.CRMs enable organizations to interact with the clientsand continuously change their product to meeting the customer expectations. Dimitrios BUHALIS - Information Technology for strategic tourism management ICTs transform the best operational practices and give opportunities to expand in all geographical and operational senses..ICTs transform the best operational practices and give opportunities to expand in all geographical and operational senses.. However, TOURISM is an industry that has long been regarded as “labour” industry, and several practices are still carried out in traditional ways.However, TOURISM is an industry that has long been regarded as “labour” industry, and several practices are still carried out in traditional ways. Many small enterprises (small hotels, travel agencies, etc.) make it even worse and keep ICTs at a minimum.Many small enterprises (small hotels, travel agencies, etc.) make it even worse and keep ICTs at a minimum. Increasingly, ICTs play critical role in CRM (customer relationship management)Increasingly, ICTs play critical role in CRM (customer relationship management) Transformation of best operational practices Managing customer relationships on a continious (365/24) and global way is the key to success for future tourism organizations.Managing customer relationships on a continious (365/24) and global way is the key to success for future tourism organizations. ICTs must also protect the organization from competitive disadvantages, as they now have to compete on a global arena..ICTs must also protect the organization from competitive disadvantages, as they now have to compete on a global arena..

14-Ağu-15Travel e223 CRMs enable organizations to interact with the clientsand continuously change their product to meeting the customer expectations.CRMs enable organizations to interact with the clientsand continuously change their product to meeting the customer expectations. Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism Industry needs to become;Tourism Industry needs to become; –more flexible –more efficient –quicker in responding to customer requests. ICTs provide tourism organizations global presence, as well as formulate partnerships around the world in an efficient and cost-effective manner.ICTs provide tourism organizations global presence, as well as formulate partnerships around the world in an efficient and cost-effective manner. ICTs also reduce operational and communucation costs by;ICTs also reduce operational and communucation costs by; –integrating operational systems –maximizing internal efficiency –decreasing number of people required –reducing phone calls and faxes –enabling customer to have access to all information Managing customer relationships on a continious (365/24) and global way is the key to success for future tourism organizations.Managing customer relationships on a continious (365/24) and global way is the key to success for future tourism organizations. ICTs must also protect the organization from competitive disadvantages, as they now have to compete on a global arena..ICTs must also protect the organization from competitive disadvantages, as they now have to compete on a global arena..

14-Ağu-15Travel e224 Developing new technologies will also bring extra costs:Developing new technologies will also bring extra costs: –advertising at search engines, –interconnectivitiy with other organizations may need high investment, –new procedures may create new jobs Dimitrios BUHALIS - Information Technology for strategic tourism management However, it must be recognized that ICT developments have certain COSTS to the company. Thus, a detailed cost-benefit analysys should be drawn before taking action.However, it must be recognized that ICT developments have certain COSTS to the company. Thus, a detailed cost-benefit analysys should be drawn before taking action. The cost of hardware and software and communucation packages, as well as developing and maintaining online presence is expensive...The cost of hardware and software and communucation packages, as well as developing and maintaining online presence is expensive... Developing interfaces between internal legacy systems and systems of other organizations may require high investment.Developing interfaces between internal legacy systems and systems of other organizations may require high investment. Penetration of ICTs in tourism is generally customer-driven.Penetration of ICTs in tourism is generally customer-driven. Most of the technological innovations are demanded by customers..Most of the technological innovations are demanded by customers..

14-Ağu-15Travel e225 Dimitrios BUHALIS - Information Technology for strategic tourism management Entire range of hardware, software. Examples of information technology applications used in tourism Office automation, reservation, accounting, payroll, procurement management Portable wireless devices Taylor made internal management tools; support systems, etc. Databases Internet / Intranet / Extranet Computer Reservation Systems (CRS) Global Distribution Systems (GDS – eg: Amadeus, Sabre, Galileo) Property Managements Systems for hospitality; FIDELIO Internet based travel intermediaries; Travelocity, Expedia, etc. Kiosks and touch-screen terminals

14-Ağu-15Travel e226 Tourists become demanding, asking for better services at lower rates: getting value for their money. Dimitrios BUHALIS - Information Technology for strategic tourism management Internet increasingly revolutionizes flexibility in both consumer choice and service delivery process. Increasingly customers are becoming much more sophisticated and discerning, as a result of experiencing high levels of service. Thus, sophisticated travellers rely heavily on internet & electronic media. Tourism Dynamic interaction of ICTs and tourism. DEMAND-DRIVEN eTourism

14-Ağu-15Travel e227 Leisure vs. business travel demand Tourists, demand dramatically more information than experienced travellers Experienced travellers however, require greater indepth information as well as being sure that their previous experiences will be addressed. Often bookings are not made by travellers themselves, but rather by their secretaries or travel managers in their organizations. Dimitrios BUHALIS - Information Technology for strategic tourism management Inevitably, frequent business travellers are more familiar with travel arrangements having considerable expertise Business trips are often classifed into Meetings, Incentves, Conferences & Exhibitions (MICE) categories.

14-Ağu-15Travel e228 Business travellers can often compare the prices and offers available online, with the ones offered by their organization. He/she can find better deals than their company travel professionals sometimes.. Thus, business traveller is able to sort out his own travel arrangements, and they often disobey travel policies of their organizations. (playing “amateur travel agency”) Business travel represents the highest proportion of on-line travel bookings, not only because it is often quite straightforward, but also most variables, such as time & places are set. Besides, business travellers are better educated and more independent and familiar with computers. Dimitrios BUHALIS - Information Technology for strategic tourism management Leisure vs. business travel demand

14-Ağu-15Travel e229 Package vs. Independent B2B transactions betwen businesses and travel companies grow at much faster rate than other sectors of internet In Europe, Leisure travel has been much slower to take off. Package Holidays still dominates leisure market. eg: Thomas Cook, Kuoni, TUI, Thomson, STA, Airtours, etc. package holiday makers are usually from lower income classes, less familiar with internet complexity of family holidays create conditions that are difficult sell online commercial interest of tour operator; low profit margins do not let greater IT investments existing distribution channels they have tour operator computer systems, old-fashioned but still usefull.. REASONS INCLUDE: Dimitrios BUHALIS - Information Technology for strategic tourism management

14-Ağu-15Travel e2210 In USA and North America however, leisure market is dominated by independent travellers. That is why internet did much better and much faster.. Package vs. Independent Consequently, fast European counterparts, which are the no-frills airlines; e.g.: Ryanair, EasyJet start selling DIRECT and online. Small & big hotels also started to use Internet efficiently to reach their clients directly! RESULT: The Independent Leisure market grow faster, at the expense of inclusive packages by assisting consumers to substitute some of the functions and value added by tour operators... Dimitrios BUHALIS - Information Technology for strategic tourism management Substituting inclusive package holidays with self- assembled leisure products! Experienced travellers certainly went for it!

14-Ağu-15Travel e2211 FACTS... International Tourism Receipts totaled US$ 733 billion, or US$ 2 billion a day, in 2006According to World Tourism Organization International Tourism Receipts totaled US$ 733 billion, or US$ 2 billion a day, in 2006 Dimitrios BUHALIS - Information Technology for strategic tourism management While eTravel buyers have some common characteristics, there are differences among various sub-groups on how they travel & how they plan to travel! Half of online travel buyers are between the ages and 33% of them married with children... Online Travel market grew 250 % over

14-Ağu-15Travel e million in 2006 areAccording to World Tourism Organization internationals arrivals have been 846 million in 2006 are expected to reach over 1.6 billion by the year FACTS... That is to say, about 20% of world’s population will be travelling. Travel accounts for nearly 30% of online sales. Airline tickets account for almost 90 % of all online travel sales In 2000, 13 billion $ was spent online for airline tickets, hotel bookings and car rentals.

14-Ağu-15Travel e2213 Better Prices %64Better Prices %64 Motivations factors to purchase online Online secure transactions for CC56%Online secure transactions for CC56% Ability for cancellation easily52%Ability for cancellation easily52% Easy to compare49%Easy to compare49% Dimitrios BUHALIS - Information Technology for strategic tourism management Ability to get answers online48%Ability to get answers online48% Better information, better content48%Better information, better content48% Brand loyalty38%Brand loyalty38% Use of local language38%Use of local language38% Loyalty award programs37%Loyalty award programs37% Easiness to order36%Easiness to order36% Familarity with internet purchasing17%Familarity with internet purchasing17%

14-Ağu-15Travel e2214 Obtained Maps & driving directions59% Online trip planning activities in USA Searched places to stay54% Dimitrios BUHALIS - Information Technology for strategic tourism management Searched things to do46% Searched airfares/schedules45% Searched for dining&entertaintment36% Searched for rental cars (prices&avail.)26% Searched for places to go22% Searched for package tours & holidays13%

14-Ağu-15Travel e2215 “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change” -Darwin Web 2.0

14-Ağu-15Travel e2216 Web 2.0