ICTs and Strategic Tourism Development: A Critical Analysis

Desklib provides past papers and solved assignments for students. This presentation critically analyzes the role of ICT in tourism.

Critically analyse the
role of ICTs for the
strategic development
of tourism business.

Table of Content
• Slide 3………………………………… Introduction
• Slide 4………………………………… Critically analyse the
role of ICTs for the strategic development of tourism
business.
• Slide 10………………………………… Critically assess the
electronic presence of existing business in a changing
tourism context.
• Slide 15………………………………… Conclusion
• Slide 16………………………………… Reference List

Introduction
• The concept of E-Tourism can be referred to the digitalisation of every type of
value chains along with the processes used in the industry of travel and tourism,
hospitality along with catering. E-Tourism has assisted the different organisations
belonging to the sectors mentioned above with maximising their proficiency as
well as effectiveness. The concept is inclusive of every kind of business function,
for instance, E-Management, E-Human Resource Management, E-Commerce, E-
Marketing, E-procurement, E-Finance, E-Finance, E-Strategy, and E-Planning. E-
Tourism has revolutionised all the process along with whole the value chains, as
well as the relationships of the tourism companies, with each of their stakeholders,
which is strategic in nature.

Critically analyse the role of ICTs for the strategic development of
tourism business.
• ICT can be referred to as Information and Communication Technology,
which can be defined as components along with infrastructures that
allows modern computing (Vaishnavi and Kuechler, 2015). The term
Information and Communication Technology can be referred to various
kinds of devices, for instance, components of networking, systems along
with applications, which in an integrated manner enables individuals as
well as companies to communicate and interact in the digital world. The
components of the Information and Communication Technology include
access to internet, provision of cloud computing, software, hardware,
data, different technologies used for communicating, along with
transactions (Bloom et al., 2014).

• History of Information and Communication Technology in the
industry of Travel and Tourism
• The Information and Communication Technology was introduced
in the sector of travel and tourism as CRSs or Central Reservation
Systems, during the period of 1960 by the airlines. It is a type of
software, which is used for updating as well as maintaining of a
business pertaining to inventory along with rates, in order to
enable the entities to handle guest reservations as well as the
processes related to such reservations in practicality (Medlik,
2016). After, the introduction of the software, many hotels came
onboard with its implementation, corresponding to which,
Central Reservation Systems dominated the hospitality sector.
Thus, Airline Computer Reservations Systems transformed into
Global Distribution Systems or GDSs. The new Global
Distribution Systems incorporated a number of products along
with services for the entire sector of hospitality, for instance
Sabre Corporation, Galileo, Amadeus IT Group and many others.

• Destination management systems
• Corresponding to the establishment of the Global Distribution
Systems emerged the Destination Management Systems or
DMSs. This system assisted with information and data
regarding regional products along with attractions. The
Destination Management Systems are useful for assisting
mitigating issues that occur occasionally and seasonality
problems, through distributing along with balancing the
demand in tourism (Koo et al., 2015).

• Benefits
• The Information and Communication Technology enable small
businesses to compete in a global market. In addition to that, it
assists in disposing the inventories are not required.
Nevertheless, these systems pose problems as well, which can
be mitigated with technical support.
• The Information and Communication Technology allows the
guests to package their own products without any effort.
Therefore, the travel agents used these, as it is easier to blame
the systems.
• The technology transformed the framework of the whole travel
and tourism industry. Several intermediaries are either gone or
have been engulfed because of vertical integration.
• The provision of internet is excellent for brand enforcement,
along with brand enlargement, as well as brand expansion.

• Issues
• One of the major issues of Information and Communication
Technology is online pricing in comparison to other pricing. The full
service carriers implement consolidators along with intermediaries
in order to sell the discounted seats for safeguarding the brand,
which are offered at lower prices. As a result online reservations of
airplane tickets, hotels and other as such products of the travel and
tourism sector has become extremely popular.
• Another issue is developing products and services. The
intermediaries of the travel and tourism industry were once
responsible for building products and services in the concerned
sector. However, at present the travellers do it themselves
according to their preferences. Although this has increased sales,
but it has restricted various job roles. There is no solution to this
issue, as dynamic tour package is popular product in the
contemporary period.

Contd..
• The Information and Communication Technology has also made it
extremely difficult for the travel agents to survive in this era of
digitalisation. As the travel agents ask for commissions, their prices
are fundamentally higher. On the other hand, the prices offered
online are much lower, thus most of the travellers, especially
belonging to the younger generations avail it.
• This has also made the survival or professions such as tour guiding
extremely difficult. At present, all the important and necessary
information regarding a destination is available on the internet,
which can be accessed with the assistance of devices, such as
desktops, laptops, smart phones and others as such. The travellers
prefer to access the information prior to going to a place, and thus
do not require information and guidance during the tour.

Critically assess the electronic presence of existing
business in a changing tourism context.
Electronic Presence
• The Electronic Presence is the network and
the Internet dependency of the organisation
to process their business operations
• The main application of the technology is the
advertisements part as they are all dependent
on the online sites and websites to publicize
their products or services.

ICT
• One of the essential parts of the
technological advances is the ICT
(Information and communications
Technology) which is varied field for the
exploration of the Information.
• In this study, the enunciation of the
effects of the ICT in the travel and
tourism business will be depicted in a
detailed basis.
• The Inclusion of the technologically
advancements in their accommodation
and transportation systems can be one
of the factor the ICT has made which
has increased and developed the travel
and tourism business.

Cont..
• There have inventions in technological department in such an
extent that it has helped the travel and tourism department to
explore more innovative parts of the tourism sectors
• The inclusion of algorithms gives way to the filtering and
making choices for the hotels and accommodations the
customers want to try and they are comfortable with to make
their travelling experience memorable and worth the price and
investments.
• The Artificial intelligence has become a challenge, which every
organisation from retailing to corporate is accepting to gain
customer preferences and competitive advantage in their
business operations