TTM 345

E-tourism

TU BTTM · Semester 4 · Recent BTTM syllabus series

Requirement
required
Credits
3
Study Guide
7 units available

Chapter notes

Authoritative study guide across 7 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction· 6 LHs· ~8 marks

Pass path: Master definitions of E-Tourism Buhalis, Information-Intensive Product, and Computer Reservation System CRS in Part 1. Top path: Diagram E-Tourism Technology Architecture & Middleware Stack, contrast Disintermediation vs Re-Intermediation in Part 3, and solve the 10-Mark Analytical Breakdown: Why Travel is Uniquely Dependent on ICT ladder in Part 4.

Part 1: Core Concepts (2 Marks)

  • ★ E-Tourism (Buhalis): The digitalization of all processes and value chains in the tourism, travel, hospitality, and catering sectors to maximize enterprise efficiency, enhance customer value, and optimize distribution.
  • Information-Intensive Product: Tourism is an intangible, perishable confidence good that cannot be physically inspected, sampled, or returned prior to consumption; therefore, high-quality, rich information acts as the physical surrogate for the actual product.
  • Computer Reservation System (CRS): Early internal electronic inventory databases developed by major airlines in the 1960s (e.g., SABRE by American Airlines) to automate seat reservations.
  • Global Distribution System (GDS): Massive worldwide computer networks (Amadeus, Sabre, Travelport) that consolidate and distribute inventory from multiple airlines, hotels, car rentals, and tour operators to travel agents globally.
  • Disintermediation: The elimination of traditional middlemen (physical retail travel agencies) as airlines and hotels sell directly to consumers online.

Part 2: Structural Frameworks (10 Marks)

E-Tourism Technology Architecture & Middleware Stack

E-Tourism Technology Architecture & Middleware Stack
E-Tourism Technology Architecture & Middleware Stack

Tourism Supply Chain Transformation Architecture

  1. TRADITIONAL VALUE CHAIN (Pre-Internet)
    • [ Hotel / Airline ] ---> [ Tour Wholesaler ] ---> [ Retail Travel Agent ] ---> [ Consumer ]
    • (High commission markups; paper tickets; slow physical brochures)
    • v (ICT Disintermediation Wave)
  2. DIRECT E-COMMERCE MODEL
    • [ Hotel / Airline Website / App ] ===========================================> [ Consumer ]
    • (Zero agency commission; real-time dynamic pricing; direct loyalty accrual)
    • v (Information Overload & Search Fatigue)
  3. RE-INTERMEDIATED VALUE CHAIN (Modern Era)
    • [ Hotel / Airline ] ---> [ GDS / Switch ] ---> [ OTA (Booking/Expedia) ] ---> [ Metasearch ] ---> [ Consumer ]
    • (High OTA commission 15-25%; massive global convenience and aggregated reviews)

Strategic Impacts of ICT on Modern Tourism:

  1. Operational Efficiency: Paperless e-ticketing, self-service airport kiosks, mobile QR boarding passes, and automated hotel check-ins reduce operational overheads.
  2. Dynamic Pricing & Revenue Management: Machine learning algorithms adjust room and seat prices hundreds of times per day based on real-time demand velocity.
  3. Consumer Empowerment: Travelers access peer reviews, satellite mapping, and fare comparison tools, dismantling the information monopoly once held by travel agents.

Part 3: Distinction Tables

Basis of Comparison Disintermediation Re-Intermediation
Mechanism Cutting out intermediaries to sell directly from producer to consumer Emergence of new electronic intermediaries replacing traditional physical agents
Key Platforms Airline websites (flynepal.com), hotel brand booking engines Online Travel Agencies (OTAs), metasearch engines (Skyscanner, Trivago)
Commission Impact Saves the 10–20% commission fee; retains direct customer data Enterprise pays substantial digital merchant fees (15–25% to OTAs)
Market Reach Primarily captures loyal repeat visitors and direct brand searchers Massive global reach capturing price-sensitive, undecided international travelers

Part 4: Worked Problems & Exam Traps

★ 10-Mark Analytical Breakdown: Why Travel is Uniquely Dependent on ICT

  • Intangibility: The traveler cannot ‘test drive’ a 14-day Annapurna trek. High-definition 360-degree virtual tours, drone videos, and live webinars act as the proxy sensory experience that builds purchase confidence.
  • Perishability: An unsold airline seat or empty hotel room on September 19 is lost revenue forever. Real-time ICT distribution enables flash sales, dynamic packaging, and opaque pricing (e.g., Hotwire, Priceline) to liquidate distressed inventory.
  • Inseparability: Production and consumption happen simultaneously. Mobile apps empower the traveler to modify itineraries, book day excursions, and order meals on the fly during the trip itself.

TU Exam Trap: Do not claim that the internet completely eliminated travel agencies. The internet eliminated traditional paper-based brick-and-mortar ticket booking counters, but created massive new multi-billion dollar intermediaries (OTAs and Metasearch engines). This phenomenon must be correctly identified as Re-intermediation.

Students lose marks here because they claim that the internet completely eliminated travel agencies.