Next, at the strategic level, eTourism revolutionises all business processes -
the entire value chain as well as the strategic relationships of tourism organisations
with all their stake-holders (Buhalis, 2003). As with other industries, ICT's
penetration into tourism should provide strategic tools for the networking of the
industry, for adding value to products and for enabling organisations to interact with
all stakeholders in a profitable way. In addition, ICTs can improve the managerial
processes in order to ameliorate control and decision-making procedures, and to
support enterprises to react efficiently to environ-mental changes and consumer
behaviour trends (Beech and Chadwich, 2006).
The emerging ICT developments have direct impacts on the competitiveness
of enter-prises, as they determine the two fundamental roots to competitive
advantage, i.e. differentiation and cost advantage. On the one hand, ICTs enable
tourism businesses to differentiate and specialise their products to each consumer.
By unwrapping the tourism product and by enabling consumers to put together all
the elements for their individual needs, ICTs offer the opportunity to target the
market segment of one, i.e. each individual customer. This is only possible because
ICTs support flexible and responsive value-added chains and empower consumers to
repackage products through endless combinations. On the other hand, ICTs become
instrumental to cost management in the industry and particularly for the distribution
and promotion costs. Organisations around the world have reduced their costs by
reducing commission to intermediaries, whether by trading directly from their web
page, by paying lower distribution fees to electronic intermediaries, or by cutting
commission levels and fees. In addition, redesign-ing processes and eliminating
repetitive tasks reduced labour costs and increased efficiency
Next, at the strategic level, eTourism revolutionises all business processes -
the entire value chain as well as the strategic relationships of tourism organisations
with all their stake-holders (Buhalis, 2003). As with other industries, ICT's
penetration into tourism should provide strategic tools for the networking of the
industry, for adding value to products and for enabling organisations to interact with
all stakeholders in a profitable way. In addition, ICTs can improve the managerial
processes in order to ameliorate control and decision-making procedures, and to
support enterprises to react efficiently to environ-mental changes and consumer
behaviour trends (Beech and Chadwich, 2006).
The emerging ICT developments have direct impacts on the competitiveness
of enter-prises, as they determine the two fundamental roots to competitive
advantage, i.e. differentiation and cost advantage. On the one hand, ICTs enable
tourism businesses to differentiate and specialise their products to each consumer.
By unwrapping the tourism product and by enabling consumers to put together all
the elements for their individual needs, ICTs offer the opportunity to target the
market segment of one, i.e. each individual customer. This is only possible because
ICTs support flexible and responsive value-added chains and empower consumers to
repackage products through endless combinations. On the other hand, ICTs become
instrumental to cost management in the industry and particularly for the distribution
and promotion costs. Organisations around the world have reduced their costs by
reducing commission to intermediaries, whether by trading directly from their web
page, by paying lower distribution fees to electronic intermediaries, or by cutting
commission levels and fees. In addition, redesign-ing processes and eliminating
repetitive tasks reduced labour costs and increased efficiency
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