Friday, 26 April 2013

The backside of technology in tourism and events

The democratization and innovation in technology has led to a dramatic change in the event and tourism industries. Without any doubt, the tourism industry is adopting the third “T” of Tourism, Travel and Technology. Information Communication Technologies (ICTs) are used to improve operations, to manage customers and to have a better reach. Among a large number of benefits, technology enables  businesses to increase productivity and competitiveness. For instance, organizations can set up an extranet to network more easily with trading partners. They can sell their services through new distribution channels (own website, OTAs…), and therefore reach a greater number of consumers. On the other hand, travelers can find information, plan their trip online and share their experience instantly (Shanker, 2008). Better reach, thousands of information coming in both ways, from the service provider to the customer, and from the customer to the service provider.
Previous articles in this blog have highlighted latest developments applied to tourism and (or) events, and how technology is beneficial for business.

Nonetheless, one ought to be aware of the backside of technology, which is a true reality.
For any businesses, adopting technology implies changing operating procedures, training staff to use these new tools and even sometimes reducing staff. Even though software are becoming more and more intuitive, one can easily notice that most people are not using optimally the wide range of functionalities that software offer. In organizations, individuals are not necessarily trained to explore in depth all the functionalities of these new tools In the course of changing technology, there is also a learning curve with a ‘downswing’ stage so called the “Valley of Tears”. This psychological phenomenon occurs as many employees are adverse to change, in procedures, technology or working environment. (Anton et al., 2001) Changing procedures and technology in an organization is a process, which requires time and effort. Therefore, one needs to be aware of such learning curve and not to expect results immediately.

Organizations also need to follow and catch up with innovation. As technology is constantly and exponentially evolving, one can observe a gap between the tourism industry and the technology industry. This gap is not a drawback in itself, as many other industries cannot catch up with every single innovation. It even leaves a small margin of maneuver for late adopters, in order for them to analyze which technology could be the right one to be used. Indeed, there are no standards, yet, regarding the latest technologies developed in the tourism industry (maybe except for the distribution systems with GDS). Nonetheless, no standard have clearly emerged in the event industry. Therefore, managers might feel lost whenever they have to decide which tool to choose.


One feels less concerned in our European economies, but one might not forget the challenges faced by developing countries regarding technology. There’s no denying that technology brings a lot of opportunities for any businesses. Organizations are more competitive and provide better services to customers. Hence, in a globalized world, developing countries need to catch up with the trend of ICTs in order to compete with international tourism market. However, many of these countries have a poor access to ITCs. It refers to the so called “Digital Divide” (Shanker, 2008). One significant figure is that only 1/3 of the world has access to the Internet. Among the regions  having access to the Internet, one must also consider connectivity issues. In many countries, connectivity is not sufficient to guarantee a smooth utilization of web-based software. Connection speed does matter, and statistics show that the real internet connection speed varies significantly from one country to another. An example which speaks for itself is China, first country in the world in terms of Internet users. Statistics show that the average connection speed is 0.86 Mbits/s throughout the country, which is considered to be a poor connection speed. Also mind the costs of hardware, which is still high and can represent a significant investment for businesses.

Last comment on the downside of technology will be regarding security and privacy policy. Using software dramatically enhances the way people are communicating and exchanging data. A huge amount of data, private information are flowing on the Internet and stored on a cloud. As a business, one has to guarantee protection of these data: protecting it from the competition, form other internet users and from hackers.

Technology is definitely changing the face of tourism and events. It is certainly a must-to-have in business. Being aware of opportunities and challenges related to e-tourism and ICTs in events is a good start to reduce uncertainty and implement technological tools more wisely.

References:

Anton J., Kuliopulos J., Petouhoff N. L. (2001) The Psychological Impact of Change and Reengineering in a Call Center. In Recruiting and Retaining Call Center Employees. Pp 175 – 190. Retrieved from http://books.google.fr/books?id=FJO69aQXVJoC&

Bizhelp24. The Pros and Cons of New Technology. 3 September 2010. Retrieved from http://www.bizhelp24.com/tech/computers/the-pros-and-cons-of-new-technology.html

Mistilis N., Buhalis D. (2012) Challenges and Potential of the Semantic Web for Tourism. e-Review of Tourism Research (eRTR), Vol. 10, No. 2, 2012. Retrieved from http://ertr.tamu.edu

Pingdom (2010) The REAL connection speeds for Internet users across the world (charts). Published in Tech Blog on 12 November 2010. Retrieved from http://royal.pingdom.com/2010/11/12/real-connection-speeds-for-internet-users-across-the-world/

Shanker, D. (2008 May). ICT and Tourism: Challenges and Opportunities. Conference on Tourism in India – Challenges Ahead, 15-17 May 2008, IIMK. Retrieved from http://dkc.engo.in/files/2012/02/ICT-and-Tourism-Challenges-and-Opportunities.pdf

UNWTO (2011) Affiliate Member Reports. Technology in Tourism. Retrieved from http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwtodigitalresources_volume1_techtourism_eng_0.pdf

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