CABI TOURISM TEXTS 2nd Edition Tourism Information Technology PIERRE J. BENCKENDORFF PAULINE J. SHELDON DANIEL R. FESENMAIER COMPLIMENTARY TEACHING MATERIALS CABI TOURISM TEXTS Chapter 2 The Digital Tourism Landscape CABI TOURISM TEXTS Chapter 2 Learning Objectives After studying this chapter you should be able to: 1. analyze the drivers of innovation and technological change in the digital landscape; 2. explain and evaluate the components of IT in tourism using a digital tourism ecosystem perspective; 3. apply concepts of tourist behavior to explain how digital travelers use and respond to information technologies in tourism settings; 4. evaluate the factors that determine whether travelers will use a particular technology; 5. explain the role of IT in tourists’ decision-making processes; and 6. compare and contrast traditional and electronic tourism distribution systems. CABI TOURISM TEXTS Key Concepts Computer anxiety, computer phobia and technophobia Diffusion of Innovations Theory Digital tourism ecosystem Hype Cycle Multi-level perspective (MLP) Technological Innovation Theory Technology Acceptance Model (TAM) Unified Theory of Acceptance and Use of Technology (UTAUT) 4 CABI TOURISM TEXTS Inspiration Entities Connections Reflection Broadband, Mobile, WiFi, NFC, BLE, GPS, Broadcasting, Protocols, Standards Content Rich media, Maps & navigation, Transactions, Dynamic content, User-generated content Suppliers, Travelers, Intermediaries, Governments, DMOs Communities Social networks, Blogs, Reviews, Forums, Wikis, Local experts, Media sharing Devices Desktops, Smart devices, Mobile devices, Digital kiosks Transaction Touch Points Websites, Search engines, Mobile apps, Email, Telephone, Face-to-face Experience FIGURE 2.1 The digital tourism ecosystem CABI TOURISM TEXTS Digital Tourism Ecosystem Ecosystem functions Inspiration Transaction Experience Reflection Ecosystem health Productivity Resilience Diversity 6 CABI TOURISM TEXTS Digital Tourism Ecosystem Roles of entities and communities Catalyzers Dictators Milkers Niche players Digital technological environment Devices Connections Content Touch points 7 Increasing structuration of activities in local practices CABI TOURISM TEXTS Landscape developments Landscape developments put pressure on existing regime, which opens up, creating windows of opportunity for novelties Market preferences New regime influences landscape Policy Culture Socio-technical regime Industry Technology Science Socio-technical regime is “dynamically stable” External influences on niches New configuration breaks through, taking advantage of “windows of opportunity”. Adjustments occur in socio-technical regime. Elements become aligned and stabilize in a dominant design. Internal momentum increases. Small networks of actors support novelties on the basis of expectations and visions. Learning processes take place on multiple dimensions (co-construction). Efforts to link different elements in a seamless web. Niche innovations Time Source: Geels (2002) MARKET SHARE (%) CABI TOURISM TEXTS 100 75 50 25 TIME Innovators 2.5% Early adopters 13.5% Early majority 34% Late majority 34% Laggards 16% FIGURE 2.3 Diffusion of innovations Source: Rogers (1962) CABI TOURISM TEXTS PERFORMANCE SIXTH Ubiquitous computing nanotechnology FIFTH Digital networks FOURTH Electronics SECOND Steam power THIRD Electricity FIRST Mechanization 1780 INDUSTRIAL REVOLUTION 1840 1900 INFORMATION REVOLUTION 1950 1990 2020 TIME FIGURE 2.4 Waves of IT innovation Source: Schumpeter (1934), Perez (2002) EXPECTATIONS/VISIBILITY CABI TOURISM TEXTS “Early adopters” adopt products Supplier proliferation Negative publicity “Early majority” start to adopt product triggering high growth phase Mass-media hype Supplier failure/consolidation “Innovators” adopt products 1st generation products (expensive) New paradigms and practices become accepted 3rd generation products New rounds of venture capital 2nd generation products Startup firms R&D Technology trigger Peak of inflated expectations Trough of disillusionment Slope of enlightenment Plateau of productivity TIME FIGURE 2.5 Gartner Hype Cycle. Adapted from Tarkovskiy (2013) Value Realization CABI TOURISM TEXTS High Assessing External market external customer & internal client value (CV) Internal organization Organizational learning Low High Taking value propositions to market Value Potential Executing business innovation for growth (BI) Matching with economic opportunities (EO) Choosing Low enabling/emerging technologies (ET) Conveying new IT insights Communicating e-business initiatives COMMUNICATING ET ET ET Time FIGURE 2.6 Net-based Business Innovation Cycle. Adapted from Wheeler (2002) CABI TOURISM TEXTS Understanding the Digital Tourist Aspects of IT and behavior: Technology use and acceptance demographics trip characteristics psychographics UTAUT Decision-making information search trip planning purchase Information sharing Co-creation of experiences 13 CABI TOURISM TEXTS High tech and high touch travelers Travel Everyday life High tech High touch High tech High touch Spillovers Opportunity seekers Compensators Luddites 14 CABI TOURISM TEXTS Performance expectancy Effort expectancy Social influence Hedonic motivation Price value Habit Behavioral intention Use behavior Mediating factors • Gender • Age • Experience Facilitating factors • Resources • Knowledge • Compatibility • Support FIGURE 2.7 Unified Theory of Acceptance and Use of Technology II (UTAUT II). Adapted from Venkatesh, et al. (2012) CABI TOURISM TEXTS Understanding the Digital Tourist Quantitative Qualitative Traditional surveys Online surveys Polls Web analytics Big data Visitor tracking Experiments Interviews Focus groups Content analysis Sentiment analysis Netnography Observation Prototyping 16 SUPPLIERS CABI TOURISM TEXTS Airlines Rail Cruise Car rental Activities and events Hotels BOOKINGS CONNECTIONS Supplier reservation systems (CRS, ARS, PMS) Global distribution system (GDS) Switch Tour operator / wholesaler Point of sale (POS) Call center Traditional travel agent FIGURE 2.8 The traditional travel distribution system. 17 SUPPLIERS CABI TOURISM TEXTS Airlines Rail Car rental Cruise Activities and events Hotels BOOKINGS CONNECTIONS Supplier reservation systems (CRS, ARS, PMS) Channel manager Internet booking engine (IBE) GDS new entrants (GNE) Switch Travel management company (TMC) Tour operator wholesaler Call center Point of sale (POS) Online travel agent (OTA) Supplier website Social media Destination management system (DMS) Global distribution system (GDS) Mobile app Metasearch Affiliate DMO website Traditional travel agent FIGURE 2.9 The digital travel distribution system. 18 CABI TOURISM TEXTS Types of Information in Travel Distribution Descriptive information User information Analytical information Transactional information 19 CABI TOURISM TEXTS Discussion Questions 1. 2. 3. In 2007 the World Economic Forum released three scenarios of digital ecosystems, which are summarized in the following YouTube video: http://youtu.be/jnrAtXt3uu4. Considering IT developments since 2007, which one has been the most accurate? Justify your answer and discuss the implications for IT and tourism. Which of the innovation models presented in this chapter are most relevant to the tourism industry? Explain why. Conduct your own research about the major generational cohorts alive today (Baby Boomers, Gen X, Gen Y and Gen Z). Do they differ in how they use technologies? Are older consumers as likely to use IT for travel purposes as younger consumers? CABI TOURISM TEXTS Discussion Questions 4. 5. 6. Provide examples of how the use of technology can deliver both high-tech and high-touch outcomes. What are the key elements of the Unified Theory of Acceptance and Use of Technology II (UTAUT II). Provide your own tourism and technology example to illustrate the various components of this model. What challenges do small and medium tourism enterprises (SMTEs) face in travel distribution? How might SMTEs respond to the increasingly complex structure of the digital tourism distribution system? CABI TOURISM TEXTS Useful Websites American Society of Travel Agents (ASTA) http://www.asta.org/ Mygola http://www.mygola.com/ World Economic Forum Digital Ecosystems http://www.weforum.org/reports/digital-ecosystem-convergencebetween-it-telecoms-media-and-entertainment-scenarios-2015 22 CABI TOURISM TEXTS Case Study Mygola Online trip planning tool that aims to answer the following questions: What should I see? How do I get there? What should I look out for? Over 5000 curated itineraries. Use of text-mining software to parse travel articles and extract the structure of a trip. Algorithms also mine other information such as opening hours and travel distances between sites. Visually stunning images and videos are sourced to match itinerary. Users can customize itineraries by selecting interests, which are fed back to create a rich ‘big data’ source for refining the predictive power of the platform.