E-tourism in England a strategy .pdf
E-tourism in England a strategy .pdf
E-tourism in England a strategy .pdf
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E-<strong>tourism</strong> <strong>in</strong> <strong>England</strong><br />
A <strong>strategy</strong> for modernis<strong>in</strong>g English<br />
<strong>tourism</strong> through e-bus<strong>in</strong>ess<br />
ENGLISH TOURISM COUNCIL Tourism Technology / July 2002
Acknowledgement<br />
Preparation of this <strong>strategy</strong> has been guided by the Tourism Technology Work<strong>in</strong>g Group,<br />
which comprises representatives of the English Tourism Council, British Tourist Authority,<br />
Regional Tourist Boards, Local Government Association, Tourism Management Institute and<br />
other dest<strong>in</strong>ation management experts. Dr Roger Carter and Gaelle Renault of TEAM<br />
provided significant <strong>in</strong>put <strong>in</strong>to the draft<strong>in</strong>g of the <strong>strategy</strong>.<br />
Published by the English Tourism Council<br />
Thames Tower<br />
Black’s Road<br />
London<br />
W6 9EL<br />
Tel: 020 8563 3000<br />
www.english<strong>tourism</strong>.org.uk<br />
© 2002 English Tourist Board<br />
The English Tourism Council (<strong>in</strong>corporated under the Development of Tourism Act 1969 as<br />
English Tourist Board) is the strategic body for <strong>tourism</strong> <strong>in</strong> <strong>England</strong><br />
The <strong>in</strong>formation <strong>in</strong> this publication is given <strong>in</strong> good faith and every effort has been made to<br />
ensure its accuracy. All liability for loss, disappo<strong>in</strong>tment, negligence or other damage<br />
caused by reliance on the <strong>in</strong>formation conta<strong>in</strong>ed <strong>in</strong> this report is hereby excluded.
Contents<br />
Foreword 3<br />
1. Executive summary 4<br />
2. Introduction 7<br />
3. Background 9<br />
4. Stakeholder and customer requirements 14<br />
5. Strategic options 18<br />
6. Key roles <strong>in</strong> support of e-<strong>tourism</strong> development 21<br />
7. An agenda for action for e-<strong>tourism</strong> 26<br />
8. Monitor<strong>in</strong>g and evaluation 33<br />
Appendix 1 Def<strong>in</strong>ition of terms 344<br />
Appendix 2 E-<strong>tourism</strong> <strong>in</strong> other countries 355<br />
Appendix 3 Market analysis 36<br />
Appendix 4 An e-bus<strong>in</strong>ess model for dest<strong>in</strong>ations 44<br />
Foreword<br />
Nobody can be world-class without good data. The availability of easily accessible, prompt,<br />
accurate, relevant <strong>in</strong>formation underp<strong>in</strong>s all our efforts to create a fully competitive, healthy<br />
<strong>tourism</strong> <strong>in</strong>dustry <strong>in</strong> this country.<br />
This is not just a question of email and the development of websites. What is required is full<br />
<strong>in</strong>tegration of <strong>in</strong>formation between national, regional, and local systems. We need to make<br />
sure that <strong>in</strong>formation on accommodation quality and availability <strong>in</strong> one part of the country<br />
can be seen together with the full array of <strong>tourism</strong> attractions and activities <strong>in</strong> that Region,<br />
and considered <strong>in</strong> the context of, for example, transport to and from the area.<br />
Fortunately, we do not need to re<strong>in</strong>vent the wheel. There are many excellent dest<strong>in</strong>ation<br />
databases around the country. What is required is to jo<strong>in</strong> them up, regardless of their<br />
particular systems technology, and create a national system which can be used without<br />
difficulty by <strong>tourism</strong> providers, national bodies, the government and, not least, the <strong>tourism</strong><br />
customer.<br />
The key to delivery of this <strong>strategy</strong> is <strong>England</strong>Net. <strong>England</strong>Net is a partnership, created by<br />
the English Tourism Council <strong>in</strong> close association with the Regional Tourist Boards and other<br />
<strong>in</strong>terested parties. It has been supported by government fund<strong>in</strong>g, and welcomed by the<br />
<strong>in</strong>dustry at large. It is arguably the most important development with<strong>in</strong> <strong>tourism</strong> at the<br />
present time. I very much hope that this <strong>strategy</strong> will provide a framework for the many<br />
organisations <strong>in</strong>volved <strong>in</strong> English <strong>tourism</strong> to develop their own response to the new<br />
opportunities that <strong>England</strong>Net will open up.<br />
Alan Britten
1. Executive summary<br />
<strong>England</strong>’s <strong>tourism</strong> bus<strong>in</strong>esses have the capacity to become world leaders by better use of<br />
<strong>in</strong>formation technology. We want to see <strong>tourism</strong> <strong>in</strong> <strong>England</strong> becom<strong>in</strong>g more competitive<br />
and profitable as it realises the new market opportunities afforded by e-bus<strong>in</strong>ess. This<br />
philosophy will extend way beyond usage of e-mail and development of websites and will<br />
impact on virtually every element of the bus<strong>in</strong>ess process. Proper <strong>in</strong>tegration between<br />
national, regional and local systems will become a reality, produc<strong>in</strong>g enormous advantages<br />
for both the consumer and the <strong>tourism</strong> <strong>in</strong>dustry.<br />
The growth of <strong>in</strong>formation and communications technology (ICT) <strong>in</strong> <strong>tourism</strong> has been<br />
patchy and <strong>in</strong>consistent. Many bus<strong>in</strong>esses, especially the smaller ones, have been<br />
understandably reluctant to <strong>in</strong>vest <strong>in</strong> someth<strong>in</strong>g that they see as non-essential. At local and<br />
sub-regional level, many <strong>tourism</strong> dest<strong>in</strong>ations – mostly local authority run or sponsored -<br />
have implemented systems <strong>in</strong>itially designed to provide better <strong>in</strong>formation, but later<br />
extended to cover market<strong>in</strong>g, adm<strong>in</strong>istration and research. While many of these are<br />
comprehensive for the dest<strong>in</strong>ation, there are a number of different software solutions <strong>in</strong><br />
use and there is little co-ord<strong>in</strong>ation between them.<br />
More recently, Regional Tourist Boards (RTBs) and Regional Development Agencies (RDAs)<br />
have started to address these issues and several have produced regional e-bus<strong>in</strong>ess<br />
strategies and <strong>in</strong>itiatives to stimulate bus<strong>in</strong>esses to adapt. At a national level, ETC and the<br />
RTBs have collaborated on develop<strong>in</strong>g the <strong>England</strong>Net project, through which the regions,<br />
ETC, the British Tourist Authority (BTA), Dest<strong>in</strong>ation Management Organisations (DMOs),<br />
Tourist Information Centres (TICs), other <strong>tourism</strong> organisations and <strong>in</strong>dividual <strong>tourism</strong><br />
bus<strong>in</strong>esses can all share <strong>in</strong>formation via a national network.<br />
The way forward<br />
Our <strong>strategy</strong> for e-<strong>tourism</strong> <strong>in</strong> <strong>England</strong> is to provide a framework with<strong>in</strong> which <strong>England</strong>’s<br />
<strong>tourism</strong> bus<strong>in</strong>esses can become more competitive and profitable. This framework will serve<br />
the needs of the consumer, offer<strong>in</strong>g new market opportunities and a wider range of<br />
book<strong>in</strong>g options. The solutions deployed must be simple to use by both bus<strong>in</strong>esses and<br />
consumers, easily accessible and capable of tak<strong>in</strong>g advantage of emerg<strong>in</strong>g technology such<br />
as digital <strong>in</strong>teractive television and new generation mobile devices.<br />
This <strong>strategy</strong> proposes a federal approach that would allow local dest<strong>in</strong>ations and <strong>tourism</strong><br />
providers to exchange <strong>in</strong>formation with<strong>in</strong> a nationally co-ord<strong>in</strong>ated, onl<strong>in</strong>e <strong>tourism</strong><br />
network, while still ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the <strong>in</strong>tegrity of their own systems.<br />
The core <strong>in</strong>frastructure will be provided by <strong>England</strong>Net and will <strong>in</strong>clude:<br />
• Community Build<strong>in</strong>g services to will enable bus<strong>in</strong>esses, professionals and consumers to<br />
<strong>in</strong>teract more effectively with each other.<br />
• Content Management services to enable tourist boards to acquire, edit and publish<br />
<strong>tourism</strong> <strong>in</strong>formation for market<strong>in</strong>g.<br />
• E-commerce services to enable end-consumers and re-sellers to access the whole<br />
<strong>tourism</strong> product of <strong>England</strong>, search, book and pay for it through a s<strong>in</strong>gle application.<br />
<strong>England</strong>Net will help <strong>tourism</strong> bus<strong>in</strong>esses and organisations to make the most of commercial<br />
opportunities as well as enabl<strong>in</strong>g them to use new forms of market<strong>in</strong>g. Ultimately,<br />
<strong>England</strong>Net will also ensure that tourists can access well-organised, comprehensive<br />
<strong>in</strong>formation via a wide range of traditional and new media channels. It will provide live real-<br />
4/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
time content on the availability of accommodation, tours, transport and ticket book<strong>in</strong>gs,<br />
and enable this to be comb<strong>in</strong>ed and presented <strong>in</strong> excit<strong>in</strong>g new ways to meet the needs of<br />
different markets.<br />
For <strong>tourism</strong> providers and bus<strong>in</strong>esses, the vision is to make the <strong>in</strong>putt<strong>in</strong>g and shar<strong>in</strong>g of<br />
<strong>in</strong>formation much simpler, while at the same time mak<strong>in</strong>g book<strong>in</strong>gs much easier to receive<br />
and fulfil. Improved bus<strong>in</strong>ess contact may also lead to the development of new products<br />
and jo<strong>in</strong>t market<strong>in</strong>g <strong>in</strong>itiatives. The end result should be the provision of better <strong>in</strong>formation<br />
with less duplication of effort.<br />
An agenda for action<br />
The <strong>strategy</strong> sets out an action agenda under the follow<strong>in</strong>g head<strong>in</strong>gs:<br />
1. Realis<strong>in</strong>g the potential of electronic market<strong>in</strong>g. To do this we will:<br />
• Redevelop the Travel<strong>England</strong> website with full e-commerce services<br />
• Improve distribution of <strong>England</strong> <strong>tourism</strong> <strong>in</strong>formation via other websites and new media<br />
channels<br />
• Extend Dest<strong>in</strong>ation Management System services to areas not yet effectively covered<br />
• Encourage Customer Relationship Management as an aspect of dest<strong>in</strong>ation market<strong>in</strong>g<br />
• Explore market<strong>in</strong>g partnerships with private sector players.<br />
2. Modernis<strong>in</strong>g <strong>in</strong>formation services offered to consumers. To do this we will:<br />
• Develop web-based network services to l<strong>in</strong>k TICs, DMOs and RTBs<br />
• Build local onl<strong>in</strong>e communities l<strong>in</strong>k<strong>in</strong>g <strong>tourism</strong> providers, DMOs, RTBs<br />
• Explore the delivery of visitor services through other new technology channels.<br />
3. Enhanc<strong>in</strong>g the competitiveness of bus<strong>in</strong>esses and suppliers. To do this we will:<br />
• Develop an <strong>in</strong>teractive bus<strong>in</strong>ess-fac<strong>in</strong>g web portal<br />
• Integrate <strong>tourism</strong> content with<strong>in</strong> other regional and national <strong>in</strong>formation services, and<br />
support bus<strong>in</strong>ess-to-bus<strong>in</strong>ess developments<br />
• Develop other onl<strong>in</strong>e <strong>tourism</strong> community services and onl<strong>in</strong>e tools for <strong>tourism</strong> providers.<br />
4. Develop<strong>in</strong>g standards for the comprehensive <strong>tourism</strong> <strong>in</strong>formation. To do this we will:<br />
• Develop and promote a full e-commerce <strong>in</strong>teroperability standard for <strong>England</strong>, to<br />
enable DMO services, <strong>England</strong>Net and BTA distribution systems to be l<strong>in</strong>ked<br />
• Enable <strong>tourism</strong> product data to be collected and managed electronically.<br />
5. Help<strong>in</strong>g stakeholders to make wise <strong>in</strong>vestments. To do this we will:<br />
• Provide guidance for <strong>tourism</strong> bus<strong>in</strong>esses and organisations via ETC and RTB websites<br />
• Provide <strong>England</strong>Net tra<strong>in</strong><strong>in</strong>g and awareness activity for DMO staff<br />
• Deliver a programme of e-bus<strong>in</strong>ess awareness and tra<strong>in</strong><strong>in</strong>g for small <strong>tourism</strong> bus<strong>in</strong>esses.<br />
These are set out <strong>in</strong> more detail with responsibilities for delivery, <strong>in</strong>clud<strong>in</strong>g a summary of<br />
<strong>England</strong>Net delivery milestones, <strong>in</strong> section 7.<br />
F<strong>in</strong>ally, the <strong>strategy</strong> sets out proposals for monitor<strong>in</strong>g progress, <strong>in</strong>clud<strong>in</strong>g website<br />
performance evaluation and benchmark<strong>in</strong>g, consumer and bus<strong>in</strong>ess user research.<br />
5/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Monitor<strong>in</strong>g trends <strong>in</strong> e-bus<strong>in</strong>ess solutions, and benchmark<strong>in</strong>g <strong>England</strong> with other lead<strong>in</strong>g<br />
competitor <strong>tourism</strong> dest<strong>in</strong>ations is also a part of this <strong>strategy</strong>.<br />
Conclusion<br />
The success of this <strong>strategy</strong> depends on our ability to deliver a national e-<strong>tourism</strong> system<br />
that can meet the needs of both consumers and <strong>in</strong>dustry. In many respects, those needs are<br />
the same: the availability of timely and accurate <strong>in</strong>formation delivered by user-friendly<br />
means.<br />
The <strong>England</strong>Net project is proposed as the core solution to meet this requirement, offer<strong>in</strong>g<br />
the means to connect with many exist<strong>in</strong>g <strong>in</strong>formation systems to achieve an unprecedented<br />
level of <strong>in</strong>dustry <strong>in</strong>tegration.<br />
To achieve this will require the active support of the full range of players <strong>in</strong>volved <strong>in</strong> English<br />
<strong>tourism</strong>. New levels of collaboration between all <strong>tourism</strong> stakeholders and support<br />
organisations, <strong>in</strong>clud<strong>in</strong>g Government departments and agencies <strong>in</strong>volved <strong>in</strong> transport,<br />
countryside, bus<strong>in</strong>ess support and culture will be crucial.<br />
Fund<strong>in</strong>g support at national level will also play a vital role. By secur<strong>in</strong>g new resources we<br />
can ensure that the necessary co-ord<strong>in</strong>ation is achieved, result<strong>in</strong>g <strong>in</strong> reduced duplication<br />
and the <strong>in</strong>frastructure English <strong>tourism</strong> needs to succeed.<br />
6/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
2. Introduction<br />
Tourism is a major component of the English economy contribut<strong>in</strong>g some £64 billion<br />
annually and represent<strong>in</strong>g one <strong>in</strong> seven of all jobs. It is a vibrant <strong>in</strong>dustry that comprises<br />
some 120,000 bus<strong>in</strong>esses, 90% of which employ ten or fewer people. In common with<br />
other sectors, the <strong>in</strong>dustry needs to take stock of the revolution <strong>in</strong> communication<br />
technologies and must adapt as a result of the emerg<strong>in</strong>g ‘digital economy’.<br />
Some 38% of all UK households are now able to access the Internet from home, with travel<br />
and <strong>tourism</strong> the s<strong>in</strong>gle largest category of products sold electronically. This grow<strong>in</strong>g use of<br />
the Internet provides massive opportunities to reach new markets and to improve bus<strong>in</strong>ess<br />
efficiency. In addition, e-<strong>tourism</strong> can make the <strong>in</strong>dustry stronger and more able to respond<br />
positively to crises such as foot and mouth and the events of 11 September 2001.<br />
The <strong>tourism</strong> <strong>in</strong>dustry is h<strong>in</strong>dered, however, by a lack of jo<strong>in</strong>ed up communication facilities.<br />
The pr<strong>in</strong>cipal challenge is its fragmented nature, reflect<strong>in</strong>g the predom<strong>in</strong>ance of very small<br />
bus<strong>in</strong>esses, mak<strong>in</strong>g communication and consolidation of <strong>in</strong>formation difficult both with<strong>in</strong><br />
the <strong>in</strong>dustry and to consumers. National and Regional Tourist Boards (RTBs), Dest<strong>in</strong>ation<br />
Management Organisations (DMOs) and Tourist Information Centres (TICs) need to harness<br />
new electronic market<strong>in</strong>g opportunities, to make it easier for consumers to purchase the<br />
English <strong>tourism</strong> product.<br />
This <strong>strategy</strong> sets out a framework with<strong>in</strong> which <strong>tourism</strong> <strong>in</strong> <strong>England</strong> can make best use of<br />
new <strong>in</strong>formation and communications technology. In turn, this will enable English <strong>tourism</strong><br />
to realise new opportunities, to provide more effective visitor services and to enhance the<br />
performance and competitiveness of the <strong>in</strong>dustry.<br />
2.1 Context<br />
The English Tourism Council (ETC) is the statutory body charged with develop<strong>in</strong>g English<br />
<strong>tourism</strong>. It is committed to develop<strong>in</strong>g an <strong>in</strong>dustry that strives for high quality, is responsive<br />
to market needs and promotes wise and responsible growth throughout the whole of the<br />
<strong>tourism</strong> <strong>in</strong>dustry.<br />
Given the profile of new electronic media as market<strong>in</strong>g and distribution channels, one of<br />
ETC’s key priorities is to focus on the potential of e-bus<strong>in</strong>ess and to work towards solutions<br />
for the <strong>in</strong>dustry as a whole. This priority fits well with wider Government objectives of<br />
access, adoption of <strong>in</strong>formation and communication technologies (ICT), and support for<br />
small bus<strong>in</strong>ess.<br />
ETC is work<strong>in</strong>g <strong>in</strong> partnership with the RTBs and others to develop <strong>England</strong>Net. This project<br />
is described further <strong>in</strong> section 6 and will create an onl<strong>in</strong>e <strong>tourism</strong> network l<strong>in</strong>k<strong>in</strong>g English<br />
<strong>tourism</strong> regions, dest<strong>in</strong>ation <strong>in</strong>formation systems and new e-bus<strong>in</strong>ess services, to benefit<br />
consumers, <strong>tourism</strong> providers and dest<strong>in</strong>ations.<br />
2.2 The def<strong>in</strong>ition and concept of e-<strong>tourism</strong><br />
The term ‘e-<strong>tourism</strong>’ is used <strong>in</strong> this document to refer to e-bus<strong>in</strong>ess <strong>in</strong> the field of travel and<br />
<strong>tourism</strong> – ie the use of ICT to enable <strong>tourism</strong> providers and dest<strong>in</strong>ations to operate more<br />
efficiently, and to reach and serve consumers more effectively with facilities to search,<br />
compare and book <strong>tourism</strong> products. A more detailed def<strong>in</strong>ition is set out <strong>in</strong> Appendix 1.<br />
7/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
E-bus<strong>in</strong>ess not only embraces the use of new media, such as the Internet and e-mail, but<br />
also enables more efficient use of traditional media such as brochures and advertis<strong>in</strong>g. It<br />
<strong>in</strong>corporates the ability to conduct sales onl<strong>in</strong>e, with fundamental implications for the way<br />
bus<strong>in</strong>esses work. E-bus<strong>in</strong>ess has the potential to transform the way <strong>in</strong> which bus<strong>in</strong>esses or<br />
organisations function, through <strong>in</strong>tegrat<strong>in</strong>g systems for management of stock or availability<br />
(eg of hotel rooms), procurement of supplies, f<strong>in</strong>ancial adm<strong>in</strong>istration, market<strong>in</strong>g, sales and<br />
other transactions.<br />
The Internet provides direct access to consumers, and is also a tool for bus<strong>in</strong>ess to bus<strong>in</strong>ess<br />
communication. Increas<strong>in</strong>gly, it will provide consumers and <strong>in</strong>termediaries with far richer<br />
<strong>in</strong>formation, <strong>in</strong>creased choice and the facility to make book<strong>in</strong>gs immediately. It will also<br />
offer <strong>tourism</strong> organisations and bus<strong>in</strong>esses the tools to promote, communicate and transact<br />
with consumers and other <strong>tourism</strong> bus<strong>in</strong>esses.<br />
2.3 Strategic vision and aims for e-<strong>tourism</strong> <strong>in</strong> <strong>England</strong><br />
2.3.1 Our vision<br />
Our vision is for <strong>England</strong>’s <strong>tourism</strong> organisations and bus<strong>in</strong>esses to become more<br />
competitive and profitable, capable of realis<strong>in</strong>g the new market opportunities afforded by<br />
e-<strong>tourism</strong>, and skilled <strong>in</strong> us<strong>in</strong>g e-bus<strong>in</strong>ess technologies. We shall play a major part <strong>in</strong><br />
achiev<strong>in</strong>g this vision through the creation of the <strong>England</strong>Net onl<strong>in</strong>e <strong>tourism</strong> network,<br />
<strong>in</strong>tegration of regional and local dest<strong>in</strong>ation management systems and <strong>in</strong>itiatives to<br />
promote e-bus<strong>in</strong>ess awareness and skills development.<br />
2.3.2 Our aims<br />
• To mobilise effective organisational and technical responses to assist the <strong>in</strong>dustry,<br />
especially small <strong>tourism</strong> bus<strong>in</strong>esses, adapt to the new e-bus<strong>in</strong>ess environment<br />
• To improve the collection and distribution of comprehensive and appropriate <strong>tourism</strong><br />
<strong>in</strong>formation to meet the needs of consumer growth markets<br />
• To improve bus<strong>in</strong>ess processes for market<strong>in</strong>g, book<strong>in</strong>g and purchas<strong>in</strong>g of <strong>tourism</strong><br />
products<br />
• To adopt the most appropriate communications and technology solutions to support<br />
the above<br />
• To achieve a fully <strong>in</strong>tegrated e-bus<strong>in</strong>ess network for English <strong>tourism</strong>.<br />
8/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
3. Background<br />
In <strong>tourism</strong>, as elsewhere, the growth of ICT has been sporadic and sometimes reactive. A<br />
lack of resources has stunted development, while the absence of any national <strong>strategy</strong> has<br />
meant that systems have emerged on an ad hoc and uncoord<strong>in</strong>ated basis. However,<br />
products such as central reservations systems (as used by travel agencies) have<br />
demonstrated that with proper plann<strong>in</strong>g and fund<strong>in</strong>g, ICT can both improve consumer<br />
service and improve the efficiency and profitability of bus<strong>in</strong>esses, large or small.<br />
At the local and sub-regional level many English holiday dest<strong>in</strong>ations have systems which<br />
were <strong>in</strong>itially <strong>in</strong>troduced to help TICs to offer a better service. Local authority support has<br />
played a key role <strong>in</strong> this development. Over the years, this support was extended to <strong>in</strong>clude<br />
market<strong>in</strong>g, adm<strong>in</strong>istration and research. With few exceptions, each dest<strong>in</strong>ation operated its<br />
system <strong>in</strong>dependent of other dest<strong>in</strong>ations, with little or no electronic communication<br />
between them.<br />
Towards the end of the 1990s, as awareness of the importance of the Internet and e-<br />
bus<strong>in</strong>ess <strong>in</strong>creased, RTBs became more active and most developed regional websites. More<br />
recently, ETC has collaborated with the BTA <strong>in</strong> the development of a new national <strong>tourism</strong><br />
product database (‘Jigsaw’) to manage basic descriptions of <strong>tourism</strong> products and enable<br />
such data to be entered, imported and distributed through the Internet. The English part of<br />
this project will be <strong>in</strong>tegrated <strong>in</strong>to the wider <strong>England</strong>Net framework.<br />
3.1 The present position<br />
How are <strong>tourism</strong> bus<strong>in</strong>esses adapt<strong>in</strong>g to the opportunities of e-bus<strong>in</strong>ess? Although email<br />
and websites are only the tip of the iceberg, they can still be useful <strong>in</strong>dicators to<br />
demonstrate the likely predisposition to e-bus<strong>in</strong>ess. National level data <strong>in</strong> Table 1 shows the<br />
follow<strong>in</strong>g pattern for the adoption of the Internet by <strong>tourism</strong> bus<strong>in</strong>esses <strong>in</strong> <strong>England</strong>.<br />
Table 1: Adoption of the Internet by English <strong>tourism</strong> bus<strong>in</strong>esses*<br />
% with % with % with<br />
% with<br />
% with<br />
Sector email email websites<br />
onl<strong>in</strong>e<br />
websites<br />
(all totals at Jan 02) (Feb (Jan (Feb 2001)<br />
book<strong>in</strong>g<br />
(Jan 2002)<br />
2001) 2002)<br />
(Jan 2002)<br />
Serviced (Hotels, B&Bs)<br />
Total: 16, 631<br />
45% 58% 33% 45% 2%<br />
Self Cater<strong>in</strong>g<br />
Total: 8,951<br />
47% 63% 38% 51% n/a<br />
Camp<strong>in</strong>g and<br />
Caravann<strong>in</strong>g<br />
40% 52% 43% 60% n/a<br />
Total: 1,179<br />
Youth and Group<br />
Total: 666<br />
62% 72% 47% 67% n/a<br />
Attractions<br />
Total: 5,503<br />
33% 48% 36% 53% n/a<br />
Events<br />
Total: 7,394<br />
50% 56% 47% 59% n/a<br />
Averages 46% 58% 41% 56% n/a<br />
* English bus<strong>in</strong>esses and suppliers participat<strong>in</strong>g <strong>in</strong> the BTA/ETC<strong>tourism</strong> product <strong>in</strong>formation database.<br />
9/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Source: BTA/ETC 2002<br />
It is apparent from this table that over half of <strong>tourism</strong> bus<strong>in</strong>esses now have a website and<br />
growth has been significant over the last year. However, only 2% of serviced<br />
accommodation bus<strong>in</strong>esses covered by this survey offered onl<strong>in</strong>e book<strong>in</strong>g, probably<br />
reflect<strong>in</strong>g the large proportion of small guest accommodation operators represented here,<br />
for whom e-commerce represents a further stage of adaptation.<br />
As may be expected, the level of e-bus<strong>in</strong>ess activity <strong>in</strong> the hotel sector is more substantial,<br />
although a recent survey revealed that 42% of hotels surveyed did not have a formal e-<br />
bus<strong>in</strong>ess <strong>strategy</strong>. 1 Most major hotel groups and holiday operators now offer onl<strong>in</strong>e<br />
book<strong>in</strong>g facilities that are l<strong>in</strong>ked to <strong>in</strong>ventory management systems which also support call<br />
centre and front desk operations. Commercial travel agencies have used extensive (and<br />
expensive) computerised reservation systems l<strong>in</strong>ked to air travel carriers and major tour<br />
operators for many years, largely support<strong>in</strong>g outbound travel.<br />
The development of the web, with its lower operat<strong>in</strong>g costs, has resulted <strong>in</strong> the emergence<br />
of new web-based book<strong>in</strong>g agents such as Travelocity and LastM<strong>in</strong>ute.com. Increas<strong>in</strong>gly,<br />
hotel group systems and traditional travel agency systems are be<strong>in</strong>g l<strong>in</strong>ked to such webbased<br />
systems. It rema<strong>in</strong>s difficult, however, for the smaller <strong>tourism</strong> providers to l<strong>in</strong>k to such<br />
systems, which generally require guaranteed room allocations or cont<strong>in</strong>uous connection to<br />
hotel management systems. The result is a patchwork of separate systems offer<strong>in</strong>g<br />
selections of <strong>tourism</strong> products rather than a coherent and comprehensive market place <strong>in</strong><br />
which consumers can readily search, compare and book.<br />
The immediate challenge therefore is to provide a coherent e-bus<strong>in</strong>ess framework for<br />
<strong>tourism</strong> <strong>in</strong> <strong>England</strong>. The smaller enterprises will then need to be conv<strong>in</strong>ced that e-bus<strong>in</strong>ess is<br />
worth <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> and the larger bus<strong>in</strong>esses persuaded that they can also benefit from<br />
align<strong>in</strong>g themselves with such a national system.<br />
3.2 Lessons learnt from abroad<br />
Not surpris<strong>in</strong>gly, s<strong>in</strong>ce e-bus<strong>in</strong>ess is a global issue, many other countries have <strong>in</strong>vested <strong>in</strong> e-<br />
<strong>tourism</strong>. A review of experience <strong>in</strong> other countries (described <strong>in</strong> Appendix 2) reveals that<br />
several countries have adopted some form of collaborative national and regional approach<br />
to product data management as a platform for web-based market<strong>in</strong>g and distribution.<br />
These precedents, whilst different <strong>in</strong> structure and degree of <strong>in</strong>tegration, support the<br />
‘federal’ <strong>strategy</strong> proposed for <strong>England</strong>. It also makes sense for <strong>England</strong> to achieve as much<br />
consistency as possible with the database structures be<strong>in</strong>g developed <strong>in</strong> Wales and<br />
Scotland.<br />
3.3 Key trends <strong>in</strong> e-bus<strong>in</strong>ess<br />
A full analysis of trends <strong>in</strong> the use of the Internet and e-commerce is set out <strong>in</strong> Appendix 3.<br />
The key market trends:<br />
• Use of the Internet has been <strong>in</strong>creas<strong>in</strong>g dramatically around the world – nearly ten-fold<br />
over the past six years. Growth is forecast to cont<strong>in</strong>ue for the next five years, with webenabled<br />
mobile devices help<strong>in</strong>g to stimulate this trend. It is not yet clear when this is<br />
1 Hospitality e-Bus<strong>in</strong>ess: the Future, June 2001.<br />
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likely to reach saturation po<strong>in</strong>t or maturity, but some 39% of all UK households are<br />
now able to access the Internet from home.<br />
• Increas<strong>in</strong>g proportions of Internet users are buy<strong>in</strong>g onl<strong>in</strong>e, with a predicted 32% of UK<br />
users forecast to use the Internet for retail transactions over the next five years.<br />
• Travel and <strong>tourism</strong> will ga<strong>in</strong> an <strong>in</strong>creas<strong>in</strong>gly large share of the global onl<strong>in</strong>e commerce<br />
market, from an estimated 30% today to around 50% <strong>in</strong> the future.<br />
• The dom<strong>in</strong>ance of air travel has reduced from more than 80% four years ago to about<br />
60% now, whilst hotels’ share correspond<strong>in</strong>gly has doubled to nearly 25%.<br />
Accommodation, car hire and other ground-based products will ga<strong>in</strong> a larger share of<br />
global onl<strong>in</strong>e commerce <strong>in</strong> travel and <strong>tourism</strong>.<br />
• User profiles broadly match the target markets of many <strong>tourism</strong> organisations – Internet<br />
users tend to be relatively wealthy, well educated, and <strong>in</strong>terested <strong>in</strong> <strong>in</strong>dependent travel.<br />
Data from the Office for National Statistics about Internet usage concludes that:<br />
There is a consistently high (43-52%) level of Internet usage amongst all age groups up to<br />
the age of 55. Older people have a lower (but certa<strong>in</strong>ly not <strong>in</strong>significant) level of usage –<br />
almost one third of those up to 64 and one-sixth for those 65+.<br />
Usage <strong>in</strong>creases consistently across the social groups, from 18% of socio-economic<br />
classification DE (low <strong>in</strong>come) to more than 60% of ABs (professionals).<br />
Whilst three years ago, some 35% of women were Internet users compared with 42% of<br />
men, the gender gap has been clos<strong>in</strong>g. By October 2001 this had climbed to 51% of<br />
women and 55% of men.<br />
3.4 The economic benefits of e-bus<strong>in</strong>ess<br />
The economic benefits of e-bus<strong>in</strong>ess arise from ga<strong>in</strong>s <strong>in</strong> operational efficiency and<br />
market<strong>in</strong>g effectiveness. These benefits are virtually impossible to estimate accurately, but,<br />
<strong>in</strong> broad terms, it is reasonable to predict an <strong>in</strong>crease <strong>in</strong> productivity (<strong>in</strong>clud<strong>in</strong>g efficiency<br />
ga<strong>in</strong>s and value added) of between 25% and 33%. Specific productivity benefits could<br />
<strong>in</strong>clude f<strong>in</strong>ancial ga<strong>in</strong>s, cost sav<strong>in</strong>gs and non-f<strong>in</strong>ancial benefits, particularly <strong>in</strong> areas like<br />
bus<strong>in</strong>ess adm<strong>in</strong>istration and market<strong>in</strong>g costs:<br />
• Potential areas to enable additional <strong>in</strong>come generation will <strong>in</strong>clude sales of <strong>tourism</strong><br />
products such as accommodation and short-term special offers via the web, electronic<br />
mail and other new media channels.<br />
• Potential areas for cost sav<strong>in</strong>gs could <strong>in</strong>clude reduced costs for publications - production<br />
costs, pr<strong>in</strong>t runs and distribution; and sav<strong>in</strong>gs <strong>in</strong> staff time – pr<strong>in</strong>t production, enquiry<br />
handl<strong>in</strong>g, reservations, communications, etc.<br />
• Potential areas for non-f<strong>in</strong>ancial ga<strong>in</strong>s will <strong>in</strong>clude <strong>in</strong>creased market<strong>in</strong>g effectiveness and<br />
quality of customer service and relationship; <strong>in</strong>creased productivity; and enhanced<br />
performance and better evaluation mechanisms.<br />
Whilst there would also be additional costs associated with e-bus<strong>in</strong>ess, such as onl<strong>in</strong>e sales<br />
commissions, the net impact is likely to be positive.<br />
11/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
3.5 Barriers to <strong>tourism</strong> e-bus<strong>in</strong>ess<br />
The ma<strong>in</strong> barrier to maximis<strong>in</strong>g the potential of e-bus<strong>in</strong>ess is that a significant proportion of<br />
<strong>tourism</strong> bus<strong>in</strong>esses are not proactive <strong>in</strong> their use of technology and the Internet and appear<br />
to have a limited awareness of the scope of e-bus<strong>in</strong>ess. Allied to this is the fact that the<br />
whole onl<strong>in</strong>e process can appear <strong>in</strong>timidat<strong>in</strong>g, time-consum<strong>in</strong>g and f<strong>in</strong>ancially prohibitive to<br />
smaller bus<strong>in</strong>esses. Thus, whilst electronic trad<strong>in</strong>g <strong>in</strong> <strong>tourism</strong> is a growth area for larger<br />
operators, it is much less so for many small <strong>tourism</strong> bus<strong>in</strong>esses that make up the bulk of the<br />
<strong>in</strong>dustry.<br />
The lack of e-bus<strong>in</strong>ess awareness and skills among UK <strong>tourism</strong> bus<strong>in</strong>esses is confirmed by<br />
the results of a survey undertaken by ETC <strong>in</strong> 2001, on the use of ICT by accommodation<br />
micro-bus<strong>in</strong>esses. The survey reveals that the majority of very small bus<strong>in</strong>esses (ie under ten<br />
employees) have limited knowledge of ICT and do not use it to its full potential 2 . The survey<br />
also suggests that the ma<strong>in</strong> barriers prevent<strong>in</strong>g micro-bus<strong>in</strong>esses from us<strong>in</strong>g ICT are cost,<br />
lack of knowledge, lack of time and a belief that the exist<strong>in</strong>g methods of ga<strong>in</strong><strong>in</strong>g bus<strong>in</strong>ess<br />
are satisfactory.<br />
In addition, there are other barriers to successful adoption of e-bus<strong>in</strong>ess <strong>in</strong>clud<strong>in</strong>g:<br />
• the lack of a viable e-bus<strong>in</strong>ess environment – no <strong>in</strong>tegrated network with<strong>in</strong> which<br />
smaller <strong>tourism</strong> providers can work cost-effectively and easily with exist<strong>in</strong>g web-based<br />
book<strong>in</strong>g systems<br />
• a variety of <strong>tourism</strong> data formats that work to limit ‘<strong>in</strong>teroperability’ (ie systems work<strong>in</strong>g<br />
well together) – <strong>in</strong>stead several different systems that are not connected are used by<br />
dest<strong>in</strong>ations, hotel groups or <strong>tourism</strong> operators<br />
• a lack of <strong>in</strong>tegration of <strong>tourism</strong> data and e-commerce tools – much <strong>tourism</strong><br />
<strong>in</strong>formation is as yet unconnected to effective real-time book<strong>in</strong>g and transactions<br />
capability<br />
• a variety of models for hold<strong>in</strong>g <strong>in</strong>ventory (eg bed spaces to sell) and book<strong>in</strong>gs have been<br />
adopted by dest<strong>in</strong>ations and commercial operators, with limited ability for these to<br />
work together seamlessly<br />
• the cost for bus<strong>in</strong>esses <strong>in</strong> adopt<strong>in</strong>g <strong>in</strong>dividual solutions – with no guarantee that these<br />
solutions will meet consumer needs or reach appropriate markets<br />
• limits on telecommunications bandwidth <strong>in</strong> many parts <strong>in</strong> many parts of the country,<br />
constra<strong>in</strong><strong>in</strong>g the quality of onl<strong>in</strong>e services – a problem that is unlikely to be fully<br />
resolved until 2005<br />
• restrictions on local authority fund<strong>in</strong>g, which impact on the resources available for<br />
public <strong>in</strong>vestment <strong>in</strong> ICT and staff<strong>in</strong>g – thus mak<strong>in</strong>g it difficult to rely on the DMO/TIC<br />
structures as the cornerstone that they ideally should be.<br />
To succeed, then, the <strong>strategy</strong> must offer solutions that overcome these barriers and enable<br />
easier access both for visitor <strong>in</strong>formation and bus<strong>in</strong>ess-to-bus<strong>in</strong>ess communication.<br />
Ultimately, such a system must deliver the capability for book<strong>in</strong>g on-l<strong>in</strong>e, advertis<strong>in</strong>g, data<br />
gather<strong>in</strong>g and other e-commerce benefits. The aim of the <strong>England</strong>Net project is to create<br />
an onl<strong>in</strong>e <strong>tourism</strong> network that directly addresses or helps to resolve many of these<br />
problems.<br />
2 Unpublished. These f<strong>in</strong>d<strong>in</strong>gs are confirmed by other recent published research, for example by Blum and<br />
Fallon, and Ma<strong>in</strong>, <strong>in</strong> Information Technology and Tourism, Vol. 4, Cognizant Communication, 2002<br />
12/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
This <strong>strategy</strong> and the <strong>England</strong>Net project are both ambitious and it is reasonable to<br />
question how it can be achieved. The answer is by adopt<strong>in</strong>g a step-by- step approach, with<br />
the focus on:<br />
• establish<strong>in</strong>g the ICT and database <strong>in</strong>frastructure to provide a platform on which<br />
different players can organise their own activity, with assistance from <strong>England</strong>Net<br />
• encourag<strong>in</strong>g participation by dest<strong>in</strong>ations, by enabl<strong>in</strong>g them to connect easily to the<br />
<strong>England</strong>Net <strong>in</strong>frastructure for purposes of data exchange – and then to use the<br />
<strong>England</strong>Net services as much (or as little) as they choose, <strong>in</strong> relation to their own<br />
exist<strong>in</strong>g systems.<br />
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4. Stakeholder and customer requirements<br />
4.1 The potential stakeholders and customers<br />
The model set out <strong>in</strong> Appendix 4 identifies the different categories of users of dest<strong>in</strong>ation e-<br />
bus<strong>in</strong>ess systems. In turn, these can be split <strong>in</strong>to customers and stakeholders. The customers<br />
<strong>in</strong>clude:<br />
• Consumers<br />
• Travel trade<br />
• Travel media<br />
• Conference and event buyers and other <strong>in</strong>termediaries.<br />
The stakeholders <strong>in</strong>clude:<br />
• Tourism bus<strong>in</strong>esses<br />
• RTBs and local dest<strong>in</strong>ation management organisations (DMOs)<br />
• TICs (and dest<strong>in</strong>ation call centres)<br />
• Suppliers of dest<strong>in</strong>ation management systems<br />
• Suppliers of goods and services to <strong>tourism</strong> bus<strong>in</strong>esses, eg food, laundry, furnish<strong>in</strong>gs, etc.<br />
• Suppliers of e-commerce services, eg e-payment services.<br />
4.2 User requirements<br />
Users have two basic needs: for <strong>in</strong>formation and for an effective process for conduct<strong>in</strong>g<br />
bus<strong>in</strong>ess.<br />
4.2.1 Consumers<br />
Consumers and travellers visit<strong>in</strong>g dest<strong>in</strong>ation websites are look<strong>in</strong>g primarily for <strong>in</strong>-depth,<br />
up-to-date <strong>in</strong>formation on potential dest<strong>in</strong>ations, activities and accommodation. The<br />
facilities to create travel it<strong>in</strong>eraries, receive ‘<strong>in</strong>stant’ offers, compare prices, confirm<br />
book<strong>in</strong>gs and share experiences will become an <strong>in</strong>creas<strong>in</strong>gly important feature of demand.<br />
Thus, the key requirements for consumers are:<br />
• Fast, low cost, direct access to accurate <strong>in</strong>formation, with facilities for sophisticated<br />
search and for immediate, secure book<strong>in</strong>g at competitive prices<br />
• Clear product pric<strong>in</strong>g, eg per room, per traveller, supplements, f<strong>in</strong>al price, etc<br />
• Tourism product quality assurance from recognised standards bodies<br />
• Access to alternatives to direct book<strong>in</strong>g such as:<br />
- call centre support for completion of the book<strong>in</strong>g<br />
- onl<strong>in</strong>e travel agencies/resellers for completion of book<strong>in</strong>g<br />
• Enhanced visitor services for travellers to and with<strong>in</strong> the dest<strong>in</strong>ation, through the<br />
provision of electronic access to comprehensive <strong>in</strong>formation and reservation services<br />
from PCs or TVs <strong>in</strong> hotel bedrooms, Internet cafés, kiosks, web-enabled payphones,<br />
handheld cellular devices, etc.<br />
• Where people are us<strong>in</strong>g these services <strong>in</strong> the dest<strong>in</strong>ation, they will seek additional types<br />
of <strong>in</strong>formation, for example, local transport, enterta<strong>in</strong>ment, events, restaurants, bars;<br />
<strong>in</strong>formation that may be available through DMS or from third party commercial<br />
suppliers.<br />
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4.2.2 Travel trade<br />
Potential requirements of the travel trade (tour operators, travel agencies, handl<strong>in</strong>g agents,<br />
etc) <strong>in</strong>clude:<br />
• efficient search for accommodation, attractions and other facilities – often with a focus<br />
on group travel<br />
• ability to negotiate allocations and release dates, prices, commissions/net prices, and<br />
other sales terms<br />
• mechanisms to contract quickly and cost-effectively<br />
• quality assurance from recognised standards bodies<br />
• access to local handl<strong>in</strong>g agents<br />
• opportunities for formation of local/regional product consolidation and distribution<br />
• opportunities for domestic promotion to consumers<br />
• easy access to relevant still and mov<strong>in</strong>g image material for use <strong>in</strong> promotions.<br />
4.2.3 Travel media<br />
The travel media’s prime requirement is for:<br />
• <strong>in</strong>formation on latest product developments<br />
• <strong>in</strong>formation on quality assured product<br />
• well-researched material which can be used for features<br />
• easier contact with experts on a wide range of subjects<br />
• easy access to relevant still and/or mov<strong>in</strong>g image material.<br />
4.2.4 Conference and event buyers and other <strong>in</strong>termediaries<br />
Many RTBs and DMOs, particularly those that cover large urban areas, place considerable<br />
emphasis on bus<strong>in</strong>ess <strong>tourism</strong>. Given that a relatively large proportion of both buyers and<br />
suppliers are likely to use ICT on a day-to-day basis, the potential for e-bus<strong>in</strong>ess <strong>in</strong> this<br />
sector is considerable. The conference buyer or <strong>in</strong>termediary will generally be seek<strong>in</strong>g:<br />
• efficient search and selection of appropriate dest<strong>in</strong>ations and venues – often aga<strong>in</strong>st a<br />
very detailed set of requirements – the <strong>in</strong>formation for which may best be<br />
accommodated <strong>in</strong> supplementary databases<br />
• mechanisms to contract quickly and cost-effectively<br />
• promotional material to assist <strong>in</strong> the e-market<strong>in</strong>g of conferences.<br />
4.2.5 Tourism bus<strong>in</strong>esses<br />
The core requirements of bus<strong>in</strong>esses are relatively simple – more bus<strong>in</strong>ess, higher yield,<br />
lower costs and <strong>in</strong>creased profits. Beh<strong>in</strong>d these high level objectives are specific needs<br />
<strong>in</strong>clud<strong>in</strong>g extended market<strong>in</strong>g and <strong>in</strong>creased operational efficiencies. While bus<strong>in</strong>esses<br />
should be active <strong>in</strong> their own right, they will also attract new bus<strong>in</strong>ess by work<strong>in</strong>g with or<br />
through their local DMO.<br />
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Tourism bus<strong>in</strong>esses will be market<strong>in</strong>g-focussed and will seek:<br />
• Cost-effective access to powerful distribution mechanisms. Tourism bus<strong>in</strong>esses need<br />
distribution mechanisms which are appropriate for their products. Distribution services<br />
should:<br />
- Enable control of distribution channels<br />
- Enable onl<strong>in</strong>e control of prices and availability<br />
- Enable control of automatic confirmation or confirmation after <strong>in</strong>tervention by<br />
reception staff<br />
- Offer distribution to re-sellers with negotiation of sales terms<br />
- Secure and cheap payment/clear<strong>in</strong>g mechanisms<br />
- Clear and up-to-date back-office services<br />
- Be supported by call centre services.<br />
• Support from DMOs for l<strong>in</strong>k<strong>in</strong>g up with other complementary local products,<br />
dest<strong>in</strong>ation market<strong>in</strong>g and fulfilment (eg brochure distribution, TIC book<strong>in</strong>g services).<br />
4.2.6 RTBs and local DMOs<br />
E-bus<strong>in</strong>ess has the potential to permeate virtually every area of the work of RTBs and<br />
DMOs. Most have a dest<strong>in</strong>ation market<strong>in</strong>g role targeted at consumers and travel trade<br />
<strong>in</strong>termediaries. Additionally RTBs and many DMOs require access to data to underp<strong>in</strong><br />
research and bus<strong>in</strong>ess support activities. Local authorities also have a requirement to<br />
demonstrate value <strong>in</strong> the delivery of their services. Particular needs <strong>in</strong>clude:<br />
• Increase <strong>in</strong> number of clients/members from an enhancement of the services they can<br />
offer, eg e-commerce services, national and <strong>in</strong>ternational distribution<br />
• Increase <strong>in</strong> the value of clients/customers by charg<strong>in</strong>g appropriate commissions or<br />
subscriptions for enhanced services<br />
• New revenue opportunities from consolidation of local and regional product<br />
• New revenue opportunities from provision of call centre services <strong>in</strong>tegrated with<strong>in</strong> a<br />
national call centre network<br />
• Integration of new market<strong>in</strong>g services with distribution of bookable, quality assured<br />
product<br />
• Facilities to enable the build<strong>in</strong>g of onl<strong>in</strong>e communities to support local/regional product<br />
creation, market<strong>in</strong>g and sales<br />
• Effective communication and co-operation between public sector bodies <strong>in</strong>volved <strong>in</strong><br />
provid<strong>in</strong>g services to SMEs and consumers<br />
• Easy access to national <strong>in</strong>formation on <strong>tourism</strong> products and services<br />
• Ability to market cost-effectively.<br />
4.2.7 Tourist Information Centres<br />
TICs (and dest<strong>in</strong>ation-based call centres) deal primarily with public enquiries. They are<br />
generally dependent upon local authority fund<strong>in</strong>g to support their services. TICs have<br />
specific requirements:<br />
• to quickly search <strong>in</strong>-depth, up-to-date, accurate <strong>in</strong>formation (<strong>in</strong>clud<strong>in</strong>g special offers) on<br />
available accommodation, activities, events and many other topics – and create<br />
schedules and map-based it<strong>in</strong>eraries<br />
• to make immediate book<strong>in</strong>gs, based on accurate price <strong>in</strong>formation<br />
• To open new revenue opportunities via <strong>in</strong>tegration of call centre facilities with onl<strong>in</strong>e<br />
book<strong>in</strong>g mechanisms<br />
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• To be <strong>in</strong>tegrated <strong>in</strong>to a national TIC network to obta<strong>in</strong> advance book<strong>in</strong>gs from national<br />
and <strong>in</strong>ternational customers.<br />
Whilst demand may be ma<strong>in</strong>ly for local <strong>in</strong>formation, most TICs need to be able service<br />
enquiries about other parts of their area or elsewhere <strong>in</strong> <strong>England</strong> – and therefore to have<br />
access to the national database and to be able to communicate quickly with TICs <strong>in</strong> other<br />
areas.<br />
4.2.8 DMS suppliers<br />
Dest<strong>in</strong>ation management systems are specialised software applications which provide the<br />
foundation for the management of dest<strong>in</strong>ations, enabl<strong>in</strong>g <strong>tourism</strong> product <strong>in</strong>formation to<br />
used to support market<strong>in</strong>g and visitor services and for the provision of up-to-date data<br />
enabl<strong>in</strong>g onl<strong>in</strong>e book<strong>in</strong>g. The suppliers of DMS software require a market that encourages<br />
<strong>in</strong>vestment <strong>in</strong> technical improvement and adoption by DMOs not yet covered. The creation<br />
of a national <strong>England</strong>net <strong>in</strong>frastructure with open <strong>in</strong>teroperability standards would enable<br />
DMS suppliers adopt<strong>in</strong>g these standards to offer DMOs the added confidence of national<br />
distribution <strong>in</strong> addition to the other competitive features of their systems.<br />
4.2.9 Suppliers of goods and services<br />
The suppliers of goods and services to <strong>tourism</strong> bus<strong>in</strong>esses are faced with the costs and<br />
<strong>in</strong>efficiencies of deal<strong>in</strong>g with a highly dispersed and diverse range of relatively small<br />
customers. If <strong>tourism</strong> bus<strong>in</strong>esses had onl<strong>in</strong>e access to supplier catalogues for product search<br />
and price/delivery comparisons and order<strong>in</strong>g, the suppliers and procurement companies<br />
would have wider and cheaper distribution. They may also be able to plan and provide<br />
cheaper logistics. Enabl<strong>in</strong>g such a procurement service could be built <strong>in</strong>to the <strong>England</strong>Net<br />
national <strong>in</strong>frastructure.<br />
4.2.10 Suppliers of e-commerce services<br />
The take-up of e-commerce services by <strong>tourism</strong> organisations has been h<strong>in</strong>dered by the lack<br />
of data and systems that work together. This has held back the development of e-<strong>tourism</strong><br />
services, which need a set of national standards to be fully effective. The consequence is<br />
that cost economies and breadth of supply of e-commerce services have not yet been<br />
achieved. National standards, driven by the requirements of <strong>England</strong>Net will hasten the<br />
creation and use of payment and back-office services.<br />
4.2.11 Commercial operators not primarily <strong>in</strong>volved <strong>in</strong> <strong>tourism</strong><br />
This category is made up of organisations and companies that are not primarily <strong>in</strong>volved <strong>in</strong><br />
<strong>tourism</strong> but would benefit from access to <strong>tourism</strong> data, for example:<br />
• Distribution organisations – those that could publish <strong>England</strong> product data through<br />
their own distribution routes, for example, Internet service providers or mobile phone<br />
companies.<br />
• Content providers - those that could provide appropriate content to enhance the ma<strong>in</strong><br />
system, for example a tra<strong>in</strong> operat<strong>in</strong>g company.<br />
• Data merchants - those that would pay for the use of the database content for their<br />
own commercial purposes, for example media production companies.<br />
• Travel goods suppliers, for example hotel furnish<strong>in</strong>gs suppliers.<br />
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5. Strategic options<br />
Over the past fifteen years, there has been a considerable <strong>in</strong>vestment <strong>in</strong> systems to collect,<br />
monitor and manage data at local, regional and national level. In determ<strong>in</strong><strong>in</strong>g the most<br />
appropriate <strong>strategy</strong> for e-<strong>tourism</strong> <strong>in</strong> <strong>England</strong> it is important to recognise that this does not<br />
start from a ‘blank sheet’ - the key requirement would therefore appear to be the creation<br />
of a framework that can build upon what has gone before.<br />
This <strong>strategy</strong> addresses the issue of how best to deliver an <strong>in</strong>tegrated or jo<strong>in</strong>ed-up structure<br />
that will enable consumers and <strong>tourism</strong> providers to benefit at local, regional and national<br />
levels. A key strategic objective is therefore to enable comprehensive search<strong>in</strong>g, plann<strong>in</strong>g,<br />
reservations, book<strong>in</strong>gs and payments for <strong>tourism</strong> products to take place via the Internet and<br />
other communications channels such as TICs, call centres, mobile devices and <strong>in</strong>teractive TV<br />
services.<br />
The core of any such structure will be some form of dest<strong>in</strong>ation management system (DMS)<br />
– a comb<strong>in</strong>ation of data management software, search eng<strong>in</strong>e, book<strong>in</strong>g and transactions<br />
facilities, all operat<strong>in</strong>g with<strong>in</strong> a viable bus<strong>in</strong>ess model.<br />
There are three options for the development of a national e-<strong>tourism</strong> <strong>strategy</strong> for <strong>England</strong>:<br />
• A ‘m<strong>in</strong>imum <strong>in</strong>tervention’ approach that relies upon the cont<strong>in</strong>u<strong>in</strong>g development of a<br />
diverse range of local and regional systems and commercial onl<strong>in</strong>e reservation services<br />
• The development of a complete <strong>in</strong>tegrated national system<br />
• The development of a federal model, with a national network <strong>in</strong>frastructure and<br />
services designed to work with exist<strong>in</strong>g and emerg<strong>in</strong>g systems.<br />
The relative merits of these approaches are considered briefly <strong>in</strong> the follow<strong>in</strong>g sections.<br />
5.1 A m<strong>in</strong>imum <strong>in</strong>tervention approach<br />
This option would rely upon the cont<strong>in</strong>u<strong>in</strong>g development of regional and local DMS<br />
solutions and commercial reservation systems. The national BTA/ETC Jigsaw database would<br />
cont<strong>in</strong>ue to be developed as a source of product <strong>in</strong>formation, and DMS software suppliers<br />
would be encouraged to adopt common data def<strong>in</strong>itions that would facilitate data<br />
exchange. Extensive data collection <strong>in</strong>to Jigsaw would still be required and there would be<br />
only limited capability for search<strong>in</strong>g on product availability across <strong>England</strong>. Investment<br />
would be required develop a national web portal l<strong>in</strong>k<strong>in</strong>g regions and dest<strong>in</strong>ations, and this<br />
could <strong>in</strong>clude a search eng<strong>in</strong>e to enable consumers to f<strong>in</strong>d products held <strong>in</strong> different<br />
locations. DMOs that do not yet have a local e-commerce enabled system would need to<br />
consider this, without assurance that this would fully <strong>in</strong>tegrate with national distribution.<br />
The adoption of this approach seems unlikely to achieve the e-<strong>tourism</strong> <strong>strategy</strong> aims of<br />
enabl<strong>in</strong>g public access to comprehensive <strong>tourism</strong> content or help<strong>in</strong>g small <strong>tourism</strong><br />
enterprises to adapt to an e-bus<strong>in</strong>ess environment.<br />
5.2 A national DMS<br />
This option would seek to build or acquire a comprehensive national system compris<strong>in</strong>g<br />
data management software, search eng<strong>in</strong>e, book<strong>in</strong>g and transactions facilities. This would<br />
extend beyond the Jigsaw product <strong>in</strong>formation database <strong>in</strong>to the host<strong>in</strong>g of a full product<br />
availability (<strong>in</strong>ventory) database and associated software to manage this highly volatile<br />
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<strong>in</strong>formation. Technically, this would be the simplest solution, and could potentially be<br />
developed <strong>in</strong> partnership with a commercial operator, help<strong>in</strong>g to spread the costs and risks.<br />
The ma<strong>in</strong> drawback, however, would be that dest<strong>in</strong>ations with exist<strong>in</strong>g dest<strong>in</strong>ation<br />
management solutions would not <strong>in</strong>tegrate directly <strong>in</strong>to the national DMS and potentially<br />
would lose bus<strong>in</strong>ess to it. This is likely to deter the participation of dest<strong>in</strong>ations with wellestablished<br />
local systems, <strong>in</strong>clud<strong>in</strong>g most seaside resorts and major cities, and result <strong>in</strong><br />
duplication. It would also add <strong>in</strong>convenience for <strong>tourism</strong> providers, who would need to<br />
work with either or both national and local systems. Such non-participation <strong>in</strong> the scheme<br />
seems likely to render this option unattractive to the ma<strong>in</strong> stakeholders, with consequential<br />
reduction of the value to consumers. This would thus fall considerably short of a fully<br />
<strong>in</strong>tegrated English <strong>tourism</strong> <strong>in</strong>dustry.<br />
5.3 A federal network approach<br />
The federal approach comb<strong>in</strong>es the advantages of each of the first two options. It would<br />
deliver the <strong>in</strong>frastructure that would enable <strong>tourism</strong> product <strong>in</strong>formation to be shared via a<br />
national <strong>in</strong>teroperability standard and a communications backbone. This would enable a<br />
national level of content <strong>in</strong>tegration and search capability to enable easy access to <strong>tourism</strong><br />
product <strong>in</strong>formation at national, regional and local levels, <strong>in</strong>clud<strong>in</strong>g access to book<strong>in</strong>g and<br />
payment services. Much of the <strong>in</strong>formation would be ma<strong>in</strong>ta<strong>in</strong>ed locally by RTBs, DMOs and<br />
TICs and exchanged via the communications backbone. DMS suppliers would be<br />
encouraged to participate <strong>in</strong> def<strong>in</strong><strong>in</strong>g the <strong>in</strong>teroperability standard, enabl<strong>in</strong>g them to offer<br />
DMOs <strong>in</strong>tegration with the national framework. DMOs not yet us<strong>in</strong>g such systems would<br />
f<strong>in</strong>d it easier to do so.<br />
This hybrid option seems more likely to attract the greatest uptake of dest<strong>in</strong>ations and<br />
<strong>tourism</strong> providers, br<strong>in</strong>g most <strong>in</strong>tegration and access to the widest sources of product<br />
<strong>in</strong>formation for the consumer, and thereby maximise the success of the project. This should<br />
lead to an overall reduction <strong>in</strong> duplication of data collection and greater participation by<br />
<strong>tourism</strong> providers, lead<strong>in</strong>g to more cost-effective operation. As such, this option would<br />
appear to offer the best prospects for contribut<strong>in</strong>g towards the susta<strong>in</strong>ability of local<br />
<strong>tourism</strong> services, most of which are dependent upon local authority support.<br />
This is therefore the recommended strategic approach – one which was widely supported <strong>in</strong><br />
the consultation process – and forms the basis for the proposed <strong>England</strong>Net Onl<strong>in</strong>e Tourism<br />
Network.<br />
<strong>England</strong>Net is therefore be<strong>in</strong>g developed by ETC and the RTBs, the organisations currently<br />
responsible for manag<strong>in</strong>g national <strong>tourism</strong> data services <strong>in</strong> <strong>England</strong>, as the vehicle to<br />
implement this <strong>strategy</strong>. It will be an <strong>in</strong>dustry-wide network offer<strong>in</strong>g a range of electronic<br />
bus<strong>in</strong>ess and market<strong>in</strong>g services to the <strong>in</strong>dustry, and designed from the outset to work with<br />
exist<strong>in</strong>g dest<strong>in</strong>ation management systems at regional and local level. It is vital that the<br />
implementation of this project should be mutually beneficial to all concerned, lead<strong>in</strong>g to<br />
stronger, more effective work<strong>in</strong>g relationships across the whole sphere of <strong>tourism</strong><br />
development.<br />
The <strong>England</strong>Net objectives and proposed outputs are discussed further <strong>in</strong> section 6.<br />
In adopt<strong>in</strong>g this <strong>strategy</strong>, <strong>England</strong>Net must be realistic about the ability of all DMOs and<br />
DMSs to deliver the necessary <strong>in</strong>put, whether <strong>in</strong> terms of quality or quantity. Inevitably<br />
there will be situations where DMOs do not have the resources or, <strong>in</strong> some cases perhaps,<br />
the motivation, to deliver the <strong>in</strong>put required with<strong>in</strong> the federal approach. Recognis<strong>in</strong>g this,<br />
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RTBs will have an important role to quality assure the local <strong>in</strong>put and operate back-up<br />
mechanisms to deal with any deficiencies or gaps <strong>in</strong> data provision.<br />
5.4 Complementary activity<br />
Complementary to <strong>England</strong>Net, action will also be required to exploit other <strong>tourism</strong>-related<br />
content and features at regional and local level (such as countryside, leisure or events data),<br />
to provide consumer access through regional websites, publications and other channels<br />
(eg via libraries and local kiosk access projects). There is also a need for a susta<strong>in</strong>ed<br />
programme of ‘Bus<strong>in</strong>ess Animation’ activity at local level to promote e-bus<strong>in</strong>ess awareness,<br />
skills and best practice for <strong>tourism</strong> providers, and stimulate participation <strong>in</strong> the onl<strong>in</strong>e<br />
<strong>tourism</strong> network to enable access to <strong>in</strong>ventories, reservation and payments facilities.<br />
Diagram 1: Schematic illustration of the recommended strategic approach<br />
20/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
6. Key roles <strong>in</strong> support of e-<strong>tourism</strong> development<br />
As has been noted, significant work has already been undertaken <strong>in</strong> the development of<br />
local dest<strong>in</strong>ation management systems with<strong>in</strong> <strong>England</strong>. There is therefore much <strong>in</strong>formation<br />
and expertise already available. However, there is also a natural reluctance to re-<strong>in</strong>vest and<br />
to change bus<strong>in</strong>ess practices. If new systems are to be <strong>in</strong>troduced successfully, the exist<strong>in</strong>g<br />
players must be <strong>in</strong>volved <strong>in</strong> the process, <strong>in</strong>vited to contribute expertise and offered solutions<br />
which fit exist<strong>in</strong>g frameworks.<br />
Whilst there will be opportunities for commercially susta<strong>in</strong>able e-commerce developments<br />
once <strong>England</strong>Net is <strong>in</strong> place, a substantial part of the e-<strong>tourism</strong> agenda has wider, strategic<br />
objectives - ie to enhance <strong>in</strong>dustry performance through the provision of widely-accessible<br />
services that do not directly generate <strong>in</strong>come. There is therefore a strong case for public<br />
fund<strong>in</strong>g to support the essential core elements of the system.<br />
The <strong>England</strong>Net project will be the cornerstone for deliver<strong>in</strong>g the aims of the <strong>strategy</strong>,<br />
provid<strong>in</strong>g the central operat<strong>in</strong>g framework and the focus for co-ord<strong>in</strong>ated action at regional<br />
and local level. This needs to be complemented by efforts to raise awareness and skills<br />
amongst <strong>tourism</strong> providers, especially the smaller bus<strong>in</strong>esses, to be able to take full<br />
advantage of electronic market<strong>in</strong>g and e-commerce.<br />
6.1 <strong>England</strong>Net<br />
The fundamental aim of <strong>England</strong>Net is to enable ‘one-stop-shopp<strong>in</strong>g’ for all <strong>England</strong>’s<br />
<strong>tourism</strong> products. To achieve this, the project will pursue the follow<strong>in</strong>g key objectives:<br />
• Create a national <strong>in</strong>teroperability standard and <strong>in</strong>frastructure for <strong>England</strong> to connect<br />
exist<strong>in</strong>g regional and local <strong>tourism</strong> <strong>in</strong>formation systems<br />
• Provide a secure and effective communication network for ETC and RTBs<br />
• Ensure that all dest<strong>in</strong>ations are able to adopt viable DMS services<br />
• Deliver high quality data to meet the service requirements of the BTA, ETC, RTBs and<br />
other organisations concerned with <strong>tourism</strong> at national and local level<br />
• Offer an end-to-end book<strong>in</strong>g service to end consumers and re-sellers.<br />
The products of <strong>England</strong>Net are therefore of three types:<br />
Community Build<strong>in</strong>g Services: These will enable RTBs, DMO/TICS, ETC, BTA to promote the<br />
development of communities of travellers, traders, suppliers, providers via for forums etc<br />
which will encourage greater use of the other services offered by RTBs, DMO/TICs, ETC,<br />
BTA. The first example of a community service is the ENTICE TIC extranet.<br />
Content Management System (CMS) services: This will enable BTA, ETC, RTBs, to acquire,<br />
edit and publish <strong>tourism</strong> <strong>in</strong>formation for market<strong>in</strong>g. Data for the CMS will be acquired via<br />
web forms and from onl<strong>in</strong>e connections to DMSs operated by DMO/TICs and RTBs. The<br />
CMS will also be used to support the community services.<br />
E-commerce Services: This will enable end-consumers and re-sellers to access the whole<br />
SME <strong>tourism</strong> product of <strong>England</strong>, search, book, and pay for it through a s<strong>in</strong>gle application<br />
such as VisitBrita<strong>in</strong> or Travel<strong>England</strong>. This will require <strong>England</strong>Net <strong>in</strong>frastructure to<br />
<strong>in</strong>teroperate with the DMSs operated by RTBs and DMO/TICs. Interoperability must<br />
therefore be developed for:<br />
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• DMSs and other content systems (also needed for the CMS service)<br />
• Third party e-commerce providers, such as e-payment service providers<br />
• Customer applications auch as the BTA/ETC websites.<br />
In addition, a model has been prepared for a national virtual call centre based upon call<br />
centre services operated by RTBs, DMOs and TICs. The objective of the call centre is to<br />
support the onl<strong>in</strong>e book<strong>in</strong>g services.<br />
In general <strong>England</strong>Net will provide:<br />
• Quality of Data management guidel<strong>in</strong>es<br />
• model commercial contracts (eg between providers and DMS operators)<br />
• Quality of Service (SLA) guidel<strong>in</strong>es for DMS operators<br />
• customer relationship management guidel<strong>in</strong>es<br />
• Security guidel<strong>in</strong>es<br />
• Will promulgate new opportunities for <strong>tourism</strong> providers, DMO/TICs and RTBs that will<br />
arise from the onl<strong>in</strong>e <strong>England</strong>Net <strong>in</strong>frastructure.<br />
The <strong>England</strong>Net model envisages that data will be ma<strong>in</strong>ta<strong>in</strong>ed on DMSs, with replication of<br />
non-volatile data (product descriptions) to the <strong>England</strong>Net central database (which <strong>in</strong>cludes<br />
Jigsaw). Customer book<strong>in</strong>gs will require rout<strong>in</strong>g of the availability queries and book<strong>in</strong>g<br />
requests to the regional/local DMSs.<br />
<strong>England</strong>Net will also offer host<strong>in</strong>g solutions on a remote-access basis, such as DMSs,<br />
f<strong>in</strong>ancial management software, membership management or customer relationship<br />
management applications <strong>in</strong> order to reduce the ma<strong>in</strong>tenance costs to DMO/TIC, RTBs.<br />
Achiev<strong>in</strong>g these outputs is expected to result <strong>in</strong> a range of tangible benefits:<br />
• Increased number of book<strong>in</strong>gs and spread of book<strong>in</strong>gs of <strong>tourism</strong> product <strong>in</strong> <strong>England</strong><br />
• Increased value of product sold by enabl<strong>in</strong>g the packag<strong>in</strong>g of product by the endcustomer<br />
and by re-sellers<br />
• Reduced net costs of market<strong>in</strong>g and distribution for small <strong>tourism</strong> bus<strong>in</strong>esses<br />
• Improved cost-effectiveness of market<strong>in</strong>g for BTA, ETC RTBs and DMOs<br />
• Increased revenue to help susta<strong>in</strong> RTB, DMO and TIC services<br />
• Improved community access to <strong>tourism</strong> <strong>in</strong>formation<br />
• Improved economic competitiveness and assist <strong>in</strong> deliver<strong>in</strong>g government e-bus<strong>in</strong>ess<br />
objectives.<br />
Substantive progress is now be<strong>in</strong>g made on the development of <strong>England</strong>Net. Treasury<br />
fund<strong>in</strong>g has been granted to assist the development, and a Project Director and other<br />
<strong>England</strong>Net team members appo<strong>in</strong>ted. Construction of the core Content Management<br />
System is underway, and the ‘ENTICE’ TIC extranet has been built.<br />
ETC and the RTBs will oversee the project via the <strong>England</strong>Net Management Committee (or<br />
company board), while the RTBs will be responsible for promot<strong>in</strong>g and provid<strong>in</strong>g its<br />
services, acquir<strong>in</strong>g content and develop<strong>in</strong>g bus<strong>in</strong>ess opportunities with<strong>in</strong> each region. The<br />
exist<strong>in</strong>g Tourism Technology Work<strong>in</strong>g Group will cont<strong>in</strong>ue to have a consultative role.<br />
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As <strong>England</strong>Net develops 3 , the potential for <strong>in</strong>volv<strong>in</strong>g commercial partners will be explored,<br />
where this can br<strong>in</strong>g added value <strong>in</strong> terms of technical development, market<strong>in</strong>g or<br />
e-bus<strong>in</strong>ess services. This is discussed further <strong>in</strong> the follow<strong>in</strong>g section.<br />
6.2 Public and private sector roles<br />
The scope for attract<strong>in</strong>g private sector support to <strong>in</strong>vest <strong>in</strong> provid<strong>in</strong>g many of the services<br />
relevant to this <strong>strategy</strong> was tested <strong>in</strong> market sound<strong>in</strong>gs and research carried out by ETC <strong>in</strong><br />
early 2001. Several companies have expressed an <strong>in</strong>terest <strong>in</strong> be<strong>in</strong>g <strong>in</strong>volved as suppliers <strong>in</strong><br />
aspects of the <strong>England</strong>Net project, but this has not extended to fund<strong>in</strong>g or underwrit<strong>in</strong>g<br />
any of the required core components. It is likely that only the public sector can make the<br />
<strong>in</strong>itial <strong>in</strong>vestment <strong>in</strong> the network<strong>in</strong>g of <strong>tourism</strong> dest<strong>in</strong>ation services because the open<br />
standards and comprehensive nature of such work is not a priority for private sector<br />
<strong>in</strong>vestment.<br />
The most realistic approach would appear to be one which recognises the need to satisfy<br />
broader social and economic objectives and to upgrade and improve the professionalism of<br />
the whole <strong>tourism</strong> <strong>in</strong>dustry. There may well be potential for attract<strong>in</strong>g private sector<br />
<strong>in</strong>volvement <strong>in</strong> future developments once the framework is <strong>in</strong> place. Options for public<br />
private partnership should therefore be reviewed as <strong>England</strong>Net progresses. The ability for<br />
<strong>England</strong>Net to generate realistic revenue streams will help to attract such private sector<br />
<strong>in</strong>volvement.<br />
The aim of any public-private collaboration should be to develop a susta<strong>in</strong>able future for<br />
<strong>England</strong>Net that would keep the long-term public sector commitment to that necessary to<br />
ensure that the core objectives of open standards and comprehensive coverage cont<strong>in</strong>ue to<br />
be fulfilled.<br />
6.2.1 English Tourism Council<br />
ETC is accountable to DCMS for the f<strong>in</strong>ancial and management control of Government<br />
fund<strong>in</strong>g for the <strong>England</strong>Net project. As such it has a key role <strong>in</strong> oversee<strong>in</strong>g the successful<br />
implementation of <strong>England</strong>Net, <strong>in</strong>clud<strong>in</strong>g the establishment of the legal entity underp<strong>in</strong>n<strong>in</strong>g<br />
the project <strong>in</strong> partnership with RTBs and <strong>in</strong> l<strong>in</strong>e with Government guidel<strong>in</strong>es for public<br />
private partnerships.<br />
As the statutory national <strong>tourism</strong> organisation for <strong>England</strong>, ETC also has a leadership role <strong>in</strong><br />
support of e-<strong>tourism</strong> generally, which <strong>in</strong>cludes:<br />
• driv<strong>in</strong>g the development and exploitation of <strong>England</strong>Net, and support<strong>in</strong>g activities such<br />
as awareness and tra<strong>in</strong><strong>in</strong>g programmes<br />
• guid<strong>in</strong>g future market<strong>in</strong>g and e-<strong>tourism</strong> strategies <strong>in</strong> collaboration with national and<br />
regional partners such as RTBs, RDAs and <strong>in</strong>dustry bodies<br />
• encourag<strong>in</strong>g the adoption of common data standards by DMS software suppliers<br />
• liais<strong>in</strong>g with BTA to ensure that opportunities for collaboration <strong>in</strong> technical<br />
development, market<strong>in</strong>g and distribution of content are exploited effectively.<br />
Operationally, ETC is responsible for ensur<strong>in</strong>g that <strong>tourism</strong> data is collected and managed to<br />
meet national requirements, publish<strong>in</strong>g national ‘Where to Stay’ guides, and for<br />
3 Up-to-date <strong>in</strong>formation on <strong>England</strong>Net is available on the project website,<br />
www.englandnet.org.uk.<br />
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coord<strong>in</strong>at<strong>in</strong>g support programmes l<strong>in</strong>ked to <strong>England</strong>Net, such as TIC modernisation and<br />
e-bus<strong>in</strong>ess awareness activities.<br />
6.2.2 British Tourist Authority and UK National Tourist Boards<br />
BTA’s objectives are to exploit new media and communications technologies with a view to<br />
motivate and <strong>in</strong>form potential overseas customers about the whole of Brita<strong>in</strong> and its<br />
<strong>tourism</strong> services and products. In addition to BTA and ETC collaborat<strong>in</strong>g on the<br />
development and use of <strong>tourism</strong> product data, other opportunities for jo<strong>in</strong>t work<strong>in</strong>g or<br />
cooperation should be explored where functional requirements are similar and efficiency<br />
sav<strong>in</strong>gs may accrue.<br />
This should <strong>in</strong>clude collaboration on <strong>in</strong>teroperability standards at national level. There is a<br />
particular need for collaboration between BTA, <strong>England</strong>Net, VisitScotland, Wales Tourist<br />
Board and the Northern Ireland Tourist Board to ensure that open data exchange standards<br />
are applied, to enable ease of access to <strong>tourism</strong> <strong>in</strong>formation across the UK. Other<br />
opportunities could <strong>in</strong>clude collaboration over the development of geographical<br />
<strong>in</strong>formation systems, content distribution opportunities, customer <strong>in</strong>teraction services, and<br />
research <strong>in</strong>to the effectiveness of onl<strong>in</strong>e services.<br />
6.2.3 Regional Tourist Boards<br />
RTBs will have a key role <strong>in</strong> manag<strong>in</strong>g the rollout of <strong>England</strong>Net, <strong>in</strong>clud<strong>in</strong>g oversee<strong>in</strong>g data<br />
quality and manag<strong>in</strong>g the ENTICE rollout to TICs. They should also lead the delivery of<br />
activities to promote e-bus<strong>in</strong>ess awareness and skills, and improve bus<strong>in</strong>esses’ participation<br />
<strong>in</strong> <strong>England</strong>Net.<br />
Most RTBs have prepared, or are prepar<strong>in</strong>g, regional e-<strong>tourism</strong> strategies to guide the<br />
development and support for e-bus<strong>in</strong>ess with<strong>in</strong> the region and the ways <strong>in</strong> which this can<br />
be <strong>in</strong>tegrated with their own corporate plans.<br />
Regional e-<strong>tourism</strong> strategies should set out clearly the way <strong>in</strong> which local data<br />
management and network developments will relate to the national picture for <strong>England</strong>. This<br />
will need to cover the way <strong>in</strong> which local data is def<strong>in</strong>ed, collected and quality-checked, and<br />
how regional and local DMS solutions will <strong>in</strong>teract with <strong>England</strong>Net. To assist <strong>in</strong> this process<br />
several RTBs have also set up regional e-<strong>tourism</strong>/ICT work<strong>in</strong>g groups or forums, and are<br />
explor<strong>in</strong>g collaborative opportunities with RDAs, DMOs and bus<strong>in</strong>ess support agencies.<br />
6.2.4 Dest<strong>in</strong>ation Management Organisations<br />
DMOs <strong>in</strong>variably have the closest contact with local <strong>tourism</strong> providers, often made tangible<br />
via local TICs. Most DMOs have traditionally been operated or at least part-funded, by local<br />
authorities, now under an <strong>in</strong>creas<strong>in</strong>g obligation to demonstrate how their services meet<br />
Best Value criteria. Some services could be reduced as this pressure <strong>in</strong>creases. An effective<br />
e-bus<strong>in</strong>ess <strong>strategy</strong> could assist the susta<strong>in</strong>ability of DMOs by demonstrat<strong>in</strong>g how local<br />
services can l<strong>in</strong>k <strong>in</strong>to regional and national frameworks, reduc<strong>in</strong>g duplication and <strong>in</strong>creas<strong>in</strong>g<br />
market reach. DMOs have an important part to play <strong>in</strong> encourag<strong>in</strong>g local <strong>tourism</strong> providers<br />
to adapt to e-bus<strong>in</strong>ess, and could assist this by support<strong>in</strong>g local ICT/e-bus<strong>in</strong>ess forums or<br />
bus<strong>in</strong>ess advisory workshops. RTBs will be responsible for develop<strong>in</strong>g work<strong>in</strong>g relationships<br />
with DMOs as part of the rollout of <strong>England</strong>Net and related regional ICT and tra<strong>in</strong><strong>in</strong>g<br />
services.<br />
24/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
6.2.5 Regional Development Agencies<br />
Regional Development Agencies (RDAs) have an <strong>in</strong>creas<strong>in</strong>gly important role <strong>in</strong> support of<br />
regional economic development. This <strong>in</strong>cludes develop<strong>in</strong>g cross-sectoral ICT strategies for<br />
the development of e-bus<strong>in</strong>ess and for the support<strong>in</strong>g communications <strong>in</strong>frastructure<br />
required. RDAs recognise the importance of broadband communications for regional<br />
development, and seek to address the challenges of ensur<strong>in</strong>g that remote rural areas are<br />
not excluded from such services. Whilst the drivers for broadband networks may be the<br />
data-rich requirements of health and educational services, rural <strong>tourism</strong> services could also<br />
benefit.<br />
RDAs should therefore assist the development of e-bus<strong>in</strong>ess <strong>in</strong> <strong>tourism</strong> by consider<strong>in</strong>g:<br />
• The needs and opportunities for <strong>tourism</strong> with<strong>in</strong> their own ICT strategies<br />
• The potential for <strong>tourism</strong> services to benefit from, and contribute to, communications<br />
<strong>in</strong>frastructure/broadband <strong>in</strong>itiatives – eg by strengthen<strong>in</strong>g the case for local <strong>in</strong>formation<br />
<strong>in</strong>tegration for residents as well as for visitors<br />
• Support<strong>in</strong>g RTBs and DMOs <strong>in</strong> <strong>tourism</strong> <strong>in</strong>formation system implementation<br />
• E-bus<strong>in</strong>ess animation and tra<strong>in</strong><strong>in</strong>g <strong>in</strong>itiatives aimed at small <strong>tourism</strong> bus<strong>in</strong>esses<br />
• The needs of the <strong>tourism</strong> sector <strong>in</strong> the implement<strong>in</strong>g of regional <strong>in</strong>dustry extranets or<br />
onl<strong>in</strong>e ‘portal’ services – <strong>in</strong>clud<strong>in</strong>g the need for access to specialist resources provided<br />
nationally (eg via <strong>England</strong>Net).<br />
6.2.6 Other organisations<br />
A number of other organisations have responsibilities relevant to the support of e-bus<strong>in</strong>ess<br />
development, and should therefore be encouraged to support this <strong>strategy</strong> and play a part<br />
<strong>in</strong> deliver<strong>in</strong>g some of the support<strong>in</strong>g activities. These <strong>in</strong>clude the Countryside Agency, the<br />
Small Bus<strong>in</strong>ess Service and UK onl<strong>in</strong>e for bus<strong>in</strong>ess.<br />
The Tourism Technology Work<strong>in</strong>g Group (TTWG), chaired by ETC and <strong>in</strong>volv<strong>in</strong>g BTA, RTBs,<br />
the Tourism Management Institute, Local Government Association and other<br />
representatives, will cont<strong>in</strong>ue to act as an advisory forum on DMO e-bus<strong>in</strong>ess issues. It<br />
should also be a consultative forum for <strong>England</strong>Net to reflect the user requirements of local<br />
authorities and other dest<strong>in</strong>ation management organisations. It will also oversee<br />
dissem<strong>in</strong>ation of <strong>in</strong>formation on project outcomes via regional workshop events and other<br />
means.<br />
25/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
7. An agenda for action for e-<strong>tourism</strong><br />
A five-po<strong>in</strong>t agenda for action is proposed as a framework with<strong>in</strong> which <strong>England</strong>’s <strong>tourism</strong><br />
bus<strong>in</strong>esses and organisations can realise the opportunities offered by e-bus<strong>in</strong>ess.<br />
7.1 Realis<strong>in</strong>g the potential of electronic market<strong>in</strong>g<br />
The advent of Internet, mobile telephony and digital <strong>in</strong>teractive television is hav<strong>in</strong>g a major<br />
impact on the way <strong>tourism</strong> products are marketed and sold. The web can be a costeffective<br />
medium for publish<strong>in</strong>g <strong>in</strong>formation and provid<strong>in</strong>g a transactional capability for<br />
customers as part of a dest<strong>in</strong>ation market<strong>in</strong>g <strong>strategy</strong>. Email conveys <strong>in</strong>formation directly,<br />
cheaply and at short notice to prime prospects. Electronic market<strong>in</strong>g enables organisations<br />
to engage with customers on a one-to-one basis, and can be used also to promote ‘one-tomany’<br />
activities, whereby large numbers of potential visitors can be attracted to a<br />
dest<strong>in</strong>ation or company’s website.<br />
‘E-market<strong>in</strong>g’ should, however, be undertaken <strong>in</strong> harmony with traditional ‘offl<strong>in</strong>e’<br />
market<strong>in</strong>g activities as part of an e-bus<strong>in</strong>ess <strong>strategy</strong> more closely <strong>in</strong>tegrat<strong>in</strong>g the<br />
promotional, sales and fulfilment roles of websites, brochures and telephone support<br />
services. Campaign strategies will need to position the role of pr<strong>in</strong>ted media alongside<br />
electronic market<strong>in</strong>g to maximise returns on <strong>in</strong>vestment.<br />
One strategic priority for <strong>England</strong> at national level is to ensure that good quality content is<br />
routed through BTA and the VisitBrita<strong>in</strong> family of websites to reach overseas markets, and<br />
to redevelop the Travel<strong>England</strong> web portal as a platform for domestic market<strong>in</strong>g<br />
campaigns. Attention should also be given to l<strong>in</strong>k<strong>in</strong>g the latter to pro-active e-market<strong>in</strong>g<br />
campaigns us<strong>in</strong>g customer databases, personalisation and market<strong>in</strong>g partnerships.<br />
To realise the potential of electronic market<strong>in</strong>g access to onl<strong>in</strong>e book<strong>in</strong>gs and transactions<br />
facilities will need to become more widely available across the <strong>in</strong>dustry. There may be<br />
opportunities at the national level to l<strong>in</strong>k to specific web-based reservations systems<br />
operated by commercial groups and consortia, and this should be explored. However, a<br />
priority for <strong>England</strong>Net should be to enable search<strong>in</strong>g and book<strong>in</strong>g based on up-to-date<br />
<strong>in</strong>ventory held on local Dest<strong>in</strong>ation Management Systems where these exist, and to support<br />
the extension of these services to other areas. To ensure that revenues cont<strong>in</strong>ue to be<br />
available to support local DMO and TIC services, this will need to be underp<strong>in</strong>ned by a<br />
revenue-shar<strong>in</strong>g bus<strong>in</strong>ess model.<br />
26/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Key Actions Lead role Others<br />
<strong>in</strong>volved<br />
Redevelop the Travel<strong>England</strong> website as a <strong>England</strong>Net ETC, RTBs,<br />
national web portal to support a range of<br />
other<br />
<strong>England</strong> market<strong>in</strong>g campaigns<br />
partners<br />
Launch full e-commerce services on<br />
Travel<strong>England</strong><br />
Ensure that improved <strong>England</strong> <strong>tourism</strong><br />
<strong>in</strong>formation is available for distribution to<br />
overseas markets via the VisitBrita<strong>in</strong> website<br />
and other channels<br />
Support the extension of DMS services to areas<br />
not yet effectively covered<br />
Implement Customer Relationship<br />
Management and Market<strong>in</strong>g as an <strong>in</strong>tegral and<br />
important aspect of dest<strong>in</strong>ation market<strong>in</strong>g. This<br />
will require development of an accurate, wellresearched<br />
customer database, compiled at<br />
different po<strong>in</strong>ts of customer contact, and the<br />
tools to exploit them.<br />
Develop a susta<strong>in</strong>able bus<strong>in</strong>ess model for<br />
onl<strong>in</strong>e book<strong>in</strong>gs via <strong>England</strong>Net<br />
Establish the foundations for future market<strong>in</strong>g<br />
partnerships with key private sector players<br />
<strong>England</strong>Net<br />
BTA<br />
<strong>England</strong>Net<br />
<strong>England</strong>Net<br />
ETC, RTBs,<br />
other<br />
partners<br />
<strong>England</strong>Net,<br />
ETC, RTBs,<br />
DMOs<br />
RTBs, RDAs,<br />
DMOs, DMS<br />
suppliers<br />
RTBs, DMOs,<br />
possible<br />
collaboration<br />
with BTA<br />
Time<br />
From late<br />
2002<br />
onwards<br />
By<br />
December<br />
2003<br />
from late<br />
2002<br />
onwards<br />
From late<br />
2002<br />
onwards<br />
late 2003<br />
<strong>England</strong>Net ETC, RTBs By<br />
September<br />
2002<br />
<strong>England</strong>Net<br />
ETC, RTBs,<br />
RDAs, DMOs<br />
By March<br />
2004<br />
27/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
7.2 Modernis<strong>in</strong>g <strong>in</strong>formation services offered to consumers<br />
ICT and e-bus<strong>in</strong>ess have major implications for the delivery of <strong>in</strong>formation and reservations<br />
services to consumers, whether at home, travell<strong>in</strong>g or with<strong>in</strong> the dest<strong>in</strong>ation. They enable<br />
exist<strong>in</strong>g services to be operated more efficiently while also open<strong>in</strong>g up many new channels<br />
through which <strong>in</strong>formation may be accessed. These new channels will need to be evaluated<br />
and trialed as they become of potential significance.<br />
An Information Services Strategy was commissioned by the RTBs <strong>in</strong> 2000, based on a survey<br />
of the whole TIC network and consultation with DMOs. An outcome of this work was a<br />
recommendation that an application be developed to improve communication and the flow<br />
of <strong>in</strong>formation between TICs, DMOs and RTBs that would complement exist<strong>in</strong>g local DMS<br />
services. Northumbria Tourist Board’s ENTICE TIC extranet successfully demonstrated this<br />
concept dur<strong>in</strong>g 2001. Development of a national version of this is therefore proposed, to<br />
<strong>in</strong>clude access to the national product database, onl<strong>in</strong>e bullet<strong>in</strong> boards and discussion<br />
forums. The application would be delivered by RTBs, with the technical <strong>in</strong>frastructure be<strong>in</strong>g<br />
provided by <strong>England</strong>Net.<br />
Key Actions Lead role Others<br />
<strong>in</strong>volved<br />
Develop the ENTICE web-based network to <strong>England</strong>Net RTBs, RDAs<br />
enable TICs and DMOs to access both the<br />
DMOs,<br />
national product database and a range of<br />
support<br />
browser-enabled functions and services.<br />
from RDAs<br />
Build local onl<strong>in</strong>e communities l<strong>in</strong>k<strong>in</strong>g TICs via<br />
the Internet to <strong>tourism</strong> providers, either by<br />
e-mail, or by access to their websites.<br />
Undertake trials for the delivery of visitor<br />
services through new channels – eg web access<br />
from hotel rooms; Internet-enabled payphones;<br />
handheld mobile devices, etc<br />
<strong>England</strong>Net<br />
<strong>England</strong>Net<br />
RTBs, RDAs,<br />
DMOs,<br />
ETC, RTBs,<br />
DMOs,<br />
other<br />
partners<br />
Time<br />
Available to<br />
all TICs by<br />
end of 2002<br />
By end of<br />
2003<br />
From<br />
January<br />
2003<br />
7.3 Enhanc<strong>in</strong>g the competitiveness of bus<strong>in</strong>esses and suppliers<br />
The Internet provides an opportunity to create an onl<strong>in</strong>e network (technically, an ‘extranet’)<br />
that will enable stakeholders to communicate easily while also provid<strong>in</strong>g a wide range of<br />
other functions. Such a network could help raise the competitive performance of <strong>tourism</strong><br />
bus<strong>in</strong>esses by improv<strong>in</strong>g day-to-day communication between <strong>tourism</strong> market<strong>in</strong>g<br />
organisations and bus<strong>in</strong>esses, and more specifically by enabl<strong>in</strong>g <strong>tourism</strong> providers to:<br />
• access <strong>tourism</strong> <strong>in</strong>formation (eg on events) for guests<br />
• use onl<strong>in</strong>e tools such as property management/book<strong>in</strong>g systems, e-procurement<br />
services, enabl<strong>in</strong>g, for example, accommodation providers to ma<strong>in</strong>ta<strong>in</strong> their availability<br />
on common databases to enable onl<strong>in</strong>e book<strong>in</strong>gs<br />
• access bus<strong>in</strong>ess support services – such as research and <strong>in</strong>telligence <strong>in</strong>formation<br />
• communicate and do bus<strong>in</strong>ess more easily with each other.<br />
The technical requirements for a basic <strong>in</strong>dustry extranet are relatively straightforward.<br />
However, the operational aspects of implement<strong>in</strong>g it are costly. If the system is to be costeffective,<br />
it will need to have the support of a critical mass of suppliers.<br />
28/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
This same network, with some modifications, may be used for the <strong>in</strong>volvement of the wider<br />
community (schools, colleges, community groups, etc) to create awareness of the<br />
importance of <strong>tourism</strong>, and an understand<strong>in</strong>g of the <strong>in</strong>dustry. It could also provide a<br />
mechanism for consultation on future <strong>tourism</strong> strategies. Similarly, the extranet could<br />
provide the means for prov<strong>in</strong>cial and local government departments and other public<br />
agencies to access the knowledge base to help estimate economic impact and to guide<br />
specific policy decisions.<br />
Key Actions Lead role Others<br />
<strong>in</strong>volved<br />
Develop an <strong>in</strong>teractive bus<strong>in</strong>ess-fac<strong>in</strong>g web<br />
portal to provide a convenient po<strong>in</strong>t of access<br />
to web forms, bus<strong>in</strong>ess advice and <strong>in</strong>telligence<br />
Promote <strong>in</strong>tegration of <strong>tourism</strong> content with<strong>in</strong><br />
regional <strong>in</strong>formation systems and support<br />
bus<strong>in</strong>ess-to-bus<strong>in</strong>ess development <strong>in</strong>itiatives.<br />
Promote <strong>in</strong>tegration of <strong>tourism</strong> content with<br />
other <strong>tourism</strong> related content at national level<br />
Develop other onl<strong>in</strong>e <strong>tourism</strong> community<br />
services<br />
Develop new onl<strong>in</strong>e tools for use by <strong>tourism</strong><br />
providers<br />
Time<br />
<strong>England</strong>Net RTBs From<br />
December<br />
2002<br />
RTBs<br />
ETC<br />
<strong>England</strong>Net<br />
RDAs,<br />
<strong>England</strong>Net<br />
<strong>England</strong>Net,<br />
BTA<br />
Countryside<br />
Agency,<br />
others<br />
ETC, RTBs,<br />
DMOs,<br />
TTWG<br />
From<br />
December<br />
2002<br />
From<br />
January<br />
2003<br />
2003-04<br />
<strong>England</strong>Net RTBs 2003-04<br />
7.4 Develop<strong>in</strong>g standards for comprehensive <strong>tourism</strong> <strong>in</strong>formation<br />
Accurate, up-to-date <strong>in</strong>formation is central to all aspects of <strong>tourism</strong> management –<br />
<strong>in</strong>clud<strong>in</strong>g market<strong>in</strong>g, product development and research. A key pr<strong>in</strong>ciple for <strong>in</strong>formation<br />
collection that underlies this <strong>strategy</strong> is to ‘collect once and distribute freely through a<br />
range of channels and media, to meet the needs of consumers’. The aim should be to<br />
enable product data to be collected electronically.<br />
However, to be truly efficient it is vital that any exist<strong>in</strong>g duplication of effort is elim<strong>in</strong>ated<br />
and that common standards for data collection and storage are def<strong>in</strong>ed. The priority is to<br />
agree a def<strong>in</strong>ition for <strong>England</strong>-wide standards of <strong>tourism</strong> data types and structures that can:<br />
• provide a framework for local / sub-regional <strong>tourism</strong> data collection and distribution<br />
• be effectively distributed and used by a variety of organisations<br />
• be <strong>in</strong>tegrated <strong>in</strong>to a national, <strong>England</strong>-wide <strong>tourism</strong> product database.<br />
In the longer term, as standards for data exchange (or <strong>in</strong>teroperability) evolve, the <strong>in</strong>dustry<br />
will move away from traditional structured databases. It will become possible to search data<br />
held <strong>in</strong> different formats and present the results <strong>in</strong> a consistent way.<br />
The development by BTA and ETC of the new Jigsaw <strong>tourism</strong> product database us<strong>in</strong>g web<br />
compatible standards for data has, <strong>in</strong> effect, established a core data set on which DMS<br />
suppliers have been consulted. Compatible dest<strong>in</strong>ation data could, on this basis, be<br />
29/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
imported <strong>in</strong>to Jigsaw. This is, however, only a first step towards achiev<strong>in</strong>g the k<strong>in</strong>d of<br />
<strong>in</strong>teroperability that is required to fully support electronic search<strong>in</strong>g and book<strong>in</strong>g. Further<br />
work is required as part of the <strong>England</strong>Net development to extend the core data standards<br />
to cover product <strong>in</strong>ventory (eg room or ticket availability) data. Dest<strong>in</strong>ation system suppliers<br />
whose software is compliant with the agreed data standards should then be endorsed by<br />
<strong>England</strong>Net to advertise as such. This endorsement could take the form of a kitemark-type<br />
accreditation.<br />
Key Actions Lead role Others<br />
<strong>in</strong>volved<br />
Develop a full e-commerce <strong>in</strong>teroperability <strong>England</strong>Net DMS<br />
standard for <strong>England</strong>, to enable DMO<br />
suppliers,<br />
<strong>in</strong>ventories, <strong>England</strong>Net services and BTA<br />
ETC, BTA,<br />
distribution systems to be l<strong>in</strong>ked<br />
RTBs, TTWG,<br />
Promote the <strong>England</strong>Net <strong>in</strong>teroperability<br />
standard to <strong>England</strong>’s <strong>tourism</strong> <strong>in</strong>dustry<br />
Enable <strong>tourism</strong> product data to be collected<br />
and managed electronically<br />
<strong>England</strong>Net<br />
<strong>England</strong>Net<br />
DMOs<br />
ETC, BTA,<br />
RTBs, TTWG,<br />
DMOs<br />
ETC, BTA,<br />
RTBs<br />
Time<br />
By<br />
September<br />
2002<br />
October<br />
2002<br />
onwards<br />
From late<br />
2002<br />
7.5 Help<strong>in</strong>g stakeholders to make wise <strong>in</strong>vestments<br />
Detailed practical guidance for DMOs on plann<strong>in</strong>g and specification of dest<strong>in</strong>ation systems<br />
and work<strong>in</strong>g with system suppliers was provided <strong>in</strong> ‘Impact Through IT’ produced <strong>in</strong> 1999<br />
by ETB. Further web-based <strong>in</strong>formation is <strong>in</strong> the course of preparation and will <strong>in</strong>clude other<br />
material relevant to future e-bus<strong>in</strong>ess, <strong>in</strong>clud<strong>in</strong>g market <strong>in</strong>telligence, best practice case<br />
studies and l<strong>in</strong>ks to other sources. The Tourism Technology Work<strong>in</strong>g Group (TTWG) has<br />
formed a ‘Knowledge Network’ sub-group to help prepare and advise on material that<br />
should be dissem<strong>in</strong>ated <strong>in</strong> this way.<br />
All of this advisory <strong>in</strong>formation will be set with<strong>in</strong> the context of the <strong>England</strong>Net project.<br />
<strong>England</strong>Net will provide web access to the national product database and to related<br />
applications. Decisions on local action should be taken <strong>in</strong> the knowledge of the services that<br />
will be provided by <strong>England</strong>Net.<br />
The promotion of DMO participation <strong>in</strong> <strong>England</strong>Net and of the advisory services that are<br />
available will require a significant programme of tra<strong>in</strong><strong>in</strong>g and awareness activity for DMO<br />
staff. Achiev<strong>in</strong>g widespread understand<strong>in</strong>g and participation <strong>in</strong> the new electronic services<br />
among small <strong>tourism</strong> bus<strong>in</strong>esses will also require a substantial awareness and tra<strong>in</strong><strong>in</strong>g<br />
programme. It will be especially important to assist the less confident bus<strong>in</strong>ess operators to<br />
recognise the potential benefits to their operations.<br />
Key Actions Lead role Others Time<br />
<strong>in</strong>volved<br />
Make up-to-date guidance and <strong>in</strong>telligence for<br />
<strong>tourism</strong> bus<strong>in</strong>esses and organisations available<br />
on ETC and RTB websites.<br />
ETC TTWG, RTBs Now and<br />
ongo<strong>in</strong>g<br />
30/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Ma<strong>in</strong>ta<strong>in</strong> a communications <strong>strategy</strong> to keep<br />
RTBs, DMOs and the <strong>in</strong>dustry fully advised of<br />
the progress of <strong>England</strong>Net<br />
Provide <strong>England</strong>Net tra<strong>in</strong><strong>in</strong>g and awareness<br />
activity for DMO staff.<br />
Deliver a programme of e-bus<strong>in</strong>ess awareness<br />
and tra<strong>in</strong><strong>in</strong>g tailored to the needs of small<br />
<strong>tourism</strong> bus<strong>in</strong>esses<br />
ETC &<br />
<strong>England</strong>Net<br />
<strong>England</strong>Net<br />
ETC<br />
RTBs, TMI,<br />
LGA, DMS<br />
suppliers<br />
RTBs, ETC,<br />
DMOs<br />
RTBs,<br />
<strong>England</strong>Net,<br />
UK onl<strong>in</strong>e for<br />
bus<strong>in</strong>ess,<br />
Small<br />
Bus<strong>in</strong>ess<br />
Service, etc<br />
Ongo<strong>in</strong>g<br />
July 2002 –<br />
March 2003<br />
September<br />
2002 –<br />
March 2004<br />
7.6 Tak<strong>in</strong>g the <strong>strategy</strong> forward<br />
It is clear that <strong>England</strong>Net is the core vehicle for implement<strong>in</strong>g this <strong>strategy</strong>. The anticipated<br />
delivery timetable for <strong>England</strong>Net can be summarised as follows:<br />
<strong>England</strong>Net milestones<br />
<strong>England</strong>Net bus<strong>in</strong>ess model<br />
Target dates<br />
Completed, RTB versions<br />
by end of July 2002<br />
RTB Regional project plans End of July 2002<br />
The ENTICE extranet for TICs is now available, and rollout and<br />
tra<strong>in</strong><strong>in</strong>g of users has begun<br />
National and regional <strong>England</strong>Net ‘kick-off’ conferences to<br />
<strong>in</strong>volve national and regional bodies such as RTBs, RDAs,<br />
Government Departments and agencies, eg Countryside<br />
Agency, UK onl<strong>in</strong>e for bus<strong>in</strong>ess, SBS.<br />
Awareness and tra<strong>in</strong><strong>in</strong>g programmes for RTBs, TIC and DMO<br />
users<br />
Awareness and tra<strong>in</strong><strong>in</strong>g for small <strong>tourism</strong> bus<strong>in</strong>esses<br />
All TICs to have access by<br />
March 2003.<br />
July-October 2002<br />
From July 2002<br />
From September 2002 to<br />
March 2004<br />
<strong>England</strong>Net to be established as a legal entity September 2002<br />
<strong>England</strong>Net Interoperability Standard completed October 2002<br />
Professional access to <strong>England</strong>Net Content Management<br />
Services available<br />
Public access to <strong>England</strong>Net Community Services (enabl<strong>in</strong>g the<br />
relaunch of improved services on the Travel<strong>England</strong> website)<br />
From December 2002<br />
January 2003<br />
First local <strong>in</strong>tegration projects <strong>in</strong> rural recovery areas January 2003<br />
Public launch of e-commerce services for holiday-makers via<br />
Travel<strong>England</strong> and VisitBrita<strong>in</strong> (via BTA)<br />
Public launch of e-commerce services for re-sellers (eg travel<br />
agents)<br />
December 2003<br />
March 2004<br />
31/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
A communications plan has been prepared which identifies <strong>in</strong>dustry audiences that need to<br />
be made aware of <strong>England</strong>Net, how they should be addressed, and when. This covers<br />
<strong>in</strong>dustry organizations such as UK onl<strong>in</strong>e for bus<strong>in</strong>ess, Small Bus<strong>in</strong>ess Service, Countryside<br />
Agency, national bus<strong>in</strong>ess associations, the Bus<strong>in</strong>ess L<strong>in</strong>ks network, Government<br />
departments and many others.<br />
Communications underway or planned <strong>in</strong>clude:<br />
• Presentations to targeted audiences <strong>in</strong>clud<strong>in</strong>g British Travel Trade Fair and Harrogate<br />
Tourism Information conference (completed) and other <strong>in</strong>dustry conferences and<br />
sem<strong>in</strong>ars<br />
• A national ‘kick-off’ conference and regional workshops for a wide range of contacts<br />
from July to September 2002<br />
• A project <strong>in</strong>formation website, www.englandnet.org.uk, has been launched, an<br />
<strong>in</strong>troductory brochure published and <strong>in</strong> course of be<strong>in</strong>g distributed, and an electronic<br />
newsletter planned.<br />
The role of the Tourism Technology Work<strong>in</strong>g Group as a consultative forum for <strong>England</strong>Net<br />
will also be strengthened to <strong>in</strong>volve other organisations which may be able to assist <strong>in</strong><br />
<strong>in</strong>fluenc<strong>in</strong>g ICT strategies and programmes relevant to <strong>tourism</strong>.<br />
In the light of the grow<strong>in</strong>g importance of Regional Development Agencies, and their<br />
<strong>in</strong>creas<strong>in</strong>g role <strong>in</strong> work<strong>in</strong>g with other non-departmental public bodies (<strong>in</strong>clud<strong>in</strong>g RTBs) <strong>in</strong><br />
each region, some practical steps should be taken to improve communications and<br />
engagement with the <strong>England</strong>Net programme:<br />
• Involve RDAs <strong>in</strong> the plann<strong>in</strong>g and delivery of the proposed <strong>England</strong>Net ‘kick-off’<br />
conference and regional workshops<br />
• Consult on <strong>England</strong>Net proposals, notable the <strong>England</strong>Net bus<strong>in</strong>ess model,<br />
<strong>in</strong>teroperability standards, and regional pathf<strong>in</strong>der/<strong>in</strong>tegration pilot projects, and how<br />
these relate to RDA regional ICT strategies.<br />
• Liaise over strategic issues such as access to Broadband services and e-Government<br />
targets<br />
• Assess the implications of the forthcom<strong>in</strong>g White Paper on Regional Government for<br />
national/regional collaboration on e-<strong>tourism</strong> strategies.<br />
32/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
8. Monitor<strong>in</strong>g and evaluation<br />
To evaluate the impact of this <strong>strategy</strong> requires <strong>in</strong>dicators to be def<strong>in</strong>ed. These <strong>in</strong>dicators<br />
should measure performance both <strong>in</strong> terms of providers and of end-users. To achieve this<br />
coverage, several strands of research and monitor<strong>in</strong>g will need to be undertaken as<br />
<strong>in</strong>dicated <strong>in</strong> the follow<strong>in</strong>g table.<br />
Key Actions Lead role Others<br />
<strong>in</strong>volved<br />
Regular collection and collation of website <strong>England</strong>Net ETC, BTA,<br />
usage data as a basis for performance<br />
RTBs, DMOs<br />
evaluation and benchmark<strong>in</strong>g<br />
Regular research on website users, to analyse<br />
reactions to the various <strong>England</strong>Net products<br />
and other <strong>in</strong>dustry sites, and to provide the<br />
basis for benchmark<strong>in</strong>g<br />
Consumer research to enable assumptions<br />
about the impact of the web to be tested and<br />
assessed over time and to identify the likely<br />
growth <strong>in</strong> the use of other new media<br />
Establish a web-based system for ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g<br />
<strong>in</strong>formation about RTB and DMO ICT/ebus<strong>in</strong>ess<br />
activities – with an <strong>in</strong>itial research<br />
programme to establish the database<br />
Collection of TIC visits and book<strong>in</strong>g data on a<br />
regular basis, and comparative analysis of<br />
these across <strong>England</strong><br />
Monitor<strong>in</strong>g of small <strong>tourism</strong> bus<strong>in</strong>esses’<br />
adoption of websites and email<br />
An e-bus<strong>in</strong>ess impact study of the <strong>tourism</strong><br />
sector<br />
Monitor<strong>in</strong>g the 'state of the art' e-bus<strong>in</strong>ess<br />
solutions, benchmark<strong>in</strong>g <strong>England</strong> with other<br />
lead<strong>in</strong>g competitor <strong>tourism</strong> dest<strong>in</strong>ations.<br />
<strong>England</strong>Net<br />
ETC<br />
ETC, RTBs,<br />
BTA<br />
<strong>England</strong>Net,<br />
BTA, RDAs,<br />
RTBs,<br />
academia,<br />
private sector<br />
Time<br />
Annual<br />
evaluation<br />
(October)<br />
From January<br />
2003<br />
October 2002<br />
and ongo<strong>in</strong>g<br />
<strong>England</strong>Net RTBs, ETC July-<br />
September<br />
2002<br />
RTBs DMOs, TICs Monthly<br />
ETC BTA, RTBs Ongo<strong>in</strong>g (via<br />
TRIPS/Jigsaw<br />
system)<br />
UK onl<strong>in</strong>e<br />
for bus<strong>in</strong>ess<br />
(DTI)<br />
ETC, RTBs<br />
June- October<br />
2002<br />
ETC <strong>England</strong>Net Annually<br />
33/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Appendix 1: Def<strong>in</strong>ition of terms<br />
For the purposes of this report, ‘e-<strong>tourism</strong>’ is taken to mean ‘e-bus<strong>in</strong>ess for<br />
<strong>tourism</strong>.’<br />
The World Tourism Organisation report, ‘E-Bus<strong>in</strong>ess for Tourism’, expla<strong>in</strong>s the concept of<br />
e-bus<strong>in</strong>ess as follows:<br />
‘….for <strong>tourism</strong> dest<strong>in</strong>ations and bus<strong>in</strong>esses, e-bus<strong>in</strong>ess is about realis<strong>in</strong>g the<br />
opportunities of improved connectivity both externally, through the Internet, and<br />
<strong>in</strong>ternally, through <strong>in</strong>tranets.<br />
The external dimension is about transformation of the value cha<strong>in</strong>, l<strong>in</strong>k<strong>in</strong>g the<br />
<strong>tourism</strong> supplier (or service provider) to the customer, and of the supply cha<strong>in</strong>,<br />
l<strong>in</strong>k<strong>in</strong>g the <strong>tourism</strong> supplier with its own suppliers. This br<strong>in</strong>gs <strong>in</strong> e-market<strong>in</strong>g,<br />
e-commerce and e-procurement:<br />
• e-market<strong>in</strong>g exploits the Internet and other forms of electronic communication<br />
to communicate <strong>in</strong> the most cost-effective ways with target markets and to<br />
enable jo<strong>in</strong>t work<strong>in</strong>g with partner organisations, with whom there is a common<br />
<strong>in</strong>terest<br />
• e-commerce is the sales activity undertaken through electronic distribution<br />
channels<br />
• e-procurement streaml<strong>in</strong>es the purchas<strong>in</strong>g process by allow<strong>in</strong>g a bus<strong>in</strong>ess to tie<br />
its <strong>in</strong>ventory and procurement systems <strong>in</strong>to the despatch and bill<strong>in</strong>g systems of<br />
its suppliers, or vice versa. Not only does this reduce costs through automation,<br />
it also facilitates identification of best value sources of supply.’<br />
The <strong>in</strong>ternal dimension is about transformation of the way <strong>in</strong> which the organisation<br />
functions, enabl<strong>in</strong>g it to work <strong>in</strong> a fully <strong>in</strong>tegrated way, through the use of common<br />
systems. The transformed organisation should:<br />
• Be fully networked for <strong>in</strong>ternal and external communication<br />
• Use a common set of tools, protocols and standards<br />
• Share product and customer data as a common resource<br />
• Have staff operat<strong>in</strong>g as teams, focused on maximis<strong>in</strong>g shared resources.<br />
34/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Appendix 2: E-<strong>tourism</strong> <strong>in</strong> other countries<br />
ETC has drawn upon published sources and commissioned comparative reviews to compare<br />
progress on e-<strong>tourism</strong> <strong>in</strong>itiatives <strong>in</strong> comparable competitor countries.<br />
Scotland and Wales each have their own <strong>tourism</strong> e-bus<strong>in</strong>ess projects. The Scottish Tourist<br />
Board launched its Ossian project <strong>in</strong> 1997. This project was re-branded visitscotland.com <strong>in</strong><br />
2000 and a public-private partnership (PPP) with SchlumbergerSema was launched <strong>in</strong> May<br />
2002. A new product database structure was designed and populated <strong>in</strong> 1998, and is now<br />
be<strong>in</strong>g ma<strong>in</strong>ta<strong>in</strong>ed by the Area Tourist Boards. The development of visitscotland.com was<br />
undertaken <strong>in</strong>-house and the <strong>in</strong>vestment s<strong>in</strong>ce 1997 has been estimated at £5m-£6m.<br />
E-commerce (<strong>in</strong> the form of accommodation transactions) was launched <strong>in</strong> 2000. Some<br />
elements of the orig<strong>in</strong>al development programme rema<strong>in</strong> to be completed, and up to<br />
£11 million of further <strong>in</strong>vestment is planned under the new PPP.<br />
The Wales Tourist Board <strong>in</strong>itiated its project <strong>in</strong> 2001 and has taken a different route,<br />
<strong>in</strong>vit<strong>in</strong>g tenders <strong>in</strong> response to a very detailed specification. The contract for system supply<br />
was awarded to World.Net, which offers fully web-enabled software for use both by<br />
dest<strong>in</strong>ation organisations and by <strong>tourism</strong> bus<strong>in</strong>esses across various sectors. This solution is<br />
now under construction.<br />
In Europe, Austria, F<strong>in</strong>land, Sweden and Denmark all have fully <strong>in</strong>tegrated systems l<strong>in</strong>k<strong>in</strong>g<br />
all parts of the <strong>tourism</strong> support structure. In Switzerland and the Netherlands, partnership<br />
web projects have been implemented at the national level and participation is be<strong>in</strong>g<br />
extended to regional and local <strong>tourism</strong> organisations. The Netherlands Board of Tourism<br />
decided not to proceed with a planned public-private partnership company, but rather to<br />
fully <strong>in</strong>tegrate all aspects of e-bus<strong>in</strong>ess with<strong>in</strong> its own operations, whilst still work<strong>in</strong>g <strong>in</strong><br />
partnership with key commercial players.<br />
In Germany, Belgium, France and Spa<strong>in</strong>, the picture is more fragmented, with the ma<strong>in</strong><br />
focus of activity at the regional/prov<strong>in</strong>cial and local level, as <strong>in</strong> <strong>England</strong>. Many different<br />
systems have been implemented at these levels <strong>in</strong> each country with a lack of consistency<br />
and <strong>in</strong>teroperability. In all cases, except Belgium, there have been national <strong>in</strong>itiatives to<br />
achieve a greater degree of co-ord<strong>in</strong>ation and establish certa<strong>in</strong> basic standards.<br />
The situation <strong>in</strong> <strong>England</strong> is perhaps most analogous to that <strong>in</strong> Germany and France, where<br />
different dest<strong>in</strong>ation systems have been developed across the country. Action has been<br />
taken jo<strong>in</strong>tly by the German regional <strong>tourism</strong> organisations to achieve a consistent<br />
approach, but with limited success to date. France appears to have made more progress<br />
through the Tour<strong>in</strong>france project, which has focused upon develop<strong>in</strong>g <strong>in</strong>teroperability<br />
standards to l<strong>in</strong>k regional DMS services with<strong>in</strong> a national framework. Implementation of this<br />
is, however, still at an early stage.<br />
It seems clear from these examples that a key issue for the success of a national solution <strong>in</strong><br />
<strong>England</strong> will be the ability to achieve <strong>in</strong>teroperability between exist<strong>in</strong>g regional and local<br />
dest<strong>in</strong>ation systems.<br />
35/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Appendix 3: Market analysis<br />
1. The growth of Internet usage worldwide<br />
The dramatic growth <strong>in</strong> the number of Internet users over the past five years and<br />
projections (a n<strong>in</strong>e-fold <strong>in</strong>crease) for the next five years are shown <strong>in</strong> Figure 1.<br />
1,400<br />
1,200<br />
1,000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
1,333<br />
1,174<br />
979<br />
814<br />
665<br />
533<br />
413<br />
284<br />
184<br />
44.5<br />
1995 1998 1999 2000 2001 2002 2003 2004 2005 2006<br />
Figure 1: Number of Internet users worldwide (millions)<br />
[Source: eTForecasts, July 2001]<br />
Future growth <strong>in</strong> Internet user numbers is expected to vary markedly between the different<br />
regions of the world, as shown <strong>in</strong> Figure 2. North America is expected to have a relatively<br />
slow rate of growth. Europe is predicted to grow substantially faster, but the largest growth<br />
overall is forecast for <strong>in</strong> Pacific Asia. The assumption of rapid growth <strong>in</strong> Asia is based on<br />
rapidly <strong>in</strong>creas<strong>in</strong>g use of cellular devices.<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
N. America<br />
W. Europe<br />
E. Europe<br />
Asia<br />
S/C America<br />
M. East/Africa<br />
0<br />
1997 2000 2003 2006<br />
Figure 2: Internet users by regions (millions), 1997-2006<br />
[Source: eTForecasts, July 2001]<br />
36/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
1.1 Internet users’ profile<br />
Internet users tend to be relatively:<br />
• wealthy<br />
• well educated<br />
• <strong>in</strong>terested <strong>in</strong> <strong>in</strong>dependent travel<br />
As the number of Internet users grows, particularly through <strong>in</strong>creases <strong>in</strong> the use of new<br />
access channels (especially <strong>in</strong>teractive TV and mobile devices), the user profile will change,<br />
broaden and become less up-market.<br />
As the market has matured, there has been and will be substantial growth <strong>in</strong> both the<br />
number and the percentage of Internet users who are buy<strong>in</strong>g – see Figure 3.<br />
Figure 3: IDC Internet Commerce Market Model – worldwide (millions)<br />
[Source: IDC, 2001]<br />
1.2 Travel and <strong>tourism</strong>’s market share<br />
Travel and <strong>tourism</strong> have become rapidly the s<strong>in</strong>gle largest category of products sold over<br />
the Internet. In 1998, Datamonitor estimated that their share of Internet commerce<br />
<strong>in</strong>creased from 7% <strong>in</strong> 1997 to 11% <strong>in</strong> 1998 and they projected an <strong>in</strong>crease then to 35% by<br />
2002. Other sources have suggested that this forecast may have been achieved already.<br />
Jupiter has forecast that, as a result of these trends, US onl<strong>in</strong>e travel <strong>in</strong>dustry sales will<br />
<strong>in</strong>crease from $24 billion <strong>in</strong> 2001 to $64 billion <strong>in</strong> 2007, of which nearly half will come<br />
from the corporate travel market. PhoCusWright’s projections for Europe are that onl<strong>in</strong>e<br />
travel and <strong>tourism</strong> sales will <strong>in</strong>crease from $6 billion <strong>in</strong> 2001 to $10.91 billion by 2002.<br />
1.3 Travel products purchased<br />
Travel Industry Association of America (TIA) research <strong>in</strong> 2001 has shown that a large<br />
majority of Internet us<strong>in</strong>g US travellers have bought air tickets and made hotel reservations<br />
onl<strong>in</strong>e (see Figure 4). Because of the size and frequency of air ticket transactions, they have<br />
taken the largest share of the market, but that share is dim<strong>in</strong>ish<strong>in</strong>g, from 80% <strong>in</strong> 1998 to a<br />
forecast 59% <strong>in</strong> 2005 (Jupiter).<br />
37/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Made a hotel reservation 78%<br />
Rented a car 59%<br />
Booked enterta<strong>in</strong>ment tickets 33%<br />
Booked tickets for amusement park 18%<br />
Booked a travel package 17%<br />
Booked a cruise 8%<br />
Figure 4: US consumer onl<strong>in</strong>e travel book<strong>in</strong>g by sector<br />
[Source: The Travel Industry Association of America (http://www.tia.org),<br />
Results from a Travel Media Usage Survey of 1,300 US adults, conducted <strong>in</strong> July 2001]<br />
1.4 The impact of Internet use on traditional channels<br />
A key question for DMOs and <strong>tourism</strong> bus<strong>in</strong>esses is the way <strong>in</strong> which the Internet is<br />
affect<strong>in</strong>g the use of traditional channels of market<strong>in</strong>g. A number of recent surveys cast light<br />
on this:<br />
• A travel media usage survey for TIA <strong>in</strong> July 2001 (Figure 5) showed that, <strong>in</strong> the US, the<br />
Internet had already become the number one source of <strong>in</strong>formation consulted when<br />
choos<strong>in</strong>g or plann<strong>in</strong>g a vacation. The Internet was also considered to be the most useful<br />
media for travel plann<strong>in</strong>g (at 24%).<br />
Internet 40%<br />
Motor Club Magaz<strong>in</strong>e 26%<br />
Newspaper Travel Section 25%<br />
Television Travel Shows 20%<br />
Travel Guidebooks 17%<br />
General Interest Magaz<strong>in</strong>es 17%<br />
Figure 5: Media most used <strong>in</strong> the US <strong>in</strong> the past year to plan vacations<br />
[Source: The Travel Industry Association of America (http://www.tia.org),<br />
Results from a Travel Media Usage Survey of 1,300 US adults, conducted <strong>in</strong> July 2001]<br />
• TIA research <strong>in</strong> 2001 (Figure 6) showed that about 70% of Internet-us<strong>in</strong>g travellers<br />
were us<strong>in</strong>g travel agents and state <strong>tourism</strong> offices less often. A similar proportion was<br />
call<strong>in</strong>g airl<strong>in</strong>es less often, whilst nearly 60% were us<strong>in</strong>g other travel call centres less.<br />
In 2000, US on-l<strong>in</strong>e travellers reported that s<strong>in</strong>ce they started<br />
plann<strong>in</strong>g their trips on-l<strong>in</strong>e, they were …<br />
Us<strong>in</strong>g travel agents less often 71%<br />
Call<strong>in</strong>g or visit<strong>in</strong>g state <strong>tourism</strong> offices less often 68%<br />
Plac<strong>in</strong>g fewer calls directly to airl<strong>in</strong>es 68%<br />
Plac<strong>in</strong>g fewer calls directly to rental companies 58%<br />
Plac<strong>in</strong>g fewer calls directly to lodg<strong>in</strong>g companies 57%<br />
Order<strong>in</strong>g travel brochures by phone less often 57%<br />
Figure 6: Consequences of <strong>in</strong>creased use of Internet for traditional channels<br />
[Source: The Travel Industry Association of America (http://www.tia.org), Results from a Travel Media Usage<br />
Survey of 1,300 US adults, conducted <strong>in</strong> July 2001]<br />
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Thus, over a period of only five years, the Internet has become a primary source of travel<br />
<strong>in</strong>formation for the more mature markets of Internet users, which are also major <strong>tourism</strong><br />
generat<strong>in</strong>g countries. At present, the proportion of travel booked through the Internet is<br />
relatively small (between 6 and 15% <strong>in</strong> the US, accord<strong>in</strong>g to sector, and less elsewhere), but<br />
will <strong>in</strong>crease substantially, as the number of Internet users grows and the propensity to<br />
purchase <strong>in</strong>creases. It seems reasonable to anticipate that transactions across the Internet<br />
may account for 20-25% of all <strong>tourism</strong> sales <strong>in</strong> the ma<strong>in</strong> markets, over the next four or five<br />
years.<br />
2. UK onl<strong>in</strong>e market<br />
2.1 The growth of Internet usage<br />
The growth <strong>in</strong> the number of households onl<strong>in</strong>e over the past four years are shown <strong>in</strong><br />
Figure 7. Accord<strong>in</strong>g to National Statistics, over the period July to September 2001 an<br />
estimated 9.7 million households were onl<strong>in</strong>e <strong>in</strong> the UK, represent<strong>in</strong>g approximately 39%<br />
of the total number of households <strong>in</strong> the UK.<br />
The proportion of homes with Internet access for <strong>in</strong>dividual regions is detailed <strong>in</strong> Figure 8.<br />
In the UK as a whole, from October 2000 to September 2001, 37% of homes were onl<strong>in</strong>e<br />
while <strong>in</strong> the South East and London Region up to 45% of homes were onl<strong>in</strong>e. Home<br />
Internet penetration is greater <strong>in</strong> <strong>England</strong> than <strong>in</strong> other part of the United K<strong>in</strong>gdom.<br />
Figure 7: Number of Households onl<strong>in</strong>e <strong>in</strong> the UK (millions)<br />
[Source: National Statistics ‘Internet Access – Households and Individuals’ (December 2001) <strong>in</strong>clud<strong>in</strong>g figures for<br />
the periods between July and September for the years 1998 to 2001 from the Family Expenditure Survey and<br />
the Expenditure and Food Survey]<br />
39/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Figure 8: Households with home Internet access by Government Office<br />
Region and UK: October 2000 to September 2001<br />
[Source: National Statistics ‘Internet Access – Households and Individuals’ (December 2001), <strong>in</strong>clud<strong>in</strong>g<br />
figures from the Family Expenditure Survey and the Expenditure and Food Survey]<br />
2.2 Travel and <strong>tourism</strong>’s market share<br />
Travel (flights and holiday accommodation) is the most popular onl<strong>in</strong>e purchase <strong>in</strong> the UK<br />
(31%), followed by books or magaz<strong>in</strong>es (37%), tickets for events (23%) and music or CDs<br />
(19%), accord<strong>in</strong>g to respondents to the National Statistics Omnibus Survey of onl<strong>in</strong>e<br />
purchas<strong>in</strong>g <strong>in</strong> the three months to October 2001). The onl<strong>in</strong>e UK leisure travel market was<br />
worth £592 million <strong>in</strong> 2000 and Forrester Research predicts that it will reach £3.7bn by<br />
2005. By that time, onl<strong>in</strong>e leisure travel sale should account for 14% of the total UK leisure<br />
travel sales.<br />
Jupiter MMXI estimates that:<br />
• UK was the biggest onl<strong>in</strong>e travel market <strong>in</strong> Europe <strong>in</strong> January 2002, with almost six<br />
million people visit<strong>in</strong>g travel sites.<br />
• In June 2001, travel sites were most popular with people earn<strong>in</strong>g over £45,000 per<br />
annum - but they are popular with people <strong>in</strong> all <strong>in</strong>come brackets.<br />
2.3 Travel products purchased<br />
A MORI research conducted <strong>in</strong> September 2000 among UK holidaymakers for ABTA reveals<br />
that:<br />
• Only 3% of UK holidaymakers booked their last package holiday onl<strong>in</strong>e<br />
• 17% had used the Internet to book some travel services onl<strong>in</strong>e at some time such as<br />
flights, car hire and ferry cross<strong>in</strong>gs<br />
• 39% have already used the Internet as a source of travel <strong>in</strong>formation<br />
• 56% have access to the Internet at home, at work or <strong>in</strong> another place.<br />
40/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
It also <strong>in</strong>dicates the reasons cited by holidaymakers with Internet access who did not book<br />
over the Internet for their decision:<br />
• Preference for face to face advice (18%)<br />
• Lack of Internet access at the time (16%)<br />
• Worries about security (14%)<br />
• Lack of convenience (10%)<br />
• Access to better barga<strong>in</strong>s elsewhere (10%)<br />
Accord<strong>in</strong>g to NetValue (www.netvalue.com), Lastm<strong>in</strong>ute.com was the most popular travel<br />
and <strong>tourism</strong> site <strong>in</strong> February 2002 with 679,000 unique visitors, up from 628,000 <strong>in</strong><br />
September 2001.<br />
Jupiter Communications <strong>in</strong>dicates that UK male and female Internet users have different<br />
preferences <strong>in</strong> term of travel sites: women prefer sites offer<strong>in</strong>g flights only such as<br />
Cheapflights.com, EasyJet.com and Ryanair.com while men do not have a preference<br />
between different types of travel sites.<br />
2.4 The impact of Internet use on traditional channels<br />
A recent survey <strong>in</strong> the UK by MORI shows the way <strong>in</strong> which the Internet is affect<strong>in</strong>g the use<br />
of traditional channels of market<strong>in</strong>g with<strong>in</strong> the UK market. In March 2001, the Internet and<br />
brochures were used <strong>in</strong> similar proportions, as sources of <strong>in</strong>formation for book<strong>in</strong>g holidays<br />
or other forms of travel, by Internet us<strong>in</strong>g travellers (Figure 9). In a similar survey <strong>in</strong> May<br />
2000, when <strong>in</strong>terviewees were asked which source provided the most complete<br />
<strong>in</strong>formation, the Internet was rated much more highly than brochures or any other source –<br />
see Figure 10.<br />
Brochures 51%<br />
Internet 50%<br />
Travel Agent 47%<br />
Friends/Relatives/Colleagues 29%<br />
Teletext 24%<br />
Guide Books 16%<br />
National Press 16%<br />
Magaz<strong>in</strong>es 12%<br />
TV Travel Programmes 11%<br />
Figure 9: Use of different sources of <strong>in</strong>formation for book<strong>in</strong>g<br />
decisions by UK Internet users<br />
[Source: Results from theE-Travel Tracker Survey from www.scotexchange.net,<br />
March 2001. Base: all who use the Internet (605) March 2001]<br />
41/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Internet 31%<br />
Brochures 22%<br />
Travel Agent 16%<br />
Guide Books 12%<br />
Friends/Relatives/Colleagues 11%<br />
Teletext 2%<br />
TV Travel Programmes 2%<br />
National Press *<br />
Magaz<strong>in</strong>es *<br />
Figure 10: Most complete source for research<strong>in</strong>g and plann<strong>in</strong>g<br />
travel by UK consumers<br />
[Source: Results from the E-Travel Tracker Survey from www.scotexchange.net, May 2000. Base: all who have<br />
used any source of travel <strong>in</strong>formation May 2000 (1,112)]<br />
2.5 Profiles of UK Internet Users<br />
Accord<strong>in</strong>g to the ‘Internet Access – Household and Individuals’ Report by National Statistics<br />
published <strong>in</strong> December 2001, Internet uptake is cont<strong>in</strong>u<strong>in</strong>g to grow across all consumer<br />
groups. Internet penetration rema<strong>in</strong>s highest amongst:<br />
• Younger and middle aged groups<br />
• Men<br />
• Higher <strong>in</strong>come groups (households with<strong>in</strong> the highest <strong>in</strong>come decile group were almost<br />
eight times as likely to have Internet as those on the lower <strong>in</strong>come decile group)<br />
Figure 11: Percentage of male and female and of each age group onl<strong>in</strong>e<br />
<strong>in</strong> October 2001<br />
[Source: National Statistics ‘Internet Access – Households and Individuals’ (December 2001), <strong>in</strong>clud<strong>in</strong>g figures<br />
from the National Statistics Omnibus Survey]<br />
42/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
60%<br />
55%<br />
50%<br />
45%<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
35.0%<br />
54.0%<br />
57.0%<br />
Small (1-2) Medium (3-4) Large (5+)<br />
Figure 13: Percentage of each type of households (by size) onl<strong>in</strong>e<br />
<strong>in</strong> November 2001<br />
[Source: Consumers’ Use of the Internet, Oftel residential survey Q7, http://www.oftel.gov.uk,<br />
Base: UK adults, (November 2001)]<br />
70%<br />
65%<br />
60%<br />
55%<br />
50%<br />
45%<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
67.0%<br />
52.0%<br />
39.0%<br />
23.0%<br />
AB C1 C2 DE<br />
Figure 14: Percentage of each social grades onl<strong>in</strong>e <strong>in</strong> November 2001<br />
[Source: Consumers’ Use of the Internet, Oftel residential survey Q7, http://www.oftel.gov.uk,<br />
Base : UK adults, (November 2001)]<br />
43/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002
Appendix 4: An e-bus<strong>in</strong>ess model for dest<strong>in</strong>ations<br />
For <strong>tourism</strong> organisations, it is helpful to have an appreciation of the full potential of<br />
Internet-enabled dest<strong>in</strong>ation e-bus<strong>in</strong>ess systems. Figure 15 illustrates this by provid<strong>in</strong>g a<br />
diagrammatic representation of such a system. This shows how the system can serve<br />
different categories of users, access<strong>in</strong>g the system through their own dedicated web<br />
gateway or <strong>in</strong>terface, us<strong>in</strong>g one or more channels (PC, handheld device, <strong>in</strong>teractive TV, etc).<br />
Hav<strong>in</strong>g accessed the system, the users may select from a wide variety of services (or<br />
applications) that will draw, <strong>in</strong> turn, on the appropriate database. The user categories,<br />
channels and applications may be varied <strong>in</strong> different dest<strong>in</strong>ations, to meet local<br />
requirements.<br />
This model serves to provide a menu of opportunities for the implementation of systems by<br />
English dest<strong>in</strong>ations. Such systems will best be implemented on a phased, modular basis.<br />
The key issue for <strong>England</strong> is to achieve <strong>in</strong>teroperability between systems and common<br />
product and knowledge datasets shared between users.<br />
© TEAM 2000<br />
Consumers<br />
at home<br />
Internet<br />
Community<br />
TV<br />
Handheld<br />
Tourism<br />
Bus<strong>in</strong>esses<br />
/Suppliers<br />
Conference<br />
Buyers<br />
Handheld<br />
PC<br />
PC TV TV<br />
Visitors –<br />
Handheld Mobile<br />
PC<br />
Kiosk<br />
Handheld TV<br />
Pr<strong>in</strong>t<br />
PC/TV (Hotel)<br />
Info mgmt<br />
Web<br />
search<br />
Handheld<br />
PC<br />
Publish<strong>in</strong>g<br />
PC<br />
Handheld<br />
Handheld<br />
PC<br />
Reservations<br />
Data<br />
edit<strong>in</strong>g<br />
MIS/<br />
evaluation<br />
Private<br />
Sector<br />
Partners<br />
PC<br />
Travel Trade<br />
Product<br />
Data<br />
Impact<br />
Analysis<br />
Database<br />
Servers<br />
Knowledge<br />
PC<br />
Public<br />
Partners<br />
CRM/<br />
Contact<br />
mgmt<br />
Travel<br />
Media<br />
Customer<br />
Data<br />
Handheld<br />
PC<br />
Image<br />
library<br />
Market<br />
research/<br />
analysis<br />
‘Push’<br />
market<strong>in</strong>g<br />
Events Orgs.<br />
PC<br />
PC<br />
PC<br />
Tourism<br />
Organisns.<br />
Figure 15: Dest<strong>in</strong>ation e-bus<strong>in</strong>ess system model<br />
[based on a version prepared by TEAM for Western Cape, South Africa,<br />
reproduced <strong>in</strong> ETC’s Insights, September 2001]<br />
Call<br />
Centres<br />
Tourism<br />
Information<br />
Centres<br />
© TEAM 2000<br />
44/44 A <strong>strategy</strong> for modernis<strong>in</strong>g English <strong>tourism</strong> through e-bus<strong>in</strong>ess – July 2002