WORLD TOURISM ORGANIZATION E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, 19-21 June.

WORLD TOURISM ORGANIZATION

E-tourism

Electronic Commerce Strategies for Development: Promoting an International DialogueTunis, 19-21 June


Access


The On-line Market is thereForecast for European markets

192 200 208212 216

223 230 237 244

0.227 0.811 2.64 4.73 6.77 8.45 10.9 12.8 14.70

50

100

150

200

250

300

1998 1999 2000 2001 2002 2003 2004 2005 2006

Market M€(000) Internet salesM€(000)

Market share

0%

1%

2%

3%

4%

5%

6%

7%

1998 1999 2000 2001 2002 2003 2004 2005 2006

- 64% of Internet sales are direct sales.

- UK sales represent 34% of Western Eurepean sales.

- Airlines are 60% of total sales and half of this is from low-cost airlines


Distribution costs are a growing area of potential savings

$ 20 billion per annum: 4% of overall costs and growing.


The Electronic Marketplace in tourism –

eBusiness Business Consumer Government

Business B2B

Extranets between

Hoteliers and tour

operators

B2C

eCommerce applications where consumers purchase air tickets

B2G

Business interacting with government departments, e.g. hotel developer requires planning permission

Consumer C2B

Consumers registering

their preferences on airline or hotel loyalty/executive clubs

C2C

Consumers informing other consumers over good or bad practice (e.g. www.untied.com)

C2G

Consumers applying for visas, requesting maps and local destination information

Government G2B

Government informing hotels about food safety legislation or taxation

G2C

Government informing consumers on regulations, visa or vaccination requirements

G2G

Governments interacting in tourism policy matters or asking technical assistance through organizations such as the World Tourism Organization

Source: Buhalis D., “eTourism”


New Business Models

• Tiscover

• GTREX


Three online firms now control over 55 percent of all online travel bookings

0102030405060708090

100

Online Travel

Online Agents

Suppliers

Source: Peter O’Connor, IMHI, 2003


WTO activities in E-tourism:

•Publications:•Marketing Tourism Destinations Online, 1999•E-Business for Tourism, 2001

•Seminars

•Capacity building: •Courses for National Tourism officials of WTO member States

•Partnership with IFITT•Bench-marking scheme for Destination Web Sites•Harmonise



Hotel

Hotel

Hotel

DMS

Switch

GDS Travel Agents

TICs

Cu

stom

er

Hotel

3rd Party CRS

CRS

Traditional IntermediariesElectronic Intermediaries

As it was in the beginning….



Is now…..

CRS

Hotel

Hotel

Hotel

Hotel

Web Intermediary

GDS Travel Agent Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Customer

Rep Company

DMS

Switch

DMS Web site

Rep Company Web site

TIC

GDS-based Web site

Switch Co Web Site

Hotel Web site

CRS Web site

Hotel

Customer

Customer

Customer



Critical tourism and hospitality functions supported by ICTs

• Front office: reservations, check-in, payments• Back office: accounting, payroll, human resources

management, marketing• Customer entertainment and service• Communication with consumers and partners• Marketing research• Reaction and management of unexpected events• Flexible and dynamic pricing through yield management• Differentiation and personalization of products• Monitoring performance indicators and building feedback

mechanisms• Control of business processes and personnel


Examples of information technology applications used in tourism

• Entire range of hardware, software and netware• Stand alone computers and network devices• Office automation, reservation, accounting, payroll and

procurement management applications• Portable/wireless communication devices• Internal management tools such as management

support systems, decision support systems and management information systems

• Tailor-made internal management applications• Databases and knowledge management systems



• Internet/intranets/extranets • Networks with partners for regular transactions (EDI or

extranets)• Networking and open distribution of products through the

Internet• Computer reservation systems (CRSs)• Global distribution systems (GDSs) (e.g. Galileo, SABRE,

Amadeus, Worldspan)• Switch applications for hospitality organizations (e.g.

THISCO and WIZCOM)



• Destination management systems (DMSs)• Internet-based travel intermediaries (e.g. Expedia.com,

Travelocity.com, Preview Travel, Priceline.com, etc.)• Mobile/WAP-based reservation systems• Traditional distribution technologies supporting automated

systems (e.g. videotext)• Calling centres• Interactive digital television (IDTV)• CD-ROMs• Kiosks and touch-screen terminals


Internal systems and intranets

• Improving capacity management and operations efficiency

• Facilitating central room inventory control• Providing last room availability information• Offering yield management capability• Providing better database access for management

purposes• Supporting extensive marketing, sales and operational

reports• Facilitating marketing research and planning• Providing travel agency tracking and commission

payment


The small e-business

• The ICT illiteracy of the entrepreneurs• Lack of marketing and technology understanding• The cost of ICT’s being perceived as prohibitive for

entrepreneurs• Inability to control the equipment• Perceived dependence on trained staff• Lack of standardization and, often, professionalism• Seasonality and limited period of operations in resorts• Insufficient training and established organizational practices• Small size multiplies the administration required by CRS’s to

deal with each property• The unwillingness of SMTE’s to lose control over their property


“Tourism is a very information intensive activity. In few other areas of activity are the generation, gathering, processing, application and communication of information as important for day-to-day operations as they are for the travel and tourism industry”

Poon 1993

WORLD TOURISM ORGANIZATION E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, 19-21 June.

Documents

marketing tourism destinations

tourism policy matters

personnel slide

wizcom slide

etourism slide

management support systems

knowledge management

capacity management