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Importance of Information Technology in the Travel Industry

Importance of Information Technology in the Travel Industry

15 June 2020

Information technology is a big word and it is as effective as it sounds. Ever since this technology has evolved, it has opened doors for many other industries. Information technology is the combination of multiple systems like computers, networking, physical devices, infrastructure with the help of which it creates, stores, processes and retrieves data whenever required. The scope of the travel industry is limitless and it can go even higher if supported with proper technology in an appropriate way. Information technology has been the turning point for the travel industry as it has made impossible things possible with its features. Let's jump straight in and check how this technology has impacted the travel industry.

1. Computer systems: Everyone nowadays is aware of the computer. Computer systems are the huge change-maker in the game. When computers were not invented, paperwork had a good value as everything used to be managed on paper. It was as tedious as it sounds now. Maintaining every business detail like customers data, history, transaction details, supplier details and many more on paper was a hectic and time-consuming job with a fear of losing valuable content at any moment but now computer systems have come into the picture and have made this job extremely easy as business details can be easily saved in it and can be retrieved when needed without any fear of data loss.

2. Internet: Due to the presence of the internet travel operators can create amazing websites with wonderful attracting images of locations on it to create the very first impression of it on the customers and to attract them. The use of the internet is not only limited to creating a website but it has many other advantages to travel agents. The Internet has enabled the presence of social media like Twitter, Facebook, LinkedIn, etc. on which travel companies can increase their online presence, as only physical presence is not enough in this competitive era. Online presence on social media helps to reach a mass audience in less time span and helps to create a brand image. Due to the internet, we can see many social groups are formed related to travel where people interact with each other, share travel experiences & tips, promote business and many more which helps spread the positive word of mouth about Travel Company.

3. Virtual Tour & Audio Tours: Virtual tour involves the presence of video or series of HD images on the website which involves the simulation of existing location with sound and another multimedia effect to give visitors a real experience of the location and let them explore it, this way travelers can experience & explore their favorite location sitting at home with a single click which helps them form a decision with this effective & advanced technology. The audio tour is the technology that involves the recorded message (commentary) through a handy device that provides information about the particular location, especially historical places to the tourists which reduces the need for a tour guide as an audio tour acts as a real tour guide to the travelers.

4. Global Distribution System: This is a computerized network, that can also be called a communication chain between travel agencies and multiple suppliers like hoteliers, the airline industry, car rental companies, etc. It works on a real-time inventory basis. GDS does not hold real-time inventory, it is held on the vendor's reservation system and GDS shares a real-time data link to the vendor's database, and this GDS is operated by the travel agency. So whenever a travel agency wants to check the availability of any service like seat availability of hotel rooms, flight seats, etc. it relies on GDS, which then links to a particular service industry and provides real-time information to the travel agency. It makes the entire process very easy for the travel company to provide quick service to the end customers.

5. Dynamic Packaging: Dynamic packaging allows travelers to build their customized packages instead of purchasing a predefined travel package. In dynamic packaging, price rates differ as per the seat availability and seasonal demand for the particular location.

6. Mobile Technology: This technology has made the traveler’s life very easy as now due to a massive change in the technology, travel mobile applications have been developed which provides travelers the flexibility to book their tours anywhere, anytime on their smartphones. Availability of the travel apps on the mobile device minimizes the location barrier, time barrier for travelers and provides them easy & effortless accessibility to explore & book tour packages in just a few clicks.

7. Chatbot: We as human beings or as a customer never like to wait for anything. We are offered multiple choices due to fierce competition, if we are not satisfied with one service, then it is not a full stop for us, as someone else's door is always open. So now what chatbot does? A chatbot is a technology that behaves like a human being and gives a quick reply to customers’ queries exactly like a human without human intervention. This is a trending technology that every travel company is implementing as nobody wants to lose their clients due to a long wait. Chat boat reduces that wait time solves client queries and provides instant customer support.

8. Travel Agency Software: This travel technology enables travel companies/ travel agencies/ tour operators/ travel agents/ destination management companies to manage the internal flow of business operations smoothly and efficiently with its automated CRM, accounts & finance, B2B, MIS reports, HR management, business promotion, etc features. This software lifts this heavy load for Travel companies and sets them free to handle and focus on other important business tasks. It automates entire back-office activities of Travel Company, increases efficiency and business productivity, generates large revenue, and delights customers with quick service.

The bottom line: : Information Technology is a huge change-maker in the travel industry but it cannot achieve anything all alone without the support of human talent. Every technology is incomplete if not supported by human talent. So it is up to us how, when, where and to what extent technology should be used.