The Tourism and Travel Services - Essay Example

?Tourism as a socio-economic activity is continuously being determined by the comparison of prices between different suppliers of the tourism products and services. This mostly occurs over the internet as the new mode of information dissemination. The resorting to internet for tourism and travel marketing is because of the many advantages that comer with it. To properly use the internet for tourism and travel activities, it is important that the players in this field understand the challenges that affect tourism at the moment and the future, for example, the trends that dictate demand and supply, the evolving external environment and the need to improve capacity of tourism organizations so that they are responsive to the demands of the diverse interests it serves. Tentative research show that the use of the internet for marketing purposes can make the operators of tourism and travel services easily bridge this gap between the suppliers and the consumers. As already previously discussed, tourism is reliant on a cycle known as the travel cycle, which entails dreaming, researching, booking, experiencing then sharing of the experience (Leigh et al 2013, p.90). The dreaming stage of the traveller or the tourist occurs at the preliminary stages mostly when the potential tourist or traveller uses the internet to look for the most affordable and reliable means of travel by reviewing web pages or videos that ultimately inspires him to want to travel. The consumer then researches and narrows down on his travel options through the making of requests through queries. This is the most important stage for the future successful tourism or travel supplier as it enables the collection and evaluation of the path that determines the path and the power of the tourist or traveller towards purchasing. Knowing what is likely to happen in the future fascinates each and every man kind and tourists are no exception (Yeoman 2012, p.1). In tourism circles this is significant in the sense that it helps us understand tourism from a sustainability point of view as the industry players that is the tourism and travel suppliers become more prepared and find out the best answers to challenges that are likely to be met in future. The importance of future tourism is intertwined with that of the travel agencies especially those that are internet-based. Tourism experts agree that the internet is an important factor in the distribution and communication of services and products to the global market and eventually all players in this field may be forced to embrace the internet as a means of marketing for the services. Despite this, others argue that the internet will not automatically make the travel agencies dispensable as there are still consumers who insist on the personal touch that may be offered by physical agents as the information supplied needs to be in a continuous manner. The internet as a tool used for marketing is therefore complementary to the physical tourism and travel agent (Palmer and McCole 1999, pp.33-47). Other researchers look at the relevance of the internet based travel agencies as merely to reduce cost by eliminating the intermediaries who increase the total costs incurred in procuring a travel or tourism service or product (Barnett and Standing 2001, P.143). The travel industry and the tourism industry is therefore a major user of the internet that needs to constantly seek new methods of improving the services and products offered to consumers in order to fit in the current and future trends in marketing. Rationale The revolution of the internet is applicable in all aspects of the public especially those wishing to travel. This calls for traveler and tourism suppliers to investigate what motivates consumers of the tourism and travel services to go into the internet to shop or buy products and services online. The reason for the increased uptake of internet in the marketing of travel products can be attributed to factors such as the ability of one to have one-to-one marketing and can support an interaction between the marketer and the consumer. The fact that internet marketing is virtual in nature makes it accessible during the whole year and it is dynamic in the sense that changes on the product or the service can be changed to suit the consumer at an instant. Online marketing can also reduce the expenditures associated with handling of reservations. The World Tourism Organization state that the key to succeeding in the often competitive tourism and travel world lies in faster empathy of the consumers’ wants and getting the persons who seem to be prospective customers with complete and personalized information (Buhalis 1998, P.3). Due to the growth of the number of tourists worldwide and their increasing needs, these consumers of tourism products and services continue to demand for high quality products and services in exchange for value for their money. The internet platform provided by information technology comes in handy to bridge this gap as the consumer who seeks information on the internet is always impatient to put up with delays in the procuring of services and products. Travel and tourism industry is at a crossroads due to the reduction of mass tourism and the emergence of demand for personalized services and products. This can be partly attributed to change in values or lifestyles and the demographics involved that makes it different from previous mass tourism ways. The question that begs to be answered is how the new trends accompanied with technology has been made relevant in line with the re-engineering of tourism products and services that suit the needs of the contemporary modern tourist (Poon 1993, p.158). Does technology play any role in the reshaping the value chain in communication and distribution of services and products? Different estimates have shown that most of the products and services procured over the internet emanated from travel purchases over the internet. In the USA it is about 50% of the purchases while in Europe the figure is undergoing immense growth. These services are mainly tourist packages and services that due to their nature of intangibility and being international in character, the internet becomes the best tool for their growth. The potential of the internet as an infrastructure for the travel industry and tourism services and product dissemination cannot therefore be ignored. As already confirmed that the internet is an excellent tool for communication if properly used, the tourism marketer may apply it to overcome strategic challenges that it may face. This includes the reduction of the risks associated with demand in that travel suppliers may be put in difficult situations as to the demand of services or products that are in tandem with the needs of the consumer. Marketing over the internet enables the consumer to solve risks that are related to inefficiency of failing to achieve or reach unit costs of the market related to marketing, distribution, administration that has got the effect of increasing the profit margins of a travel agency (Walle 1996, p.72). In a world or business enterprise characterized by extreme competition especially in the provision of services and products, the ability of the internet to provide a one-to-one marketing makes it the most preferable means of marketing as it customizes the products to meet the needs of the consumer, what is known as product differentiation. Research has shown that when product differentiation is conducted through the application of internet in marketing, the price becomes irrelevant for the consumers thus increasing their loyalty while at the same time decreasing the costs of production for the supplier. The internet when used as a way of marketing by tourism and travel suppliers enables them know the understanding of individual customers and then delivering the product or service as it fits the needs of the consumer. This is achieved by integrating the production process employed by the firm and the preference needs of the customer. Firms therefore must strive to know the individual profile of the consumers in order to achieve one-to-one marketing. The fusion of information technology in the dissemination of tourism and travel products or services may help in the reshaping the nature of competition. By adopting information technology, firms are able to establish barriers of entry thus differentiate their products and services from those of competitors. This has got the overall advantage of ensuring competitive pricing and decreasing the costs of supply while at the same time making it easy to supply. The tour operators and the travel agencies are also able to build closer relationships with suppliers and customers. Therefore, internet can be used by travel and tourism suppliers to gain competitive advantage over other players offering the same product and services while at the same time improving productivity and the performance in roping in new customers. The information technology may also be used to facilitate new and viable ways of management and organization leading to development of new businesses. An apparent example in the re-engineering of tourism to suit the needs of the future in relation to the internet is the online booking process that enables consumers to save on time costs by easily identifying, amalgamating their demands with the service or product on offer, reserving then purchasing them through the internet (Buhalis 1998, P.18). Conclusion As mentioned before, the changes in the value chain of tourism and travel product and services marketing, there is the urgent need for management of destinations in order to make them more competitive. The information technology employed must possess the ability to collect and collate data and analyze the tasks assigned in order to give the manager of the destination information that is useful in the making of decisions (Christian 2001, pp.170-178). In order for companies to succeed in the satisfaction of demand, technology must be incorporated to enhance interactivity in the market place. This is because information technology applied in the tourism and travel market enables the travelers to access accurate and reliable information in order to reserve products and services in the shortest time possible which makes it less costly and convenient. As already proved that customer satisfaction depends on the veracity and comprehensiveness of the information on facts such as the accessibility of destinations, facilities available and the attractions on offer, it is important to make use of the internet to minimize surprises that may be met by the traveler. Information technology therefore facilitates the satisfaction of the needs of the consumer as the consumers have more information that enables them have a variety of choices to choose which one suits them. The internet also reduces the bureaucracy associated with paper work saving on costs associated with time. It also enables the customization of products and services to suit the needs of the customer as one-to-one marketing is achieved (Law 1998, pp.83-87). A thorough revision of the strategic managerial and operation practice employed by tourism industry players is important in order to reap the full benefits of distribution and communication over the internet between suppliers and consumers. Failures to appreciate the benefits that come with the use of information technology by industry players can reduce have the effect of marginalizing the players in these fields. This would require tourism and travel suppliers to competently understand, incorporate and utilize information technology strategically to reach the target markets. This in turns improves efficiency thus maximizing profitability. It is imperative to note that the future success of tourism organizations and destinations will be dependent on the combination of innovative management through proper marketing through intellect and vision in the strategic use of information technology (Olmeda and Pauline 2001, pp.1-20). One way in which travel agencies and tourism employers have effectively employed the use of information technology is the Computer Reservation System (CRS) which have been used especially by airlines for distribution and communication of information. It is some form of data base that manages the inventory of a tourism enterprise while at t e same time endeavors to distribute the information remotely to other travel agencies and different sales offices. CRS’s have enabled the suppliers of tourism and travel products to control and promote the sale of their products and services worldwide while at the same time yield management. This has got the long-term effect of improving profitability and growth of businesses. The CRS’s are priced competitively as compared to other forms of distribution of similar products and services as they enable flexible pricing and alterations to capacity that can adjust to changes in demand and supply. The CRS’s also provide important information that can be used to gauge the demands of consumers and know the standing of a company in relation to its competitors. The effect is the overall contribution to the operational and strategic management of the tour and travel industry products and services. Travel and tourism suppliers may also adopt the Global Distribution Systems (GDSs) have the advantage as compared to the CRSs in that they cover wider geographical area by integrating horizontally with other airlines and vertically by bringing on board other tourism products and services for example accommodation, provision of car rental and entertainment amongst others. The GDS system has succeeded in the connection of several tourist organizations or product and service providers in the world thus bringing into uniform the standardization processes thus enabling a considerable market share. Therefore GDS has been the system for circulation of products and services through the establishment of a worldwide communication typical, new and reliable tourism automated distribution channel. The efficiency and reliability of GDSs enables the suppliers of tour and travel products and services to distribute and manage their services globally through the bridging of the gap between the needs of the consumer and what the supplier can offer. Ultimately, GDS’s have been used to objectively increase the satisfaction of stakeholders in the tour and travel industry through the provision of superior products and services that has got the end result of maximizing profits and growth of business. However, experimental results still illustrate that tourists still use professional services offered by travel agencies as much as a substantial amount of information can be found over the internet. This therefore means even if we adopt the information technology, traditional information communication and distribution channels are still important. The travel intermediaries such as travel agents, tour operators are therefore still important players in this sector due to the perishability, intangibility of tourism products and services. Therefore, in order to achieve better services, there is need to integrate information technology in the fabric of destination marketing organization through advertising strategies that are coordinated in line with the mission and goals of the organization for effective results. The suppliers must strive to reconfigure the traditional advertising strategies to be in tandem with the emerging realities and trends for example the availability, interactivity and the capabilities of research (Samenfink 1999, pp.67-73). Bibliography Barnett, and Standing. 2001."Repositioning Travel Agencies on the Internet." Journal of Vacation Marketing. 7.2: Print. Buhalis, D. 1998. ``Strategic use of information technologies in the tourism industry’’, Tourism Management, Vol. 19 No. 5. Christian. 2001. "Developing an Online Access Strategy: Issues Facing Small to Medium-Sized Tourism and Hospitality Enterprises." Journal of Vacation Marketing. 7.2. Law, R. 1998.``Internet in travel and tourism Part I’ ’Journal of Travel & Tourism Marketing, Vol. 9 No. 4. Leigh, J., Craig W. and Stanislav, I. 2013. Future Tourism: Political, Social and Economic Challenges. Abingdon, Oxon: Routledge. Olmeda, I and Pauline, S. 2001. 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