This document discusses the strategic applications of information technology in the tourism industry. It begins by defining key terms like information technology and information systems. It then describes the evolution of IT in tourism business from industrial automation to today's digital transformation. Some strategic applications of IT discussed include managing value chains and costs, managing knowledge and information through effective strategies, and using IT for marketing and gaining competitive advantages through innovations.

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Lesson II – Tourism Information Technology
I. Learning Outcome
 Define key terms and concepts in information technology
 Describe the evolution of information technology in Tourism Business.
 Recognize the typologies of information relevant to tourism-
 Evaluate the strategic applications of information technology in tourism organizations and
destinations; and
 Explain and evaluate the components and functions of information technology tourism
using a digital tourism ecosystem perspective.
II. Content
Information Technology
• Information technology (IT) is the acquisition, processing, storage, and dissemination of
vocal, pictorial, textual, and numerical information by a microelectronics-based
combination of computing and telecommunications.
• IT is the area of managing technology and spans a wide variety of areas that include but
are not limited to things such as processes, computer software, information systems,
computer hardware, programming languages, and data constructs.
• Information technology has far-reaching economic and social implications. The increase
in the availability of information is the most significant advantage associated with access
to new technology. Information is disseminated and exchanged with a wider audience.
Second, it lowers the manufacturing costs of information being developed, distributed,
accessed, and exchanged
Information Systems
• Information systems are combinations of hardware, software, and telecommunications
network that people build and use to collect, create and distribute useful data, typically in
organizational settings.
• Hardware is the input and output devices of a typical Information System. It includes
computers or desktops, laptops, video monitors, magnetic disk drives, optical scanners,
printers and other necessary for the system to function accordingly.
• Software includes programs and applications that convert data into machine readable
language. Examples are operating system programs, payroll programs, word processing
programs, and spreadsheet programs.
History and Evolution of Information Technology

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Technology has always existed in forms we don’t consider to be technologies before, as seen on the
figure above. For decades, the evolution of science has coincided with the advancement of technology
in society. It has evolved from basic yet innovative materials to technologies with which we are all familiar.
While they are centuries and decades apart, they all serve the same purpose: to make human life easier.
Information Technology in Tourism
Tourism and hospitality are social phenomena, and the industries associated with them are primarily
service-oriented. Researchers in this field have conducted and will continue to conduct, research that
produces innovative information that will support these industries and, in turn, society. As IT investment
and adoption have become essential components of the tourism and hospitality industries, it serves as a
mechanism for both enabling and inducing change.
e-Tourism
− refers to a concept and research area in which the adoption of information and communication
technology (ICT) by tourists and businesses transforms the processes and the value chains in
the tourism industry. This development changes the processes within a business or organization
while reconfiguring the landscape of commerce (Buhalis, 2003).
Tourism Value Chain
− is a mechanism that describes how private sector companies, in partnership with government and
civil society, obtain or access capital as inputs, add value through various processes (planning,
development, financing, marketing, distribution, pricing, positioning, and so on), and sell the
resulting products to tourists. From conception to actualization and beyond, the value chain
defines the full range of activities required to facilitate visitor experiences.
Business
Management
Marketing
Finance
HRM
Procurement
I.T.'s
Information Systems
Information
Communication
Technologies
Telecommunications
Tourism
Heritage
Food and Beverage
Transportation
Accommodation
Entertainment
e-Tourism

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Tourism, as a service industry, is particularly affected and transformed by technological advancements.
E-tourism is the digitalization of the entire touristic industry and infrastructures; some of its benefits
include reduced seasonality, improved customer contact, and an increase in reservations and sales in
general. Similarly, the advancement of ICT is inextricably linked to the advancement of e-tourism.
Airlines, for example, used to manually handle reservations using card system, and hotels used to monitor
inventory using colored tapes on the walls. As soon as the first electronic general-purpose computer,
ENIAC, appeared in 1946, airlines started the wave of adoption: American Airlines installed the first
automated booking system in the same year. In the 1960s and 1970s, other airlines and hotel chains
began to use ICT to develop book electronic reservation systems. Such airline and hotel networks began
to integrate into global distribution systems in the 1980s, enabling travel agencies to book multiple
services. The widespread adoption of the Internet in the 1990s provided new avenues of distribution and
ways of directly reaching visitors, allowing the Interne to begin reconfiguring the structure of tourism
sectors (Buhalis & Law, 2008). Social networking and mobile technology revolutionized how customers
access information and perform transactions in the early twenty-first century, altering the power dynamic
and balance between consumers and businesses. In the early 2010s, the possibility of applying massive
quantities of online data to tourism had the potential to turn "big data” into information, significantly
improving the tourism experience and providing a deeper understanding of behavioral trends and
industry structure.
The Evolution of IT in Tourism Business
Over the last 50 years, the IT industry has played a pivotal role in generating business value for users.
• Industrial automation was driven by mainframes and PCs in the 1960s and 1970s, followed by
client-server architecture and the internet in the 1980s and 1990s, which contributed to
business process automation.
• Digital transformation has been driven by the advent of digital systems since 2000, due to
technological advances in cloud computing, mobile, big data and social networks. The intelligent
enterprise will be enables by the emergence of intelligent technology such as advanced
analytics, machine learning, artificial intelligence (AI), and the Internet of Thing (IoT).
Typologies of Information
Trip Stage Static Dynamic
Pre-trip Brochures, guidebooks, fax,
photos, videos, some
information on websites
Phone, email, websites, social
media, Internet booking
engines, Global Distribution
Systems
In-trip Brochures, guidebooks, signs,
maps, kiosks, TV channels in
hotels, some mobile apps
Phone, fax, email, websites,
social media, mobile apps

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Post-Trip Brochures, guidebooks, photos,
video
Blogs, social networks, media
sharing, reviews
• Static Information refers to a fixed data set-or, data that remains the same after it's collected.
• Dynamic Information, refers to continual changes after it's recorded in order to maintain its
integrity.
Strategic Applications of IT in Tourism Industry
• Managing Value Chains. Businesses must constantly evaluate the value they generate as
competition for high-quality goods, low prices, and outstanding customer service grow. The value
chain analysis is one of the most useful methods for breaking down each business process and
identifying opportunities for innovation using information technologies and systems. The following
are three goals that should be prioritized during analysis if you want to see results:
o Achieve the best/lowest costs for the entire supply chain, including operation,
transactional, and handling costs.
o Aim for the quickest cycle time possible.
o Identify and implement the greatest practices for each core activity, sub-process, or
process.
• Managing Knowledge and Information. A knowledge management (KM) strategy is a detailed
plan that will assist the company in managing information, data, and knowledge for the benefit of
all stakeholders. Identification, collection/creation, organization and storage, curation,
dissemination, and utilization are the processes required for information management, with the
help of ICTs. Effective knowledge management strategies are aligned with the organization's
overall plan and goals, and they keep the KM team focused on your business priorities and needs.
Having a simple and consistent knowledge management plan allows you to:
o Increase internal information management awareness and understanding.
o Create a compelling business case for the potential benefits to your company.
o Clearly articulate effective knowledge management practices, as well as the organization's
existing knowledge management status, priorities, and strategies for achieving those
goals.
o Obtain senior management support.
o Gather resources to put your plan into action.
o Track your progress.
• Marketing and Competitive Advantage. Company innovation is aided by information
technology, which leads to smarter applications, better data storage, faster retrieval, and broader
information, dissemination, all of which are beneficial to the tourism industry. Competitive
advantage is what makes a company's goods or services more appealing to consumers than those
of a competitor; it is a company's ability to manufacture something more effectively or
inexpensively than a rival, resulting in higher profit margins.
Competitive advantages can be broken down into comparative advantages and differential
advantages. A company's comparative advantage is the ability to manufacture something less
expensive than a competitor, resulting in higher profit margins. While a differential advantage is
when a company's products are seen as both unique and of higher quality, relative to those of a
competitor.
• Service Delivery and Customer Relationship Management (CRM). Customer relationship
management, or CRM, is a method for improving service delivery by developing both business
processes and supporting infrastructure. CRM system focuses on automating and optimizing
front-end company processes including marketing, distribution, customer service, and support.
CRM software and hardware are just a portion of the system; individuals, procedures,
management, and incentive programs must all be included for a CRM system to be effective. This
aims to increase the efficiency of the company by creating the following: a single, complex, and
consistent understanding of the customer from a company's viewpoint, across different
departments of an organization; and a single, dynamic, and clear understanding of the company
from the customer's viewpoint, regardless of communication medium used (personal meeting,

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mobile, internet); and improved communication, coordination, and efficiency across marketing,
sales, service delivery, and support departments within an organization.
Customer relationship management strategy needed to achieve following:
o Determine how to satisfy consumers in addition to delivering high-quality goods and
services
o Assist in the retention of current consumers in order to increase efficiencies and lower
acquisition costs
o Ensure customer satisfaction and a memorable brand experience
o Improve the overall relationship between the business entity and particular audiences
• Strategic Listening. In a business industry, listening is essential for successful working
relationships among employees and between management and staff in the business world. It also
affects how an organization interacts with consumers and other companies. Industries can acquire
information and facts that can assist in making decisions that support the company because of
the much easier and accessible interaction provided by information technology.
The Digital Tourism Ecosystem
Tourism is one of the most popular spheres of application of digital ecosystems. Its functions are the
following:
Ecosystem Functions:
• Inspiration. One of the most important aspects of the tourism industry at this stage is to inspire
buyers and potential customers. Information disseminated must be interactive, appealing, and
timely in order to attract these consumers. They must be convinced to have their travel, lodging,
and other related transactions with your organization for other ecosystem functions to proceed.
• Transaction. When customers decide to do business with you, you must meet all of their needs
with the best service you can provide. Aim to make their transaction as smooth as possible,
especially if they are booking or making a reservation for flights, hotels, or other services. With
the support of good and reliable customer service, the transaction can be as comfortable and
hassle-free as possible for them.
• Experience The importance of experience until they land or arrive at their destination cannot be
overstated. They must have the best possible experience with your company/agency, including
excellent accommodations, breathtaking views, attractive offers, and reasonably priced yet high-
quality services. Since all plans and outcomes are rooted in their experience, this is the heart of
the entire cycle.
• Reflection. This is the part where they reflect on everything they did, from planning to booking to
the actual experience. Feedback is one of the most important things we must value in business;
their words can make or break a company. To gain positive reviews as they reflect on their entire
experience doing business with your company, you must provide the best service possible. For a
happy customer means happy business.
Components of the Digital Tourism Ecosystem
All of the functions require the components of the digital tourism ecosystem, which include elements of
the digital technical environment as well as roles and responsibilities in the field, to make it work.
Desktops, laptops, and mobile devices are used in conjunction with connections (Wi-Fi, Broadband,
Protocols) to produce content and information that can be disseminated through touchpoints such as
websites, search engines, and applications. Certain entities and communities will play the role of
information professionals in accelerating business practices, enriching consumer interactions, and
enhancing organizational agility in order to make the whole process possible. Enterprise Content
Management (ECM), Electronic Records Management (ERM), Business Process Management (BPM),
Taxonomy and Metadata, Knowledge Management (KM) Web Content Management (WCM), Document
Management (DM), and Social Media Governance technology solutions and best practices are all part of
the information management environment. These entities must be able to use the technologies and
perform the following tasks:
• Create and Capture Information
• Extract Intelligence from Information
• Digitalize Information-Intensive Processes

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• Automate Governance and Compliance
• Implement an Information Management Solution
III. LEARNING ACTIVITIES**
IV. ASSESSMENT**
** to be discussed next week
Prepared by:
CATHERINE M. CAMPO
Instructor I
Email: catherine.campo@minsu.edu.ph
WhatsApp: 09664783879