Information Technology in the Tourism Industry - Literature review Example

Information Technology in the Tourism Industry Name Tutor Date Information Technology (IT) refers to every form of technology that is used in the creation, storage, utilization and exchanging of valuable information in various forms for instance conversations, motion pictures, business data, multi-media presentations and still images (Pease et al., 2007). According to Page & Connell (2006), it is the modern way through which computers are used in communication and acquisition of information through research on knowledge. Just like virtually all sectors in which it has penetrated, IT has various applications in the tourism industry. This paper discusses Information Technology in relation to the tourism industry. IT development is a considerable global issue. This is because it is the main source of interconnectivity among societies, which is the greatest social-economic development of all times. Globalization has implied that information is shared more widely and efficiently, and technology has strived to keep up with the need for efficiency and effectiveness in the provision of such information. Businesses, governments and even social relationships are sustained through the incorporation of IT (Tassiopoulos, 2008). IT is among the most crucial resources for economic growth. It leads to situations where companies use their resources in the most effective ways. It enables greater efficiency and speed in the processing, storage, distribution, manipulation and retrieval of information (Bazini & Elmazi, 2009). According to Neverauskaite & Ciutiene (2011), it reduces costs in the handling of information, raises the speed of information transfer and retrieval and increases customer involvement in transactions. It is characterized by flexibility in product specifications and reliability in the information transfer process. Hall & Lew (2009) explain that with a rapid rise in expectations by consumers, the drift towards more flexible and independent holidays and not package holidays and rise of a new generation that is largely computer literate, service providers have to identify new ways through which they will satisfy tourist needs. As a result, there are new IT opportunities within the tourism industry. Tourism has embraced Information Technology very well. This is because it heavily depends on the generation and exchanging of information across its distribution chain. According to Pena & Jamilena (2010), tourism-related services such as transportation are themselves interlinked with the technologies. Entertainment, which is a necessity in tourism, is also reliant on IT. In Spain for instance, rural tourism is a highly valuable tourism practice. The provision of services with greater competitiveness in the sector calls for the permanent inclusion of technological innovations into day to day operations, mainly by means of the internet and other kinds of ICT. The deployment of ICT is generally viewed as more important in settings that are either in emerging areas or those that have less economic development or limited services. According to Law et al. (2009), the internet is at the moment growing as a perfect platform for the direct delivery of the industry’s products to the customers. Tourism information systems that are web-based are expected to not only facilitate the provision of online brochures, but rather also offer both service and value in the process. In Albania for instance, the available Tourism Information System (TIS) always ensures the provision of high-quality access. In addition, the delivery of high quality is attained through making tourism information providers more able to maintain direct spread of products in addition to the integration of tourism information sources which are external. Lastly, the system is formulated in a way that makes its customization easy. Applications of IT in Tourism The tourism industry is among the most successful areas in which e-commerce has been applied due to its consumer-oriented nature and also the fact that information provision lies at its center. Tourism is a hybrid kind of industry. This is because although there is a predominance of information provision, it essentially sells a physical product. Because of this, there is always the need for a seamless integration of physical services and information. This has to be accompanied by flexible configurations in its informational and physical parts (Bhatia, 2007). According to Law et al. (2009), the main challenge that faces tourism operators is to provide localized and accurate data. This is increasingly reliant on IT. At the same time, one always has to maintain the operator-tourist relationship. Instead of just being a transaction, tourism has grown to require the building of relationships that are long-term, and this is done with the help of IT. The rapid growth in IT, especially the World Wide Web and Internet has given rise to both opportunities and challenges to every sector, including the tourism industry. It has caused a considerable change in the role that each player within the industry’s value-creation steps plays. IT plays a role in the attraction of tourists. Whether tourist attractions are natural or man-made, there is always the need for service providers to inform or communicate to current and potential customers about what is available. Information relating to the nature of an attraction, its location and means of getting to it is highly important. The owners of tourist attractions especially at the national level usually promote the available tourist destinations through the use of IT products. For instance, the main tools for information dissemination in tourism are websites on the internet, promotional videos, travel documentaries and television advertisements (Bazini & Elmazi, 2009). Pease et al. (2007) explain that the provision of tourist accommodation is supported by IT. Tourists are nowadays able to easily access the relevant providers of accommodation services. A potential tourist can easily gain access to the kinds of hotels that are available at the destination, the form of products that they offer, their prices and also other valuable information without the need to get out of one’s home or office. Through the facilitation of IT, this is very easy. One will just call up any travel agency and ask for expert advice. While at the destination, visitors are also able to be at ease as they spend their time. This is because they are enabled to access information relating to their families, businesses or anything else at home. In tourism advertising, there is a great compatibility between travel and tourism and interactive media. This is because the tourism industry is notably an information-intensive one. It is possible to make transactions online. Present day web-users are in many instances interested in tourism and travel services and products. Interactive marketing, which many tourism service providers use, is different from the preexistent marketing. This is because it is founded on dialogue rather than one-way communication. It uses information that is gained from the customers rather than information about customers (Bhatia, 2007). Page & Connell (2006) explain that in tourist transport, travelers usually try to ensure that the transport company that they opt for holds a positive safety record. Taxis, planes and coaches are therefore in many instances fitted with appropriate IT-related equipment. For instance, planes fly using modern IT equipment that transmits information on altitude and weather among others. There is also in-flight entertainment for instance movies and internet-based video-games which are also IT- based. Buses and other motor vehicles used in tours and travel are also fitted with radio communications systems for ease in coordination. There is a wide range of IT-related software which is used in tourism development. For instance, according to Dynaportal (2011), there is personalization software. This is a kind of data mining that is founded on the premise that people are busy with their lives and would therefore prefer that others work for them. Personalization software therefore monitors and tracks the consumers’ purchasing behaviors and preferences. It therefore becomes able to customize services or products depending on preferences and needs hence conduct the appropriate direct marketing. There is the use of knowledge based and electronic payment software. According to Bhatia (2007), knowledge-based software is founded on the premise that people need more choices but still avoid being burdened by the choices. It therefore takes up the criteria that is provided by customers and put into digital databases. The software both finds the information on behalf of customers and narrows them down so that the customers may pick out the deal that is best for them. Electronic payment software makes it possible for tourists to make their transactions with agencies electronically. This facilitates tourism business as it makes very complex payment processes far simpler and also reduces the need for intermediaries. Conclusion IT has a great influence on the tourism industry, both in quantitative and qualitative terms. It enables integration and makes it possible to customize tourism products in order to meet various individuals’ needs. Because of behavioral changes in tourists markets tend to become more segmented, and each consumer ends up belonging to different market segments at the same time. ITs most significant role in the tourism industry relates to its application in marketing. It helps in the discussion of marketing specifics and product characteristics within the industry. Tourism has a great economic impact whether at domestic, regional or international levels. It is one sector of business in which IT is almost exclusively applied. IT has an important role to play in tourism development. References Bazini, E and Elmazi, L. (2009). ICT Influences on Marketing Mix and Building a Tourism Information System, China-USA Business Review, 8 (2), 36-45 Bhatia, A. (2007). International Tourism Management. New Delhi: Sterling Books Dynaportal. (2011). Content Personalization Software. Retrieved on 21 October 2011 from http://www.dynaportal.com/software/personalization.cfm Hall, C and Lew, (2009). Managing Tourism Impacts: an Integrated Approach. New York: Taylor & Francis Law, Rob, Leung, R and Buhalis, D. (2009). Information Technology Applications in Hospitality and Tourism, Journal of Travel & Tourism Marketing, 26 (5), 599- 623 Neverauskaite, S and Ciutiene, R. (2011). Exigency of Changes in Tourism Sectors. Economics & Management, 16, 238-244 Page, S and Connell, J. (2006).Tourism: a Modern Synthesis. London: Thomson Pease, W, Rowe, M and Cooper, M. (2007). Information and Communication Technologies in Support of the Tourism Industry. Hershey: Idea Group Publishers Pena, A and Jamilena, D. (2010). The Relationship between Business Characteristics and ICT Deployment in the rural Tourism Sector. The Case of Spain, International Journal of Tourism Research, 12 (1), 34-48 Tassiopoulos, D. (2008). New Tourism Ventures: an Entrepreneurial and Managerial Approach. 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According to Law et al. (2009), the internet is at the moment growing as a perfect platform for the direct delivery of the industry’s products to the customers. Tourism information systems that are web-based are expected to not only facilitate the provision of online brochures, but rather also offer both service and value in the process. In Albania for instance, the available Tourism Information System (TIS) always ensures the provision of high-quality access. In addition, the delivery of high quality is attained through making tourism information providers more able to maintain direct spread of products in addition to the integration of tourism information sources which are external.

Lastly, the system is formulated in a way that makes its customization easy. Applications of IT in Tourism The tourism industry is among the most successful areas in which e-commerce has been applied due to its consumer-oriented nature and also the fact that information provision lies at its center. Tourism is a hybrid kind of industry. This is because although there is a predominance of information provision, it essentially sells a physical product. Because of this, there is always the need for a seamless integration of physical services and information.

This has to be accompanied by flexible configurations in its informational and physical parts (Bhatia, 2007). According to Law et al. (2009), the main challenge that faces tourism operators is to provide localized and accurate data. This is increasingly reliant on IT. At the same time, one always has to maintain the operator-tourist relationship. Instead of just being a transaction, tourism has grown to require the building of relationships that are long-term, and this is done with the help of IT.

The rapid growth in IT, especially the World Wide Web and Internet has given rise to both opportunities and challenges to every sector, including the tourism industry. It has caused a considerable change in the role that each player within the industry’s value-creation steps plays. IT plays a role in the attraction of tourists. Whether tourist attractions are natural or man-made, there is always the need for service providers to inform or communicate to current and potential customers about what is available.

Information relating to the nature of an attraction, its location and means of getting to it is highly important. The owners of tourist attractions especially at the national level usually promote the available tourist destinations through the use of IT products. For instance, the main tools for information dissemination in tourism are websites on the internet, promotional videos, travel documentaries and television advertisements (Bazini & Elmazi, 2009). Pease et al. (2007) explain that the provision of tourist accommodation is supported by IT.

Tourists are nowadays able to easily access the relevant providers of accommodation services. A potential tourist can easily gain access to the kinds of hotels that are available at the destination, the form of products that they offer, their prices and also other valuable information without the need to get out of one’s home or office. Through the facilitation of IT, this is very easy. One will just call up any travel agency and ask for expert advice. While at the destination, visitors are also able to be at ease as they spend their time.

This is because they are enabled to access information relating to their families, businesses or anything else at home. In tourism advertising, there is a great compatibility between travel and tourism and interactive media. This is because the tourism industry is notably an information-intensive one. It is possible to make transactions online. Present day web-users are in many instances interested in tourism and travel services and products. Interactive marketing, which many tourism service providers use, is different from the preexistent marketing.

This is because it is founded on dialogue rather than one-way communication.

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