WORLD TOURISM ORGANIZATION. E-tourism. Electronic Commerc

1
E-tourism Electronic Commerce Strategies for
Development Promoting an International
Dialogue Tunis, 19-21 June
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Access
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The On-line Market is there
Forecast for European markets
300
250
216
244
212
237
230
223
200
208
200
192
150
100

• - 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

50
14.7
12.8
10.9
6.77
8.45
4.73
0
2.64
0.227
0.811
1998
1999
2000
2001
2002
2003
2004
2005
2006
Market M(000)
Internet salesM(000)
Market share
7
6
5
4
3
2
1
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
4

• Distribution costs are a growing area of
  potential savings
• 20 billion per annum 4 of overall costs and
  growing.

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The Electronic Marketplace in tourism
Source Buhalis D., eTourism
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New Business Models

• Tiscover
• GTREX

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Three online firms now control over 55 percent of
all online travel bookings
Source Peter OConnor, IMHI, 2003
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• 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

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As it was in the beginning.
Source Peter OConnor, IMHI, 2003
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Is now..
Source Peter OConnor, IMHI, 2003
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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

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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

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Examples of information technology applications
used in tourism

• 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)

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Examples of information technology applications
used in tourism

• 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

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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

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The small e-business

• The ICT illiteracy of the entrepreneurs
• Lack of marketing and technology understanding
• The cost of ICTs 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 CRSs to deal with each property
• The unwillingness of SMTEs to lose control over
  their property

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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