The Role of Information Technology in Travel and Tourism: A Report

This report analyzes the impact of Information and Communication Technology (ICT) on the travel and tourism industry. It examines the evolution of ICT from 1950 to the present, highlighting its influence on customer relations and business expansion. The report focuses on key areas for growth, including the adoption of innovative services to increase profitability. It discusses Porter's 5 forces model, analyzing industry rivalry, threats of substitutes, and bargaining power of suppliers and buyers within the tourism sector. Technological advancements like 3D images, improved communication processes, and multiple screen sharing are also explored. The report further investigates concepts like disintermediation, business models, and value chains, emphasizing the importance of market research and the adoption of ICT to achieve business goals and enhance customer satisfaction. Recommendations include utilizing diverse marketing tools and online platforms to reach a broader customer base and improve service effectiveness. The report concludes by stressing the need for continuous technological adaptation in the travel and tourism sector to maintain a competitive edge.

Individual Reflective

Table of Contents
SUMMARY.....................................................................................................................................1
REFERENCES................................................................................................................................4

SUMMARY
From the above case study I have been evaluated that there are certain developments
which taken place into travel and tourism industry. It can also affect growth and advancement of
travelling companies in an effective manner. I also studied that travelling companies are tend
towards adopting new and innovative services in order to gain more profitability and sales
revenue. While finishing this assignment, I analysed the role of information technology in travel
and tourism sector; it helps management to reach large number of customers in order to gain high
competitive advantage.
Due to globalisation, there is a huge development in technology through a business can
expand itself in market. It also companies to establish their business in different countries and get
succeed at there. I have focused on those areas, which are liable for growth and development of
travelling agencies. It has been studied that business organisations have to improve its
capabilities and skills so as to produce in a systematic manner (Novella, 2005.). As per the
report, I examined the evolution of ICT.
 In 1950 to 1990, the growth and advancement of information technology was really
beneficial for travel and tourism sector in order to make healthy and positive relations
with customers. It was time when numerous private travelling organisations were
implemented.
 In 1990 to 2000, evolution of internet was done. There was generated several applications
and tools which aids in exploring business activities and issues. At the same time, this
evolution was also assistive in determining business problems.
 2000 onwards, in this phase several techniques was developed with an aim of increasing
their sales revenue and annual turnover (Buhari’s and Laws, 2001).
Apart from this, I also included certain theories which are related with technological
development in travel and tourism industry. In this context, I was focused on Porter's 5 forces
model; under this theory certain aspects are analysed which are related with growth and
development. I analysed that travel and tourism is dynamic in nature; it is affected by needs and
wants of customers either direct or indirect manner. There are certain factors which are involved
in Porter's 5 forces model, which are described as under: -
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 Industry rivalry – In this factors, I studied that there are various competitors of the firms
in big cities and which can affect customers' interest and choice. For example- an
individual get all information about travelling site by visiting its website and gain proper
information. Threats of substitute – There are different substitutes of a product are easily available in
market. Thus, people can easily select the best one without making any efforts. This can
also hamper the sales and profitability of business organisations (Mourinho, 2011).
Available competitors always known as big threat for travelling agencies; it can reduce
market share of companies as well as the number of customers. Bargaining power of suppliers – In travelling sector, the growth and vitality are depend
on the number of customers. Before planning any tour, people can make comparison
between prices of different entities. It provides immense power in the hands of clients as
they can select the best one.
 Bargaining power of buyers – in this competitive market, there are numerous suppliers
of a firm. As if such people increase their rates then it can hamper the business activities
and operations of travelling companies. Management needs to hire certain loyal sales
persons who can promote their business on an average rate.
Beside this, I also enlighten different kind of technological which can be used by
travelling companies in order attract customers. Firstly, I described the evolution of 3D images;
in which pictures are seen as real. For this purpose, various measures are used in order to give
real life experience to customers (Theobald, 2005). Apart from this, I also emphasised on the
continuous improvements in communication process; it can facilitates and make an effective
interaction between customers and management so that appropriate decisions can be prepared.
Furthermore, I used multiple screen sharing economy; it is a software in which people
can go through several screens in a single time that would aids them to make an imperative
conclusions. I found that this technique is really useful for tourist by helping them to compare
which one is the best location for them.
At last, I have monitored the key concepts of tourism sector, such as- disintermediation,
business model, value chain. In disintermediation, I studied that there are various intermediaries
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of a travelling sector. Therefore, managers can use internet or web portals in order to reduce the
impact of middleman or agents. With the assistance of social media channels and websites
management can easily reach with large group of customers (Cooper and Hall, 2008). This
would assistive in enhancing the number of customers as well as the effectiveness of services. It
also enables in diminishing customers queries and issues. At last, I refer that travelling sectors
have to use innovative applications of ICT which aids them to reach corporate clients by
providing them leisure services.
Therefore, technological advancement is really essential for travel and tourism sector. It
helps management to achieve their goals and objectives in an effective manner. If companies are
using impressive technology; it can easily reach large group of people in a certain time period.
While preparing this assignment, I analysed that travelling industries needs to conduct a market
research in order to know needs and wants of people and gain high competitive advantage.
Hence, I recommend that adoption of ICT is very important for every business
organisation in order to achieve its goals and objectives in an effective manner. I prefer that
customers have to check out online websites, blogs and articles of travelling so as to gain proper
and accurate information. Apart from this, travelling entities have to analyse certain other factors
which will impact on their business performance and productivity (Evans, Stonehouse and
Campbell, 2012). Regardless in this matter, they need to adopt adequate strategies and polices
which are assistive in business expansion at global level. I advised to management as it have to
use diver marketing tools in order to communicate with its customers and provide them higher
satisfaction level.
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REFERENCES
Books and Journals
Novella, M. ed., 2005. Niche tourism: contemporary issues, trends and cases. Routledge.
Buhari’s, D. and Laws, E. eds., 2001. Tourism distribution channels: Practices, issues and
transformations. Cengage Learning EMEA.
Mourinho, L. ed., 2011. Strategic management in tourism. Cabin.
Theobald, W.F. ed., 2005. Global tourism. Routledge.
Cooper, C. and Hall, C.M., 2008. Contemporary tourism: an international approach. Routledge.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Spicily, A. ed., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34. pp.1-13.
Lyons, K. and et.al., 2012. Gap year volunteer tourism: Myths of global citizenship?. Annals of
tourism research. 39(1). pp.361-378.
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