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E-tourism Electronic Commerce Strategies for Development: Promoting an International Dialogue Tunis, 19-21 June Access The On-line Market is there Forecast for European markets 300 250 244 216 212 237 230 223 200 208 200 192 150 100 - 64% of Internet sales are direct sales.

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Slide1 l.jpg

E-tourism

Electronic Commerce Strategies for Development:

Promoting an International Dialogue

Tunis, 19-21 June

WORLD TOURISM ORGANIZATION


Slide2 l.jpg

Access

WORLD TOURISM ORGANIZATION


The on line market is there l.jpg
The On-line Market is there

Forecast for European markets

300

250

244

216

212

237

230

223

200

208

200

192

150

100

  • - 64% of Internet sales are direct sales.

  • UK sales represent 34% of Western

  • Eurepean sales.

  • Airlines are 60% of total sales and half

  • of this is from low-cost airlines

50

14.7

12.8

10.9

8.45

6.77

0

4.73

2.64

0.227

0.811

1998

1999

2000

2001

2002

2003

2004

2005

2006

Market M€(000)

Internet salesM€(000)

Market share

7%

6%

5%

4%

3%

2%

1%

0%

1998

1999

2000

2001

2002

2003

2004

2005

2006

WORLD TOURISM ORGANIZATION


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Distribution costs are a growing area of potential savings

$ 20 billion per annum: 4% of overall costs and growing.

WORLD TOURISM ORGANIZATION


The electronic marketplace in tourism l.jpg
The Electronic Marketplace in tourism –

Source: Buhalis D., “eTourism”

WORLD TOURISM ORGANIZATION


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New Business Models

  • Tiscover

  • GTREX

WORLD TOURISM ORGANIZATION


Three online firms now control over 55 percent of all online travel bookings l.jpg
Three online firms now control over 55 percent of all online travel bookings

Source: Peter O’Connor, IMHI, 2003

WORLD TOURISM ORGANIZATION


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  • WTO activities in E-tourism: travel bookings

  • Publications:

    • Marketing Tourism Destinations Online, 1999

    • E-Business for Tourism, 2001

  • Seminars

  • Capacity building:

    • Courses for National Tourism officials of

    • WTO member States

  • Partnership with IFITT

    • Bench-marking scheme for Destination Web Sites

    • Harmonise

WORLD TOURISM ORGANIZATION



As it was in the beginning l.jpg

CRS travel bookings

Customer

3rd Party CRS

Hotel

Hotel

Traditional Intermediaries

Electronic Intermediaries

Hotel

GDS

Travel Agents

Switch

Hotel

DMS

TICs

As it was in the beginning….

Source: Peter O’Connor, IMHI, 2003

WORLD TOURISM ORGANIZATION


Is now l.jpg

CRS Web site travel bookings

Hotel Web site

Travel Agent

Customer

Customer

Customer

Customer

Customer

GDS

CRS

Rep Company

Switch

Customer

Customer

Customer

Customer

Customer

Customer

Customer

DMS

TIC

Web Intermediary

GDS-based Web site

Rep Company Web site

Switch Co Web Site

Hotel

Hotel

Hotel

Hotel

Hotel

DMS Web site

Is now…..

Source: Peter O’Connor, IMHI, 2003

WORLD TOURISM ORGANIZATION


Critical tourism and hospitality functions supported by icts l.jpg
Critical tourism and hospitality functions supported by ICTs travel bookings

  • Front office: reservations, check-in, payments

  • Back office: accounting, payroll, human resources management, marketing

  • Customer entertainment and service

  • Communication with consumers and partners

  • Marketing research

  • Reaction and management of unexpected events

  • Flexible and dynamic pricing through yield management

  • Differentiation and personalization of products

  • Monitoring performance indicators and building feedback mechanisms

  • Control of business processes and personnel

WORLD TOURISM ORGANIZATION


Examples of information technology applications used in tourism l.jpg
Examples of information technology applications used in tourism

  • Entire range of hardware, software and netware

  • Stand alone computers and network devices

  • Office automation, reservation, accounting, payroll and procurement management applications

  • Portable/wireless communication devices

  • Internal management tools such as management support systems, decision support systems and management information systems

  • Tailor-made internal management applications

  • Databases and knowledge management systems

WORLD TOURISM ORGANIZATION


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Examples of information technology applications used in tourism

  • Internet/intranets/extranets

  • Networks with partners for regular transactions (EDI or extranets)

  • Networking and open distribution of products through the Internet

  • Computer reservation systems (CRSs)

  • Global distribution systems (GDSs) (e.g. Galileo, SABRE, Amadeus, Worldspan)

  • Switch applications for hospitality organizations (e.g. THISCO and WIZCOM)

WORLD TOURISM ORGANIZATION


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Examples of information technology applications used in tourism

  • Destination management systems (DMSs)

  • Internet-based travel intermediaries (e.g. Expedia.com, Travelocity.com, Preview Travel, Priceline.com, etc.)

  • Mobile/WAP-based reservation systems

  • Traditional distribution technologies supporting automated systems (e.g. videotext)

  • Calling centres

  • Interactive digital television (IDTV)

  • CD-ROMs

  • Kiosks and touch-screen terminals

WORLD TOURISM ORGANIZATION


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Internal systems and intranets tourism

  • Improving capacity management and operations efficiency

  • Facilitating central room inventory control

  • Providing last room availability information

  • Offering yield management capability

  • Providing better database access for management purposes

  • Supporting extensive marketing, sales and operational reports

  • Facilitating marketing research and planning

  • Providing travel agency tracking and commission payment

WORLD TOURISM ORGANIZATION


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The small e-business tourism

  • The ICT illiteracy of the entrepreneurs

  • Lack of marketing and technology understanding

  • The cost of ICT’s being perceived as prohibitive for entrepreneurs

  • Inability to control the equipment

  • Perceived dependence on trained staff

  • Lack of standardization and, often, professionalism

  • Seasonality and limited period of operations in resorts

  • Insufficient training and established organizational practices

  • Small size multiplies the administration required by CRS’s to deal with each property

  • The unwillingness of SMTE’s to lose control over their property

WORLD TOURISM ORGANIZATION


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“Tourism is a very information intensive activity. tourism

In few other areas of activity are the generation,

gathering, processing, application and

communication of information as important

for day-to-day operations as they are for

the travel and tourism industry”

Poon 1993

WORLD TOURISM ORGANIZATION


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