Transcript Chapter 1

E-commerce and Information
Technology in Hospitality and
Tourism
Chapter 1
Overview
Copyright 2004 by Zongqing Zhou, PhD
Niagara University
1.1 The Growth of the Internet
 Why the Internet grows so fast:
Ability to communicate with one another
instantaneously
No geographical limitations
No time constraints
A new area of economic growth
Figure 1.1
Online past-years travelers, 1996-2001
100
90
80
70
60
50
40
30
20
10
0
Number of
travelers
1996
1997
1998
1999
2000
2001
Table 1.1
Worldwide Internet Users by Language
Languages
Internet
Access
2002 (1,000s)
World Online
2004
Population (%) Estimated
Population
(1,000s)
English
230
36.5
28.0
European
non-English
224
35.5
328
Asian (including
Chinese
179
28.3
329
Chinese
68
n/a
170
Total
619
10.8
940
1.2 The Internet and the Hospitality
and Tourism Industry
Why the Internet and information
technology are so important to tourism
and hospitality industry:
The industry depends on and seeking new means to
distribute travel and hospitality products and services
Marketing information to consumers
Providing comfort and convenience to travelers
Usage by travelers planning and booking trips
continues to grow at a rapid rate
Demand for travel products and services is still
growing in spite of the dot com bust
Demographically attractive online visitors
1.3 Characteristics of the Internet
1.
2.
3.
4.
5.
6.
Peer-to-peer system
Interconnected network
Has hyperlink capability
Open architecture networking
The Internet is platform-independent
Does not require technical expertise or huge
financial clout to be present in the Net.
1.4 The Internet and E-Commerce
E-commerce is being integrated into the
strategic planning processes of companies
Travelers are using the Internet more in
their travel planning and reservations
Travelers also use the Internet to check
prices and/or schedules
1.5 The Internet and
Communication
Hospitality and tourism is an informationrich industry and its product and service
have the following characteristics:
Intangible
Perishable
Emotional-dependent
People-oriented
Brief Exposure to the services and products
The Internet and Communication
(cont.)
 Because of the intangibility of the product and
services, consumers rely on information before
they buy
 Consumers need fast, up-to-date and interactive
information
 Information should be available 24/7
 Companies seek the ability to communicate with
customers 24/7 for customer service
 Internet allows companies, big and small, to be
on a level-playing field in terms of marketing to
the online consumers.
The Internet and Communication
• Benefits of using the Internet for
communications
– Build up customer relations
– Develop royalty
– Through data mining and other online
research methods, develop market
segmentation and customization
– Intranet and Extranet streamline an
organization’s communication needs and
process.
1.6 The Internet and E-Marketing
and Information Distribution
 Marketing is about bringing product information
and services to the target consumers in a timely,
and accurate fashion
 The Internet is an ideal medium of doing the
above task.
 The need to devote more resources to capture
this growing online travel market
 With the Internet, target markets can be clearly
selected
The Internet and E-marketing and
Information Distribution (cont.)
Interactivity can be built into the marketing
message
Push marketing techniques allow
companies to send marketing messages
to individual consumers based on their
predefined preferences.
The Internet enables dynamic information
distribution and marketing. Information is
varied, time sensitive and richer
1.7 The Impact of the Internet on the
Hospitality and Tourism Industry
• Every aspect of the hospitality and tourism
industry has been affected by the Internet
• On the demand side, travelers are increasing
relying on the Internet for travel information and
reservation
• On the supply side, third parties such as
Expedia, are competing with the traditional travel
agents for customers.
• The traditional suppliers are joining in to market
directly to the consumers.
• The travel agencies are the most affected
1.8 The Internet and Hospitality and
Tourism Research
 Research is an important function of planning in
hospitality and tourism
 Marketing research is “the function which links
the consumer, customer, and public to the
marketer through information”
 Both Static and Dynamic information is available
on the Internet to be collected and analyzed.
 Internet research uses different methodologies
and techniques that are different from traditional
research
1.9 The
st
21
Century and
Beyond
 The hospitality and tourism industry will be
changed by the upcoming new technologies
a. Broadband communication
b. Wireless application
c. Artificial intelligence
 The future is here already: the convergence of
information technologies
 E-commerce will become part and parcel of
every business
 Issues of cost, ethics, copyright, privacy and
security remain to be challenges for the future