International Journal of Applied Services Marketing Perspectives

Volume 1, Number 1, July -September 2012

AN OVERVIEW OF INFORMATION TECHNOLOGY IN TOURISM INDUSTRY

Anju Gupta1
ABSTRACT
The Importance of Information Technology in Tourism, Especially of the World Wide Web, has increased tremendously over
the past years and this trend will certainly continue. ITs provide both opportunities and challenges for the industry. IT is
crucial to the tourism industry and its success.
Various high-tech information and communication technologies are in use in the tourism sector around the world. They are
used for tourism product development, marketing, distribution and training of tourism sector personnel. These technologies
are so indispensible in order to find out and satisfy the ever-changing demands for tourism products.
This article looks at the different uses of information and communication technologies in tourism sector. It examines the
impact of ICT on tourism industry and the new and innovative technologies which are used in tourism industry. It also
indicates the problems and issues concerning information technology applications in tourism.
KEYWORDS
World Wide Web, Information &d Communication Technology (ICT), Tourism, and Information Technology (IT) etc.

INTRODUCTION
Though there are many definitions for tourism, it could be simply defined as a travel and stay of a non- resident. In order to
travel to a particular area there must be a reason. For example a person may travel for leisure, business, visiting friends and
relatives, health education etc. He/ She choose a destination for one or other reason (Mekonnen G / Egziabher, 2001).
Tourism has a significant economic impact at an international, domestic and regional level. This impact is underlined by statistical
evidence demonstrating the significance of tourism in terms of GDP, employment and economic development.
The tourism industry can be seen as one of the first business sector where business functions are almost exclusively using
information and communications technologies (ICT) (Garzotto et al, 2004). Information Technology (IT) and ICT has played an
important role in the development of tourism. Computerized Reservation System (CRS) were among the first applications of IT
worldwide.
In fact ICTs have contributed to the massive growth of tourism and the increased volume of supply and demand. ICTs have been
changing the way in which tourism companies conduct their business. E-Tourism therefore emerged as a term describing the
entire range of applications of ICTs on tourism industry.
TECHNOLOGY & TOURISM
Tourism in its present form is a post war phenomenon developed essentially as a consequence of technological developments in
the field of automobiles, railways, ships, aircrafts, computers and communication system. Although sails were the earliest means
of transport, the invention of steam powered automobile by Nicholas Joseph Cugnot in 1769, the assembly of the first commercial
steamer by Robert Fulton in 1807 and the production of first successful locomotive by George Stephenson in 1814 Introduced
Several means of mass transport. It was, however, the advent of air transportation during twentieth century which revolutionized
the phenomenon of international tourism. It reduced the distances between the nations to a matter of few hours (G. Raveendran,
2001, Department of Tourism Transport Bhawan, New Delhi).
Though the role of IT as a catalyst for competitive positioning in businesses was recognized as back as the mid-1980s (Porter,
1985), it was not until the early 1990s that its strategic potential was acknowledged by the tourism and hospitality industry (Cline
& Bhatt, 1998; Olsen, 1996).
The developments in computer and communication technologies have made it possible to have rental cars with computerized
driving directions and self service video- terminals at rentals counters in high traffic airports. Fully automated rental transaction
system Nationals Smart Key machine and Budgets Remote Transaction Book came into existence. Yet another major
contribution of technological developments in computers and communication systems to tourism is the Computerized Reservation
System (CRSs) in the 1970s and the Global Distribution System (GDS) in 1980s. The dawn of the age of personal computers
(PCs) coupled with the advent of multimedia content has thereby spurred the interactivity between suppliers and consumers
(Bubly & Bennett, 1994). The IT revolution has induced Business Process Reengineering (BPR) in virtually all sectors of the
economy and tourism is no exception.

Assistant Professor, Department of Commerce, DAVC College, Haryana, India, anjugupta78300@gmail.com

Pezzottaite Journals, Jammu & Kashmir, India.

International Journal of Applied Services Marketing Perspectives

Volume 1, Number 1, July -September 2012

APPLICATION OF IT IN TOURISM INDUSTRY

Till a few years ago, the basic sources of information in the tourism sector were pamphlets, brochures, and directories, guide
books etc. produced and published by different countries. These sources prevail even today, though they are the most inefficient
means of information.
Geographical Information
With the help of internet geographical information on location climate, landscape etc. can be given to tourist. The CD-Rom
technology took the tourism industry by storm. CD titles which came in the market during the initial period mostly contained
geographical information. Several such titles are presently available in the market.
Attraction Features
In the attraction sector the establishment of tourist information centers is of special significance. Attraction owners with the use of
ICT can communicate their customers directly and effectively, both for marketing and distribution of their products. In natural
attraction areas like in the national parks, the use of ICT is important in protecting the resource. The attraction owners particularly
the national tourist offices discharge their duty of promoting their countrys tourist attractions using the information technology
products. Information through promotional videos, internet web sites, television advertisement and travel documentaries are the
main information dissemination tools (Manjula Chaudhary, 2008).
Accessibility
With the help of ICT the information of accessibility though air, water, rail, roads and availability of scheduled means of
transport, can be given to customers. Before setting out on a Journey of any kind, every traveler makes sure which transport co.
has a good safety record. To this effect, airplanes coaches and even taxis are equipped with good communication equipment. An
airplane flies with the help of modern information technology equipment which provides information ranging from weather
altitude and other information to the pilot etc. In the case of buses / coaches and taxis, in many countries with developed tourism
business, they are equipped with radio communication system for various uses. For example, the driver or the tour guide updates
the tour company headquarters about the progress of the tour throughout the touring period. This communication ensures the
safety of tourists (Mckonnen G/Egziabher, 2001).
Accommodation
In the accommodation sector also the contribution of information technology is prominent. Any individual or group wishing to
travel to any part of the world now has an easy access to the accommodation service providers. A visitor can access an
information about the kind of hotels at the destination, their range of product, the price and other relevant information without
leaving his/her office or home. Here the information can be obtained aided by still or moving pictures in order to give an exact
feature of an accommodation (Nath and Menon, 2005).
Activities and Entertainment facilities
In- flight entertainment is also a product of information technology. Video games, video films are some of the examples.
Season of Visit
With the help of ICT, the information regarding in which season the tourists should visit to a particular place can be given. For
example, in the hilly areas, people like to go to enjoy the snowfall season this information can be obtained from internet based
web sites.
Quality of Facilities and Their Standard Prices
So far it has been dealt with an information technology where intermediaries, travel agents, tour operator etc. are an indispensable
part in the distribution and marketing of travel and tourism products, and as an important point of sale or product outlets. Here I
will discuss about an information technology where the producer and the consumer are directly communicating by putting the
indispensability of travel intermediaries in question. The intangibility of the product where risk and uncertainty for the customer is
higher, his need for reliable pre-purchase information is stronger. The potential customers decision risk and dependence on
information is decreased with the help of ICT because he can see, inspect, compare or try out tourist services before deciding to
use them.
Marketing
Tourist product and destinations are better advertised via the internet rather than traditional means, like brochures, advertising
catalogs etc. Furthermore, ICTs allow direct and interactive relationships between tourism organizations and customers. But the
most interesting perspective of ICTs applications on marketing is that, companies can build a customers profile and make
personalized offerings (Stiakakis & Georgiadis, 2009).

Pezzottaite Journals, Jammu & Kashmir, India.

International Journal of Applied Services Marketing Perspectives

Volume 1, Number 1, July -September 2012

INFLUENCE OF IT ON THE STRUCTURE OF TOURISM INDUSTRY

An interesting issue to deal with is what actually the internet and the other ICTs mean for tourism organizations. Is the use of
internet a competitive advantage for the tourism industry? For this first of all, we need to examine the impact of the internet on
tourism industry structure. According to Porter (2001), the underlying forces of competition which determine the structure of an
industry are the same irrespective of whether this industry belongs to the traditional or new economy.
Rivalry in the Market
The competition of tourism organizations over the internet is much more intense. It is mainly a price competition instead of
offering a product of better quality or differentiating the service package. Another argument that competition will continue to
increase is that numerous non- tourism organization are entering the sector and start to provide online tourist services. Hence the
effect of the internet on rivalry is strong negative (Antonio, Andres and Roman, 2010).
Barriers to Entry
The barriers for a new entry to E-tourism have been minimized, since the technological obstacles as well as the necessary
resources to start up an online business (Capital, personnel, etc) are very limited, compared to traditional tourism business so the
effect of the internet on barriers to entering is moderately negative.
Threat of Substitutes
It is nowadays easy, costless and not time consuming to find substitutes for any tourism business via the internet (rooms to let
instead of hotels, transportation by rail or ship instead of airlines etc). Even if we looked for substitutes for tourist products and
services outside the tourism secretor, we would be amazed by the many alternatives the internet provides, (entertainment cultural
and sporting activities etc). It is concluded that the effect of the internet on threat of substitute is moderately negative (E.
Stiakakis, Georgiadis, 2009).
Bargaining Power of Suppliers
Tourism organizations are capable of offering their products and services via the internet to more customers without depending
upon any traditional intermediaries. This implies a better bargaining position of supplier. However, suppliers will continue to
work with online intermediaries, thus leading to another kind of dependencies. Consequently, the internet seems to have a slightly
positive in parallel with a slightly negative effect on bargaining power of suppliers (Karanasions and Burgess, 2008).
Bargaining Power of Buyers
The direct relationships between customers and e-tourism organizations have increased the bargaining power of buyers.
Moreover, as customers become more familiar with the internet technology, their loyalty to specific providers will decline; in
combination with the low costs of switching a supplier over the internet, the bargaining power of buyers will also strengthen.
Hence the effect of the internet on bargaining power of buyers is strongly positive (Powell & Micallef, 1997).
NEW & INNOVATIVE TECHNOLOGIES
The last few decades witnessed the application of computer and communication technologies in the field of tourism. Two distinct
streams of information sources viz, Online and Offline came into existence. Some of new technologies which came into existence
are as under:
CRS (Computer Reservation System)
The airline CRS systems were the pioneers of computer applications in the 1950s and are now virtually indispensable in the
airlines because they enable their revenues streams to be maximized by efficient inventory control. The emergence of
computerized reservation system (CRS) like Galileo, Amadus, Sabre Pars, Jalcom, Qamtam and Abasus etc opened up a new
source of online information on tourism and are being expanded continuously The latest source of online information is internet
which contains some pages on most of the tourist destinations in the world. (G. Raveendran, 2001).
The technology works by using computers of special kind and leased telephone lines. The travel agent is connected online to the
central host computer system or CRS. The host computer is almost always a mainframe with massive database attached. The
mainframe host polls each travel agent terminal every second or so, to see if it has any massages to send. In this system it is
possible that airlines, hotels and car rental companies can talk to the travel agent and vice versa. This system contributes to a great
extent in increasing sales volume and giving precise information on the availability and selling the products efficiently ensuring
substantial profit gain (Mekonnen G / Egziabher, 2001).

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International Journal of Applied Services Marketing Perspectives

Volume 1, Number 1, July -September 2012

Global Distribution System

GDS is a form of inter organizational system, evolved from computer reservation systems and enable the aggregation of
information from airlines which enables travel agents and tourists to make reservations and order other services in a single
marketplace (Joo, 2002). There is increasing debate concerning the long term viability of large GDSs. The systems themselves
are dated, based on 1960s architecture and code, never intended for use (Pease & Rowe, 2001). Unlike the CRSs used solely by an
airline or hotel chain, GDS distribute more than one CRS to users who are usually travel agents. Some leading GDS are Amadeus,
Galileo, Sabre and world Span (Nath & Menon, 2005).
This world leading GDSs are switches or simply computers that are connected on the one side to many different supplier systems
and on the other side to many end users. The end users of switch comprise travel agents with a single reservation system to
support the sale of airline seats and related travel products such as hotel and car hire, via a single computer terminal, usually a
personal computer. GDSs require massive investment because they are extremely large computer systems that link several airlines
and travel principals in to a complete network of PCs, telecommunications and large mainframe computer (Buhalis D, 1998).
Internet Forums
An internet forum is an online facility that provides local businesses with an internet portal using the locale or an industry
particular to the locale, as the unique selling point, or common brand (Galway, Mochrie & Deakins, 2004). This acts as an anchor
providing more of a profile to entire visitors to the website that represents the location or destination. This internet based virtual
business forums assist tourist operators in rural areas.
By developing a strategic approach that adopts a clear identity focusing on the destination and its features encapsulated in an
integrated website, the forum concept has significant merit with respect to regional tourist destinations (Pease & Rowe, 2001).
Collaborative Filtering
Collaborate filtering is a data mining type of software. This type of application uses the power of customer databases to identify
customers who have similar profiles like preferences, interests and travel patterns etc based on previously accumulated customer
knowledge. The findings are used for direct marketing. Great examples are Amazon.com Barnes & Noble and Skymall (Antonio,
Andres and Roman, 2010).
Video Conferencing
Developing any product needs data input and discussion to confirm the viability of a product. Nowadays it is quite possible to
exchange data and hold discussions between producers and researchers or producers and marketers in any part of the world
without leaving ones office. This is done by the use of the information technology called video Conferencing. The technology
works using PCs so as to enable people to meet one another (Mekonnen G /Egziabher, 2001).
Electronic Travel Authority System
Facilitation is one important aspect of enhancing tourism business. Facilitation includes, issuing of visa, customs clearing and
immigration check in ports. Lack of appropriate management in giving fast and efficient service to tourist in this area will deter
the tourist flow substantially. Recently, development has come about in using electronic medium for facilitation purpose that is
called ETAs (Electronic Travel Authority System). This is Automated Visa Application System (Michael & Steiner, 2003).
The Internet and Cultural Tourism
Cultural tourism is a good example of the way in which online technologies have been influential as its emergence has been
fostered by the internet. Cultural tourism focuses on the presentation of an area cultural heritage, ranging feom environmental
attractions through historical, artistic, archaeological and folkloric components. A specific example of this form of tourism is the
MEDINA (Mediterranean by internet access) project started in 2002 (Gazotto et al. 2004). By this the information to tourist is
given through mobile devices, which allows the tourist to make informed decisions concerning cultural sites (Badnjeric &
Padukova, 2006).
Knowledge Based Software
This software is based on the belief that people want more choices but they just do not want to be burdened with those choices.
This type of software takes criteria set by customers and goes into digital databases. It then gets available choice for the
customers. This type of software not only automatically finds information for customers but also narrows down the choices and
lets customers find the best deal (Gretzel, Yuan & Fesenmaier, 2009).
Personalization Software / Profiling
Personalization software is also a form of data mining. This software rests on the belief that people live busy lives and want other
people to look after their needs. This type of software tracks and monitors the preferences and purchasing behaviors of customers.

Pezzottaite Journals, Jammu & Kashmir, India.

International Journal of Applied Services Marketing Perspectives

Volume 1, Number 1, July -September 2012

Thus it can customize products / services based on needs and preferences and perform direct marketing accordingly (Nath &
Menon, 2005).
Electronic Payment
This type of software enables electronics transactions. It simplifies a very complex buying payment process that leads to a by
passing of intermediaries. It lowers the entry barriers into the tourism industry and increases competition and helps in understating
the relationship between the effect of ads and purchase patterns.
Online Word of Mouth (WOM) Monitoring
Consumer to consumer interaction contributes the most to the success of web-based advertising. Like through conventional
communication channels such as phone and mail, people share their travel experience on the web. Statistical evidence shows that
there are more and more people using different features of the internet (i.e. email, chat) to keep in contact with their friends and
relatives. Tourism organizations have the ability to influence conversation related to the travel product and the end destination
through WOM. Providing a virtual community for people to share their experience and stories is the most common example
(Gambia, 2008).
Virtual Reality and Web Casting
Virtual Reality displays three - dimensional world web casting provides online live videos and events. Two things could happen:
one is the loss of intrigue. Intrigue is one of the reasons that motivate people to travel. If people can go on the internet and
experience cyber space vacations, they may lose their motivation to visit that place in the real world. The other thing is the
balance between advertisement and reality. If people obtain an accurate view of the destination before they visit it they are going
to have really well formulated expectations of what they will see at their travel destination (Ulrike & Yuan, Fesenmaier, 2009).
THE PROBLEMS AND ISSUES
The problem and issues concerning information technology application in tourism are as following:

Inadequate and unreliable telecommunication information.

ICTs do not guarantee profitability unless their adoption is related to the companys strategy.
The cost involved with adopting and using ICTs.
The lack of relevant knowledge and skills.
Tourism especially in India is relatively young and is not well organized to absorb the advances in information
technology. They generally lack technical and financial resources and their scale of operation is too limited to take
advantage of information technology.
There has not been any specific policy or coordinated approach so far for the development of information products on
tourism at the national level in India. It is yet to be evolved and implemented.
The information industry in India presently consists of a few software development firms and some information centre
in the government sector. However there are no database vendors in India who prepare there own databases and market
them. In the absence of such units, all efforts are government dominated and the products are generally not available in
the market. It is therefore essential to provide adequate government support and incentives for the development of such
industry in India.

CONCLUSIONS
In this paper, many of the prominent mediums and uses of IT in the tourism industry is discussed. As can be seen they have
enormous contribution to tourism business worldwide. It is noted also that, because of the special characteristics of tourism
products, the use of IT is more pronounced in this industry. The impact of using information technology on tourism industry is
also discussed.
The paper discussed the various technologies available to enhance the exising infrastructure. The technologies mentioned are
mostly applicable in advertising and attraction sectors. Using the modern technologies, the present situation of tourism in whole
can be improved tremendously. At the end, the problems relating to application of ITs in tourism industry is also discussed. To
conclude this, we can say, that the development of tourism industry cannot be achieved without keeping pace with development of
information technology.
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