I Information and nformation and C Communication ommunication T Technologies echnologies in in

IInformation andnformation and

CCommunicationommunication

TTechnologiesechnologies

inin

TourismTourism

2 © copyright IFITTICT in Tourism

AgendaAgenda

Mobile services & ambient intelligence3.6

Social Media & Web 2.03.0

Online auctions in tourism3.7

Dynamic packaging3.5

Recommender systems 3.4

Software agents3.3

Interoperability and semantic web3.2

Website optimisation3.1

Trends and future applications3.

Tourism management and eTourism2.5

Destination organisations and eTourism2.4

Intermediaries and eTourism2.3

Tourism suppliers and eTourism2.2

Tourism stakeholders and interfaces2.1

ICT usage in tourism – overview and case studies2.

eTourism – ICT usage in tourism1.2

Tourism as information business1.1

ICT and tourism – introduction1.


1.2 1.2 eTourism eTourism –– ICT usage in tourismICT usage in tourism

�� Definition and history of eTourismDefinition and history of eTourism

�� Facts & trendsFacts & trends

�� Reasons, advantages and implications of Reasons, advantages and implications of

ICT usageICT usage

�� ECCA ECCA –– eTourism Competence eTourism Competence CenterCenter

AustriaAustria






ICT usageICT usage

�� ECCA ECCA –– eTourism Competence eTourism Competence CenterCenter

AustriaAustria


IntroductionIntroduction -- ICTICT

�� ICT ICT -- Information and Communication TechnologiesInformation and Communication Technologies

�� Umbrella term for technological developments for theUmbrella term for technological developments for the

�� ProductionProduction, , analysisanalysis, , storagestorage, , searchsearch, , distributiondistribution and and useuse

of informationof information

�� ICT includes a combination of ICT includes a combination of

�� hardwarehardware

�� softwaresoftware

�� telecommunicationstelecommunications

�� netwarenetware

�� groupware groupware

�� humanwarehumanware

�� ICT enables effective ICT enables effective data processingdata processing & & communicationcommunicationfor for organisational benefitorganisational benefit

�� opportunities & challenges for opportunities & challenges for supplierssuppliers in all industriesin all industries

�� Provide enormous capabilities for Provide enormous capabilities for consumersconsumers



Development Development phasesphases of ICTof ICT

Time period Technology Scope User

Early electronic computers

Calculation Single user

Mainframes, databases

Information processinginside a company

Time sharing (multi user)

Host systems, PC,networks, commu-

nication protocols

Communication between

companies

Multi user

1945-1960

1960-1975

1975-1990

since 1990Distributed systems,multimedia, wan,

worldwide networks

Communicationbetweencompanies

Distributed

computing



Network infrastructure evolutionNetwork infrastructure evolution

CHARACTERISTICS:

- Circuit-based and protocol-dependent

- Hierarchical

- Centralized computing

HostHost--based networksbased networks

APPLICATIONS:

- Critical mission

- Constant use

- Low bandwidth

- Quality constraints

CHARACTERISTICS:

- Router-based and protocol-independent

- Peer-to-peer

- Distributed computing

ClientClient--server networksserver networks

APPLICATIONS:

- Department applications

- Sporadic use

- Medium bandwidth

- Less quality constraints

CHARACTERISTICS:

- Switch-based and protocol-independent

- Full connectivity

- Collaborative Computing

Information networksInformation networks

APPLICATIONS:

- Collaborative applications

- Constant use

- High bandwidth

- Low quality constraints

(Meleis 1996)


Definition of eTourismDefinition of eTourism

ICT-InformationCommunicationTechnologies

-Information systems-Telecommunications

Tourism-Transport-Travel-Hospitality

-Leisure

Business- Management- Marketing

- Finance

eTourism


Potential of ICT in TourismPotential of ICT in Tourism

�� CharacteristicsCharacteristics of tourismof tourism

�� Intangibility, Intangibility, syncronismsyncronism, , nonnon--storability,storability,complexitycomplexity of tourism of tourism servicesservices

�� High High informationinformation needneed

�� High ICT potentialHigh ICT potential

�� ImprovementImprovement of of availableavailable informationinformation aboutabout

�� OfferedOffered servicesservices

�� ConsumerConsumer and his and his needsneeds

�� Elimination of Elimination of informationinformation asymmetriesasymmetries and and theirtheir

consequencesconsequences ((adverseadverse selectionselection, , moralmoral hazardhazard, etc.), etc.)



(Schertler 1997)


HistoryHistory of eTourismof eTourism

19491949 FoundationFoundation of SITA:of SITA:

ImplementationImplementation of a of a networknetwork of 11 of 11 airlinesairlines

60ies60ies ImplementationImplementation of CRS (Computer Reservation of CRS (Computer Reservation

Systems) and GDS (Global Distribution Systems)Systems) and GDS (Global Distribution Systems)

e.ge.g. . AmadeusAmadeus, , SabreSabre

90ies90ies DMS (Destination Management Systems)DMS (Destination Management Systems)

e.ge.g. . TiscoverTiscover, , FeratelFeratel

MidMid 90ies90ies Internet & WWWInternet & WWW

•• WebsitesWebsites

•• Online Online platformsplatforms


15 15 YearsYears of Webof Web--StoryStory

� The Internet - Global accessible and transparent infrastructure

� System structure: Most nodes few links, but small and significant number show

very many (i.e. hubs, authorities)

� 130 million distinct web sites

� 40 billion web pages

� 1 trillion links

� In 2007 160 Exa-bytes (1018) of information

� 25% originally created � 75% replicated

� 95% unstructured, distributed, little control � query

� Internet Users

� 2000 400m � 2006 > 1Bn � 2008 > 1.5 Bn � 2011 > 2.2 Bn (i.e. 1/3 of global citizens)

� Changes in society

� Complex interactions in parallel to ongoing globalization

� Service industry and information work

� Virtual network externality (value due to information and user integration in

service network)


StylizedStylized Facts on Facts on eTourismeTourism

� Information Technology and Tourism - 2 world´s fastest growing industries

� Travel & Holidays = most expensive regularly purchased item

� Internet Tourism

� 22.5% of EU eCommerce Sector � 61 Bil. € 2008 (Marcussen 2009)

� 96% search online (i.e. 10 sites before booking), 62% book online (Phocuswright 2009)

� Concentration: Top 1% of tourism websites join 53% of users

� 3 players dominate 93% of online travel US market (65% EU)

� InterActiveCo Travel Portals: Expedia, Hotels.com, Tripadvisor

� Cendant GDS: Galileo, Gullivers, Avis, Orbitz.com, Octopustravel.com

� Sabre CRS: Travelocity.com, Lastminute.com

EU online trave market by

type of service

56%

16%

16%

10% 2%

Airline

Hotels

Packages

Train

Car Marcussen 2008

TUI 2008


eTourism: Facts & eTourism: Facts & trendstrends

�� TheThe traveltravel online online marketmarket



0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

eProcurementand eMarketing/ Sales

ICT infrastructure & internal processes

Construction

Hospitals

ICT M.

Food

Footwear

Shipbuilding

Tourism

Telecom

CE

Paper

The Scoreboard consists of 16 component indicators, grouped in four categories. The underlying survey data have

been weighted by employment, thus emphasizing the activity of larger firms. The size of the bubbles is indicative for

the relative size of a sector (by employment). Data for hospitals are not 100% comparable, as for some business

indicators proxies had to be used.

e-Business Scoreboard 2006 (for sectors, EU-10)

(eBusiness Watch 2006)

eBusinesseBusiness activitiesactivities per per sectorsector



eBusinesseBusiness activitiesactivities per per companycompany sizesize

The component indicators for size-bands are based on aggregated data from the 10 sectors studied in

2006 (in 10 EU countries).

0

20

40

60

80

100

0 20 40 60 80 100

eProcurementand eMarketing/ Sales

ICT infrastructure & internal processes

Micro (1-9)

Small (10-49)

Medium (50-249)

Large (250+)

e-Business Scoreboard 2006 (for size-bands, EU-10)




ICT ICT impactimpact on on businessbusiness activitiesactivities

33

40

24

20

37

25

34

30

29

18

22

27

25

24

0 10 20 30 40 50 60 70

Management

Accounting

R&D

Production

Marketing

Logistics

Customer support

Expect high impact Expect medium impact

Where ICT will have an impact in the future?

Read: "Firms representing …% of employment in the sectors surveyed expect that

ICT will have a high / medium impact on management / accounting / … in the future."

Base: EU-10, 10 sectors. N = 7237.




eBusinesseBusiness activitiesactivities in tourismin tourism

A

B

C

D

Max Average Tourism

1,5

0

-1,5

e-Business dimensions (sub-indices):

A = Use and access to ICT networks

B = e-Integrated business processes

C = Supply-side e-business activity

D = e-Marketing and Sales

Scale:

Max = maximum e-business intensity in one of

the 10 sectors benchmarked

Average = average e-business intensity in the

10 sectors benchmarked

Orange diamond = relative e-business intensity

in the tourism industry

based on employment-weighted data(emphasises situation in larger firms)

based on data in % of firms(emphasises situation in small firms)

A

B

C

D

1,7

0

-1,7




27

11

13

15

18

16

11

8

42

24

3

8

19

12

11

7

9

8

5

6

12

4

0 15 30 45 60 75

Total

Food

Footwear

Pulp & paper

ICT manuf.

C. electronics

Shipbuilding

Construction

Tourism

Telecoms

Hospitals

Accept orders from customers online at least 5%

Accept orders from customers online <5%

AcceptanceAcceptance of online of online ordersorders




18

14

8

19

24

20

12

8

28

37

8

0 10 20 30 40 50

Total

Food

Footwear

Pulp & paper

ICT manuf.

C. electronics

Shipbuilding

Construction

Tourism

Telecoms

Hospitals

Specific ICT solutions to supportmarketing or sales processes

Marketing Marketing oror salessales processesprocesses




BuyingBuying oror sellingselling online in tourismonline in tourism




DirectDirect salessales vs. vs. intermediariesintermediaries



Media of customer Media of customer requestsrequests in tourismin tourism

(Kohl & Partner)



Online Online turnoverturnover byby typetype of tourism of tourism serviceservice



eBusinesseBusiness in in AustrianAustrian tourismtourism




�� eBusinesseBusiness vs. vs. eHospitalityeHospitality in Austriain Austria

�� Turnover:Turnover:

�� 0,9 % of total turnover transacted online in Austria 0,9 % of total turnover transacted online in Austria

(ca. 2,8 Bill. (ca. 2,8 Bill. €€))

�� 7,5 % of total turnover in hotel industry induced by 7,5 % of total turnover in hotel industry induced by

internet bookingsinternet bookings

�� Website: Website:

�� 71 % of all companies online 71 % of all companies online

�� 94 % of hotel industry online94 % of hotel industry online

�� Internet sales:Internet sales:

�� 9 % of all companies make business online9 % of all companies make business online

�� 41 % of the hotel industry is doing business online41 % of the hotel industry is doing business online

(Statistik Austria)






ICT usageICT usage


SpecificSpecific rolerole of ICT in tourismof ICT in tourism

�� ICT played an outstanding role for development of ICT played an outstanding role for development of

modern tourismmodern tourism

�� Computer Reservation SystemsComputer Reservation Systems (CRS)(CRS)

�� Developed and operated by airlines to cope withDeveloped and operated by airlines to cope with

�� increasing volume increasing volume

�� logistic and operational problemslogistic and operational problems

�� systems with systems with severalseveral tenten--thousandthousand participating participating

companiescompanies

�� Similar applications could only be found in the Similar applications could only be found in the

financial sectorfinancial sector

�� eTourism is one of the most important sectors in eTourism is one of the most important sectors in

eBusinesseBusiness

�� Acceptance of Acceptance of online ordersonline orders

�� MarketingMarketing and and salessales processesprocesses


Advantages of ICT Advantages of ICT usageusage in tourismin tourism

�� Optimal Optimal productproduct informationinformation for customerfor customer

�� Multimedia, global Multimedia, global searchsearch enginesengines, recommendation, recommendation

�� ReductionReduction of of efforteffort for for informationinformation gatheringgathering and and

traveltravel planningplanning ((transactiontransaction costscosts))

�� ReductionReduction of of productproduct complexitycomplexity

�� Information Information aboutabout customer for customer for suppliersupplier

�� Customer Customer profilesprofiles and and preferencespreferences ((eCRMeCRM))

�� Customer Customer behaviourbehaviour and and needsneeds (web (web miningmining))

�� FlexibilityFlexibility of tourism of tourism offersoffers

�� CustomisationCustomisation of of productsproducts ((prosumingprosuming))

�� YieldYield Management & dynamic pricingManagement & dynamic pricing

�� Dynamic Dynamic packagingpackaging


ReductionReduction of of efforteffort for for traveltravel planningplanning byby ICTICT

ConventionalConventional processprocess

(Werthner/Klein 1999)


ReductionReduction of of efforteffort for for traveltravel planningplanning byby ICTICT

ICTICT--supportedsupported processprocess



ReductionReduction of of transactiontransaction costscosts

�� Transaction costsTransaction costs

�� Types of transaction costsTypes of transaction costs�� InformationInformation costscosts

�� NegotiationNegotiation costscosts

�� Costs of Costs of supervisionsupervision

�� OrganizationOrganization costscosts�� friction costsfriction costs

�� Transaction costs decrease through ICTTransaction costs decrease through ICT�� ExEx--ante costs towards zeroante costs towards zero

�� Many customers can be served without need to increase Many customers can be served without need to increase information and negotiation capacityinformation and negotiation capacity

�� Intelligent Intelligent searchsearch & & recommenderrecommender systemssystems

�� Dynamic packagingDynamic packaging

�� Support of supervision by Support of supervision by online service recoveryonline service recovery(feedback)(feedback)

ex-ante

ex-post


OnlineOnline--suitabilitysuitability of tourism of tourism productsproducts



ImplicationsImplications of ICT of ICT usageusage



TheThe electronicelectronic tourism tourism marketmarket


Single value chains

integrated in greater

value system �

coordination need of

“long value chain”


EE--TourismTourism Research Research -- An An InterdisciplinaryInterdisciplinary ViewView

Fuchs, M. & Höpken, W. (2011): E-Business Horizons in the Tourism Industry – Challenges for Research and Practice. In: Sidali, K.,

Spiller, A. & Schulze, B. (eds.), Food, Agriculture and Tourisms: Interdisciplinary Perspectives, Springer, Berlin, 140-160.


An An InterdisciplinaryInterdisciplinary ViewView

�� Frictionless market scenario through Internet Frictionless market scenario through Internet ((AkerlofAkerlof 1970)1970)

� Ubiquitous access to equilibria mechanisms (brand, web2.0, screening)

� Consumer Culture Theory and SD-Logic

� ICTS put empowered user in middle of co-creation process to achieve performance

� Interest driven web-behaviour (i.e. need-recognition � going online)

� Business engineering � well-being engineering (i.e. utilitarian/ratio AND hedonic/entertainment)

� Website neutralizes trade-off between no. of achievable persons and info richness

� e.g. accuracy, timeliness, customization level, etc.

� Tourism benefits from ICT due to confidence characteristics of tourism product

� Complex service experience co-created by SMES & tourist best presented by new media

�� SupplySupply: : CoordCoord., differentiation & promotion (visualization), distr., reduce r., differentiation & promotion (visualization), distr., reduce risks in coisks in co--productionproduction

�� DemandDemand: : Planning & individualization, Planning & individualization, configconfig., interaction, risk avoidance in co., interaction, risk avoidance in co--productionproduction

� Information intensiveness in tourism

� Huge data amounts and info-processing efforts

Truly equivalent…


�� StrategicStrategic goalsgoals associatedassociated withwith ICTSICTS

�� 1995 1995 -- 1998 1998 Establish online presencEstablish online presencee

�� 1999 1999 -- 2003 2003 Acquire new customersAcquire new customers (e.g. personalized information)(e.g. personalized information)

�� 2003 2003 -- 2006 2006 Retention of customers Retention of customers (e.g. (e.g. eCRMeCRM))

�� 2007 2007 -- ? ? Customer integration (i.e. customer focussed Customer integration (i.e. customer focussed �� customer driven, web 2.0)customer driven, web 2.0)

�� Advantages from Advantages from quickly adopted ICTquickly adopted ICT

� Optimal service info/selling

� Complexity & effort reduction

� Flexibile co-creation

� Adaptation & customization

� Dynamic sourcing & pricing (YM)

� Business intelligence

� Behaviour and needs (Data/Web mining)

� Profiles and preferences (eCRM)

� eTourism research: Acceptance, use, adoption and impact of ICTS in Tourism

An An InterdisciplinaryInterdisciplinary ViewView

ICT ICT provocedprovoced changechange

in in tourismtourism

Market Market structurestructure

ConcentrationConcentration

SpecialisationSpecialisation

DisDis--/re/re--intermediationintermediation

New New distributiondistribution channelschannels

Value Value addingadding servicesservices

New New eBusinesseBusiness modelsmodels

Market Market structurestructure

ConcentrationConcentration

SpecialisationSpecialisation

DisDis--/re/re--intermediationintermediation

New New distributiondistribution channelschannels

Value Value addingadding servicesservices

New New eBusinesseBusiness modelsmodels

Customer Customer behaviourbehaviour

Empowerment Empowerment

Lowered loyalty Lowered loyalty

Adopt tasks as prerequisite for Adopt tasks as prerequisite for

customizationcustomization

Customer care across Customer care across

numerous service providers numerous service providers

Customer Customer behaviourbehaviour

Empowerment Empowerment

Lowered loyalty Lowered loyalty

Adopt tasks as prerequisite for Adopt tasks as prerequisite for

customizationcustomization

Customer care across Customer care across

numerous service providers numerous service providers

SkillSkill demanddemand

educationeducation systemsystem

trainingtraining systemsystem

Learning methodsLearning methods

SkillSkill demanddemand

educationeducation systemsystem

trainingtraining systemsystem

Learning methodsLearning methods

PerformancePerformance

EfficiencyEfficiency

CostsCosts

Sales Sales

Innovation rateInnovation rate

ManagerialManagerial performanceperformance

Service Service QualityQuality (CS)(CS)

PerformancePerformance

EfficiencyEfficiency

CostsCosts

Sales Sales

Innovation rateInnovation rate

ManagerialManagerial performanceperformance

Service Service QualityQuality (CS)(CS)


Future Future challengeschallenges for for eTourismeTourism ResearchResearch

� ICT biggest force affecting Travel and Tourism

� Web 2.0 empowers tourist (Tourist = Operator) AND tourism supplier/destination

� Ultimate travel portal: Unlimited online medium offering broad spectrum of information

generated within business network and user community

� Interdisciplinary eTourism Research: Understanding interrelation between…

� Technology

� The Web (web-structure mining = topology, linkphobia, Baggio 2009), intelligent business and end user applications

Management Science

Information Science

Computer Science

Business Model

Business Process

Technical Process

Information System

Service

E-Service

Web Service

� Content

� Self-reinforcing propagation

� Automated Sentiment Detection, Web-content/text mining

� Users

� Attitudes and Behavior as co-producer

� Web-usage mining, trust, privacy, TAM, e-Branding, cooperation & adoption behavior

Servce Oriented Arcitecture (Werthner 2008)

I Information and nformation and C Communication ommunication T Technologies echnologies in in

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