Homework Help is Here – Start Your Trial Now!
Engineering
Computer Science
Which influence of information technology to the tourism and hospitality industry affected you the most? In what way?

Which influence of information technology to the tourism and hospitality industry affected you the most? In what way?

icon
Related questions
Question

Which influence of information technology to the tourism and hospitality industry affected you the most? In what way?

Gretzel & Fesenmaier, 2009). Some of the major influences of technology in the tourism industry can be observed in the following aspects: Travel Distribution Internet technology has a great impact on travel distribution, as it enables direct transactions between consumers and primary suppliers. This is known as disintermediation or the elimination of intermediaries in the conduct of tourism transactions. Such disintermediation empowers suppliers who were previously unable to obtain and maintain contacts with consumers and handle transactions without the help of intermediaries. At the same time, travel distribution experienced re-intermediation as new intermediaries (such as online travel agencies [OTAS]) emerged that handle tourism transactions, although several large hotel providers have chosen not to participate in this form of distribution. They only allow booking from their own websites and offer price guarantees and incentives to consumers who book directly with them. Another addition in technology-based players in the distribution chain are metamediaries that form strategic alliances with suppliers and provide consumers with opportunities to simultaneously search the databases of their partners (Gretzel & Fesenmaier, 2009). They aim to charge for passing along the consumer directly to the supplier site. These fight the traditional concept of using online travel agencies as the major medium in referring shoppers to a booking site. For hotels, this means potential additional costs for a booking on top of the fees for each transaction completed through a third party. They present more content within the initial search, which potentially bypasses multiple visits to OTAS or hotel websites. As a result, the metamediaries can gain control over the entire booking process by being the initial point of contact to consumers and, thus, can direct the consumer to additional websites or channels (Nieberding, 2015). Dynamic packaging is another technology-based development disrupting established relationships among tourism service providers. According to Cardoso and Lange (as cited in Gretzel & Fesenmaier, 2009), dynamic packaging involves the assembly of various travel products and service components into one (1) package at the moment of request. This requires instant access to information, interaction with the consumer, and TH2106 adaptability. This also changes the notion of collaboration in tourism into being driven by consumers rather than providers. Tourism Marketing Information technology has also led to a change in the marketing environment of the tourism industry. Website marketing has become an essential component of tourism marketing. Destination marketing organizations (DMOS) are particularly affected by technological developments. Their product is destination- related information, and such information is increasingly provided by websites (such as those of travel agencies, portals, consumer communities, and even suppliers). Thus, DMOS have to adapt their offerings and services to the new realities of tourism marketing constantly. Emerging technologies also provide opportunities for collaboration within a destination and among destinations in a region. Most notable is the Web 2.0 technologies, which are based on user-generated content and social networking applications that provide tourism marketers with increasing challenges. Consumer reviews and blogs can easily damage costly branding strategies employed by tourism marketers. These contents are perceived as more credible than marketer-based information and are extremely search- engine friendly, making it reach greater rates of exposure and have more impact on consumers. Some tourism marketers have successfully implemented Web 2.0 marketing. For example, JetBlue Airways, a New York's hometown airline and a leading carrier in Boston, asks consumers to submit their stories online or visit their touring JetBlue Story Booth to make a recording. Another example is Sheraton Hotels and Resorts (part of Marriott International, Inc. with over 435 hotels and 88 resorts in more than 70 countries worldwide) presenting consumer stories on its website (sheraton.marriott.com). Very often, travelers will be looking for other customers' experiences from websites and other media and will be generating their personal evaluations of a product or service. Tourism marketers must realize that word of mouth has evolved and that new technologies should be utilized to capture and promote services better.
Transcribed Image Text:Gretzel & Fesenmaier, 2009). Some of the major influences of technology in the tourism industry can be observed in the following aspects: Travel Distribution Internet technology has a great impact on travel distribution, as it enables direct transactions between consumers and primary suppliers. This is known as disintermediation or the elimination of intermediaries in the conduct of tourism transactions. Such disintermediation empowers suppliers who were previously unable to obtain and maintain contacts with consumers and handle transactions without the help of intermediaries. At the same time, travel distribution experienced re-intermediation as new intermediaries (such as online travel agencies [OTAS]) emerged that handle tourism transactions, although several large hotel providers have chosen not to participate in this form of distribution. They only allow booking from their own websites and offer price guarantees and incentives to consumers who book directly with them. Another addition in technology-based players in the distribution chain are metamediaries that form strategic alliances with suppliers and provide consumers with opportunities to simultaneously search the databases of their partners (Gretzel & Fesenmaier, 2009). They aim to charge for passing along the consumer directly to the supplier site. These fight the traditional concept of using online travel agencies as the major medium in referring shoppers to a booking site. For hotels, this means potential additional costs for a booking on top of the fees for each transaction completed through a third party. They present more content within the initial search, which potentially bypasses multiple visits to OTAS or hotel websites. As a result, the metamediaries can gain control over the entire booking process by being the initial point of contact to consumers and, thus, can direct the consumer to additional websites or channels (Nieberding, 2015). Dynamic packaging is another technology-based development disrupting established relationships among tourism service providers. According to Cardoso and Lange (as cited in Gretzel & Fesenmaier, 2009), dynamic packaging involves the assembly of various travel products and service components into one (1) package at the moment of request. This requires instant access to information, interaction with the consumer, and TH2106 adaptability. This also changes the notion of collaboration in tourism into being driven by consumers rather than providers. Tourism Marketing Information technology has also led to a change in the marketing environment of the tourism industry. Website marketing has become an essential component of tourism marketing. Destination marketing organizations (DMOS) are particularly affected by technological developments. Their product is destination- related information, and such information is increasingly provided by websites (such as those of travel agencies, portals, consumer communities, and even suppliers). Thus, DMOS have to adapt their offerings and services to the new realities of tourism marketing constantly. Emerging technologies also provide opportunities for collaboration within a destination and among destinations in a region. Most notable is the Web 2.0 technologies, which are based on user-generated content and social networking applications that provide tourism marketers with increasing challenges. Consumer reviews and blogs can easily damage costly branding strategies employed by tourism marketers. These contents are perceived as more credible than marketer-based information and are extremely search- engine friendly, making it reach greater rates of exposure and have more impact on consumers. Some tourism marketers have successfully implemented Web 2.0 marketing. For example, JetBlue Airways, a New York's hometown airline and a leading carrier in Boston, asks consumers to submit their stories online or visit their touring JetBlue Story Booth to make a recording. Another example is Sheraton Hotels and Resorts (part of Marriott International, Inc. with over 435 hotels and 88 resorts in more than 70 countries worldwide) presenting consumer stories on its website (sheraton.marriott.com). Very often, travelers will be looking for other customers' experiences from websites and other media and will be generating their personal evaluations of a product or service. Tourism marketers must realize that word of mouth has evolved and that new technologies should be utilized to capture and promote services better.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Internet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.