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Destination, the Industry, and Peer-To-Peer. 2017-2018 edition

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Destination, the Industry, and Peer-To-Peer. An educational presentation for the IT for Tourism Services course at the University of Bergamo, Italy

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Destination, the Industry, and Peer-To-Peer. 2017-2018 edition

  1. 1. IT for Tourism Services, UniBg 2017-2018 Destinations, the Industry, and Peer-To-Peer Destinations, Industry, P2P. Lecture 03, October 10, 2017
  2. 2. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 What Are We Talking About Today? slide 2Destinations, Industry, P2P. Lecture 03, October 10, 2017 1. Managing Globality 2. Destinations 3. The Industry 4. OTAs & Metasearch Engines 5. Travel Communities 6. Blogs, Publisher & Affiliations 7. Peer-To-Peer
  3. 3. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Managing Globality slide 3Destinations, Industry, P2P. Lecture 03, October 10, 2017 Jean-Pierre Lozato-Giotart “Tourism is the management of globality”
  4. 4. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destination? What Is This? A territory? A product? A network? slide 4Destinations, Industry, P2P. Lecture 03, October 10, 2017
  5. 5. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations As Territories “A physical space in which a visitor spends at least one overnight. It includes tourism products such as support services and attractions, and tourism resources within one day’s return travel time. It has physical and administrative boundaries defining its management, images and perceptions defining its market competitiveness. Local tourism destinations incorporate various stakeholders often including a host community, and can nest and network to form larger destinations.” The World Tourism Organization (WTO), 1999, 2007 slide 5Destinations, Industry, P2P. Lecture 03, October 10, 2017
  6. 6. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations As Offers “A bundle of activities and factors of attractiveness situated in a specific place (site, locality, destination) [which] can provide a well-constructed and integrated tourism offer, that represents a distinctive system of tourism hospitality enhancing local resources and culture.” Maurizio Rispoli, Michele Tamma, Economists, Ca’ Foscari University, Venice, 1995 slide 6Destinations, Industry, P2P. Lecture 03, October 10, 2017
  7. 7. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 “The destination is a place ‘created’ and defined by the visitor, to which the visitor is attracted and in which he moves freely in/with the mass.” Nothing less and nothing more than a network. Pietro Beritelli, Institute for Systemic Management and Public Governance, University of St. Gallen, Destinations’ Consultant, 2014 slide 7Destinations, Industry, P2P. Lecture 03, October 10, 2017 Destinations As Networks
  8. 8. IT for Tourism Services, UniBg 2017-2018 slide 8IT for Tourism Services, UniBg 2017-2018 The Destination’s Network Visitors Locals Managers Image credit to id-vacation.blogspot.com The Place
  9. 9. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destination Management Organizations Does the M stand for Management? Or for Marketing? What should a DMO care for? Can a DMO rule a local tourism network? Can a DMO run a territory? Can a DMO even lead a community? Or has it basically to sell an area’s tourism products? Period. slide 9Destinations, Industry, P2P. Lecture 03, October 10, 2017
  10. 10. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Stakeholder noun [countable] Someone who has invested money into something, or who has some important connection with it, and therefore is affected by its success or failure. Stakeholder in... – Citizens should be stakeholders in the society they live in. Definition from Longman Dictionary of Contemporary English Image credit to infinityimmigration.com, BC, Canada slide 10 We’re All Stakeholders Destinations, Industry, P2P. Lecture 03, October 10, 2017
  11. 11. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations Are Made By Their Stakeholders Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 11
  12. 12. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Different Sorts of Tourists Destinations, Industry, P2P. Lecture 03, October 10, 2017 Short-break tourists? Young tourists? Backpackers? Cultural tourists? Families? Vacationers? Businessmen? “Silent” tourists? Their needs are different. How to satisfy all those different needs? slide 12 Image credit to Getty Images
  13. 13. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task DMOs [Destination Management or Marketing Organizations] (or LTBs, Local Tourist Boards, or RTBs, Regional Tourist Boards) Either public or private/public funding Attracting visitors to the destination; marketing the destination and local actors; informing and assisting visitors before, during and after their visit Destination Management Organizations Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (1) – The Public, or Consortia slide 13
  14. 14. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 DMSs, Destination Management Systems Destinations, Industry, P2P. Lecture 03, October 10, 2017 In terms of digital management of tourism destinations, there’s more to be considered. Let’s introduce the Destination Management System, or DMS. DMSs are based on digital platforms. They rely on content management systems intended to drive local tourism operators to cooperate with one another. This in instrumental to manage a local tourism system –- or, if you prefer, a destination as a network. In fact, DMSs are based on a network approach as far as tourism operators (local authorities, hotels, restaurants, museums, art galleries...) are concerned ... or, rather, DMS are supposed to be based on a network approach. The story of Tiscover provides examples. slide 14
  15. 15. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 The Industry © 2015 Peanuts Worldwide LLC In short, the tourism industry includes • Travel Suppliers • Travel Agents • Peer-To-Peer ... and, well, people ... slide 15
  16. 16. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Back to the basics Destinations, Industry, P2P. Lecture 03, October 10, 2017 When you come across a website somehow dealing with tourism, can you say what is it for? Can you spell its • Category? • Model? • Main Task? slide 16
  17. 17. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Who’s Who? Destinations, Industry, P2P. Lecture 03, October 10, 2017 If you’re in serious doubt about a website’s Model, finding out who owns the second-level domain name may be worthwhile. To do so, you can consult the whois form on websites like whois.net, where owners of the “international” domain names, the first level of which is .com, .net, .org, .biz, .tv, .travel or the like, are usually found. National domains instead, the first level of which coincide with national states’ acronyms -– like .pl for Poland, .it for Italy, or .uk for the United Kingdom –- should be searched for by consulting the individual national registration authorities. slide 17
  18. 18. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Travel Suppliers (Air France, Deutsche Bahn, Trenitalia, RyanAir, Accor, Holiday Inn, Hertz etc.) Online sale of tourism services (flights, hotels, car rentals etc.) mostly produced by the suppliers themselves Selling services directly (no agents) Travel Suppliers Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (2) – Big Private, or Public slide 18 ... and we’re not dealing here with B2B GDSs like Amadeus or Sabre...
  19. 19. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 “Amadeus”? What Is That? Destinations, Industry, P2P. Lecture 03, October 10, 2017 Amadeus IT Group SA /æməˈdeɪʊs aɪ tiː ɡrʊp/ is a multinational IT Provider for the global travel and tourism industry. Amadeus was originally created as a neutral global distribution system (GDS) by Air France, Iberia, Lufthansa and SAS in 1987 in order to connect providers' content with travel agencies and consumers in real time. The creation of Amadeus was intended to offer a European alternative to Sabre, the American GDS. slide 19 Source: Wikipedia, accessed 20160703
  20. 20. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 An Amadeus Report Destinations, Industry, P2P. Lecture 03, October 10, 2017 A suggested link from the 44141 Program slide 20
  21. 21. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Pre-Digital Agents (big like TUI and Amex, or small like SmallWorld and local travel shops) Intermediation of tourism services mostly not produced by them Selling travel packages Travel Agents Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (3) – Big or Small Private slide 21
  22. 22. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Online Travel Agents (OTA or OLTA, like Travelocity, Expedia, Booking.com, Priceline, Venere, HostelWorld, eDreams etc.) Online intermediation and sale of tourism services (flights, accommodation, car rentals, packaged tours etc.) mostly not produced by agents Cashing brokerage rates (under different specific models: Expedia’s differs from Booking.com’s) Online Travel Agents (OTA, OLTA) Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (4) – Big Private slide 22
  23. 23. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Travel Metasearch Engines (or fare aggregators, like Trivago, Kayak, Mobissimo etc.) Online comparison of tourism services and their fares (flights, accommodation, car rentals, packaged tours etc.) mostly offered by Online Travel Agents Cashing intermediation, mostly from Online Travel Agents Travel Metasearch Engines Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (5) – Big Private slide 23
  24. 24. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations, Industry, P2P. Lecture 03, October 10, 2017 1. Doing Nothing. A DMO can choose not to mention hotel accommodation at all. Several national tourist boards adopt this policy, as many DMOs are statutorily not allowed to advice visitors as far as accommodation is concerned, and are not allowed to sell anything. But an essential service is missing. slide 24 Digital? What Can Destinations Do? It is perhaps appropriate to introduce here the issue of which policy can a destination adopt, when it deals with selling its tourism services –- starting from hotel chambers –- to the general public. Here are the four available options (but note that they can combine with one another).
  25. 25. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations, Industry, P2P. Lecture 03, October 10, 2017 3. Building Its Own Platform. A DMO can build its own hotel reservation system, as a public component of its DMS. Although this is an expensive option –- and visitors would still use their favourite OTAs –- this is the most thorough choice: the DMO fully takes care of, represents and promotes the hotels in its territory. slide 25 More Choices for the DMOs 2. Linking To The Hotels’ Websites. A DMO can list the local hotels, and add links to the hotels’ websites. In practice, this is often the only viable choice. A service is formally provided, but visitors won't use it very much: it’s easier, for them, referring to an OTA website.
  26. 26. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations, Industry, P2P. Lecture 03, October 10, 2017 4. Dealing With An OTA. Finally, a DMO can find an agreement with an OTA or a Travel Metasearch Engine. An hotel reservation service is somehow provided, and the DMO can get some profits through an affiliation agreement. slide 26 Coming To Terms With The Enemy Although this is the cheapest and quickest option, critics might observe that, by doing so, the DMO looses all its control on accommodation policies, and abandons all the accommodation businesses in its own area –- which a DMO should take care of, represent and promote –- to the OTA’s will.
  27. 27. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations, Industry, P2P. Lecture 03, October 10, 2017 A similar -– yet more compelling –- issue must be addressed by hoteliers. Destinations can choose to avoid OTAs, but hotels actually can’t. People are increasingly accustomed to book through their favourite OTA, and hotels which are not listed on OTAs run the risk of becoming invisible. slide 27 Hoteliers and E-Commerce
  28. 28. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Destinations, Industry, P2P. Lecture 03, October 10, 2017 On the other hand, OTA obviously charge a percentage on reservations placed through them –- which erodes the hoteliers’ income. Although dealing with private enterprises is beyond the scope of these lectures, this issue has at least to be mentioned here. Some materials on management of tourism businesses –- relating to previous workshops held by your lecturer –- are available from the IT for Tourism Managers webpage at the University website http://www.unibg.it/struttura/en_struttura.asp?corso=44111 slide 28 Management of Tourism Businesses
  29. 29. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Travel Communities (first of all, Tripadvisor) Online comparison of tourism services (often accommodation, food and points of interest) through user-generated content: tipically, customer reviews Cashing advertisings (though recently TripAdvisor has become something very very close to an OTA) Travel Communities Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (6) – Big Private slide 29 Is it still a travel community?
  30. 30. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Travel Blogs (or travelogue, like PeterGreenberg, NomadicMatt, DigitalNomad, etc.) None – though some travel bloggers increasingly act as professional travel writers or journalists. Affiliation is also possible Informing on personal travels, possibly making profits through agreements with DMOs or publishers, and/or marginal profits through affiliations Travel Blogs Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (7) – Small Private slide 30
  31. 31. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Travel Publishers (Frommer’s, Lonely Planet, Touring Club Italiano, Michelin etc.) Sale of guidebooks, travel books or digital content, mostly produced by the publishers themselves Selling books or digital content directly (no intermediation). Also selling massive digital content to destinations or companies. Travel Publishers Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (8) – Private slide 31
  32. 32. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Small Businesses or Amateurs (like CiaoMilano) Sponsorship and/or advertisements on the website; possibly sale of digital content; affiliation Informing on a tourist area, and possibly making marginal profits through affiliations Unofficial “Destinations”, and Affiliation Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (9) – Small Private slide 32
  33. 33. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Accommodation Suppliers (Family-run private hotel, Bed & Breakfast, Farmhouse, like frances.it) Online sale of tourism services (hospitality) produced by the suppliers themselves Selling services directly (no intermediation) or selling through Online Travel Agents and/or DMOs Small Service Suppliers Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (10) – Small Private slide 33
  34. 34. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Peer-To-Peer Destinations, Industry, P2P. Lecture 03, October 10, 2017 Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or work loads between peers. Peers are equally privileged, equipotent participants in the application. They are said to form a peer-to- peer network of nodes. slide 34
  35. 35. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 General Category of Tourism Websites Model Main Task Accommodation Brokers (like AirB&B, Wimdu, Couchsurfing, etc.) Online intermediation of accommodation either provided by small business or made available by citizens Cashing brokerage rates, if any. (Some of these websites disguise as sharing economy.) Accommodation Brokers Destinations, Industry, P2P. Lecture 03, October 10, 2017 Categories of Tourism Websites (6) – Private slide 35
  36. 36. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Airbnb Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 36
  37. 37. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Uber Destinations, Industry, P2P. Lecture 03, October 10, 2017 Uber Technologies Inc. is an American multinational online transportation network company headquartered in San Francisco, California. It develops, markets and operates the Uber mobile app, which allows consumers with smartphones to submit a trip request which is then routed to Uber drivers who use their own cars. As of May 2016, the service was available in over 66 countries and 449 cities worldwide. Since Uber's launch, several other companies have replicated its Model, a trend that has come to be referred to as "Uberification“. slide 37
  38. 38. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Peer-To-Peer, or P2P Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 38 “Consumers are expected to increasingly turn to peer-to-peer travel services, which represent today the best answer to some of their needs, while large travel companies are likely to gradually embrace the peer-to-peer trend.” Source: World Travel & Tourism Council, “Online Travel in 2016: Mobile Channel and Peer-to-Peer Travel Services Drivers of Growth”, Medium, January 27, 2016
  39. 39. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 The Rise Of Peer-To-Peer Travel Services Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 39 Source: World Travel & Tourism Council, “Online Travel in 2016: Mobile Channel and Peer-to-Peer Travel Services Drivers of Growth”, Medium, January 27, 2016
  40. 40. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Sharing Economy Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 40
  41. 41. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Crowd-Based Capitalism? Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 41 Sharing isn’t new. Giving someone a ride, having a guest in your spare room, running errands for someone, participating in a supper club—these are not revolutionary concepts. What is new, in the “sharing economy,” is that you are not helping a friend for free; you are providing these services to a stranger for money. Arun Sundararajan explains the transition to what he describes as “crowd-based capitalism”—- a new way of organizing economic activity that may supplant the traditional corporate-centered model.
  42. 42. IT for Tourism Services, UniBg 2017-2018IT for Tourism Services, UniBg 2017-2018 Sharing Economy? Destinations, Industry, P2P. Lecture 03, October 10, 2017 slide 42
  43. 43. IT for Tourism Services, UniBg 2017-2018 slide 43IT for Tourism Services, UniBg 2017-2018 Airbnb Hosts’ Guidebook Destinations, Industry, P2P. Lecture 03, October 10, 2017
  44. 44. IT for Tourism Services, UniBg 2017-2018 slide 44IT for Tourism Services, UniBg 2017-2018 Google Local Guides Destinations, Industry, P2P. Lecture 03, October 10, 2017
  45. 45. IT for Tourism Services, UniBg 2017-2018 slide 45IT for Tourism Services, UniBg 2017-2018 Contributing? Destinations, Industry, P2P. Lecture 03, October 10, 2017

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