internet and tourism managemen · internet and tourism managemen t. prof. (fh) mag. christian...

Internet and TourismManagement

Prof. (FH) Mag. Christian Maurer

Prof. (FH) Mag. Christian Maurer

Prof (FH) Mag Christian Maurer has more than 15 years experience in the fields of e-tourism and e-marketing and is best-described as an active and passionate teacher and researcher who is consistently striving for innovation and implementation of new approaches and tools in tourism development. In 2013 Christian initiated the now-annual International Student Conference in Tourism Research (ISCONTOUR).Following studies at the University of Vienna in Austria and the University of Hull in England, Christian has been a full-time Professor at IMC University of Applied Sciences Krems Austria, since 2005. Before he worked for the Austrian National Tourism Organisation in Vienna as Head of Information Management. He is well-published and has presented at numerous international conferences and workshops.

Copyright: Mag. Christian Maurer 2


Learning Objectives• To establish an understanding for the benefits and shortcomings of ICT in

the tourism industry.• To recognise changes and current trends that drive e-Tourism.• To be able to categorise online channels utilised in tourism and to gain an

overview how tourism businesses and organisations can leverage Information and Communication Technologies (ICTs).

• To explore how ICTs can be used for customer acquisition and retention• To understand the roles and business strategies of the stakeholders in the

e-Tourism industry.• To assess the impact of e-Tourism on hospitality & catering, transportation,

travel trade and destinations.• To explore and compare different types of travel websites, web

applications and web services and their critical success factors.• To discuss the advantages and disadvantages of various business models

and revenue models for e-Tourism and e-Commerce.• To understand how email marketing can be used for customer relationship

marketing.• To understand the importance of search engine marketing for increasing

online visability and findability.• To explore mobile technologies and their importance for marketing.


Course Outline e-Tourism Management

1. The Scope of E-Tourism2. E-Tourism Market / E-Tourists3. E-Business Models4. E-Hospitality5. E-Destinations6. E-Mediaries7. Search Engine Marketing8. Email Marketing9.Mobile Tourism 10.Conclusions

1. The Scope of e-Tourism

(Source: http://m.c.lnkd.licdn.com/mpr/mpr/p/3/005/0ab/30d/3ab87a1.jpg)


http://m.c.lnkd.licdn.com/mpr/mpr/p/3/005/0ab/30d/3ab87a1.jpg)

e-Tourism Application Domains

Interdisciplinary Field:Business

Management Marketing Finance

• Computer sciences• Social sciences• Psychology• Law• Communication

sciences• …

(Based on: Buhalis, D., 2003)

Tourism Transportion Travel Trade Hospitality

Leisure Heritage

ICTsInformation

systemsICTs

Telecom

E-Tourism


ICTs as Competitive Advantage

"I think there is a world market for maybe five computers." (1943)

Thomas J. Watson (1874-1956)


e-Tourism is here – What‘s next?

(Video source: http://www.youtube.com/watch?v=cL9Wu2kWwSY)


http://www.youtube.com/watch?v=cL9Wu2kWwSY

Back to the Future?

(Sou

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Back to the Future?

(Sources: http://www.staticwhich.co.uk/media/images/in-content/apple-ipad-multi-touch-screen-236984.jpg, http://cdn.iphonehacks.com/wp-content/uploads/2014/10/microsoft-smartwatch.jpg)


http://www.staticwhich.co.uk/media/images/in-content/apple-ipad-multi-touch-screen-236984.jpg

http://cdn.iphonehacks.com/wp-content/uploads/2014/10/microsoft-smartwatch.jpg)

Passive Media Consumption

11(Source: http://www.agentmarketing.co.uk/wp-content/uploads/2015/07/parents-with-three-children-watching-television.jpg) Copyright: Mag. Christian Maurer

http://www.agentmarketing.co.uk/wp-content/uploads/2015/07/parents-with-three-

From Passive to Active Media Usage

12(Source: http://cdn3.historyextra.com/sites/default/files/imagecache/623px_wide/Home%20computer%20-%20main%20%202.jpg) Copyright: Mag. Christian Maurer

http://cdn3.historyextra.com/sites/default/files/imagecache/623px_wide/Home%20computer%20-

Lean Back Modus – Active Consumption

13(Source: http://www.maclife.de/ipad/hardware/Ckinodplyer-iwgehrtb: eMsapogt.-mCahcrihstt-isaicnhM-uaeubreer-rdas-ipad-lustig)

http://www.maclife.de/ipad/hardware/Ckinodplyer-iwgehrtb

Mobile Modus(S

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http://www.flickr.com/photos/misbehave/2352753067/)

Integrated Modus


Type – Drag - Touch

Copyright: Mag. Christian Maurer 16(Source: Morgan Stanley, 2008)

Influencing ICTs in e-Tourism

17Copyright: Mag. Christian Maurer

2010ff

19

(Sources: http://i.telegraph.co.uk/multimedia/archive/03393/googleglass_3393179b.jpg, http://phandroid.s3.amazonaws.com/wp-content/uploads/2012/11/Sony-SmartWatch.jpg, http://i2.cdn.turner.com/cnnnext/dam/assets/C1o5p02yr0ig5h1t0:1M7a0g5.-jCapharins-triaonboMt-ahuorterl-front-desk-super-169.jpg)

http://i.telegraph.co.uk/multimedia/archive/03393/googleglass_3393179b.jpg

http://phandroid.s3.amazonaws.com/wp-content/uploads/2012/11/Sony-SmartWatch.jpg

E-Tourism Management

• Information is the lifeblood of tourism (Pauline Sheldon, 1997).

• Communication is the activity of conveying meaningful information.

(Source: http://www.briansolis.com/wp-content/uploads/2008/07/direct_communication_marketing.jpg)


http://www.briansolis.com/wp-


What is e-Tourism?

„digitalisation of all value chains in the tourism, travel, hospitality and catering industries.

… it includes eCommerce and applies ICTs for maximising the effectiveness and efficiency of the tourism organization.“

(Dimitrios Buhalis, 2003)

„ design, implementation and operation of eCommerce solutions (ICT) in the travel & tourism industry, and analysis of the respective economic processes and market structures.“

(Hannes Werthner, 2004)

e-Tourism - Demand & Supply

Suppliers / ProvidersTourists / ConsumersICTs

Communication

Data Management

Online Distribution


e-Tourism Value Chain

before the journey

during the journey

after the journey

suppliers

mobile, information data terminals, booking automat, …

Virtual Communities

Travel websites, search

engines, mobiles, Navi, VC


2. E-Tourism Market and Characteristics of E-Tourists

(Source: http://www.townme.com/boston-ma/Top-boston-tourist-attractions/image_qsGEEl-2o8SPc_u-7xGOeGjEvk/tourists.jpg)


http://www.townme.com/boston-ma/Top-boston-tourist-attractions/image_qsGEEl-

Economic Cycles and Demand Trends in Tourism

(Source: WEF. The Travel and Tourism Competitiveness Report 2015)


Global Travel Sales


Online Travel Market

(Source: own illustration, based on eMarketer, 2012)


Travel Industry Stakeholders

ConsumerTravel Agent

Tour OperatorNTO GDS / CRS

InternetSwitch

Incoming Agent

CRSArea / Local DMO

RTO

Transportation

Supplier at destination

(Source: own illustration, adapted from: Werthner & Klein, 1999; Buhalis 2003)


OTA Travel Market

• Total number of bookings through Online Travel Agencies (OTAs) increased by almost 20% from 2010 to 2011. GB to account for the largest share in 2013, followed by Germany and France

• Trend towards concentration:– top five pan-European OTAs – Priceline / Booking, Expedia,

Lastminute, Ebookers and ODIGEO – account for over 60% of European OTA bookings;

– in the USA the top 4 (Expedia, Priceline, Orbitz, Travelocity) 95%; 4 out of 5 European agencies bought by US companies=> Winners take it all!

• Read: The Evolution of Online Travel:http://mashable.com/2012/02/21/online-travel-infographic/


http://mashable.com/2012/02/21/online-travel-infographic/

3.3 Billion Internet Users


Internet Penetration


Digital Divide• Information society is characterised by extended social

inequalities caused by different levels of access to information

• Importance of digital information in tourism disparities in access and use of ICTs on supply and demand side leads to digital divide asymmetrical development of the tourism industry

• Reasons for digital divide:– Economic– Technical– Political– Demographic– Cultural

32(Source:

Copyright: Mag.hCtthpr:i/s/sti1a3n2M3.apuhroetrobucket.com/user/gachchy/media/se paration_zpszag5pox5.jpg.html)

Customer Journey


New Type of Customers

fromconsumers

to

prosumers

fromconsumer oriented

to

consumer driven (Iso

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Tourism Customer Journey

interest, dreams Planning, storiesreturning

sharing

buyingE2 = MC

reflecting, matching

staying, experiencing


3. E-Business Model Development

(Source: http://thumbs.dreamstime.com/x/shopping-cart-operated-computer-mouse-symbol-e-commerce-design-information-related-to-internet-50343562.jpg)


http://thumbs.dreamstime.com/x/shopping-cart-operated-

Developing an e-Business Model

• Value proposition– why should customers buy from you?

Personalisation / customisation Reduction of product search costs Reduction of price discover costs Facilitation of transactions by offering online booking

• Revenue model– how will you earn money?

Advertising revenue model Subscription revenue model Transaction fee revenue model Sales revenue model Affiliate revenue model


Advertising Revenue

• Flat rate• CPM• CPC, CPA

(Sou

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Subscription Revenue

(Source: www.phocuswright.com)


Transactions Revenue

(Source: www.booking.com)


Sales Revenue

(Source: www.tirolshop.com)


Affiliate Revenue

(Source: own illustration)

Affiliate networks (i.e. affiliate brokers) can be used for finding affiliate partners, tracking clicks and arranging payments , e.g. Trade Doubler (www.tradedoubler.com), Trade Tracker (www.tradetracker.com), or Commission Junction (www.cj.com)



E-Business Model Key Elements

• Market opportunity– what marketspace do you serve and what is its size?– Realistic market opportunity = revenue potential in each

of the market niches in which you hope to compete (e.g.single travelers, online bookers etc.)

• Competitive environment– who are the competitors in your marketspace?

Number and size of competitors Market share of each competitor Profitability of the competitors Pricing strategies of competitors for their products



• Competitive advantage– special advantages to the marketspace?

First mover advantage - being first into a marketplace (e.g. Magic Life)

Cost leadership (e.g. HRS.com) Technology leadership (e.g. Microsoft, Google)

• Market strategy– how do you promote products to attract your target

audience (i.e. Marketing mix)?– Best business concept or idea will fail if not properly

marketed to potential customers

Marketing Mix - from 7 Ps to 7 Cs

7 Ps 7 CsProduct Customer Needs

Price Costs for customer

Place Channel

Promotion Communication

People Caring

Physical Evidence Confirmation

Processes Coordination




• Organisational Development what organisational structures are needed to implement

the business model? eBusiness strategy is typically divided into functional

departments (e.g. R & D, IT, Marketing, Sales)

• Management Team experiences and background needed? Strong management team gives credibility to outside

investors (and customers)

Integrated e-Strategy Development

Business Processes

Content Creation and Maintenance

Competitor Analysis

CustomerAnalysis

Product Development

Website Promotion

Alliances / ePartnerships

Visitors / Revenues / Image Growth

(Source: Maurer, C., In: Tourism Review, Feb 2007, p. 42)Copyright: Mag. Christian Maurer 47


Recommended Literature• Camilleri, M.A. (2018). Travel Marketing, Tourism Economics and the Airline Product. An Introduction to Theory and

Practice. Berlin: Springer.

• Chaffey, D., Ellis-Chadwick, F. (2019): Digital Marketing. Strategy, Implementation and Practice.

Hallbergmoos: Pearson Deutschland.

• Charlesworth, A. (2018). Digital Marketing. London: Taylor and Francis.

• Correia, A., Kozak, M., Gnoth, J., Fyall, A. (Eds.) (2018). Co-Creation and Well-Being in Tourism. Berlin: Springer.

• Dredge, D., Gyimóthy, S. (Eds.) (2018). Collaborative Economy and Tourism. Perspectives, Politics, Policies and

Prospects. Berlin: Springer.

• Egger, R., Gula, I., Walcher, D. (Eds.) (2018). Open Tourism. Open Innovation, Crowdsourcing, Co-Creation and

Challenging the Tourism Industry. Berlin: Springer.

• Fesenmaier, D., Xiang, Z. (Eds.) (2018). Design Science in Tourism. Foundations of Destination Management.

Berlin: Springer.

• Internet World Stats. In: www.internetworldstats.com, 22.11.2019.

• Laudon, K. C., Traver, C. G. (2019). E-Commerce 2019: Business, Technology and Society, 15. Ed. London: Pearson.

• Near Field Communication Forum. In: www.nfc-forum.org, 22.11.2019.

• Schulz, A., Eisenstein, B., Gardini, M.A., Kirstges, G., Berg, W. (2020). Grundlagen des Tourismus.

Berlin: De Gruyter.

• Stauss, B., Seidel, W. (2019). Effective Complaint Management. The Business Case for Customer Satisfaction.

Berlin: Springer.

• Xiang, Z., Fesenmaier, D. (Eds.) (2018). Analytics in Smart Tourism Design. Concepts and Methods. Berlin: Springer.

http://www.internetworldstats.com/

http://www.nfc-forum.org/

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