E-TourismNicos Rodosthenous PhD

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E-Tour Operators

1. Introduction This chapter explains the use of ICTs by tour

operators for their efficiency and promotions and to communicate effectively with their partners

The most significant contribution of tour operators is the package tour (tourism packages or inclusive tours)

Packages are pre-arranged combinations of transport, accommodation and other tourist services sold or offered for sale at an inclusive price.

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E-Tour Operators

2. Tour operators functions, types and structures They pre-reserve and pre-purchase a number of

travel services and sep up a package at a single price.

Tour operating is a process of combining aircraft seats and beds in hotels making the purchase price attractive to potential holidaymakers

Large/mass operators covering a very wide range of destinations and tourism products

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E-Tour Operators

Small/specialist operators provide holidays for a few destinations or specialize in themed or activity holidays

3. The use of videotext as an early leisure travel network

They wanted to enhance their productivity, improve their holiday-capacity management, reduce labor cost and provide better service to both agents and consumers.

Tour operators developed direct links with travel agencies via videotext networks

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E-Tour Operators• Enabled travel agencies to have interactive access to

tour operators’ reservation systems and allowed them to search their databases, availability of packages and to make booking.

• Videotext benefited travel agencies, since they provided the opportunity for low-cost bookings, improved communications, increased the speed of booking procedures and improved customer service.

4. Strategic and tactical roles of ICTs for tour operators Coordinating the movement of large numbers of

travellers in many different countries is a major operational management challenge in which ICTs have a crucial role.

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E-Tour Operators

ICTs are also critical for the distribution of tour operators’ packages.

The emergence of the Internet, extranets and intranets has a wide range of great opportunities and the distribution of electronic brochures and booking forms about tourism destinations and packages.

5. Internal systems and intranets Intranets offer strategic and operational tools for

tour operators to coordinate their departments

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E-Tour Operators

and to improve their internal efficiency and inventory.

Allotment contracts or allocations need to be managed in order to support tour operators to maximize their yield.

For example, a delayed flight can aggravate holiday makers and efficient communication with head office is critical to organize emergency plans such as, check-out, meals and transfers.

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E-Tour Operators

Tour operators need also to manage all their business functions such as accounting, finance, human resources, marketing and sales.

6. Interconnecting partner systems and extranets

The developments of extranets between tour operators and travel agencies as well as hotels and other suppliers is critical for their operations.

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Electronic transactions of bookings, invoices, rooming lists, manifests enable tour operators to develop seamless communication with their suppliers and customers.

As there is a wide range of systems available in the marketplace the most difficult issue is the standardization.

The internet provides an opportunity for the travel industry to communicate across multiple channels using a common language.

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Strategically extranets and ICTs play a critical role for tour operators.

They use data for forecasting market trends and to adjust their offerings according to demand fluctuations or preferences.

7. Connecting with all stakeholders through the internet.

The internet provides many opportunities for tour operators to research destinations and develop their products on-line.

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E-Tour Operators

Using the internet as a database tour operators can interact closely with consumers, and understand their needs.

Example: Kuoni allows consumers to alter their tourism packages on-line and to build their own itineraries.

Internet proved significant for smaller and specialist operators.

ICTs enable tour operators to reduce the costs involved in brochure printing and distribution.

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Dynamic pricing may also mean that prices may no longer be printed in brochures and be offered on-line.

8. Disintermediation vs re-intermediation for tour operators

Internet developments illustrate two major trends: 1) tour operators aim to disintermediate travel agencies 2) tour operators are threatened with disintermediation themselves.

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E-Tour Operators

This allows tour operators to bypass travel agencies and to promote holidays directly to consumers making savings on commissions paid to travel agencies.

Internet enables consumers and travel agencies to build their own packages and purchase them on-line.

Tour operators become global businesses with assets that need close management

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• ICT plan, driven by the marketing strategy should support operators regardless of their type or size to develop tools, CRM, interactivity with clients and proactive and reactive mechanisms in the marketplace.

• ICTs will determine the competitiveness of tour operating in the future.

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