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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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3.2 Internet features and its e-CRM benefits

As an information-intensive industry, e-marketing seems to be the ideal partner of the sector growth. Considering that the Internet is the most effective and efficient means in information exchange worldwide, it facilitates the promotion and distribution of tourist products. It even enables tourism destinations and enterprises to compete on a level playing field. The generation, gathering, processing, application and communication of information is essential in the daily operations of the industry which holds together the different producers within the travel industry (e.g airlines, tour operators, travel agencies, attractions, car rental, cruise lines).

In addition, the balancing between the tourism supply and demand is a key issue as tourism products are perishable and tourist demand often erratic. As a result, tourism became one of the first industries to apply IT and conduct electronic commerce from the early 1960s with computerised reservation systems (CRs) and global distribution System (GDSs).

A web based GDS is able to increase the speed of information transmission. It can improve the quality of information delivery, reduce the cost to the user who do not need special connections, and has the potential to interact with e-customers worldwide. That is the reason why most of the GDS companies launched web-based systems which are transforming the tourism distribution features. For instance, Amadeus launched Amadeus Pro Web in January 2000. The Amadeus Pro Web provides a browser-based reservation tool which allows travel agents to serve customers worldwide without a dedicated communications line. This system greatly reduce the cost.

In order to explain why Internet is such a valuable tool for the tourism sector, we are going to deal with its most interesting features from a the e-customer relationship management perspective.

3.2.1 Interactivity : the proactive e-consumer

Interactivity must be considered as one of the most distinctive and important feature of Internet. In fact, Internet allows to respond to user inputs, whereas communication media do not allow this interactivity.

Websites offer the opportunity to get some feedback in response to the actions performed by the e-customers. This can be considered as a two-way dialogue form which is an essential component of relationship marketing. It also helps to build customer loyalty.

3 The EITO is the European Information Technology Observatory

From the customer point of view, e-customers can find the relevant product informations and conduct transactions. From the companies point of view, it allows to clarify their clients needs and to inform them of the launching of new products.

In opposition to traditional communication channels such as newspapers or television, the e-customer becomes an active participant. As a matter of fact, the e-customer can choose and process the information he needs. We can say that this interactivity corresponds to the «desire marketing» approach as the e-customer gets only what he really wants and needs.

As an interactive media, Internet provides competitive intelligence, partnering and co-operation with other firms which often intends to improve the supply-channel and distribution-channel relationships.

With regard to the consumer to consumer communication, we must examine the marketing impact of the virtual communities. This virtual communities have implications on segmentation and customer service. The virtual communities allow exchange of information or experiences among customers. Consequently, companies are enabled to get a better understanding of its consumers behaviour.

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