Chapter 7
Operational management
and distribution in e-tourism
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Chapter Objectives
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Tourism distribution mechanisms
Functions and benefits through the tourism
distribution channel
How ICT supported eTourism management
operation?
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ICT operation in Airline (eAirline)
ICT operation in Tourism Service (eTour Operators
and eTravel Agencies)
ICT operation in Hotel (eHospitality)
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Tourism distribution
mechanisms
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Distribution becomes one of the most
critical factors for the competitiveness
of tourism organizations and
destinations.
Setting appropriate distribution
channels effectively allows principals to
build bridges with consumers, address
their needs and provide mechanisms for
purchasing tourism products.
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Distribution channel is any organized
and serviced system, created or utilized
to provide convenient points of sale and
access to consumer.
Most distribution channels therefore
provide information for prospective
tourists, bundle tourism products
together, and also establish mechanisms
that enable consumers to make,
confirm and pay for reservations.
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Discussion

Discuss on impact of ITC development
to some local distributor (tour agency
and tour operator). How they react to
this change?
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Functions and benefits through the
tourism distribution channel
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Facilitation of access to often remote
tourism products for bother bookings
and purchasing.
Provision of information by using
discussions, leaflets, maps, brochures,
video, CDs.
Consumers’ guidance/consultation for
particular packages or products.
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Undertake pre and post experience
marketing research on consumers’
needs and experiences.
Assemble tourism products from
different providers according to tourists’
expectations.
Facilitating selling process of tourism
products, by reserving and issuing
travel documents.
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Issue of travel documentation, i.e.
ticketing, voucher ect.
Utilize a clearing system where each
channel member receives payments for
their services.
Arranging details and ancillary services,
such as insurance, visas, currency.
Complaint handling for both customers
and industry.
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Internet-supported eTourism
management
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Tourism organizations use ICTs to
communicate with all stakeholders and
to manage and control their inventory.
They use the Internet for eCommerce
(selling products directly to their
consumers.)
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Internet presence is part of the
promotion mix for both tourism
enterprises and destinations.
Developing interactive facilities enables
consumers to offer feedback to
enterprises and to communicate
dynamically.
Employment and HRM is also
empowered through the Internet as
increasingly tourism organizations rely
on the internet for advertising vacancies
& recruitment. (let check www.CamHr.com)
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Operation and Distribute System

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ICT operation in Airline (eAirline)
ICT operation in Tourism Service (eTour
Operators and eTravel Agencies)
ICT operation in Hotel (eHospitality)
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eAirline
From CRSs to GDSs
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CRSs on one hand aimed at organizing
airlines internally, by offering them a
tool to manage their inventory, and on
the other aimed to allow distributors
and partners to access information
about availability and prices.
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In the mid 1980s, CRSs developed into
much more comprehensive global
distribution system (GDSs), offering a
wide range of tourism products and
providing the backbone mechanism for
communication between principals and
travel agencies.
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GDSs provide one-stop customer
service at both the point of departure
and the destination.
GDSs have effectively become travel
supermarkets offering information and
reservation capabilities for the entire
range of travel products, including
accommodation, car rentals, schedules
for non-air transportation.
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Airlines types and ICT utilization
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There are several different kinds of
airlines, which can be characterized
mainly by type, ownership and routes.
Different types of airlines use ICTs
differently and have a different
emphasis on their online presence.
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Although most of them take advantages
of the basic ICT modules
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Scheduled carries
No-fills or low-cost carriers
Charter airlines
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Critical issues for the future
success of airlines
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Technology will assist airlines to
integrate their operational and to
control and coordinate all their business
and management functions.
The eAirlines’ futures will be determined
by their ability to use ICT for achieving
their vision and mission.
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Airlines around the world face a wide
range of challenges and ICTs provide
several tools to help them to address
these challenges.
Safety and security have emerged as
being the most critical challenges for
airlines.
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Frequent travellers demand speedier
check-in processes and a higher degree
of flexibility and control over their own
travel arrangements.
More passengers prefer self-service
check-in rather than queuing up in
overcrowded terminals.
case of AirAsia, Jetstar Airline
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Providing self-service through kiosks and
wireless technologies can mean
operational and productivity gains,
improved customer satisfaction and
reduced costs.
With wireless solutions, airlines can offer
their passengers the ability to purchase
through a handheld device virtually
anywhere, at any time.
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eTour Operators and eTravel
Agencies
Tour operator functions and types
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Tour operators undertake a wide range
of activities in order to negotiate with
suppliers as well as to prepare and sell
their packages to consumers.
They normally pre-reserve and prepurchase a number of travel services
and set up a package at a single price.
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Packages are standardized and
repetitive and they offer transport and
accommodation, while sometimes they
include catering, entertainment, other
facilities and service.
Tour operating is a process of
combining aircraft seats and beds in
hotels in a manner that will make the
purchase price attractive to potential
holidaymakers.
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The use of videotext as an early
leisure travel network
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In the early 1980s, tour operators realized
that they had to capitalize on ICTs and use
more effective distribution methods.
They wanted to enhance their productivity
improve their holiday-capability
management, reduce the labor cost of
telephone operators and provide a better
service to both agencies and consumers.
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eTravel Agencies
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Holloway (1998) suggests that the main
role of agents is to provide a convenient
location for the purchase of travel.
At the locations they act as booking
agents for holidays and travel, as well
as a source of information and advice
on travel services.
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Agencies carry limited financial risk, as
they do not purchase tourism products
in advance. They only reserve, confirm,
purchase, issue travel documents, i.e.
tickets and vouchers, on customer
request.
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ICTs provide a wide range of tools for
travel agencies, by providing the
mechanism for information exchange
and tourism product distribution.
ICTs enable agencies to build
complicated travel itineraries in
minutes, while providing up-to-date
schedules, prices and availability data.
Travel agencies use ICTs to access
tourism suppliers’ database, to verify
availability and rates, and to confirm
reservations.
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eHospitality
Accommodation establishment
types and ICT utilization
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There are a great range of hotel types
and categories, resulting in a wide
range of ICT applications being used.
Understanding the variables
characterizing a hotel property can
therefore help us to appreciate their
ICT requirements.
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Variables characterizing
accommodation establishments
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Factors
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Location: urban/rural/seaside
Size: small/medium/large properties
Ownership and affiliation: familyrun/Corp/franchising/consortia/state-owned
Price:
exclusive/expensive/affordable/inexpensive
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Activities: sports/all-inclusive/clubs/farmhouses
Services: hotels/B&B/rooms to let/self-serviced
apartments
Reasons of visiting for travellers:
leisure/business/conference/seminars/incentives
Reasons of visiting for locals: functions/special
occasion
Proximity to transportation terminals:
airport/port/railway/roadside
Primary market: youth hotel/university and
school accommodation/hospices
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Lessons and issues for the future
of eHospitality
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Customer care and recognition become
central for the successful hospitality
organization of the future.
Customer demand more and are
increasingly difficult to satisfy.
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To please them, hotels need to
appreciate customer motivations,
circumstances and even mood and
should work harder and differently every
time.
Stemming from the Internet are wireless
devices and bluetooth technology, all of
which promise to be the next big thing
in hotel operations.
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The ability to recognize guests and have
access to guest data via biometrics
would help to improve the levels of
service.
Hotel rooms will increasingly offer more
ICT capabilities to provide in-room
entertainment as well as working
facilities, emulating the home away
from home and office away from office
principles.
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Show
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Property management system
Guesthouse (Room Management
System)
Tour operator management system
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