IT in Tourism: A Comprehensive Analysis of Implementation and Risks

This report delves into the crucial role of Information Technology (IT) in the tourism sector. It begins by highlighting the need for IT in the ever-expanding tourism business, emphasizing its importance for innovation and effective management. The report explores how IT is essential for business survival, particularly in offering online services and catering to the increasing number of internet users. It outlines the requirements for implementing IT, including website development, necessary equipment, and staff training. The report also examines the various uses of IT in tourism, focusing on how customers, staff, and suppliers benefit from its integration. Furthermore, it details the advantages of implementing IT, such as easier booking processes, global reach through online advertising, and improved customer feedback collection. The report also addresses the risks associated with IT implementation, particularly data security concerns. Finally, it discusses the importance of strategic monitoring and maintenance to ensure the smooth performance of IT in tourism business operations, concluding that effective IT integration is vital for success, but requires careful risk management.

Running head: IT IN TOURISM
IT in Tourism
Name of the Student
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Table of Contents
Introduction..........................................................................................................................2
1. Need of IT in Tourism.....................................................................................................2
2. Importance of IT for survival of Business.......................................................................3
3. Requirement of implementing IT in Tourism business...................................................3
3. Use of IT in Tourism Business........................................................................................4
5. Benefits and advantages of implementing IT in business...............................................5
6. Risks associated with implementation of IT in tourism..................................................5
7. Monitoring and maintenance of It in tourism business...................................................6
Conclusion...........................................................................................................................6
References............................................................................................................................7

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Introduction
The success of business largely depends of the proper and effective use of information
technology in business. This is because, proper and effective use of information technology helps
in innovating the business processes thus prioritizing its position in the market place. The effect
of Information technology is furthermore important in the field of tourism and the different use
of technology in tourism is considerably helping the business to grow steadily. The different
travel agencies make proper use of technology in providing different services to the tourists and
customers. The online services provided by the tourism industry and travel agencies are gaining
a lot of attention over the years (Xiang, Magnini and Fesenmaier 2015). The report elaborates the
use the need of IT in the business of tourism sector and the different risks linked with it along
with the proper implementation and monitoring of IT in tourism business.
1. Need of IT in Tourism
Tourism business is ever expanding and therefore the need of IT is obvious in the tourism
sector for innovating the services and processes provided to the customers. The need of
implementation of IT in tourism industry are listed below (Bethapudi 2013)-
1) With the emerging technologies and growth of tourism, implementation of IT helps in
monitoring and managing the business in an effective way. Implementation of ERP further helps
in integrating the different processes and operations of the business thus automating the business
processes and reducing the maintenance and labor cost.
2) Furthermore, the number of internet users is increasing in a rapid pace, and therefore,
it becomes essential to implement IT in any business. Majority of the customers prefer online
services to manual booking of services.

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2. Importance of IT for survival of Business
With the advancing and emerging technologies, the use and implementation of IT for
business survival and also for maintaining the position in the market is very important and
essential. The implementation of IT in tourism sector applies to offering online services to the
customers, where customers can use an online website to gather information about a particular
service and make the necessary booking from the convenience of their home or workplace.
Therefore, people will definitely choose an online service to the manual service providers and
therefore, implementation of IT in business becomes utmost essential. Furthermore, the
implementation of IT in business further helps in time saving and offers a cost effective solution
as well. Therefore, it is very important to implement IT in any business (Baltzan 2012).
3. Requirement of implementing IT in Tourism business
The different requirements associated with the implementation of IT in chosen business
process are elaborated below (Benckendorff, Sheldon and Fesenmaier 2014)-
1) Implementation of a global website helps sin reaching a wider audience, thus
increasing the profits in a business. The website to be used should incorporate all the necessary
details a customer may need to know before proceeding with the booking. This will help in
reducing the hassle of extensive booking procedures and in turn will help in saving a lot of time
and money.
2) Development and launching of an online travel website does not require much time.
The only significant need of developing an online platform is planning the website according to
the business need. Professionals help can be taken for implementation and development of the
website according to the needs.

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3) The list of equipments that would be necessary for implementing information
technology in tourism sector includes equipments such as computers, printers, servers, hard
drives, network HUBs and other basic equipments.
4) The launching procedure of the website should incorporate proper training of the staffs
in order to maintain the smooth business operations.
3. Use of IT in Tourism Business
Implementation of IT in tourism business indicates the use of this technology by
employees as well as the customers. The use of IT in tourism business are elaborated below-
1) Customers using IT: Not only the business processes would be benefited by the
implementation of IT in tourism, but also the customers. The online website would be available
to the customer and would provide every necessary detail about the travels and booking
procedures. Tourists and customers can access this website 24*7, according to their convenience
and can complete the booking procedure by a single click. The website would further help them
in choosing and selecting a customized service according to their needs (Molz 2012). This would
further help in increase of the customer satisfaction and in business growth as well. Therefore,
implementation of IT in tourism business will definitely benefit the customers or the tourists.
2) Staffs or Employees: The employee training is an important aspect of using IT in
business. The employees are responsible for managing the back end services and providing
customer support as well. The employees remain connected with the system to clarify the
customers’ doubt and queries and managing the operations as well. The communication between
the client and the customers are carried on with trough different means of communication, which

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includes emails, phone call and GPS tracking as well. The website administrator helps in
confirming the booking done by clients.
3) The suppliers include outsourcing service providers for proving necessary services to
the clients of a particular travel agency while they plan a tour outside the country. The entire
business process can be effectively managed by the implementation of IT.
5. Benefits and advantages of implementing IT in business
The different advantages and benefits of implementing Information technology in
business are listed below (Drnevich and Croson 2013)-
1) The process of travel booking and making reservations becomes easier with the
implementation of IT in business. The use of IT helps in automating the business process and the
entire business transaction thus reducing the manual labor.
2) Online advertising of business helps in reaching a global audience. This helps in
further growth of business (Goldfarb 2014).
3) The use of information technology helps the customer in placing the booking
according to their convenience.
4) Implementation of IT helps in collection of the customer feedback more effectively,
that further helps in effective decision-making.
6. Risks associated with implementation of IT in tourism
The different risks associated with the implementation of IT in tourism business are
elaborated below-

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1) While placing the booking, the customers insert the confidential data associated with
the debit and credit card credentials, that incorporate high risk of data theft and therefore, should
be properly managed. Therefore, the confidentiality of these important details should be
maintained by incorporating proper security methods to retain the customer base (Peltier 2013).
2) The online website is associated with different security risks and a website can be
easily hacked. Therefore, it is very essential to protect the data using proper encryption standards
(Slovic 2013).
7. Monitoring and maintenance of It in tourism business
The implementation procedure of Information technology is very simple in tourism
business and therefore, a strategic management of all the equipments may help in retaining the
smooth performance of IT in business processes (McNeil, Frey and Embrechts 2015). The
security essentials are needed to be monitored and upgraded on a regular basis in order to
eliminate the threats and risks associated with the integration of IT in tourism business.
Conclusion
Therefore, from the above discussion, it can be concluded that the use of IT is very
essential in tourism business as it helps in automating all the process and operations in the
business. However, for maintaining a smooth business operation, he risks that are associated with
the implementation of Information Technology in the business should be strategically managed
and eliminated. The report discusses the benefits, advantages and use of IT in tourism business.

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References
Baltzan, P., 2012. Business driven technology. McGraw-Hill/Irwin.
Benckendorff, P.J., Sheldon, P.J. and Fesenmaier, D.R., 2014. Tourism information technology.
Cabi.
Bethapudi, A., 2013. The role of ICT in tourism industry. Journal of Applied Economics and
Business, 1(4), pp.67-79.
Drnevich, P.L. and Croson, D.C., 2013. Information technology and business-level strategy:
Toward an integrated theoretical perspective. Mis Quarterly, 37(2).
Goldfarb, A., 2014. What is different about online advertising?. Review of Industrial
Organization, 44(2), pp.115-129.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Molz, J.G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Peltier, T.R., 2013. Information security fundamentals. CRC Press.
Slovic, P., 2013. Risk, media and stigma: Understanding public challenges to modern science
and technology. Routledge.
Xiang, Z., Magnini, V.P. and 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, pp.244-249.