Application of ICT in Tourism - Essay Example

Table of contents Introduction 2 Aims of the study 3 Literature review 3 Application of ICT in tourism and hospitality industries 4 Impact of ICT in tourism and hospitality 7 Case Study: Practical Examples of Implementation ICT in Tourism and Hospitality Industries- The case of WHL (World Hotel Link) and Waterberg 10 Discussion and analysis of the extent to which whl.travel and Waterberg have achieved their objectives 14 Conclusion 17 References 19 Introduction In the contemporary business environment, companies operating in the global and domestic markets need to strategize their moves in an efficient manner in order to enhance their sustainability for a longer period of time. Arguably, it is the reputation of the company that enables it to ensure a distinct position for itself among the competitors in the market. This aspect is evident irrespective of the scale, nature or the type of industries the companies are identified to be operating in. Contextually, it would be crucial to mention that organisations operating in the tourism and hospitality industries also face immense competition amid themselves owing to the increasing numbers of entrants and established brands offering similar products and services. Companies possess the need to develop effective strategies to deal with such scenarios. They need to perform effectively in every aspect of their business so that they can outdo the performance of their competitors and obtain greater advantages that can suffice their long-run sustainability needs. It is often argued in this regard that proper execution of the plans and decisions of the business is the ultimate approach that can substantiate effective performance demanded by a modern day organisation (Pride & et. al., 2010). In this regard, Information and Communication Technology (ICT) performs a key role in the proper execution of organisational operations, keeping in mind the needs of modern companies, which can be explicitly observed in the context of tourism and hospitality industries. ICT is often considered as one of the extensive constituents of Information Technology (IT). However, unlike IT, the concept of ICT stretches more on the aspect of communication. The concept of ICT in any form of industry including the tourism and hospitality industries commonly involves the execution of activities such as incorporation of telecommunications technology with computers and other essential software, which further allows the user companies to access, store as well as share information among their various operational departments. It would not be erroneous to depict in this regard that ICT has its influences in various sections of the business and it acts as a major driving force in deciding the performance of the business operations of companies functioning in any sector including tourism and hospitality sectors. The significance of ICT for companies operating in any sector can be affirmed from the fact that it is actively implemented in certain specific and vital sections of tourism and hospitality business constituted with the various dimensions of production, marketing, research and communication among others. ICT is also a prime tool for tourism and hospitality companies operating in the contemporary business environment in the context of accomplishing daily tasks, which comprise generating business reports and executing continuous communications with the stakeholders of the business (Hooff & Wijngaert, 2005). Hence, it can be apparently stated that ICT is quite vital for businesses in various distinct domains as it attempts to make significant contributions towards enhancing the value and performance of the businesses operating in any particular sector. Aim of the Study With reference to the determined purview related to ICT, it is evident that it is used in various domains of the business context in the modern era. Consequently, in order to provide a comprehensive understanding regarding the aforementioned aspect, this study evaluates various literatures, studies and practical scenarios with regard to depicting the implementation along with the importance of ICT in the tourism and hospitality industries. Literature Review The tourism and hospitality industries of the world have emerged as amid the major industrial sectors on a global context rendering a considerable influence on the world economy. The sector makes major contributions towards strengthening the economy and ensuring development of every nation separately. Owing to such vital features, operational efficiency of business has become an important area to focus on for companies operating in this sector (DNB, 2008). In this regard, the application or the implementation of ICT in the business can certainly be regarded as a significant approach of companies in tourism and hospitality industries, which necessitates broader study. Application of ICT in Tourism and Hospitality Industries ICT is extensively applied in the tourism and hospitality industries globally. Correspondingly, a report published by The Higher Education Academy (2013) highlights that ICT is one of the most widely implemented approaches by companies over the last 50 years in the tourism and hospitality industries. The use of internet is one such example of the use of ICT in travel and tourism industry. The report also depicts that products or services related to travel and tourism have been supplied by a handful of leading sellers on the internet for a considerable period of time, rewarding them a certain degree of monopolistic advantages in luring customers, especially from the international realm. Arguably, customers in this industry mainly prefer to buy products or services via internet as it is convenient along with time saving at the same time (The Higher Education Academy, 2013). In precise, it can be stated that internet which is an important part of ICT is an essential component in this particular industrial sector. Furthermore, in similar context, the report of Pearson Education Ltd (2013) depicts that ICT is implemented across a wide range of functions in the travel, tourism and hospitality sectors. Among these, the most vital is its use in strengthening communication with the customers and other stakeholders. With the help of a few of the communication tools of ICT, companies operating in the tourism and hospitality sector keep in touch with various stakeholders of the business 24/7. This commonly includes communication tools like company websites, emails and blogs among others to interact with various members associated with the business one way or the other. For instance, company websites allows interaction with investors who can obtain greater knowledge about the whereabouts of the company. Additionally it also serves customers by informing them about new deals and offers. Similarly, emails and blogs tend to act as promising sources of feedbacks from the stakeholders of the company (Pearson Education Ltd, 2013; BBC, 2013). Apart from ensuring effective communication, ICT is also implemented in other areas of business by companies operating in the global tourism and hospitality industry. According to Frew (2013), ICT has a major role in assuring information security in the modern tourism sector. ICT tools, such as firewall and Secure Server Technology (SSL), are used to secure the exchange of data among various departments of businesses. Implementation of ICT security tools, e.g. the SSL, in the travel and tourism sector ascertain that companies are able to interact with their customers and other stakeholders through the medium of websites, which are secure and free from any external threat; thereby, reducing chances of distortion in the process of data transmission (Frew, 2013; European Commission, 2006; ABE, n.d.). According to the study of Petti & Passiante (n.d.), ICT is one of those vital elements that provide opportunity for growing as well as strengthening the tourism industry and the global economy altogether. Contextually, the authors state about how ICT is applied in the field of marketing in the travel and tourism industry. ICT is best used in expanding along with improving marketing efficiency of companies in this sector. It will be vital to mention that all the aspects of marketing, as involved in travel and tourism industries, ranging from the development of database to website handling and from market research to advertising, ICT is a key and a common component. Tools of ICT such as Internet based advertising, telemarketing and promotional presentations are all crucial components that decide the marketing and sales efficiency of companies operating in this sector. Petti & Passiante (n.d.) also makes the statement that these ICT tools enable companies in the travel and hospitality industries to reach as well as execute every marketing approach efficiently, which in turn ensures maximum probability of economic benefits to the business (Petti & Passiante, n.d.; ABE, n.d.). Information management is another crucial aspect for which, ICT is applied in the tourism and hospitality industries. In this regard, Buhalis (n.d.) states that ICT allows effective management of information and data for companies operating in this particular sector. ICT uses cost-effective technologies, which further enable companies to access information relevant to their operations. It can be depicted in simple terms that with the use of ICT in business, companies can be able to store data in a particular system and access it with ease when they are in need for the same (Buhalis, n.d.; ABE, n.d.). ICT, as a vital component of advanced information system, in tourism sector mainly deals with formulating, integrating, planning as well as managing important data and information of organisations. Emphasising this particular aspect, Shanker (2008) states that another aspect related to the application of ICT in tourism and hospitality industries requires developing effective strategies in the domain of finance management. With the implementation of ICT, conducting day-to-day financing activities of business becomes more accurate and reliable. Shaker (2008) also depicts that the application of ICT for financing, further enables error-free financial management and that too in a systematic manner, which acts as a support for businesses for better execution of long term operations in tourism industry (Shaker, 2008). Hence, from the above analysis it is apparent that ICT is applied in companies of the tourism and hospitality industries for various purposes. However, apart from these factors, the report of ABE (n.d.) illustrates certain other areas where ICT is applied. The report depicts that ICT is used for revenue management, waste management, conducting office functions as well as maintaining public relations among others (ABE, n.d.). Apparently, the presence of ICT can be seen in various domains of operations of companies in the tourism and hospitality industries. Impact of ICT in Tourism and Hospitality Industries Based on the above discussion, it can be argued evidently that ICT is extensively implemented in companies operating in the tourism and hospitality industries of the world. This approach further has considerable impacts on the operational efficiency of the business in this particular industry. Emphasising this particular aspect, Griffin (2013) states that advancement of technology in businesses not only provides opportunities but it also results in the emergence of several noteworthy challenges. Owing to the implementation of ICT, companies operating in the tourism and hospitality industries become more and more active in conducting online activities including social networking owing to which, these companies have been able to interact more with the customers and build an appreciative relation with them. Furthermore, implementing ICT enables the companies to depict the source of their customers, which further allows them to strategize their marketing operations accordingly. Griffin (2013) further illustrates the extent of the impact caused by ICT on the tourism industry with reference to the fact that the tourism of Ireland had benefitted immensely from the social networking. It is deemed that in the post-participation to social networking, as a facet of ICT, Ireland has become the second most loved destination of the world being able to communicate with a greater volume of customers worldwide. It is apparent in this regard that tools of ICT like social media is much effective in solidifying the relationship between a destination and tourists. However, Griffin (2013) also shows other side of the coin and depicts about emerging challenges that is accompanied with the application of ICT. In an incident, one of the staff members of a renowned restaurant in Dublin used abusive language in a social networking site in reply to a criticism against the company. This led to heavy criticism of the restaurant in the media, which reflects that ICT might also deliver unfavourable outcomes for businesses by hampering its goodwill to a large extent (Griffin, 2013). Arguably, implementation benefits of ICT depend largely on the users’ capability to communicate. Buhalis & O’Connor (2005) correspondingly depicts about the revolutionary changes ICT has brought in the tourism and hospitality industries. The duo thus stated that ICT has initiated a whole range of opportunities as well as threats for the tourism industry. As a result of the application of ICT in an extensive manner, companies are now able to empower clientele, to identify and customize products related to tourism and further encourage them to purchase the same. Buhalis & O’Connor (2005) also illustrate that ICT is one of the major determinants that ensure organisational competitiveness in the global tourism and hospitality industries. Apart from this, ICT is also effective for the companies in this sector to develop customer centric and profit driven strategies that will further assure favourable results for the business. However, inefficiency in the use of ICT might ascertain negative results for the business (Buhalis & O’Connor, 2005). Shanker (2008) also emphasised a similar discussion regarding the impacts led by the extensive use of ICT on the tourism industry. The author depicted that the use of ICT has enabled information sharing of companies in this sector to a much higher level. This further allowed businesses to circulate them to a much wider audience base. Moreover, the application of ICT in this particular sector has also enabled the companies to share or access relevant information of the business at a minimal cost. In simple terms, Shanker (2008) explained the application of ICT in the tourism and hospitality sectors as an approach that enables companies to extend their operations across nations and states, removing all sorts of communication barriers persisting in the geographic and economic contexts. But conversely, Shanker (2008), when emphasising the inefficiencies of companies or countries to adopt ICT, postulated that it is particularly owing to the lack of technological competencies. This further obstructs optimum effectiveness of ICT in the tourism and hospitality industries in a collective manner (Shanker, 2008). Hence, it can be affirmed from the studies and researches of Griffin (2013), Buhalis & O’Connor (2005) and Shanker (2008) that ICT provides opportunities as well as challenges for businesses in the tourism and hospitality sectors having strong impacts on its communication functions. Research Methodology With the help of a structured and planned research methodology, data was gathered both for theoretical research and also for obtaining practical evidences to substantiate the research objectives, i.e. to make a critical evaluation of the implications associated with the use of ICT in the hospitality and tourism industry. Research, in this particular study has been carried out with the help of a variety of sources comprising books, journals and the internet. Basically there are two approaches of conducting any form of research. These comprise quantitative and qualitative approaches. Quantitative approach mainly deals with the analysis of mathematical data implementing statistical technique to get an appropriate and accurate answer for the research question, which assures maximum reliability and validity. On the other hand, qualitative approach of research mainly deals with the analysis of theoretical information relevant to the topic of the research through secondary sources like books and journals (Kothari, 2004). This paper intends to develop an appropriate answer about how ICT is applied to the tourism and hospitality industries. In this regard, a qualitative approach was implemented, where information related to the use and importance of ICT in the tourism and hospitality industry were analysed. The process was executed through a case study based approach where the researcher analysed two websites of WHL and Waterberg in a bid to establish the extent to which the internet is used in tourism and hospitality industries. Case Study: Practical Examples of Implementation ICT in Tourism and Hospitality Industries- The case of WHL (World Hotel Link) and Waterberg In this section, some practical examples will be aligned with the inferences drawn from the theoretical discussion of the previous section in this paper. This part focuses on the case study of WHL and it will be followed by an analysis of Waterberg in South Africa. According to its official website (2011), “the WHL Group is a private company incorporated in Hong Kong and is owned and operated by a team from Australia, Brazil, the Czech Republic, Hong Kong, India, South Africa, Switzerland, Syria, USA, Vietnam and Zambia.” This organization is primarily concerned with promoting sustainable tourism in local communities and it mainly uses the internet to carry out this initiative. Whl.travel launched this initiative after realising that it was important to incorporate the cultural values of local people in emerging tourist markets particularly in the developing world. Therefore, the strategy used is unique in that the booking site is managed by the local people. The internet is the major medium used in the marketing communication process by Whl.travel. It uses a colourful and specially designed website which is attractive to the people. This website is also comprised of all relevant information about the products and services offered by the company in the tourism and hospitality industry. This information includes the organisation’s background, accommodation, tours and activities as well as sustainable tourism. The website is also specially designed such that bookings can be done online. The consumers can book for hotel as well as transport services online and this is very convenient to them. The website also has a provision that enables a two way communication between the company and the customers. This significantly helps in creating quality relationship between the two parties involved in business. WHL uses the internet in conducting business in a bid to promote the implementation of e-commerce in developing regions in the field of tourism and hospitality. This is a convenient way of doing business given that a lot of people can access the internet in conducting their business. In its quest to fulfil two broad objectives namely: promoting local sustainable tourism and empowering the members of the local communities to benefit from the tourist facilities in their areas, WHL uses the internet specifically designed websites to carry out the communication campaign. The internet is commonly used in the tourism industry to reach consumers from diverse geographical locations and is regarded as the major influence affecting the future of the tourism industry (George, 2008). In this case of WHL, the internet is used as a powerful medium of communication to carry out marketing and advertising activities by the organization. Online advertising and marketing are meant to stimulate interest among the potential customers so that they can use the internet to choose their preferred destinations. The case of Waterberg On the other hand, it can be seen that ICT also plays a pivotal role in carrying out marketing and communications activities in the operations of Waterberg. According to its official website, it can be seen that Waterberg is one of the best Safaris in South Africa and it is located in the Limpopo Province. This vast area is comprised of privately owned game parks as well as stunningly beautiful scenery such as large mountain ranges. Information obtained from its websites shows that the Waterberg is home to more than “75 different types of animals which include the big five such as the lion, elephant, rhino, leopard and buffalo. The unique white rhino is also found in this area. There are also more than 300 species of birds that are found in this area.” People who are interested in photography can find this place attractive. The company also uses the strategy of a carefully designed website to present vital information to the potential visitors to the area. For instance, it can be seen that the climate in the area is savannah type and the place is good for tourists who come from Polar Regions that are characterised by snow. Other vital information found on the website pertains to healthcare issues where it is stressed that the place is malaria free hence the tourists need not worry. The Waterberg mountain range is also comprised of hot springs which are quite unique. There are different species of trees including the giant baobab trees that are found in this tourist destination. Rich cultural artefacts are also found in this place and these include rock paintings by the San people who inhabited this area some centuries of years ago. These pictures are presented on the website of the company. A good example is shown below. Kruger-cultural-heritage-Masorini The travellers can also access information about hotel and catering services found in the area. For instance, it can be noted that most game parks are comprised of exquisite lodges and some of them have ensuite bathrooms and they also have self catering services. Premium prices are often charged for exquisite services as the ones mentioned above. The other vital information available from the company’s website is related to transport services. For instance, it is stated that the place is located close to Johannesburg International Airport which links major international destinations in Africa. Tourists should expect to fork out about $100 or more for a one way trip to Waterberg. Above all, the customers have the opportunity to do all their bookings online through the company’s official website. This website also provides a two way communication channel between the organization and the customers and it is a convenient method of doing business. Discussion and analysis of the extent to which whl.travel and Waterberg have achieved their objectives Considering the arguments in the above section, it is apparent that ICT has become one of the most vital facets of business processes, as it provides severable unignorable benefits to the organisation and also to the industry on the whole. Every industry has been under the influence of ICT and its applications in the recent era. This can also be witnessed in the context of hotel and tourism industries operating within the global plethora. Apparently, ICT is extensively implemented by hospitality and tourism organisations, both in the national and international contexts. In support of this aspect, various literatures and articles were analysed in order to get an apparent view of the issue considered through this study. A closer analysis of the website of WHL shows that the organization carefully uses the internet to achieve its broad objectives. For example, under the heading ‘Your local connection,’ the following statement is used: “A unique feature of the WHL network is that each destination booking site is owned and operated by locals. You deal directly with local people in the destination you are travelling to and unlike other global booking sites, the people you book with will be there when you get there. ...they care about their local community, about their culture and about the local environment.” This shows that the internet is used as a powerful medium to communicate the objectives of the organization. Basically, the most common ICT tool to manage relationship is through company website which is used to interact with potential customers. Again, Frew (2013) stated about how ICT is helpful in maintaining security within the business. To a greater extent, it can be noted that whl.travel and Waterberg have managed to achieve their broad objectives. A close analysis of the organisations’ websites show that there are different activities that take place and they are also comprised of testimonies of satisfied customers paying tribute for the excellent services they have experienced using the organizations’ websites. This bears testimony that ICT is very effective in the operations of tourism and hospitality industries in any part of the world during the contemporary period. The other interesting element to note about these two official websites is that they are updated on a daily basis and they also highlight forthcoming events. This shows that the organizations make an effort to keep pace with all the developments that may be taking place in the environment in which they operate. The organizations have links with other service providers such as transport operators as well as other stakeholders responsible for the day to day running of the organizations. A close analysis of the images as well as texts posted by both companies on their official websites show that the organisations have managed to achieve their objectives. The messages are tailored in such a way that they appeal to the interests of the targeted people. The images used on both sites are also meant to stimulate interest among the travellers such that they can respond in a positive way to the services offered. A critical analysis of the case studies discussed above correspondingly made it apparent that ICT has an active role to play in the field of marketing and sales of tourism sector. Companies operating in this sector mainly advertise their products and services via internet and other mass media now-a-days, which allow them to interact with their stakeholders actively obtaining feedbacks on the services delivered. Apparently, it has been noted that both organizations do not social networks such as Face book in carrying out their operations. These are also effective strategies that can significantly improve the operations of the organization if carefully implemented. Therefore, it is recommended that the companies should adopt the use of social networks to carry their operations since these are very effective marketing and communication tools. It was thus argued by Griffin (2013) that the emergence of ICT in the tourism industry has developed a platform for companies to interact with the customers, which further allows them to know about the source as well as nature of the customers. This information is further used in developing more accurate marketing and sales strategies for the customers. The use of ICT in the tourism industry is a reliable way of conducting business. Conclusion Now-a-days, every industry is deemed to be under the active influence of ICT and its tools and implement the same quite extensively. It is useful in the domain of communication, marketing, financing, customer relationship management and information security among others. These aspects can be justified from the scenario of applying ICT in tourism and hospitality sectors. The tools of ICT have been in wide use in this particular industrial context, wherein the applicant companies have understood about how these technologies might be helpful for conducting most effective business operations. It has been further observed from the research that ICT helps the players in the tourism sector to interact with the customers on a usual and efficient manner where they intend to build a healthy relationship with the same. This is done with the help of ICT tools like emails, company websites and social networking among others. The study further revealed that ICT also enables companies to strengthen their communication prospects within the internal and external business environments. Notably, through this approach, tourism and hospitality companies were able to enhance their performance along with operational efficiency. This aspect was justified with the example of performance augmentation of tourism industry productivity of Ireland rewarding better scope for effective communication among various business departments. Apart from this, the research was also able to depict the positive effects of ICT in the marketing and financing sector of tourism and hospitality industry. Nevertheless, secondary data used in this paper also revealed both favourable and unfavourable effects of ICT in the tourism and hospitality industries advocating that the benefits of its usage depends substantially on the credibility of its users. In support of this particular inference, case examples related to ICT application at WHL and Waterberg tourism industries were presented in the research study and they revealed that ICT is very effective in the operations of the tourism industry. References Ansah, A. K. & et. al., 2012. The Use of Information and Communication Technologies (ICT) In Front Office Operations of Chain Hotels In Ghana. International Journal of Advanced Computer Science and Applications, Vol. 3, No. 3, pp. 72-77. ABE, No Date. IT in Hospitality and Tourism Operations. Home. [Online] Available at: http://www.abeuk.com/content/docs/syllabuses/L5_IT_in_Hospitality_and_Tourism_Operations_dec11.pdf [Accessed November 04, 2013]. Buhalis, D. & O’Connor, P., 2005. Information Communication Technology Revolutionizing Tourism. Tourism Recreation Research Vol. 30, No. 3, pp. 7-16. BBC, 2013. Business Management. Home. [Online] Available at: http://www.bbc.co.uk/bitesize/higher/business_management/business_enterprise/business_information_ict/revision/8/ [Accessed November 04, 2013]. Buhalis, D., No Date. Strategic Use of Information Technologies in the Tourism Industry. Tourism Management, pp. 1-24. DNB, 2008. Indian Travel and Tourism Industry. Global scenario. [Online] Available at: http://www.dnb.co.in/Travel_Tourism/Indian_Travel_and_Tourism_Industry.asp [Accessed November 04, 2013]. European Commission, 2006. ICT and E-Business in the Tourism Industry. Empirica, pp. 1-196. Frew, A., 2013. ICT and its Role in Sustainable Tourism Development. Academia, pp. 1-13. George, R 2008, Marketing tourism, 2nd Edition, Oxford University Press: CT. Griffin, K., 2013. The Impact of ICT Applications on the Hospitality & Tourism Industry. Academia, pp. 1-8. Hooff, B. V. D. & Wijngaert, L. V. D., 2005. Information and Communication Technology in Organizations: Adoption, Implementation, Use and Effects. SAGE. Kothari, C. R., 2004. Research Methodology: Methods and Techniques. New Age International. Ma, J. X. & et. al., No Date. ICTs & Internet Adoption in China’s Tourism Industry. Centre for eTourism Research (CeTR), pp. 1-33. Pearson Education Ltd, 2013. Using ICT to Communicate. Home. [Online] Available at: http://www.edexcel.com/migrationdocuments/Functional%20skills1/2329_FS_ICT_L1-2_Cha8.pdf [Accessed November 04, 2013]. Petti & Passiante, No Date. Getting the Benefits of ICTs in Tourism Destinations: Models, Strategies and Tools. International Arab Journal of E-Technology, pp. 3-12. Pride, W. M. & et. al., 2010. Business. Cengage Learning. Shanker, D., 2008. ICT and Tourism: Challenges and Opportunities. Indian Institute of Technology, pp. 50-58. The Higher Education Academy, 2013. Information and Communication Technologies for Travel & Tourism. Home. [Online] Available at: http://www.heacademy.ac.uk/assets/hlst/documents/resource_guides/ict.pdf [Accessed November 04, 2013]. Waterberg, (official website). WHL (official website), viewed 15 February, 2014, http://www.whl.travel/about_us Appendix1 Picture showing traditional dress of people in Kenya Appendix 2 Picture showing facial decorations in Vanuatu Appendix 3 Traditional life of Swazi people Read More