Podcast
Questions and Answers
What are the two types of tourism distribution systems discussed in the chapter?
What are the two types of tourism distribution systems discussed in the chapter?
What does GDS stand for?
What does GDS stand for?
Global Distribution Systems
What is the main function of a GDS?
What is the main function of a GDS?
To connect travel suppliers (airlines, hotels, car rental companies) with travel agents and other intermediaries, enabling them to book and access information about travel products.
What are some of the challenges faced by GDSs due to technological change and innovation?
What are some of the challenges faced by GDSs due to technological change and innovation?
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Traditional travel retailers have not adopted IT, and are still primarily reliant on manual processes.
Traditional travel retailers have not adopted IT, and are still primarily reliant on manual processes.
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What is disintermediation in the context of travel distribution?
What is disintermediation in the context of travel distribution?
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Which of the following are examples of online travel intermediaries?
Which of the following are examples of online travel intermediaries?
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What are some of the common features used by online travel intermediaries to enhance their offerings?
What are some of the common features used by online travel intermediaries to enhance their offerings?
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What is the primary purpose of a travel management company (TMC)?
What is the primary purpose of a travel management company (TMC)?
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What are some of the key benefits of using ERP systems in traditional travel retailers?
What are some of the key benefits of using ERP systems in traditional travel retailers?
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What are some of the key strategies employed by GDSs to adapt to the changing travel landscape?
What are some of the key strategies employed by GDSs to adapt to the changing travel landscape?
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What are some of the ways tour operators can use IT to enhance their business operations?
What are some of the ways tour operators can use IT to enhance their business operations?
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Which of the following are potential threats to online travel intermediaries?
Which of the following are potential threats to online travel intermediaries?
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What are some of the key issues related to pressure selling tactics employed by OTAs?
What are some of the key issues related to pressure selling tactics employed by OTAs?
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Sabre Corporation is known for being the world's first private real-time online transaction system.
Sabre Corporation is known for being the world's first private real-time online transaction system.
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Study Notes
Tourism Information Technology
- This is a third edition textbook
- Authors are Pierre J. Benckendorff, Zheng Xiang, and Pauline J. Sheldon
- Publication is by CABI
Chapter 3: Travel Intermediaries and Information Technology
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Learning Objectives:
- Explain, compare, and contrast traditional and digital tourism distribution systems
- Understand the evolution, role, and features of Global Distribution Systems (GDSs) as travel intermediaries
- Analyze challenges faced by GDSs due to technological change
- Explain how traditional travel retailers use IT
- Explain how IT has led to disintermediation and evaluate its impact on travel intermediaries
- Describe and critically evaluate different types of online travel intermediaries
- Explain how tour operators can use IT to improve productivity and competitiveness
Key Concepts
- Travel distribution system
- Computer Reservation System (CRS)
- Global Distribution System (GDS)
- GDS New Entrant (GNE)
- New Distribution Capability (NDC)
- Tour Operators and Wholesalers
- Travel Retailers
- Online Travel Agents (OTAs)
- Channel Managers
Traditional Travel Distribution System
- Suppliers (Airlines, Rail, Cruise, Car Rental, Activities & Events, Hotels)
- Supplier Reservation Systems (CRS, ARS, PMS)
- Global Distribution System (GDS)
- Switch
- Tour Operators/Wholesaler
- Points of Sale (POS)
- Call Centre
- Traditional Travel Agent
Digital Travel Distribution System
- Suppliers (Airlines, Rail, Cruise, Car Rental, Activities & Events, Hotels)
- Supplier Reservation Systems (CRS, ARS, PMS)
- Channel Manager
- Switch
- Internet Booking Engine (IBE)
- Global Distribution System (GDS)
- GDS New Entrants (GNEs)
- Destination Management System (DMS)
- Tour Operator
- Wholesaler
- Travel Management Company (TMC)
- Online Travel Agent (OTA)
- Meta Search
- Destination Marketing Organization (DMO) Website
- Point of Sale (POS)
- Supplier Website
- Social Media
- Mobile App
- Affiliate
- Traditional Travel Agent
American Airlines Advertisement
- Showing seat availability on wall charts
Evolution of Major Global Distribution Systems
- Timeline showing the development of various GDSs over time
Characteristics of Major GDSs
- Table showing details of GDSs such as Sabre, Amadeus, Travelport, Worldspan, Galileo, and Apollo, including their founding dates, founders, market share, and locations
Core GDS Functions
- Booking Requests
- Availability
- Passenger Information
- Rates and Conditions
- Ticketing and Itinerary Management
Secondary GDS Functions
- Integrated Travel Management
- Passenger Document Requirements
- Booking Ancillary Services
- Decision Support Systems
- Financial Management
- E-Commerce Tools
- Corporate Travel Management
- Communication & Scheduling
Traditional GDS 'Green Screen' Display
- Example of a traditional GDS display format
Sabre Red Graphical Workspace
- Screenshot of a Sabre Red graphical workspace, showing booking data and functionality
GDS Interfaces
- Diagram illustrating the connections between suppliers, the GDS, and OTAs through APIs
SWOT Analysis of GDSs
- Strengths, weaknesses, opportunities, and threats related to GDSs
GDS Trends
- Diversifying IT solutions
- Consolidation
- Connectivity and interoperability
- Transparency
- Personalization
- Social, Local, and Mobile (SoLoMo)
Tour Operator Use of IT
- Package creation
- Tour package distribution
- Reservations and customer management
Traditional Travel Retailers
- Front Office Systems
- Back Office Systems
- Accounting Systems
- Human Resource Systems
- Customer Relationship Management (CRM)
- Communication
- Commission Tracking
- Transaction Settlement
Enterprise Resource Planning (ERP) Systems
- Integrating back office functions
- Benefits: Productivity, reporting, customer satisfaction, forecasting
SWOT Analysis of Traditional Retailers
- Strengths, weaknesses, opportunities, and threats related to traditional retailers
Travel Management Companies (TMCs)
- Unique characteristics: Contracts, preferred suppliers, travel policy compliance, employee productivity, risk management, travel expense management
Types of Online Travel Intermediaries
- Aggregators
- Metasearch Engines
- Online Travel Agents (OTAs)
- Trip Planning Sites
- Affiliates
- Group Buying Sites
- Opaque Sites
- Product Review Sites
Online Travel Intermediary Innovations
- Opaque pricing
- Flexible date search
- Semantic search
- Dynamic packaging
- Search filters
- Matrix displays
- Low-fare notifications
- Pressure selling
- Alternative airport search
- Mapping
SWOT Analysis of Online Intermediaries
- Strengths, weaknesses, opportunities, and threats related to online travel intermediaries
Discussion Questions (Various Topics)
- Questions about challenges faced by SMTEs, differences between GDS and GNE, GNE's impact, choosing GDS for a new business, role & need for traditional intermediaries, impact of IATA's new distribution capability, disintermediation impacts, conducting SWOT analysis for TMCs, metasearch engine features, and pressure selling tactics.
Useful Websites
- List of websites related to travel technology and intermediaries
Case Study Sabre Corporation
- Sabre's founding, its evolution as the first private real-time online transaction system, its diversified range of IT solutions, employees, clients and acquisitions.
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Description
This quiz explores Chapter 3 of the 'Tourism Information Technology' textbook, focusing on travel intermediaries and the role of information technology in tourism distribution systems. You will learn about Global Distribution Systems (GDSs), their evolution, and the challenges they face due to technological advancements. Engage with key concepts and understand how IT influences travel productivity.
