QCF Syllabus

IT in Hospitality and Tourism Operations

Unit Title IT in Hospitality and Tourism Operations

Unit Reference Number M/601/7535
Guided Learning Hours 160
Level 5
Number of Credits 18

Unit purpose and aim(s):

This unit aims to give learners a sound understanding of:
 the role of ICT in business and society
 uses and impact of ICT in different sectors of the TTH industry – accommodation, restaurant, travel, transport,
attractions, marketing, distribution chains
 the impact of ICT on consumer behaviour, including social networking
 ICT issues in developing countries
 potential future applications of ICT in tourism

Learning Outcome 1

The learner will: Understand the role of ICT and its uses in the travel, tourism and hospitality industry.

Assessment Criteria Indicative Content

The learner can:
1.1 Demonstrate 1.1.1 Information and Communications Technology (ICT) is the catch-all phrase used to describe a
understanding of the range of technologies for gathering, storing, retrieving, processing, analysing and transmitting
meaning of ICT in a information.
business context.
1.2 Explain the evolution 1.2.1 Advances in ICT have progressively reduced the costs of managing information, enabling
of ICT in business and individuals and organisations to undertake information-related tasks much more efficiently,
wider society over the and to introduce innovations in products, processes and organisational structures. ICT is the
last two decades. fusion of computers and telecommunications.
1.3 Understand the 1.3.1 Computers enable people to work creatively. But they are limited by what they can access.
general applications of Adding a communications channel, such as the internet or other information services,
ICT in society. significantly extends the capability of the computer. It allows it to be not only an inexpensive
communications device. It can also become a means of obtaining education, information, and
working creatively with others irrespective of geographical barriers.
1.4 Identify the features of 1.4.1 ICT in TTH must be seen in the wider context of communications technology in society
TTH and how these generally, particularly as a vehicle for new forms of communication (mobile telephones,
relate to ICT use. internet, social networking) and for purchasing in the developed world. Contrasting contexts of
ICT in the developed and developing world is an important underlying theme for this subject
and students should understand that context is important in understanding all aspects of this
area.
ICT is used across a wide range of functions and contexts in travel, tourism and hospitality.
These uses include:
 Communications with customers, suppliers and others;
 Finance;
 Management information;
  Security;
 Scheduling;
 Reservations and revenue management;
 Marketing and sales;
 Energy and waste management;
 Training;
 Entertainment;
 Office functions;
 Public relations, and
 Links to other service providers in travel, tourism and hospitality and beyond, through
cross-sales, strategic alliances and other forms of cooperation, facilitated by web and other
ICT links.

Learning Outcome 2

The learner will: Understand the uses and impact of ICT in all TTH related operations, such as the accommodation, restaurant,
travel, transport and attractions sectors.

Assessment Criteria Indicative Content

The learner can:
2.1 Identify uses of ICT in 2.1.1 ICT uses in the accommodation sector are varied, and the extent to which ICT is used and the
tourism business form of its application are linked to the type of accommodation provider (luxury hotel, budget
operations, hotel, bed and breakfast, backpacker hostel), the size of the operation, its ownership and its
management location.
information, financial Typically, uses of ICT within accommodation are concentrated in the rooms division or front
management, guest office area. Here, functionality relates to:
relations, energy and  Reservations;
 Check-in/check-out;
security.
 Guest histories;
 Guest billing and related applications, and
 Room status information.
Most larger accommodation providers have integrated ICT systems which permit links to all
other areas of activity in the property, particularly in terms of availability and billing.
ICT is also widely used by accommodation providers in support of their marketing and advance
reservations. This may be through use of a website, either property-specific or linked into a
central corporate website and reservations system. This is accessible by travel agents and by
consumers, frequently using different portals and pricing structures. Increasingly, websites are
the ‘front door’ to hotels in terms of information provision, including virtual reality
representation of facilities and environment. Direct enquiry and booking facilities are widely
available on the web.
Websites are not exclusive to larger or chain accommodation providers. They are now readily
constructed at low cost and are used by even the smallest bed and breakfast or guest house in
remote areas, permitting direct access to consumers in a manner previously unheard of.
Accommodation providers also use ICT to enhance the guest experience through provision of:
 Ambient heat and air conditioning control in bedrooms;
 Security systems in bedrooms and public areas;
 Entertainment systems in bedrooms, and
 Business and office systems in bedrooms such as Wi-Fi internet access.
Restaurants are relative newcomers to effective use of ICT and many smaller establishments
still make limited or no use of such systems. Some of the applications referred to here are also
in use in the food and beverage areas of hotels as well as other accommodation providers. In
restaurants, ICT functions in three main areas, as shown below with their applications:
Catering
 Menu management.
 Recipe costing and development.
 Nutritional analysis.
 Hazard analysis critical control points (HACCP) monitoring.
  Stock control.
 Purchasing.
 Beverage control and security.
 Electronic point-of-sales (EPOS).
Finance, management and marketing
 Management information.
 Guest billing.
 Marketing including the use of websites and reservations systems.
Customer service
 Guest histories.
 EPOS for rapid and accurate information on ordering.
2.2 Recognise limitations 2.2.1 Limitations to the use of ICT in TTH businesses include poor availability, lack of coverage of all
to the use of ICT in areas, malfunctions, security, limitations in consumer knowledge or information processing
TTH businesses. abilities etc.
2.3 Assess the impact of 2.3.1 Virtually all sub-sectors within travel and transportation make use of ICT at one level or
ICT on business another. Some areas have been relatively slow to adopt ICT to its full, notably local transport
practices in the TTH companies (bus, taxi etc.) but its use has revolutionised the operations of major travel and
sector. transport providers and has enabled extensive links to be formed between different providers
in travel and transport and also with accommodation providers etc. Key areas of ICT use in
transport, notably airlines, include:
 Reservations and yield/revenue management – in this area, airlines are undoubtedly
market leaders in providing an accessible interface which permits consumers and the trade
to access information on schedules and fares in real time on a 24/7 basis and make real-
time bookings;
 Sales and marketing to agents and tour operators through Global Distribution Systems
(GDS);
 Management of bookings once confirmed in terms of seat selection, reservation changes,
payment for additional items, special requirements;
 Automated check-in online and at airport kiosks and printing of boarding passes;
 Baggage tagging and tracking;
 Aircraft scheduling and crew rostering;
 Aircraft tracking – departures, arrivals, delays;
 Flight planning and operationalisation;
 Technical performance monitoring;
 Crew training;
 Catering;
 Frequent flyer programmes, and
 Management and financial information.
Key uses of ICT in the travel sector include:
 Packaging of vacations and other travel;
 Purchasing;
 Use of GDS in the packaging process, and
 Marketing and sales online.
Generally ICT use in the attractions and heritage sector is not obtrusive but does play an
important role nonetheless.
General management and information/ reservations systems are in use and have much in
common with those used by other sectors of travel, tourism and hospitality. The context of
these areas is such that particular use is made of communications technology during special
events, for example when organisers cater for mega crowds.
Undoubtedly more innovative use of ICT is to be found in contemporary museums and
attractions through use of:
 Animation and virtual reality to enhance and bring to life exhibits and special exhibitions;
 Guest guide and information systems for city tours, attractions, etc., which can be
customised to the specific interests, language and demographics of each guest, and
 Historical archives and searchable sources in genealogy.
The list of possible uses here is extensive and is an area worth researching in the context of
local providers and events.
Learning Outcome 3

The learner will: Understand the varied uses and impacts of ICT for individual business, destination and national tourism
marketing.

Assessment Criteria Indicative Content

The learner can:
3.1 Describe the uses of 3.1.1 Destination marketing and management at local, regional, national and trans-national levels
ICT in information make increasing use of ICT in order to provide global access to the travel trade to provide
provision about individual consumers with information and reservations relating to that destination. The prime
businesses, function is the provision of interactive portals which permit individual providers within a
destinations and destination to be show-cased in a form that might not otherwise be possible. Internet sites can
countries. also act as a central reservations system, allowing group or individual bookings.

3.2 Describe the uses of 3.2.1 Internet sites and their reservations engines have largely superseded traditional brochure
ICT in promotion and marketing for destinations and allow far greater spread and wider access to markets which
marketing. would, historically, have been beyond the immediate reach of destination marketing. ICT also
supports market and consumer satisfaction research by destinations in the form of entry and
exit as well as expenditure surveys.
3.3 Describe the uses of 3.3.1 It is important that students understand the changing nature of tour packaging which ICT has
ICT in virtual and permitted. Traditional packaging was fixed or static in that the customer bought what was
dynamic packaging. available – 14 nights in a specified hotel in a destination with flights specified by the tour
operator. Dynamic packaging, either by the tour operator or by the customer, allows total
choice and flexibility and is made possible through the power of information access and
reservations tools which are available online.
3.4 Describe the uses of 3.4.1 The other major consideration in marketing is the access to global markets which the internet
ICT for destination provides for small and medium-sized enterprises (SMEs) which, previously, were dependent on
representation. intermediaries, usually destination marketing organisations, such as tourist boards, for their
marketing. Using ICT, they can access consumers directly and instantly, creating major new
market opportunities for them.

Learning Outcome 4

The learner will: Understand the impact of ICT on the travel, tourism and hospitality distribution chain in relation to consumers,
intermediaries and other service providers.

Assessment Criteria Indicative Content

The learner can:
4.1 Explain the nature of 4.1.1 Traditional distribution chains in travel, tourism and hospitality were:
tourism distribution.  Slow;
 Paper-based;
 Expensive;
 Dependent on intermediaries;
 Limited in coverage, and
 Not always bespoke to specific nationalities and cultures.
4.2 Describe the role of ICT in 4.2.1 ICT has changed the face of travel, tourism and hospitality distribution and has had a major
distribution in relation to impact on key stakeholders, notably intermediaries such as travel agents.
accommodation,
transport, tour packages,
heritage and attractions.
4.3 Describe how customers 4.3.1 ICT access via the internet has brought information and reservations possibilities to
use ICT – control, access, consumers worldwide on a 24/7 basis. Consumers can purchase most elements of their
booking and packaging. travel and tour requirements online, without the need to utilise intermediaries for either
information or the actual reservation. Direct purchasing via the internet is considerably
cheaper for service providers such as hotels and airlines, and it eliminates both labour
 costs and commission payments. In theory, some of these savings can be passed on to the
consumer who is informed by some airlines, for example, that web fares are lower than
those obtainable elsewhere. ICT gives consumers of travel, tourism and hospitality:
 Direct access to comparative information on travel, accommodation options;
 Information on products and services on offer;
 Real time price comparisons;
 24/7 booking access from home or office, and
 What are claimed to be the lowest fares or rates available.
4.4 Outline the limitations to 4.4.1 ICT, however, is not without its problems with respect to the process of distribution.
ICT-induced changes in Making use of ICT access to travel, tourism and hospitality products and services requires:
TTH distribution.  Access to internet systems of broadband quality;
 Confidence to use the internet;
 Reliable power supply;
 Use of a credit card form payment;
 Confidence in online payment security, and
 Lifestyle flexibility in order to avail oneself of the lowest fares at the times when room
rates and flights are at their cheapest.
Such access is by no means universal in developed countries, and is confined to a small
minority in many developing countries.
The internet has led to sustained changes in the tourism industry. The dynamic
development of e-tourism is likely to continue. In the past 30 years, the tourism industry
has been influenced by three major waves of information and communication technologies
(ICT): the Computer Reservation System (CRS) in the 1970s, the Global Distribution System
(GDS) in the 1980s and the internet from the mid 1990s onwards. This development has
considerable implications for all intermediaries in this industry in that disintermediation
and re-intermediation occur in parallel. In economics, disintermediation is the removal of
intermediaries in a supply chain: ‘cutting out the middleman’. Instead of going through
traditional distribution channels, which had some type of intermediate (such as a
distributor, wholesaler, broker, or agent) companies may now deal with every customer
directly, for example via the internet. One important factor is a drop in the cost of servicing
customers directly. Re-intermediation allows businesses to provide value as a middleman
in order to avoid disintermediation and, in the context of this discussion, involves
intermediaries redefining their roles in the travel, tourism and hospitality marketplace.
ICT enables service providers in tourism to interact directly with consumers, which
puts enormous pressure on traditional intermediaries such as travel agencies and tour
operators. The extent to which intermediaries are bypassed differs considerably
between sub-sectors. While, for example, the accommodation sector is only partially
affected by disintermediation, specific branches of the transport sector, especially the
aviation industry, tend to be strongly affected by disintermediation. The impact has
been particularly felt in the travel sector where retail agents, operating on the ‘High
Street’ have seen a considerable decline in core business and have had to redefine
their role and the services they offer in order to survive.
Yet ICT solutions may also provide new opportunities for traditional players and newly
emerging online intermediaries. Many new market entrants who operate exclusively
online and do so successfully provide intermediary services, while some ‘bricks-and-
mortar’ intermediaries have managed to secure their position in the market by
offering value-added online services.
A relatively new trend that has attracted much attention is ‘dynamic packaging’.
Traditional packages provided by tour operators and agencies are bundling separate
products quite well, but offer limited flexibility for customers. The trend towards
individualisation creates demand for more flexible, dynamic packages. Although
technological and organisational barriers for truly dynamic packaging are
considerable, a number of players are working energetically on the development of
feasible solutions for dynamic packaging.
Learning Outcome 5

The learner will: Understand the impact of ICT on consumer behaviour and the service encounter.

Assessment Criteria Indicative Content

The learner can:
5.1 Describe the role of ICT in 5.1 This learning outcome looks at the wider consumer behaviour implications of changes to the
providing enhanced distribution chain in travel, tourism and hospitality.
consumer choice and Consumer behaviour is the study of consumers that helps firms and organisations improve
information access. their marketing strategies by understanding issues such as:
 The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
 The psychology of how the consumer is influenced by his or her environment (e.g.
culture, family, signs, media);
 The behaviour of consumers while purchasing or making other marketing decisions;
 Limitations in consumer knowledge or information processing abilities and how these
influence decisions and marketing outcomes;
 How consumer motivation and decision strategies differ between products that vary in
the level of importance or interest that they entail for the consumer, and
 How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.
There is little doubt that developments in ICT in travel, tourism and hospitality in
developed countries have had a major impact on how consumers behave and the way in
which they make decisions. Some of these changes have been in train independently of ICT
developments, for example the tendency to shorten the length of vacations but ICT has
undoubtedly accelerated these processes.
5.2 Explain the value to 5.2.1 Of specific interest here in relation to consumer behaviour are a number of consequences
consumers in accessing of the ICT revolution in travel, tourism and hospitality:
real-time information.  Lower real costs of travel, tourism and hospitality products, brought about in part by
lower distribution costs and increased competition;
 A willingness to follow price rather than be influenced by destination attributes in
vacation choice. Low cost seats in themselves enable newer low cost airlines to
maintain a high load factor to destinations which might otherwise have not been
visited;
 Direct consumer access to comprehensive information on products and services from
large, small and micro providers worldwide, and
 24/7 consumer access to travel information and the ability to purchase at any time of
the day or night.
5.3 Explain the challenges to 5.3.1 A consequent ‘casualisation’ of the vacation and wider travel process so that decisions can
service as a result of and are made in a much more informal basis than might have been the case in the past.
depersonalisation and Growing tendency to set travel purchase decisions alongside those involving other mid-
difficulties in handling price consumer goods, electronic and entertainment equipment, for example.
unorthodox requirements.
Learning Outcome 6

The learner will: Understand the use of social networking and other informal ICT systems in tourism marketing and information
sharing.

Assessment Criteria Indicative Content

The learner can:
6.1 Explain the meaning and 6.1.1 The focus of much discussion about ICT in travel, tourism and hospitality is on formal
uses of informal ICT systems and the way in which consumers behave within what might be called the ‘formal’
systems and social TTH environment. It is important to recognise the growing importance of informal
networking. information sources about travel, tourism and hospitality that are available as a result of
the ICT, specifically, the internet revolution.
6.2 Assess the role of informal 6.2.1 Students should be familiar with the use and role of informal information providers and
and social networking sources of ideas about destinations and providers such as:
sites relating to TTH.  Facebook;
 Twitter, and
 Trip Advisor.
They should also be aware of the power of such sites and the speed at which information
can be shared about a good/bad experience. The ‘informal’ TTH environment includes:
 Blog sites by travellers and others, recounting their experiences in a general sense.
 Blog sites dedicated to experiences with one specific provider (airline/hotel etc.).
 Public access video sites which allow consumers to post film of their experiences as
consumers of a particular theme park, hotel or cruise ship.
 Chat rooms which permit real time exchange of experiences.
6.3 Explain the value and 6.3.1 These sources of information are wholly unregulated and may or may not represent
limitations of informal accurate information about travel, tourism and hospitality providers. In a sense this does
information. not matter because of the power and impact that the informal systems can have, whether
justified or not. They are where, increasingly, people go for information prior to using a
facility or travelling with an airline.
Learning Outcome 7

The learner will: Understand the benefits and challenges in the use of ICT in the travel, tourism and hospitality industries of
developing countries.

Assessment Criteria Indicative Content

The learner can:
7.1 Explain geographical, 7.1.1 The tourism industry has been transformed by information and communication
economic, political and technologies (ICT). The internet has dramatically changed the way in which consumers plan
socio-cultural limitations and buy their holidays. It has also affected how tourism providers promote and sell their
to TTH access. products and services.
The market for tourism relies on information. A consumer in Canada wanting to stay in a
remote hotel on a Thai island needs up-to-date information about boat connections,
activities on offer, and even recommendations from other travellers. The internet enables
the providers of all these types of products and services to interact directly with consumers
around the world at a relatively low cost.
Using ICT to exchange information about products and services enables all actors involved
in tourism to be aware of what services are on offer. For example, an entrepreneur can
make sure his/her hotel will be visible to tour operators who are involved in arranging
package holidays.
Developing countries are major tourist destinations. However, a large proportion of the
profits from tourism drain out of the world’s poorer nations and back to large travel firms,
hotel chains, and booking and transportation providers based in developed countries.
The internet offers a chance to change that pattern. Tourism providers in developing
countries can access customers directly. Their websites can offer authentic flavour, unique
insights and specialised local knowledge that a big international provider cannot.
The challenge for developing countries is to reorganise tourism services so that they can
benefit from ICT. Well-designed websites can allow local companies to offer tourists a full
package, including reservations, flights and currency exchange. That way the profits can
stay at home and contribute to job growth and economic development.
Developing countries now attract 35 per cent of international travellers each year and are
starting to develop e-tourism strategies. Today, 24 of the least developed countries (LDCs),
for example, have tourism websites. Unfortunately, these are largely ‘information
windows’. They do not reflect the wealth of local tourism producers and do not allow
booking and payment.
As internet shopping by tourists increases, governments and national and regional tourism
organisations in poorer countries need to focus on spreading internet access and setting up
linked websites that can cover the entire ‘value chain’ behind international travel. A major
challenge will be overcoming domestic bottlenecks in technology, payments,
telecommunications, and computer adoption and use.
7.2 Explain the concept of the 7.2.1 A further concern relates to access by citizens of developing countries to the benefits of
digital divide. the internet for purposes of travel, tourism and hospitality. The vast majority of people in
poorer countries face issues relating to the ‘digital divide’. The term ‘digital divide’ refers to
the gap between those with regular, effective access to digital and information technology,
and those without this access. It encompasses both physical access to technology hardware
and, more broadly, skills and resources which allow for its use. Groups often discussed in
the context of a digital divide include socioeconomic (rich/poor), racial, or geographical
(urban/rural). The term ‘global digital divide’ refers to differences in technology access
between countries.
In developing countries, the global digital divide is a major challenge and is a clear barrier
to active participation in increased travel access.
7.3 Explain issues with respect 7.3.1 Security in ICT information transfer, e.g. identity fraud, payment problems.
to security in ICT
information transfer.
Learning Outcome 8

The learner will: Understand the potential further applications of new and emerging information technologies within the tourism
sector.

Assessment Criteria Indicative Content

The learner can:
8.1 Recognise the constant change 8.1.1 The development and application of ICT through the economy and society is, as yet,
environment within IT in the at an early stage. It is still only possible to take an educated guess as to the medium-
context of TTH. and long-term effects.
8.2 Identify key likely developments 8.2.1 ICT is pervasive and enabling and, by any measure, is advancing rapidly in terms of
in ICT and their potential for power, performance and affordability. These trends are unlikely to change in the
impact in TTH. short-term. ICT drives the advance of other new technologies, whose impacts need
to be assessed separately. Radical new technologies such as biotechnology have the
potential to entirely change the current terms of reference of the links between ICT,
the economy, society and the environment.
 ICT is constantly giving rise to new social phenomena which need to be factored
into the equation. One example is the development of online communities.
 In response to the development of ICT, new regulations are constantly coming
into force. By channelling the development of ICT in a particular direction,
regulations may promote or impede synergies between ICT and regulation which
need to be understood and factored into new research being undertaken.
8.3 Discuss the potential of low cost 8.3.1 There is likely to be increasing use made of ‘informal’ internet sites with a focus on
ICT for micro and small TTH aspects of travel, tourism and hospitality. This may threaten formal sites but it is
operations. likely that companies will increasingly participate in the informal environment
alongside their mainstream systems.

Assessment:

 Assessment method: written examination (unless otherwise stated).

 Written examinations are of three hours’ duration.
 All learning outcomes will be assessed.

Recommended Reading:

 Please refer to the Tuition Resources section of the Members Area of the ABE website ([Link]) for the
recommended reading for this subject.