1210-1_o turismo, a hotelaria e as tecnologias digitais

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    E-B USINESS FOR TOURISM

    PRACTICAL G UIDELINES FOR TOURISM

    DESTINATIONS AND BUSINESSES

    November 2001

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    CONTENTS

    Part A Introduction

    1 Setting the Scene ...........................................................................1

    1.1 The Internet and tourism a powerful combination............................................11.2 The importance of the Internet and Internet-based e-commerce .....................2

    1.2.1 The growth in Internet usage.......................................................................21.2.2 Internet user profile......................................................................................41.2.3 The growth of Internet c ommerce ..............................................................51.2.4 Travel and tourisms market share...............................................................51.2.5 Travel products purchased .........................................................................71.2.6 The impact of Internet use on traditiona l cha nnels....................................81.2.7 Summary of main market trends............................................................... 10

    1.3 The concept of electronic business (e-business)..............................................101.4 The principles of customer relationship management (CRM)...........................11

    Part B E-Business for Destination Management Organisations

    2 E-Business for DMOs - Principles and Concepts...........................14

    2.1 Evolving value chains........................................................................................142.1.1 The future of DMOs as intermediaries........................................................ 162.1.2 Positioning DMO s within the Value Net ..................................................... 16

    2.2 Integrated e-business systems for tourism destinations.....................................182.2.1 Destination e-business system model........................................................ 182.2.2 e-Business Partnerships for DMOs.............................................................. 20

    2.3 The potential of e-marketing and CRM.............................................................222.3.1 The scope for e-marketing by DMOs ........................................................ 222.3.2 Customer Relationship Management for DMO s.......................................222.3.3 E-marketing techniques............................................................................ 252.3.4 Critica l success factors - for CRM and proa ctive elec tronic marketing ... 28

    2.4 E-commerce for DMOs......................................................................................282.5 New ways for DMOs to do business...................................................................312.6 Strategic Challenges for DMOs.........................................................................32

    3 Implementing a DMS as the infrastructure for e-business............34

    3.1 Introduction .......................................................................................................343.2 Step-by-step guide to implementing a DMS.....................................................343.3 DMS Critical Success Factors.............................................................................453.4 DMS Case Studies..............................................................................................46

    3.4.1 British Columbia .........................................................................................463.4.2 Finland .......................................................................................................493.4.3 Seychelles Tourism Marketing Authority..................................................... 543.4.4 Singapore Tourist Boa rd ............................................................................. 583.4.5 Tirol Tourist Board / Tiscover ....................................................................... 61

    3.5 Case study summary table ...............................................................................66

    4 Consumer Web sites.....................................................................68

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    4.1 Step by step guide to development..................................................................684.2 Critical success factors .....................................................................................774.3 Case studies......................................................................................................78

    4.3.1 Berlin..........................................................................................................794.3.2 Caribbean Tourism Orga nisation ..............................................................814.3.3 New Zealand ............................................................................................. 854.3.4 Singapore.................................................................................................. 894.3.5 Tourism Vancouver....................................................................................924.3.6 Key features of a consumer Web site ....................................................... 95

    5 Networks for intermediaries........................................................100

    5.1 Travel trade intermediaries..............................................................................1005.1.1 Fea tures of a travel trade Web site......................................................... 1015.1.2 Implementing a travel trade Web site .................................................... 1015.1.3 Online travel intermediaries.................................................................... 1025.1.4 Examples of good prac tice .................................................................... 102

    5.2 Meetings, incentives, conferences and exhibitions (MICE) organisers...........1025.2.1 Fea tures................................................................................................... 1035.2.2 Implementing a MICE Web site............................................................... 1035.2.3 Examples of good prac tice .................................................................... 103

    5.3 Media site........................................................................................................1045.3.1 Fea tures................................................................................................... 1045.3.2 Implementing a Media Web site............................................................. 1055.3.3 Examples of good prac tice .................................................................... 105

    6 Networks for the tourism industry................................................106

    6.1 Getting SMEs wired and skilled .......................................................................1066.2 Features and functions....................................................................................106

    6.2.1 Publish corporate information................................................................. 1076.2.2 Publish intelligence a nd provide access to resources ............................ 1086.2.3 Interac tive services ................................................................................. 1096.2.4 Business to Business trading ..................................................................... 1106.2.5 Users and Content ................................................................................... 1106.2.6 Costs and benefits.................................................................................. 111

    6.3 Step by step guide ..........................................................................................1116.4 Critical success factors ...................................................................................1166.5 Case Studies....................................................................................................117

    6.5.1 Canadian Tourism Exchange .................................................................. 1176.5.2 Scot Exchange ........................................................................................ 119

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    Part C E-Business for Tourism SMEs

    Introduction to Part C .......................................................................... 123

    7 Industry overview.......................................................................1257.1 Growth of tourism e-business and impacts on SMEs throughout the industry..1257.2 Strategic importance of e-commerce and e-business for SMEs.....................1277.3 Mapping e-commerce and e-business applications.....................................1287.4 Structure and content of each sector analysis................................................131

    8 Hospitality services.....................................................................133

    8.1 Introduction .....................................................................................................1338.2 Targeting your e-business strategy..................................................................133

    8.2.1 Attracting international visitors................................................................ 1338.2.2 Offering customised pa ckages............................................................... 1348.2.3 Ma intaining long-term relationships........................................................ 135

    8.3 E-Business applications and functionality .......................................................1368.4 Step-by-step guide to implementing your e-business strategy ......................138

    8.4.1 Phase 1 Developing your Web site....................................................... 1398.4.2 Phase 2 Positioning your Web site......................................................... 1408.4.3 Phase 3 Reengineering your reservation process................................. 1418.4.4 Phase 4 Building your back office ........................................................ 1438.4.5 Phase 5 Re-configuring your property.................................................. 147

    8.5 Critical success factors of your e-business strategy........................................1508.6 Case studies of innovative e-business solutions..............................................151

    8.6.1 Application service providers.................................................................. 1518.6.2 E-Proc urement pa rtnerships.................................................................... 1538.6.3 Property management systems.............................................................. 1548.6.4 Competitive intelligence......................................................................... 155

    8.7 Future of e-commerce and e-business...........................................................156

    9 Travel Agencies..........................................................................158

    9.1 Introduction .....................................................................................................1589.2 Targeting your e-business strategy..................................................................158

    9.2.1 Getting rea listic about e-commerce and e-business............................. 1589.2.2 Moving beyond ticketing ........................................................................ 160

    9.2.3 Adopting an alternative revenue ba se structure ................................... 1619.3 E-business applications and functionality .......................................................1629.4 Step-by-step guide to implementing your e-business strategy ......................164

    9.4.1 Phase 1 Scaling your strategy and resources....................................... 1649.4.2 Phase 2 Building infrastructure a nd competenc ies.............................. 1679.4.3 Phase 3 Foc using applications on service excellence ......................... 170

    9.5 Critical success factors of your e-business strategy........................................1749.6 Case studies of innovative e-business solutions..............................................175

    9.6.1 Finding opportunities for segmentation and specialisation .................... 1759.6.2 Growing a small online travel agency on the side ................................. 1759.6.3 J oining an online referral service ............................................................ 1779.6.4 Bec oming a click and mortar agenc y.................................................... 178

    9.6.5 Applying e-business tec hnologies for service excellence....................... 1799.7 Future of e-commerce and e-business...........................................................181

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    10 Tour operators.............................................................................183

    10.1 Introduction......................................................................................................18310.2 Targeting your e-business strategy ..................................................................183

    10.2.1 Conc entration and niche market structures......................................... 18410.2.2 Changing relationship with travel agenc ies......................................... 18410.2.3 Competing with new entrants............................................................... 186

    10.3 E-business applications and functionality........................................................18710.4 Step-by-step guide to implementing your e-business strategy.......................188

    10.4.1 Phase 1 Moving towards e-marketing ................................................ 18910.4.2 Phase 2 Ada pting your technologica l ba se....................................... 19110.4.3 Phase 3 Making product development more flexible ........................ 195

    10.5 Critical success factors of your e-business strategy ........................................19710.6 Case studies of innovative e-business solutions ..............................................199

    10.6.1 Developing new conc epts for online tour operators............................ 19910.6.2 Integrating e-business applica tions for growing tour operators............ 20110.6.3 Bec oming a click-and-mortar consolidator.......................................... 202

    10.7 Future of e-commerce and e-business............................................................203

    11 Visitor Attractions........................................................................206

    11.1 Introduction......................................................................................................20611.2 Targeting your e-business strategy ..................................................................206

    11.2.1 Managing a ttraction information strategically ..................................... 20711.2.2 Creating more flexible operations......................................................... 20911.2.3 Exploiting the power of a lliances .......................................................... 210

    11.3 E-business applications and functionality........................................................21011.4 Step-by-step guide to implementing your e-business strategy.......................212

    11.4.1 Phase 1Crea ting and diffusing attractive informationa l contents...... 212

    11.4.2 Phase 2 Crea ting sea mless e-business processes............................... 21811.4.3 Phase 3 Bec oming an agile and innovative attraction...................... 21911.5 Critical success factors of your e-business strategy ........................................22111.6 Case studies of innovative e-business solutions ..............................................222

    11.6.1 Cultural tourism...................................................................................... 22211.6.2 Nature-based tourism............................................................................ 22511.6.3 Sports tourism......................................................................................... 22511.6.4 Urban tourism ........................................................................................ 22611.6.5 Rural tourism.......................................................................................... 227

    11.7 Future of e-commerce and e-business............................................................228

    12 Conclusion .................................................................................230

    Appendix A Review of consumer Websites...................................... 233

    Appendix B Technical glossary and abbreviations..........................266

    Appendix C Suggested reading.......................................................271

    Appendix D Bibliography.................................................................. 273

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    PART A - INTRODUCTION

    1 Setting the Scene

    1.1 The Internet and tourism a powerful combination.

    The Internet and its protocol (TCP/IP) have created a universal platform forcommunica tion and presentation - a truly open, global network. Increasingly it willbe accessed from different types of equipment - TV, mobile devices, in-cartechnology, terrestrial phones, kiosks, computer games consoles, etc - for a range of purposes. The cost of access is going down and the speed of access is going up.

    The Web is bec oming more useful (in terms of functions and c ontent) and more user-friendly. This is a powerful combination of fac tors driving increased usage, as shownin Sec tion 1.2.

    Tourism and the Internet are idea l partners. For consumers, when they are planning atrip to a new destination, they face the problem of making a costly purchase withoutbeing able to see the product. The Internet provides them with the means to ga inimmediate access to relevant information of greater variety and depth than hasbeen available previously, about destinations throughout the world; and to bookquickly and easily.

    For tourism destinations and businesses, it offers the potential to make information andbooking facilities available to large numbers of consumers at relatively low cost; itenables them to make large-scale savings on the production and distribution of printand on other traditional activities (e.g. call centres and information centres); and itprovide a tool for communication and relationship development with tourismsuppliers and market intermediaries, as well as end-consumers.

    Tourism has a key difference from most other sectors of e-commerce its consumergoes and c ollec ts the product at the point of production i.e. the destination. Thusthe tourism sector avoids the need to deliver products around the world - a task thatfaces real logistical problems that have been a major source of customerdissatisfaction.

    These fac tors, taken together, have resulted in the travel and tourism sector taking alarger and larger share of e-commerce globally as documented in Sec tion 1.2. As aresult, the Internet is revolutionising the distribution of tourism information and sales.Not only does it provide tourism destinations and businesses with direct ac cess to endconsumers, but also it is becoming the primary channel for business to businesscommunication.

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    1.2 The importance of the Internet and Internet-based e-commerce

    1.2.1 The growth in Internet usage

    The dramatic growth in the number of Internet users over the past five years andprojections for the next five years are shown in Figure 1 a nine-fold increase over fiveyears. The top fifteen countries in terms of the absolute number of Internet users(predicted for year-end 2001) is shown in Figure 2, with the United States clea rlydominating. The worlds top nine generators of international travel are included(except The Netherlands) and Pacific-Asia features strongly.

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    Figure 1 Number of Internet users world-wide (in millions)[Source: eTForecasts, July 2001]

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    Figure 2Top 15 markets in terms of numbers of Internet users at year-end 2001

    (in millions) [Source: eTForecasts, July 2001]

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    Figure 3 shows a different pattern the top 15 countries in terms of the number of Internet users per thousand population. On this basis, smaller countries standalongside the larger ones, with Sweden having the highest rate of usage. OtherScandinavian countries and Australasia a lso feature strongly, as do the smaller Asiancountries. Of the worlds top ten major markets for outbound internationa l travel, thefollowing do not appear on this chart: Germany, UK, France, J apan, Italy, Spa in andBelgium.

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    Figure 3 - Top 15 markets in terms of number of Internet usersper thousand population at year-end 2001 [Source: eTForecasts, July 2001]

    Future growth in Internet user numbers is expected to vary markedly between thedifferent regions of the world. J upiter predicts (Figure 4) that: North America will have a relatively slow rate of growth, but still rema in

    predominant in 2003 The largest growth overall will be in Pac ific Asia The largest percentage rates of growth will be in the late adopter markets,

    pa rticularly the Middle East (from a low base).

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    North America

    Western Europe

    Asia Pacific

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    Figure 4 - Internet users (in millions) by world region

    [Source: Jupiter Communications, 2000, quoted by eMarketer]

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    Another company, eTForecasts (Figure 5), projects much stronger growth in Asia, tothe extent that it will have overtaken North America by 2003 and will have twice asmany users in 2006. The assumption of rapid growth in Asia is ba sed on rapidlyincreasing use of wireless Web devices.

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    N. AmericaW. EuropeE. EuropeAsiaS/C AmericaM. East/Africa

    Figure 5 - Internet users by regions (in millions), 1997-2006[Source: eTForecasts, July 2001]

    1.2.2 Internet user profile

    Internet users tend to be relatively: wealthy well educated interested in independent travel

    In other words, they relate very well to some or all of the target markets of manydestinations. However, as the number of Internet users grows, particularly throughincreases in the use of new a ccess channels (especially interactive TV and mobile

    devices), the user profile will change, broaden and become less up-market.

    In the United States, it is already the c ase that a very high proportion of peopletravelling internationally is, or will be soon, Internet users. The same will be true in othermajor markets within the next two or three years.

    Thus, based on user profile, the Internet appea rs to be an idea l medium for marketingby tourism destinations and businesses. We shall see later in this chapter how this is,indeed, proving to be the case. First, however, we look at the key question of how farthe Internet is being used as a medium for buying, as well as researching.

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    1.2.3 The growth of Internet commerce

    Figure 6 contains a key ana lysis provided by Jupiter, showing how, in the US, thepropensity to purchase increases directly with length of time as an Internet user. Thosewho have been Internet users for three years or more, are more than twice as likely tobuy than a first year user.

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    BuyersBrowsersNon-Shoppers

    Figure 6 - Browsing and buying, related to experience online - in US[Source: Jupiter Communications 2000]

    Thus, as the market has matured, there has been and will be substantial growth in

    both the number and the percentage of Internet users who a re buying see J upiterfigures aga in in Figure 7. Figures 8 shows IDC forecasts of the number of Internet usersand of Internet buyers on a worldwide ba sis.

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    Figure 7 - Online buyers increase as a proportion of online users in US[Source: J upiter Communications]

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    Figure 8 IDC Internet Commerce Market Model Worldwide (in millions)[Source: IDC, 2001]

    As a result of these factors, IDC forecasts that e-c ommerce revenue worldwide willincrease approximately eight-fold between 2001and 2005, rising from $634 billion in2001 to more than $5 trillion in 2005. The highest growth rates (percentage increases)are expected to be outside North America. As figure 9 shows, the US, J apan and therest of the world are expected (by IDC) to have a reduced share of Internetcommerce, whilst the share of Western Europe and the rest of Asia will increase.

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    Figure 9 Shares of Internet Commerce Revenue by Region[Source: IDC, 2001]

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    1.2.4 Travel and tourisms market share

    For the reasons outlined in Sec tion 1.1, travel and tourism have bec ome rapidly thesingle largest category of products sold over the Internet. In 1998, Datamonitorestimated that their share of Internet c ommerce increased from 7% in 1997 to 11% in1998 and they projec ted an increase then to 35% by 2002. Other sources havesuggested that this forecast may have been achieved already.

    J upiter has forecast that, as a result of these trends, US on-line travel industry sales willincrease from $18 billion in 2000 to $63 billion in 2006, of which nearly half will comefrom the corporate travel market. PhoCusWrights projec tions for Europe are thatonline travel and tourism sales will increase from $2.9 billion in 2000 to $10.9 billion by2002.

    1.2.5 Travel products purchased

    Travel Industry Assoc iation of America (TIA) research in 2001 has shown that a largemajority of Internet using US travellers have bought air tickets and made hotelreservations online see Figure 10. Bec ause of the size and frequency of air tickettransactions, they have taken the largest share of the market, but that share isdiminishing, from 80% in 1998 to a forec ast 59% in 2003 (J upiter).

    84% 78%

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    Made a hotel reservation

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    Booked entertainment tickets

    Booked tickets for amusement park

    Booked a travel package

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    Figure 10 - US consumer on-line travel booking by sector [Source: Travel Industry Association of America, 2001]

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    1.2.6 The impact of Internet use on traditional channels

    A key question for DMOs and tourism businesses is the way in which the Internet isaffecting the use of traditiona l channels of marketing. A number of recent surveyscast light on this: A travel & lifestyle survey for Concierge in 2000 (Figure 11) showed that, across the

    US population as a whole, the Internet had already become the number onesource of information consulted when c hoosing or planning a vacation.

    26%22%

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    Travel Agents

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    * Among Internet users this figure rises to 64%Figure 11 First source consulted by US consumers for

    researching and planning travel [Source: Results of travel & lifestyle surveyfor Concierge, 2000 reported at www.hotel-online.com]

    Results from the e-Travel tracker Survey, prepared by MORI on behalf of theScottish Tourist Board, on the UK market, which tends to follow 18-24 monthsbehind the US market, showed that in Ma rch 2001, the Internet and brochureswere used in similar proportions, as sources of information for booking holidays orother forms of travel, by Internet using travellers- see Figure 12. In Ma y 2000, wheninterviewees were a sked which source provided the most complete information,the Internet was rated much more highly than broc hures or any other source see Figure 13.

    ?

    51% 50%47%

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    InternetTravel Agent

    Friends/Relatives/ColleaguesTeletext

    Guide Books

    National PressMagazines

    TV Travel Programmes

    Figure 12 - Use of different sources of information for booking decisions UK Internet users. [Source: Results from theE-Travel Tracker Survey from

    www.scotexchange.net, March 2001 Base: all who use the Internet (605)March 2001]

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    31%

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    Brochures

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    TV Travel Programmes

    National Press*

    Magazines*

    Figure 13 - Most complete source for researching and planning travel UK consumers. [Source: Results from the E-Travel Tracker Survey from

    www.scotexchange.net, May 2000. Base: all who have used any source of

    travel information May 2000 (1,112)] TIA research in 2001(Figure 14) showed that about 70% of Internet using travellers

    were using travel agents and state tourism offices less often. A similar proportionwas calling a irlines less often, whilst nea rly 60% were using other travel call centresless.

    In 2000, US on-line travellers reported that since they started planningtheir trips on-line, they were

    71% 68% 68%

    58% 57% 57%

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    80%Using travel agents less often

    Calling or visiting state tourismoffices less often

    Placing fewer calls directly toairlines

    Placing fewer calls directly torental companies

    Placing fewer calls directly tolodging companies

    Ordering travel brochures byphone less often

    Figure 14 - Consequences of increased use of Internet for traditional channels[Source: The Travel Industry Association of America, 2001 (www.tia.org)]

    Thus, over a period of only five years, the Internet has become a primary source of travel information for the more mature markets of Internet users, which are also majortourism generating countries. At present, the proportion of travel booked through theInternet is relatively small (between 6 and 15% in the US, ac cording to sector, and lesselsewhere), but will increase substantially, as the number of Internet users grows andthe propensity to purchase increases. It seems reasona ble to anticipa te thattransactions ac ross the Internet may account for 20-25% of all tourism sales in themain markets, over the next four or five years.

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    1.2.7 Summary of main market trends

    Usage of the Inte rnet is increasing dramatically Increasing proportions of Internet users are buying online Travel and tourism will gain a larger and larger share of the online commerce

    market Ground products will gain a larger share of online commerce in travel and tourism User profiles relate well to the target markets many tourism organisations The Internet is having a major impact, relative to other channels, as a source of

    information for choosing and planning holidays and other forms of travel, andincreasing importance as a booking channel.

    1.3 The concept of electronic business (e-business)

    E-business has been defined as improving business through connectivity(PriceWaterhouseCoopers 1) and the use of Internet technologies to improve andtransform key business processes (IBM 2). Taking these two definitions together, it isclear that for tourism destinations and businesses, e-business is about realising theopportunit ies of improved connectivity both externally, through the Inte rnet , andinternally, through intranets.

    The external dimension is about transformation of the value chain, linking the tourismsupplier (or service provider) to the customer, and of the supply chain, linking thetourism supplier with its own suppliers. This brings in e-market ing, e-commerce and e-procurement: e-marketing exploit s the Internet and other forms of electronic comm unication to

    communicate in the most cost-effective ways w ith target markets and to enable joint working w ith partner organisations, w ith w hom there is a common interest

    e-commerce is the sales activity undertaken through electronic distributionchannels

    e-procurement streamlines the purchasing process by allow ing a business to tie itsinventory and procurement systems into the despatch and billing systems of itssuppliers, or vice versa. Not only does this reduce costs through automation, italso facilitates identification of best value sources of supply.

    Figure 15 illustrates diagrammatically how these three aspects of externalconnectivity fit within the envelope of e-business.

    1 htt p://www .pricew aterhousecoopers.com/extweb/indissue.nsf/2 htt p://www .ibm.com/e-business/overview /28212.html

    e-business

    e-commerce

    e-procuremente-marketing

    Figure 15Components of the external dimension of e-business

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    The internal dimension is about transformation of the way in which the organisationfunctions, enabling it to work in a fully integrated way, through the use of commonsystems. The transformed organisation should: Be fully networked for internal and external communication Use a common set of tools, protocols and standards Share product and customer da ta as a common resource Have staff operating as teams, focused on maximising the synergies of sharing

    resources.

    In other words, the staff of a DMO or tourism business can work together moreeffectively, both to compile information and to use it - in effect, pooling knowledgeand expertise. The tools (applications) that may be shared include contentmanagement, customer relationship management (CRM), financ ial managementsystems (sometimes called Enterprise Resource Planning ERP) and operationalcontrol systems.

    The internal and external processes are, of course, linked intimately. Most simply, theenhanced internal e-business processes enable the organisation to maximise thebenefits of the external opportunities. Also, the boundaries between internal andexternal business processes bec ome more flexible. Buying services in (or outsourcing)becomes a more practical proposition as external connectivity improves.

    Thus the benefits of e-business may be summarised as: More cost-effec tive c ommunication with target markets Ma king it quicker and easier for the customer to buy and thereby increasing

    conversion and levels of spending Improved c ustomer service and retention Reduced costs through more efficient internal operations and purchasing

    proc esses.

    Later chapters of this report look at the implications of e-business for DMOs (Part B)and tourism businesses (Part C). There is, of course, a d irec t relationship. The variouscategories of tourism business are key elements in the DMOs e-business network (seeSec tion 2.1). The DMO has a particular responsibility to tourism suppliers to act asthe integrator of the many elements of the destination product and present them inthe marketplace under the umbrella of the destination brand. E-business provides anideal way of doing this more effec tively.

    1.4 The principles of customer relationship management (CRM)

    A key aspect of e-business and of e-marketing is customer relationship managementand/ or marketing normally referred to by the acronym CRM. CRM is a highlyeffective and c ost efficient approach, some would call it a philosophy, based on theprinciple that knowledge of, and relationship with, customers is key to maximisingsales opportunities, particularly through repea t purchase. It merits pa rticular attentionhere, because it provides the basis for re-focusing and restructuring the wholeorganisation. The principles can be applied to customers of whatever type whetherend-consumers or intermediaries.

    As for e-business generally, there are many definitions of C RM . The one used byNykamp C onsulting G roup 3, optimising all contacts with customers or potential

    3 http:/ /www.eyefortravel.com/pastevents/crm/program.html

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    customers, picks up the essence of it in a few words. Nykamp has also provided anexcellent conc eptual model for the CRM c ycle, set out in Figure 16. Perhaps the beststarting point is the understanding of customer needs (lower right hand quadrant),followed by the differentiation between customers in terms of those needs and theirpotential value and the type of relationship that may be most effective.

    Figure 16 The Nykamp CRM cycle

    The cycle then moves through product and channel development and customisationfor different segments, customer interaction and delivery of increased value to them,customer ac quisition and retention.

    CRM involves building up in depth information about customers or contac ts. In thecase of c onsumers, this information would normally include their soc io-demographicprofile, interests and activities, past and possible future requirements, etc . With thistype of information, it is possible to be: Knowledgeable and efficient in servicing enquiries

    Pro-active in targeting best prospect customers with products specifica llyappropriate to their needs Establish the basis for a lifetime relationship with the customer, and maintain it

    even where transactions are not involved.

    Relationships should be developed over time, as a result of contact through differentchannels, requiring that all customer facing staff have access to the same customerda taba se. In the context of tourism destinations or businesses, the aim should be tomaintain the relationship with customers before, during and after the visit, through theWeb, e-mail, call centre, kiosk, Tourist Information Office, etc. see Sec tion 2.3.

    CRM is not a module that can simply be added on to an organisations activities. It

    must be integral to the whole ethos and method of operation, with customer (ratherthan product) foc us to the fore. Ma rketing staff should be geared to addressing the

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    needs of spec ific customer segments and their targets should be in terms of c ustomeracquisition, retention, value and profitability, as well as satisfaction. This will requireexcellent monitoring systems, together with creative and focused market research.As it happens, the Internet provides a good means for instant research (through e-mail or surveys linked to Website usage) on customer requirements, interests,activities, attitudes, satisfaction, etc . This will need to be supp lemented by marketresearch through traditional methods from time to time.