Dimitrios BUHALIS - Information Technology for strategic tourism management

20.Nis.2023 Travel e22 1

Dimitrios BUHALIS - Information Technology for strategic tourism management

TourismTourism E-DestinationsE-Destinations

• Destinations are the reasons of travel. They Destinations are the reasons of travel. They satisfy the need for travelling. And it is the satisfy the need for travelling. And it is the attractions at the destination that generate attractions at the destination that generate motivation to visit.motivation to visit.

• Istanbul as a destination, for example brings together Istanbul as a destination, for example brings together a number of tangible elements & attractions a number of tangible elements & attractions (museums, mosques, bazaars, etc.) and intangible (museums, mosques, bazaars, etc.) and intangible aspects (ambience, mixed cultures, art, atmosphere, aspects (ambience, mixed cultures, art, atmosphere, diversity, etc.) as well as facilities & services for diversity, etc.) as well as facilities & services for tourists and locals (hotels, restaurants, clubs, metro, tourists and locals (hotels, restaurants, clubs, metro, taxis, etc.). All these aspects together develop taxis, etc.). All these aspects together develop the the destination image destination image and product.and product.• Traditionally, it planning, management and marketing of destinations are undertaken by public sector national or regional.



E-DestinationsE-Destinations • Today, destinations increasingly attract tourists Today, destinations increasingly attract tourists

from distant long-haul markets. Thus, the need from distant long-haul markets. Thus, the need to use information technology effectively and to use information technology effectively and globally will continue to increase, as travellers globally will continue to increase, as travellers require more & more information.require more & more information.

• Therefore, a combination of both Therefore, a combination of both ICTsICTs and and destination demand-drivers make up the destination demand-drivers make up the Destination Management Systems (Destination Management Systems (DMSsDMSs). ).

• Today it is evident that destinations that provide Today it is evident that destinations that provide timely, appropriate, and accurate information to timely, appropriate, and accurate information to customers and all travel trade have better chances customers and all travel trade have better chances of being selected. of being selected.

• The ability of destinations to The ability of destinations to satisfy the satisfy the information & reservation needsinformation & reservation needs, by providing , by providing appropriate and accurate information online will be critical for their future.will be critical for their future.


Type of destinationType of destination Customers & ActivitiesCustomers & Activities Urban Business-MICE

(Meetings-Incentives-Conferences-Exhibitions-Education-Religion-Health)

Leisure (Sightseeing-shopping-shows-short breaks)

Seaside Business-MICE (Meetings-Incentives-Conferences-Exhibitions) Leisure (Sun-sand-sea-sex-sports)

Alpine Business-MICE (Meetings-Incentives-Conferences-Exhibitions) Leisure (Ski-Mountain sports-health)

Rural Business-MICE (Meetings-Incentives-Conferences-Exhibitions) Leisure (Relaxation-Agriculture-outdoor activities-sports)

Authentic third world Business-MICE (explore business opportunities-incentives-touristic visit) Leisure (Outdoor-adventure-authentic-charities-special interest)

Unique Exotic Business-MICE (Meetings-Incentives) Leisure (Special occasion-honeymoon-anniversary)



• Understanding the type of destination will Understanding the type of destination will support developing right ICTs, as destinations support developing right ICTs, as destinations may require different ICTs.may require different ICTs.

E-DestinationsE-Destinations

• Developing a destination technology is difficult Developing a destination technology is difficult task, as visitors use destinations for various task, as visitors use destinations for various purposes.purposes.



Strategic & tactical role of ICTs for Strategic & tactical role of ICTs for DestinationsDestinations

• DMSs provide new tools for destination DMSs provide new tools for destination marketing & promotion, they use ICTs to marketing & promotion, they use ICTs to provide information and to support reservation provide information and to support reservation functions for destinations.functions for destinations.• DMSDMS (Destination Management System) is a (Destination Management System) is a collection of computerized information collection of computerized information interactively accessible about a interactively accessible about a destination.destination.

• Majority of DMS developments have been led Majority of DMS developments have been led by by public tourist organizations public tourist organizations as well as as well as regional and local bodies traditionally involved regional and local bodies traditionally involved in information provision and marketing. in information provision and marketing. National Tourism Organizations, Tourist National Tourism Organizations, Tourist Information Centers, etc.Information Centers, etc.



DMSsDMSs

• DMSs emerge as a major promotion, distribution DMSs emerge as a major promotion, distribution and operational tool for both destinations and and operational tool for both destinations and travel traders. travel traders.

• Using ICTs, destinations take advantage of Using ICTs, destinations take advantage of database marketing techniquesdatabase marketing techniques to identify to identify and target important market niches, by and target important market niches, by providing market-driven products for particular providing market-driven products for particular customers.customers.

• By enabling users to search & select individual By enabling users to search & select individual tourism products, tourism products, DMSs can support DMSs can support travellerstravellers to create their personalized to create their personalized destination experience.destination experience.• In most destination websites DMSs are used to In most destination websites DMSs are used to integrate the entire supply of destinationintegrate the entire supply of destination. . Their Their contribution is demonstrated by their ability to contribution is demonstrated by their ability to integrate all stakeholders at destination.integrate all stakeholders at destination.

• Role of DMSsRole of DMSs



Tour Tour OperatorOperator

ss

OutboundOutboundTravel Travel

AgenciesAgencies •D

MS

s D

MO

sD

MS

s D

MO

s

InboundInboundTravel Travel

AgencieAgenciess

ConsumeConsumersrs

DestinationsDestinations



Services & Features for DMS SystemsServices & Features for DMS Systems• Information search by geography, category, Information search by geography, category,

keyword keyword • Itinerary planning for customerItinerary planning for customer• Online reservations Online reservations • Customer databases & CRM functions Customer databases & CRM functions • Market Research & Analysis Market Research & Analysis • Image library & PR materials Image library & PR materials • Publishing to electronic channels Publishing to electronic channels • Event planning & management Event planning & management • Data editing & Marketing optimizationData editing & Marketing optimization

• Access to 3rd party resources; i.e.: weather, Access to 3rd party resources; i.e.: weather, transport time tables, theater & event tickets, etc.transport time tables, theater & event tickets, etc.

http://www.newasia-singapore.com/

http://www.australia.com/



Developing DMSsDeveloping DMSs

• According to According to WTOWTO, “each and every , “each and every destination in the world will somehow develop destination in the world will somehow develop its its Internet PresenceInternet Presence and will undertake and will undertake some some eMarketingeMarketing.”.”This may vary from sophisticated integrated This may vary from sophisticated integrated systems to stand-alone websites.systems to stand-alone websites.

• There are currently a number of DMSs There are currently a number of DMSs available in the market, including software available in the market, including software solutionssolutions

• Destination Management Organizations will Destination Management Organizations will need to decide whether they wish to purchase need to decide whether they wish to purchase software off the shelf and add their own software off the shelf and add their own content, or whether they would prefer to build content, or whether they would prefer to build their own website from scratch. their own website from scratch.



Step by step guide to DMSsStep by step guide to DMSs– Develop a Develop a strategic overviewstrategic overview, brand, look and feel , brand, look and feel

of destinationof destination– Make your Make your eTourism Destination StrategyeTourism Destination Strategy– Get ICT support as well as DMS experts’ advicesGet ICT support as well as DMS experts’ advices

– Consult with all Consult with all stakeholdersstakeholders; tour operators, ; tour operators, transportation services, museums, etc.transportation services, museums, etc.

– Determine Determine functional specificationsfunctional specifications of the website of the website– Establish Establish technical specstechnical specs; analysis of requirements; analysis of requirements– Request partners to work and/or Request partners to work and/or sponsorsponsor support support

(create a (create a Public-Private Sector-PartnershipPublic-Private Sector-Partnership))– Select software developers, system suppliersSelect software developers, system suppliers– Organize & outsource data collection, and Organize & outsource data collection, and Content Content

Management Management toolstools– Build & testBuild & test the DMSs and website. Implement. the DMSs and website. Implement.– Provide Provide analysis for usersanalysis for users; develop feedback tools; develop feedback tools– MonitorMonitor & evaluate & evaluate constantlyconstantly



WTOs Guide to design a Destination WTOs Guide to design a Destination WebsiteWebsite Domain Name should be Domain Name should be obviousobvious, , easy to remembereasy to remember and and

findfind Allow many stakeholders to Allow many stakeholders to access easilyaccess easily Design must be Design must be attractive attractive and and simple simple as well as as well as easy to easy to

navigate. navigate. AvoidAvoid complex designs. complex designs. Let the user customize; as in “Let the user customize; as in “my pagemy page” concept” concept Provide accurate, uptodate, relevant and properly classified Provide accurate, uptodate, relevant and properly classified

contentcontent Full Full searchibility searchibility on the site needed, as well as on partner on the site needed, as well as on partner

sitessites Links to other sitesLinks to other sites relevant to destination; and relevant to destination; and

agreementsagreements with as many travel portals and service with as many travel portals and service providers as possibleproviders as possible

Facilitate Facilitate online bookings online bookings either directly or through either directly or through partner sitespartner sites

Once it’s up & running, register with Once it’s up & running, register with search enginessearch engines, keep , keep ranking.ranking.

Use all possible Use all possible offline mediaoffline media for promotion as well as for promotion as well as onlineonline

Build a Build a customer databasecustomer database; capture ; capture personalizedpersonalized informationinformation

Use Use onlineonline communutiescommunuties to spread to spread Give them reasons to visit the website back!Give them reasons to visit the website back!



Develop a business model and consult with Develop a business model and consult with stakeholdersstakeholders

Determine the size ; number of attractions, products and Determine the size ; number of attractions, products and facilitiesfacilities

Invite wide consultation with all members of tourism industry Invite wide consultation with all members of tourism industry and ensure support from all levels of decission makingand ensure support from all levels of decission making

Determine levels of financial support available for the projectDetermine levels of financial support available for the project Examine the Examine the distribution channels distribution channels available at the available at the

destinationdestination Decide on the frequency of the updates; availability and cost Decide on the frequency of the updates; availability and cost

of content and potential partnersof content and potential partners Explore partnership opportunities with the organizations that Explore partnership opportunities with the organizations that

can assist in developing various elements of the websitecan assist in developing various elements of the website Forecast the value of transactions and total cost of Forecast the value of transactions and total cost of

establishing and running the websiteestablishing and running the website Develop an long-term cost/benefit analysis; complete Develop an long-term cost/benefit analysis; complete

upgrade of all hardware will be required every 2-3 yearsupgrade of all hardware will be required every 2-3 years



Design the technical factors and aspectsDesign the technical factors and aspects

Need to structure the technical needs to facilitate satisfactory Need to structure the technical needs to facilitate satisfactory results results

Undertake market research to evaluate existing DMSsUndertake market research to evaluate existing DMSs Decide whether you would like to build your own system or Decide whether you would like to build your own system or

purchase or lease existing systemspurchase or lease existing systems Decide whether to host your own web server or buy hosting Decide whether to host your own web server or buy hosting

serviceservice

Bring together technical developers with the content Bring together technical developers with the content providers and user groups; explore the hardware & software providers and user groups; explore the hardware & software strategystrategy

Content team needs to update the site regularlyContent team needs to update the site regularly Get naive users use the site and provide feedback (for pilot Get naive users use the site and provide feedback (for pilot

use)use) According to destination marketing strategy decide how According to destination marketing strategy decide how

many languages the site is going to appearmany languages the site is going to appear



Promoting the websitePromoting the website Once the site is approved and up and running, it should be Once the site is approved and up and running, it should be

registered with all possible search engines and its ranking registered with all possible search engines and its ranking position should be maintainedposition should be maintained

It is critical that both off-line and online marketing assists the It is critical that both off-line and online marketing assists the launch and visibility of the websitelaunch and visibility of the website

Incorporate the URL in all aspects of the brand Incorporate the URL in all aspects of the brand

Build customer database and capture personolized Build customer database and capture personolized informationinformation

Must develop online community to communucate marketing Must develop online community to communucate marketing messages; use competitions, lottery, games, blogs, auctions, messages; use competitions, lottery, games, blogs, auctions, etc.etc.

Give customers reasons to come back to the site Give customers reasons to come back to the site and/or recommend the site to the othersand/or recommend the site to the others


Barriers to succesful DMSsBarriers to succesful DMSs

Lack Lack partnerpartner interest interestLeading by technology, Leading by technology, rather than marketing rather than marketing

strategiesstrategiesLess integratedLess integrated approach than appropriate approach than appropriate InabilitiyInabilitiy to provide total services for to provide total services for supply & supply &

demanddemand Inadequate geographicalInadequate geographical information informationPrematurePremature innovations innovationsLack of Lack of standardizationstandardizationWithdrawal of public sector Withdrawal of public sector fundingfundingProduct orientation, instead of Product orientation, instead of demand demand

orientationorientation!!



the 6-a Framework of DMSsthe 6-a Framework of DMSsAAttractions ttractions (natural, manmade, artificial, heritage, special (natural, manmade, artificial, heritage, special

events)events)

AAccessability ccessability (Entire transport. system incld. routes, (Entire transport. system incld. routes, terminals, terminals,

vehicles) vehicles)

AAmenitiesmenities (hotels, catering facilities, retail & all tourist (hotels, catering facilities, retail & all tourist services)services)

AAvailable packagesvailable packages (pre-arranged packages by tour (pre-arranged packages by tour operators, operators,

ready to book)ready to book)

AActivities ctivities (all kinds of activities; paragliding, rafting, (all kinds of activities; paragliding, rafting, climbing, etc.)climbing, etc.)

AAncillary Servicesncillary Services (banks, telecommunucations, mail, (banks, telecommunucations, mail,

hospitals, hospitals, etc.)etc.)

• Despite its success getting travelers to use Web sites, the travel Despite its success getting travelers to use Web sites, the travel industry consistently disappoints them. industry consistently disappoints them.

• For example, For example, 83 million online leisure travelers don't find 83 million online leisure travelers don't find the Web easy to use to plan and buy their tripsthe Web easy to use to plan and buy their trips, and fewer , and fewer travelers are satisfied using digital channels than those using travelers are satisfied using digital channels than those using human agents. human agents.

• To improve, the industry must To improve, the industry must humanizehumanize the digital travel the digital travel experience — putting human benefits ahead of technology. experience — putting human benefits ahead of technology.

• Humanized digital travel experiences are Humanized digital travel experiences are useful, usable, useful, usable, and desirableand desirable..– They deliver basic value, They deliver basic value, – take content available to all and take content available to all and – make it meaningful to one traveler, and make it meaningful to one traveler, and – tap into travelers' emotions. tap into travelers' emotions.

• Humanized digital travel experiences are created by Humanized digital travel experiences are created by – aligning organizations to be customer-centric, aligning organizations to be customer-centric, – gathering and using relevant customer insight, and gathering and using relevant customer insight, and – adopting an outside-in, emotional perspective versus the adopting an outside-in, emotional perspective versus the

industry's usual inside-out, clinical approachindustry's usual inside-out, clinical approach

Humanize The Digital Travel Experience Humanize The Digital Travel Experience For Better Adoption For Better Adoption & & SatisfactionSatisfaction

Of Web travelers' top five reasons for abandoning Of Web travelers' top five reasons for abandoning booking online, booking online, 3 3 reasons — concern about reasons — concern about – credit card securitycredit card security, , – inability to make specific requests onlineinability to make specific requests online, ,

andand– frustration with site performancefrustration with site performance

1) implementing 1) implementing best-in-class security best-in-class security practicespractices; ;

2) 2) updatingupdating legacy reservations, property legacy reservations, property management, and operations systems to give management, and operations systems to give travelers a travelers a greater level of control onlinegreater level of control online; and ; and

3) conducting 3) conducting usability tests and expert usability tests and expert reviews reviews to audit Web site failures in the booking to audit Web site failures in the booking processprocess

• According to comScore dataAccording to comScore data, 62 million unique visitors , 62 million unique visitors clicked on travel sites in October 2004,clicked on travel sites in October 2004, or roughly or roughly 40 percent of the U.S. online population40 percent of the U.S. online population of 150 million of 150 million usersusers

• According to Jupiter's report, which tracks sales by major direct According to Jupiter's report, which tracks sales by major direct distributors and third parties, robust growth is predicted to distributors and third parties, robust growth is predicted to continue through continue through 20092009, reaching a total of $91 billion, , reaching a total of $91 billion, or 33 or 33 percent of all travel purchasedpercent of all travel purchased..

Some more web travel statsSome more web travel stats

Top Airline Web Sites by Visitors, April 2005 Top Airline Web Sites by Visitors, April 2005 (U.S., (U.S., Homes Homes and Work)and Work)

AirlineAirline Unique Unique AudienceAudience

(000)(000)

Visitor Visitor ConversionConversion

Rate (%)Rate (%)

Southwest Southwest AirlinesAirlines

8,1418,141 1414

American American AirlinesAirlines

5,6635,663 99

Delta Air LinesDelta Air Lines 4,9124,912 1010

Source: Nielsen//NetRatings NetView and MegaView Travel, Source: Nielsen//NetRatings NetView and MegaView Travel, June 2005June 2005

Top Online Travel Agencies by Visitors, April 2005 (U.S., Top Online Travel Agencies by Visitors, April 2005 (U.S., Home and Work)Home and Work)

Travel Agency Unique Audience(000)

Visitor ConversionRate (%)

ExpediaExpedia 16,26016,260 55

Travelocity.comTravelocity.com 11,71411,714 33

OrbitzOrbitz 11,61611,616 44

Source: Nielsen//NetRatings NetView and MegaView Travel, June 2005



www.VisitFinland.comwww.VisitFinland.com



27 yerde ofisleri var, hepsi Finlandiya da27 yerde ofisleri var, hepsi Finlandiya da

15% of world population shares knowledge and attitudes 15% of world population shares knowledge and attitudes about Finland.about Finland.

- amaclari %1 artirmak gelen turist sayisini..- amaclari %1 artirmak gelen turist sayisini..

- PreTravel / During Travel / After Travel- PreTravel / During Travel / After Travel

- "I wish I was in Finland" Facebook page, around - "I wish I was in Finland" Facebook page, around 6000 members!6000 members!

Own booking portal for acommodations and tour packages Own booking portal for acommodations and tour packages (tour operators) and for SMTEs , and travel agencies (tour operators) and for SMTEs , and travel agencies mostly. mostly. (Her otel icin farkli olabiliyor…)(Her otel icin farkli olabiliyor…)

Our Finland - ParticipateOur Finland - Participate



Focus on Key Markets…Focus on Key Markets…

Viral Videos (produced short video clips for marketing)Viral Videos (produced short video clips for marketing)

Media Visibility, ve cooperations with TripAdvisor, etc.Media Visibility, ve cooperations with TripAdvisor, etc.

Video lari YouTube a koymuslar, 6 haftada 500.000 kere Video lari YouTube a koymuslar, 6 haftada 500.000 kere izlenmisler!..izlenmisler!..

Image COmpetition yapmislar, online. Ön tarafta “I wish I Image COmpetition yapmislar, online. Ön tarafta “I wish I was in Finland” tshirt lu adam, arkasinda hangi imaji was in Finland” tshirt lu adam, arkasinda hangi imaji kullanirsan… Yada on tarafa da baksa resim..kullanirsan… Yada on tarafa da baksa resim..

150.000 kisi ziyartci gelmis bu reklam kampanyasina.. 150.000 kisi ziyartci gelmis bu reklam kampanyasina.. 80.000 i unique ziyaretci..80.000 i unique ziyaretci..

Dimitrios BUHALIS - Information Technology for strategic tourism management

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