Information and Communication Technologies in. Tourism

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1 Information and Communication Technologies in Tourism

2 Management Information Systems in Tourism etourism and Management Management Information Systems (MISs) Case study TourMIS Case study T-MONA 2 ICT in Tourism

3 Role and Importance of ICT in Tourism ICT usage has an impact on Market structures of the tourism industry Competitive position of market players Optimal ICT usage is prerequisite for competitiveness Optimal ICT usage requires intellectual and organisational change Tourism organisations strongly depend on the strategically right employment of ICT 3 ICT in Tourism

4 Indicators for ICT usage Are up-to-date information critical for purchasing or booking? Is the choice of products huge and complex? Is a price/service comparison with concurrence products important? Does the customer tend to fast and spontaneous purchasing decisions? Is a precise and prompt booking confirmation important? Is a dynamic price determination possible or necessary? Can the product attractiveness be increased by additional information? Can the customer be contacted directly or only via an intermediary? Exists a wide geographical despersal between suppliers and customers? 4 ICT in Tourism

5 Success Factors in the Information Age Information Time Individualisation Strategy Tourism as information business Structure Culture Fast reaction Optimisation of business processes Communication Cooperation Trust Willingness to change Teamwork Customer orientation (Schertler 1994) 5 ICT in Tourism

6 ICT Support Individualisation ICT systems support product differentiation Detailed product information Flexible & dynamic product creation Reduction of transaction costs Process optimisation and efficiency increasement Disintermediation Concentration and economies of scale Information networks by cooperation Virtual organisation as information network Economies of scale and flexibility Time and fast reaction Provision of up-to-date information Reduction of necessary time for search and booking process 6 ICT in Tourism

7 Competitive changes by ICT Bargaining power of suppliers ICT enables direct selling (disintermediation) Bargaining power of customers ICT increases market transparency (price comparison) ICT reduces customer loyality Competitive rivalry between existing organisations ICT usage as central success factor Threat of new entrants ICT reduces market entrance barriers ICT supports vertical integration Threat of substitute products ICT replaces services of intermediaries (e.g. tour operators or travel agencies) 7 ICT in Tourism

8 ebusiness Models & Strategic ICT Use ebusiness Models in Tourism E-Tailing (i.e. single hotel website or commission based portal supports customer query, e.g. Infomediary(i.e. buyers & sellers gain info and do business, e.g. Adverstising (i.e. search engines generate traffic and permit customization, e.g. Brokerage(i.e. market makers) Marketplace exchange (e.g. Demand collection (e.g. Auctions (e.g. 8 ICT in Tourism

9 ebusiness Models & Strategic ICT Use Strategic ICT Use Value proposition(tourist s benefit & role) Management & re-engineering(cost structure & sources of revenue, resources and assets) Market Value Chain(linkages to online portals & e-commerce operators, n/r/l PPP) emarketing (interaktive meta-market offer experience customization) ICT investments(r&d, training, adequacy,tam) Consumers e.g. DMS, online plattform New markets new players e.g. online auction Fixed network structure Inter-firm collaboration networks e.g. SBN Suppliers 9 ICT in Tourism

10 ebusiness Adoption and Impact E-Business Intensity- Readiness-Impact Framework (Fuchs et al. 2009) Online survey(jan-march 2008) managers of 3,600 hotels 723 completed questionnaires (20%) equally distributed over whole of Austria Are Austria s hotel managers unable to generate or to recognize efficiency gains from ICT? e-business Application Adoption Share Usage Intensity (Mean) Distribution via Online Platforms (OPLA) 96% 1.85 Online Procurement (PROC) 88% Marketing (EMM) 87% 2.73 Property Management System (PMS) 78% 2.37 Costing & Accounting System (CAS) 78% 3.14 Websites with booking functionality (WBOOK) 68% 2.99 ecustomer Relationship Management (CRM) 67% 3.08 Intranet (INTR) 50% 4.00 Yield Management System (YMS) 42% 4.71 Enterprise Resource Planning System (ERP) 41% 4.86 Personal Information System (PIS) 40% 4.76 Supplier relationships 4,00 Marketing costs 3,70 Procurement costs 3,70 Labour productivity 3,60 Costs of internal processes 3,50 Quality of relationship to partners 3,30 Tourist satisfaction 3,10 Quality of relationship to tourists 2,80 Increased booking rate 2,40 New guests 1,80 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 10 ICT in Tourism

11 Management Information Systems in Tourism etourism and Management Management Information Systems (MISs) Case Study TourMIS Case Study T-MONA 11 ICT in Tourism

12 Management Information Systems 12 ICT in Tourism

13 Management Information Systems MIS (Management information system) Collection, provision and preparation of relevant information for the management emarket analysis esatisfaction analysis ecompetition analysis emarket potential analysis ebenchmarking analysis DSS (Decision support system) Direct decision support for the management Recommendation of optimal choice of action Calculation of optimal problem solution Simulation, linear programming, etc. 13 ICT in Tourism

14 MIS in Tourism 14 ICT in Tourism

15 MIS in Tourism 15 ICT in Tourism

16 MIS in Tourism 16 ICT in Tourism

17 esatisfaction Analysis 5,00 IPA matrix based on self-stated importance Explicit self-stated Importance 4,50 4,00 3,50 3,00 7 Shopping 5 Culture (?) I. Concentrate here II. Keep up the good work Attractions (?) III. Low Priority IV. Possible Overkill 4 Accommodation Restaurants Sports (?) 1 2,50 3,6 3,8 4,0 4,2 Wellness 4,4 4,6 4,8 Performance (Satisfaction) 17 ICT in Tourism

18 esatisfaction Analysis 0,15 Highly Important Performance Factor Penalty and Reward Indices for Tourist Satisfaction Cluster 4 Basic Factor Satisfying Factor Satisfying Factor Basic Factor Low Important Performance Factor Low Important Performance Factor Penalty for Dissatisfaction Reward for Satisfaction 0,1 0,05 0-0,05-0,1-0,15 0,09 * -0,104 ** 0,02-0,123 *** 0,089 * -0,06 0,078 * Accomm. Entertainment Destination Recreation Sports Shopping Restaurants -0,036 0,006-0,087 * Indices are standardized regression coefficients Significance levels 10% * 5% ** 1% *** 0,004-0,065 0,021-0, ICT in Tourism

19 esatisfaction Analysis 19 ICT in Tourism

20 ebenchmarking Analysis Quality management and improvement technique 'standard against which something can be measured or judged' Measurement and improvement of an organisation's performance against best in the industry to obtain information about successful practices Benchmarking types according objective Performance benchmarking Product and/or service comparisons (i.e. consumer satisfaction) and analysis of operating statistics Process benchmarking Identifies efficient processes from many organisation units that perform similar functions Strategic benchmarking Explores industries to identify winning strategies that enabled high-performing companies to be successful 20 ICT in Tourism

21 ebenchmarking Analysis Conventional benchmarking Output 2 (e.g. satisfaction with winter sport facilities) Destination B (Best-Practice) Destination A Destination C Destination D Loss of destination profile Destination E Output 1 (e.g. satisfaction with accommodation) 21 ICT in Tourism

22 ebenchmarking Analysis DEA-based decision support Output 2 (e.g. satisfaction with winter sport facilities) Destination B Destination C Destination D Destination E Destination F Maximal performance Output 1 (e.g. satisfaction with accommodation) Fuchs/Höpken ICT in Tourism

23 ebenchmarking Analysis 23 ICT in Tourism

24 ebenchmarking Analysis IT framework for DEAbased decision support Customer data - Customer profile - Customer satisfaction online Destination resource data - Capacity data - Sales online Data warehouse Customer profiles Destination profiles - Supplier factors - Customer factors (Factor structure of customer satisfaction) Decision support system Interactive DEA-based decision support DMOs DMSs Suppliers Fuchs/Höpken ICT in Tourism

25 Management Information Systems in Tourism etourism and Management Management Information Systems (MISs) Case Study TourMIS Case Study T-MONA 25 ICT in Tourism

26 TourMIS Research issues for tourism managers Significance of tourism within specific destinations or regions/cities Changes and trends in travel behaviour Optimal market segmentation strategies Comparison amoung destinations Evaluation of marketing strategies and business models Effectiveness of ICT strategies Wöber ICT in Tourism

27 TourMIS Tourism Management Information System Electronic delivery of market research information and decision support tools for the tourism management Provides free and easy access to tourism statistics Platform for tourism associations to exchange data/information/knowledge Supports the harmonisation of tourism statistics Tool to learn about the actual usage of tourism market research information Increases the application of management science models in tourism 27 ICT in Tourism

28 Technical Evolution of TourMIS TourMIS installed as mainframe application TourMIS transferred to PC solution TourMIS introduced on the Internet (xbase, preformatted web pages) Technical redesign (SQL server, dynamically generated web pages) > queries answered by TourMIS 28 ICT in Tourism

29 Framework for Tourism Statistics Model for tourism statistic data Definition of Tourism Demand Visitors Tourists Same-day visitors Other Travellers Accommodation defined measures of demand Supply All forms of accommodation All paid forms of accommodation Hotels and similar establishments Other paid forms of accommodation Unpaid forms of accommodation (VFR) Arrivals (Bed/Room-) Nights Expenditures/Revenues Definition of City Scope Objective criteria Size Accommodation capacity Congress facilities Transportation facilities Cultural supply Visitors perceptions City s self-image Area Greater city area City trip relevant area Wöber ICT in Tourism

30 Welcome to TourMIS 30 ICT in Tourism

31 Tourism in Austria latest Trends 31 ICT in Tourism

32 Nights & Arrivals 32 ICT in Tourism

33 Nights & Arrivals 33 ICT in Tourism

34 Nights & Arrivals 34 ICT in Tourism

35 Nights & Arrivals - Trends 35 ICT in Tourism

36 Nights & Arrivals - Benchmarking 36 ICT in Tourism

37 Nights & Arrivals - Benchmarking 37 ICT in Tourism

38 Nights & Arrivals - Benchmarking 38 ICT in Tourism

39 Nights & Arrivals - Benchmarking 39 ICT in Tourism

40 Attractions & Sights 40 ICT in Tourism

41 Attractions & Sights 41 ICT in Tourism

42 Attractions & Sights 42 ICT in Tourism

43 Management Information Systems in Tourism etourism and Management Management Information Systems (MISs) Case Study TourMIS Case Study T-MONA 43 ICT in Tourism

44 T-MONA T-MONA MIS for tourism Online management & domain information system for the tourism decision-maker Partners: Österreich Werbung, RTOs, destinations, Statistik Austria Collection and preparation of information about organisations, municipalities, destinations, the market (customers/guests) Anonym or open benchmarking on different levels Aggregated domain figures for regional or national organisations Latest reports and statistics ASP solution: Access via Internet no local software 44 ICT in Tourism

45 Technical Overview Apache Jetty T-MONA Helma Apache webserver (http requests) Webserver Jetty (mod_proxi) Application server Helma ( mysql database mysqlmysql mysql 45 ICT in Tourism

46 T-MONA Data Model SAMON Customer satisfaction data YEARLY SURVEY Balance figures TREND- MONITOR Indicators Data transfer Data transfer Aggregation SURVEY Data transfer SCOBE Offers database Survey variables Creates Enters data Offers database Balance & customer figures, indicators Offers database REPORT Offers database Calculations MEMBER Basic data Gets Creates customer CUSTOMER Enters data Customer data 46 ICT in Tourism

47 Data Collection Guest surveys in Austria Guest profile Travel motives Information and booking behaviour Activities Satisfaction Re-visit intention Recommendation intention Expenditures Wighting of results Based on figures of Statistik Austria Region, destination of origin, accommodation type, season 47 ICT in Tourism

48 Guest Typology of a Destination 48 ICT in Tourism

49 Guest Satisfaction 49 ICT in Tourism

50 Destination Positioning Perceptual map: charming or hospitable -- Hospitable Charming ICT in Tourism

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