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Impact of IT in The Tourism Industry Assignment Sample

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Impact of IT in The Tourism Industry Assignment Sample

Introduction- Impact of IT in The Tourism Industry

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Information technology (IT) encompasses almost everything organisations do with systems. Constructing communications infrastructure for just an organisation, protecting relevant data as well as information, generating as well as administering databases, assisting employees with desktop or smartphone gadget issues, or performing a lot of different tasks to guarantee the effectiveness as well as safety of management information systems are all examples of information technology. Tourism industry is indeed the collection of all commercial operations that cater to the requirements of visitors as people tour or trip to various locations. Tourism seems to be a very wide business that consists of several divisions or sub-industries that manufacture and sell a variety of similar as well as distinct creating and delivering tourism demand therefore enable the action of travelling and visiting for the tourist industry feasible. This report gives a detailed description of the effect of information technology on the tourist sector.

Background of the Study

The tourism business is among the best and most consistent industries, either regionally/domestically or globally. As per the "Tourism World Council (2004)", the tourist industry accounts for approximately 10% of global GDP. Around the year 2014, this percentage is predicted to rise (Kyrylov et al. (2020). The implementation of information technology through its activities and administration is driving such fast expansion. Several tourist organisations use information technology into company operations, giving them a strong opportunity of generating large profits. Online booking services are indeed an instance of an IT infrastructure used here in industry to connect with potential clients. It was quite challenging for certain tourism organisations to properly enhance their brands to their clientele previous to technology improvements. It was indeed extremely costly because consumers remained continually detached, for instance, hundreds of kilometres apart. Nonetheless, technological development has expedited commercial transactions even while growing the number of clients (Buhalis (2019). The capacity of individuals to communicate and interact with one another in different locations, allowing it easier and less expensive for engaging consumers. Formerly, the much more common type of this was an inter-organizational network that linked organisations. Nevertheless, due to the obvious exorbitant expenses, most firms also couldn't afford to utilise it. The development of global distribution networks made it possible to connect as well as communicate beyond borders. Technology enabled for such rapid communication of knowledge, which aided the sector in terms of reservations.

Figure 1: Importance of Tourism


Global distribution was indeed a type of inter-organizational method that arose through computerised reservation that assisted with the integration of aircraft data. Consumers were capable of making their bookings at such a unified global market as a result of such linkages, which helped the tourist business (Valeri & Baggio (2021). These technologies remained in use in the 1960s, therefore connection with current computers proved unfeasible. The introduction of the internet and especially world wide web as just a result of technological innovation has changed the way that people connect and conduct commerce. Companies use the website to market various tourist services and products. This forum has brought the entire planet together. It has transformed the world into such a community. People in various areas can engage in life.

They may exchange ideas and thoughts despite actually meeting. Technologies have resulted in the creation of several types or frameworks which allow for linkages. Currently, social networking sites like "MySpace, Twitter, Facebook, LinkedIn", and more are pieces of knowledge which both the tourism industries have exploited to target clients all over the world, resulting through an invasion of travellers and thus increasing their revenue. According to Clayton and Criscuolo (2002), technological advancements such as the web have resulted in several alterations with how individuals do company. Among the improvements are the creation of a channel via which thoughts may be translated into products that are marketed and afterwards transferred to something like a bigger economy at cheap rates of reaching these marketplaces as well as seeking for consumers (Samala et al. (2020). It makes it easy to enter the market and provide new items. It has altered the manner in which knowledge is transmitted among people and organisations. The advantages of technology in the tourism industries are immense.

Advantages and Disadvantages


IT’s benefits may be observed in almost every facet of life. Lives of people are becoming more reliant on the digital field. Consumers in remote regions can exchange real-time data via desktop, faxing, smart phones, mails, and the internet. The capability that has emerged accompanying technology has manifested itself in important sectors (Navío-Marco, Ruiz-Gómez, & Sevilla-Sevilla (2018). Tourist industry is one of the businesses that just need a lot of promotion on even a worldwide basis. Due to the online platform, this is already being achieved with ease and at a cheap cost. Companies possess numerous sites where they offer their goods and services to the entire world. Businesses are adept of tailoring their services for the benefit of their customers. Additional advantage to this method is that this has made internationalisation possible. The globe has shrunk to the size of a little town. Humans being linked together via computer communication and social media. With such a click of the mouse, information is conveyed at such a higher pace (Sathish et al. (2020, December). The tourist sectors have taken advantage of this chance to discuss insights on diverse enterprises. This has also aided in reunification of persons divided via physical location including those from diverse cultures.

Figure 2: Growth of Tourism


Although this sector is based on data, these technologies have brought a benefit even though customers can reach data regarding places from which they could spend their leisure time as well as holiday season resting (Ivanov (2019). Several individuals in the United States utilise the internet to plan their vacations to numerous places. The rate has been rising with each day. For example, it is projected that far more than 75 million individuals who visit throughout the world utilise the internet to research various locations. As a result, they use the internet to register, verify as well as compare prices, and plan travel trips to different popular destinations. Numerous people trying to cross borders spend their time and thus are hosted mostly by hotel business. As a result, individuals make significant contributions towards the business. Several people travel for pleasure (Matikiti, Mpinganjira, & Roberts-Lombard (2018). As a result, tourists spend the host culture in foreign money to be entertained or to move around the country seeing tourist attractions such as game reserves as well as game complexes. From 1996 to 2006, the number of reservations climbed to almost double digits.

In 2001, development reached 58 percent, and then in 2002, this reached 25 percent. Several online travellers stated that they utilise the web to acquire news or data regarding their locations, as well as every other travelling requirement. As a result, they do the business over the internet. For example, individuals pre-book sites to see once they get to the location. This demonstrates how innovation has transformed the business (Foris, Matei, & Foris (2021). Travelling used to be extremely complex as well as costly due to the multiple tiresome required paperwork procedures which individuals had been through. They do not need to hunt for lodging as they get at respective locations. As a result, technology takes this a step further, because everything is now done from the convenience of one's own home. According to an online travel research, the major proportion of persons travel for enjoyment, holiday, personal reasons, as well as company.

Consumers might then integrate technology to locate directions, plans of locations, schedules, aircraft, and the amount of money to invest on such a vacation (Valeri & Baggio (2020). Such information is accessible on the internet. It has grown together into a key proxy for economic and judgemental purposes. It alludes to regions or spots which a user would want to visit. The internet's exposure towards this content, like appealing tourism sites, beautiful tourism scenery, and qualities, offers a platform for attracting everyone else to come and experience individuals. As just a result, the web has led to increasing bookings as well as visitor visitation, justifying the growth in the company's gross national product. Technology is advancing at such a rapid pace, making it feasible for people to connect to the internet via mobile phones (Hoque et al. (2020). Individuals throughout the world may use mobile phones to seek data and sometimes even communicate with each other. This technology has made it possible for the hospitality and tourism industries to sell their products through the internet. People who travel for vacation or for some other causes have always been in contact with family as well as colleagues. Several individuals have expanded their cross-border travelling as a result of this.

Innovations in tourism industry due to technology over 50 years

Social media sites such as Facebook as well as MySpace have a massive user base. In 2007, it really is projected that approximately 360 million individuals accessed using the medium for engagement and other reasons (Arenas, Goh, & Urueña (2019). The medium is being used to exchange ideas as well as keeping in contact with individuals all around the nation. As a result, they provide an excellent platform for companies to sell various services and goods. The tourism industries have the opportunity to use these channels to promote out from a large number of potential guests. Via such a medium, people would understand regarding tourism locations offered. As a result, they may make a significant contribution to the development of the hotel and tourist industries. Technology, on the other hand, seems to have had a detrimental influence in just this business.


Technology presents various difficulties. The digital world provides maintenance as well as follow-up issues (Oláh et al. (2018). It necessitates a significant effort in web use throughout order to maintain connections and react to numerous posts which are received. Individuals or potential guests might alter their thoughts or cancel their opportunity to attend a specific location when the questions really aren't addressed promptly. Additional issue is indeed the rising threat of cybercrime as well as cyberattacks. Sometimes persons may get access to the network housed just on the web in order to obtain personal information. Any such person may manipulate data, resulting in deception and consumer damage. Moreover, the quantity of site visitors might not have been as large as anticipated (Jermsittiparsert (2019). This results in a significant waste because the firm might not have been able to produce sufficient money, reducing the firm's income level. Several of the drawbacks of advanced technologies is that this has massive unemployment. Many individuals who are employed in the tourism business as tour companies, shed their employment as a result of cost-cutting measures and use of the web.

Because much branding as well as promotion is conducted over the web, employment creation in such areas has indeed decreased. The growth of the web also has had an impact on security. Individuals have devised new methods of stealing or getting access to companies' platforms in order to acquire sensitive information (Tussyadiah (2020). This puts the firm at danger. Just on the web, there has been a rise in dispersion. There are several tourism sites information on the web. This is really a difficulty, particularly for small and medium-sized tourism businesses with insufficient site optimization skills and understanding. This growth indicates a lack of management into an already oversaturated market. Customers are unfamiliar with most of these sites. This makes it tough for prospective customers to find them and also have faith in them enough to use them. The other issue is that it arises solely on the internet with the use of intermediaries to link customers and various companies. For the efforts that are given by the employees, they are paid and that helps in leading to lesser income and earnings and uniformity of sites.

To summarise, technology makes a significant contribution to the global development of the tourist industries. Countries who have adopted technology and systems having reaped the benefits in terms of additional revenue. The aforementioned method has a lot of potential. To properly handle anything and maximize all over its great promise, it still does, however, require staff having significant expertise as well as competence as to how it performs (Seyito?lu & Ivanov (2021). However, technological advances have led in the eradication of a large number of professions. This appears to have had an effect on individuals living spaces since they depend on respective jobs to meet basic needs.

Impact on People and Culture

The tourism sectors are frequently characterised as just an innovating as well as producing system. Technology plays a very important part in promoting economic growth and creating a travel industry (Del Vecchio et al. (2018). The extension and employment of air transport as a mode of transportation for passengers to various areas is a significant technological achievement to the tourism sector. The growth as well as technological development has had quite a significant influence on tourism. The expansion as well as technological development seems to have had a significant influence on tourism. Web technology is crucial because it may tighten security and efficacy. This, in return, assists aircraft in lowering costs as well as reaching passengers by broadening existing range. Inappropriate Internet use would generate several situations which have been impact players for modern travel firms across both helpful as well as destructive ways.

Figure 4: Impact of IT in Tourism Industry

Areas where information technology has an influence on tourism sector -


Although computer systems are becoming an essential element of the travel and tourism industry because of their widespread usage, Age data has offered numerous fresh advantages. Information may be preserved more frequently than usual due to improved software and technology.


Improved communication technologies have increased travel agencies' ability to interact not just with clients, but rather with business associates, partner services, as well as advertisers (Khalifa (2020). A high-speed broadband connection enables near-instantaneous vision, speech, including textual communications throughout the globe, generally at a cheaper price than older techniques like distant phones as well as smart phones could provide. Information can indeed be supplied in large quantities from just an organisation to various services, and then refunded towards the consumer (Buhalis et al. (2019). This enables bookings as well as collaboration that could have consumed hours or even days to just be completed instantaneously, dramatically decreasing processing period as well as organisational reduced productivity.

Reservation for self-service

The surge in internet or e-bookings has had a significant influence on this vacation firm. Consumers who would like to schedule a vacation no longer really have to travel to something like an organisation; they may arrange their complete journey electronically (Alnusairat et al. (2021). Travel agencies have indeed eliminated the need for travel agents entirely by enabling clients to buy tickets as well as accommodation immediately through their websites through the electronic mode.


To conclude that the lives of several numbers of people have been revolutionised for knowing the method of evolution of technology have taken place while carrying on doing anything. The tourism business is among the industries that has seen the most dramatic effects as a result of technological advancements. It is just not unexpected that such a business is recognised as one of the greatest performers in the globe. Technology has made a significant contribution to this accomplishment. Despite significant faults as indicated within the study, technology is critical to the development of the tourism industries. Better communication, booking, as well as customer care technologies helped both consumers as well as companies. Tourism businesses have benefited from electronic labour to substitute pricey human workers. This not only involves cutting labour expenses, but that also helps in avoiding customer support concerns.

Reference List


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