Organizations in the Distribution Process - Tourism: Principles, Practices, Philosophies - page 160

of ces or the telephone. Telephone sales received a huge boost with the advent of 800 numbers,
and at the time, 800 numbers were considered to be state-of-the-art technology. We have
witnessed the coming of computers, central reservation systems, faxes, smart cards, videos, CD-
ROMS, DVDs, and the impact they have had on the travel distribution process. Today, the Internet
has become the major channel of distribution for travel and continues to grow. The Web gives
consumers the information and power to plan and book their own travel. It also gives travel agents
and tour operators the opportunity to have their own sites and greatly expands their reach. The
Web gives suppliers (airlines, hotels, rental car companies, cruise lines, attractions, etc.) a direct
sales channel that can reduce distribution costs by having the consumer do the booking, thereby
eliminating travel agency commissions and computer reservation system fees. The Internet is
both an information source and a transaction source. Consequently, the Internet continues to
evolve as a new marketing medium. It has the advantage that it can be used by virtually everyone
in the tourism industry, from the largest operator to the smallest. The airline giants and lodging
giants have excellent Web sites, as do smaller-scale businesses such as bed and breakfasts, dude
ranches, ski areas, tour operators, travel agents, tourism organizations, and even restaurants. These
travel suppliers have a new promotional and distribution tool to work with and one that promises
cost savings.
Today, the Internet is not only used by suppliers for destination information and booking all
aspects of travel, but has become a powerful social medium. Users are now a major force on the Web.
The term Web 2.0 refers to a change in how the Web is used, which is now user-centered. The term
Tourism 2.0 is the use of Web 2.0 applications in the tourist industry. The key features are the user-

generated content, where users express opinions about their preferences and social networking. In
planning trips, consumers not only consult destination Web site, but visit social sites, check travel
blogs, look for user recommendations, examine opinions, and enjoy photos and videos. Once they
travel, they share their own experiences on the Internet. For example, they might rate the hotels where
they have stayed on Tripadvisor, publish their photos on Flickr, upload their videos on YouTube, and
share their experiences on Facebook and Twitter. The Web gives

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new meaning and impacts e-commerce. Social media are providing new ways for suppliers to connect
with their markets.

'' word-of-mouth recommendations

Electronic Commerce

The term refers to the selling of goods and services via the Internet. Many studies

indicate that travel is now the king of Internet sales. Because of the importance of e-commerce,
the U.S. Travel Association, PhoCusWright, Forrester Research, and Jupiter Research all conduct
studies on a regular basis that show online travel sales are increasing and are expected to
continue to grow.
Creating growth are suppliers

e-commerce

Web sites and Internet booking services such as Expedia,
Travelocity, Orbitz, GetThere.com, Vacation.com,CheapTickets,CruisesOnly,Priceline,American
Express, and Travel Web, which are full-service megasites. Although most airlines and other travel
suppliers have sophisticated Web sites for their own schedules and fares, these sites rarely show
comparison rates. Consumers may find it easier to use services of travel aggregators such as Kayak,
Farechase, Booking Buddy, Mobissimo, Cheap Flights, Dohop, Momando, Skyscanner, and Ixigo to
find helpful travel information and a comparison of fares and schedules among different airlines and
other travel suppliers.
Small to medium-size firms are using the global reach of the Web. It serves as a great equalizer for
small firms because travelers around the globe can seek out a small hotel or B&B just as easily as a
five-star property. A small hotel in Amsterdam, unlisted in guidebooks, reported that 80 percent of its
U.S. reservations came from the Web.
The easiest prediction of all to make is that Internet technology and growth will continue, as will
the number of people who buy and sell on the Internet. This channel does have some limitations.

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