E-tourism in England › 2008 › 02 › e-tourism-in-engl… · England’s tourism businesses...

E-tourism in EnglandA strategy for modernising Englishtourism through e-business

ENGLISH TOURISM COUNCIL Tourism Technology / July 2002

AcknowledgementPreparation of this strategy has been guided by the Tourism Technology Working Group,which comprises representatives of the English Tourism Council, British Tourist Authority,Regional Tourist Boards, Local Government Association, Tourism Management Institute andother destination management experts. Dr Roger Carter and Gaelle Renault of TEAMprovided significant input into the drafting of the strategy.

Published by the English Tourism Council

Thames TowerBlack’s RoadLondonW6 9ELTel: 020 8563 3000www.englishtourism.org.uk

© 2002 English Tourist Board

The English Tourism Council (incorporated under the Development of Tourism Act 1969 asEnglish Tourist Board) is the strategic body for tourism in England

The information in this publication is given in good faith and every effort has been made toensure its accuracy. All liability for loss, disappointment, negligence or other damagecaused by reliance on the information contained in this report is hereby excluded.

Contents

Foreword 31. Executive summary 42. Introduction 73. Background 94. Stakeholder and customer requirements 145. Strategic options 186. Key roles in support of e-tourism development 217. An agenda for action for e-tourism 268. Monitoring and evaluation 33Appendix 1 Definition of terms 344Appendix 2 E-tourism in other countries 355Appendix 3 Market analysis 36Appendix 4 An e-business model for destinations 44

Foreword

Nobody can be world-class without good data. The availability of easily accessible, prompt,accurate, relevant information underpins all our efforts to create a fully competitive, healthytourism industry in this country.

This is not just a question of email and the development of websites. What is required is fullintegration of information between national, regional, and local systems. We need to makesure that information on accommodation quality and availability in one part of the countrycan be seen together with the full array of tourism attractions and activities in that Region,and considered in the context of, for example, transport to and from the area.

Fortunately, we do not need to reinvent the wheel. There are many excellent destinationdatabases around the country. What is required is to join them up, regardless of theirparticular systems technology, and create a national system which can be used withoutdifficulty by tourism providers, national bodies, the government and, not least, the tourismcustomer.

The key to delivery of this strategy is EnglandNet. EnglandNet is a partnership, created bythe English Tourism Council in close association with the Regional Tourist Boards and otherinterested parties. It has been supported by government funding, and welcomed by theindustry at large. It is arguably the most important development within tourism at thepresent time. I very much hope that this strategy will provide a framework for the manyorganisations involved in English tourism to develop their own response to the newopportunities that EnglandNet will open up.

Alan Britten

4/44 A strategy for modernising English tourism through e-business – July 2002

1. Executive summary

England’s tourism businesses have the capacity to become world leaders by better use ofinformation technology. We want to see tourism in England becoming more competitiveand profitable as it realises the new market opportunities afforded by e-business. Thisphilosophy will extend way beyond usage of e-mail and development of websites and willimpact on virtually every element of the business process. Proper integration betweennational, regional and local systems will become a reality, producing enormous advantagesfor both the consumer and the tourism industry.

The growth of information and communications technology (ICT) in tourism has beenpatchy and inconsistent. Many businesses, especially the smaller ones, have beenunderstandably reluctant to invest in something that they see as non-essential. At local andsub-regional level, many tourism destinations – mostly local authority run or sponsored -have implemented systems initially designed to provide better information, but laterextended to cover marketing, administration and research. While many of these arecomprehensive for the destination, there are a number of different software solutions inuse and there is little co-ordination between them.

More recently, Regional Tourist Boards (RTBs) and Regional Development Agencies (RDAs)have started to address these issues and several have produced regional e-businessstrategies and initiatives to stimulate businesses to adapt. At a national level, ETC and theRTBs have collaborated on developing the EnglandNet project, through which the regions,ETC, the British Tourist Authority (BTA), Destination Management Organisations (DMOs),Tourist Information Centres (TICs), other tourism organisations and individual tourismbusinesses can all share information via a national network.

The way forward

Our strategy for e-tourism in England is to provide a framework within which England’stourism businesses can become more competitive and profitable. This framework will servethe needs of the consumer, offering new market opportunities and a wider range ofbooking options. The solutions deployed must be simple to use by both businesses andconsumers, easily accessible and capable of taking advantage of emerging technology suchas digital interactive television and new generation mobile devices.

This strategy proposes a federal approach that would allow local destinations and tourismproviders to exchange information within a nationally co-ordinated, online tourismnetwork, while still maintaining the integrity of their own systems.

The core infrastructure will be provided by EnglandNet and will include:� Community Building services to will enable businesses, professionals and consumers to

interact more effectively with each other.� Content Management services to enable tourist boards to acquire, edit and publish

tourism information for marketing.� E-commerce services to enable end-consumers and re-sellers to access the whole

tourism product of England, search, book and pay for it through a single application.

EnglandNet will help tourism businesses and organisations to make the most of commercialopportunities as well as enabling them to use new forms of marketing. Ultimately,EnglandNet will also ensure that tourists can access well-organised, comprehensiveinformation via a wide range of traditional and new media channels. It will provide live real-


time content on the availability of accommodation, tours, transport and ticket bookings,and enable this to be combined and presented in exciting new ways to meet the needs ofdifferent markets.

For tourism providers and businesses, the vision is to make the inputting and sharing ofinformation much simpler, while at the same time making bookings much easier to receiveand fulfil. Improved business contact may also lead to the development of new productsand joint marketing initiatives. The end result should be the provision of better informationwith less duplication of effort.

An agenda for action

The strategy sets out an action agenda under the following headings:

1. Realising the potential of electronic marketing. To do this we will:� Redevelop the TravelEngland website with full e-commerce services� Improve distribution of England tourism information via other websites and new media

channels� Extend Destination Management System services to areas not yet effectively covered� Encourage Customer Relationship Management as an aspect of destination marketing� Explore marketing partnerships with private sector players.

2. Modernising information services offered to consumers. To do this we will:� Develop web-based network services to link TICs, DMOs and RTBs� Build local online communities linking tourism providers, DMOs, RTBs� Explore the delivery of visitor services through other new technology channels.

3. Enhancing the competitiveness of businesses and suppliers. To do this we will:� Develop an interactive business-facing web portal� Integrate tourism content within other regional and national information services, and

support business-to-business developments� Develop other online tourism community services and online tools for tourism providers.

4. Developing standards for the comprehensive tourism information. To do this we will:� Develop and promote a full e-commerce interoperability standard for England, to

enable DMO services, EnglandNet and BTA distribution systems to be linked� Enable tourism product data to be collected and managed electronically.

5. Helping stakeholders to make wise investments. To do this we will:� Provide guidance for tourism businesses and organisations via ETC and RTB websites� Provide EnglandNet training and awareness activity for DMO staff� Deliver a programme of e-business awareness and training for small tourism businesses.

These are set out in more detail with responsibilities for delivery, including a summary ofEnglandNet delivery milestones, in section 7.

Finally, the strategy sets out proposals for monitoring progress, including websiteperformance evaluation and benchmarking, consumer and business user research.


Monitoring trends in e-business solutions, and benchmarking England with other leadingcompetitor tourism destinations is also a part of this strategy.

Conclusion

The success of this strategy depends on our ability to deliver a national e-tourism systemthat can meet the needs of both consumers and industry. In many respects, those needs arethe same: the availability of timely and accurate information delivered by user-friendlymeans.

The EnglandNet project is proposed as the core solution to meet this requirement, offeringthe means to connect with many existing information systems to achieve an unprecedentedlevel of industry integration.

To achieve this will require the active support of the full range of players involved in Englishtourism. New levels of collaboration between all tourism stakeholders and supportorganisations, including Government departments and agencies involved in transport,countryside, business support and culture will be crucial.

Funding support at national level will also play a vital role. By securing new resources wecan ensure that the necessary co-ordination is achieved, resulting in reduced duplicationand the infrastructure English tourism needs to succeed.


2. Introduction

Tourism is a major component of the English economy contributing some £64 billionannually and representing one in seven of all jobs. It is a vibrant industry that comprisessome 120,000 businesses, 90% of which employ ten or fewer people. In common withother sectors, the industry needs to take stock of the revolution in communicationtechnologies and must adapt as a result of the emerging ‘digital economy’.

Some 38% of all UK households are now able to access the Internet from home, with traveland tourism the single largest category of products sold electronically. This growing use ofthe Internet provides massive opportunities to reach new markets and to improve businessefficiency. In addition, e-tourism can make the industry stronger and more able to respondpositively to crises such as foot and mouth and the events of 11 September 2001.

The tourism industry is hindered, however, by a lack of joined up communication facilities.The principal challenge is its fragmented nature, reflecting the predominance of very smallbusinesses, making communication and consolidation of information difficult both withinthe industry and to consumers. National and Regional Tourist Boards (RTBs), DestinationManagement Organisations (DMOs) and Tourist Information Centres (TICs) need to harnessnew electronic marketing opportunities, to make it easier for consumers to purchase theEnglish tourism product.

This strategy sets out a framework within which tourism in England can make best use ofnew information and communications technology. In turn, this will enable English tourismto realise new opportunities, to provide more effective visitor services and to enhance theperformance and competitiveness of the industry.

2.1 Context

The English Tourism Council (ETC) is the statutory body charged with developing Englishtourism. It is committed to developing an industry that strives for high quality, is responsiveto market needs and promotes wise and responsible growth throughout the whole of thetourism industry.

Given the profile of new electronic media as marketing and distribution channels, one ofETC’s key priorities is to focus on the potential of e-business and to work towards solutionsfor the industry as a whole. This priority fits well with wider Government objectives ofaccess, adoption of information and communication technologies (ICT), and support forsmall business.

ETC is working in partnership with the RTBs and others to develop EnglandNet. This projectis described further in section 6 and will create an online tourism network linking Englishtourism regions, destination information systems and new e-business services, to benefitconsumers, tourism providers and destinations.

2.2 The definition and concept of e-tourism

The term ‘e-tourism’ is used in this document to refer to e-business in the field of travel andtourism – ie the use of ICT to enable tourism providers and destinations to operate moreefficiently, and to reach and serve consumers more effectively with facilities to search,compare and book tourism products. A more detailed definition is set out in Appendix 1.


E-business not only embraces the use of new media, such as the Internet and e-mail, butalso enables more efficient use of traditional media such as brochures and advertising. Itincorporates the ability to conduct sales online, with fundamental implications for the waybusinesses work. E-business has the potential to transform the way in which businesses ororganisations function, through integrating systems for management of stock or availability(eg of hotel rooms), procurement of supplies, financial administration, marketing, sales andother transactions.

The Internet provides direct access to consumers, and is also a tool for business to businesscommunication. Increasingly, it will provide consumers and intermediaries with far richerinformation, increased choice and the facility to make bookings immediately. It will alsooffer tourism organisations and businesses the tools to promote, communicate and transactwith consumers and other tourism businesses.

2.3 Strategic vision and aims for e-tourism in England

2.3.1 Our vision

Our vision is for England’s tourism organisations and businesses to become morecompetitive and profitable, capable of realising the new market opportunities afforded bye-tourism, and skilled in using e-business technologies. We shall play a major part inachieving this vision through the creation of the EnglandNet online tourism network,integration of regional and local destination management systems and initiatives topromote e-business awareness and skills development.

2.3.2 Our aims

• To mobilise effective organisational and technical responses to assist the industry,especially small tourism businesses, adapt to the new e-business environment

• To improve the collection and distribution of comprehensive and appropriate tourisminformation to meet the needs of consumer growth markets

• To improve business processes for marketing, booking and purchasing of tourismproducts

• To adopt the most appropriate communications and technology solutions to supportthe above

• To achieve a fully integrated e-business network for English tourism.


3. Background

In tourism, as elsewhere, the growth of ICT has been sporadic and sometimes reactive. Alack of resources has stunted development, while the absence of any national strategy hasmeant that systems have emerged on an ad hoc and uncoordinated basis. However,products such as central reservations systems (as used by travel agencies) havedemonstrated that with proper planning and funding, ICT can both improve consumerservice and improve the efficiency and profitability of businesses, large or small.

At the local and sub-regional level many English holiday destinations have systems whichwere initially introduced to help TICs to offer a better service. Local authority support hasplayed a key role in this development. Over the years, this support was extended to includemarketing, administration and research. With few exceptions, each destination operated itssystem independent of other destinations, with little or no electronic communicationbetween them.

Towards the end of the 1990s, as awareness of the importance of the Internet and e-business increased, RTBs became more active and most developed regional websites. Morerecently, ETC has collaborated with the BTA in the development of a new national tourismproduct database (‘Jigsaw’) to manage basic descriptions of tourism products and enablesuch data to be entered, imported and distributed through the Internet. The English part ofthis project will be integrated into the wider EnglandNet framework.

3.1 The present position

How are tourism businesses adapting to the opportunities of e-business? Although emailand websites are only the tip of the iceberg, they can still be useful indicators todemonstrate the likely predisposition to e-business. National level data in Table 1 shows thefollowing pattern for the adoption of the Internet by tourism businesses in England.

Table 1: Adoption of the Internet by English tourism businesses*

Sector(all totals at Jan 02)

% withemail(Feb

2001)

% withemail(Jan

2002)

% withwebsites

(Feb 2001)

% withwebsites

(Jan 2002)

% withonline

booking(Jan 2002)

Serviced (Hotels, B&Bs)Total: 16, 631 45% 58% 33% 45% 2%

Self CateringTotal: 8,951 47% 63% 38% 51% n/a

Camping andCaravanningTotal: 1,179

40% 52% 43% 60% n/a

Youth and GroupTotal: 666 62% 72% 47% 67% n/a

AttractionsTotal: 5,503 33% 48% 36% 53% n/a

EventsTotal: 7,394 50% 56% 47% 59% n/a

Averages 46% 58% 41% 56% n/a* English businesses and suppliers participating in the BTA/ETCtourism product information database.


Source: BTA/ETC 2002

It is apparent from this table that over half of tourism businesses now have a website andgrowth has been significant over the last year. However, only 2% of servicedaccommodation businesses covered by this survey offered online booking, probablyreflecting the large proportion of small guest accommodation operators represented here,for whom e-commerce represents a further stage of adaptation.

As may be expected, the level of e-business activity in the hotel sector is more substantial,although a recent survey revealed that 42% of hotels surveyed did not have a formal e-business strategy.1 Most major hotel groups and holiday operators now offer onlinebooking facilities that are linked to inventory management systems which also support callcentre and front desk operations. Commercial travel agencies have used extensive (andexpensive) computerised reservation systems linked to air travel carriers and major touroperators for many years, largely supporting outbound travel.

The development of the web, with its lower operating costs, has resulted in the emergenceof new web-based booking agents such as Travelocity and LastMinute.com. Increasingly,hotel group systems and traditional travel agency systems are being linked to such web-based systems. It remains difficult, however, for the smaller tourism providers to link to suchsystems, which generally require guaranteed room allocations or continuous connection tohotel management systems. The result is a patchwork of separate systems offeringselections of tourism products rather than a coherent and comprehensive market place inwhich consumers can readily search, compare and book.

The immediate challenge therefore is to provide a coherent e-business framework fortourism in England. The smaller enterprises will then need to be convinced that e-business isworth investing in and the larger businesses persuaded that they can also benefit fromaligning themselves with such a national system.

3.2 Lessons learnt from abroad

Not surprisingly, since e-business is a global issue, many other countries have invested in e-tourism. A review of experience in other countries (described in Appendix 2) reveals thatseveral countries have adopted some form of collaborative national and regional approachto product data management as a platform for web-based marketing and distribution.These precedents, whilst different in structure and degree of integration, support the‘federal’ strategy proposed for England. It also makes sense for England to achieve as muchconsistency as possible with the database structures being developed in Wales andScotland.

3.3 Key trends in e-business

A full analysis of trends in the use of the Internet and e-commerce is set out in Appendix 3.The key market trends:• Use of the Internet has been increasing dramatically around the world – nearly ten-fold

over the past six years. Growth is forecast to continue for the next five years, with web-enabled mobile devices helping to stimulate this trend. It is not yet clear when this is

1 Hospitality e-Business: the Future, June 2001.


likely to reach saturation point or maturity, but some 39% of all UK households arenow able to access the Internet from home.

• Increasing proportions of Internet users are buying online, with a predicted 32% of UKusers forecast to use the Internet for retail transactions over the next five years.

• Travel and tourism will gain an increasingly large share of the global online commercemarket, from an estimated 30% today to around 50% in the future.

• The dominance of air travel has reduced from more than 80% four years ago to about60% now, whilst hotels’ share correspondingly has doubled to nearly 25%.Accommodation, car hire and other ground-based products will gain a larger share ofglobal online commerce in travel and tourism.

• User profiles broadly match the target markets of many tourism organisations – Internetusers tend to be relatively wealthy, well educated, and interested in independent travel.

Data from the Office for National Statistics about Internet usage concludes that:

There is a consistently high (43-52%) level of Internet usage amongst all age groups up tothe age of 55. Older people have a lower (but certainly not insignificant) level of usage –almost one third of those up to 64 and one-sixth for those 65+.

Usage increases consistently across the social groups, from 18% of socio-economicclassification DE (low income) to more than 60% of ABs (professionals).

Whilst three years ago, some 35% of women were Internet users compared with 42% ofmen, the gender gap has been closing. By October 2001 this had climbed to 51% ofwomen and 55% of men.

3.4 The economic benefits of e-business

The economic benefits of e-business arise from gains in operational efficiency andmarketing effectiveness. These benefits are virtually impossible to estimate accurately, but,in broad terms, it is reasonable to predict an increase in productivity (including efficiencygains and value added) of between 25% and 33%. Specific productivity benefits couldinclude financial gains, cost savings and non-financial benefits, particularly in areas likebusiness administration and marketing costs:• Potential areas to enable additional income generation will include sales of tourism

products such as accommodation and short-term special offers via the web, electronicmail and other new media channels.

• Potential areas for cost savings could include reduced costs for publications - productioncosts, print runs and distribution; and savings in staff time – print production, enquiryhandling, reservations, communications, etc.

• Potential areas for non-financial gains will include increased marketing effectiveness andquality of customer service and relationship; increased productivity; and enhancedperformance and better evaluation mechanisms.

Whilst there would also be additional costs associated with e-business, such as online salescommissions, the net impact is likely to be positive.


3.5 Barriers to tourism e-business

The main barrier to maximising the potential of e-business is that a significant proportion oftourism businesses are not proactive in their use of technology and the Internet and appearto have a limited awareness of the scope of e-business. Allied to this is the fact that thewhole online process can appear intimidating, time-consuming and financially prohibitive tosmaller businesses. Thus, whilst electronic trading in tourism is a growth area for largeroperators, it is much less so for many small tourism businesses that make up the bulk of theindustry.

The lack of e-business awareness and skills among UK tourism businesses is confirmed bythe results of a survey undertaken by ETC in 2001, on the use of ICT by accommodationmicro-businesses. The survey reveals that the majority of very small businesses (ie under tenemployees) have limited knowledge of ICT and do not use it to its full potential2. The surveyalso suggests that the main barriers preventing micro-businesses from using ICT are cost,lack of knowledge, lack of time and a belief that the existing methods of gaining businessare satisfactory.

In addition, there are other barriers to successful adoption of e-business including:• the lack of a viable e-business environment – no integrated network within which

smaller tourism providers can work cost-effectively and easily with existing web-basedbooking systems

• a variety of tourism data formats that work to limit ‘interoperability’ (ie systems workingwell together) – instead several different systems that are not connected are used bydestinations, hotel groups or tourism operators

• a lack of integration of tourism data and e-commerce tools – much tourisminformation is as yet unconnected to effective real-time booking and transactionscapability

• a variety of models for holding inventory (eg bed spaces to sell) and bookings have beenadopted by destinations and commercial operators, with limited ability for these towork together seamlessly

• the cost for businesses in adopting individual solutions – with no guarantee that thesesolutions will meet consumer needs or reach appropriate markets

• limits on telecommunications bandwidth in many parts in many parts of the country,constraining the quality of online services – a problem that is unlikely to be fullyresolved until 2005

• restrictions on local authority funding, which impact on the resources available forpublic investment in ICT and staffing – thus making it difficult to rely on the DMO/TICstructures as the cornerstone that they ideally should be.

To succeed, then, the strategy must offer solutions that overcome these barriers and enableeasier access both for visitor information and business-to-business communication.Ultimately, such a system must deliver the capability for booking on-line, advertising, datagathering and other e-commerce benefits. The aim of the EnglandNet project is to createan online tourism network that directly addresses or helps to resolve many of theseproblems.

2 Unpublished. These findings are confirmed by other recent published research, for example by Blum andFallon, and Main, in Information Technology and Tourism, Vol. 4, Cognizant Communication, 2002


This strategy and the EnglandNet project are both ambitious and it is reasonable toquestion how it can be achieved. The answer is by adopting a step-by- step approach, withthe focus on:• establishing the ICT and database infrastructure to provide a platform on which

different players can organise their own activity, with assistance from EnglandNet• encouraging participation by destinations, by enabling them to connect easily to the

EnglandNet infrastructure for purposes of data exchange – and then to use theEnglandNet services as much (or as little) as they choose, in relation to their ownexisting systems.


4. Stakeholder and customer requirements

4.1 The potential stakeholders and customers

The model set out in Appendix 4 identifies the different categories of users of destination e-business systems. In turn, these can be split into customers and stakeholders. The customersinclude:• Consumers• Travel trade• Travel media• Conference and event buyers and other intermediaries.

The stakeholders include:• Tourism businesses• RTBs and local destination management organisations (DMOs)• TICs (and destination call centres)• Suppliers of destination management systems• Suppliers of goods and services to tourism businesses, eg food, laundry, furnishings, etc.• Suppliers of e-commerce services, eg e-payment services.

4.2 User requirements

Users have two basic needs: for information and for an effective process for conductingbusiness.

4.2.1 Consumers

Consumers and travellers visiting destination websites are looking primarily for in-depth,up-to-date information on potential destinations, activities and accommodation. Thefacilities to create travel itineraries, receive ‘instant’ offers, compare prices, confirmbookings and share experiences will become an increasingly important feature of demand.Thus, the key requirements for consumers are:• Fast, low cost, direct access to accurate information, with facilities for sophisticated

search and for immediate, secure booking at competitive prices• Clear product pricing, eg per room, per traveller, supplements, final price, etc• Tourism product quality assurance from recognised standards bodies• Access to alternatives to direct booking such as:

- call centre support for completion of the booking- online travel agencies/resellers for completion of booking

• Enhanced visitor services for travellers to and within the destination, through theprovision of electronic access to comprehensive information and reservation servicesfrom PCs or TVs in hotel bedrooms, Internet cafés, kiosks, web-enabled payphones,handheld cellular devices, etc.

• Where people are using these services in the destination, they will seek additional typesof information, for example, local transport, entertainment, events, restaurants, bars;information that may be available through DMS or from third party commercialsuppliers.


4.2.2 Travel trade

Potential requirements of the travel trade (tour operators, travel agencies, handling agents,etc) include:• efficient search for accommodation, attractions and other facilities – often with a focus

on group travel• ability to negotiate allocations and release dates, prices, commissions/net prices, and

other sales terms• mechanisms to contract quickly and cost-effectively• quality assurance from recognised standards bodies• access to local handling agents• opportunities for formation of local/regional product consolidation and distribution• opportunities for domestic promotion to consumers• easy access to relevant still and moving image material for use in promotions.

4.2.3 Travel media

The travel media’s prime requirement is for:• information on latest product developments• information on quality assured product• well-researched material which can be used for features• easier contact with experts on a wide range of subjects• easy access to relevant still and/or moving image material.

4.2.4 Conference and event buyers and other intermediaries

Many RTBs and DMOs, particularly those that cover large urban areas, place considerableemphasis on business tourism. Given that a relatively large proportion of both buyers andsuppliers are likely to use ICT on a day-to-day basis, the potential for e-business in thissector is considerable. The conference buyer or intermediary will generally be seeking:• efficient search and selection of appropriate destinations and venues – often against a

very detailed set of requirements – the information for which may best beaccommodated in supplementary databases

• mechanisms to contract quickly and cost-effectively• promotional material to assist in the e-marketing of conferences.

4.2.5 Tourism businesses

The core requirements of businesses are relatively simple – more business, higher yield,lower costs and increased profits. Behind these high level objectives are specific needsincluding extended marketing and increased operational efficiencies. While businessesshould be active in their own right, they will also attract new business by working with orthrough their local DMO.


Tourism businesses will be marketing-focussed and will seek:� Cost-effective access to powerful distribution mechanisms. Tourism businesses need

distribution mechanisms which are appropriate for their products. Distribution servicesshould:- Enable control of distribution channels- Enable online control of prices and availability- Enable control of automatic confirmation or confirmation after intervention by

reception staff- Offer distribution to re-sellers with negotiation of sales terms- Secure and cheap payment/clearing mechanisms- Clear and up-to-date back-office services- Be supported by call centre services.

• Support from DMOs for linking up with other complementary local products,destination marketing and fulfilment (eg brochure distribution, TIC booking services).

4.2.6 RTBs and local DMOs

E-business has the potential to permeate virtually every area of the work of RTBs andDMOs. Most have a destination marketing role targeted at consumers and travel tradeintermediaries. Additionally RTBs and many DMOs require access to data to underpinresearch and business support activities. Local authorities also have a requirement todemonstrate value in the delivery of their services. Particular needs include:� Increase in number of clients/members from an enhancement of the services they can

offer, eg e-commerce services, national and international distribution� Increase in the value of clients/customers by charging appropriate commissions or

subscriptions for enhanced services� New revenue opportunities from consolidation of local and regional product� New revenue opportunities from provision of call centre services integrated within a

national call centre network� Integration of new marketing services with distribution of bookable, quality assured

product� Facilities to enable the building of online communities to support local/regional product

creation, marketing and sales� Effective communication and co-operation between public sector bodies involved in

providing services to SMEs and consumers� Easy access to national information on tourism products and services� Ability to market cost-effectively.

4.2.7 Tourist Information Centres

TICs (and destination-based call centres) deal primarily with public enquiries. They aregenerally dependent upon local authority funding to support their services. TICs havespecific requirements:• to quickly search in-depth, up-to-date, accurate information (including special offers) on

available accommodation, activities, events and many other topics – and createschedules and map-based itineraries

• to make immediate bookings, based on accurate price information• To open new revenue opportunities via integration of call centre facilities with online

booking mechanisms


• To be integrated into a national TIC network to obtain advance bookings from nationaland international customers.

Whilst demand may be mainly for local information, most TICs need to be able serviceenquiries about other parts of their area or elsewhere in England – and therefore to haveaccess to the national database and to be able to communicate quickly with TICs in otherareas.

4.2.8 DMS suppliers

Destination management systems are specialised software applications which provide thefoundation for the management of destinations, enabling tourism product information toused to support marketing and visitor services and for the provision of up-to-date dataenabling online booking. The suppliers of DMS software require a market that encouragesinvestment in technical improvement and adoption by DMOs not yet covered. The creationof a national Englandnet infrastructure with open interoperability standards would enableDMS suppliers adopting these standards to offer DMOs the added confidence of nationaldistribution in addition to the other competitive features of their systems.

4.2.9 Suppliers of goods and services

The suppliers of goods and services to tourism businesses are faced with the costs andinefficiencies of dealing with a highly dispersed and diverse range of relatively smallcustomers. If tourism businesses had online access to supplier catalogues for product searchand price/delivery comparisons and ordering, the suppliers and procurement companieswould have wider and cheaper distribution. They may also be able to plan and providecheaper logistics. Enabling such a procurement service could be built into the EnglandNetnational infrastructure.

4.2.10 Suppliers of e-commerce services

The take-up of e-commerce services by tourism organisations has been hindered by the lackof data and systems that work together. This has held back the development of e-tourismservices, which need a set of national standards to be fully effective. The consequence isthat cost economies and breadth of supply of e-commerce services have not yet beenachieved. National standards, driven by the requirements of EnglandNet will hasten thecreation and use of payment and back-office services.

4.2.11 Commercial operators not primarily involved in tourism

This category is made up of organisations and companies that are not primarily involved intourism but would benefit from access to tourism data, for example:• Distribution organisations – those that could publish England product data through

their own distribution routes, for example, Internet service providers or mobile phonecompanies.

• Content providers - those that could provide appropriate content to enhance the mainsystem, for example a train operating company.

• Data merchants - those that would pay for the use of the database content for theirown commercial purposes, for example media production companies.

• Travel goods suppliers, for example hotel furnishings suppliers.


5. Strategic options

Over the past fifteen years, there has been a considerable investment in systems to collect,monitor and manage data at local, regional and national level. In determining the mostappropriate strategy for e-tourism in England it is important to recognise that this does notstart from a ‘blank sheet’ - the key requirement would therefore appear to be the creationof a framework that can build upon what has gone before.

This strategy addresses the issue of how best to deliver an integrated or joined-up structurethat will enable consumers and tourism providers to benefit at local, regional and nationallevels. A key strategic objective is therefore to enable comprehensive searching, planning,reservations, bookings and payments for tourism products to take place via the Internet andother communications channels such as TICs, call centres, mobile devices and interactive TVservices.

The core of any such structure will be some form of destination management system (DMS)– a combination of data management software, search engine, booking and transactionsfacilities, all operating within a viable business model.

There are three options for the development of a national e-tourism strategy for England:� A ‘minimum intervention’ approach that relies upon the continuing development of a

diverse range of local and regional systems and commercial online reservation services� The development of a complete integrated national system� The development of a federal model, with a national network infrastructure and

services designed to work with existing and emerging systems.

The relative merits of these approaches are considered briefly in the following sections.

5.1 A minimum intervention approach

This option would rely upon the continuing development of regional and local DMSsolutions and commercial reservation systems. The national BTA/ETC Jigsaw database wouldcontinue to be developed as a source of product information, and DMS software supplierswould be encouraged to adopt common data definitions that would facilitate dataexchange. Extensive data collection into Jigsaw would still be required and there would beonly limited capability for searching on product availability across England. Investmentwould be required develop a national web portal linking regions and destinations, and thiscould include a search engine to enable consumers to find products held in differentlocations. DMOs that do not yet have a local e-commerce enabled system would need toconsider this, without assurance that this would fully integrate with national distribution.

The adoption of this approach seems unlikely to achieve the e-tourism strategy aims ofenabling public access to comprehensive tourism content or helping small tourismenterprises to adapt to an e-business environment.

5.2 A national DMS

This option would seek to build or acquire a comprehensive national system comprisingdata management software, search engine, booking and transactions facilities. This wouldextend beyond the Jigsaw product information database into the hosting of a full productavailability (inventory) database and associated software to manage this highly volatile


information. Technically, this would be the simplest solution, and could potentially bedeveloped in partnership with a commercial operator, helping to spread the costs and risks.

The main drawback, however, would be that destinations with existing destinationmanagement solutions would not integrate directly into the national DMS and potentiallywould lose business to it. This is likely to deter the participation of destinations with well-established local systems, including most seaside resorts and major cities, and result induplication. It would also add inconvenience for tourism providers, who would need towork with either or both national and local systems. Such non-participation in the schemeseems likely to render this option unattractive to the main stakeholders, with consequentialreduction of the value to consumers. This would thus fall considerably short of a fullyintegrated English tourism industry.

5.3 A federal network approach

The federal approach combines the advantages of each of the first two options. It woulddeliver the infrastructure that would enable tourism product information to be shared via anational interoperability standard and a communications backbone. This would enable anational level of content integration and search capability to enable easy access to tourismproduct information at national, regional and local levels, including access to booking andpayment services. Much of the information would be maintained locally by RTBs, DMOs andTICs and exchanged via the communications backbone. DMS suppliers would beencouraged to participate in defining the interoperability standard, enabling them to offerDMOs integration with the national framework. DMOs not yet using such systems wouldfind it easier to do so.

This hybrid option seems more likely to attract the greatest uptake of destinations andtourism providers, bring most integration and access to the widest sources of productinformation for the consumer, and thereby maximise the success of the project. This shouldlead to an overall reduction in duplication of data collection and greater participation bytourism providers, leading to more cost-effective operation. As such, this option wouldappear to offer the best prospects for contributing towards the sustainability of localtourism services, most of which are dependent upon local authority support.

This is therefore the recommended strategic approach – one which was widely supported inthe consultation process – and forms the basis for the proposed EnglandNet Online TourismNetwork.

EnglandNet is therefore being developed by ETC and the RTBs, the organisations currentlyresponsible for managing national tourism data services in England, as the vehicle toimplement this strategy. It will be an industry-wide network offering a range of electronicbusiness and marketing services to the industry, and designed from the outset to work withexisting destination management systems at regional and local level. It is vital that theimplementation of this project should be mutually beneficial to all concerned, leading tostronger, more effective working relationships across the whole sphere of tourismdevelopment.

The EnglandNet objectives and proposed outputs are discussed further in section 6.

In adopting this strategy, EnglandNet must be realistic about the ability of all DMOs andDMSs to deliver the necessary input, whether in terms of quality or quantity. Inevitablythere will be situations where DMOs do not have the resources or, in some cases perhaps,the motivation, to deliver the input required within the federal approach. Recognising this,


RTBs will have an important role to quality assure the local input and operate back-upmechanisms to deal with any deficiencies or gaps in data provision.

5.4 Complementary activity

Complementary to EnglandNet, action will also be required to exploit other tourism-relatedcontent and features at regional and local level (such as countryside, leisure or events data),to provide consumer access through regional websites, publications and other channels(eg via libraries and local kiosk access projects). There is also a need for a sustainedprogramme of ‘Business Animation’ activity at local level to promote e-business awareness,skills and best practice for tourism providers, and stimulate participation in the onlinetourism network to enable access to inventories, reservation and payments facilities.

Diagram 1: Schematic illustration of the recommended strategic approach


6. Key roles in support of e-tourism development

As has been noted, significant work has already been undertaken in the development oflocal destination management systems within England. There is therefore much informationand expertise already available. However, there is also a natural reluctance to re-invest andto change business practices. If new systems are to be introduced successfully, the existingplayers must be involved in the process, invited to contribute expertise and offered solutionswhich fit existing frameworks.

Whilst there will be opportunities for commercially sustainable e-commerce developmentsonce EnglandNet is in place, a substantial part of the e-tourism agenda has wider, strategicobjectives - ie to enhance industry performance through the provision of widely-accessibleservices that do not directly generate income. There is therefore a strong case for publicfunding to support the essential core elements of the system.

The EnglandNet project will be the cornerstone for delivering the aims of the strategy,providing the central operating framework and the focus for co-ordinated action at regionaland local level. This needs to be complemented by efforts to raise awareness and skillsamongst tourism providers, especially the smaller businesses, to be able to take fulladvantage of electronic marketing and e-commerce.

6.1 EnglandNet

The fundamental aim of EnglandNet is to enable ‘one-stop-shopping’ for all England’stourism products. To achieve this, the project will pursue the following key objectives:• Create a national interoperability standard and infrastructure for England to connect

existing regional and local tourism information systems• Provide a secure and effective communication network for ETC and RTBs• Ensure that all destinations are able to adopt viable DMS services• Deliver high quality data to meet the service requirements of the BTA, ETC, RTBs and

other organisations concerned with tourism at national and local level• Offer an end-to-end booking service to end consumers and re-sellers.

The products of EnglandNet are therefore of three types:

Community Building Services: These will enable RTBs, DMO/TICS, ETC, BTA to promote thedevelopment of communities of travellers, traders, suppliers, providers via for forums etcwhich will encourage greater use of the other services offered by RTBs, DMO/TICs, ETC,BTA. The first example of a community service is the ENTICE TIC extranet.

Content Management System (CMS) services: This will enable BTA, ETC, RTBs, to acquire,edit and publish tourism information for marketing. Data for the CMS will be acquired viaweb forms and from online connections to DMSs operated by DMO/TICs and RTBs. TheCMS will also be used to support the community services.

E-commerce Services: This will enable end-consumers and re-sellers to access the wholeSME tourism product of England, search, book, and pay for it through a single applicationsuch as VisitBritain or TravelEngland. This will require EnglandNet infrastructure tointeroperate with the DMSs operated by RTBs and DMO/TICs. Interoperability musttherefore be developed for:


• DMSs and other content systems (also needed for the CMS service)• Third party e-commerce providers, such as e-payment service providers• Customer applications auch as the BTA/ETC websites.

In addition, a model has been prepared for a national virtual call centre based upon callcentre services operated by RTBs, DMOs and TICs. The objective of the call centre is tosupport the online booking services.

In general EnglandNet will provide:• Quality of Data management guidelines• model commercial contracts (eg between providers and DMS operators)• Quality of Service (SLA) guidelines for DMS operators• customer relationship management guidelines• Security guidelines• Will promulgate new opportunities for tourism providers, DMO/TICs and RTBs that will

arise from the online EnglandNet infrastructure.

The EnglandNet model envisages that data will be maintained on DMSs, with replication ofnon-volatile data (product descriptions) to the EnglandNet central database (which includesJigsaw). Customer bookings will require routing of the availability queries and bookingrequests to the regional/local DMSs.

EnglandNet will also offer hosting solutions on a remote-access basis, such as DMSs,financial management software, membership management or customer relationshipmanagement applications in order to reduce the maintenance costs to DMO/TIC, RTBs.

Achieving these outputs is expected to result in a range of tangible benefits:• Increased number of bookings and spread of bookings of tourism product in England• Increased value of product sold by enabling the packaging of product by the end-

customer and by re-sellers• Reduced net costs of marketing and distribution for small tourism businesses• Improved cost-effectiveness of marketing for BTA, ETC RTBs and DMOs• Increased revenue to help sustain RTB, DMO and TIC services• Improved community access to tourism information• Improved economic competitiveness and assist in delivering government e-business

objectives.

Substantive progress is now being made on the development of EnglandNet. Treasuryfunding has been granted to assist the development, and a Project Director and otherEnglandNet team members appointed. Construction of the core Content ManagementSystem is underway, and the ‘ENTICE’ TIC extranet has been built.

ETC and the RTBs will oversee the project via the EnglandNet Management Committee (orcompany board), while the RTBs will be responsible for promoting and providing itsservices, acquiring content and developing business opportunities within each region. Theexisting Tourism Technology Working Group will continue to have a consultative role.


As EnglandNet develops3, the potential for involving commercial partners will be explored,where this can bring added value in terms of technical development, marketing ore-business services. This is discussed further in the following section.

6.2 Public and private sector roles

The scope for attracting private sector support to invest in providing many of the servicesrelevant to this strategy was tested in market soundings and research carried out by ETC inearly 2001. Several companies have expressed an interest in being involved as suppliers inaspects of the EnglandNet project, but this has not extended to funding or underwritingany of the required core components. It is likely that only the public sector can make theinitial investment in the networking of tourism destination services because the openstandards and comprehensive nature of such work is not a priority for private sectorinvestment.

The most realistic approach would appear to be one which recognises the need to satisfybroader social and economic objectives and to upgrade and improve the professionalism ofthe whole tourism industry. There may well be potential for attracting private sectorinvolvement in future developments once the framework is in place. Options for publicprivate partnership should therefore be reviewed as EnglandNet progresses. The ability forEnglandNet to generate realistic revenue streams will help to attract such private sectorinvolvement.

The aim of any public-private collaboration should be to develop a sustainable future forEnglandNet that would keep the long-term public sector commitment to that necessary toensure that the core objectives of open standards and comprehensive coverage continue tobe fulfilled.

6.2.1 English Tourism Council

ETC is accountable to DCMS for the financial and management control of Governmentfunding for the EnglandNet project. As such it has a key role in overseeing the successfulimplementation of EnglandNet, including the establishment of the legal entity underpinningthe project in partnership with RTBs and in line with Government guidelines for publicprivate partnerships.

As the statutory national tourism organisation for England, ETC also has a leadership role insupport of e-tourism generally, which includes:• driving the development and exploitation of EnglandNet, and supporting activities such

as awareness and training programmes• guiding future marketing and e-tourism strategies in collaboration with national and

regional partners such as RTBs, RDAs and industry bodies• encouraging the adoption of common data standards by DMS software suppliers• liaising with BTA to ensure that opportunities for collaboration in technical

development, marketing and distribution of content are exploited effectively.

Operationally, ETC is responsible for ensuring that tourism data is collected and managed tomeet national requirements, publishing national ‘Where to Stay’ guides, and for

3 Up-to-date information on EnglandNet is available on the project website,www.englandnet.org.uk.


coordinating support programmes linked to EnglandNet, such as TIC modernisation ande-business awareness activities.

6.2.2 British Tourist Authority and UK National Tourist Boards

BTA’s objectives are to exploit new media and communications technologies with a view tomotivate and inform potential overseas customers about the whole of Britain and itstourism services and products. In addition to BTA and ETC collaborating on thedevelopment and use of tourism product data, other opportunities for joint working orcooperation should be explored where functional requirements are similar and efficiencysavings may accrue.

This should include collaboration on interoperability standards at national level. There is aparticular need for collaboration between BTA, EnglandNet, VisitScotland, Wales TouristBoard and the Northern Ireland Tourist Board to ensure that open data exchange standardsare applied, to enable ease of access to tourism information across the UK. Otheropportunities could include collaboration over the development of geographicalinformation systems, content distribution opportunities, customer interaction services, andresearch into the effectiveness of online services.

6.2.3 Regional Tourist Boards

RTBs will have a key role in managing the rollout of EnglandNet, including overseeing dataquality and managing the ENTICE rollout to TICs. They should also lead the delivery ofactivities to promote e-business awareness and skills, and improve businesses’ participationin EnglandNet.

Most RTBs have prepared, or are preparing, regional e-tourism strategies to guide thedevelopment and support for e-business within the region and the ways in which this canbe integrated with their own corporate plans.

Regional e-tourism strategies should set out clearly the way in which local datamanagement and network developments will relate to the national picture for England. Thiswill need to cover the way in which local data is defined, collected and quality-checked, andhow regional and local DMS solutions will interact with EnglandNet. To assist in this processseveral RTBs have also set up regional e-tourism/ICT working groups or forums, and areexploring collaborative opportunities with RDAs, DMOs and business support agencies.

6.2.4 Destination Management Organisations

DMOs invariably have the closest contact with local tourism providers, often made tangiblevia local TICs. Most DMOs have traditionally been operated or at least part-funded, by localauthorities, now under an increasing obligation to demonstrate how their services meetBest Value criteria. Some services could be reduced as this pressure increases. An effectivee-business strategy could assist the sustainability of DMOs by demonstrating how localservices can link into regional and national frameworks, reducing duplication and increasingmarket reach. DMOs have an important part to play in encouraging local tourism providersto adapt to e-business, and could assist this by supporting local ICT/e-business forums orbusiness advisory workshops. RTBs will be responsible for developing working relationshipswith DMOs as part of the rollout of EnglandNet and related regional ICT and trainingservices.


6.2.5 Regional Development Agencies

Regional Development Agencies (RDAs) have an increasingly important role in support ofregional economic development. This includes developing cross-sectoral ICT strategies forthe development of e-business and for the supporting communications infrastructurerequired. RDAs recognise the importance of broadband communications for regionaldevelopment, and seek to address the challenges of ensuring that remote rural areas arenot excluded from such services. Whilst the drivers for broadband networks may be thedata-rich requirements of health and educational services, rural tourism services could alsobenefit.

RDAs should therefore assist the development of e-business in tourism by considering:• The needs and opportunities for tourism within their own ICT strategies• The potential for tourism services to benefit from, and contribute to, communications

infrastructure/broadband initiatives – eg by strengthening the case for local informationintegration for residents as well as for visitors

• Supporting RTBs and DMOs in tourism information system implementation• E-business animation and training initiatives aimed at small tourism businesses• The needs of the tourism sector in the implementing of regional industry extranets or

online ‘portal’ services – including the need for access to specialist resources providednationally (eg via EnglandNet).

6.2.6 Other organisations

A number of other organisations have responsibilities relevant to the support of e-businessdevelopment, and should therefore be encouraged to support this strategy and play a partin delivering some of the supporting activities. These include the Countryside Agency, theSmall Business Service and UK online for business.

The Tourism Technology Working Group (TTWG), chaired by ETC and involving BTA, RTBs,the Tourism Management Institute, Local Government Association and otherrepresentatives, will continue to act as an advisory forum on DMO e-business issues. Itshould also be a consultative forum for EnglandNet to reflect the user requirements of localauthorities and other destination management organisations. It will also overseedissemination of information on project outcomes via regional workshop events and othermeans.


7. An agenda for action for e-tourism

A five-point agenda for action is proposed as a framework within which England’s tourismbusinesses and organisations can realise the opportunities offered by e-business.

7.1 Realising the potential of electronic marketing

The advent of Internet, mobile telephony and digital interactive television is having a majorimpact on the way tourism products are marketed and sold. The web can be a cost-effective medium for publishing information and providing a transactional capability forcustomers as part of a destination marketing strategy. Email conveys information directly,cheaply and at short notice to prime prospects. Electronic marketing enables organisationsto engage with customers on a one-to-one basis, and can be used also to promote ‘one-to-many’ activities, whereby large numbers of potential visitors can be attracted to adestination or company’s website.

‘E-marketing’ should, however, be undertaken in harmony with traditional ‘offline’marketing activities as part of an e-business strategy more closely integrating thepromotional, sales and fulfilment roles of websites, brochures and telephone supportservices. Campaign strategies will need to position the role of printed media alongsideelectronic marketing to maximise returns on investment.

One strategic priority for England at national level is to ensure that good quality content isrouted through BTA and the VisitBritain family of websites to reach overseas markets, andto redevelop the TravelEngland web portal as a platform for domestic marketingcampaigns. Attention should also be given to linking the latter to pro-active e-marketingcampaigns using customer databases, personalisation and marketing partnerships.

To realise the potential of electronic marketing access to online bookings and transactionsfacilities will need to become more widely available across the industry. There may beopportunities at the national level to link to specific web-based reservations systemsoperated by commercial groups and consortia, and this should be explored. However, apriority for EnglandNet should be to enable searching and booking based on up-to-dateinventory held on local Destination Management Systems where these exist, and to supportthe extension of these services to other areas. To ensure that revenues continue to beavailable to support local DMO and TIC services, this will need to be underpinned by arevenue-sharing business model.


Key Actions Lead role Othersinvolved

Time

Redevelop the TravelEngland website as anational web portal to support a range ofEngland marketing campaigns

EnglandNet ETC, RTBs,otherpartners

From late2002onwards

Launch full e-commerce services onTravelEngland

EnglandNet ETC, RTBs,otherpartners

ByDecember2003

Ensure that improved England tourisminformation is available for distribution tooverseas markets via the VisitBritain websiteand other channels

BTA EnglandNet,ETC, RTBs,DMOs

from late2002onwards

Support the extension of DMS services to areasnot yet effectively covered

EnglandNet RTBs, RDAs,DMOs, DMSsuppliers

From late2002onwards

Implement Customer RelationshipManagement and Marketing as an integral andimportant aspect of destination marketing. Thiswill require development of an accurate, well-researched customer database, compiled atdifferent points of customer contact, and thetools to exploit them.

EnglandNet RTBs, DMOs,possiblecollaborationwith BTA

late 2003

Develop a sustainable business model foronline bookings via EnglandNet

EnglandNet ETC, RTBs BySeptember2002

Establish the foundations for future marketingpartnerships with key private sector players

EnglandNet ETC, RTBs,RDAs, DMOs

By March2004


7.2 Modernising information services offered to consumers

ICT and e-business have major implications for the delivery of information and reservationsservices to consumers, whether at home, travelling or within the destination. They enableexisting services to be operated more efficiently while also opening up many new channelsthrough which information may be accessed. These new channels will need to be evaluatedand trialed as they become of potential significance.

An Information Services Strategy was commissioned by the RTBs in 2000, based on a surveyof the whole TIC network and consultation with DMOs. An outcome of this work was arecommendation that an application be developed to improve communication and the flowof information between TICs, DMOs and RTBs that would complement existing local DMSservices. Northumbria Tourist Board’s ENTICE TIC extranet successfully demonstrated thisconcept during 2001. Development of a national version of this is therefore proposed, toinclude access to the national product database, online bulletin boards and discussionforums. The application would be delivered by RTBs, with the technical infrastructure beingprovided by EnglandNet.


Time

Develop the ENTICE web-based network toenable TICs and DMOs to access both thenational product database and a range ofbrowser-enabled functions and services.

EnglandNet RTBs, RDAsDMOs,supportfrom RDAs

Available toall TICs byend of 2002

Build local online communities linking TICs viathe Internet to tourism providers, either bye-mail, or by access to their websites.

EnglandNet RTBs, RDAs,DMOs,

By end of2003

Undertake trials for the delivery of visitorservices through new channels – eg web accessfrom hotel rooms; Internet-enabled payphones;handheld mobile devices, etc

EnglandNet ETC, RTBs,DMOs,otherpartners

FromJanuary2003

7.3 Enhancing the competitiveness of businesses and suppliers

The Internet provides an opportunity to create an online network (technically, an ‘extranet’)that will enable stakeholders to communicate easily while also providing a wide range ofother functions. Such a network could help raise the competitive performance of tourismbusinesses by improving day-to-day communication between tourism marketingorganisations and businesses, and more specifically by enabling tourism providers to:• access tourism information (eg on events) for guests• use online tools such as property management/booking systems, e-procurement

services, enabling, for example, accommodation providers to maintain their availabilityon common databases to enable online bookings

• access business support services – such as research and intelligence information• communicate and do business more easily with each other.

The technical requirements for a basic industry extranet are relatively straightforward.However, the operational aspects of implementing it are costly. If the system is to be cost-effective, it will need to have the support of a critical mass of suppliers.


This same network, with some modifications, may be used for the involvement of the widercommunity (schools, colleges, community groups, etc) to create awareness of theimportance of tourism, and an understanding of the industry. It could also provide amechanism for consultation on future tourism strategies. Similarly, the extranet couldprovide the means for provincial and local government departments and other publicagencies to access the knowledge base to help estimate economic impact and to guidespecific policy decisions.


Time

Develop an interactive business-facing webportal to provide a convenient point of accessto web forms, business advice and intelligence

EnglandNet RTBs FromDecember2002

Promote integration of tourism content withinregional information systems and supportbusiness-to-business development initiatives.

RTBs RDAs,EnglandNet

FromDecember2002

Promote integration of tourism content withother tourism related content at national level

ETC EnglandNet,BTACountrysideAgency,others

FromJanuary2003

Develop other online tourism communityservices

EnglandNet ETC, RTBs,DMOs,TTWG

2003-04

Develop new online tools for use by tourismproviders

EnglandNet RTBs 2003-04

7.4 Developing standards for comprehensive tourism information

Accurate, up-to-date information is central to all aspects of tourism management –including marketing, product development and research. A key principle for informationcollection that underlies this strategy is to ‘collect once and distribute freely through arange of channels and media, to meet the needs of consumers’. The aim should be toenable product data to be collected electronically.

However, to be truly efficient it is vital that any existing duplication of effort is eliminatedand that common standards for data collection and storage are defined. The priority is toagree a definition for England-wide standards of tourism data types and structures that can:• provide a framework for local / sub-regional tourism data collection and distribution• be effectively distributed and used by a variety of organisations• be integrated into a national, England-wide tourism product database.

In the longer term, as standards for data exchange (or interoperability) evolve, the industrywill move away from traditional structured databases. It will become possible to search dataheld in different formats and present the results in a consistent way.

The development by BTA and ETC of the new Jigsaw tourism product database using webcompatible standards for data has, in effect, established a core data set on which DMSsuppliers have been consulted. Compatible destination data could, on this basis, be


imported into Jigsaw. This is, however, only a first step towards achieving the kind ofinteroperability that is required to fully support electronic searching and booking. Furtherwork is required as part of the EnglandNet development to extend the core data standardsto cover product inventory (eg room or ticket availability) data. Destination system supplierswhose software is compliant with the agreed data standards should then be endorsed byEnglandNet to advertise as such. This endorsement could take the form of a kitemark-typeaccreditation.


Time

Develop a full e-commerce interoperabilitystandard for England, to enable DMOinventories, EnglandNet services and BTAdistribution systems to be linked

EnglandNet DMSsuppliers,ETC, BTA,RTBs, TTWG,DMOs

BySeptember2002

Promote the EnglandNet interoperabilitystandard to England’s tourism industry

EnglandNet ETC, BTA,RTBs, TTWG,DMOs

October2002onwards

Enable tourism product data to be collectedand managed electronically

EnglandNet ETC, BTA,RTBs

From late2002

7.5 Helping stakeholders to make wise investments

Detailed practical guidance for DMOs on planning and specification of destination systemsand working with system suppliers was provided in ‘Impact Through IT’ produced in 1999by ETB. Further web-based information is in the course of preparation and will include othermaterial relevant to future e-business, including market intelligence, best practice casestudies and links to other sources. The Tourism Technology Working Group (TTWG) hasformed a ‘Knowledge Network’ sub-group to help prepare and advise on material thatshould be disseminated in this way.

All of this advisory information will be set within the context of the EnglandNet project.EnglandNet will provide web access to the national product database and to relatedapplications. Decisions on local action should be taken in the knowledge of the services thatwill be provided by EnglandNet.

The promotion of DMO participation in EnglandNet and of the advisory services that areavailable will require a significant programme of training and awareness activity for DMOstaff. Achieving widespread understanding and participation in the new electronic servicesamong small tourism businesses will also require a substantial awareness and trainingprogramme. It will be especially important to assist the less confident business operators torecognise the potential benefits to their operations.


Time

Make up-to-date guidance and intelligence fortourism businesses and organisations availableon ETC and RTB websites.

ETC TTWG, RTBs Now andongoing


Maintain a communications strategy to keepRTBs, DMOs and the industry fully advised ofthe progress of EnglandNet

ETC &EnglandNet

RTBs, TMI,LGA, DMSsuppliers

Ongoing

Provide EnglandNet training and awarenessactivity for DMO staff.

EnglandNet RTBs, ETC,DMOs

July 2002 –March 2003

Deliver a programme of e-business awarenessand training tailored to the needs of smalltourism businesses

ETC RTBs,EnglandNet,UK online forbusiness,SmallBusinessService, etc

September2002 –March 2004

7.6 Taking the strategy forward

It is clear that EnglandNet is the core vehicle for implementing this strategy. The anticipateddelivery timetable for EnglandNet can be summarised as follows:

EnglandNet milestones Target dates

EnglandNet business model Completed, RTB versionsby end of July 2002

RTB Regional project plans End of July 2002

The ENTICE extranet for TICs is now available, and rollout andtraining of users has begun

All TICs to have access byMarch 2003.

National and regional EnglandNet ‘kick-off’ conferences toinvolve national and regional bodies such as RTBs, RDAs,Government Departments and agencies, eg CountrysideAgency, UK online for business, SBS.

July-October 2002

Awareness and training programmes for RTBs, TIC and DMOusers

From July 2002

Awareness and training for small tourism businesses From September 2002 toMarch 2004

EnglandNet to be established as a legal entity September 2002

EnglandNet Interoperability Standard completed October 2002

Professional access to EnglandNet Content ManagementServices available

From December 2002

Public access to EnglandNet Community Services (enabling therelaunch of improved services on the TravelEngland website)

January 2003

First local integration projects in rural recovery areas January 2003

Public launch of e-commerce services for holiday-makers viaTravelEngland and VisitBritain (via BTA)

December 2003

Public launch of e-commerce services for re-sellers (eg travelagents)

March 2004


A communications plan has been prepared which identifies industry audiences that need tobe made aware of EnglandNet, how they should be addressed, and when. This coversindustry organizations such as UK online for business, Small Business Service, CountrysideAgency, national business associations, the Business Links network, Governmentdepartments and many others.

Communications underway or planned include:• Presentations to targeted audiences including British Travel Trade Fair and Harrogate

Tourism Information conference (completed) and other industry conferences andseminars

• A national ‘kick-off’ conference and regional workshops for a wide range of contactsfrom July to September 2002

• A project information website, www.englandnet.org.uk, has been launched, anintroductory brochure published and in course of being distributed, and an electronicnewsletter planned.

The role of the Tourism Technology Working Group as a consultative forum for EnglandNetwill also be strengthened to involve other organisations which may be able to assist ininfluencing ICT strategies and programmes relevant to tourism.

In the light of the growing importance of Regional Development Agencies, and theirincreasing role in working with other non-departmental public bodies (including RTBs) ineach region, some practical steps should be taken to improve communications andengagement with the EnglandNet programme:• Involve RDAs in the planning and delivery of the proposed EnglandNet ‘kick-off’

conference and regional workshops• Consult on EnglandNet proposals, notable the EnglandNet business model,

interoperability standards, and regional pathfinder/integration pilot projects, and howthese relate to RDA regional ICT strategies.

• Liaise over strategic issues such as access to Broadband services and e-Governmenttargets

• Assess the implications of the forthcoming White Paper on Regional Government fornational/regional collaboration on e-tourism strategies.


8. Monitoring and evaluation

To evaluate the impact of this strategy requires indicators to be defined. These indicatorsshould measure performance both in terms of providers and of end-users. To achieve thiscoverage, several strands of research and monitoring will need to be undertaken asindicated in the following table.


Time

Regular collection and collation of websiteusage data as a basis for performanceevaluation and benchmarking

EnglandNet ETC, BTA,RTBs, DMOs

Annualevaluation(October)

Regular research on website users, to analysereactions to the various EnglandNet productsand other industry sites, and to provide thebasis for benchmarking

EnglandNet ETC, RTBs,BTA

From January2003

Consumer research to enable assumptionsabout the impact of the web to be tested andassessed over time and to identify the likelygrowth in the use of other new media

ETC EnglandNet,BTA, RDAs,RTBs,academia,private sector

October 2002and ongoing

Establish a web-based system for maintaininginformation about RTB and DMO ICT/e-business activities – with an initial researchprogramme to establish the database

EnglandNet RTBs, ETC July-September2002

Collection of TIC visits and booking data on aregular basis, and comparative analysis ofthese across England

RTBs DMOs, TICs Monthly

Monitoring of small tourism businesses’adoption of websites and email

ETC BTA, RTBs Ongoing (viaTRIPS/Jigsawsystem)

An e-business impact study of the tourismsector

UK onlinefor business(DTI)

ETC, RTBs June- October2002

Monitoring the 'state of the art' e-businesssolutions, benchmarking England with otherleading competitor tourism destinations.

ETC EnglandNet Annually


Appendix 1: Definition of terms

For the purposes of this report, ‘e-tourism’ is taken to mean ‘e-business fortourism.’

The World Tourism Organisation report, ‘E-Business for Tourism’, explains the concept ofe-business as follows:

‘….for tourism destinations and businesses, e-business is about realising theopportunities of improved connectivity both externally, through the Internet, andinternally, through intranets.

The external dimension is about transformation of the value chain, linking thetourism supplier (or service provider) to the customer, and of the supply chain,linking the tourism supplier with its own suppliers. This brings in e-marketing,e-commerce and e-procurement:

• e-marketing exploits the Internet and other forms of electronic communicationto communicate in the most cost-effective ways with target markets and toenable joint working with partner organisations, with whom there is a commoninterest

• e-commerce is the sales activity undertaken through electronic distributionchannels

• e-procurement streamlines the purchasing process by allowing a business to tieits inventory and procurement systems into the despatch and billing systems ofits suppliers, or vice versa. Not only does this reduce costs through automation,it also facilitates identification of best value sources of supply.’

The internal dimension is about transformation of the way in which the organisationfunctions, enabling it to work in a fully integrated way, through the use of commonsystems. The transformed organisation should:

• Be fully networked for internal and external communication

• Use a common set of tools, protocols and standards

• Share product and customer data as a common resource

• Have staff operating as teams, focused on maximising shared resources.


Appendix 2: E-tourism in other countries

ETC has drawn upon published sources and commissioned comparative reviews to compareprogress on e-tourism initiatives in comparable competitor countries.

Scotland and Wales each have their own tourism e-business projects. The Scottish TouristBoard launched its Ossian project in 1997. This project was re-branded visitscotland.com in2000 and a public-private partnership (PPP) with SchlumbergerSema was launched in May2002. A new product database structure was designed and populated in 1998, and is nowbeing maintained by the Area Tourist Boards. The development of visitscotland.com wasundertaken in-house and the investment since 1997 has been estimated at £5m-£6m.E-commerce (in the form of accommodation transactions) was launched in 2000. Someelements of the original development programme remain to be completed, and up to£11 million of further investment is planned under the new PPP.

The Wales Tourist Board initiated its project in 2001 and has taken a different route,inviting tenders in response to a very detailed specification. The contract for system supplywas awarded to World.Net, which offers fully web-enabled software for use both bydestination organisations and by tourism businesses across various sectors. This solution isnow under construction.

In Europe, Austria, Finland, Sweden and Denmark all have fully integrated systems linkingall parts of the tourism support structure. In Switzerland and the Netherlands, partnershipweb projects have been implemented at the national level and participation is beingextended to regional and local tourism organisations. The Netherlands Board of Tourismdecided not to proceed with a planned public-private partnership company, but rather tofully integrate all aspects of e-business within its own operations, whilst still working inpartnership with key commercial players.

In Germany, Belgium, France and Spain, the picture is more fragmented, with the mainfocus of activity at the regional/provincial and local level, as in England. Many differentsystems have been implemented at these levels in each country with a lack of consistencyand interoperability. In all cases, except Belgium, there have been national initiatives toachieve a greater degree of co-ordination and establish certain basic standards.

The situation in England is perhaps most analogous to that in Germany and France, wheredifferent destination systems have been developed across the country. Action has beentaken jointly by the German regional tourism organisations to achieve a consistentapproach, but with limited success to date. France appears to have made more progressthrough the Tourinfrance project, which has focused upon developing interoperabilitystandards to link regional DMS services within a national framework. Implementation of thisis, however, still at an early stage.

It seems clear from these examples that a key issue for the success of a national solution inEngland will be the ability to achieve interoperability between existing regional and localdestination systems.


Appendix 3: Market analysis

1. The growth of Internet usage worldwide

The dramatic growth in the number of Internet users over the past five years andprojections (a nine-fold increase) for the next five years are shown in Figure 1.

44.5184

284413

533665

814979

1,1741,333

0

200400

600800

1,0001,200

1,400

1995 1998 1999 2000 2001 2002 2003 2004 2005 2006

Figure 1: Number of Internet users worldwide (millions)[Source: eTForecasts, July 2001]

Future growth in Internet user numbers is expected to vary markedly between the differentregions of the world, as shown in Figure 2. North America is expected to have a relativelyslow rate of growth. Europe is predicted to grow substantially faster, but the largest growthoverall is forecast for in Pacific Asia. The assumption of rapid growth in Asia is based onrapidly increasing use of cellular devices.

0

100

200

300

400

500

600

1997 2000 2003 2006

N. AmericaW. EuropeE. EuropeAsiaS/C AmericaM. East/Africa

Figure 2: Internet users by regions (millions), 1997-2006[Source: eTForecasts, July 2001]


1.1 Internet users’ profile

Internet users tend to be relatively:

• wealthy

• well educated

• interested in independent travel

As the number of Internet users grows, particularly through increases in the use of newaccess channels (especially interactive TV and mobile devices), the user profile will change,broaden and become less up-market.

As the market has matured, there has been and will be substantial growth in both thenumber and the percentage of Internet users who are buying – see Figure 3.

Figure 3: IDC Internet Commerce Market Model – worldwide (millions)[Source: IDC, 2001]

1.2 Travel and tourism’s market share

Travel and tourism have become rapidly the single largest category of products sold overthe Internet. In 1998, Datamonitor estimated that their share of Internet commerceincreased from 7% in 1997 to 11% in 1998 and they projected an increase then to 35% by2002. Other sources have suggested that this forecast may have been achieved already.

Jupiter has forecast that, as a result of these trends, US online travel industry sales willincrease from $24 billion in 2001 to $64 billion in 2007, of which nearly half will comefrom the corporate travel market. PhoCusWright’s projections for Europe are that onlinetravel and tourism sales will increase from $6 billion in 2001 to $10.91 billion by 2002.

1.3 Travel products purchased

Travel Industry Association of America (TIA) research in 2001 has shown that a largemajority of Internet using US travellers have bought air tickets and made hotel reservationsonline (see Figure 4). Because of the size and frequency of air ticket transactions, they havetaken the largest share of the market, but that share is diminishing, from 80% in 1998 to aforecast 59% in 2005 (Jupiter).


Made a hotel reservation 78%Rented a car 59%Booked entertainment tickets 33%Booked tickets for amusement park 18%Booked a travel package 17%Booked a cruise 8%

Figure 4: US consumer online travel booking by sector[Source: The Travel Industry Association of America (http://www.tia.org),

Results from a Travel Media Usage Survey of 1,300 US adults, conducted in July 2001]

1.4 The impact of Internet use on traditional channels

A key question for DMOs and tourism businesses is the way in which the Internet isaffecting the use of traditional channels of marketing. A number of recent surveys cast lighton this:

• A travel media usage survey for TIA in July 2001 (Figure 5) showed that, in the US, theInternet had already become the number one source of information consulted whenchoosing or planning a vacation. The Internet was also considered to be the most usefulmedia for travel planning (at 24%).

Internet 40%Motor Club Magazine 26%Newspaper Travel Section 25%Television Travel Shows 20%Travel Guidebooks 17%General Interest Magazines 17%

Figure 5: Media most used in the US in the past year to plan vacations[Source: The Travel Industry Association of America (http://www.tia.org),

Results from a Travel Media Usage Survey of 1,300 US adults, conducted in July 2001]

• TIA research in 2001 (Figure 6) showed that about 70% of Internet-using travellerswere using travel agents and state tourism offices less often. A similar proportion wascalling airlines less often, whilst nearly 60% were using other travel call centres less.

In 2000, US on-line travellers reported that since they startedplanning their trips on-line, they were …Using travel agents less often 71%Calling or visiting state tourism offices less often 68%Placing fewer calls directly to airlines 68%Placing fewer calls directly to rental companies 58%Placing fewer calls directly to lodging companies 57%Ordering travel brochures by phone less often 57%

Figure 6: Consequences of increased use of Internet for traditional channels[Source: The Travel Industry Association of America (http://www.tia.org), Results from a Travel Media Usage

Survey of 1,300 US adults, conducted in July 2001]


Thus, over a period of only five years, the Internet has become a primary source of travelinformation for the more mature markets of Internet users, which are also major tourismgenerating countries. At present, the proportion of travel booked through the Internet isrelatively small (between 6 and 15% in the US, according to sector, and less elsewhere), butwill increase substantially, as the number of Internet users grows and the propensity topurchase increases. It seems reasonable to anticipate that transactions across the Internetmay account for 20-25% of all tourism sales in the main markets, over the next four or fiveyears.

2. UK online market

2.1 The growth of Internet usage

The growth in the number of households online over the past four years are shown inFigure 7. According to National Statistics, over the period July to September 2001 anestimated 9.7 million households were online in the UK, representing approximately 39%of the total number of households in the UK.

The proportion of homes with Internet access for individual regions is detailed in Figure 8.In the UK as a whole, from October 2000 to September 2001, 37% of homes were onlinewhile in the South East and London Region up to 45% of homes were online. HomeInternet penetration is greater in England than in other part of the United Kingdom.

Figure 7: Number of Households online in the UK (millions)[Source: National Statistics ‘Internet Access – Households and Individuals’ (December 2001) including figures for

the periods between July and September for the years 1998 to 2001 from the Family Expenditure Survey andthe Expenditure and Food Survey]


Figure 8: Households with home Internet access by Government OfficeRegion and UK: October 2000 to September 2001

[Source: National Statistics ‘Internet Access – Households and Individuals’ (December 2001), includingfigures from the Family Expenditure Survey and the Expenditure and Food Survey]

2.2 Travel and tourism’s market share

Travel (flights and holiday accommodation) is the most popular online purchase in the UK(31%), followed by books or magazines (37%), tickets for events (23%) and music or CDs(19%), according to respondents to the National Statistics Omnibus Survey of onlinepurchasing in the three months to October 2001). The online UK leisure travel market wasworth £592 million in 2000 and Forrester Research predicts that it will reach £3.7bn by2005. By that time, online leisure travel sale should account for 14% of the total UK leisuretravel sales.

Jupiter MMXI estimates that:• UK was the biggest online travel market in Europe in January 2002, with almost six

million people visiting travel sites.• In June 2001, travel sites were most popular with people earning over £45,000 per

annum - but they are popular with people in all income brackets.

2.3 Travel products purchased

A MORI research conducted in September 2000 among UK holidaymakers for ABTA revealsthat:• Only 3% of UK holidaymakers booked their last package holiday online• 17% had used the Internet to book some travel services online at some time such as

flights, car hire and ferry crossings• 39% have already used the Internet as a source of travel information• 56% have access to the Internet at home, at work or in another place.


It also indicates the reasons cited by holidaymakers with Internet access who did not bookover the Internet for their decision:

• Preference for face to face advice (18%)• Lack of Internet access at the time (16%)• Worries about security (14%)• Lack of convenience (10%)• Access to better bargains elsewhere (10%)

According to NetValue (www.netvalue.com), Lastminute.com was the most popular traveland tourism site in February 2002 with 679,000 unique visitors, up from 628,000 inSeptember 2001.

Jupiter Communications indicates that UK male and female Internet users have differentpreferences in term of travel sites: women prefer sites offering flights only such asCheapflights.com, EasyJet.com and Ryanair.com while men do not have a preferencebetween different types of travel sites.

2.4 The impact of Internet use on traditional channels

A recent survey in the UK by MORI shows the way in which the Internet is affecting the useof traditional channels of marketing within the UK market. In March 2001, the Internet andbrochures were used in similar proportions, as sources of information for booking holidaysor other forms of travel, by Internet using travellers (Figure 9). In a similar survey in May2000, when interviewees were asked which source provided the most completeinformation, the Internet was rated much more highly than brochures or any other source –see Figure 10.

Brochures 51%Internet 50%Travel Agent 47%Friends/Relatives/Colleagues 29%Teletext 24%Guide Books 16%National Press 16%Magazines 12%TV Travel Programmes 11%

Figure 9: Use of different sources of information for bookingdecisions by UK Internet users

[Source: Results from theE-Travel Tracker Survey from www.scotexchange.net,March 2001. Base: all who use the Internet (605) March 2001]


Internet 31%Brochures 22%Travel Agent 16%Guide Books 12%Friends/Relatives/Colleagues 11%Teletext 2%TV Travel Programmes 2%National Press *Magazines *

Figure 10: Most complete source for researching and planningtravel by UK consumers

[Source: Results from the E-Travel Tracker Survey from www.scotexchange.net, May 2000. Base: all who haveused any source of travel information May 2000 (1,112)]

2.5 Profiles of UK Internet Users

According to the ‘Internet Access – Household and Individuals’ Report by National Statisticspublished in December 2001, Internet uptake is continuing to grow across all consumergroups. Internet penetration remains highest amongst:

• Younger and middle aged groups• Men• Higher income groups (households within the highest income decile group were almost

eight times as likely to have Internet as those on the lower income decile group)

Figure 11: Percentage of male and female and of each age group onlinein October 2001

[Source: National Statistics ‘Internet Access – Households and Individuals’ (December 2001), including figuresfrom the National Statistics Omnibus Survey]


35.0%

54.0%57.0%

0%5%

10%15%20%25%30%35%40%45%50%55%60%

Small (1-2) Medium (3-4) Large (5+)

Figure 13: Percentage of each type of households (by size) onlinein November 2001

[Source: Consumers’ Use of the Internet, Oftel residential survey Q7, http://www.oftel.gov.uk,Base: UK adults, (November 2001)]

67.0%

52.0%

39.0%

23.0%

0%5%

10%15%20%25%30%35%40%45%50%55%60%65%70%

AB C1 C2 DE

Figure 14: Percentage of each social grades online in November 2001[Source: Consumers’ Use of the Internet, Oftel residential survey Q7, http://www.oftel.gov.uk,

Base : UK adults, (November 2001)]


Appendix 4: An e-business model for destinations

For tourism organisations, it is helpful to have an appreciation of the full potential ofInternet-enabled destination e-business systems. Figure 15 illustrates this by providing adiagrammatic representation of such a system. This shows how the system can servedifferent categories of users, accessing the system through their own dedicated webgateway or interface, using one or more channels (PC, handheld device, interactive TV, etc).

Having accessed the system, the users may select from a wide variety of services (orapplications) that will draw, in turn, on the appropriate database. The user categories,channels and applications may be varied in different destinations, to meet localrequirements.

This model serves to provide a menu of opportunities for the implementation of systems byEnglish destinations. Such systems will best be implemented on a phased, modular basis.The key issue for England is to achieve interoperability between systems and commonproduct and knowledge datasets shared between users.

© TEAM 2000

Handheld

Consumersat home

PrivateSector

Partners

PC

TV

Handheld

Handheld

PC

TourismInformation

Centres

PC

TVHandheld

ConferenceBuyers Visitors –

Mobile

PC

Kiosk

CallCentres

PC/TV (Hotel)

Handheld

TourismOrganisns.

PCTourism Businesses /Suppliers

PC

Info search

Print mgmt

Web Publishing

Image

library

Marketresearch/analysis

‘Push’ marketing

CRM/Contact mgmt

ImpactAnalysis

Internet

Events Orgs.

PC

Travel Trade

Reser-vations

MIS/evaluation

Data editing

PC

Travel Media

TV

Database Servers

HandheldPC TV

Handheld

ProductData

CustomerData

Knowledge PC

Public Partners

PC

Community

Handheld

PC

© TEAM 2000

Figure 15: Destination e-business system model[based on a version prepared by TEAM for Western Cape, South Africa,

reproduced in ETC’s Insights, September 2001]

E-tourism in England › 2008 › 02 › e-tourism-in-engl… · England’s tourism businesses...

Documents

Transcript of E-tourism in England › 2008 › 02 › e-tourism-in-engl… · England’s tourism businesses...