Role of It in Travel and Tourism Industry

IT in pass away ROLE OF IT IN TRAVEL AND flingistry INDUSTRY GROUP BK Rajnikant Patel- 111 Dr. Sushant Patel- 112 Rachita Patnaik- 113 Yashasvi Patravali- 114 Navjot Singh- 115 Preview IT has touched both aspect of commerce and turned those industries into gold mines. fit & transitistry exertion is overly unity of those which IT has not sp bed. And how it has brought about transformation and revolution result be seen in the repayable course of the presentation. Let me first state you to the be active and hang-upistry industry at large, and the focus is particularly on the Indian trigger and touristry industry as a subset of the spheric touristry 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 inIndiais the largest portion industry, with a contribution of 6. 23% to thenational GDP and 8. 78% of the total employment in India. The tourism industr y 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 gain rate. Maharashtra,Tamil Nadu, Delhi, Uttar Pradeshand Rajasthan ar the top 5 states to know inbound tourists.A new exploitation sector in Indian tourism is MedicalTourism. Medical tourism is essentially foreign tourist cum patients coming to India and seeking medical checkup exam treatment. It is currently growing at near 30% per annum. It generated $ 9 jillion in 2010. The reason behind much(prenominal) 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 short surgery here be just about Rs. 2 lac, exactly the kindred procedure with the same instruments and materials exit cost you 30000 dollars in the U. S. , i. e. Rs. 15 lac.The tourism industry in India has likewise fostered growth in former(a) sectors as diverse as hor ticulture, handicrafts, agriculture and even construction. Coming to IT in tourism, when culture technology is engagementd in fit and tourism industry, it leads to the emergence of a whole new parameter screamed eTourism. eTourism reflects the digitisation of all processes and value fetter in the tourism, travel, hospitality & catering industries. eTourism is the leading B2C employment, i. e. wrinkle to node application and it comprises of al or so 40% of all B2C eCommerce. Gone argon the days when you would seem for the customers to come to you.In this era of fierce competition, you suffer to reach to the customers in the beginning someone else does. 60% of all tourists use internet to get information on finishs. So here we insure how essential information and communion technology is in todays travel and tourism industry. eAirlines bowl a few categorys ago, the basic sources of information in the tourism sector were pamphlets, brochures, immediatelyories, guide book s, etc. produced and published by different countries. The utmost(a) few decades witnessed the application of computer and communication technologies in the field of tourism.deuce 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 expulsion of traditional news report-based tickets is one of the core elements of the low-cost business model. Yet, e-ticketing is not check to the so called no-frills air passages. The adoption of e-ticketing is increasingly pursued as well by network common 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 other measure for cost reduction and the acceleration of rider flows at airports is to get out customer self-service report solutions. This may be done on the spot by self-service kiosks or in the form of network based reports, which may even allow users to report from home or their use. Bar-coded boarding passes offer a natural plug in with e-ticketing and self-service check-in. get alongly lately, it has become possible not only to print boarding passes at the passengers home, but also to place bar codes on the passengers cell phone, thus making paper documents obsolete.RFID for baggage handling might replace classical baggage tags in the near future. It might simplify air passage luggage prudence considerably, improve customer service in terms of reductions in mishandled luggage, and come by means of new pledge mechanisms. Computer substitutes System (CRS) A computer bookings establishment (or aboriginal reservation governing body) (CRS) is a computerized system apply to store and retrieve information and steer transactions related to air travel. Originally designed and operated by airlines, CRSes were after(prenominal)wards extended for the use of travel agencies.Major CRS cognitive processs that book and get by tickets for quaternary airlines atomic number 18 kn hold as global dispersion systems (GDS). Airlines stick divested most of their direct holdings to dedicated GDS companies, who pick out their systems overtureible to consumers by dint of earnings gateways. Modern GDSes typically allow users to book hotel rooms and rental cars as well as airline tickets. They also deliver access to line reservations in some markets although these ar not always integrated with the primary(prenominal) system. Global Distribution Systems (GDS)Major CRS operations that book and sell tickets for multiple airlines are kn let as global distribution systems (GDS). Modern GDSes typically allow users to book hotel rooms and rental cars as well as airline tickets. GDS distribute more than than one CRS to users who are travel agents. GDS charter massive investment because they are large computer system that link several airline s and travel principals into complex network of PCs, telecommunications and large mainframe system. rough leading GDS are Amadeus, Sabre, Galileo and WorldSpan are travel agents. eHospitalityHotels use ICTs in vagabond to improve their operations, manage their inventory and maximise their profitability. Their systems facilitate both in- dramatic art heed and distribution finished electronic media. Property management systems (PMSs) coordinate forward office, sales, planning and operational functions by administrating reservations and managing the hotel inventory. Moreover, PMSs integrate the back and front of the house management and improve general administration functions much(prenominal) as invoice and finance marketing research and planning forecasting and yield management payroll and personnel and purchasing.Understandably, hotel chains gain more benefits from PMSs, as they batch introduce a unified system for planning, budgeting and controlling and coordinating their properties centrally. Hotels also utilise ICTs and the Internet extensively for their distribution and marketing functions. Global straw man is essential in order to enable both individual customers and the travel trade to access accurate information on availability and to provide easy, efficient, inexpensive and reliable ways of making and confirming reservations.Although primal Reservation Offices (CROs) introduced central reservations in the 1970s, it was not until the amplification of airline CRSs and the recent ICT developments that forced hotels to develop hotel CRSs in order to expand their distribution, improve efficiency, facilitate control, authorise yield management, reduce labour costs and enable rapid chemical reaction time to both customers and management requests. Following the development of hotel CRSs by most chains, the issue of interconnectivity with other CRSs and the Internet emerged.As a result, switch companies, such as THISCO and WIZCOM, emerged to prov ide an interface between the discordant systems and enable a certain degree of transparency. This reduces both set-up and reservation costs, whilst facilitates reservations finished several distribution manoeuvers. eTour Operators Leisure travellers often purchase packages, consisting of charter flights and accommodation, arranged by tour operators. Tour operators tend to pre-book these products and distribute them through brochures displayed in travel agencies.Hence, until tardily in northern European countries, where tour operators dominate the leisure market, airline and hotel CRSs were rarely utilised for leisure travel. In the early 1980s, tour operators effected the benefits of ICTs in organising, promoting, distributing and coordinating their packages. Thomsons Open-line Programme (TOP) was the first real-time computer-based central reservation office in 1976. It introduced direct communication with travel agencies in 1982, and announced that reservations for Thomson Hol idays would only be accepted through TOP in 1986. This move was the critical point for altering the communication rocesses between tour operators and travel agencies. Gradually, all major(ip) tour operators developed or acquired databases and ceremonious electronic links with travel agencies, aiming to reduce their information handling costs and increase the speed of information transfer and retrieval. This improved their productivity and capability management whilst enhancing their services to agencies and consumers. Tour operators also utilised their CRSs for market intelligence, in order to adjust their supply to demand fluctuations, as well as to monitor the booking progress and productivity of travel agencies.Tour operators suck been reluctant to focus on ICTs through their strategic planning. Few realize the major transformation of the marketplace, while the majority regards ICTs exclusively as a facilitator of their current operations, and as a tool to reduce their costs. However, several tour operators in Germ any, Scandinavia and the UK have moved towards electronic brochures and developed their online strategies. Successful operators herald that up to 25% of their packages are booked directly by consumers online. This enables them to constrict on niche markets. eTravel AgenciesICTs are irreplaceable tools for travel agencies as they provide information and reservation facilities and support the intermediation between consumers and principals. Travel agencies operate non-homogeneous reservation systems, which mainly enable them to check availability and make reservations for tourism products. Until recently GDSs have been critical for business travel agencies to access information and make reservations on scheduled airlines, hotel chains, car rentals and a miscellany of ancillary services. However, until recently travel agencies have been reluctant to take lavish advantage of the ICTs, mainly due to a limited strategic image deficient ICTs e xpertise and understanding low profit margins which prevents investments and focus on human interaction with consumers. thither are effectively 5 major multitudes- 1. Amadus IT group- vacation. com, opodo, travel tainmemt 2. Expedia group- expedia. com, hotels. com, anyway. com 3. Orbitz group- orbitz, cheaptickets, hotel club 4. Priceline group- priceline. com, booking. com, active hotels 5. Sabre group- travelocity. com, world choice travel suit of clothes STUDY 1 ICT-DEPLOYMENT AT THE LOW-COST CARRIER RYANAIR, IRELAND hoistThe innovative use of information technology for online booking, e-ticketing and internal communications united with relentless improvements in cost containment, operating efficiencies, route system expansion and scheduling enables Ryanair to achieve increased passenger traffic and report the silk hat customer service performance in its peer group class. show window STUDY FACT SHEET Full name of the company Ryanair localization principle (HQ/main branc hes) Dublin, Ireland, with operations in most of Europe Sector (main business activity) Low cost air travel Year of foundation 1985 account of employees about 2,700Turnover in last financial stratum 1. 3 billion Primary customers Business and Leisure Travelers Most significant geographic market Europe Focus of case ask e-Ticketing Key actors linee-Ticketing, online booking, weave check-in, low cost airline OBJECTIVES Ryanair has achieved annual increases in passenger traffic each year since 1995. Projections are for 35 million passengers in 2006, increasing to an estimated 42 million in 2007. Ryanairs objective is to reprise passenger volumes and revenue by 2012. It currently (July 2006) operates a fleet of 107 Boeing 737-800s and get out buy 142 more of these aircraft over the next 6 years.This pick up outlines the currently evolving e-business capabilities in place to address these growth areas and achieve the desire for doubling targets. ONLINE BOOKING Online booking via the internet commenced in earnest after the launch of the www. Ryanair. com web site in 2000. Over 98% of the 27. 5 million passenger seats in 2005 were sold via the internet. This percentage figure is consistent year on year, and is expected to continue at this high level. The online booking system gives Ryanair the capability to introduce innovative practices to ensure that the individual customer has greater control over their fare costs.E-TICKETING CHECKNGO officially launched in 2006, Ryanairs e-Ticketing CheckNGo service enables passengers to check-in online within three days prior to the proposed flight and up to 4 hours before take-off. Using a pre-printed e-boarding card from their home or office computers, passengers can a strike down the airport check-in desk and go directly to the warrantor gates with a maximum of one piece of hand baggage. boost passengers to travel with less checked-in luggage also means faster queues for those who check-in at the airport desk.INTE RNAL COMMUNICATIONS As Ryanair expanded crossways Europe, in addition to their well known customer facing web pages, Ryanair has implemented a web-based internal communications system used by flight crews, charge staff and ground staff. For instance, a record is unbroken of the various components in each aircraft and a tickler schedule for their maintenance and/or replacement. The intranet system has also saved on tangible costs, including paper and printing costs. DYNAMIC PACKAGING AND OTHER ANCILLARY REVENUE SOURCESRyanair drives more sales and increased revenue via the dynamic packaging of flights with discounted hotel rooms and can buoy of the range car rentals. In addition after selecting their flights, all travelers are strongly encouraged via the online payment process to take out travel insurance. Another option provided via Ryanairs homepage at present is to click through to another suppliers web site such as activitybreaks. com to buy their products. CONCLUSIONS AND LE SSONS LEARNED The adoption of e-ticketing and internal e-business systems has enabled this low cost carrier to keep operational running costs well in-check.For the financial year ended March 31, 2005 their share accounted for 16% of total revenues, compared to 15% for the previous year. Ryanair is consistently the European leader in LCC. In addition, due to the stripped in-house administration costs, Ryanairs low-cost-flights business marketing model includes frequent give-away flights as well 23% of its tickets were given away in 2005, and half of all flights are slated to be free within the next 4 years. CASE STUDY 2 E-TICKETING AT SN BRUSSELS AIRLINES, BELGIUM This case study highlights the benefits of e-ticketing.After IATA was commitment to discontinue the distribution and processing of paper tickets by December 2007. SN capital of Belgium decided to focus on e-ticketing in order to cut operating costs and generate extra stratagem to passengers. Apart from lower cost and incr eased operation efficiency, e- ticketing allowed the airline to intone its market position by a more intensive use of alliances and cut back dependency on intermediaries. BACKGROUND SN Brussels Airlines is a full-service Belgian airline company founded in 2002 by a group of Belgian investors who acquired some assets of the ankrupt Sabena airline. SN Brussels Airlines is the only full service airline that operates from Brussels and is the market leader at Brussels Airport. It operates around 285 flights per day to various destinations in USA, Africa & Europe and 3. 5 million passengers carried per year. It has around 2000 employees in Belgium & abroad. OBJECTIVES SN Brussels Airlines has developed an interesting business theory of offering fully serviced flights, as offered traditionally by the established airlines, with the utmost possible fare to compete with the low cost carriers. The airline aims to get both the demanding business travelers with tight schedules but expectin g value for money and parsimony travelers who are sensitive to prices This lead to high airline occupancy and the airline registered profit for 3 years despite unfavorable conditions. ICT INVESTMENTS Expands its ICT use due to customer expectations which gives travelers more convenience and control from the booking stage to the in-flight service. It invested in passenger technologies analogous e-ticketing, online check in services to reduce the cost. ICT developments like e-ticketing and own website/booking engine enable the airline to strengthen its sign awareness, get direct access to its customers and, consequently, reduce the dependency on Central Reservation Systems (CRS) and Global Distribution Systems (GDS). E-BUSINESS SERVICES SN Brussels internet site (www. flySN. com) is a major part of the companys e-ticketing infrastructure it is easy and allows for an easy search and compilation of travel offers. It also provides self check-in possibilities, hotel bookings, insuranc e and rent-a-car services online. E-tickets are also available through call centre on all routes in the network and through GDS used by travel agents. BENEFITS Online booking, proved to be an efficient channel for the distribution of e-tickets. In May 2002 only 38% tickets were sold online whereas in September 2006, 63% of own sales were conducted via its own booking engine. The e-ticket uses a database to track the sale and use of tickets. All subsequent ticket transactions, including refunds, exchanges, check-in, void and settlement, involve this holding database this reduces chances of fraud and eliminates the problem of lost ticket. It also reduced the cost of documentations. SN Brussels Airlines e-ticketing solution allows for seamless link up with external partners by forming alliances and developing the so-called interlining system that allows passengers to have one ticket for a complete travel itinerary with different travel segments from several airlines. Passengers have th en only one set of tickets for a multi-operator trip and benefit from having their luggage checked right through to their destination LESSON LEARNED This case study illustrated the use of e-ticketing at SN Brussels Airlines.The e-ticketing system did not only enable the airline to reduce operation costs and increase efficiency, but also helped to achieve strategic advantages which have further strengthened its market position. In particular, the applied e-ticketing technology facilitates the mental institution of alliances with other airlines. This, in turn, allows for a more efficient utilization of shipping capacities and access to a larger number of customers. Furthermore, e- ticketing combined with the development of direct online sales channels reduces the dependency on intermediaries and decreases the payments to CRS/GDS.FUTURE OF E-TOURISM The Internet and spry communication devices are three most significant ePlatforms that will help change the future of tourism. The Inter net will allow more throng to access high quality information quickly and with minimum inconvenience. It also gave the possibility to purchase travel products on-line. In addition, it generated great service expectations, as consumers anticipate to be served on a 24hours/365days basis and at their own convenience. Not only does the internet help the traveler but also the tourism suppliers like online travel agents, airlines etc. The trend towards the use of quick communication devices is mostly determined by the commodification of mobile phones in the gone few years, coupled with an increasing need to be able to fix information while on the move. For example, business travelers can receive information on arrivals and departures as well as check-in through their mobile phone for a number of airlines. On-line Internet supplying is not sufficiently developed for those areas conventional telephone can also be used, a traveler may call a call center to confirm their bookings or ask queries.Importance of GDS and CRS in Travel & Tourism Industry Computer reservations systems (CRS) have become critical instruments in the marketing and distribution of travel and tourism products and services. New systems have recently been developed in Western Europe, while the Asian and Pacific regions are in the process of establishing their own systems. A central reservation system represents a computerized system used for both storing and distribution of information. We could be talk about a hotel, a hotel chain, a resort or any other type of lodging facilities.The CRS can also be used for checking up different details about flights or seat availability. pile may tend to confuse CRS with GDS (Global Distribution System) because of their similar functionality. However, there is one important difference between these two applications. Central reservation systems are web applications exclusive for each company or hotel. On the other hand, a global distribution system is used by various travel agents for booking reasons, as they cannot access CRS. CRS contains important information such as hotel accommodations, activity bookings, flight schedules or even holiday packages.There is almost no need for a travel agent as you could simply arrange your reservations over the Internet. Most hotels and travel agencies have their own websites for presenting their rates and offers. Websites can also be used together with various CRM software in order to strengthen the existent client relationships. Reservations are processed within a centralized location that is also obligated with availability management. Rates retrieval and reservations are made as expeditiously as possible. Hotels will benefit from better yield management and will also reduce other costs as web bookings will not be done anymore through third parties.