ICT Use Is Applied to the Tourism

¶ … ICT Use is Applied to the Tourism and Hospitality Industries

This work in writing conducts a critical evaluation of how use of ICT is applied to the tourism and hospitality industries. This work in writing will evaluate the Disney hospitality and tourism website located at http://disneyland.disney.go.com/.

The United Nations Conference on Trade and Development reports that the tourism industry has undergone a transformation by the information and communication technologies (ICT) and that the Internet has "dramatically changed the way in which consumers plan and buy their holidays. It has also affected how tourism providers promote and sell their products and services." (2002) The market for tourism is reported to be highly reliant on information and stated as an example is "A consumer in Canada wanting to stay in a remote hotel on a Thai island needs up-to-date information about boat connections, activities on offer, and even recommendations from other travelers. The Internet enables the providers of all these types of products and services to interact directly with consumers around the world at a relatively low cost." (United Nations Conference on Trade and Development, 2002)

ICT can be used for information exchange about products and services and serves to enable everyone involved in the tourism industry to have knowledge about the services being offered. The United Nations Conference on Trade and Development reports that developing countries are "major tourist destinations. However, a large proportion of the profits from tourism drain out of the world's poorer nations and back to large travel firms, hotel chains, and booking and transportation providers based in developed countries. The Internet offers a chance to change that pattern. Tourism providers in developing countries can access customers directly. Their websites can offer authentic flavor, unique insights and specialized local knowledge that a big international provider can't. The challenge for developing countries is to reorganize tourism services so that they can benefit from ICT. Well-designed websites can allow local companies to offer tourists a full package, including reservations, flights, and currency exchange. That way the profits can stay at home and contribute to job growth and economic development." (United Nations Conference on Trade and Development, 2002)

Developing countries are enabled by ICT to attract approximately 35% of all international travelers annually. These countries are in the process of developing strategies for e-tourism and in fact, at least 24 developed countries have tourism websites. The problem is that these websites "…don't reflect the wealth of local tourism producers and don't allow booking and payment." (United Nations Conference on Trade and Development, 2002) However, as shopping by Internet in the tourism industry increases it will be necessary that governments as well as national and regional tourism organizations in developing countries "focus on spreading Internet access and setting up linked websites that can cover the entire "value chain" behind international travel. A major challenge will be overcoming domestic bottlenecks in technology, payments, telecommunications, and computer adoption and use." In order to overcome bottlenecks, dialogue is needed among all the various organizations and individuals involved in tourism and towards this end it is reported that the UNCTAD E-Tourism Initiative uses a partnership approach to harness the potential of ICT for tourism in developing countries." (United Nations Conference on Trade and Development, 2002)

The work of Cantoni, Kalbaska, and Iversini (2009) entitled "E-Learning in Tourism and Hospitality: A Map" published in the Journal of Hospitality, Leisure, Sports & Tourism Education reports that tourism "has always been described as an information intensive domain (Buhalis, 2000; Gretzel, Yu-Lan, & Fesenmaier, 2000), where information processing and gathering is essential (Sheldon, 1997) for day-to-day operations. Furthermore, recent advances of new technologies have radically reshaped the tourism industry (Buhalis, 2003), changing both ways of communicating with prospective tourists and ways of purchasing tourism goods (Werthner & Klein, 1999)." Tourists are reported to be using new media for purposes of communication and this in on the increase. Tourism managers are reported to understand "that, if properly managed, new technologies can generate a tremendous added value for their organizations. Additionally, recent technological developments and the spread of the internet are having a notable impact on the education process: transforming educational curricula, learning materials and instructional practices (Sigala, 2002)." (Cantoni, Kalbaska, and Iversinis, 2009)

It is reported that the tourism and hospitality industry "has been described as an industry with one of the highest levels of skill shortages and staff turnover." (Cantoni, Kalbaska, and Iversinis, 2009) Training has been reported to be "a critical success factor for the hospitality industry, a factor which is considered to be expensive and time consuming." (Cantoni, Kalbaska, and Iversinis, 2009) However, there has been little in the way of attention "…paid to the role that new technologies already play in the tourism learning sphere, now and in the future." (Cantoni, Kalbaska, and Iversinis, 2009)

It is reported that Sigala (2002) "indicated that the Internet in general and eLearning in particular, offers great flexibility to match specific conditions of work within the tourism and hospitality sector." (Cantoni, Kalbaska, and Iversinis, 2009) Additionally it is reported that eLearning serves to prepare "…students of tourism and hospitality programs to think critically, solve problems and make straight decisions, while being technologically competent." (Cantoni, Kalbaska, and Iversinis, 2009) It is reported that attempts have been made "…to understand and represent the use of eLearning in hospitality and tourism." (Cantoni, Kalbaska, and Iversinis, 2009)

Specifically the work of Braun and Hollick (2006) discusses "how flexibly delivered online skills and knowledge sharing could help capacity building in the tourism industry." (Cantoni, Kalbaska, and Iversinis, 2009) In addition, the work of Haven and Botterill (2003) is reported to have "…reviewed the existing and potential exploitation of virtual learning environments within hospitality, leisure, sport and tourism." (Cantoni, Kalbaska, and Iversinis, 2009) It is reported that destination management organization online learning is a category of training courses created by destination management organizations on three levels:

(1) Representation of a country;

(2) Regional (administrative and geographical part of the country); and (3) Local (capital, city of even a smaller tourist destination)." (Cantoni, Kalbaska, and Iversinis, 2009)

The report states that the geographical distribution of online educational courses in hospitality and tourism is "almost equal: national training courses such as the Mauritius Tourism Training course or the South Africa tourism expert course comprise 45% of the total number (14 courses out of 31), regional courses, such as the Scotland Tourist Board Training or South Pacific Specialist online training for travel agents account for 29% (9 courses) and local courses, such as Abu Dhabi Tourism Champions or Puerto Vallarta elearning Campus generate 26% (8 courses). The main target is travel agents who, with the help of such training, should be able to better communicate and sell the country as a tourist destination, improving the service and knowledge level they can offer to their customers. The main topics presented in these courses cover areas such as: factual information about the country (history, geography, political organization, culture, languages, etc.), presentation of the main attractions, formalities (health issues, visa, custom), information on accommodation, catering, and entertainment. " (Cantoni, Kalbaska, and Iversinis, 2009)

The next category is stated to be associated "with all the course whose provider is a third party other than an academic institution, a tourism enterprise, or a destination management organization, but the main topic of the course remains within tourism and hospitality industry. There is no one clearly identified target in this category, as the courses could be used by all the users interested in the industry: from school children checking their geography knowled8ge, to university students trying to pass a test and get a certificate in English Language in Tourism and Hospitality, to adults who are eager to challenge themselves and get a certificate in Amadeus Online Training or pass a Culinary Tourism Course, to senior people who are interested in travel writing." (Cantoni, Kalbaska, and Iversinis, 2009)

It is reported that 10 main sub-categories are identified as follows:

(1) Introduction to hospitality industry;

(2) Tourism management;

(3) Sales a8nd retail activities;

(4) Catering;

(5) Foreign languages (mainly English) in tourism;

(6) Independent travel agent trainings;

(7) eco-tourism or sustainable tourism development

(8) e-skills development

(9) Cabin crew training

(10) Travel writing Cantoni, Kalbaska, and Iversinis, 2009

Sigala (2001) writes that there has been a "tremendous increase in the adoption and diffusion rates of multimedia technologies by hospitality and tourism businesses…" Sigala writes that multimedia technologies "…are being recognized in industry and academic circles as a significant engine for productivity improvement and business opportunities for enterprises in the 21st century. Indeed, an increasing amount of literature and research advocate how tourism and hospitality businesses can harness multimedia technologies in order to operate more 8 efficiently and effectively as well as to create and add value in their offerings." (2009)

Sigala relates that the "latest technological advancements will be instrumental in the industry's ability to enhance their future efficiency and strategic competitiveness. Hospitality and tourism businesses are highly information intensive." (2009) Poon (1988) is reported by Sigala to have stated that information "…is the lifeblood of tourism." (2009) Sigala states that multimedia technologies are "…being referred to as the technological wave of ICT developments and are defined as "a host of computer-delivered services made-up of textual and no-textual information that integrate several sources of media and data such as video, graphics, animation, audio, text." (2009)

Multimedia is "an all-embracing term that cuts across a wide variety of ICT vehicles and tools [i.e., interactive/digital television, Internet and its applications (E-mail, WWW, etc.,), other Web-based networks such as intranets and extranets, interactive CD-ROMs and DVDs (digital versatile disc), videoconferencing systems, multimedia PCs or palmtops, virtual reality, etc.]." (Sigala, 2009) A primary aspect of multimedia is that of 'interactivity' which is reported to be define8d as "actions or methods used to actively participate with the content of a program which has been designed to respond in a very specific way to each decision, choice, or request made by the user. (Sigala, 2009) Furthermore, interactivity is reported to ensure "…a bidirectional flow of information between user and multimedia, easy navigation and search, and use of multimedia databases that on the whole enhance multimedia's user-friendly operational environment. Overall, multimedia technologies can more effectively and efficiently create, distribute, and manage information." (Sigala, 2009)

Radhakrishna (2010) reports that the following measures were found to increase the Marketing Campaign for hotels::

(1) Pre-test to weed out ineffective advertisements;

(2) Determine advertisement budgets strategically;

(3) Media continuity, not concentration;

(4) Use promotions tactically;

(5) Tactical coordination of marketing communication;

(6) Redefining the scope of marketing communication;

(7) Application of information technology; and (8) Financial and strategic integration. (Radhakrishna, 2010)

The OECD Conference on Innovation and Growth in Tourism (2003) reports that the tourism industry "…has always been very proactive regarding the adoption of new technologies." The tourism industry has a new potential in terms of its telecommunications, networking, database, data processing and electronic marketing in addition to these having a significant impact on the traditional tourism business model. Information and communications techno8logy "value to tourism services and products and supports the development of industry networks and clusters." (OECD, 2004, p.6) The OECD report states that consumers today are "…becoming increasingly familiar with the use of ICT in their tourism arrangements. They seek flexible, specialized and easily accessible products and would like to communicate directly with tourism producers. Therefore, tourism enterprises inevitably need to adopt innovative methods to enhance their competitiveness. To take advantage of this ICT revolution, entrepreneurs need to reengineer the entire marketing process of the industry. Internet technology offers enterprises and consumers great potential for online direct business. ICT is changing the way travel and tourism services are distributed and is also inc8reasing efficiency, quality and flexibility in the marketing and distribution of tourism products and services." (OECD, 2004, p.6)

According to the OECD, e tourism is presently "rather marginal in total tourism turnover for the time being however, Internet travel sites are reported to "…demonstrate some of the highest online sales performance. Internet distribution of travel and tourism products can generate substantial cost reduction advantages for providers of tourism services but also for consumers. The Internet represents a practical tool for providing the consumer with all the up-to-date tourist information on the destination. For the economy as a whole, there is no doubt that travel and tourism contribute largely to transform internet into economic growth by creating innovative and profitable e-business tourism models." (OECD, 2004, p.6)

The stated challenge is development of policy instruments focused on tourism innovation and network facilitation for the purpose of "…innovation in tourism and related to the facilitation of networks "for innovation of tourism enterprises and destinations." (OECD, 2004, p.6) The OECD report states that since branches of the tourism industry which include such as hotel chains, airlines, tour operators and car rental agencies which all of which are reported to be "high concentrated and act as global players" and simultaneously the small and mid-size tourism enter8prises are experiencing increases in competition, the market conditions are enhanced. It is reported that tourism firms should make an attempt to "…enter into competition that is constructive rather than destructive. While the former would make the pie bigger, broaden the product platform and finally gain successful product differentiation and innovation for world-class products, the latter would keep firms competing for the same slice of the pie and result in product convergence and price wars. It is therefore important that tourism entrepreneurs know how to co-operate with each other in order for there to be constructive competition." (OECD, 2004)

Online intermediaries are reported in the work of O'Connor and Murphy (nd) to be such that "attract[s] consumers-based 8on their convenience, rich feature set and highly competitive prices. Supplier sites cannot compete on these dimensions and instead need to leverage their customer relationships to build and retain loyalty. They suggest that by using sophisticated CRM techniques, hotels can combat the online intermediaries. By developing close customer relationships, they reduce the danger of substitution, thus helping to insure long-term profitability." Dale (2003) is reported to have identified five categories of relationships in the tourism industry including those as follows:

(1) Channel - enables one company to access the distribution channels of another;

(2) Collaborative, where competitors cooperate with each other to achieve goals that would be difficult in isolation;

(3) Communicative, where content from infomediaries enriches and adds value to partner websites;

(4) Complementar8y, where companies cross sell products normally bought together (e.g. flights and hotel rooms); and (5) Converse, where the partners distribute unrelated products, thus allowing each one to access the distribution channels of the other in a non-threatening manner. (O'Connor and Murphy, 2010)

O'Connor and Murphy (nd) relate the prediction that competition in the tourism in the future "will be dictated more by the network of partners as a whole than by a single intermediary, and advises firms to participate in such networks unless they want to be left at a competitive disadvantage" (cited in O'Connor and Murphy, nd)

'Open Hospitality' is a provider globally of "hotel Internet marketing solutions." (Open Hospitality, 2011) Open Hospitality is reported as a "global provider of hotel Internet marketing solutions" and it was reported in 2008 that Open Hospitality and RateTiger "the highly successful revenue management solution by eRevMax, have signed a marketing agreement to deliver reservation processing via Facebook social media on a global basis. The agreement will enable hotels to utilize all the channel management capabilities of RateTiger to distribute inventory and rates to Open's online reservation booking engine on the hotel's facebook presence." (Open Hospitality, 2011) The following is reported on the applications of 'Open Hospitality: "Open Hospitality first quarter 2009 results demonstrate the power of our integrated Internet e-marketing and consumer booking solutions. Reservations volume increased 37% from the prior quarter. Hotel direct online bookings represented more than $50 million, just over 280,000 room nights. These results prove that hotels can increase contributions from their most profitable sales channel, even during tough times. Combining our strong booking capabilities with excellent e-Marketing solutions, enables our client hotels to foc8us on the Internet segment very cost effectively. As the economy rebounds, the travel sector will take time to fully recover but we have lost no time building new market share for hotels…" (Open Hospitality, 2010)

Open Hospitality includes QuickStart TM, a new cost effective solution that serves to generate an online presence immediately and one that enables the creation of hotel bookings. Open Hospitality reports that this "innovative Internet hotel booking solution enables hoteliers to have rapid impact with more potential consumers and then capture those bookings online. Internet-savvy travel bookers are on the rise, and QuickStartTM facilitates the online buying needs of these consumers. Hotels may select from a portfolio of over 20 expertly designed websites." (Open Hospitality, 2011) QuickStart TM provisions include those stated as follows:

(1) Powerful and proven web-booking engine

(2) 10 web pages that highlight the hotel's compelling content and images

(3) Data capture of traveler profiles

(4) Feedback surveys that cultivate customer retention

(5) Regular email marketin8g campaigns

(6) Reports and Analytics

(7) Complete web-hosting services. (Open Hospitality, 2011)

QuickStartTM is reported to makes provision of "an immediate access to a wider range of Internet marketing strategies at a fraction of the cost of buying these services individually. Open Hospitality clients attain prominent positioning on search engines thus increasing their visibility while gaining a competitive sales advantage." (Open Hospitality, 2011)

The OECD (2004) states the following recommendations for the tourism industry:

(1) Improve the internal dynamics of innovation in tourism by pushing firms to adopt a more proactive attitude towards innovation, notably through a shift from simple technology watch to economic intelligence.

(2) Improve the efficiency of national innovation systems: improve the training of operators and staff, develop the role of public and private agents, and stimulate research (e.g. create a genuine multidisciplinary network).

(3) Improve incentive systems for operators and employees. The extent to which governments can help the business sector become more innovative may be limited. However, they can create favorable framework conditions and encourage business to enhance productivity through innovation.

(4) Maintain the coherence of the tourism industry and its linkage with society as a whole. It i8s not possible to consider innovation in tourism without acknowledging the need to mobilize the local population. (OECD, 2004)

The work of Law, Qi, and Buhalis (2009) entitled "Progress in Tourism Management: A Review of Website Evaluation" reports that in qualitative studies, the researchers assessed website quality "without generating indices or scores." (Law, Qi, and Buhalis, 2004) The work of Jeidal, Sjovold and Heldal (2004) state the argument that the "combination of branding, human-computer interaction, and usability could enhance website evaluation." (Law, Qi, and Buhalis, 2004) The work of Liang and Lai (2002) are reported to have used a "consumer-based approach to derive functional requirements for e-store design and the empirical findings based on three e-bookstores showed that the quality of e-store design had a direct effect on the purchase decision making of students." (Law, Qi, and Buhalis, 2004) Jang (2004) reported that online information search is expected to become "a major trend among travelers; with online reservations for travel products and services becoming an important application." (Law, Qi, and Buhalis, 2004) It is reported that the quality and performance of commercial websites should be monitored.

The work of Pourabedin, Hosseini, and Nourizadeh (2011) states that travelers "browse tourism websites to access travel-related information for planning their trip/tours. In the past the quality and usability of information have been noticed as the vital aspect of tourism website design but the new challenge is converting website to a tool with high effective persuasiveness. Due to the rapid technological advancements, it is difficult for website designers to choose the best design features amongst the wide range of features in the purpose of attracting new customers and encourage them to return. Due to the rapid technological advancements, destination marketers must routinely evaluate their websites to ensure that the site is efficient, appropriate and useful to customers. So Design of destination website is very important, and should be evaluated regularly." (Pourabedin, Hosseini, and Nourizadeh, 2011) The following table lists previous studies and on website evaluation which have been conducted and the dimensions and features that were evaluated.

Figure 1

Website Dimensions and Features across Studies

88

Methodology

The methodology employed in this study is one of a qualitative nature. Qualitative analysis is interpretive and descriptive in nature. Therefore, the analysis of the website in this study is such that provides descriptive and interpretive analysis and lists the qualitative scoring in a chart designed specifically for the analysis in this present study.

Case Study

This report conducts a case study on the website located at: http://disneyland.disney.go.com / and uses the table as follows to evaluate the website.

Figure 2

Page loading speed

1

Business Content

1

Navigation Efficiency

1

Security

1

Marketing/Customer Focus

1

Planning, site management

1

site design

1

site content

1

Usability

1

Visual Attractiveness

1

Website content and functions

1

Language

1

Layout

1

Graphics

1

Total Scoring by Averaging

14

Scoring

1= Excellent

2= Good

3= Fair

4= Poor

Disney's website was found to be excellent in all categories as the website is visually appealing and has a high degree of ease to navigate. All information is clearly labeled and links are functional. Website content is informative and displayed in an appealing manner The marketing focus is on the customer. Graphics are visually appealing as is the layout of the website.

Other questions addressed in this study include those as follows:

Is the author clearly identified?

Yes No NA

Is there a way to contact the author? Yes No NA

Are there links to other sources?

Yes No NA

Does the web includes advertising?

Yes No NA

Are there references to works consulted?

Yes No NA

Can the information be verified?

Yes No NA

Is there has nothing to gain by presenting this information

Yes No NA

Is the site well maintained, vital and relevant to the topic?

Yes No NA

Is it easy to move forwards and backwards? Yes No NA

Is it easy to read, to follow and is it attractive to look at? Yes No NA