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 & OConnor, 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
No.
of 18
27
Agencies
Table 1
Source: Telephonic Interview

Sabre
10

Amadeus
22

Others
5

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

14

20

Tour Planning Systems

Accounting Systems

MIS

FOM Systems

CRS

CRM Systems

Decision Support Systems

Category of Information
Systems
No.
of 2
Tour
Operators
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 Gods own country. A destination such as Singapore which doesnt have
Keralas 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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