The Role of ICT in Tourism and Related Changes in Skills Tourism Value Net Revenue Management

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The Role of ICT in Tourism and Related Changes in
SkillsTourism Value NetRevenue Management

• by Riina Glinskihh
• Hotelzon International Ltd
• Tartu University Pärnu College

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Changes in Distribution and Sales

• Rapid development of information and
  communication technology has changed the way
  information is exchanged among tourism industry
  players.
• Companies are using intranets to exchange and
  manage information effectively within their
  organization.
• Extranets are used to streamline communication
  with business partners.
• The Internet is revolutionising the distribution
  of tourism information and sales.

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Changes in Distribution and Sales

• There are many new intermediaries such as
  internet portals specializing in selling tourism
  services and products or providing tourism
  products as additional service to portal
  visitors.
• Distribution channels traditionally used by tour
  operators or travel agencies are now available
  for customers via internet.
• Additionally, tourism suppliers have established
  direct channels to the clients.

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Changes in Distribution and Sales

• Furthermore, distribution co-operation is
  expanding across different tourism industry
  sectors
• Transportation companies are providing the
  opportunity to book accommodation
• Destination management organizations are
  developing internet portals in order to
  distribute tourism information as well as tourism
  products and services.
• As a result, traditional tourism value chains
  have evolved into the Tourism Value Net.

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Traditional Value Chains
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Emerging Value Net
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Skills Needed for Successful Navigation in
Tourism Value Net

• How to identify opportunities for cross-promotion
  and sales
• How to evaluate electronic distribution channels
• How to choose the right electronic distribution
  channels
• How to manage sales across different distribution
  channels

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Skills Needed for Successful Navigation in
Tourism Value Net

• Tourism professionals need to understand the
  Value Net
• Tourism professionals need to know who the main
  players are
• Empirical knowledge and research results should
  evolve into industry knowledge and should also be
  available for educational institutions

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Pärnu College of Tartu University Related Courses

• Basic ICT courses
• Software training (MyFidelio, Amadeus etc)
• Practical training in industry
• Information technology and tourism course for
  third year students since spring 2000

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Networking between Industry and Educational
Institutions

• Networking between tourism education
  institutions, information technology education
  institutions and tourism industry players
  (hotels, tour operators, travel agencies, new
  intermediaries and technology providers) is
  essential to develop a skill base for successful
  navigation in the Value Net.

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From Data to Knowledge

• Information is a strategic resource for tourism
  companies
• The tourism industry generates a lot of
  information
• ICT provides a new means to analyse this
  information
• As a result, new tools are created for efficient
  sales and inventory management

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Revenue Management

• Revenue management concepts and tools have been
  designed to improve and support bottom-line
  oriented decision-making.
• Revenue management has the following main
  objectives
• Maximize yield/REVPAU or minimize lost revenue
  per available product unit in view of average
  cost per available product unit
• Control availability of price products by
  customer revenue potential and forecasted segment
  mix
• Control daily availability of price products
  lower than full price based on unsold inventory,
  time left to sell and segment total demand.

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Skills Needed for Effective Revenue Management

• Marketing
• Statistics
• Finance Management
• Customer Service
• E-Business
• Networking
• Human Resource Management

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Pärnu College of Tartu University Related Courses

• Revenue management course for third year students
  since 2001
• Includes both theory and practice
• Students accomplish practical Revenue Management
  exercises by using Worldlink, a hotel sales and
  inventory management tool developed by Hotelzon
  International.