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E-Tourism in Europe The E-CRM and ITCs adoption issues: how to retain customers?

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par Myriam LABIDI
ESC Toulouse - Master in Marketing, Communication and Management 2005
  

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2/ The travel industry specific features and the ICTs impact

2.1 The travel industry value chain

Five main types of actors intervene in the traditional value chain of the travel and tourism industry:

- The suppliers including airlines, transportation companies and accommodation service providers

- The tour operators, whose role is to bundle the offerings of the suppliers.

- The Global Distribution Systems (GDS) which are used by other actors to manage prices and inventories in real-time. Amadeus, Galileo, Worldspan and Sabre are among the most used Global Distribution Systems.

- The Travel agents who are playing the role of intermediaries. They distribute travel products from
carriers, receivers and tour operators to the final customer.

- The final customer or traveller.

2.2 Providing the overal travel experience

Tourism most specific feature is its various components which are creating and delivering the overall "travel experience.' Along with transportation, it includes such things as accommodations, food and beverage services, shops, entertainment, aesthetics and special events. It is rare for one business to provide the variety of activities or facilities tourists need or desire. This adds to the difficulty of maintaining and controlling the quality of the experience. To overcome this hurdle, tourism related businesses, agencies, and organizations need to work together to package and promote tourism opportunities in their areas and align their efforts to assure consistency in product quality.

Tourism is usually defined as services for people travelling to and staying outside their usual environment for not more than one consecutive year for leisure or for business purposes. It covers four main activities:

- Transport

- Accommodation

- Restaurants

- Cultural activities and leisure

In spite of the fact that the tourism sector covers a wide range of services, it corresponds to a range of NACE categories described in the table below.

2 .3 The impact of the information and communication technologies

Considering the so-called globalisation of our society and the knowledge-based information structure of the economy, information and communication technologies are tightly linked with tourism. In fact, since the implementations of the first computerized reservation systems (early 1960's), the tourism sector is one of the most extensive "user" of the information and communication technologies (ICT). The gathering, processing and communication of information is key to the sector.

The wide range of possibilities of action and approach made available by the ICTs provoked a great change in the attitudes and behaviour of both consumers and producers. Sophisticated software applications are available, they are called: CRM (customer relationship management), SCM (supply chain management), ERP (enterprise resource planning), and KM (knowledge management). Nowadays, it obvious that any advanced and experienced organization cannot survive, in our dynamic economy, without making a good use of these techniques.

CRM seems to be the most important software application to be used in the tourism sector. In combination with business intelligence software, CRM software help firms to use more efficiently the information gathered about their customers. The Analysis of transaction data, website visits, and destination information usage allow to reveal behavioural patterns of tourist. Consequently, the tourism managers can better meet their customers and thus customize the offerings and services. This way it is possible to increase the profitability of loyal returning tourists.

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