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Journal ArticleDOI

Progress in information technology and tourism management: 20 years on and 10 years after the Internet - the state of eTourism research.

01 Aug 2008-Tourism Management (Elsevier)-Vol. 29, Iss: 4, pp 609-623
TL;DR: A review of the published articles on eTourism in the past 20 years can be found in this article, where a wide variety of sources, mainly in the tourism literature, are used to comprehensively review and analyze prior studies in the context of Internet applications to tourism.
About: This article is published in Tourism Management.The article was published on 2008-08-01 and is currently open access. It has received 2672 citations till now. The article focuses on the topics: Tourism.

Summary (1 min read)

INTRODUCTION

  • Technological progress and tourism have been going hand in hand for years (Sheldon, 1997; Poon, 1993).
  • Since the 1980s, Information Communication Technologies (ICTs) have been transforming tourism globally.
  • Developments in ICTs have undoubtedly changed both business practices and strategies as well as industry structures (Porter, 2001).
  • It also provides managerial implications and dimensions whilst suggesting strategic and operational solutions for the industry.
  • Key references from mainstream journals were also included in the analysis.

CONSUMERS AND DEMAND DIMENSIONS

  • Increasingly, ICTs enable travellers to access reliable and accurate information as well as to undertake reservations in a fraction of time, cost and inconvenience required by conventional methods (O’Connor, 1999).
  • Due to the popularity of Internet applications, most tourism organizations such as hotels, airlines, and travel agencies have embraced Internet technologies as part of their marketing and communication strategies.
  • The reaction to online inquiries can thus influence customer satisfactions and booking behaviour.
  • ICT developments have proliferated the use of wireless applications and devices, including: Cellular phones and pagers; Global Positioning System; Cordless computer peripherals and telephones; home-remote control and monitor systems.
  • This implies a seamless environment of computing, advanced networking technology and specific interfaces which should be aware of the specific characteristics of human presence and personalities; adapt to the needs of users; be capable of responding intelligently to spoken or gestured indications of desire; and even result in systems that are capable of engaging in intelligent dialogue.

INDUSTRY AND BUSINESS FUNCTIONS

  • Gradually the importance and necessity of ICTs usage for both the strategic and operational tourism management is emerging in the literature (O’Connor, 1999; Inkpen, 1998; Marcussen, 1999a & 1999b).
  • ICT developments have direct impacts on the competitiveness of enterprises they determine the two fundamental roots to competitive advantage, i.e. differentiation and cost advantage (Porter, their efforts to improve service quality as ICTs enable organisations to dynamically differentiate and specialise their products and services.
  • The Internet has also enhanced the bargaining power of suppliers as it enabled them to monitor competitors and offer tailored and differentiated products.
  • Hence, the Internet propels the re-engineering of the entire process of producing and delivering tourism products, as well as it boosts interactivity between partners that can design specialised products and promotion in order to maximise the value-added provided to individual consumers.
  • The mass learning era employs networking and interactive capabilities of the Internet for developing virtual eLearning applications based on collaborative and constructivist instructions.

CONCLUSIONS AND FUTURE RESEARCH

  • The technological revolution experienced through the development of the Internet has changed dramatically the market conditions for tourism organisations.
  • Journal of the American Society for Information Science and Technology, 56(4), 364-372.

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Citations
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TL;DR: In this paper, the authors investigated the extent to which social media appeared in search engine results in the context of travel-related searches and found that social media constituted a substantial part of the search results, indicating that search engines likely direct travelers to social media sites.

2,531 citations


Cites background from "Progress in information technology ..."

  • ...The Internet has fundamentally reshaped the way tourismrelated information is distributed and the way people plan for and consume travel (Buhalis & Law, 2008)....

    [...]

  • ...…tourism will be focused on consumer centric technologies that will support tourism organizations in interacting with their customers dynamically (Buhalis & Law, 2008), this study provides useful insights into the new avenues tourism marketers need to pursue in order to achieve such a goal....

    [...]

Journal ArticleDOI
TL;DR: In this article, the authors reviewed the research contributions of innovation in tourism and identified the important determinants of innovation, including the role of entrepreneurship, technology push and the existence of territorial industry clusters.

1,228 citations


Cites background from "Progress in information technology ..."

  • ...Information and Communication Technology (ICT) has been the backbone of many process innovations in recent decades, and it has attracted a significant strand of research interest with its own agendas and institutions (Buhalis & Law, 2008)....

    [...]

  • ...However, the specific nature and effects in terms of marketing innovations are yet to be seen (Buhalis & Law, 2008; Schegg, Liebrich, Scaglione, & Ahmad, 2008)....

    [...]

Journal ArticleDOI
TL;DR: The paper defines smart tourism, sheds light on current smart tourism trends, and then lays out its technological and business foundations.
Abstract: Smart tourism is a new buzzword applied to describe the increasing reliance of tourism destinations, their industries and their tourists on emerging forms of ICT that allow for massive amounts of data to be transformed into value propositions. However, it remains ill-defined as a concept, which hinders its theoretical development. The paper defines smart tourism, sheds light on current smart tourism trends, and then lays out its technological and business foundations. This is followed by a brief discussion on the prospects and drawbacks of smart tourism. The paper further draws attention to the great need for research to inform smart tourism development and management.

1,114 citations


Cites background from "Progress in information technology ..."

  • ...This developmental trajectory continued with the widespread adoption of social media (Sigala et al. 2012), and a move towards realizing mobile tourism in recognition of the high mobility of tourism information and of tourism consumers (Buhalis and Law 2008; Wang et al. 2012)....

    [...]

Journal ArticleDOI
TL;DR: In this article, the role and use of social media in travelers' decision-making and in tourism operations and management have been widely discussed in tourism and hospitality research, and the authors reviewed and analyzed all extant social media-related research articles published in academic journals during 2007 to 2011.
Abstract: Being one of the “mega trends” that has significantly impacted the tourism system, the role and use of social media in travelers' decision making and in tourism operations and management have been widely discussed in tourism and hospitality research. This study reviews and analyzes all extant social media-related research articles published in academic journals during 2007 to 2011, mainly in tourism and hospitality fields. Based on a content analysis on the analyzed articles from both the consumers' and the suppliers' perspectives, this article found that consumer-centric studies generally focused on the use and impact of social media in the research phase of the travelers' travel planning process. Supplier-related studies have concentrated closely on promotion, management, and research functions, but few discussed product distribution. Research findings thoroughly demonstrate the strategic importance of social media for tourism competitiveness. This study also contributes to the academia and ind...

1,060 citations


Cites background from "Progress in information technology ..."

  • ...Alike other review studies in different research areas (e.g., Buhalis & Law, 2008; Jang & Park, 2011), this study only analyzed full-length articles published in refereed academic journals, mainly in the tourism and hospitality fields....

    [...]

  • ...In a review of 149 eTourism studies in a 20-year period from 1998 to 2007, Buhalis and Law (2008) exhibited the ubiquity and status quo of information technology in tourism marketing and management....

    [...]

  • ...The continuous development of information and communication technologies (ICTs) during the last decade has had profound implications for the entire tourism industry (Buhalis & Law, 2008)....

    [...]

  • ...…in tourism and hospitality were identified and gathered from Science Direct (http://www.sciencedirect.com), EBSCOHost (http://search.ebscohost.com), and Google Scholar (http://scholar.google.com.hk)—three of the largest and most popular online databases and search engines (Buhalis & Law, 2008)....

    [...]

References
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Posted Content
TL;DR: Porter as mentioned in this paper presents a comprehensive structural framework and analytical techniques to help a firm to analyze its industry and evolution, understand its competitors and its own position, and translate this understanding into a competitive strategy to allow the firm to compete more effectively to strengthen its market position.
Abstract: Michael Porter presents a comprehensive structural framework and analytical techniques to help a firm to analyze its industry and evolution, understand its competitors and its own position, and translate this understanding into a competitive strategy to allow the firm to compete more effectively to strengthen its market position. The introduction reviews a classic approach to strategy formulation, one that comprises a combination of ends and means (policies), factors that limit what a company can accomplish, tests of consistency, and an approach for developing competitive strategy. A competitive strategy articulates a firm's goals, how it will compete, and its policies for achieving those goals. Competitive advantage is defined in terms of cost and differentiation while linking it to profitability. Part I, "General Analytical Techniques," provides a general framework for analyzing the structure of an industry and understanding the underlying forces of competition (and hence profitability). Five competitive forces act on an industry: (1) threat of new entrants, (2) intensity of rivalry among existing firms, (3) threat of substitute products or services, (4) bargaining power of buyers, and (5) bargaining power of suppliers. Looking at industry structure provides a way to consider how value is created and divided among existing and potential industry participants. One competitive force always captures essential issues in the division of value.There are three generic competitive strategies for coping with the five competitive forces: (1) overall cost leadership, (2) differentiation, and (3) focus. There are risks with each strategy. A firm without a strategy is "stuck in the middle." This framework for examining competition transcends particular industry, technology, or management theories. Building on this framework, techniques are presented for industry forecasting, analysis of competitors, predicting their behavior, and building a response profile. Essential for a competitive strategy are techniques for recognizing and accurately reading market signals. Implications of structural analysis for buyer selection and purchasing strategy are presented. Game theory provides concepts for responding to competitive moves. Using the concept of strategic groups, structural analysis can also explain differences in firm performance (profitability), provide a guide for competitive strategy, and predict industry evolution. Part II, "Generic Industry Environments," shows how firms can use the analytical framework to develop a competitive strategy in industry environments, which reflect differences in industry concentration, state of industry maturity, and exposure to international competition. These environments determine a business's competitive strategic context, available alternatives, and common strategic errors. Five generic industry environments are examined: fragmented industries (where level of industrial concentration is low), emerging industries, transition to industry maturity, declining industries, and global industries. In each, the crucial aspects of industry structure, key strategic issues, characteristic strategic alternatives (including divestment), and strategic pitfalls are identified. Part III, "Strategic Decisions," draws on the analytical framework to examine important types of strategic decisions confronting firms that compete in a single industry: vertical integration, major capacity expansion, and new business entry. Additional use of economic theory and administrative consideration of management and motivation helps a company to make key decisions, and gives insight into how competitors, customers, suppliers, and potential entrants might make them. Appendix A discusses use of techniques for portfolio analysis applied to competitor analysis. Appendix B provides approaches to conducting an industry study, including sources of field and published dat

12,533 citations

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TL;DR: In this paper, the authors present a look inside the development, inner workings and future of the Internet, and recommend the book as "a must-read for anyone hoping to understand the next wave of human culture and communication".
Abstract: From the Publisher: Praised as "one of the ten best books of the year" by Business Week, this lively and provocative look inside the development, inner workings and future of the Internet is a must-read for anyone hoping to understand the next wave of human culture and communication."Read, learn, smile, weep, enjoy: managers, policy-makers, and fellow citizens, this book is worth your time." --Tom PetersA

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Journal ArticleDOI
TL;DR: In this paper, a variable-based definition of virtual reality is proposed, which can be used to classify virtual reality in relation to other media, such as TV, movies, etc.
Abstract: Virtual reality (VR) is typically defined in terms of technological hardware. This paper attempts to cast a new, variable-based definition of virtual reality that can be used to classify virtual reality in relation to other media. The defintion of virtual reality is based on concepts of "presence" and "telepresence," which refer to the sense of being in an environment, generated by natural or mediated means, respectively. Two technological dimensions that contribute to telepresence, vividness and interactivity, are discussed. A variety of media are classified according to these dimensions. Suggestions are made for the application of the new definition of virtual reality within the field of communication research.

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TL;DR: Porter as discussed by the authors argues that the Internet is not disruptive to most existing industries and established companies and, contrary to recent thought, the Internet itself will be neutralized as a source of advantage.
Abstract: Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them. Porter debunks such Internet myths as first-mover advantage, the power of virtual companies, and the multiplying rewards of network effects. He disentangles the distorted signals from the marketplace, explains why the Internet complements rather than cannibalizes existing ways of doing business, and outlines strategic imperatives for dot-coms and traditional companies.

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01 Jan 1989
TL;DR: The essence of strategy formulation is coping with competition as mentioned in this paper... Yet it is easy to view competition too narrowly and too pessimistically, while one sometimes hears executives complaining to the contrary, intense competition in an industry is neither coincidence nor bad luck.
Abstract: The essence of strategy formulation is coping with competition. Yet it is easy to view competition too narrowly and too pessimistically. While one sometimes hears executives complaining to the contrary, intense competition in an industry is neither coincidence nor bad luck.

3,285 citations

Frequently Asked Questions (17)
Q1. What are the contributions in this paper?

This paper reviews the published articles on eTourism in the past 20 years. Using a wide variety of sources, mainly in the tourism literature, this paper comprehensively reviews and analyzes prior studies in the context of Internet applications to Tourism. The paper also projects future developments in eTourism and demonstrates critical changes that will influence the tourism industry structure. A major contribution of this paper is its overview of the research and development efforts that have been endeavoured in the field, and the challenges that tourism researchers are, and will be, facing. 

It is evident, however, that the future of eTourism will be focused on Consumer Centric technologies that will support organisations to interact with their customers dynamically. Thus, the authors advocate the importance of performing future studies to address these issues. The Future eTourism Intermediaries. The Future of Destination Marketing: e-Commerce in Travel and Tourism. 

The key to success lies in the quick identification of consumer needs and in reaching potential clients with comprehensive, personalised and up-to-date products and services that satisfy those needs. 

Due to the popularity of Internet applications, most tourism organizations such as hotels, airlines, and travel agencies have embraced Internet technologies as part of their marketing and communication strategies. 

With less time spent on waiting and planning, and more time on enjoyment, consumers would surely like to make reservations and received tickets at home via travel websites (O’Connor & Frew, 2001). 

The Internet and computer simulations have also been used to simulate classroom discussions in order to enhance students’ understanding and retention of taught theories (Fawcett & Lockwood, 2000). 

The increase in buyers’ bargaining power is also related to the increased convenience, transparency, flexibility, direct communication with suppliers and depth of the available information. 

At the end of the database search, more than 149 published articles were determined to be relevant to this study as they had made a critical contribution to this area and they are analyzed in this paper. 

Sigala and Christou (2002) found that most educators mainly exploit the Internet in order to automate rather than to transform their instructions and foster pedagogical innovation. 

According to Wolfe, Hsu, and Kang’s (2004) research, the reasons of consumers not purchasing travel products online are the lack of personal service, security issues, lack of experience, and time consuming. 

Increasingly profiling will lead to better personalization, customization and interaction between consumers and tourism organizations. 

The bargaining power of suppliers was also enhanced by allowing direct contact with consumers and decreasing distribution costs whilst creating the opportunity for partnerships with countless affiliates and other distributors. 

According to Snepenger, Meged, Snelling and Worrall (1990), the four major factors that influence information search in the tourism context are i) the composition of vacation groups, ii) the presence of families and friends at the destination, iii) prior visits to the destination, and iv) the degree of novelty associated with the destination. 

At the time of a very volatile environment in the marketplace, tourism intermediaries are forced to readdress both their revenue and costs bases as well as to re-evaluate all partnerships and value chains. 

According to Graeupl (2006), flight information and accommodation are the most searched topics for the consumers aged between 50 to 60 years olds, and most of them were not interested in package holidays. 

The Internet has assisted tourism organizations to use a wide range of promotional activities to supplement, if not replace, offline promotions. 

Although plenty of choices are available on the Internet for customers to choose from, psychological barriers often prevent consumers from completing transactions online, resulting to “lookers” purchasing products off-line.