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1. GENERAL
APPLICATIONS OF
INFORMATION
TECHNOLOGY IN THE
TOURISM AND
CHAPTER 3

2. GENERAL SERVIC
REQUIREMENTS
In today’s tourism and hospitality industry, it is important to note that serviced
provision drastically changes, and is continually evolving as years go by. The
adoption of information technology is rapidly increasing every year. It has
transformed the tourism and hospitality world into a global sector that can be
navigated at the click of a mouse or the tap of a finger. It provides potential tourists
or customers with easy and immediate access to a textual and visual representation
of destinations wherever they are in the world. In just few seconds, potential
customers can already see the place or attraction they wanted to visit.

3. The following figure illustrates the typical transactions or activities of tourism
and hospitality establishments where the need for IT is integral.
Restaurants/Food Establishments
• Table Reservations
• Food order (order taker to
kitchen)
• Takeout/Dine in
• Cashiering/ Billing
• Discount Processing
• Stocks Inventory Management
• Accounting
Hotels
• Room Sale
• Room Assignment
• Room Housekeeping
• Cashiering/Billing
• Discount Processing
• Room Inventory
Management
• Accounting
Figure 3.1 Industry Activities
Representation

4. The following figure illustrates the typical transactions or activities of tourism and
hospitality establishments where the need for IT is integral.
Airlines
• Seat Sale
• Seat Assignment
• Flight
Management
• Ticket Issuance
• Crew Scheduling
• Fare Quote
• Accounting
Events Company
• Booking Management
• Supplier Management
• Budget Management
• Sponsorship
Management
• Staff Management
• Billing Management
• Accountign
Figure 3.1 Industry Activities
Representation

5. Product and Service Marketing
As the tourism and hospitality industry is generally composed of products and services not just
offered to the local people can see and learn from what the destinations and establishments
are offering is the best thing to do. Company websites play a vital role in communicating the
services a tourism attraction offers.
The competition also affects the way a product or service is marketed online. Therefore,
customers tend to check which establishments offer the best products and services at
reasonable prices.
With this, we cans ay that information technology plays a vital role in marketing tourism and
hospitality products and services.

6. Behavioral and Performance
Analysis
With the use of information technology, the behavior of potential product buyers is observed in
the way they browse websites. For instance, where customer is looking for hotel facilities in
Cebu, he will begin several links or ads leading to hospitality establishments in said city. The
potential customer then may be triggered to view the website and book a room. This means
that the interconnectivity of the industry suppliers with its customers is affected by the use of
information technology.
The establishment’s performance can also be checked against the competitors through the use
of information technology. The number of available rooms for instance can be identified as
booking websites will tell you that the hotel you are looking for is already fully booked or not.
Websites can count their daily visitors and can calculate the number of current viewers.

7. Regulatory Process
The use of IT applications is also observed in business regulatory compliances.
Systems such as accounting software accredited and approved by the Bureau of
Internal Revenue (BIR) are used in the business so that compliance to tax reporting is
easy, fast, and efficient. Tools used by a company to access other government-
mandated compliances such as Social Security System (SSS) employee contributions
and PhilHealth are also necessary when operating tourism or hospitality-related
business.

8. Business-to-Business/Business-to-
Consumer Transactions
Business-to-Business or B2B is a form of a business transactions involving either
a manufacturer and wholesaler and a retailer. It is technically a transaction done
by establishments instead of between a company and a consumer. In other
words, it is the sale of products or services from one business to another. An
example of B2B in the tourism and hospitality setup is outsourcing hotel staff
from a human resource company or agency. Another example is the wholesale
food purchasing for a restaurant to operate daily. This type of business
transaction is important in the hospitality industry and usually involves contracts
and legal counsel in negotiating terms or prices.

9. Business-to-Business/Business-to-
Consumer Transactions
Business-to-consumer or B2C is another transaction that pertains to a deal
between a business and a consumer. It is the sale of products or services by a
company to the target individual customers or guests for a profit. In other words,
the usual service and product availments in the tourism and hospitality industry
dall under this type of transaction.
Information technology has also become an integral tool in these kinds of
business transactions. With IT, the distribution of products and networking of
business partners become easy, efficient, fast, and hassle-free. IT allows an
immediate means of accessing knowledge on all kinds of travel, tourism and
hospitality-related information.

10. Other Uses of IT in Tourism and
Hospitality
There are various uses of IT in the tourism and hospitality industry. Owners of
establishments should never overlook investing in IT tools to be able to compete
with the rest. Technologies, applications, tools, whatever they may call such, their
importance is something that business owners should implement in their
business strategies.

11. The following are some other uses of IT in the tourism and hospitality industry:
• Managing destination resources
• Inventory of tourism and hospitality resources
• Managing sites and attractions
• Identifying suitable locations for tourist
• Managing tourist statistics
• Managing inventory
• Managing consumer behavior
• Managing establishment’s performance
• Marketing of products and services