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competitive to be picked. In addition, customers will not rely on advertising to obtain the desired information, which is a threat to the very nature of advertising.

2.4 Electronic payment.

This type of software enables electronic transactions. It has five significant impacts on business operations. These impacts are:

  • 1.

    It simplifies a very complex buying- payment process that leads to a bypassing of intermediaries,

  • 2.

    It assists in monitoring/tracking causal relationships to understand the relationship between the effect of ads and purchase patterns

  • 3.

    It facilitates the efforts required for niche marketing and narrow casting,

  • 4.

    It lowers the entry barriers into the

tourism industry competition, and

and

increases

5.

It augments the competitive capability of small organizations to expand their business.

2.5 Video Conferencing.

Video conferencing is the type of software that allows people to communicate with each other visually, regardless of their physical location. It helps geographically dispersed businesses to cooperate. That may reduce the need for business travel. However, this technology is still in an infant stage and communications are difficult because certain clues are missing.

2.6 Virtual Reality and Web Casting.

Virtual reality displays three-dimensional worlds. Web casting provides online live videos and events. Two things could happen: One is the loss of intrigue. Intrigue is one of the reasons that motivate people to travel. If people can go on the Internet and experience cyberspace vacations, they may lose their motivation to visit that place in the real world. The other thing is the balance between advertisement and reality. If people obtain an accurate view of the destination before they visit it, they are going to have really

well formulated expectations of what they will see at their travel destination.

2.7 Online Monitoring.

Word

of

Mouth

(WOM)

Consumer-to-consumer interaction contributes the most to the success of web-based advertising. Like through conventional communication channels such as phone and mail, people share their travel experience on the Web. Statistical evidence shows that there are more and more people using different features of the Internet (i.e. email, chat) to keep in contact with their friends and relatives. Tourism organizations have the ability to influence conversations related to the travel product and the end destination through WOM. Providing a virtual community for people to share their experience and stories is the most common example.

2.8 Knowledge-based systems.

Knowledge is the key resource for DMOs because they are not really in the tourism business; they are in the business of shifting information and knowledge. Knowledge-based systems facilitate the acquisition of knowledge and encourage learning. Besides learning, they foster information creation/storage/management, interaction, and knowledge sharing. The question is how to build a system that effectively incorporates available technologies. AskDan, a knowledge-based system developed by the National Laboratory for Tourism and eCommerce, is a framework that intends to change organizational knowledge management. It consists of five components:

  • 1.

    Market intelligence,

  • 2.

    Data warehouse,

  • 3.

    Knowledge tool box,

  • 4.

    Knowledge builder (online research

5.

reports/documents), and Community builder.

The

nature

and

speed

of

change

represents

new

challenges for DMOs. Knowledge-based systems

help

them

in

increasing

their

competitive

capabilities in this dynamic environment.

2.9 CRS (Computer Reservation System)

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