The technological era of the 1990s was known as “the network era” which can be defined as the intra- and inter-organizational networking generated by local and wide area networks. The development of the Internet, Intranets and extranets evolved as the most efficient means of communicating and as a primary business necessity. The 1990s also marked an era changing the competitiveness of companies on a global level. The location and size in the product delivery process was reduced significantly because of the IT tools available.
Today technology is providing tools for management and marketing that enhance the capabilities of organizations. Computers are now faster and more reliable allowing for quicker results at a lower cost. Marketing managers have been taking advantage of data warehousing via IT, which has allowed them to target specific market segments and develop competitive marketing strategies. Perhaps networking is one of the most significant parts of the Information Technology era. The Internet, Intranets and Extranets have enabled employees, units, organizations, external partners and customers to share an endless amount of information. This has allowed for significant cost savings due to the sharing of information on a worldwide basis. Further, IT has facilitated in the relationship building process due to the vast amount of information that can be transferred through the Internet in a matter of no time.
Software, hardware, information management, and telecommunications systems have allowed for the processing and flow of information among organizations in the travel industry. Many sources claim that the way in which tourism organizations take advantage of IT tools will determine their future success in the marketplace. The tourism industry and the World Tourism Organization (WTO) must consider the importance of the IT trend by implementing an effective IT system for marketing, distribution, promotion and co-ordination of the industry as a whole. It is crucial that tourism enterprises take advantage of the emerging technologies in order to improve management abilities and develop sound business plans focusing on the most efficient means of delivering value added products/services to customers. In this respect, tourism organizations will be able to maintain a competitive advantage over those who are not technologically advanced.
The increase in travelers over the years has prompted a demand for top quality IT with an emphasis on “servicing” the customer by offering high quality products at low costs. The success of the tourism industry will depend upon the abilities to recognize and respond quickly to current and prospective customer needs. IT is beginning to play a major role in “servicing” customers. IT has been a significant challenge for tourism organizations because it requires efficiency in internal and external communications. The initial cost of IT will be quite high in a financial sense, and the tremendous cost savings in the long-term will depend upon the efficiency of the IT during its crucial implementation stages.
Consequently, customers feel empowered by IT while at the same time are distancing suppliers. The customer enjoys having the power to identify products of preference at the right price, place, and time frame. It is important that service providers understand customer needs in building relationships and developing the best products at the lowest prices. The online companies that provide a full packaged travel experience at a low price will be successful in the long-term.
http://www.hospitalityimpact.com/en/articles/e_commerece_in_hospitality_tourism.htm
