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1 ICT Strategies and Trends in the Tourism Industry Author Telephone Fax Frank Schröder, et al. ISO Software Systeme GmbH Berliner Straße Offenbach a.m. +49(69) (69) Document-Id ISO-Touroperator- ICT-Strategy-Study _final_public Version 1.5 Date Filename ISO-Touroperator-ICT- Strategy-Study _final_public_EN.doc Release- Notes: Author + KM QS + Protocol Name Place, Date Signature Frank Schröder, et al. Nbg., Frank Schröder Nbg., Release Frank Schröder Nbg., qmv-011e/1.5 The transmission, reproduction or usage of a part or the entire document is not permitted without the author s written acknowledgement. All rights reserved. This includes in particular the patent and the copyright for development and design.
2 Table of Contents 0 General Remarks Change History Abbreviations and project specific terminology Preface Summary New ways of production Flexible product offering Just in time production White label package production Retail TV Travel Shops Travel Portals Virtual Tour Operator Definition Differentiation to traditional tour operators Presence in the Market Potential and Tendencies Dynamic Packaging Basic Concept Online-Packaging (Single Production) Pre-Packaging (Serial Production) Booking Workflow Details of Packaging Strategies Resumée Process optimization and customer orientation Overview Integrated Workflow Management Automatic request handling Additional potentials for process optimization...43 Page: 2 of 69
3 4 Business Relationship Management Heterogeneous environment at Point-of-Sale Customer Relationship Management Support at Point-of-Sale Analysis of customers Community Management and Rating Portals for the Operator My Travel Portal Agency Management Multi Media Publishing Multi Channeling New entrants in tourism New players Market Consolidation Specialist and niche market tour operators Business Process Outsourcing Technology and tourism Caching Strategies Overview Common Caching Strategies Example of Cache Implementation of an Internet Vacancy for an Airline Service oriented architectur (SOA) General Overview Impacts for tour operator solutions Summary...69 Page: 3 of 69
4 0 General Remarks 0.1 Change History Version Editor Changed parts Cause for changing Release date 0.9 F. Schröder all Creation F. Schröder Accord. to Review Final Release F. Schröder - Public Version Abbreviations and project specific terminology Term B2B B2C Bit BPO Byte CETS CIO CMS COBOL CRM CRS DB2 DBMS DER DMO DMO FTI Fuzzy GB GDS GIATA GNE Explanation Business-to-Business; Relationship between companies Business-to-Consumer; Communication and relationship between a company and its customers Binary digit; Business Process Outsourcing; eine Maßeinheit für eine Datenmenge von 8 Bit Central European Touristic Solution Touristikmodul; einer der Nachfolger für TOMA in Österreich und der Schweiz Chief Information Officer Content Management System COmmon Business Oriented Language (Programming Language) Customer Relationship Management Computerreservierungssystem Universal Database (from IBM) Datenbank-Managementsystem DEutsche Reisebuero GmbH [Corporate name] Destination Management Organisation Direct Marketing Organization Frosch Touristik GmbH Reiseveranstalter [Corporate name] (englisch: fuzzy = unscharf) ist eine Theorie, eine Verallgemeinerung der zweiwertigen Booleschen Logik, die vor allem für die Darstellung menschlichen (und damit unscharfen) Wissens entwickelt wurde. Gigabyte = 10 9 Byte Global Directory Service Content-Provider für die Touristik Global New Entrants Page: 4 of 69
5 HLX IBE ICT INFX ISO ITS IT JIT KLM LCC LCD OTC PL/SQL PMS POS QS REWE ROI SAP SME SOA STADIS START TB TC TO TOPIX TUI UK USA Hapag-Lloyd Express GmbH (HLX) [Corporate name] Internet-Booking-Engine Information and Communications Technology Format to deliver tourism products offline to 3rd party sales channels ISO Software Systeme GmbH [Corporate name] International Touristik Service - Reiseveranstalter der Rewe Group [Corporate name] Information Technology Just-In-Time Koninklijke Luchtvaart Maatschappij (Royal Dutch Airlines) Low Cost Carrier Liquid Crystal Display Online Travel Corporation PL - Programming Language / Structured Query Language Property Management Systeme Point-of-Sale Qualitätssicherung Revisionsverband der Westkaufgenossenschaften [Corporate name] Return On Investment Systeme, Anwendungen, Produkte (in der Datenverarbeitung) [Corporate name] Small and medium enterprises Service-Oriented-Architecture Format to deliver tourism products offline to 3rd party sales channels Urspr. Studiengesellschaft zur Automatisierung für Reise und Touristik GmbH ; heute Amadeus Germany GmbH [Corporate name] Tera-Byte = Byte Thomas Cook Tour Operator Tour Operating System Unix (Buchungssystem der ISO z.b. für einen Teil der Thomas Cook Veranstalter) Touristik Union International [Corporate name] United Kingdom (Vereinigtes Königreich Großbritannien und Nordirland) United States of America (Vereinigten Staaten von Amerika) Page: 5 of 69
6 1 Preface A word to the interested reader: The information presented here is the result of research in the tourism market and personal impressions and points of view of employees at ISO, some of whom have been working in software development or sales for the tourism industry for over 20 years. * This study is therefore by no means objective but rather deliberately influenced by our expertise and evaluations when dealing with a large number of tourism companies such as Thomas Cook, TUI, Air Canada or Emirates. We are, however, confident that this represents the added value of this work. * We also realise that some of the challenges listed here have already been successfully met by Touroperators, although they still provide valuable information on further strategic IT developments. * We hope you enjoy reading it. * Your ISO team 06 / 2007, Nuremberg, Germany p.p. Frank Schröder Page: 6 of 69
7 2 Summary Tourism and its conventional tour operators are encountering fundamental changes in the market and their partners: The tour operator on its way to a networked company Analysing the past context of a tour operator shows clearly that there were only few external processes and business partner to handle. Essentially the service suppliers and the connection to a CRS sales channel. Pic. 1: The historic context of a tour operator An increasingly informed, demanding customer base with experience in tourism on the one hand and new, technologically innovative competitors on the other are the general conditions under which conventional tour operators must maintain their position in the value added chain in the tourism industry. Page: 7 of 69
8 In anticipation of the results in this study the next picture shows the current (and future) network of relationships that a tour operator has to handle. Pic. 2: The tour operator as a networked company It is evident that the tour operator has to adapt there organisation, workflows and IT services to support the future business processes: better integration for an increasing number of service provider overall supervision and integration of additional sales channels new products assembled through new ways of production additional content complement existing knowledge about destination & products new market players (e.g. ranking portals, online portals) will be integrated Page: 8 of 69
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