Role of It in Travel and Tourism Industry

Topics: Computer reservations system, Tourism, Airline Pages: 14 (3485 words) Published: November 26, 2011
IT in travel



Rajnikant Patel- 111

Dr. Sushant Patel- 112

Rachita Patnaik- 113

Yashasvi Patravali- 114

Navjot Singh- 115


IT has touched every aspect of commerce and turned those industries into gold mines. Travel & tourism industry is also one of those which IT has not spared. And how it has brought about transformation and revolution will be seen in the due course of the presentation.

Let me first introduce you to the travel and tourism industry at large, and the focus is particularly on the Indian travel and tourism industry as a subset of the global tourism market.

India has been ranked 12th in Asia and 68th in the world as per the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum (WEF).

Tourism in India is the largest service industry, with a contribution of 6.23% to the national GDP and 8.78% of the total employment in India.

The tourism industry in India generated foreign exchange of about US $ 136 billion in 2008 and that is expected to increase to US $ 275.5 billion by 2018 at a 9.4% annual growth rate.

Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are the top 5 states to receive inbound tourists.

A new growth sector in Indian tourism is Medical Tourism. Medical tourism is essentially foreign tourist cum patients coming to India and seeking medical treatment. It is currently growing at around 30% per annum. It generated $ 9 Billion in 2010. The reason behind such a rapid growth in medical tourism is the fact that India offers hi tech medical treatments at a very cheap price. Giving you an example, if a bypass surgery here costs around Rs. 2 lac, exactly the same procedure with the same instruments and materials will cost you 30000 dollars in the U.S., i.e. Rs. 15 lac.

The tourism industry in India has also helped growth in other sectors as diverse as horticulture, handicrafts, agriculture and even construction.

Coming to IT in tourism, when information technology is used in travel and tourism industry, it leads to the emergence of a whole new parameter called eTourism.

eTourism reflects the digitisation of all processes and value chains in the tourism, travel, hospitality & catering industries.

eTourism is the leading B2C application, i.e. business to customer application and it comprises of almost 40% of all B2C eCommerce. Gone are the days when you would wait for the customers to come to you. In this era of fierce competition, you have to reach to the customers before someone else does.

60% of all tourists use internet to get information on destinations. So here we realize how essential information and communication technology is in today’s travel and tourism industry.


Till a few years ago, the basic sources of information in the tourism sector were pamphlets, brochures, directories, guide books, etc. produced and published by different countries. The last few decades witnessed the application of computer and communication technologies in the field of tourism. Two distinct streams of information sources viz, (i) online and (ii) offline came into existence.

Core results regarding ICT-related developments in the aviation industry:

E-Ticketing: The elimination of traditional paper-based tickets is one of the core elements of the low-cost business model. Yet, e-ticketing is not limited to the so called “no-frills” airlines. The adoption of e-ticketing is increasingly pursued also by network carriers. The International Air Transport Association (IATA) intends to achieve a 100% penetration of e-ticketing among its members by the end of 2007.

Customer self-service: Another measure for cost reduction and the acceleration of passenger flows at airports is to introduce customer self-service check-in solutions. This may be done on the spot by self-service kiosks or in the form of web based check-ins, which may even...
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