Tourism IT Chapter 3: Travel Intermediaries

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

• 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.