Impact of Information and Communications Technology on the Business Tourism - Case Study Example

The Impact Of Information And Communications Technology (ICT) On The Business Tourism And Business Events Table of contents 1.0 Introduction 3 2.0 Impact on the business tourism and business events 3 2.1 Information handling 3 2.2 Online payment 4 2.3 Promotion and Marketing 5 2.4 Research 6 2.5 Customer satisfaction 7 2.6 Information sharing 8 2.7 Interaction 8 2.8 Retrenchment 9 2.9 Moral decadence 10 2.10 Increased crimes 10 3.0 Conclusion 11 References 12 1.0 Introduction Collision and acceleration between tourism and technology has brought significant change in the tourism sector for the last few decades. Technological advancements all over the world has played a major role in shaping the operations of the tourist industries. For instance, information communication technology has changed the perception and the behavior of the tourists in an incredible way (D, 2008). Potential tourists, who wish to venture places, can access all the relevant information at the rooms. Furthermore, people search information about places, book their tickets, rooms and meals at their own convenient time. On the other hand, business entities have expanded their operations by working global business with low production costs (WTO 2002). As a result of the rise in the popularity of internet, many tourist organizations, like airplanes, hotels and hospitality and travel agencies, have totally embraced internet applications as an integral part of the marketing and communication strategies. The evolution of buying-decision making process was as a result of the information search on the internet. Essentially, internet does not only minimize business risks, but also promote the quality of travel among the tourists. 2.0 Impact on the business tourism and business events 2.1 Information handling According to Davidson & Cope (2003), ICT has been a significant player in shaping information flow, in the tourism industry. At the moment, many tourist sectors are taking the opportunity of the information superhighway. As a matter of fact, technology has enhanced the speed as well as the efficiency in which the information is processed, stored, retrieved and distributed. Before the introduction of internet service, handling of the information was manipulated and distorted depending on the circumstances. Information technology minimizes information handling costs. It is done since the data is stored in organization’s database with limited access to unintended users. More often, reliability and validity of information may be doubted when people handle. It is only due to human errors and fear of manipulation (J, 2004). Furthermore, ICT has increased the speed of transfer of information, retrieval and customer involvement. It has promoted greater flexibility of product specifications and reliability of the transferred information. ICT has shaped the efficiency of tourism operations by developing competitive advantage to reduce costs and enhance differentiation. Most importantly, has positively influenced the delivery of tourism service, management, and marketing and reduce the gap between the tourists, consumers, producers and the destinations (J, 2003). ICT has completely changed the mode of information transmission throughout the business thus changing the way service delivery. Since there is a rapid increase in customer expectations for the last ten years, the move towards flexible and more independent holidays, requires service providers to boost their service delivery to meet those demands. These include the airlines, tour operators, and travel agency hotels (Bladen, 2012). Booking for any reservation has now been made easier as they are made online. 2.2 Online payment The rise of internet service has facilitated easy payment of service using the online service. It is done by using credit cards and other remittance services with limited strain. In most cases, tourists move out of their countries and are forced to change their currencies to suit their country of visit (Bladen, 2012). It may be cumbersome and hectic to move from one bank to another to change. The online service has cut down these costs by allowing tourists to use online payments at their doorsteps (Hjalager, 2002). It has reduced irregularities and burglary in banking industries. Because of this, service delivery is very faster and straightforward. Some tourists, especially those who have personal interests have been locked out of the scene since there are no manipulations and favors when making any payment. For example, a tourist booking for a hotel room for a family goes directly to the hotel of preference on the web and feed the information directly. There is no room for negotiation and manipulation of information, but to abide by. On the other hand, tourists can have the opportunity of choosing best hotel to book by analyzing their services, prices and offers online (Thatcher & Oliver, 2000). Equally, tourist companies are compelled to upgrade their internet service to attract more customers and remain competitive. Booking fees is made online with the tickets issued at the end of the transactions. The idea of paperwork is reduced thus becoming more efficient. 2.3 Promotion and Marketing Performance of the tourism industry has been attributed to marketing strategies that the company uses to reach its customers. Many companies fail to meet the objectives due to poor marketing strategies. Marketing company products and services inform potential customers of their availability and trigger their desire. It has been predicted that significant growth of the business is making good use of technology. One of the uses of technology is for online marketing. Online marketing informs customers of the available tourist destinations and products/service. ICT, therefore, has facilitated the sale of tourism products and services (Davidson & Cope , 2003). In reference to T, (2013) it is evident that as the customers use internet services, they get information of various sites where they can visit. The information, products and services, depending on how they have been displayed, may stimulate the user to venture to such places. For example, one hotel may post on the internet variety of foods, accommodation rooms and entertainment sites for customers to see. Customers may admire the site and venture to enjoy these facilities so that they may be remembered (WTO, 2002). Digital marketing, mobile and location based marketing and search engine marketing exist at the moment at the view of prospective customers. Nevertheless, it is the contents’ appeal with the correct price tags that attract the customers into the business. The internet has enabled companies to groom nicely their sites to attract customers. Furthermore, internet has restructured the organization infrastructure in responding to customer requirements. As more customers want to personalize their products and services, so the tourism organizations should embrace technology that help the store and monitor customer’s information and meet their demands. Actually, the more you know your customer’s information and desires, the more you retain them. This can be facilitated by use of information management system, a by-product of ICT (D, 2008). Adoption of ICT has also facilitated management of marketing mix and branding of products and services. The brand markets the product of the company. In a market of several similar products and services, enough information about the products/services boosts the market. Through internet service, tourist organizations create packages and develop co-marketing programs that enhance the sale of products and services (T, 2013). This help them to employ sound promotional strategies that may enhance production. 2.4 Research As the businesses envy for more information to improve their service delivery, they look for relevant sources where they can get. This helps them get reliable sources to facilitate their planning and management (Holloway & Humphreys, 2012). Internet has been one of the resourceful sites rich with information. Critically, relevant information takes a lion share in promoting quality management in an organization. In fact, it is the number one tool for planning for unmanaged and leisure business travels in the case of the tourist industry. As the intensity of research increases, especially with the increase in websites, more people visit the sites before making online booking. Market research is a necessity before booking. This helps the customers to get information on booking fee, products and services available and compare with other sites. Internet plays a major role in shaping customer’s decision depending on the information they get (A, 2007). A tourist may wish to book meals in a hotel, but unless he/she is aware of their costs, variety and types, he/she will not book. Internet is one such that accommodates customer needs. Without ICT technology, there would be inconsistent terms of service to customers at any given time. Not only does the internet service help the customers, but also the organizations themselves. Tourist sites should conduct enough market and field research on ways to improve customer service and their operations. Technology is dynamic and needs constant research to upgrade upcoming events to match the current operation (Bladen, 2012). 2.5 Customer satisfaction One of the desires of tourist sectors is to retain their loyal customers and enjoy their service. This is achieved by ensuring that they get basic needs all the time they visit. To satisfy them fully, business operators should diversify their operations and offer quality service. They should offer a range of products and services that make customers feel satisfied. Internet offers a range of activities that entertain people of various levels (Davidson & Cope , 2003). For instance, children can play internet games while the older enjoy free internet browsing. Some hotels, for instance, have installed free service in their sites for customers to use e.g. Wi-Fi. In tour sites, cameras have been put in strategic positions to accommodate views from all dimensions. To achieve high reputations of a tourist site, tourist organizations should adopt fully the internet service. Furthermore, the introduction of modern equipment like cooking utensils have improved the quality of foods. Furthermore, the use of modern tourist machinery that ferry tourists around the sites have boosted customer satisfaction. The automobiles and lifts have eased mobility of tourists and enhanced their enjoyment thus making them satisfied (WTO, 2002). 2.6 Information sharing The introduction of ICT has promoted sharing of ideas and crucial business information within the tourism industry (T, 2013). It has always been inevitable to share information and run independent business. Information sharing facilitates improvement of service delivery and production of quality products. One tourist company, for instance, in the northern hemisphere may have very crucial information that one in the southern hemisphere lacks. Since the internet has made the whole world into a global village, these two companies can share information easily. Internet is the only portal big organizations can share ideas with limited movements. This translates to the fact that one booming industry can invest on other small industries by sharing ideas through the internet (A, 2007). 2.7 Interaction Technology in the tourism industry has brought together people from different backgrounds, cultures, races, etc. Since it is evolving more than any time before, it has attracted most travelers to be more tech-savvy. “Imagine the case where several tourist meet at site and interact? How many people make friends with their colleagues?” these are the questions that people have in their minds. Internet brings people to meet, either physically or virtually. People meeting in such places exchange their contacts and may communicate later (Thatcher & Oliver, 2000). As if this is not enough, some may intermarry, strike business deals together and even share ideas. In the end, people are connected in the pool of information on the online. E.g. Facebook, twitter and mails. Therefore, this fosters national unity and cohesiveness among different nationalities. In summary, positive impacts of ICT in the tourism industry has the following results: it has empowered people by getting all the information at hand and stop thinking that this is not real-dreaming. It has also helped organizations in research, booking, improve better service and get new ventures and experiences. Lastly, it has facilitated information sharing and interaction among various entities. This is shown below. Although the internet has done more good than harm, it has contributed significantly to the downfall of some sections. The negative impact are: 2.8 Retrenchment Most employees in the tourist sector have been rendered jobless due to joblessness. The use of computers in various departments have cut down the number of workers (Bladen, 2012). For instance, the use of automobiles to ferry the tourist around the tourist sites have taken over from tour guides. Although the guides have not been scrapped away fully, their number have been reduced. People who initially worked in such places have been forced to quit since they have no work anymore. Furthermore, secretaries and clerks who used for keeping personal information of tourists has been rendered jobless. This information can be done by one person with the help of computer services (Hjalager, 2002). 2.9 Moral decadence Computer services have greatly been misused by the users. Initially, ICT services were meant to make work easier, research and purposeful usage. Ironically, it has greatly been misused. Most travelers share irrelevant information to those whom they interact especially in public places. For instance, people watch pornographic clips and watch horror movies that disintegrate human morality (J, 2003). Some embrace western culture and borrow immoral behavior. In fact, some of the tour trips reported have broken family ties and even breakages. 2.10 Increased crimes According to a report released in 2005, 56% of the crimes within the tourist industries in the world are as a result of cybercrimes (D, 2008). Most of these were done in planned occasions over the internet. Although the research is a fundamental tool for planning, robbers have capitalized to plan evil against the industry. The information provided in the company’s websites are misused to plan attacks. 3.0 Conclusion Having all said and done, adoption of ICT has done more good than harm to both business and tourist entities. Although not all is well about technology, businesses should make use of it. Tourist industries, in particular, should make use of technological advancements to market their products and services (A, 2007). However, they should be careful in adopting it to avoid giving loopholes to hijackers and cybercrimes. The information posted on their websites should be sufficient only to customers’ satisfaction. Tourist sectors and other business enterprises should offer training facilities to its personnel on the proper way of technological advancements in promoting company’s products and services (WTO, 2009). Since the research is an important tool in planning, technical personnel should utilize fully the ICT services to manage and adopt innovations. Lastly, companies should implement policies that support the adoption of ICT. This encourages the workers to own the idea and support. In fact, they will contribute ideally on further developments. References A, P., 2007. Tourism, Technology and Competitive Strategies. London: Cab Intern. Bladen, C. e. a., 2012. Events Management – An Introduction. Oxo: Routledge. Davidson, R. & Cope , B., 2003. Business Travel: Conferences, Incentive Travel, Exhibitions,Corporate Hospitality and Corporate Travel. New ed. s.l.: Pearson Education . D, B., 2008. Strategic Use of Information Technologies in the Tourism Industry. Tourism Management, 19(5), pp. 409-421.. Hjalager, A. M., 2002. Repairing innovation defectiveness in tourism. Tourism Management, Volume 23, pp. 465-474.. Holloway , J. C. & Humphreys, C., 2012. The Business of Tourism. 9th ed. s.l.:Pearson Education. J, M., 2003. Tourism Demand and Output in the U.S. Tourism Satellite Accounts. Journal of Travel Research, Volume 44, pp. 4-5. J, S., 2004. The Theory of Economic Development. Boston: Harvard University Press. Organization), W. (. T., 2002. Annual Reports, Geneva: WTO. Organization, W. T., 2009. Compendium of Tourism Statistics. Madrid: Cengage. Thatcher, . M. E. & Oliver, R. J., 2000. The Impact of Technology Investments on a Firm’s Production Efficiency,Product Quality, and Productivity. Journal of Management Information Systems , 2(18), pp. 71-89. T, R., 2013. Conferences and Conventions: a global industry. s.l.:Butterworth Heinemann Read More