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Information and communication technologies in tourism: Challenges and

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Innovation Management and Education Excellence Vision 2020: Regional Development to Global Economic Growth

Information and Communication Technologies in Tourism:

Challenges and Trends
Elisabete Paulo Morais, Applied Management Research Unit (UNIAG), Polytechnic Institute of
Bragança, Mirandela, Portugal, beta@ipb.pt
Carlos Rompante Cunha, EsACT – Polytechnic Institute of Bragança, Mirandela, Portugal,
crc@ipb.pt
João Paulo Sousa, EsACT – Polytechnic Institute of Bragança, Mirandela, Portugal, jpaulo@ipb.pt
Arlindo Costa dos Santos, EsACT – Polytechnic Institute of Bragança, Mirandela, Portugal,
acsantos@ipb.pt

Abstract
The integration of Information and Communication Technologies (ICT) in the tourism industry is an
essential element for the success of any tourism enterprise. ICTs provide access to information of
tourism products from anywhere and at any time. Tour companies may also reach out to target
customers around the world through a series of emerging technologies.
This paper aims to make a review of the main key factors of ICT in Tourism. Aspects such as the
quality of the website, Digital Marketing, Social Networking, Multimedia, Mobile Technologies and
Intelligent Environments are discussed.

Keywords: ICT; tourism; e-tourism; m-tourism.

1 – Introduction
Analyzing the whole process involving the tourism sector, we can see that its evolution over time is
based on technological advances, as well as other social, economic and geographic factors.
Tourism is an important economic activity for any nation and to the world economy and it is not
indifferent to technological progress, making use of it for the optimization of its business. Perhaps it
was the sector that has suffered the most changes due to technological developments.

The rapid development of ICT in general and the Internet in particular has dramatically changed the
tourism industry. It is widely accepted that the Internet serves as an effective marketing tool for
tourism. It is a tool of importance both for suppliers and consumers for the dissemination of
information, communication and procurement of goods and services online. The rapidly increasing
number of users and online transactions provide clear evidence of the popularity of the Internet.
The Internet has forced the reorganization of the tourism sector through the disintermediation and re-
intermediation (Machado & Almeida, 2010).

According to (Buhalis, 1998) ICT is the driver of the tourism industry:

• Cost: increases efficiency; low distribution, communication, and labor costs;

flexible pricing.
• Market: satisfaction in the upmarket demand; flexibility in operating time; expertise
and support differentiation; provides last minute deals; accurate information; It
supports relationship marketing strategies for frequent / invited passengers; rapid
response to demand; multiple integrated products; profit management (marketing
strategy for profit maximization through overbooking, differentiation in the price);
business intelligence; market research.
• Competition: business networks management; training of value-added; flexibility;
acquisition of knowledge; strategic tool; barriers to entry.

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In the following sections we present a set of technologies and ICT applications which are evidence
for the tourism industry, being considered as challenges and trends.

2 - Website Quality
In recent years nothing seems to have changed the tourism sector more than ICT and the Internet. The
massive diffusion of e-business and increased competition at the global level caused a dramatic
rethink the ways in which the tourism business is thought, with destinations come into this
competition. ICTs have become a key factor in competitiveness, not only of organizations but also of
the destinations, since a wide range of technological developments caused this evolution. Apart from
this fact, the availability of more effective ICT will strengthen businesses and destinations, efficiency
and renewal of their communication strategies (Salgado, Godinho & Milheiro, 2012).

For Rababah et al. (2011), and a wide range of academics, quality, web-design and usability are the
three main types of evaluation to be made to the websites. According to Rababah et al. (2011) a
website should try to meet the customer’s needs to ensure visitors and gain their loyalty.
The quality factors on the web seem to have an impact on the acceptance of the user, since these
factors influence the beliefs and behavioral intention of the user. In addition, the company can have
control over these factors.

According to Jung et al. (2000), an electronic trading system is a type of information system.
Recently, a number of studies have approached the development of applications for e-commerce and
identified a number of features to be taken into account. For example, Liu et al. (2000) identified
some key factors in the development of e-commerce sites. These key factors consist of the quality of
information, quality of service, the playful character, the quality of the system design, and system
usage. In this study, Liu et al. (2000) found that a well-designed Website would lead to better
memory by the user and the recognition and a positive attitude to the Website and its products.

In recent years, several authors have been working on models for assessing the quality of Web sites,
including methodologies (Bevan, 1999) (Brajnik, June 2001), (Oehler & Biffignandi, June 2008),
(Signore, September 2005), (Zhang Zhu, Greenwood, & Huo, November 2002), frameworks for
quality (Cornelia, Craig, Angus & Paul, May 2001), (Olsina & Rossi, 2002) (Yen Jen-Hwa Hu, &
Wang, 2007 ) estimative models (Li, Li & Li, Sept 2009), (Olsina, Lafuente, & Rossi, May 2001),
standards (W3C, 2006), usability criteria (Nantel & Glaser, 2008), metrics (Calero, Ruiz & Piattini,
April 2005), (Liburne, Devkota, & Khan, 2004) (Nielsen, 1993) and web assessment tools (Ivory &
Hearst, 2001) (Jati & Dominic, 2009).

3 – Digital Marketing
Currently, the market segmentation is such that tourism producers have to know how to adapt their
offer almost at the moment of the reservation, so it is necessary to constantly adjust the product to the
huge range of niches and existing market segments. IT tools help to thoroughly explore the tourism
product, as they provide a use of space with almost no restrictions, showing all the characteristics of
the products, through videos, personalized space, possible configurations and decorations, different
meals, leisure packages. And further, allowing it to be up to the customer himself to 'draw' the
product tailored to your needs, selecting a menu with all the possibilities that those best suited to their
profile. Given that a Website can be the "packaging" of the tourism product, its presentation is often
responsible for the purchase decision, so it must constantly innovate content and make the site what
the customer really demand, so as to convert, the first click, a query in an effective sale (Machado &
Almeida, 2010).

The best way to think about the use of ICT in the tourism industry is to discuss the tourism product
characteristics and specificities of the tourism marketing. Typical for the tourist product is primarily
its complexity, unique ability to meet consumer needs, dependence on time and place, a broad
spectrum of quality, price relationships, dependency cooperation and the human factor. All aspects of

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the tourism product characteristics and specificities of the tourism marketing are strongly influenced
by the use of ICT. ICTs are changing the tourism market by supporting the tourism marketing.

ICT change the way organizations distribute their tourism products on the market (Buhalis & Licata,
2002), (Buhalis, 1998), (Frias, Rodriguez, & Castaneda, 2008).

ICT is a powerful tool for market research, neural networks are used for market segmentation, it is
common to use software to analyze the historical guest / preferences on web pages.

The ability to forecast the demand of tourism can provide an advantage of important market. Song &
Li (2008) proposed a detailed study of the different approaches to achieve a tourism demand
forecasting through modeling and forecasting. They analyzed studies and articles on modeling and
forecast published tourism since 2000 and concluded that:

• Quantitative forecasting techniques can be divided into three categories: time series
models, econometric approach, and other methods, including techniques for artificial
research;
• New trends to increase the accuracy of forecasting further include a combination of
quantitative approaches and the integration of quantitative and qualitative approaches;
• Future development: better calculation based on seasonality, unexpected events, life-
cycle assessment of tourist destinations;
• According to the authors, "there is no single model that consistently exceeds other
model in all situations."

4 – Social Networks
Social networks ceased to be just the meeting place between friends who have not seen each other for
some time, or a place to make new friends. Social networks grew and became something enormous in
terms of interaction and communication. Social networks have a crucial role in the voyages of users,
from planning the trip to sharing the experience. Formerly, the vacation destination was chosen
through the catalogs of tour operators and the reliance on travel agents. That changed, now people
seek on the Internet all the information about the place or places they want to visit before traveling
and often seek suggestions of places to go on holiday, thus creating the vacation package that really
satisfies them.

According to Digital Marketing (2015), Social Networks are one of the most powerful tools of today
in tourism. Using these tools for travel related purposes has grown considerably, with Facebook, one
of the most popular on number of monthly visitors. In tourism and travel, the views and
recommendations of the tourists are of great importance for the growth of a company, for people to
travel, take pictures, make videos of a particular locality that when added on Social Networks can
arouse interest other users. According Brusha in (DigitalMarketing, 2015), there are some
opportunities that should be considered in the use of Social Networking in tourism:

• New clients: Using new channels different from the usual increases the probability of
reaching new people, and may well gain new customers;
• Effective communication: Knowing what they say about themselves on social networks, and
participating in the communication, the company attracts and enhances its relationship with
current and potential customers, through an image of credibility and trust;
• Pass the word: The so-called "word of mouth", a powerful source of dissemination in
tourism. People who are on Social Networks related trips are eager to relevant and original
information. When obtained, it is easily passed to others, thereby obtaining a "viral effect";
• Management of online reputation: through being present in social networks and constantly
monitoring and controlling them, the company can manage the image of your brand on it;
• Fun Technology: the tourism area has an excellent opportunity to use all the tools and
applications online that can help you create unique and entertaining content (videos, articles,

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photo albums, discussion groups, online events, contests, etc.) that, in turn, can help attract
potential customers;
• Partnering with brands that complement their own services: Depending on the area, making
partnerships with online travel agencies, transport companies, restaurants, activities
companies, hotels, etc., can complete their presence and offer on Social Networks;
• Disseminate a region: Any business in the tourism sector is set in a particular region that
people want to visit and meet, so it is important to awaken the visitor's curiosity, so it is not
confined to knowing your hotel or restaurant. Social networks should also be used to
promote and advertise your region, stimulating the Internet user greater curiosity by visiting
the same.

According to the study "Digital Channels in Travel" conducted by Deloitte leisure travel companies
are failing to fully capitalize on the business opportunities offered by social networking platforms.
The work of Deloitte, to Facebook, recommends that the travel companies that integrate digital
channels into their overall business strategies to reach consumers more effectively. The study results
are based on analysis that Deloitte performed the data from a global survey, sponsored by Facebook,
involving 10,500 users of social networks.

5 – Multimedia
The Multimedia is also one of the development of key areas that influence tourism. The information
on tourism needs a great representation of pictures and graphics, in order to provide a tangible image
or experience for those planning trips. The use of animations and videos can enhance the wealth of
information and interaction. Unlike information offline, which is unilaterally exposed to travelers, the
Web allows people from around the world can interact virtually with a destination using the three-
dimensional concept (3D) virtual visits. Experience in computer-mediated environment can simulate
actual visits and virtual experience can provide almost real experiences. Interactive websites have
been adopted by online merchants to attract online consumers, encourage online shopping, and to
create loyalty (Fiore, Kim, & Lee, 2005). Tourists can obtain tourism information displayed from
digital maps with aerial and satellite images in two dimensions and even three dimensions.

Tourist services, given their intangible nature, cannot be made available or experienced prior to their
acquisition, so the review is dependent on the existing information in the printed and audiovisual
forms. A tourism product of success will depend on an extensive and targeted marketing, leading to
the creation of new distribution channels. ICTs provide opportunities to expand the business in a
geographical, operational and marketing level. Virtual exhibits and digital photographs, based on
multimedia and interactive nature of the Web, give a new dimension to the marketing of tourism
destinations (Buhalis, 2003). A multichannel and multimedia system Destination Management serves
goals, not only distribution and information planning for travel, such as education and entertainment,
essential for sustainable development of tourism. In this sense, Hadzic (2004) argues that every
tourist destination must be accessed through an integrated Web portal rather than a fragmentation of
individual web pages of the different stakeholders (travel agencies, tour operators, hotels, services).

Not replacing presential tourism, Virtual Tourism has recently started to appear. This phenomenon
has become possible by the combination of some technological material such as increasing Web
access speeds, showing in recent years the appearance of increasingly powerful compression codecs
that have decreased considerably the weight of the contents. In addition there are techniques and tools
able to create immersive environments where it is possible to manipulate the visitor viewing the
interactive space, seeing him in a highly personalized way. This phenomenon led to Google
Company investing in Google Earth and Google Street View. The virtual tours are not a relatively
new technology, however, only recently has there been a more extensive use of this kind of services
and they are being used by various types of industries such as the housing, restoration and museums.
The virtual tours are still relatively little interactive, using multimedia can make this an even more
enriching experience. Taking as an example the Smithsonian natural history museum in the city of
New York, you can make a virtual visit appealing by making use of various multimedia resources. To
better engage with people power, they would use sound effects in each of the dinosaurs showing them

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how they would sound at the time. Using videos or simulations would be possible to show how they
walked and finally through textual elements and images the user can consult information on the
subject that you certainly arouse even greater interest (Santos, 2014).

6 - Mobile Technologies
The progress of mobile technologies, especially in recent years, has enabled the emergence of new
mobile services (Martin, Alzua, & Lamsfus, 2011). Mobile phones are now used to access the
Internet, to create and view images and videos, to locate people and places and as learning tools and
social share information with friends. The mobile phone has evolved from a traditional voice
communication device to an instrument that facilitates interaction (Kenteris, Gavalas, & Economou,
2011).

The rapid growth in the use of mobile devices (mobile phones, Personal Digital Assistant (PDA),
portable computers) and increasing wireless network coverage have been promoting the access to the
internet via mobile devices, making it possible to suppress the space limitations time access to
internet. A report from the Pew Internet & American Life Project predicts that by 2020 mobile
devices will become the world the primary means of Internet access (Anderson & Rainie, 2008):

• The information models adapted for mobile guides - making use of user profiles
and / or collaborative filtering techniques to deliver customized content and
services; ease of updating of the information model;
• The architecture used - the chosen technology platform for the implementation of
the application; they can be distributed massively to the current mobile devices;
• The communication infrastructure type used (eg, Wi-Fi, Bluetooth and 3G) -
Application adaptability to changes in the network; the cost of use for users;
• Positioning technologies and map systems used to support users - if the maps
support the search paths and the dynamic adjustment of routes; types of location-
based services that are available; the navigation technology provides information
according to the user context;
• The mechanisms used for input and output of data; typology of content available;
multilingual support;
• Available differentiating services and how services are implemented based on
standard or proprietary frameworks.

The evolution of mobile technologies and infrastructure has increased the requirements for ubiquitous
access to tourist support systems. With advances in ubiquitous computing, the proliferation of
wireless communication technologies and the increase in data transmission rates, the availability of
processes of multimedia content on mobile devices has increased and become more efficient and
effective (Biuk-Aghai Fong, & Si, 2008).

The use of mobile devices in tourist activities gave rise to the m-Tourism. The m-tourism has been
designing in various aspects such as (Doller, Kockerandl, Jans, S., & Limam, L., 2009):

• In support of travel, allowing access to the target route and the time required estimates;
• In location-based services (LBS), enabling the maps query, store location, weather and
tourist destinations in a given region;
• In electronic tour guides, allowing access to travel tips, prices, features and tourist
attractions;
• In alerts about events systems, such as the opening of the boarding gates or performing
scheduled activities for a certain time;
• In traffic services, enabling the consultation of traffic conditions and alternate routes.

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7 - Intelligent Environments
An intelligent environment (Aml) is a vision that has promoted the enrichment of space, making it
dynamic, adaptive, transparent, where the traditional computer and its traditional inputs and outputs
disappear (Sadri, 2011). The first reference to Aml was introduced in 2001 by the European Union
(Ducatel, Bogdanowicz, Scapolo, Leijten, & Burgelman, 2001), as an evolution of technology. And
recalling the history of the computer, it was an object initially very expensive, difficult to understand
and use, a rare and precious resource, and each one was used by various individuals. From the 80s we
witnessed the massive use of this resource, and each individual wore one or more.

There are several projects that attempt to explain this concept in several areas, including home,
office, transport, industry, entertainment, tourism, recommendation systems, health and safety (Cook,
Jakkula, & Augusto, 2009). With regard to tourism, we can see projects that explore public spaces
equipped with different technologies to collect, analyze and make decisions. We can also find
scenarios to support the tourist during his visit, either to museums or historic sites or even those who
help planning a visit to a city. And considering that the tourism activity can be divided into three
phases (Watson, Akselsen, Monod, & Pitt, 2004), planning, tourism and souvenirs, the concept can
also be explored in these three stages, either helping the tourist to do planning or guiding tourists
during their activity, and even promoting and enriching their memories that can later remember and
share.

Public spaces embedded with technology offer added value to the tourist, for a person who moves out
of its usual area of residence, making it more interesting, more sociable, more beautiful and effective
(Veenstra, Kanis, Groen, Meys, & Slakhorst, 2011). The project Itour (Alizadeh, Veenstra, & Kanis,
2012) is an example that explores this concept, and it investigates the potential and the acceptance of
the use of technology to collect, discover and interpret data on the movement of tourists, their
behavior and experiences in the city of Amsterdam, in order to provide tourists with better services.

Sadri (2011) describes in his work the use of the Aml concept in the context of museums, historical
sites and in the context of a visit to a city.

Associated with the concept of Aml, and research in tourism, we find references to smart cities, and
another concept called the Internet of Things (IoT) (Buhalis & Amaranggana, 2014; Wang, Li, & Li,
2013). These data show a path, trying to not only create discussion on the subject, but also to present
results about experiments conducted with users as residents or tourists. In this context, services are
installed in different places in the city, for example, an airport or a hospital or hotel services which
contribute to the local economy and its development, tourism, the environment, energy and transport.
And in the tourist level, smart cities can also offer information and infrastructure to achieve a set of
solutions related to tourism. Moreover, from the physical and virtual integration (Conti, Das,
Bisdikian, Kumar, & Zambonelli, 2012) and services of smart cities, tourism can take advantage of
the fully integrated market with the tourist attractions, government departments and information and
services relevant companies in order to promote tourism development (Kehua, Jie, & Hongbo, 2011).

8 – Conclusions
The survival of touristic organizations depends in large part on the appropriate use of new
technological applications. However, the biggest challenge these will overcome is the traditionalist
view that these new applications serve only large companies, focusing all their attention on
applications and solutions appropriate to its size and its position in the market.

ICT plays a crucial role in the operation of the internal management of the organizations, however,
establishing relations with its external environment, allowing in the case of tourism coordination
between all stakeholders in the tourism system is possible.

The future of tourism will naturally be focused on technologies centered on the user that will support
organizations to interact with their customers in a dynamic way. Consumers are increasingly

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powerful in the developing and are increasingly able to determine elements of its tourism products.
They are also much more sophisticated and experienced and therefore are much harder to please.
Innovative tour companies must have the ability to divert resources and knowledge for consumers
and provide greater added value to transactions. The development of new applications enables
suppliers and destinations to improve their efficiency and streamline their communication strategies.
Innovative technologies support interoperability, customization and constant presence. Agile
strategies are needed both at strategic level and tactical management to ensure that the opportunities
and challenges driven by ICT have advantage for tourism organizations to increase their capacity for
innovation and competitiveness.

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