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.
3 © copyright IFITTICT in Tourism
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
4 © copyright IFITTICT in Tourism
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
5 © copyright IFITTICT in Tourism
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
6 © copyright IFITTICT in Tourism
IntroductionIntroduction -- ICTICT
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
7 © copyright IFITTICT in Tourism
IntroductionIntroduction -- ICTICT
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)
8 © copyright IFITTICT in Tourism
Definition of eTourismDefinition of eTourism
ICT-InformationCommunicationTechnologies
-Information systems-Telecommunications
Tourism-Transport-Travel-Hospitality
-Leisure
Business- Management- Marketing
- Finance
eTourism
9 © copyright IFITTICT in Tourism
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.)
10 © copyright IFITTICT in Tourism
Potential of ICT in TourismPotential of ICT in Tourism
(Schertler 1997)
12 © copyright IFITTICT in Tourism
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
13 © copyright IFITTICT in Tourism
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)
14 © copyright IFITTICT in Tourism
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
15 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
�� TheThe traveltravel online online marketmarket
16 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
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
17 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
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)
(eBusiness Watch 2006)
18 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
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.
(eBusiness Watch 2006)
19 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
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
(eBusiness Watch 2006)
20 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
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
(eBusiness Watch 2006)
21 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
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
(eBusiness Watch 2006)
22 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
BuyingBuying oror sellingselling online in tourismonline in tourism
(eBusiness Watch 2006)
23 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
DirectDirect salessales vs. vs. intermediariesintermediaries
24 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
Media of customer Media of customer requestsrequests in tourismin tourism
(Kohl & Partner)
25 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
Online Online turnoverturnover byby typetype of tourism of tourism serviceservice
26 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
eBusinesseBusiness in in AustrianAustrian tourismtourism
(eBusiness Watch 2006)
27 © copyright IFITTICT in Tourism
eTourism: Facts & eTourism: Facts & trendstrends
�� 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)
28 © copyright IFITTICT in Tourism
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
29 © copyright IFITTICT in Tourism
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
30 © copyright IFITTICT in Tourism
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
31 © copyright IFITTICT in Tourism
ReductionReduction of of efforteffort for for traveltravel planningplanning byby ICTICT
ConventionalConventional processprocess
(Werthner/Klein 1999)
32 © copyright IFITTICT in Tourism
ReductionReduction of of efforteffort for for traveltravel planningplanning byby ICTICT
ICTICT--supportedsupported processprocess
(Werthner/Klein 1999)
33 © copyright IFITTICT in Tourism
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
34 © copyright IFITTICT in Tourism
OnlineOnline--suitabilitysuitability of tourism of tourism productsproducts
(Werthner/Klein 1999)
35 © copyright IFITTICT in Tourism
ImplicationsImplications of ICT of ICT usageusage
(Werthner/Klein 1999)
36 © copyright IFITTICT in Tourism
TheThe electronicelectronic tourism tourism marketmarket
(Werthner/Klein 1999)
Single value chains
integrated in greater
value system �
coordination need of
“long value chain”
37 © copyright IFITTICT in Tourism
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.
38 © copyright IFITTICT in Tourism
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…
39 © copyright IFITTICT in Tourism
�� 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)
40 © copyright IFITTICT in Tourism
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)
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