E-Tourism
Tourism Business Processes and IT
The tourism industry is a complex network of interconnected sectors—accommodation, transportation, food & beverage, and attractions. Its business processes are generally divided into four key stages that mirror the traveler's journey.
Here is an explanation of these core business processes and how Information Technology (IT) streamlines each one, along with real-world examples.
Business Processes in Tourism Industry
Tourism industry consists of several key processes that help deliver travel services to customers:- Booking and Reservation
Process of searching, selecting, and booking flights, hotels, tours, and transportation. Includes payment and confirmation.
- Tour Package Development
Travel agencies design tour packages by negotiating with hotels, airlines, transport companies, and guides.
- Service Delivery / Tour Operations
Actual arrangements for the tourist such as airport pickup, hotel check-in, sightseeing, and transportation.
- Customer Relationship Management (CRM)
Managing customer inquiries, complaints, feedback, and offering after-sales services.
- Marketing and Promotion
Promoting destinations through advertisements, social media, websites, brochures, and campaigns.
- Financial Management
Handling payment collection, refunds, billing, budgeting, and vendor payments.
How Information Technology Helps Tourism Processes
- Online Booking Systems
IT enables online platforms where customers can easily book flights, hotels, and tour packages. Example: Booking.com, MakeMyTrip.
Global Distribution Systems (GDS): These are massive networks that enable travel agencies to access real-time inventory of airlines, hotels, and car rentals globally in seconds.
Dynamic Pricing Software: AI algorithms automatically adjust prices based on demand, weather, and competitor rates to maximize revenue.
Amadeus and Sabre are the backbone GDS platforms. When you book a flight on a site like Expedia, it queries these systems to find the seat and price instantly, bypassing the need for manual calls to airlines.
- Websites and Mobile Apps
Provide 24/7 access to information about destinations, prices, availability, and reviews.
Tourism Australia utilized VR headsets to transport potential tourists in London and Seoul to Australian landmarks like the Great Barrier Reef, significantly boosting interest and bookings.
TripAdvisor uses simple AI algorithms to recommend destinations based on a user's past viewing history.
- GIS and GPS
Used for navigation, location tracking, and mapping tourist routes. Example: Google Maps for guiding tourists.
- Social Media Marketing
Helps in digital promotion through Facebook, Instagram, YouTube, and travel blogs.
- CRM Software
Stores customer data, preferences, and helps travel companies send personalized offers.
Big Data & Analytics: IT tools analyze vast amounts of user data (search history, social media activity) to predict travel trends and personalize ads.
Virtual Reality (VR) & Augmented Reality (AR): These technologies allow customers to "try before they buy," reducing the hesitation to book expensive trips.
Internet of Things (IoT): Connected devices allow for smart inventory management and asset tracking.
Mobile Technology: Apps allow for self-service, reducing lines and staffing needs.
Hilton Honors App: Allows guests to check in, choose their exact room from a digital floor plan, and use their smartphone as a Digital Key to unlock the door, completely skipping the front desk.
Delta Airlines: Uses RFID technology in baggage tags. Passengers can track their bag's exact location via the Fly Delta app, reducing lost luggage claims and anxiety.
- Online Payment Systems
E-payment platforms make booking and refund processes fast and secure. Example: eSewa, Khalti, PayPal.
- AI and Chatbots
Provide 24/7 automated customer support and help answer common travel queries.
- Data Analytics
Used to study customer behavior, predict demand, and set competitive pricing.
CRM Systems: Centralized databases track every interaction a guest has had with the brand (e.g., "Guest prefers feather pillows").
AI Chatbots: These handle routine inquiries 24/7, allowing human staff to focus on complex issues.
Cross-Process IT Solutions
- All-in-One Tourism ERP Systems (e.g., SABRE, TravelCarma) integrate operations from booking to finance.
- Mobile Apps (e.g., Hopper for travel deals, Guides by Lonely Planet) enhance customer experience and engagement.
- Cloud Computing enables scalability and remote access for tourism businesses.
Benefits of IT in Tourism
- Efficiency: Automation reduces manual work and errors.
- Personalization: Data analytics enable tailored offers.
- Global Reach: Online platforms break geographical barriers.
- Cost Reduction: Lower distribution and operational costs.
- Real-Time Updates: Immediate changes in pricing, availability, and itineraries.
By leveraging IT, tourism businesses can streamline operations, enhance customer experiences, and remain competitive in a dynamic global market.