Information Systems in Tourism and Hospitality – An Impact Study
Venugopal C.K.
Assistant Professor and
HOD, Department of IT
KITTS
Introduction
Information Technology has influenced all walks of our lives over the
last few decades in a tremendous manner with Tourism and Travel sector
being one the chief beneficiaries. In earlier days people did not venture
to distant places largely because of lack of Information about it. With the
advent of IT into the travel sector, the modern day traveler has a plethora
of options to choose from, with Internet being one of the popular tools.
Places of tourist interest and scenic beauty often do not catch attention
of the customer largely due to the fact they are not marketed well. Things
have changed largely due to the use of websites for tourism marketing. Text
mixed with rich graphics along with moving visual has added to the impact.
In the international tourism scenario, Information systems have found
wide acceptance. The users of such systems are not just managers of
organizations, but policy -makers, tourists, planners and stakeholders.
Information Systems in Tourism sector play an important role in planning,
policy making, management, and operations. A study of Information Systems
used in tourism sector in Kerala will be of use since information systems
can be used strategically for global competence. In Kerala context, tourism
has become a vital tool in terms of employment generation and foreign
exchange.
The importance of Information Systems in the national and Kerala
scenario is very high. Spiraling fuel prices coupled with greater demands
from customers has put great pressure on airlines and tour operators. IT
has provided answer to these problems by use of e-ticketing, Information
Systems, GIS based applications etc. This paper examines the impact of IT
based systems in Tourism and Hospitality with special emphasis to Kerala
Review of Literature
Tourism and Information and Communication Technologies (ICTs) are the
chief motivators of the emerging global economy (Sheldon, 2003). Tourism
being an intangible product, has gained a lot from the applications of
Information Technology. The Intangibility associated with a tourism product
involves the cost incurred, time of travel, dissatisfied customer etc. IT
can be used to reduce this intangibility by ensuring that a potential
customer is not lost due to lack of communication or transfer of vital
information. (Poon, 1993) is of the opinion that a whole system of
Information Technologies is being rapidly diffused throughout the tourism
industry and no player will escape from the Information Technology impact.
The influence of Information Technology in Tourism, similar to that
that in the modern business scenario is tremendous and a diverse range of
information systems are being extensively used in it (Buhalis, 1996).
Figure 1 (Source: Information Technology for Travel and Tourism, Gary
Inkpen)
Figure 1 shown above depicts the structure of IT in Travel and
Tourism. The biggest advantage of using an information system is that it
can provide the most cost effective resource for an organization (Jaiswal &
Mittal, 2004). Information system is also a kind of system where input is
data. The input will be collected from external as well as internal
sources. A process that involves different activities will transform this
data into the form of information as required by the user. (Jain, 2001).
For a management information system the user is basically a manager at
different level. (Bentley & Dittman, 2002). The main purpose of information
for a manager is to aid in decision making. Information systems are
integral part of organizations. Managers cannot ignore information systems
since they play a crucial role in contemporary organizations (Hount &
Carter, 1995). Organisations are trying to become more competitive and
efficient by transferring themselves into digital firms where nearly all
core business processes and relationships with customers, suppliers and
employees are digitally enabled (Garces et al, 2004). There are six major
types of systems in contemporary organizations (Laudon & Laudon, 2004).
Transaction processing system (TPS) is fundamental of all these systems.
Artificial Intelligence (AI) is an area of great importance in modern day
systems. AI includes a variety of systems, in which computer systems mimic
human intelligence (Turban et al, 2002). Virtual Reality and Recommender
systems use AI to a large extent. The user in VR systems are fully immersed
in an artificial, three dimensional world that is generated by a computer.
Tourism is an information intensive industry which generates large
quantity of information to be processed and communicated (Vich-i-Martonell,
2002). Relevance, role and influence of information systems in tourism
sector are very high especially in planning, policy making, management and
operations (Buhalis & O'Connor, 2005). Airlines were among the first
companies to create world wide electronic networks, not only for selling
and distribution, but also for internal management and operations
management (Tahayori & Moharrer, 2005). With information technology and
technology enabled services and amenities becoming more pervasive,
customers and employees expect these conveniences in hotels as well
(Minghetti, 2003). Specifically hotels will need to consider IT services
which meet and exceed guest expectations at all hotel/guest interfaces,
such as public areas and in room, food and beverage outlets (Parakevas &
Buhalis, 2002). Most travel agencies around the world operate some kind of
a reservation systems, mainly through videotext networks or GDSs (Buhalis,
2003). GDS terminals provide travel agencies with access to a wealth of
information about scheduled airlines, hotel chains, car rentals and variety
of ancillary services. The emergence of Internet, extranets and intranets
has introduced a wide range of opportunities for tour operators.
Study
The various areas of application of IT in Tourism sector can be broadly
classified into the following categories
Global Distribution Systems (GDS)
Electronic Ticketing (e-ticketing)
Property Management Systems (PMS)
Point of Sale Systems (POS)
Virtual Reality Systems (VRS)
Travel Recommender Systems (TRS)
Geographic Information Systems (GIS)
World Tourism Organisation (WTO) has predicted that by 2020,
International Tourist arrivals to Asia and pacific region would increase
considerably. As the world is being ushered into the information age,
adoption of Information and Communication Technology is rapidly increasing.
In Kerala, Global Distribution Systems (GDS) are largely used by
travel agencies and Airlines. Also electronic ticketing is an area which
has replaced paper tickets. Web based booking are being widely used by
travel/tour agencies and customers. Here a GDS works as a backend. Property
Management Systems are used for booking hotel rooms and to manage the
operations on a day to day basis. Also it helps top and middle level
mangers in taking decisions. Point of sale systems are also being used in
fast food chains and hotels. Virtual Reality Systems are used in theme
parks and for entertainment. This provides value addition to destinations
as proved in countries like Singapore and US. Virtual Reality Systems are
used to a limited extent for entertainment in Kerala. Travel Recommender
Systems are still in its infancy in Kerala, but can provide revenue if
proper planning is done. Countries like Austria have used TRSs for
providing assistance to the traveler in arriving at a proper itinerary and
to take appropriate decisions. Geographic Information Systems are being
used world-wide in different areas. Tourism in many countries has received
a boost by its application. In the Kerala context, though not much has been
done in this area, spade work is in progress. A GIS based solution was
planned earlier by Kerala tourism but did not take off. A GIS based
interface with the underlying databases will provide an ideal platform for
interlinking destinations and to extract information.
Results of Survey on type of CRS/GDS used by Travel Agencies
"GDS used "Abacus "Galileo "Sabre "Amadeus "Others "
"No. of "18 "27 "10 "22 "5 "
"Agencies " " " " " "
Table 1
Source: Telephonic Interview
Total number of travel agencies surveyed was 35. Out of these 32
possess CRS/GDS terminals. Out of the 32 agencies, 18 centres (56%) have
Abacus. 27 centres
(84%) have Galelio, 10 (31%) have Sabre and 22 (68%) have Amadeus. 5
agencies have systems such as Sitar. This table shows that Galileo is the
system which is used more by the agencies. Amadeus and Abacus follow.
Abacus is a version of Sabre and is capturing the market at a fast rate.
Results of Survey on used of Information Systems by Tour Operators
"Category"Decis"CRM "CRS "FOM "MIS "Accou"Tour "
"of "ion "Syste" "Syste" "nting"Plann"
"Informat"Suppo"ms " "ms " "Syste"ing "
"ion "rt " " " " "ms "Syste"
"Systems "Syste" " " " " "ms "
" "ms " " " " " " "
"No. of "2 "2 "14 "6 "5 "20 "8 "
"Tour " " " " " " " "
"Operator" " " " " " " "
"s using " " " " " " " "
"the " " " " " " " "
"Systems " " " " " " " "
Table 2
The survey was conducted based on 7 Systems. Out of the 25 Tour
operators who were surveyed 20 used Accounting Systems, 14 used customized
CRS, 8 used Tour planning Systems, 6 used FOM systems, 5 used MIS, 2 used
DSS and 2 used CRM systems.
The study reveals that travel agencies in Kerala uses, systems such as
accounting information systems, CRS/GDS, FOM systems and MIS. 80% of the
agencies used accounting information systems. 92% used CRS/GDS terminals
extensively.
In tour operation companies, accounting information systems, front
office systems, CRS/GDS, Internal CRS, Tour planning software CRM, agency
management system, MIS and supply chain management systems were used.
KTDC uses these systems extensively, but Department of Tourism and
agencies under it are yet implement these systems. Kerala Tourism banks
mainly in its website www.keralatourism.org for marketing. KITTS, the HR
division of Department of Tourism, imparts education in Office automation
systems and GDS as part of various tourism courses conducted by it.
Information Systems in Hospitality
Many Information Systems are used worldwide in Hospitality sector. In
order to identify the type of information systems used by hospitality
sector in Kerala, different types of Information Systems used in the
International hospitality scenario were chosen for the study. Later based
on these systems interviews and questionnaire methods were used for the
study. The Information Systems used in the international arena are mainly.
Accounting Systems (back office)
Front Office Systems
Property Management Systems
Self service Kiosks
CRS
Call accounting systems
Electronic locking systems
Energy management systems
Self check in machines
Credit card readers
Point of sale systems
Voice messaging systems
Restaurant management systems
Marketing information systems
Decision support systems
It was found that in hospitality sector these systems were mainly used
in star hotels. Based on the responses, the findings are as follows:
Credit card readers are used by almost all hotels which are
catergorised
PMS are mainly used in five star hotels and to some extent in four
star and three star hotels
Front office systems are used in categories starting from three star
CRS are used only in four star and five star classified hotels
Electronic locking systems are used predominantly by five star hotels
Accounting systems are used in all categories
No hotel was found using self service kiosks.
Call accounting systems were mainly used by hotels in three star
classification
Energy management systems are used in five star hotels only
Point of sale systems are used predominantly in four and five star
hotels and to some extent in three star categories
Voice messaging systems are used extensively by five star hotels
Restaurant management systems are present in three star and upwards
MIS is used in five star hotels only
The study revealed that the main usage of information systems in
hotel sector in Kerala is limited to accounting and credit card readers.
Only 50% of the surveyed hotels used computer based information systems. Of
the Five star hotels surveyed, about 75% used various information systems
stated above. In the four star category only 35% used Information systems.
In three star hotels only 31% used these systems. The study showed that
except for credit card readers, no Information systems were used by two
star hotels.
Finding and suggestions
Among the GDS, Galileo was the most used in travel agencies followed
by Amadeus, Abacus and Sabre. Abacus was found to be emerging as a popular
GDS in Kerala. Among Tour operators, accounting system was the most
commonly used application. This was followed by internal CRS, Transaction
processing system, Front office management System and Management
Information System. Decision support systems and Customer Relationship
management systems were the least used among Tour operators.
The main systems which were used by five star hotels were Property
Management Systems, CRS, Electronic locking systems, Energy management
systems, Point of sale systems, Voice messaging systems and MIS. In the
four star category CRS and Point of sale systems were used extensively.
Front office system and call accounting system were the common application
in three star hotels along with restaurant management system. RMS was used
in categories starting from three to five star classifications.
In the Government sector KTDC has used some of the systems. Kerala
tourism is heavily dependent on its web site for its publicity and
marketing.
The use of information systems in Kerala tourism is below par. There
is a urgent need to develop information system with focus at destinations.
Comprehensive Tourism Information System (CTIS) which will imbibe
suggestions from a group of experts comprising, industry professional,
Academicians and IT experts has to be developed. Tourist information
centres spread out all over Kerala needs to be strengthened. This can be
done by linking these centres though CTIS. Public-private sector
participation is main reason behind the success story of tourism in Kerala.
This synergy can be used to implement CTIS. Also kiosks can be introduced
at various destinations with private public sector participation based on
computer networks. Hotels, Tour operators, Travel agencies and Governmental
organizations can utilise this network based on CTIS.
Kerala Tourism should take the lead role in training personnel in
both government and private sector and also at the grass root level. To
implement the suggestions in this study all the stake holders and
department under the state Government have to be involved.
Conclusion
On the whole it can be said that Information technology has left an
indelible mark in Tourism. In the coming years areas like Travel
Recommender Systems and GIS will gain popularity and will help in giving a
new dimension to the tourism sector. Kerala Tourism is rightly positioned
to reap the benefits of IT. Being a super brand and a much sought after
destination, it is the right time for Kerala Tourism to consolidate its
position through IT applications. It is time to go beyond being the owner
of a leading website alone to a position of a leader through use of
technology in Tourism and hospitality. Infrastructure development alone is
not enough. Maintaining destinations and keeping track of issues needs
immense data. Right now the mechanisms used is not sufficient. To rise to
the level of international standards in Tourism management, state of the
art systems must be in place. With its immense diversity and richness in
natural resources Kerala is truly 'God's own country'. A destination such
as Singapore which doesn't have Kerala's variety and richness in natural
resources have an enviable record in Tourist arrivals and revenue thanks
largely to the use of IT judiciously. There is not doubt that by using IT
in all possible areas, Tourism in Kerala will achieve greater heights. With
responsible tourism being the area which is focused, strategic use of IT
through proper planning will give tourism in Kerala a further boost.
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