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23.09.2015Travel e221 TRM 256 Information Systems for Tourism Industry An overview of current developments and major issues in the field of tourism and.

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Presentation on theme: "23.09.2015Travel e221 TRM 256 Information Systems for Tourism Industry An overview of current developments and major issues in the field of tourism and."— Presentation transcript:

1 23.09.2015Travel e221 TRM 256 Information Systems for Tourism Industry An overview of current developments and major issues in the field of tourism and information technology Importance of IT for the various tourism organizations The impact of the Worldwide Web on traditional sales approaches models of technology use up-to-date properties of existing technologies inter-organizational systems in Turkey

2 23.09.2015gurkan ozer2 Effects of the Internet on customer behavior: the new travel buyer In 1997, thousands of travel agents in USA started to disappear... Today..More than 65% of flight tickets in USA are sold online Today, the internet processes a striking 52% of all hotel bookings. 1.7 billion consumers have access to the internet and this number is growing by the day.

3 23.09.2015Travel e223 The Internet is an ideal technology for travel. It offers a vast information resource, immediate convenience and interaction that can provide a very personal experience. As the Internet reaches to every house and business, it will find a huge market of travelers looking for information "Just Beyond their Imagination, and only a click away". Today, Travel accounts for a nearly 35% (almost one third) of all annual online transactions in the world) TURSAB must have 6000 travel agents; last elections in 2009 only 1400 agents voted for elections!... Mobile devices (including tablets) account for over 20% of travel bookings in the USA.

4 23.09.2015Travel e224 Today's challenge to all players in travel field is not in finding passengers, but in "finding profit". World Tourism Organization

5 23.09.2015Travel e225 Basically travel portals started by selling budget airline tickets over GDSs. Their interfaces (API) softwares connect to GDSs such as AMADEUS, SABRE, and make possible to check availability online & real-time.. And therefore to sell.. Next, the giant hotel database being sold inside the GDSs became their hotels section! And the same for rent-a-car and all other providers, even theater tickets! In a very short time, it was clear that those GDS rates of hotels & ren-a-car companies were NOT SELLABLE.. Now, Travel Portals start to establish their own database of hotels, car rental agencies, bus- train tickets, etc. But this time, it is their OWN database, and their OWN PRICES... Meaning, no longer the AGENT commissions...Now they are giant TOUR OPERATORS on the web... Online-Booking Travel Portals

6 23.09.2015Travel e226 Travel Portals : giant travel shopping centers of web.. http://www.travelocity.com http://www.expedia.com http://www.bookinturkey.com http://www.venere.com http://www.elong.net http://www.orbitz.com

7 23.09.2015Travel e227

8 23-Eyl-158 2012 Key Trends 1) Technology compensates for multidimensional supply chain Structured Query Language (SQL) to high- performing NoSQL, such as Google's GFS (Google File System) systems, etc.Structured Query Language (SQL) to high- performing NoSQL, such as Google's GFS (Google File System) systems, etc. Therefore, new web comes out with amazingly fast responses to search engine queries.Therefore, new web comes out with amazingly fast responses to search engine queries. This search capability can even mix travel modes (air & rail, fly & drive, etc.).This search capability can even mix travel modes (air & rail, fly & drive, etc.). example: Google's new ITA software made air search went from 40 seconds/query to almost real-time reponse!

9 23-Eyl-159 2012 Key Trends

10 10 2) Social Media is center of marketing strategy; Recent surveys show almost 98% of all companies believe that social media marketing will benefit their businesses.. And they don’t calculate a measurable ROI (return on investment) to be early. 2012 Key Trends - Facebook has 750 million active users - Facebook users spend 700 billion minutes online - Almost 1/2 of Facebook users login everyday Social indexing targeted content is determined not only by user's preferences, but also the "likes" of the user and and his/her friends!

11 Web 2.0 Platform for participation, connecting people and enterprises More sociable approach to creating and delivering content Emphasizes open and transparent communication and possibilities to use and recycle open source information - Over 62% of people read online reviews. And 70% believe them, even those by anonymous posters!

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13 23-Eyl-15Travel e2213 Tourism & ICTs Thus, tourism & ICTs increasingly provide strategic opportunities for powerful tools of economic growth, redistribution of wealth and development of equity around the globe. However they also instigate new challenges and threads for players that are unable to cope with the developments and are left behind technologically Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism & ICT are 2 key catalysts for enabling dynamic, innovative and knowledgeable communities and organizations to communicate and interact with outside world in order to import expenditures & benefit.

14 23-Eyl-15Travel e2214 Question: Whether technological developments drive business strategies or visa versa? Answer: Business Strategy & mission of organization should lead their processes and technological developments. Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism However, it is also evident that unless management appreciates their technological strengths and weaknesses, they will be unable to implement these strategies. It is only a matter of time before technological progress provides trouble-free solutions at justifiable costs. Technologies have been surpassing their initial expectations to become commonplace.

15 23-Eyl-15Travel e2215 Tourism Determines the competitiveness of an organization. Etourism takes advantage of Intranets for reorganizing internal processes; extranets for developing transactions with strategic partners, and internet for interacting with all the stakeholders. Dimitrios BUHALIS - Information Technology for strategic tourism management Etourism is the digitization of all process and value chains in the tourism, travel, hospitality and catering industries that enable organizations to maximize their efficiency & effectiveness.

16 23-Eyl-15Travel e2216 The key is to recognize where in the process these opportunities exist and to apply the appropriate level of technology. Dimitrios BUHALIS - Information Technology for strategic tourism management Tourism Time & Speed are the key factors of future business. Only organizations that create real value for their customers and partners will survive.. The greatest problem when introducing new technology is that you can apply improved technology to a bad process. On the other hand, the greatest gain and return are made when both process and the applied technology are optimized.

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18 23-Eyl-1518 ONLINE DESTINATIONS

19 23-Eyl-1519 ONLINE DESTINATIONS

20 23-Eyl-15Travel e2220 ONLINE DESTINATIONS

21 User generated content (UGC) is the King. Only 14% of users trust marketing messages, whereas 78% trust recommendations of other consumers. This highlights something many online marketers have known for a while: user generated content can be very beneficial. blog comments, product reviews, video reviews, creative competitions, galleries, etcç

22 Virtualtourist allows people to create and share blog-like pages Of their destinations, including tips and photos. Tips can be added to your own "Trip Planner", which allows you to create a personalized travel guide.

23 With more than 15 million reviews and opinions and nearly 30 million unique visitors a month, TripAdvisor claims to be the largest travel community on the web.

24 Online consumer review websites provide more information to consumers than was previously thought to be cost-effective. By relying on user-generated content, Yelp is able to review more products than traditional media such as newspaper reviews. More than 70 percent of Seattle restaurants are on Yelp.


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