Tourism and travel management principles

¶ … Tourism Distribution Network due to a mounting trend of ecommerce in the global market. The advent World Wide Web, Wireless Application Protocol and the integration of media with tourism, has somewhat halted the growth of traditional channels of travel and tourism. Thus, showing a prelude to eTourism, a modern concept of online or web-based distribution network, providing complete travel information and booking details only a click away. But this surge of information, economy and accessibility has also threatened the survival of traditional distribution channels like Travel Wholesaler and Regional Retailer Travel Agents. Which means where technology, sophistication and immediacy have brought forth new prospects of business in tourism, it also has a downside for traditional means of product and information transactions.

TOURISM DISTRUBUTION NETWORK.

Tourism has traditionally relied on travel wholesalers and retail travel agents but this isn't to prevail in the ever converging global village. Electronic media, Mobile and Wireless technology, has set forth a revolution in the boulevard of information and technology, thereby affecting the global business market of travel and tourism most powerfully. According to a research carried out by eTourism Newsletter, of the 58.5% of Americans who use the internet, 66% prefer online tourism websites over travel agents (. This is because web-based tourism channels are not only interactive, hassle-free and downright convenient, but they are also comprehensive, attractive, economic and above all instantaneous. Where electronic media holds prolific pros for tourism and travel sector, care should be taken for the protection and survival of retailers and wholesalers in order to sustain the traditional distribution system. This is possible by integrating electronic and traditional channels in a way they can harmoniously co-exist and conform to extract maximum benefits from the global market. For this reason, a single end of competitive advantage should be sought by both the channels. Improvement and revision should be done periodically to compliment and supplement required areas for maximum specialization and benefits. Tourism Sector, stakeholders and entrepreneurs should prioritize the flow of tourist information and product; enhance the efficiency and effectiveness of information transaction; encourage and support the integration of traditional and online channels and lastly develop and enhance the levels of communication and comprehension between tourism industry and electronic distribution channels.

GLOBAL NETWORK

Online reservations have increased dramatically thanks to technology. Taking from a tourist-market perspective, information can shape market strategies. Provision of information over the internet on trends and local/international market developments as well as ecommerce and commercial marketing opportunities on the World Wide Web is blowing out of proportions. Online business rate shows no signs of slowing down. Internet's ability to reflect modern lifestyles has brought about a marked growth of ticket sales over the internet. It provides an opportunity for marketers to interact with its customers on a single platform which in turn enables them to discover and exploit individual interests of target audiences. Top hotels, with an intention to remain in competition are installing internet facilities such as emails, pay-per-view and in room online access to their customers. Currently, the impact of e-business in travel is most visible in the growth of Internet reservation systems and automated check-in procedures.( Also, the airline industry seeks to embrace e-business technologies. Every segment of airline industry is undergoing major changes due to the internet technologies. In this way the propagation of new distribution channels in turn creates new opportunities for travel industry to employ creative and innovative market skills in order to build customer loyalty. All these undertakings assume major challenges of forming a cohesive strategy combining ecommerce in airline in such a way that it simplifies the life of a traveler rather than complicating it. The eticket of the future will probably combined passport and visa on a smart card. For provision of utility that e-ticket will have the facility to fly or re-book if necessary (.

ANALYSIS OF TRENDS

Technology and information has struck a new wave in the global market. The blend of information and economics, together under a process of globalization has set forth new rules of interdependence. This has fused tourism with numerous other business sectors, primarily mass media. Today, as tourism stands in line with various other global commodities, it competes and struggles to sustain in the hub of choices, diversity and superiority. A superlative quality of any tourism commodity can most effectively be conveyed through fastest, cheapest and reliant mediums. Therefore, as per the need of time, Tourism Distribution Network has converged with media and other business sectors. Emerging electronic mediums, for being the cheapest, fastest, most efficient, effective and most reliant means of transaction to time are a benchmark of this new chapter in tourism network. This has also increased the significance of media and its role in the dissemination of information regarding the product and services offered by tourism. In this way, the global convergence of technology has penetrated to best suit and serve the purpose of tourism distribution channels.

Due to the high paced lifestyle, customers look for instant and effective modes of interaction with travel agencies and therefore fall outside traditional channels of travel and tourism. Consumers are therefore likely to look for information and book able commodities through ticketing companies, global credit card companies or through tourism websites.

This has its connotations for all the players in the tourism industry. The social and regional institutions that were predominantly responsible for the proper functioning of national industrial societies are fast becoming inadequate for the same. Advances in technology are revolutionizing the world of retailing, communications and entertainment. This has a profound effect on the way we live, work and spend our leisure time. But in order to protect the traditional channels, it is important that tourism industry should best place itself for the future using both traditional and emerging online distribution channels. Despite the advances in technology, people still remember information best in form of stories. And to convey a message most effectively, it is important to communicate in the manner a recipient (of information) is most familiar and comfortable with. Therefore in many avenues tradition, human nature and old practices must be considered as an integral part of Tourism Distribution Network.

Technology is rapidly evolving into the most significant factor in tourism sector. Travelers need more comprehensive details regarding their trip and also a variety of choice due to increased consumer sovereignty. Also a changing trend towards more independent traveling requires more information during the trips. Thus fulfilling the need of time, traditional and emerging online distribution channels appear to be converging.

Since emerging online channels can transport information and transact in a more effective manner, this increases the efficiency of tourism distribution chain.

Consumer travel decision-making is now quicker and has a shorter lead time before the trips. Thus the need to place information early in consumer's inquiry is greater than ever before. This calls for greater consumer reliance on interactive inter-phases such as call centers or emails and voice recognition call centre servicing.

In order to absorb the changing trends and survive in the global market, cooperative efforts with non-traditional partners should also be explored. This would be a wise decision to curb non-traditional partners from taking away the entire premium in the wake of technological gale. These include organizations/firms that are capable of internet-based distribution. Such as Microsoft, Global credit card companies and various elements of media.

Growing consumer confidence in booking through internet is catalyzed by the offer of "web only" booking discounts, easy to use booking software engines, and accessible, reliable and fare databases. This encourages consumers to book online which is particularly obvious in point-to-point airfares for corporate travelers. As substantiated by a research carried out by Victoria Travel, revealing that a huge majority of internet users also have a high propensity to travel. Since internet users and tourism clients are so demographically close together, the correlation between their stats explains why information is so heavily sought online.

Therefore the web pages hosting Travel and Tourism Networks are astonishingly higher in comparison to those of the other businesses. A research reveals that there is almost double the number of internet web hosting sites for tourism than those of any other business.

The changing trends also anticipate gradual reduction of printed collaterals as the prices of print material; its transportation and distribution costs are too high in comparison to that of interaction via internet. However complete cast off is not likely as print collateral is an integral and traditional part of tourism and travel distribution channel.(

The present scenario on the whole portrays that there will be a growing opportunity for competitive advantage in the area of personalization by a travel agencies and customization for more attractive and conspicuous offers by better commercialization. The new technology also augurs a shift towards interactive television, mobile hardware customization, and third generation satellite mapping in cars. Competitive advantage is the name of the game.

OPPORTUNITIES AND THREATS.

A new competitive landscape has emerged due to the ever changing political, economic, social and technological scenarios. Software applications and mechanisms are transforming entire business setups and replacing man power. Tourism entrepreneurs need to understand this and react quickly by adding creativity and innovation to their business models. Technological convergence and global trends are disrupting the structures of traditional industry. The players of tourism industry will have to accept the effects of dynamism brought about by technology in the distribution network. This requires a flexible approach and all the more, a new mindset on part of the players. Strong ecological sentiment will also arise due to the advent of non-governmental/non-traditional elements in the market introduced by the World Wide Web. All these are changing the relationships between consumers, competitors, collaborators and investors. There is minimal distinction left between global and local tourism business. Meaning thereby, tourism sector has to be locally responsive while being subject to the influences and standards of players competing globally, at the same time (Foresight Tourism Report). The colossal impact of globalization has left players with no option but to mould their stance suiting the new scenario. Adaptability to new standards, local needs, multiple cultures and collaboration across regional and global margins is the key to survival. This needs to be done quickly as globalization and increased competition demands quicker decision making and implementation.

Secondly Fragmentation and weak institutional capability is another challenge to combat. Through a streamlined institutionalization of tourism sector, we can more ably explore possibilities of expanding business and generate employment opportunities by capitalizing on scientific and technological advances. We need to realize that the future requires correlation and increased dependency. Alliances, networks and partnerships even often with competitors are essential in the changing trends. Only a midway between globalization and localization is a point of equilibrium and sustainability, for any tourism stakeholder. A partnership approach would then open up an array of privileges suiting the requirements of potential partners.

In the human resource orb development and promotion of friendliness, hospitality and helpfulness is essential for both national and regional markets. Tourism is essentially led by local demand which is hence undeniable. Therefore capability to manage and implement at the local level needs to be strengthened. Active participation by the government and regional stakeholders is necessary to develop homogeneity in action and learn from the experiences. Alongside, technology can supplement human capacity to serve with aid of multimedia, computer-based instruction and multi-channel distribution networks.

Emergence of digital economy has blurred the boundaries between business sectors world wide. The drive towards a healthy and competitive tourism network therefore requires integrated strategies. As tourism pervades a number of business sectors globally, private business alone is inadequate to properly run competitive tourism and market strategies. Therefore collaborative alliances are necessary for strengthening strategic partnerships amidst global interdependence. Cooperative efforts would open new corridors and unlock economic and tourism potentials regionally. The significance of embarking integrated tourism is now realized by most role players. Various initiatives have been taken in Australia, South Africa, Middle East and South East Asian Countries. In this way opportunity of ecotourism, cultural heritage and adventure tourism is complimented by emerging electronic mediums such as multimedia, digital image technologies, experiential tourism technologies, three dimensional studios, virtual reality and digital museums.

Tourism is soaring new heights in the quest of competitiveness. More experienced and sensitive consumers and travelers, rapid updation of technology and global economic restructuring all indicate new higher altitudes for both tourism and technology, hand in hand. This is setting a pre-requisite and a stage for the players to set up a competitive spot for themselves.

POTENTIAL TECHNOLOGICAL APPLICATIONS

Endless process of rapid advancement in technology pervades the tourism sector, thus revolutionizing the world of communication, entertainment, retailing, medicine, agriculture and almost all avenues of the globe. This revolution has turned the world into an innovation hub. Under these circumstances, information and technology is constantly updating the way we do business to give a more precise meaning to efficiency and precision itself. IT as an investment brings back value added advantages. These advantages include infrastructure efficiency and new business opportunities created by new IT paradigms. They comprise of Value-enabling technologies and value-creating business opportunities developed and installed in the IT platform itself.

These opportunities include improvement strategies for both traditional and emerging distribution networks, streamlining an organization and creating network communities of staff and customers. In this physical platform has been replaced by virtual platform. It is digital, global and interconnected. We are going through an extended transition of technological bloom which means growing opportunities. Value of investment in the infrastructure is increased due to increased flexibility and speed with which opportunities are sought. Technology also helps people to work smarter and information and knowledge can serve as tools to create innovation in the traditional channels of distribution thus improving the company's competitive position (