IT in Tourism Industry

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Questions and Answers

How has IT most significantly transformed service delivery in the tourism sector?

  • By increasing the cost of services for end-users.
  • By slowing down transaction speeds and increasing errors.
  • By limiting the interaction between customers and service providers.
  • By providing potential tourists with immediate access to visual and textual representations of destinations worldwide. (correct)

What is the primary role of company websites in the tourism industry?

  • To increase the cost of marketing tourism products.
  • To limit the reach of tourism products to local markets.
  • To communicate the services that a tourism attraction offers. (correct)
  • To replace traditional marketing strategies entirely.

How do tourism-related businesses utilize data from website analytics?

  • To obscure the establishment's performance against competitors.
  • To evaluate tourists' movements and travel patterns at a large scale. (correct)
  • To ignore tourists satisfaction with travel websites.
  • To limit tourists' movements and travel patterns.

What role does IT play in business regulatory compliance within the tourism and hospitality sectors?

<p>IT ensures fast, easy, and efficient compliance with regulatory processes. (B)</p> Signup and view all the answers

How has e-commerce transformed business transactions in tourism?

<p>By enabling immediate access to knowledge and efficient distribution of products. (B)</p> Signup and view all the answers

What is 'disintermediation' in the context of the travel trade sector?

<p>The process of cutting out one or more middlemen from a transaction. (A)</p> Signup and view all the answers

How do hotels leverage Property Management Systems (PMSs)?

<p>To manage all activities concerning guests, rooms, and accounting. (B)</p> Signup and view all the answers

What is the function of Destination Management Organizations (DMOs) in utilizing IT?

<p>To incorporate IT into their marketing and management strategies. (C)</p> Signup and view all the answers

How has IT impacted small and medium/mid-size enterprises (SMEs) in travel?

<p>By helping them gain market power through access to distant markets. (D)</p> Signup and view all the answers

In what way did the aviation sector first incorporate IT?

<p>With the implementation of computer reservation systems. (C)</p> Signup and view all the answers

Flashcards

Information Technology (IT) in Tourism

The backbone of the tourism industry, providing services by connecting customers, the travel industry, the hospitality industry, and other suppliers.

IT's Role in Service Requirements

Vital for efficient service delivery, providing potential tourists with easy, immediate access to textual and visual representations of destinations worldwide.

Product and Service Marketing in Tourism

Company websites communicate services, enabling travelers convenience when checking attractions, restaurants, and activities resulting in competition affecting how products/services are sold online.

Behavior and Performance Analysis Using IT

Observing potential buyers' behavior on websites to direct them to hospitality establishments and interconnecting industry suppliers with customers results in the ability to check establishments against competitors using IT.

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Regulatory Processes and IT

Systems such as accounting software approved by the Bureau of Internal Revenue (BIR) make compliance with tax reporting easy and online websites/applications provide access to compliances.

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E-Commerce Transactions

The distribution, purchase, sale, and marketing of goods and services through electronic systems such as the internet. Plays a massive role in tourism especially for businesses such as online travel agencies (OTAs).

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Global Distribution Systems (GDSs)

Computerized systems that integrate all types of travel reservations, and is the main tool of travel intermediaries when booking trips.

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Property Management Systems (PMSs)

Hotels utilizes these systems to process and manage activities regarding guests, rooms, accounting, housekeeping, and customer records.

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Destination Management Systems (DMSs)

Dynamic web-based platforms that integrate a wide range of information about tourism products for the purposes of web-based marketing and promotion.

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IT's Role in SMEs

Small and medium/mid-size enterprises gain market power as they now can access distant international markets in the same way as large multinationals.

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Study Notes

  • IT is essential to the tourism industry and connects customers, travel, hospitality, and suppliers.

General Service Requirements

  • Service in tourism is constantly changing, and IT facilitates efficient service delivery.
  • IT provides tourists easy and instant access to global destinations via text and visuals.
  • IT streamlines airline transactions like bookings and ticket issuance, ensuring speed, reliability, and accuracy.

Product and Service Marketing

  • Traditional marketing is less effective than marketing tourism online to a broad audience.
  • Company websites help tourism attractions communicate their offerings.
  • Online platforms allow travelers to easily research destinations.
  • Competition drives businesses to offer better products and services online at competitive prices

Behavior and Performance Analysis

  • IT allows observation of potential buyers' online behavior when browsing websites, and businesses can monitor how many visitors they get daily.
  • Businesses can also monitor how many visitors view the websites at one time.
  • With information technology business can evaluates travel patterns and improve website satisfaction.
  • Monitoring competitor data on booking websites, like room availability, allows businesses to assess their performance.

Regulatory Processes

  • IT applications facilitate business regulatory compliance, aiding with tax reporting through approved accounting software.
  • Many businesses use online platforms to comply with government mandates, such as SSS e-payment services.

E-Commerce Transactions

  • E-commerce involves the online distribution, purchase, sale, and marketing of goods/services, using electronic systems.
  • Processes include electronic fund transfers, data exchanges, automated inventory management, and data collection.
  • IT is integral to online travel agencies (OTAs), streamlining transactions and enhancing business partnerships.
  • It provides immediate travel, tourism, and hospitality information.

Applications of Information Technology to Specific Tourism Sectors

  • IT impacts communication, competition, strategic planning, product value, cost savings, and operational efficiency across tourism sectors.

Aviation Sector

  • The aviation sector significantly uses IT innovations, starting with computer reservation systems in the 1950s.
  • Global Distribution Systems (GDSs) integrate various travel reservations and are essential for travel intermediaries.
  • Frequent-flyer programs use sophisticated database technology.
  • Self-check-in terminals and smartphone check-ins have been introduced to decrease labor costs and speed-up airport procedures.

Travel Trade Sector

  • Technology significantly impacts the travel trade sector, endangering traditional intermediaries.
  • Travel suppliers adapt to disintermediation by allowing travelers to access information directly.
  • Intermediaries specialize in niche destinations/products or leverage bulk buying for competitive rates to cope with the changing landscape.

Hospitality Sector

  • Hotels use property management systems (PMSs) to manage guest information, room management, accounting, and housekeeping.
  • Electronic locks, digital keys, room automation, voice command, energy management, virtual concierges, and self-check-in terminals are increasingly common, especially in business hotels.
  • Fully automated experiences enable guests to complete their stay without direct interaction.

Destinations

  • IT integration into marketing and management is crucial for tourism destinations.
  • Destination Management Organizations (DMOs) use destination management systems (DMSs).
  • DMSs are dynamic web-based platforms that integrate tourism product information.
  • Web-based marketing strategies include search engine optimization and online advertising.

Traveler

  • Travelers benefit from IT through social media and mobile technologies
  • Universal access to destination information, travel organizations, and experiences.
  • IT helps small and medium-sized enterprises (SMEs) access international markets like larger corporations.

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