CABI TOURISM TEXTS

3rd Edition

Tourism Information
Technology
PIERRE J. BENCKENDORFF
ZHENG XIANG
PAULINE J. SHELDON

COMPLIMENTARY TEACHING
MATERIALS
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Chapter 2
The Digital Tourism Landscape
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Chapter 2 Learning Objectives

After studying this chapter you should be able to:
1. Describe the general concept of the digital tourism landscape;
2. Explain and evaluate the components and functions of information
technology in tourism using a digital tourism ecosystem
perspective;
3. Analyze the drivers of innovation and technological change in the
digital tourism landscape;
4. Define and provide examples of disruptive innovation;
5. Apply behavioral perspectives to explain how travelers adopt, use
and respond to information technologies in tourism settings; and
6. Explain the role of information technology in tourists’ decision-
making processes.
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Key Concepts

 Digital tourism ecosystem

 Diffusion of innovations theory
 Hype cycle
 Technological innovation theory
 Disruptive innovation
 Technology acceptance model (TAM)
 High-tech / high-touch
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Inspiration

Entities
Suppliers,
Travelers,
Intermediaries,
Connections Governments,
Broadband, DMOs Devices
Mobile, WiFi, Desktops, Smart
NFC, BLE, GPS, Devices, Mobile
Broadcasting, Devices, Digital
Protocols,
Communities
Kiosks
Social Networks
Reflection Standards
Blogs, Reviews,
Transaction
Content Forums, Wikis,
Rich Media, Local Experts, Touch Points
Maps, Media Sharing Websites,
Navigation, Search, Engines,
Transactions, Mobile Apps,
Dynamic Content, Email, Telephone,
User Generated Face-to-face
Content

Experience

FIGURE 2.1 The Digital Tourism Ecosystem

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Digital Tourism Ecosystem

Digital Technological Environment
 Devices
 Connections
 Content
 Touch Points
Roles of Entities and Communities
 Catalyzers
 Dictators
 Milkers
 Niche Players
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Digital Tourism Ecosystem

Ecosystem Functions
 Inspiration
 Transaction
 Experience
 Reflection
Ecosystem Health
 Productivity
 Robustness
 Diversity
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INDUSTRIAL ELECTRIC DIGITAL FOURTH

PERFORMANCE

REVOLUTION REVOLUTION REVOLUTION REVOLUTION

Artificial
Intelligenc
e
Digital
Networks

Electronics

Electricity
Steam Power

Mechanization

1780 1840 1900 1950 1990 2020 TIME

FIGURE 2.2 Waves of IT Adoption

Source: Schumpeter (1934), Perez (2002)
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WebCrawler,
Netscape Baidu Google Oculus Rift,
Google .travel Images, Siri HoloLens
Search Skype domain
Mosaic Web 2.0 Wikipedia, Google Glass,
Browser Hotmail coined iPod iPhone iPad Amazon Echo
Internet & Technology
Developments

Del.icio.us,
LinkedIn, Instagram,
Tencent Dot.com bubble YouTube Pinterest, Apple App
WordPress, Amazon
Reddit iQiyi Store 40bn
Alipay, Cloud (EC2) Facebook 1bn downloads
Alibaba, Taobao Uber, Weibo, users
Napster, Twitter,
eBay, Netflix YouKu, WhatsApp,
Amazon Blogger, PayPal Quora WeChat, Tik Tok
Facebook Spotify
QQ Twitch eCommerce & Social
Media Developments

Expedia, TripAdvisor Expedia buys

Travelocity, Priceline buys Travelocity, Orbitz,
Booking.com, Ctrip,
TravelWeb & HotelTonight HomeAway
ITA Software Farechase
Metasearch Booking.com
Roomkey,
TravelWeb Kayak, Airbnb Priceline Priceline buys
OpenTable Orbitz HomeAway
Viator buys Kayak OpenTable
Priceline Tourism & Hospitality
Industry

1995 2000 2005 2010 2015 2020 TIME

FIGURE 2.3 Important Developments on the Internet
Adapted from Xiang et al, 2015
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Diffusion of Innovations Theory Rogers, 1962

 Innovators: eager to try new ideas and prepared to take risks

such as adopting technologies that may fail.
 Early adopters: opinion leaders who embrace change but are not
as obsessive as innovators.
 Early majority: tend to adopt new innovations before the average
person but will thoroughly research a new innovation before
deciding to adopt.
 Late majority: will only adopt an innovation after the majority
have tried it and adoption may be the result of economic necessity
or social pressure.
 Laggards: traditionalists and are the last to adopt an innovation
because they are skeptical of change.
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EXPECTATIONS/VISIBILITY

‘Early adopters’
adopt products

Negative publicity
Supplier proliferation

‘Early majority’ start to

Mass media hype adopt product triggering
high growth phase
Supplier New paradigms and
failure/consolidatio practices become accepted
‘Innovators’ adopt products
n 3rd generation
1st generation products
products (expensive) New rounds of
venture capital
2nd generation
Startup firms products

R&D

Peak of
Technology Trough of Slope of Plateau of
Inflated
Trigger Expectations Disillusionment Enlightenment Productivity

TIME

FIGURE 2.4 Gartner Hype Cycle

Adapted from Tarkovskiy (2013)
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Understanding the Digital Tourist

 Technology Use and Acceptance
 Demographics
 Trip Characteristics
 Psychographics
 UTAUT
 Use of IT in the Travel Process
 Information Search
 Trip Planning
 Purchase
 Methods for Understanding the Digital Tourist

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High tech and high touch travelers

Everyday life
High tech High touch

High tech Spillovers Opportunity Seekers

Travel

High touch Compensators Luddites

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Understanding the Digital Tourist

Quantitative sources Mixed-methods sources Qualitative sources

Traditional surveys Content analysis Interviews

Online surveys/polls Sentiment analysis Focus groups
Web analytics Data mining Netnography
Experiments Observation
Visitor tracking Prototyping
Biometrics

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Discussion Questions
1. In 2007 the World Economic Forum released three scenarios
of digital ecosystems, which are summarized in the following
YouTube video: http://youtu.be/jnrAtXt3uu4/.
Considering IT developments since 2007, which one has been
the most accurate? Justify your answer and discuss the
implications for IT and tourism.
2. Speak to someone who works for a company in the
hospitality or tourism sector regarding their adoption and use
of a specific, important technology. According to Rogers’
Diffusion of Innovation Theory, which category (i.e.,
innovator, early adoptor, early majority, late majority, and
laggard) do you think they belong to? Why?
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Discussion Questions
3. Conduct your own research about the major generational
cohorts alive today (Baby Boomers, Gen X, Gen Y and Gen
Z). Do they differ in how they use technologies? Are older
consumers as likely to use IT for travel purposes as younger
consumers?
4. Provide examples of how the use of technology can deliver
both high-tech and high-touch outcomes.
5. What are the key elements of the TAM? Provide your own
tourism and technology example to illustrate the various
components of this model.
6. In this chapter we used AirBnB to illustrate the concept of
disruptive innovation. Identify another example of
disruptive innovation in tourism and use Christensen et al.’s
model of low-market/new-market footholds to justify your
example.
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Useful Websites

American Society of Travel Agents (ASTA)

www.asta.org

Inspirock
www.inspirock.com

World Economic Forum Digital Ecosystems

www.weforum.org/reports/digital-ecosystem-convergence-between-
it-telecoms-media-and-entertainment-scenarios-2015

Our World in Data: Technological Progress

ourworldindata.org/technological-progress

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Case Study Airbnb

 Problems with hotels:
 Hotel chains build brand around consistency and standardization
 Standardization creates sterile and impersonal experiences
 Hotels are expensive to own and manage
 The solution?
 Provide accommodation that is not standardized and requires no investment in
real estate or workers.
 Founded in 2008 … by mid-2012 bookings reached 10 million
nights and by 2018 more than 4 million properties were listed
in 191 countries
 Disruptive innovation
 New technologies
 New business models
 New value chains