IT and Internet's Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group.
Demonstrate critical and evaluative interpretation and application of theoretical IT/ e-business concepts to a current tourism and hospitality market situation in order to build sustainable competitive advantage. I Introduction
Accompanying the technological revolution of the 1990s there are many new opportunities and challenges for the tourism and hospitality industries. Since tourism, global industry information is its life-blood and technology has become fundamental to the ability of the industry to operate effectively and competitively. Poon (1993) suggests that the whole system of information technologies is being rapidly diffused throughout the tourism industry and no player will escape information technologies impacts. The report below gives an insight into the importance of application of information technologies and the use of Internet in tourism and hospitality industries. Two given strategic frameworks provide the analysis of the Internet and its impact on these sectors. This paper also aims to show how technological innovations and information systems can be beneficial for the hotel companies, by using the example of Hilton Hotels Group. II IMPORTANCE OF TECHNOLOGY IN TOURISM AND HOSPITALITY SECTORS Market wisdom today suggests that hospitality companies must embrace technology to compete against traditional competitors, as well as entrants that build their businesses with the latest technology. In this changing environment, new models of distribution must be designed to lead the charge. A strategic information management function should facilitate the business mission of its enterprise through managed information, managed processes, and managed Information Technology (IT). Broadly, current applications of computer technology in the hospitality and tourism industries can be grouped into three main areas, operational, guest services and management information. The overall functionality of these applications is similar across a range of different hospitality organisations though the technology used to support them may vary. Large, city-centre hotels, for instance, tend to use minicomputers for their property management system (PMS) work. Microcomputers are employed elsewhere. The diffusion of the system of information technologies in tourism will increase the efficiency, quality and flexibility with which travel services are supplied. It has already led to the generation of new services, such as online brochures and interactive videotext. Technology has the greatest impact on the marketing and distribution of travel but leaves relatively untouched the human-intensive areas of guest-host relations and supplier-consumer relationships. Information technologies applied to the tourism system will increase the efficiency and quality of services provided and leads to new combinations of tourism services. All this could not be achieved without changing the manifest human high touch content of travel. It is the systematic use of the system of information technologies by all tourism suppliers, together with its profound impact on the travel industry, which creates the foundation for a new tourism best practice and a total system of wealth creation. Information and communication technology can be used not only for operational purposes, but also for tactical and strategic management. This empowers tourism and hospitality enterprises to communicate directly and more efficiently with prospective customers and suppliers as well as to achieve competitive advantage. One of the most established ways to analyze and develop complex systems (such as e-business) is to organize them in a meaningful structure. The four Ps model provided in Appendix A fully addresses the Internet product in relation to the shifting consumer expectations. III IMPACT OF INTERNET ON TOURISM AND HOSPITALITY INDUSTRIES: STRATEGIC...
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