e-tourism nicos rodosthenous phd 28/03/2013 7 28/3/20131dr nicos rodosthenous

E-TourismNicos Rodosthenous PhD

28/03/20137

28/3/2013 1Dr Nicos Rodosthenous

Supply-driven E-Tourism

1. Introduction The purpose of this chapter is to explore the

strategic implications of ICTs in the tourism industry.

Demonstrates how organizations use eTourism to achieve and sustain competitive advantage and illustrates several critical strategic decisions.



2. eTourism today: ICTs provide a powerful tool which bring

advantages in promoting and strengthening tourism industry operations (WTO, 2001)

Tourism industry uses a wide range of ICTs systems for management and marketing of global organizations and for inventory control and administration purposes.

Internet provides a window to the world by demonstrating their competencies widely.



Intranets and extranets offer user-friendly access to employees of organizations and to authorized partners in order to use company data and perform their tasks.

Example, is the airline alliances which today dominate the entire globe.

eMarketplace with vast majority of tourism providers developed Internet interfaces to communicate directly and efficiently with their clientele and partners.



3. Monitoring the environment and dynamic response: proactive management and neural organizations

Enable organizations to integrate all their systems and monitor both their internal processes and external trends.

Take advantage to recognize and capture data coming from both the external and internal environment of organizations and assist decision making with the appropriate responses.



• Example, a hotel can monitor its reservations and take appropriate action based on guest histories, data from previous years and forecasted demand.

• Hotel management can also monitor prices and offerings of competitors.

• Proactive schedule of events, activities and products can therefore be planned and executed accordingly. (demand-pricing policy)



Neural organizations constantly monitor and control external and internal environment, identify patterns, trends and developments and take proactive measures to advance their interests.

Enable organizations to manage their resources efficiently and to interact with their consumers and external partners proactively and reactively in order to improve their competitiveness.



Providing the right solution at the right time, will be one of the most significant generators of competitive advantage. (Case study 1, delay of a flight)

The strategic benefit emerges from the development of the neural network and the constant update of the system.

They can redesign and repackage tourism products instantly, according to consumer desires and trends.



4. Building and maintaining competitive advantage using ICTs

ICTs enable organizations to differentiate their products or reduce their costs and therefore their prices and assist them to achieve competitive advantage and strategic implications.

CRM (customer relationship management) develops interaction with consumers and customize their products.



Reducing cost is often a result of great efficiency. ICTs assist the distribution process by reducing

the commission levels and the reservation administration cost, through outsourcing.

4.1. Competitive advantage through pricing and cost.

Large hotels with more than 250 rooms, airlines with more than a few aircraft and tour operators with more than few thousand passengers would be impossible to run without ICTs.



ICTs enable last-minute deals/sales and auctions. Web presence and on-line promotion assist to

the reduction of brochure and promotional costs and enable organizations to reduce their costs.

Developing a cost-efficient eCommerce application and global distribution of multimedia info and promotional material on a 365/24 basis will be very attractive.

Example, in the airline industry eCommerce platform links bookings, check-in and flight details and accumulate historical data of each



customer across the internet, ITV, WAP and any mobile device of 4G and 5G.

Accepting direct bookings (eCommerce) enable tourism organizations to reduce or eliminate commissions, booking fees and distribution costs.

Organizations use ICTs to monitor their competitors activities and identify opportunities and challenges accordingly.

The emerge of mobile devices as internet terminals will mean that consumers can be offered specialized products interactively.



ICTs enable tourism providers to develop a unique product for each one of their clients and undertake one-to-one marketing

On the other hand, ICTs empower also consumers to develop the marketing mix of products they wish to buy and search the marketplace for suitable suppliers.

The internet enables tourism firms to develop global specializations and to target markets with very low cost. (skiers, age groups, young, active)



Developing a community and coordinating its activity interactively can be very profitable for tourism organizations.

Example, a golf-specializing hotel or a tour operator in Cyprus can provide an interactive page and allow guests to undertake a whole range of golf-centered activities.

They can serve their clientele globally at almost no extra cost.



Tailor-made tourism products are not a new marketing technique.

The ability of organizations to reach through the internet the entire marketplace electronically and cost-effectively, provide a unique case for differentiation strategies.

4.2. Competitive advantage through time Consumers appreciate saving time during the

information-seeking and reservation process through efficient and interactive mechanisms.



Time eventually will overtake both cost and differentiation for several markets as a critical factor for buying products.

Simplified and time comprehensive websites enable consumers to complete transactions in few minutes and with a few clicks provide huge competitive advantages and to become winners of the electronic battle.

Example, visiting expedia.com or ebookers.com



consumers can have access to a one-stop shop for all their requirements, flights, hotels, car rentals, holidays and business trip.

Mobile devices will foster this issue further as consumers on the road will wish to undertake complete transactions almost instantly.

5. Using ICTs for sustainable competitive advantage

Innovative and proactive organizations will lead the way and the rest will follow.



Modern marketing and new technologies threaten established organizations like British Telecom.

New competitors with interactive interfaces can communicate with their clientele and become more responsive than traditional firms.

Tourism organizations beyond of achieving competitive advantage, they also try to develop mechanisms to sustain in the long term.



Organizations need to manage their demand in a much more interactive way by constantly monitoring and predicting market trends, offering suitable products and outperforming their competitors.

Organizations that respond instantly at the tactical and strategic level can maximize their performance and achieve sustainable competitive advantage.



6. Using ICTs to avoid competitive disadvantage Competitive advantage is based on constant

innovation, speed and ability to differentiate or reduce the cost of products.

Ignoring or under-utilizing ICTs can create competitive disadvantage.

eMarkets give rise to newcomers who take advantage of new technologies and increase their market share. i.e. easyJet with 80% bookings through internet.



Sabre launched Travelocity before other GDSs realized the internet challenge.

Competitive disadvantages emerge from organizations inability to serve their customers properly and to match or exceed competitors’ performance.

Market research and consumer requirements should be incorporated into robust business models by using ICTs as dynamic tools for their implementation.



ICT-based strategies can be categorized:Long-term planning and strategy, whereby ICTs

are viewed as a competitive weapon.Innovative business processes re-engineering is

required to redesign all processes and procedures.

Commitment of top management is critical as ICTs become the backbone of every strategy.

Continuous training throughout the hierarchy will provide decision-makers tools for dynamic management.


e-tourism nicos rodosthenous phd 28/03/2013 7 28/3/20131dr nicos rodosthenous

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