Information and Communication Technologies in Tourism Management Information Systems in Tourism eTourism and Management Management Information Systems (MISs) 2 Case study TourMIS Case study T-MONA ICT in Tourism © copyright IFITT Role and Importance of ICT in Tourism ICT usage has an impact on Market structures of the tourism industry Competitive position of market players Optimal ICT usage is prerequisite for competitiveness Optimal ICT usage requires intellectual and organisational change Tourism organisations strongly depend on the strategically right employment of ICT 3 ICT in Tourism © copyright IFITT Indicators for ICT usage 4 Are up-to-date information critical for purchasing or booking? Is the choice of products huge and complex? Is a price/service comparison with concurrence products important? Does the customer tend to fast and spontaneous purchasing decisions? Is a precise and prompt booking confirmation important? Is a dynamic price determination possible or necessary? Can the product attractiveness be increased by additional information? Can the customer be contacted directly or only via an intermediary? Exists a wide geographical despersal between suppliers and customers? ICT in Tourism © copyright IFITT Success Factors in the Information Age Information Time Individualisation Strategy Tourism as information business Structure Culture Fast reaction Optimisation of business processes Communication Cooperation Trust Willingness to change Teamwork Customer orientation (Schertler 1994) 5 ICT in Tourism © copyright IFITT ICT Support Individualisation ICT systems support product differentiation Reduction of transaction costs Virtual organisation as information network Economies of scale and flexibility Time and fast reaction 6 Process optimisation and efficiency increasement Disintermediation Concentration and economies of scale Information networks by cooperation Detailed product information Flexible & dynamic product creation Provision of up-to-date information Reduction of necessary time for search and booking process ICT in Tourism © copyright IFITT Competitive changes by ICT Bargaining power of customers Bargaining power of suppliers • ICT enables direct selling (disintermediation) ICT increases market transparency (price comparison) ICT reduces customer loyality Competitive rivalry between existing organisations ICT usage as central success factor Threat of new entrants 7 Threat of substitute products ICT reduces market entrance barriers ICT supports vertical integration ICT in Tourism • © copyright IFITT ICT replaces services of intermediaries (e.g. tour operators or travel agencies) eBusiness Models & Strategic ICT Use eBusiness Models in Tourism 8 E-Tailing (i.e. single hotel website or commission based portal supports customer query, e.g. www.tiscover.com, www.skistar.com) Infomediary (i.e. buyers & sellers gain info and do business, e.g. www.expedia.com , www.travelocity.com) Adverstising (i.e. search engines generate traffic and permit customization, e.g. www.austria.info) Brokerage (i.e. market makers) Marketplace exchange (e.g. www.orbitz.com) Demand collection (e.g. www.priceline.com) Auctions (e.g. www.ebay.com) ICT in Tourism © copyright IFITT eBusiness Models & Strategic ICT Use Strategic ICT Use Value proposition (tourist‘s benefit & role) Management & re-engineering (cost structure & sources of revenue, resources and assets) Market Value Chain (linkages to online portals & e-commerce operators, n/r/l PPP) eMarketing (interaktive meta-market offer experience customization) ICT investments (R&D, training, adequacy,TAM) Consumers e.g. DMS, online plattform e.g. online auction New markets new players Inter-firm collaboration networks Fixed network structure e.g. SBN Suppliers 9 ICT in Tourism © copyright IFITT eBusiness Adoption and Impact Online survey (Jan- March 2008) managers of 3,600 hotels E-Business IntensityReadiness-Impact Framework 723 completed questionnaires (20%) equally distributed over whole of (Fuchs et al. 2009) Austria Are Austria’s hotel managers unable to generate or to recognize efficiency gains from ICT ? e-Business Application Distribution via Online Platforms (OPLA) Online Procurement (PROC) E-Mail-Marketing (EMM) Property Management System (PMS) Costing & Accounting System (CAS) Websites with booking functionality (WBOOK) eCustomer Relationship Management (CRM) Intranet (INTR) Yield Management System (YMS) Enterprise Resource Planning System (ERP) Personal Information System (PIS) 10 ICT in Tourism Adoption Share Usage Intensity (Mean) 96% 88% 87% 78% 78% 68% 67% 50% 42% 41% 40% 1.85 3.21 2.73 2.37 3.14 2.99 3.08 4.00 4.71 4.86 4.76 © copyright IFITT 4,00 Supplier relationships Marketing costs 3,70 3,70 Procurement costs Labour productivity 3,60 3,50 Costs of internal processes Quality of relationship to partners 3,30 3,10 Tourist satisfaction Quality of relationship to tourists 2,80 2,40 Increased booking rate New guests 1,80 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 Management Information Systems in Tourism eTourism and Management Management Information Systems (MISs) 11 Case Study TourMIS Case Study T-MONA ICT in Tourism © copyright IFITT Management Information Systems 12 ICT in Tourism © copyright IFITT Management Information Systems MIS (Management information system) Collection, provision and preparation of relevant information for the management eMarket analysis eSatisfaction analysis eCompetition analysis eMarket potential analysis eBenchmarking analysis DSS (Decision support system) Direct decision support for the management Recommendation of optimal choice of action Calculation of optimal problem solution 13 ICT in Tourism Simulation, linear programming, etc. © copyright IFITT MIS in Tourism 14 ICT in Tourism © copyright IFITT MIS in Tourism 15 ICT in Tourism © copyright IFITT MIS in Tourism 16 ICT in Tourism © copyright IFITT eSatisfaction Analysis IPA matrix based on self-stated importance 5,00 Explicit self-stated Importance Accommodation 1 4,50 I. Concentrate here II. Keep up the good work 4,00 7 Shopping Attractions (?) 2 3 Restaurants 3,50 4 Sports (?) 5 3,00 III. Low Priority 6 IV. Possible Overkill Culture (?) 2,50 3,6 Wellness 3,8 4,0 4,2 4,4 Performance (Satisfaction) 17 ICT in Tourism © copyright IFITT 4,6 4,8 eSatisfaction Analysis Penalty and Reward Indices for Tourist Satisfaction Cluster 4 Reward for Satisfaction 0,15 Highly Important Performance Factor Basic Factor 0,09 * Satisfying Factor Low Important Low Important Satisfying Factor Basic Factor Performance Factor Performance Factor 0,089 * 0,1 0,078 * 0,05 0,021 0,02 0,006 0,004 Penalty for Dissatisfaction 0 Accomm. Entertainment Destination Recreation Sports Shopping Restaurants -0,029 -0,05 -0,036 -0,065 -0,06 -0,1 -0,087 * -0,104 ** -0,123 *** -0,15 Indices are standardized regression coefficients Significance levels 10% * 5% ** 1% *** www.destinometer.com 18 ICT in Tourism © copyright IFITT eSatisfaction Analysis www.destinometer.com 19 ICT in Tourism © copyright IFITT eBenchmarking Analysis Quality management and improvement technique 'standard against which something can be measured or judged' Measurement and improvement of an organisation's performance against best in the industry to obtain information about successful practices Benchmarking types according objective Performance benchmarking Process benchmarking Identifies efficient processes from many organisation units that perform similar functions Strategic benchmarking 20 Product and/or service comparisons (i.e. consumer satisfaction) and analysis of operating statistics ICT in Tourism Explores industries to identify winning strategies that enabled high-performing companies to be successful © copyright IFITT eBenchmarking Analysis Conventional benchmarking Output 2 Destination B (Best-Practice) (e.g. satisfaction with winter sport facilities) Destination A Destination C Destination D Destination E Output 1 (e.g. satisfaction with accommodation) Loss of destination profile 21 ICT in Tourism © copyright IFITT eBenchmarking Analysis DEA-based decision support Output 2 (e.g. satisfaction with winter sport facilities) Destination B Destination C Destination D Destination E Maximal performance Destination F Output 1 (e.g. satisfaction with accommodation) Fuchs/Höpken 2005 22 ICT in Tourism © copyright IFITT eBenchmarking Analysis 23 ICT in Tourism © copyright IFITT eBenchmarking Analysis IT framework for DEAbased decision support Cu stom er da ta - C ustom er profile - C ustom er satisfaction D estina tio n reso u rce da ta - C ap acity data - Sales online o nline D a ta w are h ou se D estin ation profiles - S upp lier factors - C ustom er factors (Factor structure of custom er satisfaction) Custo m er profiles D ecision su pp ort sy stem Interactive D EA -b ased decision sup port DMOs DMSs S uppliers Fuchs/Höpken 2005 24 ICT in Tourism © copyright IFITT Management Information Systems in Tourism eTourism and Management Management Information Systems (MISs) Case Study TourMIS 25 Case Study T-MONA ICT in Tourism © copyright IFITT TourMIS Research issues for tourism managers Significance of tourism within specific destinations or regions/cities Changes and trends in travel behaviour Optimal market segmentation strategies Comparison amoung destinations Evaluation of marketing strategies and business models Effectiveness of ICT strategies Wöber 1998 26 ICT in Tourism © copyright IFITT TourMIS Tourism Management Information System 27 Electronic delivery of market research information and decision support tools for the tourism management Provides free and easy access to tourism statistics Platform for tourism associations to exchange data/information/knowledge Supports the harmonisation of tourism statistics Tool to learn about the actual usage of tourism market research information Increases the application of management science models in tourism ICT in Tourism © copyright IFITT Technical Evolution of TourMIS 28 1984 TourMIS installed as mainframe application 1990 TourMIS transferred to PC solution 1998 TourMIS introduced on the Internet (xBase, preformatted web pages) 1999 Technical redesign (SQL server, dynamically generated web pages) 2004 > 100.000 queries answered by TourMIS ICT in Tourism © copyright IFITT Framework for Tourism Statistics Model for tourism statistic data Accommodation defined measures of demand Definition of Tourism Demand Supply Scope All forms of accommodation Visitors Tourists All paid forms of accommodation Same-day visitors Hotels and similar establishments Other Travellers Definition of City Other paid forms of accommodation Objective criteria Size Accommodation capacity Congress facilities Transportation facilities Cultural supply Visitors’ perceptions City’s self-image Unpaid forms of accommodation (VFR) Area 29 ICT in Tourism Arrivals (Bed/Room-) Nights Expenditures/Revenues Greater city area City trip relevant area Wöber 1998 © copyright IFITT Welcome to TourMIS 30 ICT in Tourism © copyright IFITT Tourism in Austria – latest Trends 31 ICT in Tourism © copyright IFITT Nights & Arrivals 32 ICT in Tourism © copyright IFITT Nights & Arrivals 33 ICT in Tourism © copyright IFITT Nights & Arrivals 34 ICT in Tourism © copyright IFITT Nights & Arrivals - Trends 35 ICT in Tourism © copyright IFITT Nights & Arrivals - Benchmarking 36 ICT in Tourism © copyright IFITT Nights & Arrivals - Benchmarking 37 ICT in Tourism © copyright IFITT Nights & Arrivals - Benchmarking 38 ICT in Tourism © copyright IFITT Nights & Arrivals - Benchmarking 39 ICT in Tourism © copyright IFITT Attractions & Sights 40 ICT in Tourism © copyright IFITT Attractions & Sights 41 ICT in Tourism © copyright IFITT Attractions & Sights 42 ICT in Tourism © copyright IFITT Management Information Systems in Tourism 43 eTourism and Management Management Information Systems (MISs) Case Study TourMIS Case Study T-MONA ICT in Tourism © copyright IFITT T-MONA T-MONA – MIS for tourism 44 Online management & domain information system for the tourism decision-maker Partners: Österreich Werbung, RTOs, destinations, Statistik Austria Collection and preparation of information about organisations, municipalities, destinations, the market (customers/guests) Anonym or open benchmarking on different levels Aggregated domain figures for regional or national organisations Latest reports and statistics ASP solution: Access via Internet – no local software ICT in Tourism © copyright IFITT Technical Overview Apache Apache webserver (http requests) Webserver Jetty (mod_proxi) Jetty T-MONA www.mortbay.org Helma mySQLmySQL mySQL 45 ICT in Tourism © copyright IFITT Application server Helma (www.helma.org) mySQL database T-MONA Data Model SAMON YEARLY SURVEY Customer satisfaction data Balance figures TRENDMONITOR Indicators Data transfer Aggregation Data transfer Offers database Data transfer SURVEY SCOBE Survey variables Balance & customer figures, indicators Offers database Creates Offers database Enters data REPORT Offers database Calculations MEMBER Basic data Gets Creates customer CUSTOMER Customer data Enters data 46 ICT in Tourism © copyright IFITT Data Collection Guest surveys in Austria Guest profile Travel motives Information and booking behaviour Activities Satisfaction Re-visit intention Recommendation intention Expenditures Wighting of results Based on figures of Statistik Austria 47 ICT in Tourism Region, destination of origin, accommodation type, season © copyright IFITT Guest Typology of a Destination 48 ICT in Tourism © copyright IFITT Guest Satisfaction 49 ICT in Tourism © copyright IFITT Destination Positioning -- Hospitable ++ Perceptual map: charming or hospitable -- 50 ICT in Tourism Charming © copyright IFITT ++