1.DoesbusinessneedIT?

Nowadays,tourismhasasignificanteconomyimpactonthedevelopmentofglobaleconomy.
Theimpactcanbecountedataninternational,domesticandregionallevel.Itisindicated
basedonthesignificantfiguresdemonstratedintourismintermsofGDP,employmentand
economicdevelopment.
Inthepast,tourismservicesorproductsarehighlydependeduponrepresentationand
descriptions,bydifferentintermediariessuchasinformationinprintedoraudiovisualforms.
Inthatway,thetraveltradeortheagencycanincreasetheirabilitytoattractconsumers.
However,duringthedevelopmentoftheworld,tourismindustryisdeeplychangedbythe
technologicalrevolution.Thetravellersnowaregettingmoreandmorefamiliarwiththe
informationandbookingsystemviaInternet.Thisisinordertoincreasetheirpersonal
efficiencyandtoensuretheirpleasures.
2.WhyITisimportantforbusinesssurvival?
Invarietyofbusiness,InformationTechnology(IT)supportorganizationtocontroland
manageinformationefficiently.Italsoaffectsbusinesscompetivenessbyassistingthe
managerstomakeappropriateoperationorinvestmentdecisions.Inaddition,ITbenefitsthe
customersbyprovidingaccurateinformationandmeetingtheirdemandstimely(Connolly&
Lee,2006;Singh&Kasavana,2005).Anumbersofpreviousstudiesindicatedthatthe
presenceofITsystemassistsmanagerstosupplyappropriatequalityservicetocustomersand
improveoperationalefficiency.Hence,Thisdirectlyinfluencesthecustomersexperiences
andbehaviour(Kim&Ham,2007;Singh,Kim,&Huh,2006;Winata&Mia,2005).
Furthermore,failureinmasteringtherightITsystemcancreatedifficultytomanagethe
businessinformationanddamagetheircompetiveness(Chathoth,2007;Ham,Kim&Jeong,
2005,LawandJogaratnam,2005).Therefore,withthedevelopmentoftheworldaswellas
theincreasingincustomerneeds,thetourismorganizationhasnochoicebuttoincorporate
technology.Buhalis(1998)statedthatIThelpstoincreasethequalityofservicesand
contributetothesatisfactionofcustomerortraveller.Healsomentionedthatcustomer
satisfactionorpleasuredependsmainlyontheaccuracyandfullnessofinformationon
facilities,attractions,activities,accommodationanddestinationsaccessibility.
ThecreationofInternetandWorldWideWeb(www)hadputamarkontherevolution
developmentinITs.AsthereismoreandmoreconsumersrelyontheInternet,ithasbecome
themajorsourceofinformationfortourists.TheyusevarietyInternetsitsforsearching,
planning,bookingtheirtravelservices.Someearlierresearchindicatedthattheadoptionof
InternetorITshashighlyeffectsonthetourismindustry(Anwar,M.A.,Carmody,P.,
Surborg,B.,&Corcoran,A.,2014;Sheldon1998;WTO1999;UNCTAD2001;Gallowayet
al.2004)suchasconsumerbehaviouranddecisionmaking(BeirneandCurry1999),tourist
destinationchannels(Buhalis1999;SchertlerandBergerKoch1999),andlabourmarket
(MilneandAteljevic2001)

3.WhatisrequiredtoapplyITintobusiness?(Cost,Planning,Designing,Equipment,
Installation,Training,etc...)

4.HowdoesbusinessuseIT?(Internallysuchasstaff,employees,andexternallysuchas
customers,suppliers)

MobileTechnology
Withthepresentofmobiletechnologies,thetourismagenciesorsuppliersenabletointeract
withtheircustomersmucheasier.Forexample,businesstravellerscaneasilycollect
informationonarrivalsordeparturesortheycancheckinthroughtheirmobilephonefora
certainnumberofairlinessuchasBritishAirways,SwissairandSingaporeairlines.
Moreover,withthedevelopmentofmobilephonescombiningGPRS,4Gorwireless
technologies,theconsumerswillbeabletoaccessandcustomizedtheirtravelinformation
suchastravelschedulesorbookingfacilitiesatanytimeandanyplace.Gradually,itwilllead
tothedevelopmentofmCommerceandmServices.
Morerecently,mobiletechnologiesthatprovideanewandconvenientwayfortouriststo
gatherinformationfromanylocation,andperhapsmoresignificantlyatthedestination,have
beenintroduced.Mobiletechnologiessupportlocationbasedservices,interpretationatthe
destinationanddynamicinteractionwithtourismsuppliers(Buhalis&Law,2008).Rasinger,
Fuchs,andHopken(2007)analyzedtouristsusageintentionswithmobileguides.

Theconventionaltelephoneisalsoconsideredastheeffectiveinteractioninstrumentofthe
tourismsuppliers.Buhalis&Law,2008indicatedthatalthoughtheconsumerscandoonline
bookingorsearchingfortheinformationbythemselves,manyofthemstillfeelbetteroffto
confirmtheirbookingormakeinquiriesbygivingacalltothecallcentreandhavingdirect
talktoacertainoperator.Inentertainmentmarket,thetelephoneisoneofthemostessential
methodstomakebookings.Itisbecauseformanybusinesses,onlineInternetestablishment
isstillnotsuitablydevelopedyetandnotmanyconsumersaretechnologicallyopenminded
toacceptthebuyingtransactiononline.Infact,lotsoftourismadvertisedtheirproducts
throughdifferentchannelssuchasTV,magazineorInternet;theystillusuallyrequiretheir
customerstomakebookingbytelephone,andthistrendwillcontinue(Buhalis&Law,
2008).
InternetTechnologies
TheInternetalsoenabledconsumerstocontractdirectlytosuppliers,interactwith
destinationsorcustomisetheirproduct.Recently,thereisagreatchangeinthenumberof
touristswhomakereservationsorbookingsdirectlyfromhotelwebsites(Jeong,Oh,&

Gregoire,2003).ThosetourisimcustomerssearchontheInternetfortheirbestbenefitssuch
asthelowestroomratesorbetterfacilities(Law,Chan,&Goh,2007).Especially,Search
functionsuchasGoogleplaysanimportantroleinfindingnecessaryinformationinthe
Internet(Ho&Liu,2005,Law&Huang,2006).TheSearchfunctionassiststheusertofind,
analyseandcomparetheinformationformdifferentwebsitessources(Pan,Litvin,&
ODonnell,2007;Pan&Fesenmaier,2006).
Furthermore,ITcanalsoassistininvestigatingandexaminingthetouristhabitsmovement
andinmarketingresearch.AresearchfromLauandMcKercher(2006)showedhowtheyhad
usedGeographicInformationSystems(GIS)tooutlinethetouristsmovementwithina
destination.Thistechniquecanbenefittourismmarketerstogainbetterunderstandingson
consumerbehaviourwhileataspecificdestination.Fromthen,themarketerscandevelop
strategiesforcreatingandenhancingtourismexperiences.Forexample,onestudyhadshown
thatwhilemostofthetouristscanfindandlocatetravelinformationontheInternet,only3%
ofthesurveyedcametotherestaurantwhichhadfoundontheInternet(Litvin,Blose,&
Laird,2005).
Nowadays,moreandmorecustomersprefertopurchasetourismproductthroughwebsites.It
isperceivedthatwebsitesimageandusabilitydirectlyaffectscustomersbuyingintentions
(Chiang&Jang,2006;Law&Cheung,2006b;Law&Hsu,2006).Therefore,itisrequired
eachtravelorganizationortourismbusinesshaveconsideration,investigationand
understandingofcustomerperceptiontodevelopasuccessfulwebsite(Benckendorff,2006;
Davidson&Yu,2005;Law&Ngai,2005).Forexample,aresearchofLu&Feng(2006)
foundthatwhenpurchasinghotelservicesandproducts,frontdesk,housekeepingservices
androomsizesarethemostimportantfactorsimpacttoChinesetouristsperceptionofhotel
standards.
Moreover,Chinesetouristsarelesslikelytorelyonhotelnamingwhenmakingonline
reservations.Instead,theyaremorefocusingonelectronicinformationandonlinesecurity
whenusingInternet(Kim,Ma,&Kim,2006).Ontheotherhand,somebusinesstravellers
normallylookforcomprehensiveITservicesandtheyarewillingtopayforthosecertain
servicesinthehotel.ItisbecausetheyexpectthosekindsofITservicesorITapplications
mustmeettheirneeds((Yeh,Leong,Blecher,&Hu,2005).Furthermore,theyunderstand
thattoestablishingandimplementingsuchtechnology,thehotelshavetospendhighcosts
(Yeh,Leong,Blecher,&Lai,2005).Oncethetourismorganizationsorsuppliersunderstand
differenttouristsonlinebehaviour,theycouldincreasethepossibilityofcompletingonline
transaction(Lee,Qu,&Kim,2007;Lexhagen,2005).AccordingtoWolfe,Hsu,andKangs
(2004)research,consumersaretendingnottopurchasetravelproductsonlineasthereislack
ofpersonalservice,securityissues,insufficientexperience,andtimeconsuming.The
consumersaremorelikelytopurchaseonlinetravelproductswithbusinessesthathavebeen
onlinefor4yearsormoreandhavepositivefeedbackofpasttransactions(Bai,Hu,Elsworth,
&Countryman,2004;Bieger,Beritelli,Weinert,&Wittmer,2005;Li&Buhalis,2005).
SincethedatanowistransmittedmuchfasterthanbeforeviaInternet,itisexpectedthatthe
responsetimefrombusinessestoclientshasbeengreatlyreduced.Particularly,theresponse
oftourismbusinessestoonlineinquiriescanaffectcustomerpleasuresandbooking
behaviour.Asaresult,postpurchasebehaviourturnouttobeanimportantelementforthe

successoftourismenterprises(Main,2001;Pechlaner,Rienzner,Matzler,&Osti,2002).In
addition,positivefeedbackonlinehasastrongimpactonloyaltybothtotheorganisational
programmesandtheirwebsite(Anderson&Srinivansan,2003).
Aftertravelershavereturnedhome,theyoftenwanttosharetheirfeelingsandexchangetheir
travelexperiencebysharingtraveldiaries,photos,etc.(Berger,Dittenbach,Denk,Merkl,&
Pesenhofer,2007;Pudliner,2007;Thevenot,2007).However,toomuchinformationfrom
differentdatasourcessuchasblogs,onlinetravelmagazines,travelwebsites,orreview
sitesoftencauseconfusedanduncooperative,becausethecontentmaydifferentfromvary
sourcesandtargetdifferentviewers(Choi,Lehto,&Morrison,2007).

5.WhatbenefitsandadvantagesdoesITbringtobusiness?(Revenue,Flexibility,reduce
cost,etc...)
WiththedevelopmentofITs,theorganizationcouldimprovetheirmanagementindifferent
roles.Connolly,OlsenandMoore(1998)indicatedthattheestablishmentofITsin
organizationmanagementcouldeliminaterepetitivetasks,reducelabourcostandincrease
efficiency(Buhalis,1998;Paraskevas&Buhalis,2002).Inaddition,ITsortheInternetis
varyingthetourismindustrybyreformingdistributionnetworks,assistingpricetransparency
andcompetitionandincreasingoperationefficiency(Kim,Nam,&Stimpert,2004).Inthe
past,intermediariessuchastravelagentsortouroperatorsaretheonlyoptionfortourism
supplierstodistributetheirproductsorservices.Meanwhile,bothintermediariesand
consumersaredependedoninclusive,accurate,andtimelyinformationtoassistintheirtravel
(Karcher,1997;OConnor,2003;Sheldon,1997;Poon,1993).TheWebenabledtourism
organisationstodelivertheirproductsnotonlythroughdirectdistributionbutalsothrough
variedrangeofchannels(OConnor&Frew,2002).
Bythehugesourceofinformation,InternetorITssupportedorganisationstoimprovetheir
knowledgebasetodeveloptheirmanagementandmarketingfunctions(Fesenmaier,Leppers,
&OLeary,1999;Schertler&BergerKoch,1999).SincetheWebandtheInternetisusedas
marketingtools,tourismortravelbusinessesalsogainedsomeadvantagesinrevenuegrowth,
costreduction,marketingandinvestingresearch,databaseimprovement,andcustomer
retention(Morrison,Taylor,Morrison,&Morrison,1999;Buhalis,1998,2003).TheInternet
hasalsosupportedtourismorganisationstouseavarietyofpromotionalactivitiesasthe
Internetisgenerallyconsideredasamultipromotiontoolanddistributionchannel(Gretzel,
Yuan,&Fesenmaier,2000;OConnor&Frew,2004).Therefore,Webmarketingis
becomingmainstream(Buhalis,2003;Fesenmaier,Gretzel,Hwang,&Wang,2003).Via
Internet,thetourismorganizationsareabilitytoaddressanddevelopmarketing
recommendationtodifferenttargetmarketandensuretheneedsofeachmarketaremet.
TheInternetorITshasalsoimprovedthesuppliersbargainingpower.Withthelatest
information,itallowsthetravelorganizationtoofferpersonalisedanddistinguishedproducts,
hence,monitortheircompetitiveness.Bypermitsorganizationtoadjusttothechangein

customerdemands,theorganizationorsupplierscouldachievesignificantcostsaving.
Therefore,suppliersortravelbusinesscouldmaintaintheircompetitivenessduetothebetter
possibilityofinterconnectivityandinteractivitywithconsumerandcompanionsviaITs
(Dhaigude,A.S.,Kapoor,R.,&Ambekar,S.,2016).
Fromcustomerperspective,theITsaffectedthebargainingpowerofbuyers.Thebuyers
bargainingpowerisimpactedbytheaccuracyandinstantapproachtoinformation,the
understandingsofmarketoffers.Theyhavemoreoptionandareabletomakecomparisonsto
satisfytheirexpectationsanddemands.Therefore,theymayuseInternettechnologiesto
buildingcloseandproprietaryrelationshipswithsuppliersinordertogetanypromotionsor
benefits(Porter,2001).Thebargainingpowerofbuyerisalsorelatedtotheincreasein
convenience,flexibility,transparency,interactionwithsuppliers,andclearnessofthe
availableinformation.TheInternetalsoallowedbuyerstoselecttheirindividualisedproducts
bymergingdifferenttravelproductsintotheirpackage(i.e.accommodation,transportation,
activities,etc.)(Daniele&Frew,2005).Approachtoavarietyofavailablesuppliersalso
increasedbuyerbargainingpower.
Fromanothercustomers'pointsofview,theycansatisfythemselvesbysittingathomeorin
theofficeandbrowsingtheinformationcomfortablywithoutbeingpressuredorhavingto
waithoursinthetravelagencyoffice(Hope,HopeandTavridou1996).Withinafew
minutes,theycaneasilymakebookings,makepaymentbycreditcardsandgetticketsfrom
theirownprinter.Thewholeholidayandtraveltransactionhasbecomemuchmoresimple
andconvenient.
Customersalsogetbenefitsbyknowinginadvancethedestinationfacilities,activities,
attractionsandevents.ViatheInternet,thesuppliersareabletoprovidefullimageofvirtual
catalogues,offeronlinesupport,announceandallocatecertainproductseasily,provide
customeropportunitytoleavetheirfeedback(Berthon1996).Suchcommunicationisvery
importantasitcangivecustomersaclearimpressionandunderstandingofwhattheywant
andarelikelytoexperience.Itcanhelpmaintainingcustomersatisfaction,settingthe
product/service,adjustingandbalancingthehighimportanceofprice.
AccordingtoastudyfromSchertler(19949ITpotentiallyreducesthecostintransaction
communicationasitallowedsupplierstocommunicatedirectlytoexistingandpotential
customerswithavailableandinexpensiveinformation.Fromthen,thesupplierscan
differentiatetheirproductsbystudyingcustomers'needsandwants.Theremaybenoneedto
payforexpensiveinternationaltourismfairs,openinternationalofficesorcreateexpensive
hardcopyadvertisingmaterialsastheyallcouldbedoneviaInternet.ITcouldalsobea
powerfultooltoovercomepaperworkasallthetransactionscouldbedoneonlineorvia
Internetbankingwhichreducedpaperandpapercashturnover(Montgomery1995,Sheeland
Lefever1996,Cantoni,L.,&Zheng.,2013;2015;)
Itisalsobelievedthatthetourismindustrycouldprovidebetterservicequalitywhen
applyingITsintotheirmanagement.AstheuseofITindecreasingworkinghoursspenton
backofficeactivities,employeeswillhavemoretimetoprovidebetterservicetocustomers
(Schertler1994).AstudyofDavid,GrabskiandKasavana(1996)examinedtherelationship

oftechnologyandproductivityinthehotelindustry;theirresultindicatedthatITdidhavea
positiveimpactonproductivityandqualityofbusinessoperationsandperformance.
6.WhattypeofriskdoesITbringtobusiness?(Security,Privacy,Confidentiality)
Nowadays,mostofthebusinessareusingepaymentfortheirtransactionviaInternetor
online.Thepurchaseprocessisonlycompletedoncemoneyistransferred.Inthestudyof
KimandLeong(2005)andMiller(2006),theyindicatedthattheriskfromInternet
transactionorebusinessisdirectlylinkedtocustomerspurchaseintention.Thetourism
industrynowreliesmoreonIT,therefore,increasingtheriskfromcustomerspayment
intentionandtheconcernamongconsumersprivacy(Brown,Muchira,&Gottlieb,2007).To
securetheonlinepayment,travelbusinessesshouldprovidesafeandprotectedtransactionsto
ensureconsumersdataisusedforrightandappropriatepurposes(Wu&Chang,2006).
However,inanotherstudyofCanadiantourismindustry,onlyafewwebsitesofsmall
hospitalityandtourismbusinessesusedsecureserverstomanageonlinebookings(Hudson&
Gilbert,2006).Sincethen,whenapplyingandusingITintothebusiness,theorganization
hastoensurewhethertheguestsinformationissecurefortherightpurposesorwhetherthe
customersarewillinglytosacrificeprivacyforbettercustomerservice.

SinethetourismindustrygraduallyhasheavilydependencyonITs,thefailureformIT
systemcancauseseriousconsequencestothebusiness(Lu&Law,2007).Understanding
knowledgebasedsystemscansupportmanagertodealwithsuchdifficultiesmoreeffectively
(Mistilis&Sheldon,2006).Vovo(20007)alsoshowedthattheuseofWebsiteorInternetas
acrisiscommunicationchannelcouldhelptopreventthespreadofdiseasesordisaster,and
supportthestakeholderstoshareinformationduringthecrisestime.Theriskalsoregardsthe
managementofcustomerinformation.Forexample,inmostofhotels,theloyaltyprogram
andpromotionalcampaignsrequiredthecustomerstoregisterandprovidetheirinformation
onlinethroughspecificwebsites.However,onlyafewcompaniesobtainthirdpartyprivacy
certificatestosecureguestsdataforappropriateuse(OConnor2007).
Inadditiontopayment,anotherelementinhotelrisksistheTermsandConditions.Itisstated
thatmanyreservationtransactionscanbedonewithoutcustomershavingtoexpresstheir
acceptanceofthecompanystermsandconditions(Wilson,2007).HotelITmanagersshould
notonlypayattentiontoexternalsecurity(theInternet),butshouldalsohaveagoodcontrol
withtheirinternalnetworksecuritysuchasvirusattackmatter(CobanogluandDeMicco,
2007).
AscustomersaregettingusedtowiththeInternet,travelagentsneedtoconsiderandmodify
theirfunctionsastravelconsultants(Sheldon1994).Sincethen,theyhavetodeterminewhat
valueshouldbeaddedtotheirservicesandbusinessperformance.Oncecustomersbecome

morefamiliarintheiruseofIT,thetourismortravelcompaniesmayhavemoredifficultyin
carryinganddistributingaddedvalue.
7.HowcanbusinessmaintainandmonitorIT?

FindingthefinancialresourcestomakethenecessarycapitalinvestmentinITcanbea
problem,particularlyforsmallsizedbusinessenterprises(Mutch1995a).Technological
ignorancemayalsobeabarrierformanysuchbusinesses.

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