Enabling:- innovation - new products / services / systems
Economy:- may get the job done at lower total cost
Efficiency:- may get the job done more easily / quickly / at lower average unit cost
Effectiveness:- may enable more complete achievement of A&O / deliver greater value.
Equity and Ethics:- may make possible a fairer distribution of product and service benefits meeting moral and social A&O.
IT MUST BE PERCEIVED AS ADDING VALUE GREATER THAN ITS COST
Why New Technology 2?
It can overcome the constraints and inversely proportional relationship between ‘Richness’ and ‘Reach’ which have always bedevilled the marketeer….the ‘holy grail’ of RELATIONSHIP can be realised on a one to one basis:
“ We are moving from one mass market to mass markets of one”
Anna Pollock (1999) ENTER Conference Edinburgh.
ICT Impacts: Disintermediation Provider Buyer Tour Operator Travel Agent TO or TA Provider Direct Provider Buyer Buyer Fully Disintermediated Partially Disintermediated Traditional Intermediated
Expensive international com
Little mass mkt travel exp.
Little language capability
No direct booking
Ticketing by specialists
‘ No’ High Street distribution
No Direct Sell
Virtually free comms
Experienced mass market
Direct sell by suppliers
The Inclusive Tour
Any case remaining ???? Would we ‘invent’ these now if they didn’t already exist????
ICT & Tourism 2
Think about these Qs for a minute or two & discuss with your friends adjacent...
Q1. What can a traditional travel agent or tour operator do presently that ICT can’t - and how crucial are such things to buyers?
Q2. In the next 5-10 years as software and internet based applications become even more intelligent and customisable to individual needs and wants - will there still be things that only a traditional agent/operator can do, or that he/she can still do much better (economically, effectively, efficiently…) than the technological alternative?
Q3. What sorts of agents and operators are most at risk?
Q4. What survival strategies might you advocate to those at risk?
ICT & Tourism
Disintermediation. (goodbye Mr T/A or Mr T/O?)
cost saving (commission),
direct relationship acquisition (via screen)
loses intermediary benefits not provided by ICT
loses (in one sense) choice of booking options
possible savings (if passed on by Tour Op / direct provider)
add value to customer and tour operator =/> commission
large ops --> multi-channel. Small --> niche. Medium???
ICT Successes - Why?
Why do some operators find ICT ‘easy’ to adopt and others not?
Is there anything about Tourism that makes it difficult to apply ICT successfully?