Scribd
Upload
11 views8 pages

Strategic and Operational Use of IT in Tourism Industry

Information technologies (ITs) are crucial for the tourism industry, enhancing competitiveness through improved marketing, distribution, and customer engagement. They drive business transformation by streamlining processes and enabling personalized services, while also requiring organizations to adapt to changing consumer demands. Success in the tourism sector hinges on effective IT integration, innovation, and strategic management.

Uploaded by

cutec4834
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views8 pages

Strategic and Operational Use of IT in Tourism Industry

Information technologies (ITs) are crucial for the tourism industry, enhancing competitiveness through improved marketing, distribution, and customer engagement. They drive business transformation by streamlining processes and enabling personalized services, while also requiring organizations to adapt to changing consumer demands. Success in the tourism sector hinges on effective IT integration, innovation, and strategic management.

Uploaded by

cutec4834
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

Strategic and Operational use of IT in Tourism

• ITs refer to the latest developments in electronic methods and computer/communication


technologies for acquiring, processing, analyzing, storing, retrieving, disseminating, and applying
information

Impact at the Macroeconomic Level:


•ITs play a vital role in the development and prosperity of regions.
•They determine competitiveness in the global marketplace.

Impact at the Microeconomic Level:


•ITs influence all aspects of strategic and operational management in businesses.
•They drive the competitiveness of enterprises.

Technological Advancements:
•Enhancements in IT processing power have revolutionized business capabilities, with continuous
improvements in computing speed and efficiency.
• There is a reduction in equipment size, hardware/software costs, and improvements in
compatibility and interconnectivity.

Innovation in IT: Significant innovations are seen in hardware, software, and networks.

Increasing Accessibility: ITs have become more user-friendly and inexpensive, allowing wider
access for individuals and organizations.

ITs and Economic Prosperity:

Influence on Tourism: The tourism industry is significantly affected by IT advancements, with


destinations and enterprises needing to adopt innovative methods to remain competitive.

Consumer Demand: New IT-savvy consumers expect flexible, specialized, accessible, and
interactive products, pushing businesses to adapt.
Information Technologies as a Major Contributor to Competitiveness and Competitive
Advantage:

• Creation of New Industries


• Restructuring Existing Industries
• Changing Competitive Dynamics
• Impact on Cost and Differentiation

Prerequisites for IT Success:


•Long-term planning and strategy.
•Business process re-engineering.
•Top management commitment.
•Continuous training across the organization.
•IT investment does not guarantee profitability and can sometimes worsen a firm’s competitive
position.
Tourism and IT

• Information technologies (ITs) are essential for the tourism industry due to the need for accurate
and timely information.
• ITs provide tools for globalization, improving marketing, distribution, and coordination within the
tourism sector.
• Tourism services are intangible and depend on ITs for representations and descriptions to attract
consumers.
• ITs enable quick access to information, boosting customer satisfaction by reducing gaps between
expectations and experiences.
• Tools like Computer Reservation Systems (CRSs) and Global Distribution Systems (GDSs)
streamline bookings and increase efficiency.
• The Internet has revolutionized tourism by enhancing access to travel information and creating
electronic market places.
• ITs drive competitiveness in the tourism industry through market research, personalized services,
and interactive communication with customers.
• Tourism businesses must adopt ITs to meet rising consumer demands and survive in the evolving
market.
Challenges Ahead………

• Different market segments use different distribution channels for selecting and purchasing
tourism products.

• Older or infrequent travelers may prefer traditional travel agencies, while business and
frequent travelers often use online platforms.

• The choice depends on factors like internet security, reliability of information, and
convenience.

• Traditional travel agencies must reassess their target market and improve equipment, training,
and service to stay competitive.

• Travel agencies need to evolve from booking offices to travel managers and advisers.

• Two strategies for travel agencies: focus on personalized, premium services or offer cost-
effective, standardized products.
ITs' Contribution to Future Tourism:
Business Transformation: ITs improve efficiency, reduce costs, and enhance organizational
differentiation.
Booking Process: ITs streamline the booking process, making it faster and more personalized for
consumers.
Market Visibility: Tourism operators' visibility depends on the technology and networks they use
to engage with customers.
Integration: ITs enable seamless horizontal, vertical, and diagonal integration, improving service
and collaboration.
Human Resource Training: Training in IT and innovation management is essential for adapting
to industry changes.

ITs alone aren't enough, require a comprehensive review of operational and strategic practices;
Neglecting ITs risks losing competitiveness and relevance in the tourism industry.

Future Success: A mix of IT use, innovation, and management will determine the long-term
success of tourism organizations.

You might also like