The Importance of IT in Travel Agencies

This assignment examines the crucial role of information technology (IT) in the success of travel agencies. It highlights how IT enables communication, global market access, competitive advantage through online services and efficient distribution channels. The document also discusses the use of internet marketing, cost reduction, and improved customer service facilitated by IT in the travel industry.

IT Management Issues 1
Value and Importance of Information Technology
Presented by
Affiliations
Supervisor
Date of submission

IT Management Issues 2
Communication has revolutionized in many organizations through the use of informational
technology starting from mobile phone technology to multiple information technology inventions. Every
business in our daily lives is trying to utilize the use of information technology in its operations to help in
efficient running of its activities. Information technology is applied by use of databases, spreadsheets,
use of internet ,blogs and also emerging technologies. There are also strategies that will help in the
selection of appropriate hardware and software of the computer to be able to meet the business needs.
The ICT should also be used in an social and ethical manner to help in management of the small
business. Information technology is also use in e-commerce, also used in ensuring security of technology
and information.
Information communication technology entails the assembly of networks including telephone and
audio-visual through a given link system. Information technology is important to for sustainable
development of organizations especially the travel agency sector since it entails communication. It has
been established that agents use internet as one of the distribution channel to be able to access the
globalmarket for their products. It through information technology by use of internet that they are able
to penetrate new markets and segments and also, they can form alliances with other big partners.
Information technology allows the use of systems that will help bring traffic in the business through
appropriate intermediaries like tourists ( Inversini,2014).
In addition, travelling agents use websites that have online booking of hotels and other services
offered by the organization that satisfy the needs and expectations of the tourists. According to Al-
Kassa, (2014) the usage of information technology is useful in helping an organization have a
competitive advantage over competitors by offering good services and value to customers. It not only
changes the business segment but also it brings efficiency and performance in the distribution channel

IT Management Issues 3
and promotion of the business to the outside market. The traveling agencies who avoid the new
technology lose a lot because they are not able to compete in the market environment.
Lastly due to the adverse use of internet by the population world-wide many travel agencies have
opted to use internet as one of the marketing and communication tool. Internet helps in the
development of flexible products and services giving its advantages to the world. This shows the
importance of information technology to distribution channels and helps in the reduction of costs and it
is more flexible as travelers are able to use internet more conveniently. Use of IT also aims to inform
potential consumers about services, products, and the destination of the business. The time spent on
communication and agreement between the clients will be reduced due to fast internet speed. The
services of the organization will be improved due to the responses got from the online queries and
complaints. Good information technology is very essential for the success of small and medium
enterprises especially in the travel agencies, (Standing,2015).

IT Management Issues 4
Reference lists
Al-Kassab, J., Ouertani, Z. M., Schiuma, G., & Neely, A. (2014). Information visualization to support
management decisions. International Journal of Information Technology & Decision
Making, 13(02), 407-428.
Inversini, A., & Masiero, L. (2014). Selling rooms online: the use of social media and online travel
agents. International Journal of Contemporary Hospitality Management, 26(2), 272-292.
Standing, C., Tang-Taye, J. P., & Boyer, M. (2014). The impact of the Internet in travel and tourism: A
research review 2001–2010. Journal of Travel & Tourism Marketing, 31(1), 82-113.
Xiang, Z., Magnini, V. P., & Fesenmaier, D. R. (2015). Information technology and consumer behavior in
travel and tourism: Insights from travel planning using the internet. Journal of Retailing and
Consumer Services, 22, 244-249.