This section examines the factors that are critical to
the success of an e-tourism business initiative and subsequently proposes a
framework to plan and implement related activities.
Researchers have attempted to approach and analyse the critical success factors in electronic tourism business initiatives (Bindiganavale et al., 2002; Demetriades & Baltas, 2003). Evidence indicates that these factors include Value/ Product; Marketing Uses; Supporting Systems; Service Provision; ICT Infrastructure. Apparently, the most important factor for a successful Web site is its ability to focus on customer needs. The key is how to satisfy travelers’ individual needs precisely and conveniently. (Anchi et al., 2003; Sigala, 2004). Additionally, the Web presence must be used efficiently; that is to say for marketing purposes. Web sites have to be dynamic interactive relationship marketing tools rather than electronic brochures (Morrison et al., 1999). Law & Leung (2002) have proposed an e-travel business framework to assess airfare reservation services in travel Web sites. This framework consists of information quality, system use, system quality, service quality, and customer loyalty. Rodríguez (2003) suggested a methodology for designing and deploying electronic enterprises-a step beyond intuitive or rule-based approaches and provided a framework for guiding the e-business development process.
Demetriades & Baltas (2003: 212-213) have summarized the various elements and have suggested five constituting dimensions of an e-business model / framework. These dimensions are:
• Value Proposition to customers and other business actors (products, services). This is the main corporate marketing decision.
• Revenue Model: Choose the potential sources of revenues (sales, advertising, subscription, and affiliation).
• Organisation Structure and Cost Structure: operational structure, business processes, and management information system.
• Positioning to the Market Value Chain: strategic positioning and business relationships.
• Networks: alliances and partnerships.
It is clear that every company might determine its own business model, a mix of the above five dimensions. Hence, adapting Osterwalder & Pigneur (2002) ontology and taking into account the factors proposed by the related research, we suggest the e-tourism business framework which consists of five elements shown in Figure 1. Its right side could be considered as managerial and the left one as being marketing-oriented. Therefore, the proposed framework takes into consideration the two important pillars of tourism business operations, namely management and marketing; the emphasis being placed on the latter.
Figure 1. Framework to develop and implement e-commerce initiatives in the tourism industry
It should be noted that these factors – briefly described below - are interdependent and interlinked.
1. Value / Product Proposition: The customer's purchase should be approached as a search of "solution" for its needs, a solution that gives a benefit and involves a cost (Kotler, 2003). Select the appropriate marketing strategy.
2. Market Value Chain: Build up the appropriate network and alliances in regional / destination level. Recognize that business processes will change; for example, through new linkages and partnerships with portals and other e-commerce operators.
3. Web Marketing: Aiming at customer attractiveness and interactive marketing relationship. Create a meta-market offering the whole package of travel services in order to support the customer experience's customization.
4. Management & Reengineering: Resources and assets management. This element encompasses the financial aspects (costs and revenues). Reengineering services processes producing and delivering the service offered (Tinnilä, 2002).
5. ICT investments: Necessary information technology investments; the electronic media and tools to be planned and implemented; and their adequate uses.
The above-proposed framework reflects a strategic approach (Christian, 2001; Kleindl, 2001) in order to integrate e-commerce initiative into business operations as a medium to serve the corporate strategy and aims.
CONCLUSIONS
Information technology leads to flexible and market-oriented business, and success depends on quick response to rapidly changing customer needs, using ICT in order to deliver the appropriate products to the targeted segments. The use of the Internet and the WWW enable tourism businesses to improve their flexibility, interactivity, efficiency and competitiveness.
The new economy is radically changing distribution patterns and traditional customer behaviour. A key issue for all tourism business is how to evolve their companies from an old economy to a new economy business. Undoubtedly, the Internet, both as a channel and technology, has created a disruptive change in the tourism and travel industry. It has been suggested (Soteriades, 2002; Siegel, 2003) that only a strategic marketing approach can allow the tourism industry to take advantage of ICT.
Tourism businesses have to consider and approach the Internet as a form of technology offering strong potential, a set of tools that can be used in almost every market and business. The crucial point is not whether a company should use it or not, but the way it should be exploited in order to create value (Porter, 2001). To take full advantage of the Internet; a company has to take into account the informative content of the product / service, the whole value proposition, contact and the interactive relationship that can be developed with its customers. In addition, it is important to point out that the "conventional" (off-line) and electronic (on-line) activities and applications must be complementarily planned and implemented.
We believe that the above-proposed framework contributes, on the one hand, to the development and implementation of effective and successful e-commerce initiatives; and on the other, constitutes a basis to evaluate the use of a commercial Web site as a marketing tool. We believe that it is worth stressing the following points:
• There is an imperative need for an integrated planning and implementation of e-commerce initiatives and Web presence.
• Beyond the strategy's formulation and organizational planning, the development of an Internet business presence involves some particular and specific actions in order to ensure its quality, thereby, contributing to the general marketing strategy's effectiveness.
• Evidence indicates that failing to introduce innovations, such as ICT, is due either to the lack of strategic planning or to the non-acceptance and implementation of the strategy in-house (Porter, 2001; Demetriades & Baltas, 2003). Therefore, the integration of e-commerce activities into business operations should be considered as a ‘top-down process’, which must be supported by general management.
• Finally, the e-commerce operation is not an aim per se, neither an activity that might be developed independently and implemented separately. It should be incorporated as a new media that serves current or future corporate general strategy and aims.
Demetriades & Baltas (2003: 212-213) have summarized the various elements and have suggested five constituting dimensions of an e-business model / framework. These dimensions are:
• Value Proposition to customers and other business actors (products, services). This is the main corporate marketing decision.
• Revenue Model: Choose the potential sources of revenues (sales, advertising, subscription, and affiliation).
• Organisation Structure and Cost Structure: operational structure, business processes, and management information system.
• Positioning to the Market Value Chain: strategic positioning and business relationships.
• Networks: alliances and partnerships.
It is clear that every company might determine its own business model, a mix of the above five dimensions. Hence, adapting Osterwalder & Pigneur (2002) ontology and taking into account the factors proposed by the related research, we suggest the e-tourism business framework which consists of five elements shown in Figure 1. Its right side could be considered as managerial and the left one as being marketing-oriented. Therefore, the proposed framework takes into consideration the two important pillars of tourism business operations, namely management and marketing; the emphasis being placed on the latter.
Figure 1. Framework to develop and implement e-commerce initiatives in the tourism industry
It should be noted that these factors – briefly described below - are interdependent and interlinked.
1. Value / Product Proposition: The customer's purchase should be approached as a search of "solution" for its needs, a solution that gives a benefit and involves a cost (Kotler, 2003). Select the appropriate marketing strategy.
2. Market Value Chain: Build up the appropriate network and alliances in regional / destination level. Recognize that business processes will change; for example, through new linkages and partnerships with portals and other e-commerce operators.
3. Web Marketing: Aiming at customer attractiveness and interactive marketing relationship. Create a meta-market offering the whole package of travel services in order to support the customer experience's customization.
4. Management & Reengineering: Resources and assets management. This element encompasses the financial aspects (costs and revenues). Reengineering services processes producing and delivering the service offered (Tinnilä, 2002).
5. ICT investments: Necessary information technology investments; the electronic media and tools to be planned and implemented; and their adequate uses.
The above-proposed framework reflects a strategic approach (Christian, 2001; Kleindl, 2001) in order to integrate e-commerce initiative into business operations as a medium to serve the corporate strategy and aims.
CONCLUSIONS
Information technology leads to flexible and market-oriented business, and success depends on quick response to rapidly changing customer needs, using ICT in order to deliver the appropriate products to the targeted segments. The use of the Internet and the WWW enable tourism businesses to improve their flexibility, interactivity, efficiency and competitiveness.
The new economy is radically changing distribution patterns and traditional customer behaviour. A key issue for all tourism business is how to evolve their companies from an old economy to a new economy business. Undoubtedly, the Internet, both as a channel and technology, has created a disruptive change in the tourism and travel industry. It has been suggested (Soteriades, 2002; Siegel, 2003) that only a strategic marketing approach can allow the tourism industry to take advantage of ICT.
Tourism businesses have to consider and approach the Internet as a form of technology offering strong potential, a set of tools that can be used in almost every market and business. The crucial point is not whether a company should use it or not, but the way it should be exploited in order to create value (Porter, 2001). To take full advantage of the Internet; a company has to take into account the informative content of the product / service, the whole value proposition, contact and the interactive relationship that can be developed with its customers. In addition, it is important to point out that the "conventional" (off-line) and electronic (on-line) activities and applications must be complementarily planned and implemented.
We believe that the above-proposed framework contributes, on the one hand, to the development and implementation of effective and successful e-commerce initiatives; and on the other, constitutes a basis to evaluate the use of a commercial Web site as a marketing tool. We believe that it is worth stressing the following points:
• There is an imperative need for an integrated planning and implementation of e-commerce initiatives and Web presence.
• Beyond the strategy's formulation and organizational planning, the development of an Internet business presence involves some particular and specific actions in order to ensure its quality, thereby, contributing to the general marketing strategy's effectiveness.
• Evidence indicates that failing to introduce innovations, such as ICT, is due either to the lack of strategic planning or to the non-acceptance and implementation of the strategy in-house (Porter, 2001; Demetriades & Baltas, 2003). Therefore, the integration of e-commerce activities into business operations should be considered as a ‘top-down process’, which must be supported by general management.
• Finally, the e-commerce operation is not an aim per se, neither an activity that might be developed independently and implemented separately. It should be incorporated as a new media that serves current or future corporate general strategy and aims.
