Operational management and distribution in e-tourism

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Chapter 7

• Operational management and distribution in
  e-tourism

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Chapter Objectives

• Tourism distribution mechanisms
• Functions and benefits through the tourism
  distribution channel
• How ICT supported eTourism management operation?
• ICT operation in Airline (eAirline)
• ICT operation in Tourism Service (eTour Operators
  and eTravel Agencies)
• ICT operation in Hotel (eHospitality)

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Tourism distribution mechanisms

• Distribution becomes one of the most critical
  factors for the competitiveness of tourism
  organizations and destinations.
• Setting appropriate distribution channels
  effectively allows principals to build bridges
  with consumers, address their needs and provide
  mechanisms for purchasing tourism products.

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• Distribution channel is any organized and
  serviced system, created or utilized to provide
  convenient points of sale and access to consumer.
• Most distribution channels therefore provide
  information for prospective tourists, bundle
  tourism products together, and also establish
  mechanisms that enable consumers to make, confirm
  and pay for reservations.

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Discussion

• Discuss on impact of ITC development to some
  local distributor (tour agency and tour
  operator). How they react to this change?

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Functions and benefits through the tourism
distribution channel

• Facilitation of access to often remote tourism
  products for bother bookings and purchasing.
• Provision of information by using discussions,
  leaflets, maps, brochures, video, CDs.
• Consumers guidance/consultation for particular
  packages or products.

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• Undertake pre and post experience marketing
  research on consumers needs and experiences.
• Assemble tourism products from different
  providers according to tourists expectations.
• Facilitating selling process of tourism products,
  by reserving and issuing travel documents.

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• Issue of travel documentation, i.e. ticketing,
  voucher ect.
• Utilize a clearing system where each channel
  member receives payments for their services.
• Arranging details and ancillary services, such as
  insurance, visas, currency.
• Complaint handling for both customers and
  industry.

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Internet-supported eTourism management

• Tourism organizations use ICTs to communicate
  with all stakeholders and to manage and control
  their inventory.
• They use the Internet for eCommerce (selling
  products directly to their consumers.)

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• Internet presence is part of the promotion mix
  for both tourism enterprises and destinations.
• Developing interactive facilities enables
  consumers to offer feedback to enterprises and to
  communicate dynamically.
• Employment and HRM is also empowered through the
  Internet as increasingly tourism organizations
  rely on the internet for advertising vacancies
  recruitment. (let check www.CamHr.com)

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Operation and Distribute System

• ICT operation in Airline (eAirline)
• ICT operation in Tourism Service (eTour Operators
  and eTravel Agencies)
• ICT operation in Hotel (eHospitality)

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From CRSs to GDSs
eAirline

• CRSs on one hand aimed at organizing airlines
  internally, by offering them a tool to manage
  their inventory, and on the other aimed to allow
  distributors and partners to access information
  about availability and prices.

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• In the mid 1980s, CRSs developed into much more
  comprehensive global distribution system (GDSs),
  offering a wide range of tourism products and
  providing the backbone mechanism for
  communication between principals and travel
  agencies.

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• GDSs provide one-stop customer service at both
  the point of departure and the destination.
• GDSs have effectively become travel supermarkets
  offering information and reservation capabilities
  for the entire range of travel products,
  including accommodation, car rentals, schedules
  for non-air transportation.

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Airlines types and ICT utilization

• There are several different kinds of airlines,
  which can be characterized mainly by type,
  ownership and routes.
• Different types of airlines use ICTs differently
  and have a different emphasis on their online
  presence.

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• Although most of them take advantages of the
  basic ICT modules
• Scheduled carries
• No-fills or low-cost carriers
• Charter airlines

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Critical issues for the future success of airlines

• Technology will assist airlines to integrate
  their operational and to control and coordinate
  all their business and management functions.
• The eAirlines futures will be determined by
  their ability to use ICT for achieving their
  vision and mission.

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• Airlines around the world face a wide range of
  challenges and ICTs provide several tools to help
  them to address these challenges.
• Safety and security have emerged as being the
  most critical challenges for airlines.

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• Frequent travellers demand speedier check-in
  processes and a higher degree of flexibility and
  control over their own travel arrangements.
• More passengers prefer self-service check-in
  rather than queuing up in overcrowded terminals.
• case of AirAsia, Jetstar Airline

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• Providing self-service through kiosks and
  wireless technologies can mean operational and
  productivity gains, improved customer
  satisfaction and reduced costs.
• With wireless solutions, airlines can offer their
  passengers the ability to purchase through a
  handheld device virtually anywhere, at any time.

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eTour Operators and eTravel Agencies
Tour operator functions and types

• Tour operators undertake a wide range of
  activities in order to negotiate with suppliers
  as well as to prepare and sell their packages to
  consumers.
• They normally pre-reserve and pre-purchase a
  number of travel services and set up a package at
  a single price.

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• Packages are standardized and repetitive and they
  offer transport and accommodation, while
  sometimes they include catering, entertainment,
  other facilities and service.
• Tour operating is a process of combining aircraft
  seats and beds in hotels in a manner that will
  make the purchase price attractive to potential
  holidaymakers.

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The use of videotext as an early leisure travel
network

• In the early 1980s, tour operators realized that
  they had to capitalize on ICTs and use more
  effective distribution methods.
• They wanted to enhance their productivity improve
  their holiday-capability management, reduce the
  labor cost of telephone operators and provide a
  better service to both agencies and consumers.

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eTravel Agencies

• Holloway (1998) suggests that the main role of
  agents is to provide a convenient location for
  the purchase of travel.
• At the locations they act as booking agents for
  holidays and travel, as well as a source of
  information and advice on travel services.

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• Agencies carry limited financial risk, as they do
  not purchase tourism products in advance. They
  only reserve, confirm, purchase, issue travel
  documents, i.e. tickets and vouchers, on customer
  request.

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• ICTs provide a wide range of tools for travel
  agencies, by providing the mechanism for
  information exchange and tourism product
  distribution.
• ICTs enable agencies to build complicated travel
  itineraries in minutes, while providing
  up-to-date schedules, prices and availability
  data.
• Travel agencies use ICTs to access tourism
  suppliers database, to verify availability and
  rates, and to confirm reservations.

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Accommodation establishment types and ICT
utilization
eHospitality

• There are a great range of hotel types and
  categories, resulting in a wide range of ICT
  applications being used.
• Understanding the variables characterizing a
  hotel property can therefore help us to
  appreciate their ICT requirements.

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Variables characterizing accommodation
establishments

• Factors
• Location urban/rural/seaside
• Size small/medium/large properties
• Ownership and affiliation family-run/Corp/franchi
  sing/consortia/state-owned
• Price exclusive/expensive/affordable/inexpensive

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• Activities sports/all-inclusive/clubs/farmhouses
• Services hotels/BB/rooms to let/self-serviced
  apartments
• Reasons of visiting for travellers
  leisure/business/conference/seminars/incentives
• Reasons of visiting for locals functions/special
  occasion
• Proximity to transportation terminals
  airport/port/railway/roadside
• Primary market youth hotel/university and school
  accommodation/hospices

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Lessons and issues for the future of eHospitality

• Customer care and recognition become central for
  the successful hospitality organization of the
  future.
• Customer demand more and are increasingly
  difficult to satisfy.

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• To please them, hotels need to appreciate
  customer motivations, circumstances and even mood
  and should work harder and differently every
  time.
• Stemming from the Internet are wireless devices
  and bluetooth technology, all of which promise to
  be the next big thing in hotel operations.

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• The ability to recognize guests and have access
  to guest data via biometrics would help to
  improve the levels of service.
• Hotel rooms will increasingly offer more ICT
  capabilities to provide in-room entertainment as
  well as working facilities, emulating the home
  away from home and office away from office
  principles.

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Show

• Property management system
• Guesthouse (Room Management System)
• Tour operator management system