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460 TRAVEL ANDTOURISMTable 1World Tourism GrowthInternational Tourism International Tourist
Year Arrivals (millions) Receiptsa(billions US$)1950 25.3 2.1
1960 69.3 6.8
1970 165.8 17.9
1980 286.0 105.3
1985 327.2 118.1
1990 457.2 263.4
1995 550.3 406.2
1996 596.5 435.6
1997 618.2 439.6
1998 626.4 442.5
1999 650.4 455.4
2000 698.8 475.8Source: World Tourism Organization (2001).
aInternational transport receipts excluded.to better support and immediately respond to customer
information needs through the provision of interactive
travel brochures, virtual tours, and virtual travel commu-
nities. In addition, the Internet enables tourism-related
enterprises to communicate with their partners more
effectively in order to develop and design offers that meet
the individual needs of potential visitors. The Internet is
customer-oriented in that it empowers the user to easily
access a wealth of information, enabling the traveler to
almost “sample” the destination prior to an actual visit.
Moreover, emerging ecommerce capabilities enable the
traveler to make reservations, purchase tourism-related
products, and share trip experiences with others.
Today, the Internet is one of the most important com-
munication tools for travelers as well as travel and tourism
enterprises. For example, recent studies by the Travel
Industry Association of America (TIA) (2002a) indicate
that almost one-third (31%) of American adults use the
Internet to search for travel information and/or make
reservations (see Table 2); for American travelers, this
figure increases to 45%. Recent studies also show that
the travel and tourism industry responded to the emer-
gence of Internet-based technologies by adopting a num-
ber of new and innovative ways to communicate with
consumers, as well as with other industry partners. As
such, the travel and tourism industry is one of the most
significant users of Internet technology as measured byTable 2Internet Use for Travel Planning: 1997–2002Year % of U.S. Adults % of U.S. Travelers1997 7 8
1998 18 21
1999 25 33
2000 30 40
2001 33 46
2002 31 45Source: TIA (2002a).the number of Web sites, Web pages, and online sales
volume (Werthner & Klein, 1999). Indeed, recent stud-
ies of online spending show that consumers spent $19.4
billion in 2001 on U.S. travel sites, which accounts for
approximately 36 percent of the $53 billion spent by con-
sumers at all U.S. Internet retail sites (TIA, 2002b). Fur-
ther, surveys of American convention and visitor bureaus
show that essentially every bureau maintains a Web site,
with some offering more advanced ecommerce capabili-
ties, and surveys of the Internet indicate that over 75 mil-
lion Web pages exist supporting the travel and tourism
industry (Wang & Fesenmaier, 2002).
This chapter presents an overview of many of the uses
of the Internet by travelers and the firms and organiza-
tions that compose the travel and tourism industry. The
next section provides a brief synopsis of the structure of
the industry and the role of Internet technologies, focus-
ing on four major sectors: hotels, airlines, travel agents
(and related intermediaries), and destination marketing
organizations (DMOs). Following this introduction to the
use of Internet-based technologies in travel and tourism,
emerging marketing and management strategies are
considered and various issues related to the development
and use of Web sites and online management information
systems are discussed. The subsequent section focuses on
the role of the Internet from the travelers’ perspective.
A variety of consumer-related technologies are consid-
ered, including travel “brochure” Web sites, virtual tours,
and mobile devices. As part of the discussion, changing
patterns of use and their impact on the travel experience
are considered. The last section of this chapter identifies
five global technology-related trends affecting the future
role of the Internet in travel and tourism. In addition,
some possible ways in which the Internet will shape the
future of the travel and tourism industry are discussed.THE TRAVEL AND TOURISM INDUSTRY
Structure of the Industry and the Role
of Information Technologies
The travel and tourism industry can be characterized
as comprising all organizations that are involved in the
production and distribution of travel and tourism prod-
ucts. It can be viewed as an umbrella industry (see
Figure 1) containing a set of interrelated businesses, such
as transportation companies, accommodation facilities,
attractions, catering enterprises, tour operators, travel
agents, and providers of recreation and leisure facilities
(Werthner & Klein, 1999). To respond effectively to the
dynamic character of the industry, information must be
able to flow among the clients, intermediaries, and each
of the suppliers involved in serving the clients’ needs. As
a result, information technology (IT) has become an al-
most universal distribution platform for the tourism in-
dustry. IT reduces the cost of each transaction by minimiz-
ing print, coordination, communication, and distribution
costs. It also allows short-notice changes, supports one-
to-one interaction with the customer, and enables organi-
zations to reach a broad audience (Poon, 1993). However,
the Internet has not affected all sectors equally. Certain
sectors such as airlines have been aggressive adopters of
technology, using it to help manage and streamline their