IT and Internet's Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group.

Demonstrate critical and evaluative interpretation and application of theoretical IT/ e-business concepts to a current tourism and hospitality market situation in order to build sustainable competitive advantage. I Introduction

Accompanying the technological revolution of the 1990s there are many new opportunities and challenges for the tourism and hospitality industries. Since tourism, global industry information is its life-blood and technology has become fundamental to the ability of the industry to operate effectively and competitively. Poon (1993) suggests that the whole system of information technologies is being rapidly diffused throughout the tourism industry and no player will escape information technologies impacts. The report below gives an insight into the importance of application of information technologies and the use of Internet in tourism and hospitality industries. Two given strategic frameworks provide the analysis of the Internet and its impact on these sectors. This paper also aims to show how technological innovations and information systems can be beneficial for the hotel companies, by using the example of Hilton Hotels Group. II IMPORTANCE OF TECHNOLOGY IN TOURISM AND HOSPITALITY SECTORS Market wisdom today suggests that hospitality companies must embrace technology to compete against traditional competitors, as well as entrants that build their businesses with the latest technology. In this changing environment, new models of distribution must be designed to lead the charge. A strategic information management function should facilitate the business mission of its enterprise through managed information, managed processes, and managed Information Technology (IT). Broadly, current applications of computer technology in the hospitality and tourism industries can be grouped into three main areas, operational, guest services and management information. The overall functionality of these applications is similar across a range of different hospitality organisations though the technology used to support them may vary. Large, city-centre hotels, for instance, tend to use minicomputers for their property management system (PMS) work. Microcomputers are employed elsewhere. The diffusion of the system of information technologies in tourism will increase the efficiency, quality and flexibility with which travel services are supplied. It has already led to the generation of new services, such as online brochures and interactive videotext. Technology has the greatest impact on the marketing and distribution of travel but leaves relatively untouched the human-intensive areas of guest-host relations and supplier-consumer relationships. Information technologies applied to the tourism system will increase the efficiency and quality of services provided and leads to new combinations of tourism services. All this could not be achieved without changing the manifest human high touch content of travel. It is the systematic use of the system of information technologies by all tourism suppliers, together with its profound impact on the travel industry, which creates the foundation for a new tourism best practice and a total system of wealth creation. Information and communication technology can be used not only for operational purposes, but also for tactical and strategic management. This empowers tourism and hospitality enterprises to communicate directly and more efficiently with prospective customers and suppliers as well as to achieve competitive advantage. One of the most established ways to analyze and develop complex systems (such as e-business) is to organize them in a meaningful structure. The four Ps model provided in Appendix A fully addresses the Internet product in relation to the shifting consumer expectations. III IMPACT OF INTERNET ON TOURISM AND HOSPITALITY INDUSTRIES: STRATEGIC FRAMEWORKS With the advent of the Internet, marketers have access to the technology to customize products and communicate directly with smaller target markets. The Internet is now firmly established as a marketing tool. It serves as an integral part of the marketing mix, serving as a digital distribution channel as well as an electronic storefront. Consumers in the Internet medium are more than just passive recipients in the marketing process. The Internet is an interactive medium as opposed to traditional marketing which usually allows only one-way communication from marketer to consumer 1.0 PEST ANALYSIS

1.1 POLITICAL / LEGAL
Government policies can have a dramatic effect on the Internet and its potential development, by introducing new policies and limitations. The privacy and security issues are also very significant. Therefore, Internet providers have to consider ethical matters and the usage of personal data stored within the networks. For the full commercial potential of electronic commerce and Internet to be exploited by the tourism industry and its consumers, several issues have to be considered, which include an increase of security of transmissions, copyright issues, reduction of user confusion and dissatisfaction, establishment of pricing structures for distribution of information and reservations and enhancement of the standardisation of information and reservation procedures. Credibility and accountability of the information needs to be secured and equal access for smaller and larger partners should be developed. Tourism organizations deploying IT and Internet for competitive advantage can also face legal risks due to possible violation of anti-trust laws and violation of privacy. Policies and procedures should be created to promote the understanding of potential legal risks. This understanding will encourage organizations to obtain help from legal experts to design controls to subdue such risks. Other political changes, for instance increasing unemployment, competition laws and planning policies, would only have an impact on tourism and hospitality organizations if they are using technological advances and Internet distribution channels. 1.2 ECONOMIC

The Internet is not severely sensitive to the economic cycles. However, it is considered that the tourism or hotel sales from the Internet will be much affected by economic changes in those countries, from which the customers are booking or reserving the pr...

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