Forward into the 1990s there has been a phenomenal growth of information technology. The most important areas of impact from this are marketing, distribution and sales. This is evident by the extent of development of computerised reservations systems (CRSs) for the distribution of travel and tourism related services and the extent of their adoption by the industry. CRSs have emerged as the dominant technology in the travel and tourism industry. Although electronic distribution systems were developed in the 1970s, CRS have since had to expand their role: originally designed to provide travel agents with information on airline services, they now display information for a range of travel and leisure services and allow reservations to be made for hotels, car-rentals, cruises, railways, tours and sporting events. No longer could they merely be information and booking systems, they had to grow into marketing and distribution systems (Medlik, 1995).
Poon (1993) has recognised that strategically, CRSs are a very important marketing tool for airlines. They generate invaluable information on the performance of their services; the performance of travel agents who market their services; the performance of competitors that are co-hosts on their systems; and on profiles of the clients of their agency subscribers. However, Medlik (1995) goes on to say that the importance and role of CRSs grows further - “they are no longer a pure marketing system for an airline, but are an industry in their own right, and they will significantly alter the pattern of world tourism over the next decade”.
Moving on, there are also the global distribution systems (GDSs). “A GDS is a super switch connecting several CRSs. Each GDS is powered by a large mainframe computer that performs many of the end-user functions that are delivered to travel agents using PC-based terminals.” (Inkpen, 1998). GDSs are not only used by travel agents or airlines, but also within the hotel industry to distribute accommodation services to travel agents and consumers. The marketing opportunities offered have great potential for increased hotel sales. Hotels can use GDSs to aim their promotional efforts at a highly targeted section of the world’s travel agency population. Therefore, the technology creates a flexibility and responsiveness to customers, especially as marketing messages are sent directly to the point-of-sale in travel agencies. However, hotel chains would have to ensure commitment to keeping their information up-to-date.
Whilst electronic distribution systems led to major structural changes within the tourism industry, further expansion was launched in the mid-1990s in the form of the Internet and World Wide Web (WWW). Since the Internet is such a huge subject, it will not be covered fully, but primarily made relevant to tourism marketing.
According to Inkpen (1998), the Internet is one of the most powerful movers and shapers of the travel and tourism industry both at the present time and, no doubt in the future. It has particular relevance to tourism, as it eases interactivity between the enterprise and the external world, however distant. For companies, it provides such a vast number of uses in management areas, mainly in marketing and promotions; for the consumers, it is an opportunity to make travel planning and implementation much easier and more informed. Research highlights that many Internet users are affluent and experienced travellers - the target market of many travel agents and suppliers. However, Briggs (2001) emphasises that this is changing: Internet users are now from a broad range of backgrounds and income groups. It is predicted that within five years, 20% of total bookings will be made via the Internet (Inkpen, 1998). And by 2001, over 400 million people will be on-line (Briggs, 2001).
Inkpen (1998) describes the Internet as “a marketing person’s dream”, as it levels the playing fields, enables companies of different size to compete more equally, and allows a channel of direct communication with its customers. It enables them to promote directly to potential and existing customers at a fraction of the cost of other traditional methods. As well as reaching out to customers, the involvement of transactions from them is increased, thus making the product or package more individual to each consumer. Furthermore, the organisation can receive quick feedback from customers as well as reacting almost immediately to their needs; building on relationship marketing and perhaps increased customer loyalty. It is the primary digital format for powerful marketing in use today.
Consumers, on the other hand, benefit by being able to undertake on-line reservations, and in their own time, perhaps when other travel agencies are closed. They can access accurate, reliable and up-to-date information to purchase only the most suitable products for their own individual needs. Although in marketing it is difficult to satisfy everyone’s needs, this process makes it that little bit more possible. To add to this, users are empowered to gain information on a whole range of additional data about the resources, history and, social/economic structure of their destination.
Parallel with the Internet, there is the World Wide Web (WWW), another powerful marketing tool. The first and most basic commitment a company can make to the Internet is to establish its own Web site. This, again, allows them to build a relationship with users, inviting comments and feedback, so to “push” relevant promotional messages to the right markets. The website essentially acts as a channel of communication and distribution, offering users the opportunity to book online, hence enabling the delivery of information and selling simultaneously. They can reach a mass audience directly and tour operators, for example, can distribute electronic brochures and booking forms through the WWW directly to consumers, even niche markets. This saves the cost for developing, printing, storing and distributing conventional brochures, which is estimated to be approximately £20 per booking (Cooper et al, 1998). It is emphasised by Liu (2000) that in the travel business, the Web’s flexibility and instantaneousness in information transmission is invaluable.
However, it should also be stressed that such technology is likely to result in increased competition between some products. Also, in order to build an effective website, it should be produced by the kind of people who design brochures, magazines, logos and advertisements. It is a specialist field and perhaps best to approach an outside agency. The website must attract consumers, but also encourage them to return to the site regularly.
Overall, the subject of the Internet and WWW has a vast amount of information and would be impossible for me to cover in one essay. Therefore, I am aware I have missed out on some additional details or information, but believe I have captured the main points. Nevertheless, I will briefly mention some other aspects of information technology that has affected tourism and marketing. Firstly, there are alternative methods of distribution: interactive television, which again offers substantial potential for direct sales to consumers; self-service kiosks that are intelligent ATM-style machines; and tele-sales centres. The interactive automated ticket machines (ATMs) consist of a computer with attached printer that permits passengers to research schedules and fares, make reservations, purchase and receive tickets and boarding passes without the intercession of a human agent (Poon, 1993). An expansion or growth of this kind of technology is the new ticketless-travel or e-ticketing, where check-in is done with proof of identity and a booking reference number. This saves the cost of printing, postage and time.
In conclusion to this essay, I will draw together the main points. First of all, tourism is an extremely important industry to the economy, and a growth industry. The marketing of tourism, like other products relies heavily on customer value and satisfaction. However, the various forms of information technology have allowed tourism marketing strategies and activities to be carried out more easily and effectively. For instance, companies can best enhance their competitive performance by effectively exploiting new technologies, such as CRSs, GDSs, Internet, WWW and many more. The electronic distribution systems have undoubtedly led to major structural changes within the tourism industry. CRSs have grown to a point where they are industries in their own right, and GDSs have brought about marketing opportunities that offer great potential for increased hotel sales. Besides this, the Internet and WWW have enabled an improved means of marketing directly with consumers. The interactivity and communication is fast and allows for immediate response to consumer needs, which in turn helps build on relationship marketing and customer loyalty. The consumers, on the other hand gain benefits of having the ability to purchase products that are suitable to their own individual needs, as well as getting additional information on the history and social/economic structure of their destination. Overall, IT has grown quite significantly in the last decade, and tourism marketing activities have successfully utilised the new technology to put them at a better competitive advantage, improving the service to customers.
BIBLIOGRAPHY
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Briggs, S (2001) Successful Tourism Marketing, Kogan Page Ltd, London
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Cooper, Fletcher, Gilbert, Shepherd, Wanhill (1998) Tourism Principles and Practice, 2nd Ed, Addison Wesley Longman Ltd, New York
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Faulkner, B. Moscardo, G. Laws,E. (2001) Tourism in the 21st Century, Continuum, London
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Holloway, J.C (1995), The Business of Tourism, 3rd Ed, Pitman, London
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Inkpen, G (1998) Information Technology for Travel and Tourism, Addison Wesley Longman Ltd, Harlow
-
Kotler, Brown, Makens (1999), Marketing for Hospitality and Tourism, 2nd Ed, Prentice-Hall, London
-
Liu, Z (2000) ‘Internet Tourism Marketing – Potential and Constraints in Chong, K’, Proceedings of the Fourth International Conference of Tourism in Southeast Asia and Indo-China, June 24-26, Chaing-mai, Thailand, p34-51
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Medlik, S (1995) Managing Tourism, Butterworth-Heinemann Lt, Oxford
-
Middleton, V (1994) Marketing in Travel and Tourism, Butterworth-Heinemann Ltd, Oxford
eing able to undertake on-line reservations, and in their own time, perhaps when other travel agencies are closed. They can access accurate, reliable and up-to-date information to purchase only the most suitable products for their own individual needs. Although in marketing it is difficult to satisfy everyone’s needs, this process makes it that little bit more possible. To add to this, users are empowered to gain information on a whole range of additional data about the resources, history and, social/economic structure of their destination.
Parallel with the Internet, there is the World Wide Web (WWW), another powerful marketing tool. The first and most basic commitment a company can make to the Internet is to establish its own Web site. This, again, allows them to build a relationship with users, inviting comments and feedback, so to “push” relevant promotional messages to the right markets. The website essentially acts as a channel of communication and distribution, offering users the opportunity to book online, hence enabling the delivery of information and selling simultaneously. They can reach a mass audience directly and tour operators, for example, can distribute electronic brochures and booking forms through the WWW directly to consumers, even niche markets. This saves the cost for developing, printing, storing and distributing conventional brochures, which is estimated to be approximately £20 per booking (Cooper et al, 1998). It is emphasised by Liu (2000) that in the travel business, the Web’s flexibility and instantaneousness in information transmission is invaluable.
However, it should also be stressed that such technology is likely to result in increased competition between some products. Also, in order to build an effective website, it should be produced by the kind of people who design brochures, magazines, logos and advertisements. It is a specialist field and perhaps best to approach an outside agency. The website must attract consumers, but also encourage them to return to the site regularly.
Overall, the subject of the Internet and WWW has a vast amount of information and would be impossible for me to cover in one essay. Therefore, I am aware I have missed out on some additional details or information, but believe I have captured the main points. Nevertheless, I will briefly mention some other aspects of information technology that has affected tourism and marketing. Firstly, there are alternative methods of distribution: interactive television, which again offers substantial potential for direct sales to consumers; self-service kiosks that are intelligent ATM-style machines; and tele-sales centres. The interactive automated ticket machines (ATMs) consist of a computer with attached printer that permits passengers to research schedules and fares, make reservations, purchase and receive tickets and boarding passes without the intercession of a human agent (Poon, 1993). An expansion or growth of this kind of technology is the new ticketless-travel or e-ticketing, where check-in is done with proof of identity and a booking reference number. This saves the cost of printing, postage and time.
In conclusion to this essay, I will draw together the main points. First of all, tourism is an extremely important industry to the economy, and a growth industry. The marketing of tourism, like other products relies heavily on customer value and satisfaction. However, the various forms of information technology have allowed tourism marketing strategies and activities to be carried out more easily and effectively. For instance, companies can best enhance their competitive performance by effectively exploiting new technologies, such as CRSs, GDSs, Internet, WWW and many more. The electronic distribution systems have undoubtedly led to major structural changes within the tourism industry. CRSs have grown to a point where they are industries in their own right, and GDSs have brought about marketing opportunities that offer great potential for increased hotel sales. Besides this, the Internet and WWW have enabled an improved means of marketing directly with consumers. The interactivity and communication is fast and allows for immediate response to consumer needs, which in turn helps build on relationship marketing and customer loyalty. The consumers, on the other hand gain benefits of having the ability to purchase products that are suitable to their own individual needs, as well as getting additional information on the history and social/economic structure of their destination. Overall, IT has grown quite significantly in the last decade, and tourism marketing activities have successfully utilised the new technology to put them at a better competitive advantage, improving the service to customers.
BIBLIOGRAPHY
-
Briggs, S (2001) Successful Tourism Marketing, Kogan Page Ltd, London
-
Cooper, Fletcher, Gilbert, Shepherd, Wanhill (1998) Tourism Principles and Practice, 2nd Ed, Addison Wesley Longman Ltd, New York
-
Faulkner, B. Moscardo, G. Laws,E. (2001) Tourism in the 21st Century, Continuum, London
-
Holloway, J.C (1995), The Business of Tourism, 3rd Ed, Pitman, London
-
Inkpen, G (1998) Information Technology for Travel and Tourism, Addison Wesley Longman Ltd, Harlow
-
Kotler, Brown, Makens (1999), Marketing for Hospitality and Tourism, 2nd Ed, Prentice-Hall, London
-
Liu, Z (2000) ‘Internet Tourism Marketing – Potential and Constraints in Chong, K’, Proceedings of the Fourth International Conference of Tourism in Southeast Asia and Indo-China, June 24-26, Chaing-mai, Thailand, p34-51
-
Medlik, S (1995) Managing Tourism, Butterworth-Heinemann Lt, Oxford
-
Middleton, V (1994) Marketing in Travel and Tourism, Butterworth-Heinemann Ltd, Oxford