Lesson 1 Etourism Introduction

Introduction into eTourism

TLH 312 eTourism

Session 1

By: Jackson LauBSc in Computer System Engineering (NTU), MBA

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Learning outcomes

• Understanding the wide implications ICT (Information and Communication Technologies) has on the tourism industry

• Lowering prejudges and barriers using ICT within the course

Why?

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Why tourism & IT ?

• Tourism #1 in eCommerce 4,7 Bn. US$ in 2000 (before hard/software & entertainment)

• 94 mill. out of 337 mill. (28 %) travels in Europe were initiated or booked with help of the Internet (Internet European Travel Monitor 2002)

• Both Suppliers (e.g. Hotels, Airlines, Travel Agencies) and Consumers(e.g. Guests, Tourists) require Information Technology

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Question 1

How many visitors arrived in Singapore in 2008?

a) 10.1 millions

b) 9.1 millions

c) 8.1 millions

d) 7.1 millions

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Question 2

Which country is the top visitor to Singapore in 2008?

a) Malaysia

b) Indonesia

c) China

d) Australia

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Question 3

What is the average Occupancy Rate (AOR) in 2008?

a) 91%

b) 81%

c) 71%

d) 61%

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Question 4

What is the Average Room Rate recorded in 2008?

a) $202

b) $120

c) $137

d) $247

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Question 5

The total visitors days were estimated to be:

a) 41.3 millions days

b) 31.3 millions days

c) 21.3 millions days

d) 18.3 millions days

Tourism Performance in 2008

• Singapore posted an estimated S$14.8 billion in tourism receipts in 2008, representing a 4.8% increase over 2007. This set a new record for touris receipts.

• In 2008, Singapore welcomed 10.1 million visitors, registering a decline of 1.6% as compared to 2007.

• Visitor days were estimated to reach 41.3 million days, setting another record and posting an increase of 8.7% in comparison with 2007

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Nos of Visitor Arrivals in Singapore

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Top 10 Visitor Markets Arrival in 2008

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Average Occupany Rate (%)

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Average Room Rate (ARR)

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• 40,362,842 Internet users in the United Kingdom (representing 66.4% of the population) in November 2007.This is an increase of 162.1% compared to 2000. (Internet World Stats, November 2007)

• 58% of adults in Britain had used the Internet in the three months prior to interview (Oct 2003)– 84% for e-mail– 80% to find information about goods or services– 68% to search for information about travel and accommodation– 53% used it to buy or order tickets, goods or services

• Purchases:– 52% travel, accommodation or holidays – 38% books, magazines, e-learning or training material – 36% tickets for events– 34% music or CDs

Internet usage in UK

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Researching and planning travel – UK customers

31%

22%

16%

12%11%

2% 2%

0%

5%

10%

15%

20%

25%

30%

35%

InternetBrochuresTravel AgentGuide BooksFriends/Relatives/…TeletextTV Travel Programme

Source: WTO 2001: Results from e-travel tracker survey from www.scotexchange.net,May 2000. Base all who have used any source of travel information

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Increases in online searches and bookings

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Question 6

Which of the following is the highest expenditure for most tourists when travelling?

a) Accomodation

b) Shopping

c) Foods

d) Transport

Expenditure

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Channel hopping

Researched andbookedResearched

• It commonly denotes a short trip (or short distance) by ferry

• Only 23% initiated online are also booked online

• Major implication for channel strategies and costs– Short-stay pocket guides that include photographs. – Information begins with the ten main sights; other sights are covered in less detail

and graded. – Throughout each guide there are suggested walks and drives. – Selections of hotels, restaurants and shops are detailed in a brief practical directory.

European Travel Monitor 2002

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How IT can help customers

1. Should make tourist life easier

2. The search for information is one of the most important need a tourist does have- A tourist looks for information about destinations, hotels,

attractions, activities in different details - A tourist web site has to satisfy these needs adapted to the special nature of the web site

3. Online Reservation/Booking

4. Help making decisions (in different levels of the decision making process).

5. Provides knowledge and expectations: changes the tourist view.

24Adapted from: Sheldon 1997

(Dis-)Advantages of e-travel distribution

Advantages Disadvantages

Consumers Control over search

Online discount

24h services

Avoidance of travel agent fee

Time needed to search

Subscriptions and online costs

No access to travel agent negotiated discounts

No travel agent expertise and advice

Data/Information overload or overwhelm

Security issues

Travel Agents Can focus on value-added products e.g. video presentation on the web

Loss of commission

Threat of disintermediation

Suppliers

(Hotels, Travel Agencies, Airlines etc)

Avoid payment of commissions

Effective distribution tool

Easy to update information electronically

May loose intermediary relationship

Information and Communication Technologies

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Defining - (ICTs) Information & Communication Technologies

• IT as the enabling mechanism which facilitates the processing and flow of information in an organisation and between organisations, encompassing the information the business creates, uses and stores, as well as the technologies used in physical processing to produce a product or provide a service. (Peppard (1993))

• ICTs cover the entire range of electronic tools, which facilitate the operational and strategic management of organisations by enabling them to manage their information, functions and processes as well as to communicate interactively with their stakeholders for achieving their mission and objectives.

• Information Communication Technologies include a combination of Hardware, Software, telecommunications, netware, groupware and humanware.

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Information & Communication Technologies (ICTs) Terminology

• Hardware: Physical equipment such as mechanical, magnetic, electrical, electronic or optical devices (as opposed to computer programmes or method of use).

• Software: Prewritten detailed instructions that control the operation of a computer system or of an electronic device. Software co-ordinates the work of hardware components in an information system. Software may incorporate standard software such as operating systems or applications, software processes, artificial intelligence and intelligent agents, and user interfaces.

• Telecommunications: The transmission of signals over long distances, including not only data communications but also the transmission of images and voices using radio, television, telephony and other communication technologies.

Source: Adapted from Gupta (1996); O’Brien (1996); Laudon and Laudon (2002); Werthner and Klein (1999); Halsall (1996)

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Information & Communication Technologies (ICTs) Terminology cont.

• Netware: Equipment and software required to develop and support a network or an interconnected system of computers, terminals and communication channels and devices.

• Groupware: communication tools, such as email, voice mail, fax, videoconferencing that foster electronic communication and collaboration among groups.

• “Humanware”: the intellect required for the development, programming, maintenance and operation of technological development. Humanware incorporates the knowledge and expertise pool of the society

Source: Adapted from Gupta (1996); O’Brien (1996); Laudon and Laudon (2002); Werthner and Klein (1999); Halsall (1996)

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Channel Hopping is referred as:

a) Long term holiday

b) Cruise holiday

c) Short term holiday

Question 6 (True or False)

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ICT stands for:

a) Information, Computer and Technology

b) Information, Communication and Technopreneur

c) International Computer and Technology

d) Information, Communication and Technology

Question 7 (True or False)

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Question 8 (True or False)

eTourism is #1 in eCommerce

a) True

b) False

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Question 9

Which is the most popular option when researching and planning travel, most customers depend on:

a) Newspaper

b) Brochures

c) Internet

d) Travel Agents

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Question 10

The following are not a ICT Terminology:

a) Telecommunication

b) Netware

c) Human ware

d) Car

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Contribution of Information & Communication Technologies (ICTs)

1. Enable effective data processing & communication for organisational benefit

2. Offer opportunities & challenges for suppliers in all industries

3. Support development & maintenance of organisational competitiveness and competitive advantage

4. Provide enormous capabilities for consumers

5. Support integrated systems of networked equipment and software

6. ICTs are becoming more affordable & user friendly

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IT Applications

• Information Points (kiosk solution)

• PDA’s

• Mobile applications

• GIS (GPRS)

• Computer(software)

• Email

• Internet (web)

• Virtual reality

• Digital TV

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New ICT Developments

• Ambient Intelligence (http://www.ambientintelligence.org/)

• Interoperability and interconnectivity – Open System advocate interoperability and interconnectivity – industry standard

• Digital Television – clearer picture, sharing of information

• Wireless applications – Cellular Phones - GSM

– Wireless Application Protocol (WAP)

– NTT DoCoMo’s I-mode i.e. Do Communications Over the Mobile Network

– Third generation (3G) mobile technology

– Universal Mobile Telecommunications System (UMTS)

– Bluetooth

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Ambient intelligence is the vision of a technology that will become invisibly embedded in our natural surroundings, present whenever we need it, enabled by simple and effortless interactions, attuned to all our senses, adaptive to users and context-sensitive, and autonomous.

Devices used for ambient intelligence are small, low-power, low weight, and (very importantly) low-cost.

Since wired connections often do not exist, radio methods will play an important role for data transfer.

Ambience Technology

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Wireless Application Protocol-WAPWAP is an open international standard in a wireless communication environment. Its main use is to enable access to the Internet (HTTP) from a mobile phone or PDA.A WAP browser provides a computer based web browser in a smaller view screen. WAP supports activities such as:

• Email by mobile phone • Tracking of stock market prices • Sports/4D/ results • News headlines • Music downloads• Weather Forecast

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Correct!

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 10

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Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 10

Wrong!