Virtual Tourism Content Network TANDEM - a ...

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Virtual Tourism Content Network TANDEM - a Prototype for the Austrian Tourism Industry Roman Eggera, Jakob Hörla, Brigitte Jellinekb, and Mario Joossa a

Forschung Urstein - Center for Futures Studies:Salzburg, Austria {roman.egger, jakob.hoerl, mario.jooss}@fh-salzburg.ac.at b

Department of MultiMedia Art Salzburg University of Applied Sciences, Austria {brigitte.jellinek}@fh-salzburg.ac.at

Abstract Tourism is considered to be a highly information-intensive business, and there can be no doubt that information and communications technologies (ICTs) have made an impressive contribution in recent years by influencing and forming the market in an innovative way at both the process and product levels. The use of the Internet, in particular, has made destinations and their service providers aware of numerous possibilities and chances to optimise their performance and competitiveness. Virtual networks can assist small structures in saving time and money and increasing flexibility and quality while boosting receptiveness to innovation. This paper pursues two basic objectives. First, it discusses the significance of participating in a Virtual Tourism Network System for Small and Medium Sized Tourism Enterprises (SMTEs). Second, it introduces a prototype designed for the Austrian tourism industry that is based on these assumptions. Keywords: Virtual Tourism Networks; Business Webs; SMTEs; Collaboration; Business Model.

1 Introduction With respect to both revenue and arrivals, Austria ranks among the top 10 tourist destinations (UNWTO, 2006). As such, tourism plays a crucial role in the Austrian national economy. Added revenue stemming directly from tourism is 6.2% of the GDP - almost double that of the international average. Even the number of persons employed in the tourism industry clearly demonstrates its importance. Around

500,000 persons work in approximately 90,000 businesses linked to this economic sector (Statistik Austria, 2006). This fact alone reveals that tourism in Austria is shaped primarily by small and micro-sized businesses and naturally has a highly heterogeneous structure because of this. In addition to their size, SMTEs are also characterised by their independence, flexibility, seasonality, family ownership and management (Buhalis, 2002), and frequently by their geographical isolation. This often amounts to traditional management practices which are characterised by shortterm perspectives, a lack of willingness to cooperate and an aversion to ICTs. For a number of years, the trend towards quality tourism has been growing strongly in Austria. Succeeding in this increasingly competitive market has become essential. These developments are the result of a variety of trends in the tourist industry. The establishment of low-cost carriers, for example, makes it possible to travel on short notice and on a low budget while at the same time allowing a broader selection of destinations. The opening of the Eastern markets, the trend towards short holiday breaks and the continuously declining proportion of loyal customers have increased competitive pressure. A push for service and quality in an information-intense business such as tourism is dependent upon the quality of information available. A market such as this, which is characterised by smaller structures in particular, requires increased networking of its participants in order to compete with differentiated offerings at the highest international levels. On the demand side, German tourists, comprising around 66 percent of all guests, represent the most important country of origin for Austrian tourism. Domestic guests, with over 30 million overnight stays, come in second, followed by the Dutch. The top 5 countries of origin also have some of the highest Internet usage rates in Europe. As such, it is no surprise that, according to Tourismus Monitor Austria, 25 percent of the tourists visiting Austria exclusively use the Internet for obtaining information for their travel planning (Michl, 2006). According to a study by Overture and comScore, among the German tourists, the strongest Austrian guest group, over 90 percent use the Internet in order to gather information for their upcoming trip. Incidentally, these figures also correspond to the results of the Austrian online guest analysis (Egger et al. 2006). Search engines are among the most widely used sources for conducting research, followed by travel agencies and travel web sites. In addition to destination web sites, guests search primarily for accommodation. Three fourths of the Austrian accommodation and lodging businesses (77 percent) have their own web site and are among the many others involved in the struggle to gain potential visitors on the World Wide Web (Michl, 2006). The motivation for developing a virtual network prototype can be seen through the need to integrate and cross-link tourism enterprises in order to raise sustainable competitiveness for the whole destination.

2 Theoretical Background 2.1 Lack of Information and Need for Networking at the Destination Level Principally, destinations can be seen as a conglomerate of services within a certain geographical area. Whenever a guest uses the Internet, a medium that has now become the primary method of travel planning, the search for suitable accommodation represents an important part of travel preparations. However, the real reason individuals spend their holiday in any given destination is generally not the hotel itself. People travel to experience the landscape, the culture and points of interest, sports offerings and attractions. This is because the real motivation for travel is to satisfy individual needs. If an Internet user seeks travel and hotel information, he or she searches for key words within the context of the destination. Studies clearly show that accommodation and destination information are at the beginning of the search (e.g. Favier, 2006; Mitsche, 2005). The tourist service provider is therefore compelled to acquire in-depth understanding of the destination in order to make use of the appropriate Search Engine Optimisation (SEO). To this effect, Starkov (2005) stresses, “a destinationfocused search engine strategy requires in-depth knowledge of the travel and hospitality industry, extensive destination research, destination target keyword analysis, and destination search behaviour.” Therefore, in more ways than one, it is necessary for detailed destination information to be integrated into hotel web sites. First, the potential guest expects interesting information about the destination (leisure and cultural offerings, sightseeing and sport offerings, etc.) in addition to information purely about the hotel. Secondly, search-engine optimised, destination-relevant content is a deciding factor in obtaining an adequate ranking with the search engines. However, hotel web sites rarely offer this information in the necessary scope and quality. The required data are usually adopted at the time of web site creation from the sites of the individual stakeholders or from a destination web site. As a result, information available on hotel web sites is often incomplete, out of date or poorly presented. As long as data cannot be exchanged mutually and dynamically for lack of a virtual network, all parties involved (attractions, activities, hotel owners, destinations and guests) will continue to suffer from the deficit of information. The result from a lack of information networking is demonstrated in Table 1.

Table 1. Result from a lack of information networking Main stakeholders

Attractions & Activities

Accommodation

Tourist

DMO

Disadvantages due to existing information deficits Marketing takes place solely through the SMTE’s own web site and/or the DMO web site. Guests are unaware of most attractions and activities before commencing their journey. As such, the search process takes place only within the context of the destination. A desperate struggle for attention on the web ensues; multiplier web sites are lacking. Economies of Scale and Economies of Scope are non-existent. Marketing takes place solely through the SMTE’s own web site and/or the DMO web site. Destination-specific content that can be optimised for search engines is missing. Existing information lacks quality and topicality. Economies of Scale and Economies of Scope are nonexistent. The guest wants to be able to find all of the necessary information on a single page. Information on hotel web sites, however, is usually incomplete; topicality can rarely be guaranteed. Destination Management Organisations are often subject to political and geographical boundaries. This, however, is not what the guest, who observes the destination according to topographical, cultural, linguistic, etc. conditions, perceives. Employees in tourist organisations often do not have the most current information on a destination, thereby demonstrating significant deficits during informational discussions and consultations.

2.2 Virtual Tourism Networks In general, tourism services are immaterial and are subject to the uno actu principle. The guest does not purchase the actual service, but the right to receive this service. Furthermore, tourism is unique in that the service the customer perceives is usually comprised of a sum of partial services from various providers. Sheldon (1997) commented appropriately on this: “Information is the lifeblood of tourism.” The need for information, along with a high level of topicality and quality of data, is particularly relevant when large numbers of providers are involved in creating the total service. For this reason, the concept of networking has always been more of a necessity than an innovation in tourism. Through the use of ICT, new networking opportunities surface both at the informational and transactional level. Numerous processes in the tourism value chain

can be performed virtually with the help of Internet, intranet or extranet solutions. The virtual value chain therefore no longer consists of sub processes conducted in a linear fashion. Rather, it represents a freely-configurable matrix with a number of starting points (Morris & Morris, 2002). Among the numerous descriptions and definitions to be found in literature, the following is especially suited to this paper: “A tourism network system is the one that compromises a multiplicity of autonomous, interdependent, enterprises without physical borders of separation from the environment, that rely on the Internet infrastructure to integrate and exchange value” (Ndou & Passiante 2005, p. 440-451). The primary objective of a Virtual Tourism Network should lie in the creation of a sustainable win-win partnership (Hakolahti, 2006), whereby the involved partners can interact dynamically, creatively and proactively. Such networks are characterised by a healthy blend of cooperation and competition in which the provision of current relevant content plays an essential role. However, the desired common use of information can only be efficient and available on a wide basis when all enterprises can participate in the network with the least amount of expenditure and cost. This requires an innovative, yet easy-to-use system. In this context, a trend toward open platforms and standards can be observed (Ndou & Passiante, 2005). As a prerequisite for the implementation of an innovative and successful VTN, a radical change in thinking and acting of organisations is necessary, along with the establishment of new business models (Ndou & Petti, 2004). Increasing integration tendencies ensure that even SMEs can no longer cut themselves off from these developments. The European Commission indicated as early as 2003 that SMTEs must prepare themselves mentally and technologically for participation in virtual networks (European Commission, 2003). Particularly organisations with complex structures, which are often found among destinations, can gain time-related, monetary and qualitative advantages along with increased flexibility through virtual networking (Ndou & Petti, 2004). Consequently, it is not surprising that most of the established Virtual Tourism Networks (VTN) can be found at the destination level. Contemporary literature continuously refers to Destination Management Systems (DMS) in this context. Simply, they offer a collection of digital information on a destination which can be accessed interactively with the objective of presenting, advertising and marketing the destination as a single unit (Buhalis, 2003). As such, a DMS is based on bundling comprehensive information and is therefore characterised by its central nature. A true network, on the other hand, is decentrally structured. It includes nodes which can be considered as information hubs, but it bases its reason for existing on the networking of individual participants. Even though bundling creates economies of scale and scope, the value created through true networking, deploying the full potential of the Internet, is significantly larger.

Therefore, it can be seen that the potential of many VTNs has not been fully exploited to date. One reason for this is that the integration and networking of the parties involved are insufficient. Another reason is that standardisation and compatibility problems often arise (Ndou & Petti, 2004; Buhalis, 2003).

3 TANDEM – Developing a VTN Prototype In order to counteract the aforementioned information deficit and fulfill networking requirements at the destination level, the Centre for Futures Studies of the Forschung Urstein GmbH developed the “TANDEM” prototype. This is a Virtual Tourism Content Network that was promoted within the framework of the TEC Dynapro research project using monies from the “Innovative Maßnahmen des EFRE – Salzburg” programme. The goal of the prototype is not the creation of a new central source of information, but the above mentioned information networking of individual parties in order to eliminate the deficits outlined in Table 1. The central idea is to leverage the participating partners’ existing infrastructure and competence. The TANDEM system serves as a virtual interface between content providers (Attractions & Activities) and content users (accommodation facilities). Using the TANDEM web interface, content providers can make their information available to other partners. Content users, on the other hand, select the information packages that are to be presented on their web site in the future from the available data. The content user creates a type of subscription with destination information organised according to target groups, geographical or seasonal relevancy for his or her site. The hotelier is thus able to provide guests with an electronic recommendation function which previously was only available on-site, at the hotel reception desk. As end users, tourists do not have any direct contact with the system. They only see the information selected by the content user on the web site. Using the TANDEM system, content users can adapt the information to be integrated into their web sites with just a few clicks. In addition to colour, font, etc., they may also select from a variety of presentation forms (list displays, containers, independent pages, etc.) for information packages. The integration of content by means of a container is demonstrated in Figure 1. By clicking on one of the offers, a page opens displaying detailed information.

Fig. 1. Example of the integration of TANDEM information in a web site From a technical perspective, the technology can also be viewed as a Content Syndication System. For these systems there exist a number of established data formats, such as RSS and ATOM (Hammersley, 2003) which have been used in tourism (Michopoulou & Buhalis, 2006). On the other hand, a number of efforts are being made to develop custom data formats for information exchange in tourism, for example Harmonize (Fodor, 2004). Harmonize offers a semantic description of tourist offerings, which is modularly scaled for use as an ordering and booking system. It solves the problem of interoperability and data exchange between different players in tourism. The complexity of the Harmonize data structure is correspondingly high. The problem area addressed by TANDEM neither requires nor justifies this level of complexity. Therefore, a decision has been made to select an internal data structure for the TANDEM prototype system that is as simple as possible, yet sufficient. This simple data structure is shown in Table 2. For future versions of TANDEM, the possibility to import Harmonize data may prove to be beneficial. Table 2. TANDEM data structure for static information Visible for the tourist as an end user Title Short description (teaser) Description (full-text) Price or free of charge Dynamic data (e.g. special offers) An image Imprint (of content provider)

Visible for the content user Address Geographical coordinates (Lat/long) Category URL

Visible only internally Contact person E-mail, Telephone Billing address

The data made available by the provider can have two general characteristics. Either they are static (all data that never or rarely change, such as the service description or the geographical location) or dynamic (such as operating hours, pricing, special offers, maintenance and facility holidays). Static information is given in either the short teaser or longer description form. For dynamic information, freely configurable "dynamic lines" can be created. In order to provide the content user with an additional competitive advantage through the implementation of third-party content, static content can also be individually optimised for search engines for each content user, as long as the provider approves. If the provider makes changes to dynamic content (e.g. changes to operating hours), these changes will be synchronised automatically on the content user’s site. Figure 2 shows the data flow of static and dynamic data from the content-provider to the content-user.

Fig. 2. Schematic representation of TANDEM During the entire development process SMTEs were integrated into the project in the role of "friendly users". Through surveys, workshops and test accounts, data was

gathered on the general conditions and requirements which provided the necessary information for a market-oriented conceptual design. 3.1 Technical Specifications There are several alternative technical solutions available for content syndication. To choose the right solutions we used the following approach: In order to keep interoperability problems at a minimum, the existing infrastructure and the competence of potential participants was ascertained. Since little information could be gained from interviewing the content users, due to a lack of understanding of technical details (XML, PHP, SSI), a probe was developed. This probe consisted of a set of files which the content users uploaded to their web space. These files were constructed in such a way as to test various features of the web space and provide information on them when accessed via the web server. These studies showed that a prototype solution using XML or PHP on the content users webserver would have to be discarded. A decision was made to implement a solution using iframes and a solution using push from the TANDEM server to the content users webserver. Tourists, as end users, are unable to detect any difference between the iframe and push alternatives. The push alternative does present the content user with higher configuration expenditure, but at the same time, it is the only method that allows content to be optimised for search engines. For the iframe alternative the content of the iframe is loaded from the TANDEM server. From the perspective of a search engine the content of the iframe is not part of the content users website, but part of the TANDEM website. The TANDEM prototype was completed at the end of August 2006. Information from 20 content providers was entered within the scope of the workshops carried out in the development phase. This information was subsequently selected by 20 content users via TANDEM and integrated into the respective web site. Consequently, the prototype has aptly demonstrated its functionality. All users of TANDEM showed great interest in the project and were highly cooperative. A detailed user evaluation was not made since TANDEM is still in an early prototype stage. 3.2 Value Creation through TANDEM The following paragraphs provide an overview of how the system’s main stakeholders (as presented in Table 1) can overcome the existing deficits caused by a lack of networking.

Attractions and Activities providers enter their data directly into TANDEM. In doing so, they are not only able to present their services on tourist organisation web sites as in the past, but they also appear automatically on numerous web sites of accommodation facilities which also provide access to the target guest groups. Changes to the hours of operation or prices are entered only once, centrally in the TANDEM system, and are then immediately updated on all other web sites. Content providers therefore profit from a multiplier effect and can also be found indirectly through the search engine results of the hotel web sites. Accommodation: The hotelier selects the leisure offerings for his or her guests from TANDEM and presents them online. All of the necessary information is integrated dynamically and is automatically updated. The one-time expenditure incurred for creation is minimal and future maintenance expenditure is not required at all. Offerings can be exchanged with the click of a button, a feature which is especially valuable for seasonal facilities. The hotelier can convey the message that he or she is not only capable of providing attractive offers for room and board but also that the guest will be able to find an appealing selection of leisure time activities in the immediate area. At the same time, TANDEM makes it possible for search engines to find the integrated text elements. This increases the competitiveness of the hotel and is enhanced by higher levels of transparency for the destination offerings. Potential tourists receive a single, pre-selected and relevant selection of cultural and leisure activities that is in tune with their specific interests. The quality of the information is high due to the freshness of the content. On-site activities can be planned online with minimal effort. In the end, an optimised information process is seen in an increased level of customer satisfaction, which has a sustained effect on buying and repeat buying behaviour. Destination Management Organisations can integrate the TANDEM system information into their web site as well, gaining access to an optimised database in order to offer their on-site guests maximum levels of information and consultation quality. Non-commercial offerings, such as hiking trails or natural monuments which until now were only displayed on destination web sites, are available via TANDEM on the hoteliers’ web sites, blurring the line between currently existing destination borders.

4 Discussion and Conclusion In contrast to previous efforts to connect service providers from a single destination with each other, TANDEM does not attempt to make information available to end users via a central system. It appears to be significantly more effective and efficient to

offer a platform which allows the individual providers to connect with each other in a self-regulating process. The approaches presented in this paper present only a few selected possibilities that a system like TANDEM can offer. Naturally, it is possible to consider expanding information networks at the transaction level. This could allow customers to reserve admission tickets to a museum via the hotel web site, for example. The implementation of dynamic packaging solutions would no longer be restricted to destination web sites as a result. Of course, the system can also be utilised in the opposite direction. Attractions and activities could recommend hotels in their area and offer reservation possibilities or even implement TANDEM as a Content Management System for their own web site. The future challenges for a successful implementation of TANDEM on the market are also multifaceted. For a system such as TANDEM, which is characterised by a strong networking effect, a critical mass of users and/or partners must first be established. In this respect, a business model must be developed which can be presented simply and comprehensibly and keeps the entrance barriers low. The high value of such a system is justified in the superordinate goal of creating a win-win situation for each and every participant. The objective of securing competitive advantages for all those involved, paired with an exceptionally customer-oriented focus, requires a neutral system operator. In this respect, it will be necessary to view and operate a system such as TANDEM as a tourist infrastructure.

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