Historical Development of Electronic Tourism
The origination of information technology and communication system has a huge
impact on the wide range services across Indian market. Tourism is one of the major sectors
that embraced information technology to redesign or recreate process and operations that
made the industry more attractive and efficient.
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But the process of getting diffused into computerised operations and process did
not happen overnight. The development of tourism sector that completely work with and
around IT took more than decade time. Below mentioned Flow chart explains the major
development and transformation of tourism industry.
Traditional Tourism with email support
Emergence of CRS (Computer Reservation System)
CRS emerged into GDS (Global Distribution System)
IDS (Internet Distribution System)
DMS (Destination Management System)
E-destination & regional tourism Websites
Historical Development of e-tourism
The Flow chart (Figure) explains the various main stages of technological developments
established Information Technology in tourism enterprises, namely Computer Reservations
Systems (CRSs) then another 10 years time Global Distribution Systems (GDSs) came into
emergence then later there is an integrated approach called Internet Distribution System
(IDS) that utilised electronic media as well as communication technology.
The IDS is an comprehensive system that makes use of both GDS & CRS apart
from giving birth to Destination Management system (DMS). Although these technologies
emerged with gaps of about 10 years from each other, they currently operate separately as
well as jointly, controlling different functions and target markets.
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First Stage - 1970s: Computer Reservation Systems (CRSs)
Computerised networks and electronic distribution in tourism emerged in the early
1970s, through internal CRSs. They became the core of the distribution mix and strategy
of airlines. CRSs are widely regarded as the critical initiators of the electronic age, as they
formulated a new travel marketing and distribution system. A CRS is essentially a database
which manages the inventory of a tourism enterprise, whilst it distributes it electronically
to remote sales offices and external partners. Intermediaries and consumers can access the
inventory and they can make and confirm reservations.
The rapid growth of both demand and supply,
as well as the deregulation of the air
transportation demonstrated that the tourism inventory could only be managed by powerful
computerised systems. Airlines pioneered this technology, although hotel chains and tour
operators followed by developing CRSs. CRSs enable principals to control, promote and sell
their products globally, while facilitating their yield management. In addition, they integrate
the entire range of business functions, and thus can contribute to principals’ profitability
and long term prosperity. CRSs often charge competitive commission rates in comparison
with other distribution options, whilst enabling flexible pricing and capacity alterations
in order to adjust supply to demand fluctuations. CRSs also reduce communication costs,
while providing intelligence information on demand patterns or the position of partners
and competitors. Hence, CRSs contribute enormously to both the operational and strategic
management of the industry.
