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IT in Tourism Industry
IT in Tourism Industry
IT in Tourism Industry
Tourism has become a major phenomenon of the modern society. People travel due to
different motives. Tourism industry is an amalgamation of transportation, accommodation,
entertainment & recreation and includes intermediaries (travel agents & tour operators). Since
this is the industry of the industries, for its proper coordination & smooth running, use of
information & communication technologies has become a vital part of this industry. For real
time availability of seats in the airlines, railways & Volvos and their bookings IT plays very
important role. Airlines are using Global Distributions System (GDS) for these purposes.
Hotels are using IDS, interactive TV and Interactive Phone for reservations and operations.
Many software and networking channels have been developed for travel agencies to solve the
purpose ranging from bookings to accounting.
Introduction of information technology in the tourism industry has changed its
dimensions and resulted in the form of exponential growth. Now information and options are
available online and one has to choose the best from these options to make booking and pay
online. This has reduced the unnecessary rush of customers in booking offices. Its feasibility
can be seen in terms of reduced manpower requirement in the offices. This study is focused
on the importance & use of IT in tourism industry and its future. The study is exploratory in
nature as it is based on the secondary sources of information. It covers the details of basic IT
tools associated with tourism industry and the drawback involved as well as identifies what
improvements are required to make it more effective and easy to use.
NEED OF TECHNOLOGY IN TOURISM
The importance of information technology in tourism, especially of World Wide Web, has
increased tremendously over the past year and this trend will certainly continue. IT have
facilitated business transaction in the industry by networking with trade partners, distribution
of product services and providing information to consumers across the globe. IT spread
throughout almost all aspects of tourism and related industry. IT is necessary not only in
smoothly running the travel business but also for the development of the tourism product. At
beginning for identifying and developing tourism site Geospatial Information Technologies
are used. The integration of IT in destination marketing organization is an important key to
success.
maximized due to inventory control. The travel agent is connected online to the central host
computer system. In this system it is possible that airliners, hotels and car rental companies
can talk to the travel agent or vice versa. This system contributes to a great extent in
increasing sales volume and giving precise information on the availability and selling of the
products efficiently ensuring substantial profit gain.
Global Distribution Systems (GDS):
GDSs are systems which distribute reservation and information services to sales outlets
around the world, owned by a group of airline companies. Amadeus, Galileo, Sabre, Abacus
and World Span are some GDSs. These worlds leading GDSs are switches or simply
computers that are connected on the one side to many different supplier systems and on the
other side to many end users (travel agents).
Online Travel Portals:
Availability of free information does not ensure that customers will use it, but depend on the
reliability of supplier. The role of online travel websites is to facilitate in increasing
accessibility of information and enhancing communication. The ability to make comparisons
between the different products and services is possible in online environment without moving
to different agencies. Product information, pricing information, online booking facilities and
quick webpage load time are determinants of customer satisfaction. Travel websites with
accessibility, navigation, design, reliability and customization of the services are a boon to
potential and propective cumtomers. In addition to all these, payment options is one of the
very important reasons behind success of an online portal. Many accept payments only
through credit cards whereas other accept debit card, internet banking, cash cards etc. reliable
payment gateway is important otherwise people do not want to share their account details.
THREATS
Use of IT in tourism in India is relatively young and still tourism industry in India is
not well organized to absorb the advances in information technology. They generally
lack technical and financial resources and their scale of operation is too limited to take
gives the firm to make people feel their dream itineraries, which they share with their friends
too. Social media platforms helps travel operators all over the world to reach maximum
people. The best method for the travel agencies is to choose the best medium and integrate
efforts for more conversions. To plan an actionable social media strategy for Travel requires
brainstorming of strategies and tactics. Social media is the solid medium to engage online
population. They can create contents, newsletters and alter strategies in line with their goals.
Integrating on different social media platforms can help Travel agencies to reach Crowning
positions. To personally connect with the clients, Travel firms can design campaigns and run
contests with exciting offers. For this the agencies should review the platforms time to time
and remain updated.
MAJOR SOCIAL CHANNELS IN TRAVEL WORLD
Youtube
Every month 800 million users visit on YouTube. YouTube is the second largest search engine
among all social media platforms. Adding video on YouTube, we boost ranking on Google as
well. The reason behind this, Google owns YouTube. Imagine how YouTube can create
wonders for the travel business i.e Scrolling the pictures and reading about the destinations
descriptively.
Instagram
Travel agencies consider Instagram as most important social platform which leads them to
world of leisurely photos and videos. It has functionality of doing location hashtags.
Instragram can link you to the facebook and twitter audience too, which can play a
remarkable role. If we ever check the instragram post with the hashtags of Travel, we search
around 1.5 Million on #travelphotography. According to research done by Pew Research
centre in September 2014 survey, about half of all instagram users, use Instagram daily. 53%
of adults (18-29) also known as Millennial, have instagram account.
Facebook
It connects all the dots .We can upload pictures, Publish posts, uploads videos . It is regarded
as the best way to visually represent the pictures of the different places. Example :
makemytrip facebook page has 1.5 millions like.
Linkedin
Travel industry needs a new blood every day, they run recruitment events but dont get the
required talent in the house. LinkedIn is considered as a professional directory channel.
Blogging
Writing a Blog for the company is the fantastic way to drive conversion. Tell your existing
clients to write for the firm or sometimes organize Best Travel Experience story writing
competition. Blogging becomes the obvious source of content and brings traffic on the
website.
Case Study: Pure Michigan Facebook Campaign
Arguably the most recognizable name in social media, Facebook, a social utility that helps
people communicate more efficiently with their friends, family, and coworkers. Facebook
has more than 800 million active users, more than 50% of whom log on to Facebook once or
more per day. Facebook offers businesses and organizations several tools to reach their target
audience and foster positive relationships between brand and consumer. Businesses can create
a facebook Page for free; Facebook defines a Page as a space to interact with your fans,
get to know potential customers and build a community. Consumers and brands take part in
a virtual conversation via posts to the wall of the business/organizations Facebook Page.
Pages can also be customized with photos, videos, and textual information about the business
or organization; additionally, apps can be added to Pages for added features and capabilities
to engage Page visitors.
Facebook offers free analytics tools for owners of Pages; information includes demographic
information about fans, traffic rates for Page visits, user engagement and activity, and tips for
improvement. Because of the prevalence of Facebook among internet users of all ages,
Facebook is becoming almost a necessity for building brands and operating a business.
Consumers use Facebook as a means of gaining information about a product or service, and
rely on Facebook for interaction with the brand. Benefits of customer-brand interaction via
Facebook go beyond the sharing of information; when someone is a Facebook fan of a
product/service, he/she is 41% more likely to recommend that product/service to friends.
Michigan was awarded the number one spot in Gammet Interactives Q2 2011 How Social is
Your DMO report. DMO expands to Destination Marketing Organizations. Even though
Michigan was bested by Florida for the top spot in the July 2011 rankings, Michigan once
again received high social media ratings, placing second overall, and receiving the highest
Facebook marketing score (Gammet Interactive, 2011).
As of December 2011, the Michigan Facebook Page includes frequent wall posts by Pure
Michigan; the purpose of these posts are generally to update fans on Michigan news, share
fun facts, and/or promote current deals and/or contests. The Page also sees daily fan
interaction, as fans post photos, comments, questions, and other Michigan-related content.
During the 2011 holiday season, fans are encouraged to post pictures of their Michigan
Christmas trees. Fans can submit photos year-round for inclusion in special fan photo
albums. Examples of album titles include Pure Michigan Facebook Photos from Our Fans
November 2011, Michigan Sunrises and Sunsets From Our Facebook Fans, and Pure
Michigan Facebook Photos October 2011 (Pure Michigan, 2011).
In the Videos
section, Page visitors can view promotional videos created for the Pure Michigan campaign.
The Pure Michigan Facebook Page also includes a section that allows users to read the
@PureMichigan Twitter stream, with a Follow button incorporated into the page (Pure
Michigan, 2011). In addition to adding the Twitter app to their Facebook Page, Pure
Michigan developed two special apps to enhance their Facebook presence: Welcome, and
Merchandising. Pure Michigans Welcome app encourages Page visitors to Like the Pure
Michigan, post content such as travel trips, sign up for the Michigan.org eNewsletter, watch
current Pure Michigan commercials, take part in featured deals, and visit other social media
sites run by the Pure Michigan team. Additionally, the Welcome section highlights
upcoming events taking place around the state of Michigan (Pure Michigan, 2011).
Michigan was recognized in June 2011 for having doubled their Facebook fansbringing the
number of fans from 50,000 to 100,000in less than two months (Pure Michigan Facebook
fans, 2010). Michigans DMO brands the Facebook page for the state Pure Michigan, and
positions Michigan as a year-round travel destination for those who live, work, or play in
this great state. Michigans Facebook presence has continued to grow in the past several
months, becoming the first state tourism Facebook page with over 200,000 fans in March
2011 (Marketwire, 2011). As of December 2011, the number Pure Michigan fans has
surpassed 333,000 (Pure Michigan, 2011).
According to data compiled by market research and consulting firm, ForeSee Results, the
Pure Michigan Facebook Page has been extremely successful as a source of information and
a motivating factor that increased the number of travel plans to visit the state. According to
the ForeSee findings, nearly three quarters of the Pure Michigan Facebook fans learned
about places and activities in Michigan they did not know about previously...a third of those
fans were inspired to travel to or within Michigan after reading the posts (Pure Michigan
Facebook fans, 2010). This high rate of audience response is indicative of the power of
social media as a promotional tool within the tourism industry, and Michigans ability to
effectively use social media in a tourism marketing campaign.
Conclusion
As social media continues to grow, so will the importance of harnessing it as a marketing tool
for all industries. The tourism industry is primed to take advantage of social media outlets, as
the industry has long relied largely on destination reputation, consumer opinion, spread of
information, and positive word-of-mouth advertising. In many instances, such as the case of
the Pure Michigan campaign and the Explore Chicago campaign, integration of social media
into the marketing strategy of a Destination Marketing Organizations (DMO) has shown
remarkable, measurable results in increased rates of visits as well as visitor satisfaction. As a
result, DMOs around the country are becoming more reliant on social media as a costefficient and effective tool for tourism marketing.