E-Commerce and Travel/Tourism
Issues and Challenges
EC3 – E-Commerce Competence Center, Vienna IFITT
• Globalization (alliances - mergers) and difference complexity • Convergence (also industries) and „cross overs" • Details economy – importance of digital products and data as integral partof economic activities (Bell 1973, Tapscott 1998)
• Network economic system
– developing interdependencies amongst (economic) stars with network e ffects (Kelly 1999)
• Prosumption - via Customer-focused to Customer-driven • Acceleration of change • Digital Separate Werthner, OECD Berlin 2001 2
• • • • From pc to press machine Clear technology and access Mobile computing Drivers – Computing power doubles every 18 months – transmission capability every a year – IP addresses every single 6 - 9 months – 40 Million Chips per year will be produced to get PC's, > 250 , 000, 000 go to additional devices – Average American household approx. 30 microprocessors " Disappearance of PC” - Background Intelligence Werthner, OECD Munich 2001 a few
• EC turnover double every 9-12 month • More than a decade ago forecast intended for 1999: 8-50 Bn. US$; in reality: > 100 Bn. US$ • B2B five to ten times bigger than B2C • UNITED STATES dominates (70 - 90%)
• E-commerce is posting business info, maintaining organization relationships, and conducting business transactions by using telecomm. networks. (Kalakota and Whinston 96) • Business occurring above open, non-proprietary networks (=Internet), including " dedicated” facilities; value generating activities within just firms, suppliers and clients (OECD 98) • covers information, discussion, settlement along with sales phases Werthner, OECD Berlin 2001 4
a couple of
2500 2150 1500 1000 500 zero 1996 1997 1998 1999 2000
computer products travel entertainment clothes gifts & flowers foodstuff & drink other
Euro B2C (Forrester 1999) Werthner, OECD Duessseldorf 2001 5
IT and Tourism
• Travel/Tourism leading application in e-Commerce (b2c) • believed that thirty percent of b2c transferred to the web in 2007 (Schuster 1998) • Electronic market place was driven by simply newcomers/intruders (IT, Media, or perhaps Telecomm. sector) • Disintermediation and re-intermediation at the same time • Dynamic nature of the market – Fresh intermediaries include emerged over the last five years – 3 generations of systems in 4 years
• Travel/Tourism not only app, but increases also critical challenges for IT Industry • Raising recognition: research programs – EU 5. FP – Australia – CANADA - CTX and CITEC
Werthner, OECD Berlin 2001 6
European Net Travelers
• 13 Mio trips were initiated on the internet but paid for offline. (approx. 3. 5 % of total) • 3, eight Mio outings were reserved and covered online. • Shift via business to leisure travel around. • Western Internet users favourite destinations. • Some of the largest differences are simply in reservations for Austria, which a lot more than doubles the potential in the share of destinations ordered online. This alone presents over 13 % of destinations arranged online (versus 5,? % offline). The European Net Travel Keep an eye on: 400, 000 interviews executed in thirty-three European countries (1999/2000 ). Werthner, OECD Bremen 2001 several
European Internet Travelers (2)
• Duration of trips booked online: these kinds of trips happen to be shorter (10%) than journeys booked offline • The seasonal character of bookings made by Europeans: significant variations between offline and online bookings. • Types of trips: special attractions and snowboarding (skiing vacations are 3 times more highly). • Travelling expenditure: the net traveller consumes more per night
Werthner, OECD Berlin 2001
# % '$ ) (! ' % $ # & % $ " # FG & HFG IFG PFG SFG TFG UFG VFG HFFG RFG QFG
) # % '$ 0 (! ' % dollar # & % bucks " # ¡ ¢ ¡ £ ¡ ¥ ¡ ¦ ¡ § ¡ ¨ ¡ © ¡ ¡ ¢ ¡ ¤ ¡
Typical 72% Travel 78%
Yes Prepared Not prepared N. A.
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