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Com~uterReservations Svstems in the Montrd and Toronto Tourism Industries: Admtion and Use Trends
Kara M. Giil
Department of Geography
McGilI University, Montreal
A Thesis submitted to the Faculty of Graduate Studies and Research in partial fulfubent of the requirements of the degree of Master of Ans.
O Kara M. GU 1998 National Library Bibliothèque nationale l*l of Canada du Canada Acquisitions and Acquisitions et Bibliographie Services senrices bibliogra~hiques 395 Wellington Street 395. rue Wellington OttawaON KlAON4 OaawaON KlAW Canada Canada
The author has granted a non- L'auteur a accordé une iicence non exclusive iicence allowing the exclusive permettant à la National Library of Canada to Bibliothèque nationale du Canada de reproduce, loan, distribute or seil reproduire, prêter, dismibuer ou copies of this thesis in microform, vendre des copies de cette thèse sous paper or electronic formats. la forme de microfichelfilm, de reproduction sur papier ou sur format électronique.
The author retains ownership of the L'auteur conserve la propriéte du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts fiom it Ni la thèse ni des extraits substantiels may be printed or othenvise de celle-ci ne doivent être imprimés reproduced without the author's ou autrement reproduits sans son permission. autorisation. A combination of technical innovations, system cost reductions, and pst-1970' s tourism industry restnicturing has led to the development and diffision of a variety of sophisticated computer resewation systems, or CRSs. These reservation systems have transformed the manner in which a destination and its travel products are packaged, marketed, and eventually sold to the consumer. Resently, over 96% of North Arnerican travel agents use CRSs to book a wide selection of travel products and services including domesûc and international flights, car rentals, rail, hoteis, tours, and mises to name a few. Favourable reports stress that the CRSs provide the more enlightened and discriminating 90's consumer with greater travel choice and increased flexibility in itinerary development. Less optimistic observers have noted however that this 'diversïfled flexibility' is practiced in a cornpetitive environment tbat Iimits the viability of independent. srnall tourism operators and certain destinations~ In spite of industry frenzy to 'get CO-mected' to these systems, questions remain as to the extent to which tourism suppliers and destinations have achieved such CRS links. In this case study of two urban destinations, Montreal and Toronto, tourism supplier relationships with CRS technology are examined. Drawuig on results hmthe accommodation and attraction sectors of each city, the varying degrees of CRS adoption and impact are illustrated. CRS adoption by firms is sbown to be constrained by a variety of management, market, and tounsm product-oriented barriers. Strategies employed by tourism suppliers to counter and overcome these baniers are identified. Following a review of tourism and information technology policies within Canada, sorne regulatory initiatives that may assist in a facilitating successful technology adoption and use among the various components of the urban tourism product are proposed. The constantiy evolving 'technological* channels and networks of tourism marketing and distribution are shown to be important influences on tourism destination policy, SOMMAIRE
La restructuration de I'indusme du tourisme, datant des années 703,associke à [a réduction des coûts et à une série d'innovations techniques, ont petmis aux systèmes informatisés de réservations (SIR) de se developper et de se propager- Les SIR ont change a façon de presenter, mettre en marche, et éventuellement vendre aux consommateurs tout ce qui touche au voyage. de la destination aux services offerts. Aujourd'hui, plus de 96% des agences de voyage nord-américaines utilisent des SIR pour réserver une gamme variée de produits et services, comme les vols nationaux et internationaux, les locations de voiture, les trains, les hôtels, les visites guidees et les croisi&res. Des analyses positives d6montrent que les SRpermettent aux voyageurs expérimentés et avertis un plus grand choix de voyages et une mei 1leure latitude dans le développement d' itineraires. Des observateurs, moins enthusiastes, no tent que cette plus grande flexibilite s'effectue dans in environment compétitif qui affectent la survie des petites compagnies independantes ainsi que certaines destinations. Malgr6 un engoument marqué par les agences à se relier à ces systemes, plusieurs questions demeurent sur l'impact qu'auront les SIR sur les usagers et les destinations touristiques en général. Dans cette eiude, j'examinerai les relations entre l'industrie touristique et Ies SIR pour deux grands centres urbains, Montréal et Toronto. Basé sur les services et attractions touristiques, le type des compagnies touristiques demontre les différents niveaux d'adoption et d'impact des SIR. I'identinerai les differents domaines, que ce soit la gestion, le marche ou le produit towistiq~e,qui nuisent aux succès de l'utilisateur des SIR, ainsi que les stratégies utilisées par les fmes touristiques pur surmonter ces difficultés. La signification des types de compagnies touristiques et les stratégies pour une mise en marché profitable des compagnies touristiques dans l'he des SIR, ainsi que les changements constants dans les réseaux de distribution et la mise en marche de I'industrie du tourisme sont des facteurs importants dans la détermination des destinations touristiques. This thesis covered many facets of the towism industry and necessarily drew fkom a wide range of people with expertise that was not only professional and academic. but highly technical and operational as well. First and foremost 1 would Iike to thank dl of the tourism firm managers and employees from Montreal and Toronto who agreed to participate in the snidy and gave the gift of their time and knowledge. Hopefuliy the results of your efforts. presented here. will lead to better cornpetitive prospects for your fïrms in the future. The many industry and government representatives who shared their varied insights and opinions of IT's role in tourism were invaluable to the research. The pdicy recommendations contained herein are reflections of those past 'edïghtening' debates. From McGill University, 1 would like to thadc Gordon Ewing for ùïs thoughtful and supporting comments on my 'shaky* thesis draft And Simon Milne, my supervisor - 1 would not have finished this work without your consistent guidance, patience. and wise words. You are a teacher in the noblest of tenns.
Lastly. 1 must express a worid of gratitude to my f'lyand fnends who have kept me sane and motivated over the past few years. Mom, thank you for straining your eyes over the many pages of 'convoluted' sentences; and for king my source of inspiration. This thesis is dedicated to you. Joey, thanks for adding a technical edge to the figures and drawings contained on these pages; and for wiping my tem when the words were not flowing. Dad, thank you for the support and encouragement you gave me during the many research trips to Toronto. Grazie a Angelina e Mario, Alex and Anila. Alas. with ali of your help, the job is done. TABLE OF CONTENTS
Abssact Ac know ledgments List of Tables List of Figures
CHAPTER ONE: ~ODUCIION 1
1.1 Introduction 1.2 AUns and Objectives 13 Thesis Structure
CHAPTER TWO: IT. Tocnusu & REGIONAL DEVELOPME~ 9
2.1 Tourism, Development and lT 2.2 Tourism and the New Political Economy 2.3 Contributing to the New Political Economy
CHAPTER THREE: CRS DEVEL~PMENT 23
3.1 Airline CRS/GDS 3.2 Hotel CRS 3 -3 Regional Reservation Systems 3 -4 Ticketing Agencies 3.5 On-line subscription services
CHAPTER FOUR: RESEARCHCorn AND METaom~omf 41
4.1 Montreal and Toronto 4.1. I The Role of Tourism in Monrreal 4.1.2 The Role of Tourism in Toronto 4.2 Methodology
CHAPTER FIVE: HOTELAND CRS ANALYSIS 53
CRS Adoption Hotel Size and CRS Hotel Ownership and CRS Perceived Impacts of CRS on hotels Bookings Market Exposure Labour Productivity Rate-fixing Flexibility and Yield Manugemerrt Alliance Formation Distribution alternatives for small and independent hotels Management Attitudes to CRS CFIAPTER SIX: A'ITRACTIONSAND CRS ANALYSIS 73
CRS Adoption CRS Selection RRS Ticketing Agencies Interna1 CRS The impacts of CRS use Barriers to CRS use Operation related Barriers Market related Bam'ers Manrrgement relared Barriers Alliance Activity Future technologies
CHAPTER SEVEN: DESTMATIONPROMOTION AND THE: Rom OF GOVERNMENT 91
7.1 National Tourism Policy and ïï 7.2 Provinciai Initiatives and the RRS 7.2.1 Reservationr Quebec 7.2.2 CRIS - Central Reservation and Information Service 7.3 Municipal Information Technology Initiatives 7 -4 Public Sector impact on hotels and attractions
CHAPTER EIGHT: CONCLUSIONS 106
8.1 Hotels, Atûactions and CRS 8.2 Public Sector And Destination Romotion 8.3 Tourism, IT and Destination Development 8.4 Research Agenda
1 interview Schedule 2 Questionnaire 3 CR0 Booking Incentive LIST OF TABLES
2- 1 Transformations in International Tourism 2-2 Marketing Strategies in the New Tourism 2-3 Contrasting roles of technology in the old and new tourism
Percentage of total travel agencies using CRS temiiaals Percentage of hotels using CRS World's largest vo1unt;uy hotel consortia Dominant characteristics of products in GDS and RRS
Touîsrn specialists consdted for the research
Hotel respondents by type, size and city CRS type by Hotel size CRS type by Hotel type Aggregate results of perceived CRS impacts on hotels Cornparison of commissions paid for reservations
Sampled attractions fiom Montreal and Toronto Attraction sample Characteristics CRS use by attraction type and size Motivations for different type of CRS adoptionluse Barriers to CRS adoption by attractions
Factors influencing CRS adoption
LIST OF FIGURES
Butlers TACE Mode1 International Tourism Flows
CRS adoption by US Travel Agents Strategic alliances among major CRSs The CRS distribution system Growth in On-Line Subscription Services
Geographic origin of visitors to Montreal Geographic origin of visitors to Ontario Research respondents
Type of CRS used by Montreal and Toronto hotels CRS bookings by Hotel type compared with 1-8001Y CHAPTERONE
INTRODUCTION
As pater numkrs of comrnunities engage in toimsm development, cornpetition among destinations for the 'elusive tourist' (and their dollars) iacreases significantly. A destination's ability to amact tourists in this cornpetitive environment is dependent upon successhil marketing carnpaigns aimed at segments of the travel market. Selective exploitation of information technologies Vs) has enabled many destinations and tourism operations CO maximize the effectiveness of such marketing and dismb~tionefforts. Explosive developments in the speed and memoty capacity of microproce~~~csand drastic reductions in production costs have pemiitîed the widespread dinusion of IT tools and applications in the global marketplace (Tapscott, 1993; Hepworth 1991). Several comrnentatoa have pointed to the ways in which new technologies will radicaiiy transfomi how we produce gdand services and conduct business (Valery, 1987; Quinn and Paquette. 1990; Harvey, 199 1) and the ways in which sofieties and cultures operate (see Kumeil, 1990). While the accuracy of some of these predictions is debatable (sae for example Sayer. 1990; Gertler. 1992)- the ability of ïï to improve corporate competitivenes cannot be questioned. Few industries are as well situated to benefit fiom emergïng ïîs as the tourism industry (Poon. 1993b). As Buhaiis (1995a: 2) notes: Tourism products are almost exclusively dependent upon representatiom and descriptions by the travel esde. Thus communications and information transmission tools are indispensable to the tourism indu-.
A variety of ïï products such as management infornation systerns. CD-ROMs and client and destination databases are increasingly serving the information needs of both travel supplier and tourist alike (Poon, 1993b. While several Tourism Canada publications and a nurnber of recent conferences have addresseà the links that exist between tourism and lT in a broad sense (CK, 1995; GM Robinson Associates, 1993; Tourism Canada, 1994, 1994~)a great deal of concrete research rem- to be done. This omission was recentiy acknowledged by key players involved in the study of Canadian tourism: Neither Michel Archambault, who holds the tourism chair at the Université de Montreai, nor David Redecop, Director of the Canadian Tourism Research Institute at the Conference Board of Canada could recall any studies on the impact of new technology in the travel indu- (McGovem, The Gazeae, Febmary 21, 1994).
Enhanced telecornmunication facilitateci through computer information networks is one of the key aspects of ïï (Tapscott, 1993). Such 'information highways' are the transporters of data between the various elements of an organization, industry, or economy. Network communications often exist at the intra-firm level in which several deparmients are linked electronicaiiy via local area networks WS). Of increasïng importance however is the extemal computer network Iinkage or wide area network (WAN) which can seadessiy unite depamnents or branch offices often hundreds or thousands of kilometers away (Hepworth, 1991). in the tourism industry, the most pervasive private telecommunication network is the CRS or computer reservation system. A CRS is, in its simplest form, a centrai database linked to a network of extemal tennuials (Collier, 1989). Depending on the firm's needs and O resoruces, this network of terminais cm be local, national, or international in reach. Operating within the system usualIy involves an external terminal making queries and drawing information £tom sophisticated databases stored at the core of the network. Transactions are perforrned using this stored information via the extemal tenninals - with database modifications enacted in real-time (Balfet, 1993; Beaver, 1992; Ham, 199 1). The original CRSs were in-house airline systems designed to keep mck of the many fares and schedules offered by a patticular airline. Since the 1960's, these systems have evolved to serve the particular distribution and management requirements of other towisrn sectors as well (Poon 1993b). Today there are three basic types of CRS: the airline CRS which controls flight schedules and reservations; the hotel CRS which specializes in the bookhg of hotel room and convention services; and the destination CRS or Regional Reservation System (RRS) which offers computer based direct access to travel and holiciay destinations and the tourism products available within a particular region (Vlitos-Rowe, 1992; Buhalis, 199Si-i.b). The airline CRSs are leading the pup with respect to international expansion and adoption by travel retailers. As a result, these systems are inmasingiy referred to as global distribution systems (GDS). GDSs aiso act as network providers for srnaIler hotel CRS, RRS, and non-propnetor companies that pay for the CRS services of the network provider. By developing into a network provider for a range of travel related products and services, the CRS has emerged as an essential part of the tourism system infhstnicture. Al1 components of the tourism system appear to benefit from this networked relationship: travel products are offered an addi tional distribution and marketing channel while generating substantial revenues for the CRS owners (Feldrnan, 1988, 1992a,b). In facf today's CRSs constitute a 'total information system' revolutionizing the packaging, marketing, and distribution procedures for the entire travel trade (E'oon, 1993b)- With one phone cd(or keyboard query hma connected PC) travel agents or any CRS subscriber can access information on seNices and prices fkom a variety of travel suppliers. As Collier (1989: 87) notes: This is not an airline booking system, or a marketing system but a huge travel distri bution nenivork.
In the USA, travel agents were booking 91% of domestic and 80% of international flights, 68% of car rentals, and 53% of al1 hotel rooms through CRS by 1992 (TraveI WekIy, 1992). Over 96% of Canadian travel agents were using CRSs to book a variety of the above listed rravel products by 1994, including over 50% of packaged tours (CI'C, 1995; Brossait, Interview, 1995). In addition, public access networks such as the Internet and the World Wide Web are pennitting more direct consumer access to CRS information that was traditionally limited to travel agents (Balas et al- L994). Given the overwhelming reliame of the touism indusiry on CRS as an information and booking tool, many questions are now king asked regarding both the nature of this evolving technology and its impacts on the destinations and sectors that comprise the tourism industry. SeveraI earlier studies have identifiai the systemrsorganizational benefits (CoUier, 1993, 1989; Archdale, 1992). The greatest advantages to CFtS representation for a travel supplier are the enlarged geographical marketing range and the increased flexibility in travel product development and delivery (Poon, 1993). It is argued that CRS technology aUows firms to move into new interrelated activities, generating synergies, systems gains, and econornies of scope (ibid). The production of clusters of interrelated services instead of single, unrelated items results in a more profitable business practice, Thus, as a total system of innovation in product 3 packaging, CRS can uicrease the efficiency, quality and fiexibility with which travel services are supplied. Poon ( 1993: 13) maintains that new technologies facilitate:
the production of new, flexible and highquality travel and tourism seNices that are cost competitive with mas, standatdized and rigidly packaged options .... ïï hetps to engineer the transformation of travel and tourism €rom its mas, standardized and igidly packaged nature into a more flexible, individual- oriente4 sustainable and diagonally integrated indusay.
Poon argues that the greater army of tourist products available through CM :O consumers will facilitate ïncreased access to niche products - either as stand-alone entities or as cornponents of more flexible package structures. In simple tenns this enhanced product 'depth' may translate into greater opportunities for small locally controiied businesses to gain access to a consumer seeking more flexible and innovative travel products (see also Bennett and Radburn, 199 1). While CRS undoubtedly opeas a range of opportunities for the traveler, a number of researchers have begun to analyze these technologies bma more criticai stand-point, A few of these studies have wamed of the problems associateci with the biased nature of information access and display on the systems (ICAO, 1992; Sloane, 1990; Feldman, 1988). Such studies have shown that travel agents are highly likely to transmit to their customers information displayed fkom the fmt page of their CRS tenninals. Despite attempts to regulate this type of bias it is clear that those controlling a system can support their own products by a number of means (i bid). Other studies have focused more partïcuiarly on the representation of firms and destinations on these travel information systems and the degree to which exclusion or inclusion cm influence competitiveness and proceses of regional development (Buhalis, 1995; Pohlmann, 1994; Milne and Nowosielski 1997). in their work on travel distribution technologies and the development process in the South Pacific, Milne and Nowosielski (1997) show that the high cost of CRS membership, and the relatively rigid structure of the information that can be displayd leads to the exclusion of many smaller, locally owned operations fiom these powerfiil distribution systerns, while larger, often foreign owned concerns are ükely to reap the competitive rewards of accessing these networks (see also Burridge and Milne, 1997). This small but growing body of Literatwe points to the fact that due to a variety of bmïers. limitations on entry to CRSs are considerable for the smali and independent travel supplier and that exclusion from these systems may threaten the economic swival of these enterprises. Finally, CRS access, or lack thereof, may affect the visibility of the tour& destination. thus impeding prospects for successful tourism promotion and regional development (Milne and Nowosielski, 1997). Failure to capitalize on the marketing and distribution technologies avaiiable to destinations may result in the loss of aavel markets to competing regions. To date, relatively Little research has addressed the issues of CRS and destination development in the Canadian seaing- As Tourkm Canada (1% 4) notes: very little effort is dedicated to educating tourism operators of the options, levels of participation. opportunities and costs of CRS lis~gs.There is also little ... research which has been camed out to ... idente the marketing revenues and increased profitability which may be actiieved through the use of these systems which could convince operators of the value of listing on these systems.
Such information is essential if tourism management personnel are to understand their competitive position as a hrm andor destination in the modem tourism industry and more importantly. how to take advantage of the opportunities afforded by CRS while avoiding the potential negative consequences of its use.
1.2 Aims and Objectives in an attempt to grapple with some of these imporîant research issues and to hu some of the gaps that exist in the literature, this thesis focuses on the use of CRS by two key sectors of the tourism product (hotels and attractions) in Canada's two largest cities - Toronto and Montreal. Both cities have an established but evolving tourism inhstnicture and have tumed increasingly to the industry to smooth out some of the economic dislocation associated with the widespread resmcturing of manufacturing and public seNice activities (Chang et al, 1996; Cockwell, 1995). The use of case studies hm different provincial settuigs also enables a cornparison of diffenng govemment policies toward the development of regionai resemation systems and the support of the tourism industry's attempts to utilizc tcavel distribution technologies. A combination of personal hte~ewsand postal questiomaües was used to gather 6.m ievef information from the accommodation and attraction sectors in both cities. A broader perspective on travel diseribution technologies and thei. influence on tourism products was obtained through interviews with selected tourism, CRS industry, and government representatives. The following objectives provide the focus for the research: a To assess the level of adoption of CRS technology by the accommodation and attraction sectors of Montreal and Toronto. in particular 1 focus on differential adoption of the technology according to fhn size, type, and ownenhip structure. a To identifv the barries (managerial, technicai, operational, hancial) to successful CRS adoption and use by these tourism fïms.
To identify strategies and alternative technologies employed by tourism firms to improve competitiveness and in sorne cases overcome barriers to CRS adoption. In particular 1 analyze the phenomena of inter-- netwotking and the spatial clustering of firms. a To determine the degree of impact of CRS use on particular aspects of tourism firm competitiveness. While it is very difficult to draw direct comlations between increased CRS use and corporate performance, 1attempt to point to broad areas where the use of this ïï appears to be Mproving performance in areas such as client data base development, customer service, labour use, rate setting flexibility, and the ability to network with other components of the tourïsm product, a To analyze the rob that national and provincial level governments have played in facilitating or hinde~gthe connections between IT and the destinations* towism industries.
To briefly outline some strategies and policies that may assist Montreal and Toronto tourism suppliers and promotional organizations in the adoption and diffusion of CRS and alternative technologies, and improve destination competitiveness. a To present a tentative agenda for haire research into the links between the tomism industry, evolving information technologies and regional development.
Chapter 2 ùegins with a broad review of the role that tourism and IT play in the regional development process. I argue that while there is an expanding body of literature on the connections that exist between tourism and economic development, relatively Little attention a has been paid to the degree to which evolving ri' (especially in the area of travel distribution systems) may influence the nature of these Links. The third chapter presents a history of CRS development and a description of the variety of systems available in the marketplace. I also point briefly to the way in wbich emerging technologies such as the Internet represent something of a threat to these systems. Chapter 4 presents an ove~ewof the cities and sectors that provide the focus for this thesis. A brief summary of the changing economic circumstances of the two tuban case studies and an outline of the history of their tourism development is presented. Methodological approaches and issues are also outlined in this chapter. The thesis adopts a mixture of semi- structured in-depth interviews and a structured questionnaire that was distributeci by mail. 1 focus on some of the advantages and disadvantages associated with these research techniques. Chapter 5 presents the findings of the study of CRS adoption in the Montreal and Toronto hotel sectors. An analysis of differential CRS use by hotels and the variety of barriers that underlie these trends is presented. The range of impacts this technology has on the performance of different hotel types is also reviewed, focushg in particular on some of the a problems facing small and independent properties. The chapter concludes with a review of some of the strategies employed by hoteliers to maximite the benefits and minimize the costs associated CRS use. Chapter 6 deals with CRS use and adoption by Montreal and Toronto attractions. The heterogeneous nature of this segment of the urban tourism product provides a usefiil contrast to the more standardized urban accommodation sector. This heterogeneity is, in tum, reflected in the broader range of distribution systems avafiable to operators. Foiiowing a brief review of the types of attractions covered by the research, 1move on to outüne the differentid use of CRS by various sizes and types of these kns. The discussion again revolves around issues such as the level of CRS adoption, bacriers to access, impacts, and strategies designeci to circumvent
CO mpetitive constraints. In Chapter 7, 1 provide a broad review of tourisrn and information technology policies at the national, regional and hanlevels within Canada. Emphasis is placed on iecent attempts by provincial govemments to develop regional reservation systems in order to bolster the presence of their respective tourism products in the global market place. 1 show that the 7 establishment of suc h geographicaüy-onented systems has bensomewhat problematic and that their relative success reflects differing re tationships within the respective han tourism industry. The strength of Ontario's public and priva& sector relationships is show to be a key factor influencing success of that province's system. The concluding chapter presents a bnef ove~ewof the thesis. Potenaal strategies that may aid the marketing and distribution efforts of the hotel and attraction sectors in the urban case studies are presented. 1 also propose some regdatory initiatives that may assist in facilitating successful technology adoption and use among the various components of the urban tourism products. The implications of these findings for the broader theoretical approaches that deai with the links between tourism, lT, and economic development processes are then presented. The chapter concludes with a research agenda which outlines major areas for niture anaiysis of the important links that exist between tourism, information technology and regional development. ïï, TOURlsM & REGIONAL DEYELOPMENT
UntiI recently those attemp~gto understand the Iinks that exist between tourism and destination development have paid relatively liale attention to the important role of information technologies. In recent years however, a number of commentators have begun to place iT among the core issues linking tourîsm and regional development. This chapter presents a review of this tourism literanue, highlighting the considerable advances that it has made to our understanding of the tourism developrnent process and its inter-relations with ïi'. I dso identify some of the gaps that exist in our current understanding of the relationship between lT, tourism and destination development.
2.1 Tourism, Development and ïï
The geographic study of tourism requires a more rigorous core of theory in order to conceptualize €uUy its role in capitalist accumuIation, its economic dynamics and its role in creating the mattenality and social meaning of places (Britten, 199 1: 452).
Brinon's cal1 for more rigorous inquiry was addressed to the body of work fiom the 60's through to the 80's in which tourism research, and impact studies in panicular, were often criticized for king overly descriptive in nature. Often the realm of inquky was Limiteci to the destination with no regard for the influence of exogenous factors of development such as shifrs in prirnary markets. and multinational corporations (Pearce, 1989). There were however, two frameworks developed during this time that atïempted to gain a better understanding of the links between tourism and regional development. Oppetman (1993) categorizes these as Diffusionkt and Dependency theories. The Diffusion body of theory bomws heavily hm Vernon's (1966) Roduct Lifk CycIe (PLC) and Rostow's Stages of Economic Growth (1%0). The PU3 demotlsbates the relationship between consumer &mand and product innovation. Simply put, as demand for a product increases, mass production and standardization ensue, followed by a saairation of the market, reduction in demand, and the eventual obsoIescence of the product (Vernon, 1%6). When applied to tourism. the mode1 ülustrates the temporal notion of evolution hmone level of development to another. with inferences as to the environmental. social and structural requirements and impacts at each IeveUstage, Butler's proposed Tourism &a Cycle of Evolution (TACE) mode1 (Figure 2-1) depicts how. as demand for a particular destinaaion incrcases. uaditiona! smail sale locally controlled tourism is replaced or usurped by Foreign conmlled mas touisrn (1980). Standardized tourism facilities and services catenng to more homogenous mass tourism follow and eventually, the destination is overwhelmed with tourists and becomes saturated At this point, demand for the travel product diminishes as the aaractivencss of the destination is desuoyed. Butier's mode1 does however, offer opportunities for destinations to avoid eventual decline through tourism product innovation,
Figwe El: Butlers TACE ~Model Source: Pearce. 1989 19
Rejuvenation / Reduced Growtt / Stagnation CRITICAL RANGE OF ELEMENTS OF \ \ - - Stabilization Sirnilar models of tourism destination evolution have been proposed by Miossec (1976) who considers tourist behavior and attitudes, and Gormsen (1981) who examines the deof local participation and planners in each stage of development Some authors such as Plog (1973) and Thurot (1973) have attempted to link tourist typologies to stages in the des~ation's evolution. Thus the 'allocentric* adventurous rraveler searches for destinations in the exploration stage of development, whereas the 'psychocentnc* Mous tout-isr seeks the comfort and securïty of the highly developed consolidation stage (Plog, 1973)- These models on tourist development have been criticized for king simplistic and assuming a uniiinear direction of development (Opperman, 1993; Choy, 1992; Weaver, 1986). Ln addition, there is argued to be a lack of recognition of existing local economic, political and social structures which may influence the supply and demand for the particular tourkm destination and hence, enable some destinations to 'skip* stages or remain stable at certain levels (Grekin, 1994; Shaw and Wdliams, 1994). FmaUy, extemal factors such as technological innovations, changes in market structure, and shifis in global relations are largely neglected (Vincent, 1995; Taylor, 1986; Storper, 1985). Another prernise widerlying much of Dinusion theory is the spatial spread of development to peripheral regions. This theory may be Iinked to the growth pole concept first developed by Francis Perroux (1955) and subsequently employed by planners in the tourism industry. In this case, it was assumed that tourïsm would have a positive influence on the regions developing linkages with 0thindustries and leading to a relatively sigxufïcant multiplier effect in the economy (Vincent, 1995: 35).
Many authors regarded tourism as the means to achieve such positive impacts, recornmending the development and extension of the industry in local and regional econornies (Krapf, 1961). Such positive spin-offs to peripheral regions are however often hindered by the influence of extenial factors- Lack of local ownership and the rise in ownersbip concentration make it difficult for local planners to promote regional development goals which are ohen in conflict with the profit motives of the external foreign interests (Britten, 1982; Kassé, 1972; Van Dom, 1979; de Kadi, 1979).
Dependency theory emerged as a more plausible explanation for the Links between tourism and local development (Frank, 1972; see Opperman, 1993). This 'political economy'
The abiiity of the destinations to determine their own tourism markets and products in this mode1 is greatly restricted aven the pervasive influence of foreign companies. in fact, a significant portion of overail revenues reninis to the controlling tourism corporations situated, not in the destination, but in the metroplis. The bulk of the remaining revenue flows to toutism sectors such as accommodation and entertainment located in the destination, yet charactertised by foreign ownership or investment- From these local sources, the Stream of revenues is again back to head offices situated in the metropolis, while locally controlied operations are lefi with oniy a small percentage of revenue flows. While Dependency approaches represented an impo~tstep foMard, they have not escaped criticism. By concentrating on mas and more specifically, resort type tourism, Dependency theory largely turns a blind eye to the many diverse fomof tourism development, such as urban tourism, and theü relationships with local economies (Oppetman, 1993; Shaw and Williams, 1994; Pearce, 1989). More importantly, there is no recognition of the ability of local forces, whether government or indusîry, to mitigate ihe problems assofiated with extemal dependency through a variety of measutes such as regdation or concentration on domestic as opposed to international tourism (Pmn, 1993, Ioannides, 1992; Storper, 1990). Failure to provide an alternative tourism development plan reduces the utility of Dependency theory for 'peripheral' nations and regions seeking to diversify their economies. Thus tourism is seen as an ambiguous development alternative that promises a limited degree of economic growth, but only at the expense of locai control and the emergence of widespread social and environmental costs. Whiie Britton's mode1 represents an important step beyond the rather uni-dimensional impact studies that have dominateci tourism research, the question remains as to whether it accurateiy reflects the realities of the industry's evolution. One of the realities these studies have largely ignored is the pervasive influence of IT on the tourism system. While certain forms of technoiogy such as transportation and infr;rstructure developments are discussed (Britton, 1981; Hepworth, 1993) there is no mention of the impact that ïï, and CRS in particular, can have on influencing tourism fiows, travel demand, and destination development.
2.2 Tourism and the New Political Economy In light of the weaknesses identifid in the above discussion, a small group of researchers has begun to musfier 'new' political economy appaches, developed in applied economics, indushial geography and sociology. to tourism research (Poon 1990, Urry 1990, Milne 1992, Peacock 1992, Grekin 1994). Many of these approaches have drawn heavily on Piore and Sabel's (1984) arguments chat a deepseated cestructuring of economic activity is occurrïng in developed economies. While there are diffe~ginterpretations of the nature and extent of this resuucturing, it is generally argued that a partial eclipse of a previously dominant 'model* of production organization, conswnption and state regdation has occurred (see Teague, 1990; Gertler, 1992; and Yeung, 1994). According to Piore and Sabel (1984), a 'Fordist' model of industrial organhation characterized by large vertidly integrated companies producing homogeneous products for a market based primarily on pnce competition is seen to have domhateci for much of this century. Market saturation, rapidy changing consumer âemand and intensified competitive pressures however are seen to have necessitateci the break-down of this regime and its replacement by a new 'pst Fordist model'. The new flexible model is. in contras&driven by a competitive environment w hich emphasizes quality and innovation, and requires that 6rrns respond rapidly to changing consumer demanâ. As a result, firms are fotced to introduce new, more 'flexible', approaches to production organization. Applications of powerful iTs are essential to the adoption of a flexible production regime (Tapscott. 1993; Valery, 1987). This new environment is seen by many commentators to offer a range of important opportunities for smail firms with their 'flexible' organizational structures allowing them to achieve high rates of innovation and to cater effectively to the rapidly evolving marketplace (Piore and Sabel, 1984. Milne and Tufts 1993). The work of Auliana Poon (1989a. 1989b, 1990, 1993ab) provides one of the most detailed applications of new political economy approaches to the study of courism. Pwn's framework for understanding the links between todsm and the economy is based on the prernise that "international tourism is undergoing rapid metamorphosis, a transformation toward a new industry best practice or common sense" (1989: 91). One of the primary driving forces of this transformation is the widespread application and adoption of a system of information tecblogies. Poon draws paraliels between the Fordist era of manufacturing and the pst-war era of 'old' tourism. Technological innovations in air transport, inexpensive oil, economic growth. and the institutionaiization of paid holidays in the work place all contributed to the developrnent of a mass production-styled tourism industry. Consumers, uninitiated in the practice of international leisure vacations, welcomed the opportunity to experience cheap travel in sunny destinations. The era of mastourism was launched: mîmicking mass production in the manufacturing sector...tourism developed dong assembly-line principles: holidays were standardized and inflexible; identical hotidays were mas produced; and economy of scde was the driving force of production. Likewise, holidays were consumed en masse in a similar. robot-We and routine manner, with a lack of consideration for the nom, culnue and environment of host countries (Poon, 1993: 4).
By the 1980's however, mass tourism began to show symptoms of crisis and according to Poon, a 'new' tourism is emerging as capital attempts to raise profit rates and cope with an increasingly global cornpetitive environment (Table 2- 1).
Table 2-1: Transformations in International Tourism
Old Tourism: Mas, standarcüzed, and New Tourism= Flexible, segmenteci, rigidly packaged tourism + customhed, and diagdy integrated
. .- Demand: Demand: Sun Iust + Anti sun syndrome Tinsel and junk + Real, natural, authentic The more the memer 4b Growing concem, planning Mass markets + Segmentation and niches Mas, im personalized services + Hi& tech, hi& touch Supply: Supply :
Vertical and horizontal integration Scrategic alliances and diagonal integration Designed and custom made Economies of scope and systems gains Technology: Technology:
Information technology inmases the 1 + Tourism as a system of wealth creation and quality and efficiency of tourism services 1 new services Modified hmPoon, 1989: 93.
According to Poon's basic modei, tourism &mand is changing in two ways. Fit, a large portion of the populations of Western societies (Baby Boomers) are aging. Enjoying earlier retirement, this segment of the population is traveling more often and has access to a higher portion of disposable income than other age cohorts (Milne, 1992; McDougall and Davis, 1991). The second 'change', perhaps of greater significance, is the maturation of the popular culture of travel. Tourists are no longer the uninitiated mas consumers of the 1960's and 70's (UV, 1990). Mth past travel experiences and a larger 'store' of mvel related information at their fingertips, today's consumers are becoming more rehed in theu choice of travel products and destinations. This is resulting in a multi-faceted tourîst who seeks different tourism experiences: ...the dernands of the public, now well expenenced in aavei. gmw even more varied .. People are looking for wider choice, greater flexibility in holiday duration and itineraries, innovative things to do and different things to see (Pelletier, 1993: 3).
Alternative modes of tourism are experiencing increased populanty as a result of this selectivity and segmentation. Eco-tourism, heritage tourism, and adventure tourïsm are now common choices avaiiable to wide audiences (Ritchie and Hawkins, 1993). In addition, the tourism industry is experiencing a gradua1 shift fkom passive 'fun* entertainment-type centres to more active and interactive 'learning' museums and theme parks (Martin and Mason, 1993). Traditionai approaches to tourism product marketing in the Fordist era were designed for mass consumption by a homogenous public. Today, tourism marketing is entering a new level of sophistication, unmatched by pst practices. Marketing smtegies are shifting hman empbasis on mass markets to mure specialized niche segments (Peiietier, 1993; Ritchie and Hawkins, 1993) (see Table 2-2). As Dr. Langlois, Director of Tourism Management at Université du Québec à Montréai commented, Power will be in the hands of those counaies, airlines, tour operators, attractions and ot!xrs who will know how to package experiences for every market sector.,, (in Pelletier. 1993: 7; emphasis added).
Table 2-2: Marketing Strategies in the New Twrism
- Means niniing awav fiom d nuiùna towar& Mass Marketing Direct customer communications
Socioeconomic groups + Customer databases l Media placement I + I Telematlceting/targeted messages 1 one-way communication 1 + 1 Building customer relationships Source: Jones, 1993b: 1
The application of ïï is instrumental in faciiïtating this change in marketing focus. In the pas& 'old' tourism utilized techno1ogy to increase the efficiency and control of tourism provision in order to satie mass consumption Qmands only (Poon. 1993; see Table 2-3). Airlines, hotels, car rental fkms, and tour operators of the time were using stand alone cornputer systems (dedicated) that did not have the ability to network and inreract with extemal databases. This meant that interaction among the various links of the mvel dismbution chah was curnbersome, resmcted and time consuming- Pivotal to the transition fiom old technology practices to new was deregulation of the US airtine industzy in 1978 and the ensuing recession of the early 1980's (Table 2-3). The resultant intense industry cornpetition and cestricteci coprate capital cailed for the application of efficiency-improving and global-reaching IT's. This was possible with advances in micro- electronics, data storage capacities, and telecommunications.
Table 2-3: Contiasting roles of technology in the old and new tourism
Old Tourism New Tourism Before airline deregulation 1978 After airline deregulaaon
Technology Cornputer*telephone, telex 9 Fuiiy integrated CRSs used Limited reservation systems 1 Management information systems 1 ~lobdcommunication Technology Travel agents are major users users AU tourism supplies are users Technology Value oriented focus Internaiiy directed (dedicated) Global network oriented Production controlled Client management and control Tec hnology Technology is slow to diffuse + Airline CRS sets industry standards characteristics Technology facilitates mass production Systems are linked and networked Tec hnology improves efficiency Technology diffuses rapidly Technology facilitates flexibility
Source: Poon, 1993: 45
For tourism firms, much of ïï's impact is behind the scenes - in the 'back' office (Dnicker, 1991; Table 2-3); A hotel is made more efficient in the delivery of services yet the fiont desk cIerk is still a wam and invihng se~ceoriented professiond. Technology can also be used in the 'front' end of tourism businesses as an enhancement to the tourism experience (Poon, 1994; Powys-Smith, 1995). A museum, for example, still bhgs the tourists into direct contact with artifacts yet this experience is 'enhanced' with the high-tech interactive displays now available for exhibitions. It is important to note diat whiie iTs are neutrai, their use by individuais and fïrms is not. There are few examples however where the introduction of ïï to the tourism industry actually diminishes the tourïsm experience (Light, 1995). Poon comments that the impact of E on the pre-trip information gathering stage of the travel process is revolutionary. As the following discussion illustrates, consumers are demanding more tourism choices and the ability of iT to facilitate this information transfer is greater than ever. The advent of ITs promises to provide increased travel choices and greater flexibility in travel itinerary development. For touism fïrms of ail sizes, the application of ïï to the external, information intensive, aspects of their businesses can gready enhance exposure in the global marketplace. and ultimately increase competitiveness. More than ever, computer information nezworks are king applied to tâsks such as marketing, distribution, product blending, and packaging. The resulting links with other tourism suppliers and disiributocs are enabîing greater global market penetration than one finn could achieve alone (Poon, 1993). Poon is adamant about the ability of ITs, and CRS in particular, to provide greater economies of scope for the proprietors of the technology- Similady, diagonal integration through computer information networks enables tourism finns to: move into new and different activities, with tremendous synergies, systems gains and scope econornies to be deriveci hmsuch integration (Poon, 1989: 36).
Together these processes relate to Poon's concept of a 'total system of weaith creation' in which: wealth in tourism is created and value-added through the diagonal and synergistic integration of a number of activities into a total system (1989: 96).
The CRS, through its relatively seadess connection of a variety of tourism products and services, offers perhaps the best exarnple of technology pennitring a system of wealth creation: Once the initial capitd required to develop the soWhardware and to operate the CRSs was invested, CRS owners could increase the number of products being offered through their systems with little additional cost (Poon, 1989; Quina et al, 1986). One area of activity expansion through exploitation of CRS technology is in the sale of travel information data collected in the reservation systems. Customer and product databases, and te~ecommunication and accounting seMces developed to support the CRS could in tum be sold to businesses not necessarily related to the tourism industry (Wheeler, 1987)- Note for example the creation of Amcrican Airfine's sister company, AMR Information Services (AMRIS). for this exact purpose (Quinn and Paquett, 1990). Another exarnple of the 'diagonal and synergistic integration* facilitateci by CRS technology is the Frequent Ftyer Program - a form of specialized bmd marketing. The CRS is instrumentai to the success of these programs because: companies that offer complewntacy seMces andlor products may have an affinicy that can k strengthened to mutuai advantage through information technology (Tapscott, 1993: 9 1).
In this case, the CRS provides a common distribution channel ti~~ughwhich hotel and car rentai programs are networked and marketed together with airline pmgrams. The CRS permits the efficient execution of the Erequent Fiyer programs by storing and tracking miilions of purchase history records. American Aulines executives state that without Sabre, they would be overwhelmed with "information overload in tracking the universalizing communication base of its frequent Ayer fafnily" (Mowlana and Smith, 1993:25). Hence, access to a CRS bas become a prerequisite to participation in a Frequent Flyer program for the îravel product suppliem.
23 Contributhg to the New Poütical Ecommy Poon's analysis of changes occwrhg in the international tourism industry has made an important contribution tp the study of tourisa There are, however, some weak points in Poon's arguments about CRS aud tourism development. Poon relies on a dichotomy or binary opposition beween mas production and flexible production, largely ignoring the range of practices that stretch dong a continuum of mass to niche. rigid to flexible. It should not be assumed that mass production lacks flexibility for: capitalist production has always combined flexibilitics and inflexibilities and what are possibly emerging now are new permutations of each rather than a simple trend towards pater flexibility (Sayer, 1990: 671; see also Dore, 1986).
The 'cornmodification of place* through standardization and regdation of tourist images and experiences both aiiows and necessitates the persistence of mas production (Britton, 1991). As Britton States, Many cuIturai and fecfeation pursuits have been transformed into experiences which are bought and sold as cornmodities. This ptocess complements. yet subverts, the trend towards individuation of leisure, with the personalkation and differentiation of leisure products expresscd in market niching, cosmetic design variations, and advertising disguising the industriaiization and mass production of such products (1991: 453; itdics added).
Tapscott (1993) has identifiecl a trend in marketing called 'mas customization'. This strategy cetains the mas target nature of oId tourïsm yet incorporates the customized approach of the new through the exploitation of K. Complex databases containing immense amounts of historicai information on individual preferences and purchase behavior are used to customize mass market campaigns quickly and efficiently- The role of information technology in the maintenance, and not eradication, of a mass regime of production must be considered. Hepworth (1989) compares the existence of an 'electronic highway' bdt on telecornmunications and cornputers with the transport systems of old - 'road networks'. A network marketplace will result hmthe establishment of low cost cornputer-communications networks. These networks wiil provide the transport system for information prodw~~and services so that a mas production, mas distribution, mass marketing, and mass consumption information pmcessing industry can develop. (Dorick et al, in Hepwortù, L989: 32).
The possibility for CRS and public access idormation networks to proviâe this transport system for tourism information and hence the mass consumption of tourism is evident. Mat remains to be seen is whether or not such distxïbution channels ensure 'adquate' coverage of the abundance of travel product suppliers in the marketplace. Even if it is evident that new marketing technoiogies, such as the CRS, are permitting greater flexibility and efficiency in travel choice itineraries for consumers in one respect, the inability of some tounsm suppliers, such as hotels and attractions, to conform their product information to CRS standards may result in their exclusion hmthese distribution networks, hence restricting selections for consumers. The power of CRS technology and its relationship with destinations should not be understateci for: those sectors of the tourism system which intersect between the tourist in the home market and tourism destinations wield considerable influence over inter industry transactions and the geography of tourist flows (Britten, 1991: 458).
Poon's analysis stems hmher assertion that CRS and iT in general will enlarge the range of choices available to consumers. Inherent in her discussion is the assumption that a wider range of products kom the very small to the very large will sham space and biliing on the electronic distribution systems. There is growing evidence to the contrary however (Buhalis, 1993,1995; Pohlmann, 1994; Archdale, i992). Small and independent suppliers will continue to face difficulty chailenging the marketing rnight of the large chah oriented travel products. Travel consumers will not immediately benefit thecefore fiom a blossoming of choice and selection. Much of Poon's work is oriented to conditions in the island destinations of the Caribbean and her conclusions often exaapolate kom this setting to al1 tourism locales. mer tourism and development studies are also biased towards case studies of underdeveloped and third world settings (Archdale. 1992a; Buhalis, 1995). Little endence is given on the similarities or contrasts of new tourism practices of ïi' adoption and networking in urban destinations for example (Law. 1994; Pearce, 1993). Evidence hm such des~ationsmay shed important tight on the findings of Poon and others. In addition. Poon's work pre-dates the advent of one of the most popular, yet least known marketing technologies appearing today - the Intemet The poiential of this vast communication network for the present and coming years undermines her statements as to the power and domination of CRS in the future tourism industzy. The possibility that then could be competing computer distribution channels has not entered her discussions. While Poon recognizes the relevance of Post-Fordist style business practices to the a tourism industry, she does not discuss in necessary detail the fom and characteristics of alliance and networking activity taking place in the tourîsm industzy txiay. The most significant change in the organizational structure of the tourism industry over the last decade is its realignment through horizontal. vertical and diagonal integration and the variecy of cornpetitive d cooperative inter-organizational networks that have emerged (Hepworth. 1989; Bonin, 1990; Stm, 1991. Cooke and Wells. 1989). Interdependencies among nrnis and the importance of co-operative relationships are gaining in mornentum in nearly ali seNice sectors (Bonin. 1990, Alter et al. 1I92). Cooke and Wells (1989), Hagedorn and Schakenraad (1992). and Phelps (1994) al1 note that the key factors contributing to network formation are: economies of scale in technology development, gaining access to distribution networks and foreign markets, and the ability to solve common indusîry problems and exploit mutuai oppominities. The adoption of computer network technology has pemiitteâ the cnation of new external relationships independent of geographic barriers. The ease and relatively smd expense of communication berneen corporations across national and regionai boundaries has corne to characterize the Information Age (Go,1993; Selin, 1993; Tapscoct, 1993). The repercussions of these new alliance relationships on regionai development must be exploreci in greater depth. Coprate interdependence often hvoIves the role of government in coordinating activities and policies affecthg various levels and sizes of local firms. The government 's assumption is
that the alliances developed wiil help the firm and thus, the local econorny CO grow, but this scenario rests upon the structure of the alliance relationships that are developed (Anderson, 199 1: 25).
It is important to note that, in addition CO the successful application of IT, the skills and strategies employed by the firm manager must be emphasizeâ- The keys to success in this new tourism are constant innovation (organizationd, technical, and financial) and the use of networks and alliances among firms in order to pool resources, reduce risk, and share costs and information. thus ensurùig swvivai of the group (Poon, 1993; GM Robinson Associates, 1993). Hence, the concept of 'best' practice in tourism refers not only to the adoption of new technologies but refers also to the set of principles and ingraineci routines which guide everyday managerial prac tices. This chapter presents a history of the developrnent of the dominant tourism IT technology of the 80's and 90's - the CRS. CRS development is discussed with a focus on the economic and political environment, and organizational structures that have fostered its growth to this time. The different types of systecns including hotel CRS. regionai mervation systems, consumer on-liiire services and ticket agencies are reviewed
The average packaged tourism product consists of transportation to and hma destination, acco~~unodation,and -me destination based services and activities. The growth of international mass tourism afkr WW2 meant that the transportation segment of this product mix becarne an increasingly significant portion of the total cost of a vacation. The airline sector emerged therefore, as a principal player in the tourism industry, becoming involved in aii aspects of the industry including destination development flruitt et aï., 1991; Briüon, 1991). The US airline industry of the 1%0s and early 70s was inflexible, highiy regulated and cornpetition was restricted to the activities of a small oligopolistic gniup of airiines (Dempsey, 1990). The first CRSs developed during this tirne were 'in-house' airline information and booking systems designed to handle night schedules and limited changes to air prices. American's Sabre was the first airline CRS - developed in 1964 (Collier, 1989). At this the the sale of seats on a flight hvolved a transaction between an airline reservation agent, who would consult the interna1 CRS, and a remote travel agent. Travel agents searched through printed guides and tariff summaries for flight and fare information before telephoning the airline to detennine availability and confirm other pertinent data. (Scocozza. 1989: 10)-
The labor intensity of the travel agent's work was not to change however, until CRSs made the leap firom 'in-house' systems to remote, networked terminais. This change was ma& possible by advances in micn>-electronic technology, the advent of airline deregdation and growth in international travel (Balfet, 1993; Ritchie and Hawkins, 1993; Roach, 199 1). In the airline indusîxy, "excess capacity, barries to entry and high prices were al1 ohvious signs of a lack of competition" that led United States authonties to legislate the Airline Deregdation Act of 1978 momas, 1990: 3.). With îhe removal of barriers to entry. hundreds of new airlines appeared on the stage increasing the cange of fafes and schedules available to the public (Truitt et al, 1991). The presence of competition therefore, provided the right incentive for the expansion of the limited 'in-house' CRSs. A need to monitor and up-date changes in prices and scheduies justifieci some of the capital expenditures cequired for technical and functional enhancements to the first cesemation systems (Collier* 1989)- At the same tirne, developments in mi~o-electronicswere permitting an expansion of the traditionai role of the CRS (Sheidon, 1990)- The nature of real-time monitoring and control possible with CRS technology meant that airlines could maximke aircraft yield management from system generated statistics meEconomist, 1993). Exact flight data collecteci kom the systems daily and sometimes hourly is used to indicate peak markets, destinations, and flight times, thus enabling the airiines to practice planning flexibility by adjusting their cost smctures and schedules to fluctuations (Balfet, 1993). Further justification for CRS development however, came fiom the realization that travel agencies, with their own airline CRS tenninals, could assume many of the information distribution and hence, marketing task of the CRS-airline ownerl. Long ago, ceers decided they could not afford to pay indusq wages to reservation agents. They tmed to a commission-based system oriented towards sales performance. The next step involved compu terization of agencies to make reservations, hcketing and marketing even more efficient (Feldman, 1992a). American Airlines and United AirLines (Apollo) established CRS temiinals in rernote travel agencies as early as the late 1970's (Chervenak, 1992). Not only did such 'farming out' of functions relieve them of the cos& of providing the reservation services directly, but it is well documented that an agent utilihg a specific airtuie's terminal is more Eely 1 Distribution rcprcsents the highest cost on the balance sktbchind personnel for world airlines (CCP, July 27, 1995). 24 thus indicating the power of the CRS as a distribution tool (US Travel Weekly, 1992). By a relegating a large portion of the labor intensive activity of reservatioas to extemal travel agents, airlines could focus on value-added services for the customer in their core area of business - the flight (Feldman, 1992a; Tapscotî, 1993), and ui expanding CRS. CRS development, as with most hi& technolog-innovations, is seldom undertaken by individual firms (with the farnous exception of American Airlines) due to requirements for an abundance of capital and specialued technical expertise. in order to accomplish expansion of the CRS (both technically and operationally) therefore, collaborative ventures were required berneen the interested parties. The means employed to achieve these organizational structures were strategic alliances, horizontal mergers and diagonal integralion (Phelps, 1994; Starr 199 1; Poon, 1993). initially. strategic alliances occurred between competing firms as the airlines spread the costs of CRS development and operation (mervenak, 1992; Starr, 1991). These competing airlines cooperated through contracnial agreements as a pseudo-software conglomerate to complete the CRS design and production (Antonelli in Hepworth, 1989a; qui^ et al., 1986; Tapscott, 1993). During the operation phase of CRSs, alliances among the competing airlines a became less of a development imperative and more of a marketing strategy. The power of the CRS as a competitive tool for product disaibution meant that alliances also became an essential strategy to ensure corporate survival in au increasingly unpredictable, and diversified marketplace (Mowlana and Smith, 1990: 323; Anderson, 1990). Airluies with no CRS partnerships were forced to affZiate themselves with CRS- owning airlines in order to rernain competitive. The wider distribution links also increased potential sales volume of the non-owner airlines and permitted expansion into market niches which were otherwise unreachable (Quim et al., 1986). History has show chat many of the airlines (for example People's Express) that chose not to align themselves with a global CRS system have disappeared fiom the industry (see Quinn and Paquett, 1990). By the early 1980'~~5 major CRS dominated the North American travel industry: Sabre: Amencan AirLines- Apollo: United Airlines and other affiliates. System One: Texas Air and Eastern aithes. Gemini: Air Canada (Reservac) and Canadian Airlines (Pegasus) WorldFpan TWA, Northwest, Delta Aitfines The goal of every CRS-airlioe owner was to rnaximuc distribution possibilities and to generate revenues. To accomplish this they needed to equip travel agencies and corporations wirh large iravel accounts throughout North Ammca with one or more tenninals (Roach, 1991). American Airfines was able to secure a major portion of US travel retailers before the ondaught of cornpetitor's CRSs in the later part of the decade. Subre and Apollo accounted for 80% (41% and 39% respectively) of North Amencan travel agency CRSs in 1982 mitt et al, 1991). By 1986, 100 000 Sabre terminais had been distributeci (60 000 in travel agencies and 40 000 operated by airlines) (Collier, 1989). Travel agency adoption of these systems was enthusiastic as CRSs pnivided a reduction in the waiting time for ûight information and confirmation of bookings (see Figure 3-1). Figure 3-1: CRS Adoption by US Travei Agents Par- oî US trdagenîs ushg CRS l 1981 1983 1985 1987 1909 1991 Voir Source: Travel Weekiy, 1992: 10 1 By 1992, 96% of North America agencies were using at least one automated booking systern with over 95% of airlines seats booked through the CRSs (Travel Agency Survey. 1992; Collier, 1990). The 4% of travel agencies that did not have a CRS were likely restricted due to small size or a market niche speciahation îhat was not enhanced by CRS neouorking (Ibid). Sabre and Gemini (now Guiileo Cd)represented the majority of the 96% of Canadian travel agents subscribing to CRS with 3500 and 1600 agencies respectively (Archdale. 1992; CïP, 1995; Pelletier, 1993). CRS penetration into the European markets was led by Sobre in the mid-1980's. Until this ame, European carriers were slow to hvest in the development of the megaCRSs that characterized the American indusûy. With th incre-g drive toward the deregulation and privatization of Euopean air travel and the katof domination by US CRSs, carriers such as British Airways, Air France, and Alitaiia began in earnest to develop theu own systems during the 1980's with costs in the order of f300 million (Hitchens, 199 1; Sloane, 1990). By the early 1990's the following systems covered the European travel market- Amadeus: Air France, kria, Lufihansa, SAS. GafifeoInr: Aer Lingus, Alitalia, Austrian Airlines. British Auways. KLM. Olympic, Sabena, Swissair, TAP. and Apollo. CRS expansion into the European travel retail market has not met with as much success as in the US, with the exception of large contracts secured by Subre and Covia with Thomas Cook Travel. As of 1990, many travel agents were still reluctant to commit themselves to a particular CRS, waiting instead for one to emerge as the domhant system for Europe (Sloane, 1990). In addition. the slow swecp of deregdation in Eumpean markets means that national airlines and their proprietary CRS are still the nom for travel agency use in several countries (lbid.). The global expansion of CRS conhnued as Amehand Euopean systems moved into the Asia-Pacinc region. In cesponse to this enmachment, and in anticipation of potential CRS revenues. a number of major airiines in the region initiateci development of their own systems (Hepworth, 1989). In addition, the nationdistic desire to control the distribution of travel products in their own markets has contributeci to the pwth of regional CRSs fldtt, 199 1). B y 198 8, the following three systems emerged to dominate the Asian-Pacific area: Abacus: Cathay Pacific. Singapore Airlines, Thai Intanational, China Airlines, Malaysian Airlines. and Wilippine Airlines, Royal Brunei, Southern Cross: Australian Airlines. Fantasia: JAL. Nippon, Quantas, Air NewZealand The process of giobalization is not completed as airiines continually seek out new regions and a.ations to incicase their maritet shan of the world's travel retail outlets. Amadeus is represented in 19 European countries and 7 other foreïgn mleff wbilt Sabre hiis terminais in 64 councties worldwide and han& approximately 250 million travel arrangements a year (Collier, 1993). Worldspun has expanded into Turkey and South Afnca (FeIdman. 1992b). According to ICA0 (1992b) and McGuffie (1994), travel agents in approximately 80 countrïes use CRSs as a bookhg tool to varying degrees (see Table 3- 1). Certain regions however, such as Asia/Pacific present oppoctunities for increased penetration by major CRS or regional CRS companies. Table 3-1: Percentage of totai Travel agencies using CRS terminais in 1992 South Korea 98 Singapore 56 USA % Spain 53 1 Australia 1 91 1 Taiwan 1 50 1 France 1 86 Germany 48 Ital y 85 Malaysia 32 Japan 85 Philippines 32 Hong Kong 65 UK 23 Scandinavia 1 61 1 Greece 1 16 1 Source: Travel and Tourism Analyst, No. 2 (EIU Ltd), 1994. Links are developing between CRSs as companies stniggle to mate ever more powerful global networks of îravel information (see Figure 3-2). As of 1994, three GDSs controlled the world's share of hotel, car and airline reservations with Galileo Intenmiond caphg 28.3% foilowed by Sabre at 27.4%~~and Amadeus at 22.3% respectivety. This represents 78% of the total market share (Tourism Canada, 1994). Figure 3-2: Strategic alliances among major CRS Airline MarkeWOwns/ Ailiame/ Which Which links with Partners odshares KLM Covia, Galileo Northwest Worldspan Abacus Delta Worldspan Singapore Abacus 1Swissair Galileo Southem Cross Covia A I SAS Amadeus Continental System One Air France Amadeus Sabena Galileo American Sabre Canadian Gernini Covia, Galileo Quantas Fantasia (Sabre) Australian Southem Cross (Galiieo) L Source: Feldman, 1992; Verchère, 19%. CRS alliance formation involving Noah Amencan companies is subject to approval by the Department of Transport in the US or the Federal Cornpetition Tribunal in Canada (Ibid, ICA0 Journal, 1992). Nevertheles certain alliance shifts can cause rifts and cries of wifair behavior (Green, 1990). A Canadian case illustrates this issue. Canadian Airlines had severed ties with Air Canada and the Gemini CRS in order to establish an alliance with American Airlines. (AA) for a desperately needed infusion of $246 niillion in cash (McIntosh. 1993; Canadian Ress, 1993). In order to receive the cash, Canadian had to relinquish its ties with the Canadian CRS, Gemini. and join AA's Sabre. When the alliance between Canadian and AA was completed in March of 1994 it became evident that Gemini would not have the essential critical mass necessary to be attractive to Canadian travel agents and that more would opt for sabre' (Steinhar& 1993, p. 823). Air Canada has since given con001 of its CRS inventory to Galileo ~d.the new national division of Gdileo Ikernafionai and a major cornpetitor of Sabre. The shift in Canadian market share according to Gdileo representatives has been "slight', and apparently the Canadian CRS is recovering the approximately 400 agencies lost as a result of the transition flourism Canada, 1994; GaCileo personal interview, 1994). As of June 1995, Guiileo Canada was servicing close to 60% of travel agency locations in Canada (W, June 29, 1995). Worlakpun, hoping to capitalize on the confusion of the Canadian CRS scene is a recent entry and so far their total share of the travel retail market has not been assessed. Not only has CRS expanded spatiaüy, but also across secton of the mvel indusw. Networking capabilities made possible by advances in micro-electronics were able to accommodate the integration of hotels and car rental agencies into the airline reservation database. WIZCOM and THZSCO are examples of 'switches' which provide direct (or fax-lin@ access frorn the CRS terminal to many different discrete systems and databases (Lindsay, 1992)- An airline-CRS is engaging in 'electronic franchising' when it sells access to its 2 In 1995, Sabre Canada currently had 90 employces and scrviced mort than 1900 agcncics through more than 6600 computer terminais, representing about Q0% of the Canadian market- Sabre Inre1114nonuf houses its central database in Tulsa, Oklahoma and is a leader intcniationally with more than 27 000 subscribcrs in 70 countnes, (CTP,Jan 26. 1995). 3 Galileo CAis one of 46 National Distribution Companies which are ficenscd by Gaiiieo Intcnrational to market the Apollo system. AU telecommunications for Galilw Canada arc handled by the IBM subsidiary Advantis - a Company dedicated to information technology with its own communication network based in Winnipeg. 29 darabase services to hotels, car rentai agencies, and other enterprises (Antonelli in Hepworth, 1989a). A fee is charged for every reservation ma& through their system. This increase in revenues fkorn non-core sources is extremely important for the airline indusüy which has been subject to tremendous financial losses and slow recovery over the 1st few years. Between 1989 and 1993, US airlines lost more than $10 billion in revenue (Air Transport World 1993). By 1985, Amencan Auiine's Sabre profit margin was 40% with a cash conmbution to AA of $90million between 1976-86 (OECDObserver, 1988; Wheeler, 1987, The Economist, 1993). in 1992, Sabre accounted for about 85% of AA's eaniings leading to the now famous statement by AA's chef executive Robert CrandaIl that he would sel1 the airline before he would seU the CRS division (TheEconomist, 1993). The success of these systems has also produced a need to monitor the anti-cornpetitive behaviour of CRS owners. This bas tesulted in the regdation of display bias. Display bias is the "practice of giving the host airline's flights a superior position" when other flights meet the sarne selection criteria (Truitt, 1991: 27). Travel agents reserve 75-80% of al1 flights fiom the btdisplay screen on the terminal, and 50% fkom the 6rst line of this screen (Ibid; Sloane, 1990). The cornpetitive advantage of a first screen, first line display is obvious and a major point of contention for the non-owner CRS airlines. Such noncornpetitive practices led to the regulation of CRS activity by the Department of Transport (the CAB replacement following deregdation) in the US in 1984, the European Civil Aviation Commission (ECAC) in L990. and the Transport Department's Domestic Air Poiicy division in Canada which cornpleted a review for the introduction of new CRS rules in May 1995. While many of the more obvious forms of display bias have since been eluninated, even ICAO concedes bat 'Tt is likely there will always remain a residual core of advantage for these (owner) carriers" (ICAO, 1992b: 12). One of their primary recommendations to alleviate the persistence of central control of CRS information is to increase the number of owners of the systems as much as possible (clause c, p.12). Until this happens however, and in light of the Agency's lirnited enforcement power. participant non-owner airiines will continue to be hstrated by their dependence on CRSs that may not be giving them a fair oppocninity. 3.3 Hotel CRS The imperatives for development of CRS in the hotel sector were similar to those facing the airline industxy (h4cGuffie. 1994: Nelson, 1992. Pohlmann. 1994). With the recession of the early 1980's, profits were dwindling and the need to improve efnciency in the hotel property became paramount for rnany managem. Most ïI' applications permitted better management through centraihd control of the property's cesources and the use of sophisticated customer databases irnproved management's marketing efforts (Archdale. 1992b). The core of hotel CRSs is the PMS (proprty management system). a storehouse of custorner preferences, corporate accounts and contacts as well as data on room rates and availabiiicy at a aven moment A PMS enables yield management by the hnt desk and management staff (McGuffie. 1994). By replacing the manual method of rrxrvations and sales with one based on ïï, the ability to optimize rates with fluctuations in demand Ied to the rapid acceptance of PMS-CRS in the hotel sector in the 1980's (see Table 3-2). Table 3- 2: Percentage of hotcb with cornputeriPd reservation systems, l988 [ Al1 hotels 1 Afiîca and 1 Asia and 1 North 1 Europe 1 Latin American I 1 Middle East Australasia America Caribbean 72.3 37.5 64.4 79.1 88.0 - 56.4 Source: McGuffie, 1990b Hotels that are membm of a large chah may have iheir individual PMS intefiaceci with a centralized reservation office (CRO)controileû by the chain's head office. ~otel-chains desire centralized conml of aii their properties* room and rate inventories to pen nit easy access by the mvel retail sector through a comrnon 1-800 telephone number. The strength of IT for hotels therefore, Lies in its ability to execute apparently 'invisible transactions* (Tremblay. 1990). Needless to Say. the costs inhecent in the development of a hotel CRS are high. For this reason. not al1 chahs or independent properties desirou of CRS develop their own systems preferring instead to align themselves with a hotel consortium or hotel gcoip representative (Table 3-3). Table 3-3: World's West Volmîary Hotel Consortia, 1995. Company 1 ROO~IIS 1 ~otdr 1Head Omce Utell International 6 500 UK JAL World Hotels 378 Japan Lexington Services Corp. 1 200 USA Supranational Hotels 650 UK Anasazi Travel Resources Inc. 5 14 USA ViP international Corp. 971 CAN Keytel S.A 700 Spain Leading Hotels of the World 300 USA Logis de France 4 050 France Source: Shundick, 1996: 72 This form of networking among hotel properties serves to provide the economies of scaie required in the development of sophisticated reservation systems. For a fee @er transaction or fixed) the participa~ghotels Iist their property's selling points and roorn rate inventories in the cenaalized computer systexn for the coasortium's mervation agents to seii (McGuffie, 1994). The travel retaii sector (and customers) access the consortium via a 1-800 number thus streamlining the search path for the appropriate hotel. When the reservation originates fTom a travel agent. the consortium pmcesses a commission for paywnt by the property- Consortiums and hotel pup repcesentatives distinguish themselves in the type of pro- they promote (Leading Hotels of the World caters to efite hotels for example), the region to which they market (Accoxnmodations Toronto caters to the Metropolitan Toronto hotel group). or additional services they oEer the property such as marketing assistance (Uteii Comect is an advisory program designed to help hotels maximize CRS use - McGuffie, 1994). They offer their subscribhg pmperties a mnge of comection possibilities fkom direct on-?ine (PMS to CRO), to fax confirmation, to telephone confirmation. depending on the budget and needs of the property. The Uteli consortium, one of the largest in the world, brings together 6500 subscribing hotels in 160 countries worldwide, processing over 2.8 million reservations a year fkom 44 international offices (Shundich. 19%; McGufEe, 1990b; 1994; CïP* March 25, 1995). Best Western International. a groupïng of 340independent properties in 38 counoies handles approximately 9 donmemations a year (The OECD Observer, 1988; McGuffie, 1990b). The ultimate objective of any hotel CRS, whether chain-orienteci or consortium, is to make the properties accessibIe to as wide a market as possible. For this ceason, Linkage with airline GDSs is vital. For large hotel chauis and consortiums with access to capital resources, deveiopment of a private network interface to the airlines GDS is feasible. Utell, for example, is connected to 20 different airlines CRSs. These co~ecaons,however, are often cumbersorne and difficult to change (Tapscott, 1993). For the vast majority of properties, thetefore, connection with the global airline GDSs is made possible by the 'switches' mentioned earlier. ïHISC0 (The Hotel hdustry Switch Company) is one example of a unifi:ed interface linking about 20 major hotel chah CRO's in the USA to aii -the different airline GDSs (McGuffie, 1994; Lindsay, 1992; Archdale, 1992b; see Figure 3-3). In 1993, THISCO processed approximately 16.5 miiiion hotel reservations for its linked hotels (McGuffie, 1994). in addition, WIZCOM, owned by Avis, is the switching interface between Amadeus, Sabre, Galileo and approximately 35 different hotel groups (Tourism Canada, 1994). Figure 3-3: The CRS distribution system Source: Pohlmann, 1994, Chervenak, 1992; Lindsay 1992 33 Regiod Resewatiaa Systeins Destination databases and regional integrated computer information reservation management systems (RICiRMS) are just two of the growing numkr of tem used to refer to the systems through which potential tourists get crave1 reiated idonnation on a specific destination, with the additional convenience of reservations (Buhalis, 1993, 1995; CTC, 1995; Archdale, l 992; Vli tos-Rowe, 1992). A destination database is the simplest regional reservation system providing an information-only service to inquirrs on a particular destination's travel data. This information often includes acco~nmodation,cransportation, tours, ataactions, restaurants, parkdmuseums. public transport, environmental information and Iegal idormation (J'ourism Cana& 1994). The more sophisticated systems, such as the RiCIRMS. offer the customers the ability to reserve at the time of inquiry in ceal tiw and contain a customer database used by the system owners for marketing of the destination. For simplicity. 1 =fer to this type of system as the Regional Reservation System (RRS) - incorporating both the geographical and reservation dimensions of the technology. The primary sponsors of RRS development are oftcn RTO's (Regional Towism Offices) or NTO's (Nationai Tourism Offlces) with the additionai hanciai and/or technical support of the private sector (Tremblay, 1990, Archdale, 1992b). The RRS is expeaed to: provicie complete and up to date information on a partïcular destination... (and) ensure that smaller establishments, as opposed to intemationai hotel chains, and other land services are included. (VLitos-Rowe, 1992: 86). It is in this las< principle that RRSs se~cea niche often neglected by the larger international GDS and Hotel CRS (Table 34). The standardization and high transaction volumes required for the operation of the GDS mtricts their representation of srna11 independent and 'unique' travel products and suppliers. The RRS. with an emphasis on regions and the heterogeneous tourism products, seeks to fili this neglected niche4. 4 A study by PATA (Pacifie-Asia Torirism Association) in 1992 revealed that more than 200 RRS systenis around the world have ken developed with varying degrecs of success. 34 Table 34: Dominant characteristics of pducts Usted on GDSs and RRSs Global Distribution System Regionai Reservath System Chain companies Independent companies Large companies Smaii and medium sized companies Ho mogenous products Heterogeneous proâucts Leisure travel products Business travel products - - 1 High pnce products 1 Law price products 1 [ International market 1 Domestic market 1 Products that are booked in advance Roducts that are booked at the of use Products with cross-border payrnent Roducts that do not necessarily have cross procedures (BSP, ARC) border payment procedures L -- 1 Standard travd 1 Customizedolvel 1 1 Travel with an air component 1 Independent travel by automobile 1 Source: Sheldon, 1993 Not only does RRS development provide a complete overview of a destination's travel products but it also leads to the creation of a sophisticated customer daiabase. - With the centralize control/monitoring of the region's tourism products in databases, public inquiries are quickly processeci, increasing customer service satisfaction and allowing for a more efficient sale of the territory (Tremblay, 1990; Archdale, 1992b; Buhalis, 1993). With the development of a sophisticated customer database, direct marketing campaigas for desired market segments are possible. The development of RRSs is a defensive strategy as well (Tremblay, 1990). The potential for global GDS to influence patterns of international travel is increasingly recognized by researchers and NTO's (CoUier, 1989, Milne, 1995; Archdale, 1992b). Scholarly research in tourism has shown chat the provision of information to tourist. affects bot. their destination choice, their satisfaction whife there and their repeat visitation, so the (RRS) can be a powerful travel marketing and satisfaction tool (CTC, 1995: 5)- RRS development provides an additional distribution channel for travel products which, for a variety of reasons, may not appear in the global GDS. Buhalis (1993: 373) offers perhaps the most comprehensive listing of the reasons for RRS failure, including: incornpiete cepresentation of tourism suppiiers at the destination; incomprehensible presentation of faciiities one&; inaccurate pricing and inventory of tourism products; lack of finance for development and operation; fdure of tourkm pduct interest; lirnited training; inappropriate technology; and conf2ict with dorninant interests. The most formidable of these chalIenges is often limited fkancing (Sheldon, 1993; Buhalis, 1993; Archdale, 1992). The financial constraints for many developing countcies may be overcome with funding fiom internationai organizations such as the Worid Tourism Organization, andlor the participation of private interests. An increasing trend is for NTOs to solicit contributions from the private sector in order to finance the RRS devetopment. Such private involvement may however, place pressure on the NTOs to alter the mandates of the systems to suit privace industries' own, more profit-oriented objectives. Likewise, NT0 support rnay be restricted to the design and developrnent stage of RRSs with increasing pressure to privatize or raise the Ievel of commercialization for the operationai phase (Archdaie, 1992b). 3.4 Ticketing Agencies Ticketing agencies ci)have existed for decades as intermediaries in the sale of tickets and passes to sport and entertainment events. The exploitation of powerful information technologies in the last decade has however, increased the Tisrole in the marketing and distribution of a broader range of products and merchandise. In addition to football ackets, a tourist (or local leisure participant) can now purchase passes to a museum, book a hotel room, and even buy the CD to accornpany the tickets to a musical theatre production. The addition of a number of hotel properties and tourist attractions in recent years has transformeci the ticket agency of old into a 'new tourism distribution channel'. Indeed, Ticket Master, for example, now seils airline tickets (New York Times, Match 31, 19%: p.3.x~).The Ti's ability to cater to the sale of more and more packages increases its appeai to attractions developing horizontal alliances- Unlike the other CRSs discussed however, this channel is accessible to and designeci prirnarily for the general public. The TiA enjoys a high &gree of recognition fkom the pubiic. Through aggressive promotion of their 1-800# access, Ticket Master, located throughout North Amenca, is easily identified and accepted by consumers. This accessibility is fostered by the placement of Ti ticket booth outlets in major mails and at some hotel front desks. Tiare also experimenting with ATM (automated teller machine) dispenses for ticket purchase (TicketKing Inte~ew, 2994). In some cases, international exposure is possible by connecting TiAs to the GDSs. Ticket Mater, for example, provides fiirther connection for its subscribing travel products to 36 the Sabre GDS for travel agency bookîngs. This degree of co~ectionis rare for attractions however and is usually reserved for certain products ody. TiAs have the human and technical infiastructure in place to handle the large nwnber of inquiries that accompany successful tourism products, Traiwd operators produce high sales conversion rates in the order of approximately 33% for Ticket Mater and 40% for Ticket King (TicketMaster and TicketKing interviews, 1994). For tourism products with high anhcipated sdes volumes, an exclusive 1-80011 on the Ti is assigned on a 24 hour basis. Connection costs are negotiated with the client and are dependent on ticket price and anticipated sales volumes. The majority of the cost is incurred by the customer in the range of $5.00 per ticket The travel products may pay additional cos& to the TiA for additionai speciaiized services. One medium sized perfomhg arts venue, for example, staffs its exhibition hall ticket booths wi th Ticket Masrer personnel. In addition to the sales service offered by Ti,advances in database management enable consumer profile development bm every ticket sol& These market data are then available to the travel products in the fonn of market reports or raw data (downloaded to the travel product's own database storage). In the hands of tourism product managers, this client information may be used for niche marketing, product Merentiation, and revision of cornpetitive strategies (Ibid.). 35 On-line subscription services ...once again the travel industry is at the forefront of the information technology revolution by coming to temis with new developments such as on- tine services and the IntemeL ... Emerging distzibution channels wiU allow travel suppliers to extend their systems deeper into the marketplace to interact directly with the travel consumer. (Dunbar, 1996: 12). Advances in telecommunications and computer technology spawned the creation of not only private (proprietary) but also public access information networks as well. With the pwth in personal computer usage over the last decade, recognition of 'public' information networks as potential dismbution channels for tourism and other consumer products is gaining momentum (Balaset al., 1994). Al1 that is required for the potential consumer - an individual or corporation - to 'surf' the public netwotks and access speciaiized datab- is a PC, modem, telephone Line, and interactive software provided by on-line service companies. The on-LLw se~cecompanies. such as Prodigy and Arneriço On-LU>L for Cànada (AOL)(which just bought Compderwe). act as the interrnediaiy beoueen the consumer and the many commercial and NTO-based travel databases and reservation systems now ap-g throughout the network. Such access was. in the pas& possible only through the pmprietary networks controlled by the airlines for mvel agency and tourism industry personnel use (Pelletier, 1993). The latest development to affect on-he provision of travel products is in the growth of the World Wide Web (WWW)in the Intemet The Internet is the largest and fastest growing public network with approximately 10 O0 individual networks and 15 million users around the globe (Ibid). 'Webs' are merely specialized corporate networks accessible via the Internet Many international CRSs such as Subre, and Apollo, as well as a nurnber of hotel consortiums and other tourism suppliers have established World Wide Web sites or are "in die process of doing so. Few of these entrants however, offer any kind of booking capability as yet" (Dunbar. 1996: 12). One web site example is 'Destination Gateway'. a prototype web that offers advertising space to a varieey of mvel products and seNices. Considemi another example of 'one stop shopping*, 'Destination Gateway' developers have arnbitious pl= for the Web site's growth into a travel shopping mal1 for browsing hmanywhere in the world (Williams, 1995 at the Travel and Technology Conference and Trade Show. March 22). Likewise. the powerhouse of cperating plaaorms, Microsoft, has developed a web site for the Intemet called 'Erpedia' launched in 1996. Growth in subscription to these on-line service providers has increased considerably over the last several years, growing at a rate of 25% per year (Balas et al. 1994; see Figure 3-4). Among the variety of travel-type services now appearing, EarsySabre for consumers and Commercial Sabre for corporate use is availabk through 12 on-line service providers, including CornpuServe and Prodigy (Arnaut, 1994). With a credit card payment and confirmation number. the traveler's tickets are delivered, Ma travel agent, to the ;tirport or directly to the consumer's home. Or in the case of ticketless aavel, the consumer is provided with a confkmation number to be presented during check-in at the airport boarding ciest What maices these versions of on-line Sabre distinct hmthe professional crave1 agency version is the menu- drive* user-fnendly graphic interface. Use of these netwotks for actuai reservations is limiteci, however: EàssySabre for instance, generates only 1-2% of Sabre revenues. Commercial Sabre 596, cornpared to Professional Sabre for travel agents wtiich suppiies the buUc or 93% of Sa6re9srevenues (Balas et al, 1994). In 1995, 2 million subscribers were using EarsySabre as a booking and information tool. With hprovements in the user interfaces and the general trend towards more Internet subscribers, this ligure is expected to chb(Dunbar* 19%). Source: Balas et al., 1994: 5 Even hotel CRSs are appearing in the on-line networks. For example, CompuServe offers its subscribers access to the 'Complete Guide to Bed and Breakf'asts, Lnns, and Guest Houses in the USA and Canada* informacion service (1994 Business Travel News). This guide provides access to idonnation on more than 10 000 establishments categorized by name, location, or more than 20 special interest key words (Md.). Likewise, Prodigy has an h directory providing access to 500 h fkom the USA. An example of a cornputer based interactive information system that is successfully generatïng reservations for its tourïsm suppiiers is Minitel in France. In 1990, no fewer than 350 different travel information services were available on this public system, 150 of which had reservation capability (Guyornard, 1994, Tremblay, 1990). Minitel represents the second greatest source of resewations foiiowing travel agents and the third highest source of travel information in France (Vlitos-Rowe, 1992)- The apparent key to success for Minitel is the increased convenience (aii homes in Fiance were equipped with a Minitel system as it replaced the paper phone book) and flexibility for consumers (Pelletier, 1993). in the hopes of duplicating Minitel's success in France. Bell Canada launched a similar interactive information service called 'Alex' in December of 1988. Offering a variety of services, it failed to attract much user-business and was finally pulled off the market in lune of 1994. The apparent cause of Aiex's downfdi was the cost; users were required to pay $7.95 CAN per month plus per minute charges for services consumers felt they could - and should - obtain for fke (Balas et al, 1994)- While the on-line travel services are popuiar for browsing and as an information source. research suggests that when it coms down to actuaily booking a travel producq be it airline or hotel, the conversion hminquiry to sale is low (Balas et al. 1994); WorIaSpan TravelShoppr for example couverts only one in seven inquines of its on-line database (Arnaut, 1994). Major causes of the low conversion hminformation inquiry to actual booking are: difficulty navigating the Intemet, lack of confidence in the user's abiiity to exploit the technology, a mistrust in the accuracy of travel information. such as rates. pnsented, and security (Ibid; Dunbar, 1996). As one fiequent traveler claims. If it (the tlight) gets complicated with multiple legs on a trip. there's nothing like talking to somebody to make sure you're uot left holding the bag at sorne airport, halfway around the world (Arnaut, 1994). in addition, there is much ambiguity as to whether or not these Web sites are required to comply with bis display des. This is an ana where regulation and structure are still in While the airline sector and GDS have been the subject of a growing number of CRS development and impact snidies (Feldman 1992; CoUier 1993; McGuffie 1994). alternative CRS systems, travel products and the destinations that rely on them conrinue to be ornined hm such discussions. For this reason, the focus of the empirical research and ensuing discussions in this thesis is on two neglected components: ûavel products (hotels and attractiom). and urban destinations (Montreai and Toronto). nie following chapter lays the foundation for this study. briefly describing the cfonomic and tourism environmentg of Montrai and Toronto, and the methods used for &ta collection and anaiysis. CHAPTER FOUR RESEARCH CONTEXT AND METHODS This chapter establishes the context and methods for an inquiry hto CRS use by specific players of the Canadian tourism industry. The chapter begins with a bcief historical overview of Monnéal and Toronto's economic developrnent, followed by a summary of their respective tourism industries. Parfïcular attention is given to the destination's character and indicators of tourism economic performance. 1 then discuss the rnethods used to gather information fiom the hotei and attraction sectors of each city. 1 review key issues relating to sample design, data collection and analysis. I also reflect on some of problems and constraints encountered during the study. 4.1 Montréai and Toronto Montreal and Toronto dominate the economies of their respective provinces and arguably, the rest of Canada as weil. In spite of this influence as 'national' cities, the two me tropo lises have striking ciifferences with respect to culture, history, tourism attributes, attractions and policies (Robinson, 1989). Established in 1535, Montréal began as a fur trading post and gateway to the West, first for the lucrative fur routes and later, for agricultural settlement. As the surounding St- Lawrence lowlands were settled by early French and British immigrants, several factors contributed to Montréal's urban, commercial and indusmai development: proximity to the local markets, access to transportation and communications, availability of a cheap and skilled labor pool, an abundance of raw materials, inexpensive land and real estate, and a supply of cheap energy (Higgins, 1986; McCann, 1991). The htindustries established focused on textiles, leather goods, clothing, wood and paper products. The bustling outpost soon developed into Canada's leading commercial, industrial, financial and cultural city , a status it maintained until the eady 1970's. Toronto, founded in 1793, Likewise began as a trading pst for French and afterwards British agriculnval settlers. The city's commercial status would begin to change in the rnid 1800s with the establishment of an extensive raii network throughout southern Ontario (Robinson, 1989). Several factors led to the eventual replacement of Montréal as Canada's leading financial and rnanufacturing center by Toronto in the latîer half of this century. The opening a of the St. Lawrence Seaway in 1959 through to Toronto removed any strategic advantage Montréal held as a port city (Marshail, 1989). At the same time, as the importance of domestic and Amencan markets grew in relation to European, the appeal of Toronto (and the Ontario industrial heartland) as a location for invesmient and a source of products increased significantly. For example, American automotive assembly bcanch plants sprang up in cities throughout the Great Lakes to serve the large Oneo market and avoid Canadian import tariffs (Robinson, 1989). With greater prospects for employment and economic prosperity, Toronto and its suburbs were on the receiving end of a large influx of immigrants and emigrants (Ibid.). In 196 1, Toronto had a population of 1 824 48 1 compared to Montréal's 2 109 509. By 1994 however, Toronto had grown to over 4 100 000 while Montréal's population stood at 3 300 000 (Metropolitan Toronto Business and Market Guide, 1994). Toronto and its neighboring industrial cities had developed a diverse manufacturing base able to withstand economic fluctuations with more resilience than Montréal's more restricted industrial base (Filion, 199 1). Between 1971 and 1986,70 000 manufacturing jobs were lost in Montr6al (36% of its industrial base) illustrating the city's vulnerability to "a new international division of labor ... taking hold at this time which shifted a portion of rnanufacturing production to countries with low cost workers" (Pohimam, 1994). Total employment in Toronto, as of 1992, was 298 greater than in Montréal (Metropolitan Toronto Business and Market Guide, 1994). In 1951, Montréal was home to 124 head offices while Toronto hosted 100. By 1972, however, oniy 62 Montrdal head offices remaineci (Leveille and Whellan, 1990) and in 1992, Toronto had attracted the headquarters of over 90% of foreign banks, advertising agencies, and public accountants in Canada (Metropolitan Toronto Business and Market Guide, L994). The relationship between the election of the Parti Québecois to power in 1976 and Montréal's loss of economic significance in the Canadian economy is not absolute, though the political and economic instability of the period may have ken a contributing factor (levine, 1989). The demise of Montrdal's economic status vis-à-vis Toronto in Canada did not weaken its first rank status within the province of Québec with the city king responsible for more than 50% of the province's economic activity (Higgins, 1986). With a dwindling manufacturing sector, local business leaders were beginning to recognize the potential of a yczzg and growing service industry, including toucism, for renewed prospenty: extensive redevelopment helped convert downtown Montréal into the hub of a regional, largely French-speaking service-based economy and into a grow ing center of international1y-onented econornic activity (Levine. 1989: 143. ; italics added). 4.1.1 The Role of Tourism in Montréal One of the remnants of Montréal's colonial beginnings is that it enjoys a reputation as an exciting European-style city. As Kotler et al (1993: 129) note: "Paris and Montréal are internationally well known destinations and attract visitors with Little promotion". A study by Tourisme Quebec in 1992 ranks Mon& second among cities in North Amenca that American tourists would like to visitc Montréal's success as a tourism destination began early and according to Jean Rinfret, Resident of the Greater Montréal Tourism and Convention Bureau (OCTGM) in 1962, was attributable to thethings: trois principaux facteurs ont occassiom6 ce suc& l'avenement de l'automobile comme nouveau moyen &onornique de transport, de même que Ies courtes distances entre les Etats americains du nord-est et nos principaux centres; l'absence de concurrence des autres pays; et nnalexnent, le fait que la prohibition existait aux Etats Unis, alors que nos lois des liqueurs offraient I'advantage de mieux satisfait les besoins du public voyageur (in Lusignan, L 993:9). Within decades of this initial success, however, Montréal would be facing increased cornpetition from other North Amencan urban destinations. It could no longer count on Amencan prohibition to attract tourists! Québec established a formal tourism 'information' infr;istnicture in 1965 with the creation of Tourisme Quebec 0.TQ divided the province into 18 tourist regions, each serviced by an ATR or Association Touristique Regionales (OCTGM,1990). Montréal is one of these deiineated regions. Tourïsm is a major player in the provincial economy. Qudbec maintained just under 0.5% of the wocld travel market and received approximately $2.3 billion in constant tourism dollars per year for over ten years (OCI'GM, 1990; Canada-Québec Subsidiary Agreement, 1992). The indusay repcesents 2.15% of the province's GDP and ranks 6th in importance as a source of foreign currency. In 1994. Quebec had 20 000 enterprises involved in tourism, and upwards of 100 000 tourism employees or 3.1% of the province's totai (Statistiques Touristique Québec, 1994). Montréal captured 34.4% of Québec's tourism revenue in 1994, attracting 4.9 million tourists (see Figure 4- 1) and $1.239 billion in tourist receipts (ibid). Concentrated efforts to develop Montréal's tourism industry began in the 1960's as a result of the ciry's increasingly poor performance in manufacturing. Simply put, Montréal needed to enhance its international image as a potential tourism destination. In 1967, Montréal hosted the International Exhibition (Expo '67) and in 1976, the Olympics. These mega-events were the result of collaborative efforts hmTourïsm Canada, Tourisme Québec, the City of Montreal, the OCîGM and the Palais des Congrès which were responsible for various aspects of the development, marketing and sale of Montrdal's tourism products during this rime (Pobima~,1994). Each of these mega-events left behind not only unique and world class attractions, sporting venues, architectural facilities and a well developed transport infiastructure (the Meuo), but also a lasting impression around the world of Montréal's 'Joie de vivre'. As the second largest French speaking city in the world, a centre for fine French and international cuisine, a home to symphony concerts, opera and the ballet, and many art galleries and museums, as well as the host to a variety of international film and music festivals, Montréal's tourism image and industry is now well positioned to take advantage of this increased interest in large city tourism (OCïGM, 1992, Higgins, 1986). Montr6al's tourism 'districts* are concentrated into four areas of the city: the histonc Old Montréal, Downtown, Parc des Iies, and the recreational Olympic Parc area The convention facilities are concentrated in the downtown core with 8000 hotel rooms available within a few minutes of the Palais des Congrès. The target markets for the city's attractions and convention services are, in order of importance, Québec, Ontario, and the United States (particularly the north-east states)- The primary European market is France, followed by the UK, Gennany and Italy (see Figure 4-1). Figue 4-1: Geogmphic origin of visitors to Montréal '1 geognphlc odgin. t Source: Le Quebéc Touristique, 1994: 8. Montréal accounts for over 20% of hotel rooms in Québec and has shown steady growth in the number of hotels since 1988 despite stagnant occupancy rates. The hotel (and restaurant) sector generated 42.2% of tourism revenue in 1994 and accounts for over 60% of al1 tourism employees (OCTGM 1992; Le Québec Touristique, 1994). Montréal attractions generated $344.6 million in 1994 or 7.2% of the total tourism revenue and more than 9% of the tourkm work force (Le Québec Touristique, 1994). 4.1.2 The role of tourism in Toronto Development of Ontario's tourism industry, as in Que'bec, was the result of a number of joint initiatives among government and private organizations. COTDA, the CanadaDntario Tourism DeveIopment Agreement, similar to the Québec-Canada arrangement, injected a total of $325 Mitlion for industry development over the period 1984- 1989 (Ontario Tourism and Recreation, 1991). As a destination in its own right, Ontario's tourism industry is the 4th largest export after the automotive, machinery, and wwd product industries and generates 3.1% of the provincial GDP. The accommodarion sector contributes approximately 77 826 jobs for the province, and 15 807 full and part time employees, and $1.142 billion for the city of Toronto (Ibid., HAMT, 1994). The attractionlrecreation sector empioys 6 1 1 18 province wide. Figure 4-2: Geographic origin of visitors to Ontario Vidtom ta Ontario betwomn 1981 and 1991 by Source: Tourism Ontario, 1994: 28-3 1 Toronto's entrance into the international tourism market began later than Montréal's but major changes have cteated a new face and image of the destination now refened to as "North Amerka's newest great city" receiving over 20.9 million visitors annuaily, nearly four times the number of visiter's to Montréal (Ross, 1987~20;MWA, 1992). Since World War II, the settlement of large numbers of immigrants in distinct areas of the city has created a patchwork of ethnic communities - visitors cm venture into Italian, Portuguese, West Indian, Chinese, Jewisti, and other communities to enjoy the cuisine and culture of these diverse groups- These communities draw a variety of tourists including the significant 'friends and relatives' segment which comprises nearly 40% of al1 visitors (Ontario Tourism, 1995). In 1972, Toronto and its suburbs elected reform councils with the mandate to preserve the neighborhoods hmuncontroUable uiban sprawl. The result of these 'refomis' is a preservation of vast amounts of green space replete with ravines, forests and streams within easy access from the city's downtown core. Likewise. extensive urban redevelopment programs have created tourïst and resident zones dong the waterhont that include pedestrïan trails. and shopping districts. that complement existing exhibition and theme parks. Perhaps of greatest repute however is the development of an internationaiiy renowned theatre industry that challenges the status of New York and London (ISTC 1992, Swardson 1993, MCTVA 1993). Stage productions have a quality, depth and range that cannot be matched elsewhere in the country, or in the USA (with the obvious exception of New York) (Cockwell and Milne; 1995:l). Wmarily a result of the efforts of Garth Drabinsky and Ed Mirvish, two major theatre production companies have succeeded in drawing tourists fiom around the world to enjoy major musical spectacles. The many srnall theatres have also benefited, capitalking on the presence of theatre go-ers in the city in 1992. the city drew over 3 miilion theatre tourists who purchased over $16 million worth of tickets from over 45 venues and 120 production companies (Beaver 1992). The result of this theatncal participation is a net econornic impact of $1 J billion for Ontario (Ibid; CTP. March 199S).In addition to theatre. Toronto is also home to renowned attractions. and major league sporting events in baseball, basketball, hockey and car racing. 4.2 Methods The research conducted for this study was carried out from May of 1994 to May of 1995. In total 78 tourism specialists, ranging from authorities at Tourism Canada to hotel and attraction managers, provided information (see Table 4-1). AU of the research data were obtained by persona1 interview with the exception of the hotel sector in which 1 used a combination of personal interviews and a postal questionnaire. In March of 1995.1 attended the Baxter Travel Group's Annual Travel and Technology Conference in Toronto. This conference was extremely helpful in bnnging to my attention a Canadian perspective on the latest CRS trends. problems, and future objectives of CRS users (prirnarily travel agents) and CRS owners. Table 4-1: Tourism speciolists contacted for research, May 1994 to May 1995. Subject Montréal Toronto . Canada 1 Totals Tourism authorities 2 3 2 7 CRS firms 1 2 3 6 Hoteb 15 21 - 36 Attractions 8 16 - 24 Other 2 3 - 5 TOMS 28 45 5 1 78 The tourism authorities contacted were federal and regional specialists fiom Tourism Canada, Tourism Quebec and Tourism Ontario, and tecbnology specialists in the tourism field. The objective of these interviews was to establish the key issues relating to CRS use and IT difision in the tourïsm industry. I also wished to acquire insight into the future direction in tourism planning. The CRS fms contacted included the GDSs of Sabre Canada and Galileo Cm&, the regional reservation systems of C.R.I.S. and 'Accommodations Toronto' in Ontario and 'Reservations Qudbec' in Montréal (conducted prior to its closing in November of 1993). and two ticket admission outlets, 'Ticket King' and 'Ticket Master'. The ticket admission outlet in Québec, 'Admissions', did not respond to repeated requests for interview. The 'other' category included some exploratory interviews on CRS use fkom the transport sector (rail, car and air), the restaurant sector, and the Ontarïo/Québec Association of Canadian Travel Agents (ACTA). These interviews were conducted to shed light on the particular perspectives of each group with respect to the role and success of CRS technology in their sectors. The hotel and attraction sectors were chosen as the sectoral focus of this thesis for a variety of reasons. Hotels are at the core of the urban tourism product employing large numbers of semi-skilled and unskilled workers, acting as the focus of a guest's visit, and playing an important role in adding character to urban cores. They are an important component of the cultural capital that is so vital to urban areas (Zukin 1995; Ont. Min 1994). Attractions are a heterogeneous mix of faciiities and entertainment venues that succeed in either drawing visitors from afar to a destination or enticing them to stay once they arrive. They usually include landscapes to observe, activities to participate in, and experiences to remember (Lew, 1987). They are, therefore, essential ingredients to the total tourïsm product. In order to develop a sample for the hotel sectoa in both cities, membership listings from the Montréal Convention and Visitor bureau (OCTGM) and the Hotel Association of Metropolitan Toronto were consulted. In total. the greater metropolitan area of Montréal (CUM) has 53 hotels. The HAMT membership includes 120 hotels located within Metropolitan Toronto. neighboring Brampton, Mississauga, Markham, Pickering, Richmond Hill, and Vaughan. A majority of the participating hotels for the Toronto case were fiom the metropolitan core. From the population, 28% of downtown Montréal hotels provided information as did 17.5% of Toronto hotels. The research sample was not designed to achieve statistical relevance. Sheskin (1985: x) suggests that when doing case snidies, "in depth snidies of a limited number of projects may suffice" so, while this sample does not presume to be representative of the entire group. it is sufficiently large to suggest trends and identify key issues with respect to CRS in the tourism industry. The attraction sector is a far more heterogeneous group of enterprises than hotels. For the purpose of this study attractions were clustered into the following categories: the perfonning arts (theater, opera), entertainment and educational venues (sports, casinos, museums). 0 1and site attractions (historical properties, landmarks), and - excursions and tours (boat). These groupings are not designed to be an exhaustive representation of the vaxïety of attractions that enace potential tourists to a destination. Rather, the selection was designed to give a good overview of the range of experiences digerent type of attractions have with CRS technology but not to be definitive in these relationships. Sample selection of attractions was restricted to those fimis that charged tourists an admission price. Many attractions that provide free admission do not need the display and monitoring of inventory (whether seats or tickets) that is the essence of a computer reservation system (Archdale, 1992a). Sample deveiopment therefore excluded any 5 attraction that allowed free access to its facilities . The final sample size for attractions was 5. There is one exception. The Mondal Casino owned and operatcd by Lotto Quedm not charge admission to its facilitics. It does, however, use a computer reservation systcrn to monitor attendance and schedule tour bus amivals to prevcnt overNling of casino facilities. small, yet sufficient to present in-depth accounts of the variety of CRS use existing in this sector. The various hocel and attraction groups were contacted fmt by letter, followed with a personai phone cal1 during which time the scope and requirements of the project were discussed and an interview, if possible, was scheduled- The fiinterviews were semi- stnictured and covered a range of topics that included: fum characteristics and indicators (size, organizationd structure, markets), marketing strategies (budgets and the promotional mix of print, media and technology, alliance activity), labor issues as they related to technology (training and skills), and a range of topics regarding CRS and its use by towism finns (see Appendix 1 for examples). 1 was usuaily able to speak with the hotel manager, but when this was not possible, the Reservations Manager or Directors of Sales and Marketing substituted (see Figure 4-3). When certain items of information were not known by the respondent (for example, the director of marketing might not know the impacts of CRS on labor productivity) efforts were made to contact the relevant people within the tkm foilowing the interview. For this reason, interviews often lasted at least one hour and sometimes up to four hours. On two occasions, I retunied more than once to the same fïnn to speak to different people about their CRS appiications. Figure 4-3: Research Respondents Ra. Mgr* 12% The personal interview process, whüe perhaps the best choice for data generation in this case, is not without its drawbacks. Ttie rnost critical problem originates from the interaction between interviewer and interviewee. For example, on one occasion 1 had trouble keeping a professional rapport during the meeting; the interviewee wanted to impress me so much with his business that if I had not kept retuming the focus to the interview, he would have turned the meeting into his own promotional sales show. On another occasion. gaining professional respect was a challenge when the ownerlmanager of a tourism fmasked if 1 would Iike to discuss additional details of his business over dimer- Somewhat surprise& 1 kindly declined stating that I did not think such a proposal was appropriate. In addition, 1 made conscious attempts not to prompt answers from the respondents- I allowed them to take their tune with their answers. As a result of these efforts, I believe that interviewer bias was kept to a mininium and that the results were not cornpromised A questionnaire was considered an appropriate twl to supplement the semi- stmctured interviews in the hotel sector analysis. Such an approach has the advantages of eliminating possible interviewer bias. providing the respondent with additional time to think about the survey questions, and extending sample size and geographical coverage possible (Sheskin. 1985). Due to the diverse range of firms associated with the attraction sector. it was decided that the swey would only be applied to the more standardized hotel sector. The questionnaire was designed following the finr session of interviews conducted during the sumrner of 1994. Fht. a data List of relevant variables based on the research goals and identifed in the initial interviews was developed to define the scope of the questionnaire. A Liken-scaling strucnue was used for many of the 'attitude and perception' questions based on a one to five rating structure. Open response questions followed each section. The question categories were coded alpha-numerically for easy database entry into an Excet spreadsheet for analysis. The fmt and severai subsequent cirafts of the questionnaire were then submitted to industry representatives at Tourism Canada, HAMT, and to two Montréal hotel Reservation Managea for comments on form and content In view of these comments. the questionnaire was revised. The final fonn was a 5 page document covering topics from 'About your firm'. 'About yourself ,to CRS activity and alliances (Appendix 2). In total, over 170 questionnaires were mailed out to hotels in both the Montréal (French version - approx. 70) and Toronto areas (approx. 100). After two weeks had passed. phone calls were made to the hotel managers to confïrm receipt of the questionnaire and to answer any questions the respondent had regarding the swey. In general, the phone cds provided early indications that the questio~akwas not king well received as several respondents denied receiving the package, requested additional copies as 'it must have been misplaced', or stated outright that they did not want to participate in the snidy. The final response rate was 10%. or 17 completed surveys. The city breakdown was 5% from Montréal and 17% fiom Toronto. While Toronto's response rate was poor, Montréal's showing was extremely disappointing. As the final questionnaire draft was approved by French language tourism specialists, tenninology is not considered to have been a factor in the low response rate. Perhaps the greatest deterrent was summed up in the excuse given by one manager: "1 just don't have the time to devote to matters outside of my core responsibilities nght now". Additional reasons suggested by managers for the low response rate are: the broad range of topics covered, an 'uneasiness' on behalf of hotel managers with issues relating to technology, and an 'unwillingness' to disclose what are considered trade or fkm secrets. The questionnaire results were sufficient, however, to provide suppiementary evidence to the tre.nds identified in the personal interviews. Data analysis consisted of simple comparative statistics such as pemntages and cross tabulations. Due to the srna11 sarnple size, regression or correlation analysis was not used to test the relatiowhips among variables. As a result, the conclusions drawn are 'based on indicated trends only. No attempts were made to establish causal Links between different facets of CRS adoption and use, and changes in the competitive characteristics of businesses. As a resdt, this thesis presents a much needed stepping Stone to a more detailed and large scale examination of these conc~usionsby tounsm researchers. HOTEL AND CRS ANALYSES This chapter reviews the results of interviews and surveys conducted with hotels in Montreal and Toronto. The chapter begins with a discussion of the degree to whîch CRS is used by various types of hotels (smaWlarge; chaidindependent). In particuiar, I analyze the main motivations for CRS use, barriers to adoption, and reasons why the technology is not appropriate for certain firms. The discussion then moves on to the impacts of CRS on fimi performance. The chapter concludes with a discussion of the management issues raised by the research. In total, 36 hotels contributed to the research- The idormation was accumulated from 19 in-depth personal interviews and supplemented by 17 retumed questionnaires. For analysis purposes, responses fiom the 36 hotels were aggregated. This was feasible due to the sirnilarity of questions in the semi-structured interview schedule and the questionnaire. Additional anecdotal information was supplied fkom the interviews. The breakdown of respondents by city and hotel type is presented in Table 5-1- Table 5-1: Hotel respondents by Type, Size, and City. City independent Chain &liated Chain TotaIs Mo nueal 6 (40.0%) 4(26.7%) S (33.3%) 15 (100%) Toronto il (52.4%) S(23.896) 5 (23.8%) 21 (100%) Totais 17 (47.2%) g(25.096) 10 (27.8%) 36 (100%) , 1 Hotd size*' 1 City Smaü (< 60) Medium (60-229) Large (> 230) Totais Montreal 2 (13.3%) 6 (40.0%) 7 (46.7%) 1s (100.0%) Toronto 4 (19.1%) 9 (42.9%) 8 (38.0%) 21 (100.0%) Totals 6 (16.7%) 15 (41.7%) 15 (41.6%) 36 (100.0%) . m: (a) The three main classifications of hotcl ownership- types-- are independent (privatc owncrship), chah affiliateci (with independent ownenhip), and chah (chah owned ad administcrod). (b) Size is based on thrte categories; small with under 60 toonis, medium beniveen 60 and 229 rooms, and large with more than 230 rooms. 5.1 CRS Adoption Hotel managers were asked to List which CRS (if any) they subscribcd to directly. Only 14% of al1 hotels contacted (36% in Montreal and 1% in Toronto) did not subscribe to any form of CRS (see Figure 5-1). In Montreal, this contrasts with results fiom an earlier MTRG hotel survey in which 47.5% of the city's hotels (n=61) did not subscribe to CRS (Pohlrnann and Milne, 1993). The independents are the most recent subscribers to CRS with an average connection tirne of 4.3 years. Chain affrliates and chah owned hotels by contrast have rnuch longer histories of CRS connection (75 and 13 years reqnzctively). Figure 5- 1: Type of CRS udby Montreai and Toronto hotels Type of CRS 14% Montreal's signiflcantly higher percentage of hotels with 'no' CRS stems fkom the demise of the province's RRS. Réservation Québec (RQ) (see Chapter 6 for a more detailed discussion). Many Montreai hotels sampled that did not subscribe to any CRS had previously been listed on RQ. By contrast in Toronto, the HAMT (Hotel Association of Metro Toronto) Hotel CRS called bAccommodation Toronto' services rnost of its region's hotels. The 'comected' hotels sampled use a variety of CRS types. fiom a specialized Bed and Breakfast hot-line. to the sophisticated on-line reservation systems of the international hotel chains. While no individual hotel subscribed to a GDS directly, several of the hotel. voluntary consortium, and on-line consumer subscription CRSs provided additional Iinks to these mega-CRSs. Many hotel managers felt that in order to remain competitive, CRS comection was necessary. As one chah marketing manager stated, When you are in the system, you are in the game. If you're not in the system, you're not in the game". As a competitive saategy therefore the decision to adopt CRS is clear cut, but what is les well known is why a hotel manager selects one CRS over another? What are the most important criteria for CRS adoption? What are the factors that managers base their decision upon? Unfortunately, my ability to trace a 'CRS history' in the hotels contacted for the research was hindered due to the hi& rate of management turnover in the hospitality indusîry. Many managers were not present at the time of CRS adoption and were therefore unaware of the motivation for and criteria used in CRS selection. In addition, many managers of chain and chain affiliated properties had no Say in selection as head office had deterrnined the default CRS as the chain brand: Choice Hotels must use Choice CRS for exarnple. In these cases therefore, the manager was dealing with a CRS already established. For those who were involved with CRS connection (n=17), adoption was based on three criteria, in order of importance: The selection of CRS was based almost exclusively on a cost-comparative basis (commissions, etc-). The range of market exposure covered by the CRS must coincide with the desired geographicai and demographic markets of the hotel in question. Finally, the range of administrative (back and front office) functions available in the systems must satisfjl the hotel's particular needs. Based on these criteria, a particular CRS was selected for the hotel- As wili be seen in the ensuing discussion, however, the most important criterion in selection of a CRS is not dependent on the systems themselves, but rather the hotel's characteristics with respect to size and ownership structure. 5.2 Hotel Size and CRS Many authors state that smaiier, independent properties are those most Likeiy to be unable to exploit CRS technology (Buhalis, 1995; Archdale, 1992; Poon, 1993; Pohlmann, 1994). The research sample revealed that small hotels were excluded the most, with 2 of 6, or 33%, not comected, compareci to only 20%. or 3 of the 15 medium shed hotels (see Table 5-2). Al1 of the large hotels surveyed had some fonn of CRS connection, tbus indicating the advantage of size in securing access to technology thtough greater financial and organization resources, Table 5-2: CRS type by Hotel Size Size None Hotcl chah Consumer Voluntary hotcl More thaa one Grand subscription service consortia Totai , Srnall . 2 O 1 3 O 6 Medium 3 5 O 3 4 15 Large O 8 O 3 4 15 t Grand Totai 5 13 1 9 8 36 For those smaU operators with CRS, the voluntary hotel consortia was the most popular form selected. In contrast, the medium and large hotels make heavy use of chain systems. In addition, medium and large hotels are often able to subscribe to more than one type of CRS concurrently, thus widenuig the disaibution and marketing options for these hotels. The smaller property managers without CRS offered the following rasons (in order of importance) as to why CRS was not appropriate for their hotels: High (often excessive) cost; Not necessary for success of their business; * Distrust of technology in an industry dominated by the 'human, personal touch'; * Desire to maintain control of inventory and sales. Cost represents the overwhelming barrier with respect to CRS adoption by srnall properties, prohibiting links between the in-house reservation systems (if existent) and the extemal CRSs. The costs of a CRS booking in commissions aione can exceed 2û-30% of the total room rate, thus cutting into or eliminating any profit rnargin derived fiom the booking (Interview). This formula does not account for the potential increuse in bookings as a result of the CRS however. CRS fees start at approximately $10 000 /year/hotel (Interview; and Pohlmann, 1994). Considering that the average budget for marketing by hotels is 2-3% of al1 expenditwes, a 20% loss fiom profits for commissions is high (Le Quebec Touristique, 1991). In addition, a member of the hotel staff must be trained to respond to CRS booking requests and to monitor or close-out room availability. These extra labour costs are considered excessive by those interviewed. Secondly, many smali hotel managers did not consider the CRS as necessary for theu businesses. With 60 or fewer rooms to seii each nighî, the CRS was perceived by some managers as a distribution channel that can, due to its wide coverage, overwhelm srnail properties with bookiogs. ïnventory and incorning reservations must be monitored constantly. This labour-intensive activity may not always be handIed effectively thus leading to overbookings - and the hotel may incur additional costs and inconvenience for Iittie real return. Success in the hospitality trade is often built upon excellent customer service delivered by courteous and professionai staff members. In some cases, the introduction of technology into the indusûy is viewed as a threat to this personal touch by replacing many of the human faces with interactive cornputer monitors (Haywood, 1990). Several of the small property managers pride themselves on offering exceptionai customer service and attention to the 'human-touch' aspect of the trade. For some of these properîies, CRSs are perceived to be an unnecessary move away fiom this prized personal dimension. This anti-technology attitude affects other features of the hotel such as the preference for personai wake up casas opposed to autornated calls. This attitude to technology in general, and CRS in particular, is perhaps best expressed by one smail property manager: 1 will wait until 1 have no choice but to link up. If that's the way the customer wants to do business, then 1 will link up. Finally, distrust of technology may also influence management decisions. Sorne of the small hotel managers expressed great reluctance to relinquish their inventories and reservations to the third party sales forces of the CRS companies. As one manager declared, ... no third party reservation agent can possibly be as familiar with the characteristics of my property as 1, or my staff, can be. I: distrust a stranger to do as good a selling job for my hotel. Cases exist where the customer was given inaccurate information on the hotel and was thus dissatisfied. This can occur when poor interpretation of hotel information on the CRS by reservation or travel agents is passed on to their clients. It is imperative for hotels, large and small, to provide accwate information on their property and to update it as changes occur. The smali property owner is often particular as to the type of clientele that Frequents hisher establishment. The third party CRS sales person, or CRS channeled travel agent, cannot, however, screen the guests to suit the manager's preferences. When an average of 28% of bookings fiom travel agents are 'no shows', faith in the third Party reservation channel is diminished further (Lindsay, 1992). Confidentiality of information is also a womsome issue for some managers who would have to swrpnder theu market data to the CRS fm (Interview; and McGuffie, 1990b)- The desire for ultimate control thetefore leads many smaH property owners to avoid CRS technology and the impersonal sales procedures of many reservation staff and travel agents, 5.3 Hotel Ownership and CRS An even clearer picture of variations in CRS use is evident when hotel ownership structure is taken into account The most signifïcant difference in CRS use among properties in the study, regardless of city and size, was between the independent hotels and the chain- affiiiated or chain-owned properties. It is worth noting that a relationship exists between hotel size and hotel ownership structures: Independents (on average) have only 134 rooms, whereas the chah affiliated and chah properties have 222 and 713 rwm respectively. This association is supported by Pohlmann's study in which the majority of small hotel properties were also independents (1994). As Table 5-3 illustrates, independent properties more &han any other type of hotel are underrepresented with respect to CRS use. Table 5-3: CRS type by Hotel Type r CRSType/ None Horclchain Consumer VoIuntay hotel More han GmdTotal Hotel Type subscription service coasoma one I independent 4 1 1 9 2 17 Chain affiliated 1 6 O O 2 9 Chain O 6 O O 4 1O Of those independents able to obtain comection, the majority (53%) use voluntary hotel consortia. Direct subscription to consumer subscnption services or other CRS types is Iirnited. Those hotels with some fonn of chah affiliation (fianchise or direct ownership) tend to use the hotel chah CRS. As with the large hotel properties, approxhately 40% of chah owned hotels subscribe to more than one type of CRS, thus increasing their distribution possibilities. One of the most dominant factors affecting the hotel industry today is the continued trend towards consolidation and ownership concentration (EIU, 1996; McGuffie, 1994). There are several reasons an independent hotel would join a Chain. The attraction of a brand name for affiliated hotel managers is thai, regardless of the travel market of ongin (or final destination), the hotel is recognized as part of an established network of hotels offering comparable services and façilities. Al1 properties benefit €rom the international recognition and client loyalty. One new member of the Comfort Inn chain, for example, stated that her hotel's occupancy rate jumped from 65.5% in 1992 to 78-95% in 1993 "due to the narne association". In addition to capitalizing on a name brand, affiliation with a chah provides administrative and operationai benefits as well. Head office may assign entire departments to evaluate new marketing technologies as is the case with CP Hotels* Task Force on Technology (Interview). Furthemore, chah proprties enjoy considerable advantage from the quick diffusion of standards and practices throughout the global network, keeping ahead of or at least abreast of the cornpetition. One of the greatest draws to join a chain, however. is access to a CRS. As with frequent guest and stay progranis, the lure of a chain CRS is a 'guarantee* of international exposure and the satisfaction of repeat visitors who are brand loyal (McGuffie, 1994). This point was confirmed by the managers of several recently affiliated hotels who stated that the enticement to join their chain was definitely access to the CRS. As with srna11 hoteIs, independent properties may shun CRS because of cost barriers, issues of control, and the ability to satise their own niche with intemal marketing teams. An additionai barrier for this group includes the inabiïity to conform their products to the standards required by the CRS systems. Some of these CRS standards include guaranteeing reservations, ensuring close-outs (notification of the central reservation office chat room quota is booked). and generic description codes. Inability to adhere to standards, in addition to cost, represents perhaps the greatest barrier to CRS exploitation (Interview; Buhalis, 1995). The CRS, as with most computerized databases, is built upon conformity and standardization. Galileo CaMda's President and CEO, Marc Rosenberg, stated that: at the end of the day, that is realIy the strength of any CRS. That what it brings to the (travel) retailer is a generic language.... a generic display so that no matter what ... is king booked, the agent is using the same formats (CTP, June 8, 1995:14). The diffîculties with CRS co~ectiondescribed by the independent hotel respondents are supported by quantitative evidence. Hotel managers were asked to provide figures, where possible, of the percentage of hotel hkings derived from the two primary distribution channels: CRS and direct 1-80011 (see Figure 5-2). The independent properties' average CRS bookings are the lowest at 8%. compared to 23% for chain affiliated properties and 34% for chain owned. tt is worth noting that the chain affïliated and chain properties in Montreal and Toronto are receiving sirnilar percentages to the international average in 1992 of 23.8% (McGuffie, t 994). Figure 5-2: CRS bookings by Eotel Type compared with 1-80(MC Pemntago of Bookings by CRS and 1400#, by Hotel Type The data suggest that chain properties receive more bookings through the CRS than do independents. Keeping in rnind the restricted sample size, it appears that the chain 'owned' hotels receive high percentages of bookings fiom both 1-800th and CRS distribution channels. The independent propecties however, tend to receive more reservations through their 1-8W.s than the chah 'affiliates' (see Figure 5-2). 5.4 Perceived Impacts of CRS on hot& The respondenu were asked to consider the impact of CRS ~hnologyon various aspects of the hotel's operaiions and competitiveness (see Appendix 2). These perceptiodqualitative questions were based on a rating scale in which (1) represented the greatest positive impact ranging to (9,an absence of impact A summary of the aggregate (rnean) responses is presented in Table 54. Table 5-4: Aggregate resuits of pemived CRS impacts on hoW I COMPETlTlVENESS (GENERAL): 1-2 GOOD BOOKINGS: 1-2 GOOD REVENUES: 2-3 ACCEPTABLE MARKETEXPOSURE: 1-2 GOOD LABOUR PRODUCTNITY 4-5 LITrK,E RATE FIXING FLEXIBIISTY: 5 NO IMPACT ALLIANCE FORMATION: 5 NO IMPACT 5.4.1 Bookings Overall, management was satisfied with the level of boolgngs received ihrough the CRSs (see Table 5-4). Chain hotel managers state that, in general, the hotels are receiving more bookings than in the past through the chah CRS. They cite two reasons for this increase. Fust, travel agents are adopting GDS tenninals in their agencies in increasing numbers. Secondly, with the increase in travel agency consolidation, the 'new' agencies on board are linking up with CRS as part of their contracts with, for example, Amencan Express. For these hotel managers, who can receive up to 40% of their bookings through CRS,the reservation systems has becorne a vital tool: We can't live without it. It makes us better managers because we are no longer managed by crisis, we can stay ahead of the game. (Chain Manager interview) Despite the generai trend towards more bookings, some of the chain properties expressed dissatisfaction with the amount of bookings generated fiom the reservation agents at the CRO's. This may stem from a lack of knowledge of the propem by the cesecvation agents. Hotel management can overcome this problem by pmviding the reservation agents with FAM (familiarîzation) trips and video brochures. In addition. special notices and gift incentives may be used to encourage bookings of properties that need to fill rooms (see Appendix 3 for a creative example). Another cause of dissatisfaction with CR0 bookings by chah properties stems hm language problems. For many French-speaking travelers from around the world (including Quebec) the inability of reservation agents firom Phoenix or Omaha to serve them in the French language has resulted in lost bookings andlor customer dissatisfaction. Imagine this situation: A Montreder would like to reserve a room at the Chateau Frontenac in Québec City. She contacts the CP reservation system via theu CR0 1-800#. This system, however, is routed through to Phoenix, Arizona to predominately English speaking reservation agents who may not be able to serve the customer in her language of choice. To alleviate this situation, CP introduced incentives for the American reservation agents to leam French and, with developments in telecommunications identification systems. cas originating from French speaking area codes ('514' for example) are routed to French speakuig reservation agents (Interview). More recently, CP Hotels decided to transfer their CR0 services to New Brunswick. Moncton is now known as the 1-800# capital of Canada due to an abundance of bilinguai trained operators and state of the art telecommunications infrastructure (CTP,Feb. 9, 1995). Some of the independent CRS subscribers remarked that reality has not matched expectations with respect to bookings. For example, one sales manager of an independent property is considering changing the voluntary hotel consortium to which he belongs because of their failure to generate more than 3% of his totai bookings. He is considering the recornmendations of cornpetitors and other industry members when researching alternatives. He expects to make a shift from the European and Asian-oriented Utell to the more Amencan-focused Lexington system in the hopes of capniring more of his target market. International GDSs are perceived as offering the greatest international exposure. For rnany Canadian hotels, presence on a GDS such as Sabre (or indirectly through a hotel consortium CRS) increases exposure in the American and European markets. The greatest perceived impact on market exposure was felt by the managers of the chah afnliated properties (6 out of 9 rated the impact as 2 or higher). Some of the independent and small hotel respondents were unable to answer questions regarding CRS and the geographic ongin of markets because they did not have the facts available to them. Only 9 out of 17 independent properties performed market evaluations in conuast to 75% of the chah affiiiated and al1 of the chah properties. Mixed perceptions abound as to whether or not CRS is a marketing tool in addition to a distribution channel. One chah propercy manager felt that the marketing options avaiIable in the GDSs in the fonn of free billboard and posting arrangements were not king exploited sufficiendy by head office. The loss of poteutid business in ber eyes is significant enough to warrant a renewed look at the CRSs rote in her business- Other xnanagers do exploit the marketing power of the systems. One large hotel manager for example is letting go of some paper directory listings to "fkee up fun& for more CRS representatïon". Some of these fun& are going towards SabreVision, the costs of which are just slightly more than the cost of using paper guides (Interview). 5.4.3 Labour Productïvity Two key labour concerns exist with respect to the adoption of technology by the tourism industry: first, that automation will replace the need for workers, and secondly, that workers will experience deskilling (RiIey, 1992). At the same tirne, technology may offer the potential to relieve staff from the menial, repetitive tasks of running a hotel so that they may address the needs of guests more effectively (Poon, 1993; GM Robinson Associates, 1993; Pohlmann 1994). CRS technology is an interesting case study with regards to its impact on labour use. Not only do front desk clerks and reservation agents use the systems, but the sales, accounting and marketing departrnents often also interact with CRS. It may be assumed therefore that those positions considered part of the back office may be threatened by the efficient execution of repetitive tasks possible through the CRS whereas the front desk personnel may have their core functions enhanced by the technology. The most muent users of CRS in the sampled hotels are, in rank order, the front desk manager, the reservations manager, the director of sales, and finally front desk and re~efvationagents. According to one manager, while only 20% of hotel positions require technical skills, al1 back office and front office staff must 'feel comfortable' with cornputers. Users of CRS in particular must be familiar with the system's codes and text formats. Many managers insisted on a minimum level of education, usually technical college, for reservation and front desk staff- In 1994, the reservation managers in Toronto eamed appximately $29 100 annually in salary, and reservation agents approximately $20 339 per year on hourly wage (HAMT, 1994). Initial training of staff for new CRSs was usually provided by a systems specialist from the CRS W. In the case of a chain type property, such as CP hotels, a member of the head office specialized in CRS systems would visit all CP properties to train their staff. The duration of this training was from one day to two weelcs depending on the level of skill and functions required by the nainee. Subsequent training of new employees in CRS syste~ and operations was perfonned in-house by existing staff members familiar with the system. While training may be of a short duration, several months of practice are required before the staff is proficient in most necessary CRS operations. To help during this the, tutorials are often available on the systems as well as print reference manuals. New software features and updates rnay be transmitted to the hotels via the network or in a newsletter. There was no consensus among the study's respondents as to whether or not the use of CRS technology resulted in a reduction in hotel staff- More often than not. the managers believed that fluctuations in demand and recessionary pressures had a greater effect on the number of staff employed at a certain time than the introduction of CRS technology. Nevenheless, examples of CRS-related staff reductions do exist One medium sized, chah hotel manager stated that CRS: has made the staff more efficient. We need only one reservation person whereas without the technology we would need more people. There is evidence of staff cutbacks in other tourism sectors as a result of CRS. In 1995, Via Rail for example completed a switch-over of its seating inventory and rates to Sabre, the fmt rail line in the world to achieve this complete GDS interface. One result has been the laying-off of 50% of their marketing staff (Interview). Traditionally, Via Rail had a mobile sales force that would travel throughout North Amenca to sel1 Via seats. With reservation capabilities on Sabre, Galileo, as well as WorldSpm and Apollo, this sales staff was quickly made redundant, The issue of labour productivity is a complex one and determinhg the impact of CRS on labour efficiency was not an easy task for the respondents. Some equated increased efficiency with a reduction in the amount of manual entries made by staff and therefore a reduction in human enor. Others emphasized CRS's ability to allow staff (front office) to focus on core customer relations. Still others felt that the need to monitor incorning reservations through the CRS required additionai input hm labour and hence additional labour costs. The type of CRS comection was an important consideration with respect to eventual labour requirernents and impact. A fax confirmation type connection, for exampIe, is very labour-intensive, necessitating additionai steps on behaif of the staff in the monitoring of hotel rates and reservations. Conversely, the on-line real time systems of large chain properties reduce the amount of menial data entry tasks required for reservations confirmation. Properties with fax confirmation connections (n=14, eleven of which are independent properties) were the least satisfied with the impact of CRS on labour productivity (mode of 5). Respondents from the chain-affifiated properties were the most impressed with the impact of the CRS on labour (mode of 2). As recent additions to the "on-Line CRS scene", these managers were impressed with the greater efficiency afforded by an increase in 'electronic' comection. 5.4.4 Rate-mg FIexibilify and YWManagement What hotel management hopes to achieve is to manage demand to ensure the highest possible occupancy at the highest possible rates.. . A yield-oriented approach thus identifies sales opportunities and strikes a balance between supply and demand through adjustments in the price (Sawhney and Lewis, 1992: 9, 10). A significant advantage of CRS in yield management stems from the system's power as a database with excellent reporting capacities for users. Management and staff can generate reports on a daily, monthly or annuai basis for inventory analysis. Many of the problems encountered by independents in their use of CRS stem fkom an under-utiiization of the systems (see also Tounsm Canada, 1994a). Simply put, the reservation staff were not aware of how to exploit the systems for maximum gain in terms of yield management and marketing. Many complained that the systems are updated so frequently that it is difficult for busy hotel staff to stay abreast of new features. As with CRS's impact on labour productivity. the ability of hotels to execute maximum yield management ofkn depends on the type of CRS co~ectionmaintained by the hotel. The ability to examine fluctuations in demand and adjust room-rates to ensure the highest rate of remis Wted to the skilied labour input available within a hotel and the response-cime-to rrservation&mands. The impact of CRS on rate-fwng flexibility and yield management is greatest on hotels with on- Iine real-time connections and dedicated staff members analyziag inventory variations. Both types of chah properties can be thus characterized (mode of 1 for chain-owned and 2 for chain affiliated). According to these managers, the effectiveness of yield management is undermined when travel agents misinterpret the variety of restricted rates available to them and make inappropriate reservation requests. Software programs that andyze avaiiability and recommend close-outs and the introduction of certain rates are most escient when the Property Management System is linked to the CRS. Fax confirmation on the other hand, represents a delay in real time that reduces the efficiency of yield management. For example, fax requests may be transmitted to the hotel in the morning, yet the front desk staff may enter the reservations only that evening. For guaranteed rates and rwms therefore, the hotel risks overbooking. Managers of hotels with fax confirmation connection and labour restrictions were generally disappointed by the impact CRS had on their rate-fwng flexibility (mode of 5). The separation of rates in the internai PMS from extemal CRS systems mer exacerbates this situation. When one set of rates exists in the PMS and another in the externai CRS, venfication and manual adjustrnent of rates must occur at customer check-in, reducing the abiiity to execute efficient yield management through CRS. The need for efficient yield management must be addressed for according to Sawney and Lewis (1992:9), "Yield management is revenue management". Their study indicated that approximately 56% of ho tels underutilized yield management practices. Network effects mate important opportunities for gaining cornpetitive advantage in the tourism industry in which the basic senrice consists of linking buyers, sellers, and third parties (Go and Williams, 1993:246). An overwhelrning majority of the hotel managers in the sample do not believe that CRS membership has an impact on their ability to create new alliances and travel packages, connasting with Poon's suggestion that CRS technology facilitates diagonal and synergistic integration of firms (see Chapter 2). The managea had not been approached by other tourism suppliers, nor did they take the initiative and approach other CRS listed tourism products. According to these respondents, these activities are undertaken independently of the technology. This does not however, discount the possibility for CRS to bring together new combinations of travel products. Tour operators and travel agents with access to the CRS displays are in an advantageous position for develophg these alliances. With these travel databases and other management ITs at their fingertips, unique package development, marke~g.and distribution is possible. In order to discem the nature of CRS alliance activity, a more detailed anaiysis of retail and wholesale packaging patterns and practices would have to be undertaken. Individual consumers with access to CRSs via the Internet or consumer subscnption services are in a posiaon to develop their own itinerarïes and packages. Once again, however, the tourism suppliers and products united through the CRS technology may not be aware that their presence on the system facilitates such a package. From the responses in this research, it is clear that efforts musc be made to inform hotel managers of the alliance possibilities that exist through their CRS listings. With this knowledge, they cm become more active in the development of such alliances, moving closer to Poon's notion of a 'total system of wealth creation' . 5.5 Distribution alternatives for srnall and independent hotels The incentive al1 dong for the hotel industry was that an electronic booking (through CRS) was less expensive than what is costs to get on the telephone and make the booking. Sadly, the rates on the CRS bookings have now gone to where they are on the same level as the rates for the telephone call. (John Davis, President of THISCO in Mowat, 1995). For the small and independent hotel, two strategies exist which may help overcome the many barriers to CRS adoption: exploitation of direct 1-800#'s, and alliance formation (Poon, 1993; Interviews). The following example illustrates how one independent is exploiting his hotel's 1-8W in order to reduce reliance on CRS and, ultunately, increase revenues eamed per booking. The hotel uses two methods for reservations (see Table 5-5). Table 5-5: Cornparison of commissions paid for resewations by hotel ethod One; GBssQai 1-8W COSE 1-8W : Recoup of Telecommunication costs 1 based on 30% conversion rate (average.) Travel agent : 10% Travel agent : 10% GDS : Additional flat rare. US$ Total: : Can cost up to $15 US pet Total: : Less expensive for the hotcl room McGuffie. 1994 The first method is through the voluntary hotel consortium CRS, Utell, while the second method reiies on the direct-to-hotel 1-800#. In Method One, due to the high CRS commissions, the independent hotel will only Iist its highest rates on the system so as to ensure that some profit will be generated from the booking. Some managers inexperienced with CRS remarked that they actually lost money on bookings of special discount rates through CRS. With the 1-800#, the hotel has no rate restrictions, only a need to convert the înquiry into a reservation and thus recoup the marketing and telecommunication costs of the cd- Desired conversion rates are in the order of 30% or higher; anything less than this and the hotel's profit margin is severely weakened6. According to Hickey (1990), conversions in the hotel industry are usually one caller in three but can go as high as 50 or 60%. With fewer commissions to be paid, less expensive rates are advertised to the 1-800# callers. Overall, the 1-800# method costs the hotel less and therefore is the preferred method of booking. This particular manager stated that nearly the entire marketing budget will be used to promote their 1-8Win ail future advertising campaigns. The second strategy employed by hotels and particularly effective for small and independent establishments is the use of strategic alliances and networks. Take the case of one srna11 and independent property in Montreal that overcame traditional CRS barrîers by securing co~ectionto a specialized 1-800# hot line catering to small Bed and Breakfast In another case. an independent hotcl manager is considering out-sourcing the hotcl's direct 1-800n to a telemarketing firm with a skilied labor force traiaed in the tactics of converthg caiis into sales. Tbe manager is considering this service because his ftont desk and sales staff are so busy they cannot give the appropriate attention to the incoming calls, increasing tclecornmunication costs and the potential for properties. This particular hot-lîne is listed in GDSs such as Subre. Interested users access the B&% 1-8001t Listing in the GDS following a key word search for B&B properties. The 1- 800# connects the inquiring travel agent or tourist to a reservation agent who in hm accesses a centralized database listing al1 of the member properties. The reservation agent. knowiedgeable on the B&B market, provides detailed information and. upon nquest, performs a reservation transaction with a temporary confirmation number for the customer. When the faxed reservation request is accepted by the B&B, the rese~rationis &varanteeci. By fomllng alliances and networks with other sdlBtB's in North America, the hotel can maximize its marketing dollar through concentrated appeals to the B&B consumer. Econdes of scaie in specialized marketing and services are realized thmugh such network formation. These hot-lines operate very much like the voluntary hotel consortiums discussed earlier but due to their specialization. can alleviate many of hotel management's perceived barriers (market screening, knowledgeable reservation agents, etc.). 5.6 Management Attitudes to CRS adoption and use The greater importance of information and knowledge transactions in the tourism industry shall require managers to gain greater insight in the use of computer technology to facilitate a change in the management process within organizations and to extend their horizons well beyond the traditional trade channel sy stem (Go and Williams, 1993 :24S). Despite the above noted importance of manager insight, research has shown that barriers to successful exploitation of technology are more often managerial as opposed to technicd or financial (Tapscott, 1993). With respect to the application of CRS technology for example, one manager might Say, 'We need a reservation system because we are so busy? While another in the same situation would Say, 'Why do we need a computer since we have al1 the business we need?" (Gamble, 1988). Of the five hotels f'rom the sample not using CRS technology, three of the respondents were of the opinion that "If it ain't broke, don't fix it". With higher occupancy rates on average than iast year for the hotels, many of these managers see Little need to invest in additional distribution technologies. These respondents are reluctant to experiment with customcr dissatisfaction. By out-sourcing to a spccialized tcicrnarkc~gcornpany. the calls are handled immcdiatcly by well-mannerd and trained staff. new marketing technologies until they are either forced to by cornpetition or the financial nsk to their business is reduced, By contrast, some of the managers who used CRS technology considered themselves leaders in the industry and approached IT in general with the attitude of "lets try a Little of everything" and "If its new. we have it". With many fingers in different pou, these types of managers experimented with technology fint and evaiuated the best applications later. The following managerial barriers to CRS adoption have been identified: lack of awareness of new technologies, lack of understanding of the advanrages that new technologies offer, womes about issues of complexity and incompatibility, difficulty in getting detaiied information on new technologies. and difficulty in evaluating new technologies (GM Robinson Associates. 1993). According to Pine (1993), hvo factors are necessary to overcome these barriers. Fît, a basic level of knowledge sufficient for the handling of new technology by the user population (hotel managers) must exist Second, willingness to adopt new products and new techniques must exist so that an environment receptive to technological diffusion develops. In order to achieve these factors. education and planning by hotel managers is key. In other words the imperative is to "upgrade the current ski11 base: increase technical awareness; (and) reduce fear and apprehension of technology" (Tourism Canada, 1994a). Tourism Canada is hoping to bring the Canadian hospitality industry into the information age by encouraging the adoption of technologies by tourisrn suppliers that wili enhance their competitiveness in the international tourism marketplace (1995; 1994a; 1994b). For this reason. poor management attitudes to technological adoption must be identified and remedied. 'Willingness' to adopt certain new products or practices often stems from managerial confidence grounded on thorough research and detailed planning. Unfortunately. tourism product managers are fiequently criticized for a lack of long-tem planning (Fesenmaier et al., 1992; Hotel Association of Canada, 1996). Likewise, managers of: smdl tourism enterprises rarely take steps to aquire information or skiils that do not have immediate application to the solution of a specific technical or managerial problem at hand (Brownlie, 1994:38). Without this prior planning by hotel managers. decisions to adopt new technology may be based on 'fashion' or pressure from techoology vendors and not in response to the property's needs (GM Robinson Associates. 1993). Unfortunately, insufficient financial resources inhibit many tourism businesses from conducting adequate research @esenmaïer et al., 1992). The managers in these cases may not appreciate the necessi@ and value of research and will often undertake such a venture (but not its funding) only at the request of an extemai agency such as a National Tourism Office (ibid.). Once obtained, the need to guard the results of the research hmcompetitoa litnits the degree to which the information is shared with other tourism businesses (ibid.)- Lack of awareness is recognized as a major bamer to the successful adoption of technology and therefore the respondents were asked if they felt confident about their knowledge of the variety of information technologies avaiiable for the marketing and distribution of their businesses. Overall, 67% were satisfied with their knowledge. Of the 33% who were not, several stated that al1 decisions related to technology were delegated to another member of the staff proficient in cornputer systems. Others would enlist the aid of an external consultant when issues of technology needed to be evaluated. The positions of a Reservations Manager and General Manager scored the highest in regard to technology confidence with proportions of 66% and 65% respectively. Those in the position of Director of Marketing were the least confident (33%). perhaps reflecting the reason why CRS is not considered a marketing tool by many in the industry. Staying abreast of trends is a challenge so identification of the besr sources of information may help to eliminate the search time for those seeking answers. In order of importance, the three top sources of information according to the respondents are: hotel associations (chain and industry) and networking with other hotel managers. trade journals and publications. and destination tourism organizations @TO's) at the municipal level. Networkïig with cornpetitors or chain members has aiso become an important way to diffuse ideas, advice and facrs (Poon. 1993). These networks rnay be based on a regional Ievel, such as 'power breakfasts' at ha1Chambers of Commerce or Boards of Trade, firm size (small hotel manager get-togethers), and/or chahs (nationwide communication through E-Mail or annual seminars for example). Through these formal or informa1 network arrangements responses to specific questions are quick and more 'relevant' material is a disserninated. Choice Hotels for example. offers conferences which attract over 3500 member hoteliers who corne to share and obtain information. One manager heard about a new type of security system being used in Japanese hotels as a result of one of these networking encounten and is considering its appiicability to her propew. Managers of chain-type properties expressed confidence in their technical knowledge more often (77% for chah affiliateci and 90% for chah) than respondents from independent hotels (50%). Print (trade journals and periodicals) represents the second most populat information channel for the respondents. Those who coasult joumals do so on a regular basis, but according to Gamble (1988), up to 27% of tourïsm managers do no 'priodical' scanning at dl. Correspondingly, those hoteliers who felt they had satisfactory knowledge on tourism technologies consuIted tra& journais more offen (25%) than those who lacked such technology knowledge (946). This group of managers poses the greatest challenge to tourkm planners- A recommendation to read trade joumals is a first step in overcoming this barrier. DTO' s such as the Montreal Tourism and Convention Bureau (OCTGM) and Metro Toronto's Convention and Visitor's Association (MTCVA), as compilers and disseminators of statistics, are good sources of information on tourism trends affecting their particular regions. While nearly the entire sample concurred on the important marketing role of these groups in their respective destinations, fewer lwked to these organizations as an information resource. It is interesting to note that managers of independent hotels consult a wider variety of information sources than chah managers. In this research, independents rely on pnnt journals, DTO's, pnvate consultants, and trade shows, in addition to their own networking activities for information. By conuast, the chah properties depend on chah association sources for a majority of their intelligence in towism over any other source (Interviews). When management is in possession of the facts regarding the use and potenciai of new tourism technologies, attitudinal barriers based on fear and ignorance may be overcome. The willingness to apply the technology to their business is tempered or encouraged by a confidence that al1 facts and angles have been considered. For technology adoption to continue in the Montreal and Toronto hotels industries, it appears that the dissemination of knowledge, networking and affordable IT are paramount. These are pressing issues that need to be addressed by industry authonties, govemment bodies and pnvate interests alike. CHAPrER SIX ATTRACTIONS AND CRS ANALYSE This chapter presents the results of interviews with various memben of the attraction sectors of Montreal and Toronto. Following a bnef review of the variety of attractions included in the research. 1 analyze managerial motivations for CRS selection and the impacts of CRS on business operations7. nie barriers particular to attraction CRS use and the alliance smtegies employed to overcome these barriers are discussed. The chapter concludes with a look at other modes of electronic distribution available to attractions. In total. 24 attractions participated in the study, ran@g hm internationally renowned theater companies and sports teams. to adventure excursions and landmarks (see Table 6- 1 for a complete listing). Table 6-1: Sampled Attractions from MontreaI and Toronto Performing Arts and theatre ci#' Live Entertainnient Productions Toronto Mirvis h Productions Toronto Canadian Opera Company Toronto My steriously Yours Theatre Toronto His Majesty's Feast Dinner Theatre Toronto The Laugh Resort Comedy Club Toronto Second City Improvisation Show Toronto The O'Keefe Centre for Performing Arts Toronto Educational venues and museums Royal Ontario Museum Toronto Ontario Science Centre Toronto Art Gallery of Ontario Toronto Hockey Hall of Fame Toronto David Stewart Museum Montreai Montreai Museum of Fine Arts Mon treai Biodome Montreai Dow Planetarium Montreai Excursions and tours Great Lakes Schooner Company Toronto Lachine Rapids Tours Montreai Bateau ~oucheBoat Tours Montreai 7 For this sector. increased accessibility to management due to flaitcr hietarchies and the reduced degrce of foreign ownership permiued easier tracking of management motivations in CRS selcction. Though several Montreal venues in this catcgory werc con- includiag Les Grands Baiiet Canadiens. The Cornedy Nest, and Place des Arts, repeatcd interview requests during the research period were denied. D) Land MarkBite Attractions Casa Loma Historical Home Toronto Olympic Stadium Montreal Botanical Gardens Montreal E) Sports and Gaming Venues Blue Jays Baseball Club Toronto The Montreal Casino Monmai Several subsets based on attraction type were created in order to extract common themes affecting these groupings. Size however, is an important determinant of CRS use by these tourism firms. Small attractions are classified as those that receive les than 100 000 visitors annually in the last three years of operation- Medium attractions drew between 100 000 and 1 million visitors, whereas the largest firms attracted over 1 million visitors per year (see Table 6-2). Table 6-2: Attraction Sample Characteristics I l I I Montreal 4 (44.4%) 3 (33.3%) 2 (22.2%) 9 Toronto 5 (33.3%) 6 (40.0%) 4 (26.7%) 15 Totals 1 9 (37.5%) 1 9 (37.5%) 1 6 (25.0%) 1 24 Sue: Based on annuai attendance figures for three years (1992-1995). 6.1 CRS Adoption in the Attraction Sector Technology used by the attraction sector ... is highly variable and dependent upon the individual attraction or event in question. (CTC, 1995: 85). Keeping in mind this variability, the CRSs used by attractions (including TiAs, interna1 CRS, and RRS) are similar to the hotel industry CRS. In essence, computerized databases of firm inventories and prices are used to relay availability to consumers (travel retailers anaor the public) and to monitor sales. As with hotels, the inventories are perishable goods- Only so many tickets for a theater, boat tour, concert, and museum for exarnple, are available at a given time. Once the event has passed, the inventory has expireci; it cannot be stored. Beyond this similarity, there are factors which distinguish the attraction CRSs fiom their hotel counterparts. Fmt, as opposed to a hotet room 'reservation', transactions on attraction inventories are Lunited to 'purchases* only. A transaction is complete only when a transfer of fun& is authorized. Secondy, there are fewer 'brand' associated CRSs in this sector. While the proliferation of hotel chains in North America has led to the growth of bmd CRS designed to exploit brand-loyal markets. the heterogeneity of atîractions and the lack of ownership consolidation prevent the development of such 'brand' CRS. A quater (6) of the attraction firms sampled did not subscribe to any form of CRS (see Table 6-3). For the remainiog 75%. a variety of CRS types were US& ranging fiom regional reservations systems and ticketing agencies. thmugh to intemal in-house CRS. Table 6-3: CRS use by Attraction Type and Sue - Attraction Tvpe -Sue NoCRS InLCRSonlv -RRS -Ti Total Pexfonning Arts S 2 - 2 - 4 M - - - 2 2 L - - - 2 2 Educationai Venue S 1 1 - - 2 M 1 - 2 2 5 M - - - - - L - 2 - - 2 Totals 6 (25%) 7 (29%) 5(21%) 6(25%) 24 Because a relatively wide range of attraction types was consulte& it is difficult to generalize about 'specific' attraction-type CRS use. -le the responses to the problems and prospects of CRS use have been quite varied, the following section illustrates how certain cornmonalties exist within some of the subsets identified above. The Perforrning Arts (PA) category, based exclusively in Toronto. covers a broad range of live performance attractions inciuding stand-up comedy. large-scde musical productions. classical dance, and interactive dimer theatre among others. Toronto's image as a tourist destination is based largely upon the tremendous growth of this sector in the past decade (Mitchell, 1993; Cockwell and Milne, 1995). In spite of this sector's success as a draw for the city and as an economic contributor, it remains under-researched (Hughes and Benn, 1995). Use and adoption of ïïs such as box office software and CRS by this group is not well understood, According to interviews conducted, "CRS use abounds" for this group though access to the technology is not uniform (Toronto Theatre Alliance)- There is a large degree of differentiation between the commercial theaaes and the not-for-profit theaters; In general, the medium and large commercial theatres are linked to TiAs such as Ticket Master and Ticket King whereas the smaller commercial theatres exploit the relatively inexpensive RRSs. The small non-profit tùeatres, like most small attractions and tourïsm suppliers, remain Iocked out of CRS (Interviews; see also Cockwell and Milne, 1995). In this case, two of the four small PA'S are not using CRS. Barriers among the small and non-profit perfonning arts ranged from a lack of capital, to cornplains about the 'inflexibility of lT in accornrnodating their ticketing needs' (Interviews). As Cockwell and Milne (1995:7) state, smll theatres do not have the capital to participate in marketing and do not plan well enough in advance to appear on general, bi-monthly 'what's on' lists (the precursor to a CRS listing). Even less tangible than financial and technical constraints however, PA'S may also shun CRS because "it does not gibe with the theatre experience" (Interview, small PA). Unfortunately, an attitude persists among some managers in which the creative process and performing art experience is somehow compromised with the application of technology. Non-commercial and niche theatres are, according to one respondent, identified by the absence of representations of commercialism, such as technology. This attitude poses a significant bamer to IT and CRS adoption. The need for CRS use by small theatres has been recognized for some time now by industry representatives at the Toronto Theatre Alliance. This body, representing 140 members, has made one of the strongest appeals for a small theatre CRS. Ultimately, such a CRS would increase exposure and hence competitiveness for the theatres, yet strategies to overcome the financial, technical, and management barriers identified above have not yet ken set- For the immediate future therefore, CRS use by this sector remains polarized between the large commercial enterprises with access, and the small non-profit PA venues without. The educationaYmuseum (EîM) subset (Table 6-1) groups together attractions that impart knowledge and entertainment to users through a variety of processes such as art appreciation or educational exhibitions. As a group, however, this medley of atîractions is subject to the sanie shifts in economic cycles as other sectors. A combination of reduced leisure expenditures and severe budgetary cutbacks is producing an imperative for this subset to seek out new markets and alternative marketing strategies (linden 1992; Milne and Tufb 1993; Powys-Smith, 1995). Part of the strategy for the 1990's includes, according to Linden (1992) and Murphy (1995). moving away from the traditional 'elitist* visitor towvds more mpss, tourism and entertainment-oriented customers. Adoption of ïïs by Wssuch as CRS, muftimedia displays, and ticket management systems is another strategy gaining momennim (Gilling. 1995). These two trends are complirnentary - mass-oriented exhibitions are conducive to the adoption of volume-driven CRS. In this subset, 6 of the 8 atîractions were using some fom of CRS. The medium-sized educational venues were using RRSs and Ti to market and distribute part, if not dl, of their product. These comecaons were either full-the or for limited engagements ody- The adoption of mass-oriented exhibitions and subsequently CRS is not without its challenges however. As Milne and Tufts (19955) remark, the difficulty is in attempting to produce something for mass conswnption which may never have been meant to be enjoyed in that manner. Certain E/M's with very specialized, long-term exhibitions, and hence niche as opposed to mass appeal, had not adopted CRS. By contrast, those UM's which succeeded in establishing mas-oriented exhibitions and extensive marketing campaigns were those able to exploit CRS (Interviews). This trend applies to the sporting and gaming attractions as well (see Table 6-3). Relying on mass appeal, the challenge for this subset lies in the ability to fil1 a stadium or casino to capacity each day and night. Tomlinson et al. (1995) state that the key to attracting spectators Iies in more creative pricing tactics, sophisticated marketing strategies, and more 'astute' management of customer service elements. Needless to Say, proper applications of IT, including CRS, may satisfy both pricing flexibiiity and customer service requirernents. The two venues in this category adopted intemal CRSs with the goal of improved customer tracking and targeted marketing strategies (Interviews). High public recognition and attendance was ultimately necessary to support each attraction's interna1 CRS (Interview). No attraction-type trends were identified for the sections C and D (Excursions and landmarks) due to small sample sizes. 6.2 CRS Selection The respondents were asked to discuss their motivations for the implemencation of CRS in their attractions. Overall, the range of responses focused on the following: -Conmol of operations and management, - Improvements in productivity, and -Enhancement of customer service- As with the hotel sector, management anticipated improvements in productivity through the efficient execution of tasks, and reductions in human emr. As databases are developed, replacing manuai paper records and reducing instances of 'lost' information. transactions are easily perfonned and records quickly accessed. Lürewise, inventory control to prevent overbooking is enhanced through irnproved yield management functions. Lastly. the ability to exploit database marketing rounds out the general factors influencing adoption of CRS (Jones, 1993; CïC, 1995). Motivations for CRS adoption also Vary according to the types of CRS considered (see Table 6-41, Table 6-4: Motivations for diDterent type of CRS adoption/use RRS Ti Interna1 CRS Motivations Market Exposure Subcontracting of services Control (Mkt., inventories) Distribution Range Market Exposure Database Marketing Database Marketing Integration of ikm systems Main Users Small Perforrning Med/Large Perfonning Fiwith access to Arts Arts capital and technicai expertise Educational venues Educational venues 6.2.1 RRS The main reason for connection to RRSs was to increase the attraction's marketing and distribution range. Marketing budgets are Liniited and therefore, use of RRS enables an extension in market coverage at a fraction of the cost of additional advertising campaigns or other types of CRS. The primary mandate of an RRS is usually the promotion of a pvticuiar region and its tourism attributes - and not profit - thus subscnption costs are kept to a minimum (Sheldon, 1993; Buhalis. 1995). 'Accommodation Toronto' is one example of an RRS that sells not only its member hotels in the region but also many of the local attractions. The RRS is part of the city's MTCVA and HAMï operations. The 'Accommodation Toronto' hot Line is advertised as the organization's primary information and distribution source. in addition to MTCVA literature and trade shows, the annual MTWA membership fees paid by attractions include promotion and distribution Wugh this channel. Membeahip fees are staggered according to the size of the operation and therefore anaual fees paid by srnail attractions are in the "manageable" order of $1000 a year (Inte~ews). The cost for the reservation service is borne by the customer (approximately $3.50 per unit) and not the attraction, therefore keeping costs for the supplier to a minimum. The hotline has been able to ~nia profit in the order of $30 000 annuaily since 1992 through commission generation and service charges (Interview). Combining hotel and attraction sales, 18 000 transactions were processed in 1993. Combined packages featuring HAMT hotels and attractions began in 1992 and is expected to increase in the coming years because of tourist demand. Several small comedy theaters and medium-sized museums in the Toronto area receive fax requests for tickets and passes through this channel on a regular basis. This value-added benefit fiom MTCVA membership, incurred at no extra cost to these attractions was considered the "only way" to exploit CRS technology in Light of their Limited resources (interviews). 6.2.2 Ticketing Agencies The TiA systerns, in contmst to most RRS, are privately owned and operated distribution channels. Users of Ti& (prhnarily medium and large Perfonning Art attractions and medium-sized Museums) were attracted to these CRS in order to subcontract out expensive, labour-intensive services such as sales and customer service. The manager of a large theatre production company stated that when Ticket Marrer sells its products, the leisure and tourist public are guaranteed a standardized level of service and ease of access. RRSs on the other hand, due to the varied nature of their origins, mandates and functions, may not dways ensure the same level of customer service, 'selling ability' and market reach (Interviews; Archdale, 1992b). More than one PA and E/M respondent stated that resmcted resources prevented thern from expanding their own interna1 sales force to target anything more than groups. Considenng that group market share for these attractions ranges fiom 1% to 30%, the challenge lies in efficiently servicing the remaining 7046-9996 of the market comprising individuai sales (Interviews). The experienced telephone sales staff of the Ti perform this service at a fraction of what it would cost the individual attraction. In addition, TiA subscribers expressed their satisfaction with the client database that is generated and maintained on their behalf. A leading theater production company claimed that the strength of Ticket Màsier for its knlies in its ability to generate such marketing data. As of 1995, they possessed over 500 000 customer records, representing al1 ticket purchasers since 1985 (Interview). Fmally, the TiA is attractive to tourism firms requiring an increase in their market exposure and distribution channels. These attractions are drawn to the TiA in order to capitalize on the established, powefil distribution outlet. 6.23 Interna1 CRS Developing and operating an internai, pnvate CRS is another option available for attractions. During this study, two types of internal CRS were encountered- The less expensive option involved the purchase of a 'standard' reservation system customued to suit fkm specifications- For example, a smail boat tour Company in Montreal uses a CRS that is actually a converted golf course reservation system. The drawback of selecting this fom of pre-structured CRS, however, is modifying the system sufficiently to reflect the 'new' fm's business reality, and relying on costly technology consultants for customization. The Montreal Casino, on the other hand, a govemment-uwned gaming attraction, designed and developed its CRS fiom start to finish in accordance with the Casino's specifications. This method of internai CRS development is extremely costly, Whether adapted from other existing systems or designed and built to corporate specifications, management motivations for an internal system are similar and stem from a desire to control inventories, sales and marketing, and costs. For example, the marketing manager of a medium-sized educationai venue felt that her ticket prices could be reduced ttirough elimination of the profit margin charged by the Ti& (Interview; see also Buhalis, 1395). So long as the overhead costs associated with mnning an internai system remain lower than the TiA profit margin, the intenid system is "a gamble that paid off' (Interview). In addition, close monitoring of the identities of ticket purchasers on an internal system enables management at one large attraction to identify 'non-desirables' such as scalpen and shut them out- Einally, users of internai CRS claim that '%he ultimate in control is possible" through the execution of automated, integrated back office functions (Interview; Buhalis, 1995). These managers prefer to maintain constant supervision over al1 elements of sales, such as volume and markets, at al1 times. The third Party, external CRS presents, according to them, a barrier to such hands-on control. 63 The Impacts of CRS use on Attractions Respondents were asked to consider the impacts associated with CRS in three areas of their business: bookings/saies, customer service, and labour use/productivity. While quantitative information was largely lacking. respondents often provided impressions of CRS performance. These perceptions should not be underestimated because such emotional criteria often influence decisions to keep or change reservation systems. In general, it appears that the RRSs do not generate more than 3% of actuai sales and in most cases served only as information sources on the attraction. The RRS was viewed by its primary usen as a marketing tool as opposed to tool of sale. This low percenage of a actual bookings is acceptable for the attractions, however. because the RRS is not their sole distribution channel. The amount of bookings received outweighs the Low, or non-existent RRS subscription costs. Tihave a tremendous, and to some extent inevitable, impact on bookings because contractual agreements usually give the TAexclusive sales rights to the attraction. For the large PA attractions, this translates into exclusive distribution of aii individual tickets sales, or between 50-70% of total ticket sales (Inte~ews).Subscribers to Tiwere enthusiastic about the potentiai for the increased sale of packages through these distribution oudets. Ticket Master for example, has contracts with mmy attractions and it requires little effort to seli 'cornbinations' of their clients in the form of pacbges- The Director of Saies at one large attraction remarked that Ticket Mater is integrai to their ability to offer more packages "because they (Ticket Masfer) are doing the actual selling" (Interview). Here is the first bit of evidence supporting Poon's clah that flexible networks of tourism lkm can be efficientiy fonned via CRSs. Actual data on the impacts of internai CRS use on attraction bookings were not available- In most cases, the intemal systems were programmed to bandle group sales only. One theatre company, whose group market makes up 30% of total sales, processes 0 approximately 50% of these visitors through their internai CRS. Other respondents indicated that internal CRS bookings have increased over the years but could not claim that such increases were Linked to the implernentation of the CRS. They believe instead that combined improvements in productivity and operations, and more aggressive sales efforts resulted in the increased sales. One sporthg venue contends that the implementation of their own CRS has not affected their sales, positiveiy or negatively. Yet, by allocating funds previously reserved for Ticket Mater to an aggressive promotion of their 1-800#, this attraction bas been able to maintain sales while gaining control of inventory purchases. The majority of the CRS users were enthusiastic about the CRSs impacts on labour productivity. In the case of both RRSs and TiAs, increased productivity resulted from the transfer of some of the marketing and sales fiinctions to an extemal source. This outsourcing enabled the attractions to devote additional energy to targeted sales campaigns. Likewise, improved Iabour productivity with internal systems was achieved through the elimination of cumbersome (often manual) methods of sales and reservation tracking. For example, a smail excursion finn's traditional reservation procedure involved taking down three pages of information by hand on paper sheets that would be nled away. Their ptesent intemal CRS procedure, reduced to one screen page, is 'scripte& for easy data entry and record retrieval. Other improvements were gained as a resuit of the integration of the attraction's administrative systems - streamlining data retrieval and the consolidation of records between sales, marketing, operations, and accounting departxnents. A smail boat tour company's interna1 CRS for example, is housed at its head office in the Old Port of Montreal, but the system is also accessible at the 'billeterie' ticket booth on the dock, on-Iine, by the boat captain. Last minute reservations, requests, and supply changes are communicated in real the, thus improving operations at the dock. Such an increase in efficiency was an original objective of implementing the intemal CRS. When asked if pductivity improvements resulted in a change to labour requirements, al1 of the managers replied that no employees were laid off as a result of CRS adoption. Instead, staff assigned to sales and reservations no longer had to work overtime ''just to get the &y's sales in order" (Interview), An area where the potentiai benefits associated with CRS is not king exploited effectively is in yield management. According to Kotler, attraction "pric[ing] is not revised enough to capitalize on market changes" (1994:474; see also Anthea-Rogers, 1995). The hotel CRS, with its sophisticated data analysis software, is a vital twl in this practice. The CRSs used by attractions, however, are more static with respect to rate manipulation. Offen rates are set for customer type only - group versus individuai - and not availability approaching the event. Some managers stated clearly that they do not fluctuate rates to maximize seating inventory y ield management (Interviews with large attractions). There was no indication fiom respondents that such practices are likely to change. The use of rate classifications based on client type and product level will remain the standard, in spite of caüs by authors such as Go (1992) and McGuffie (1994) to adopt better yield management practices. The greatest area of CRS attraction impact is enhanced flexibility for customer service and marketing. As discussed eariier, one of the main motivations in CRS use is the attainment of detailed customer profiles amassed through sales and inquiries, and report generation (Jones, 1993b). The CRS for one large garning attraction: is very useful to trace the origin of customers. It provides a perfect snapshot of the customer on one page (Interview). In this case, the manager uses the customer database to identify productive, renun clients, and to nurture these relationships. The 'nurturing' is facilitated by accessing the database for customer characterisacs and preferences (e.g., birth dates). Another large attraction manager uses the database to extract tour operator reports to identifjr who canceled the most reservations and who had the greatest number of no-shows. Action is then taken with these individuais to either terminate business or identify the problem aad seek solutions. A few drawbacks to CRS use were identified. The external CRSs such as RRS and TiA must sel1 as many products as possible to recoup the costs of operation and marketing. The offering of so many diverse items, however. results in a lack of intimate knowledge of the products king sold by the agents. Pmblems arise when the Ti and RRS agents provide quantitative facts, but are unable to elicit the more qualitative 'atmospheric' information sometimes requested of the 'heterogeneous' attractions (for example, what the sets are like at the opera). The respondents who identified this problem are pssimistic about the ability of TiA operators in partïcular, to be as proficient in selling attractions as their intemal sales teams. For the clear rnajority of the users, however, the advantages of CRS use outweighed the financial comrnitments involved; increases in bookings, market range. and productivi were worth the relative investments in CRS required of participating attractions. Understandably, the larger the investment in the CRS by the hrm, the higher the expectation of positive impacts. Thus, the users of RRS had lower expectations than those attractions developing their own systems or paying for subscripaon to the Ti. Taking this guideline into account, it would appear therefore that certain firms will extract more benefit fiom CRS use than others. The next section iliustrates just what types of attractions are unable to exploit CRS effectively, highlighting the many barriers that exist based on a fm's size, market and management- 6.4 Barriers to CRS use by Attractions Four of the six attractions not using CRS were small in size. While the bacriers to CRS adoption and use by small attractions are similar to those faced by small hotels (see Chapter 3,there are severai additional issues pecuiiar to attractions depicted in Table 6-5. Table 6-5: Barriers to CRS adoption by Attractions Mananement Attitude Product non-standardized, Focus on local, domestic market, Want control of inventory and Inventory not computerized. not international tourist. attraction's market information No capacity limit to warrant Market purchase made at tirne of Do not want to sel1 tickets in monitoring of inventory. consumption, not in advance. advance. Low attendance/ low volume. Many distribution channels Satisfied with marketing and available to market. distribution status quo. Kgh- cost of development- or No on-going- - demand for Do not want to pay cost of CRS;do connection. attraction. not want cusGmer to pay CRS service charges. Source: Developed from interview resulu and Archdaie. 1992a: 16 6.4.1 Operation-related Barriers Computea require standardization which is essentially easily codified and categorized data. Some attractions. however, cannot (or will not) standardize their product for such ease of data enrry and maintenance (Ringle. 1994). Take for example a small excursion attraction in Montreal. This boat touring Company has existed since 1983 and has never used a CRS or sophisticated daîabase. While their boat tour deparnires do have certain standard characteristics (such as capacity per launch. and scheduled departures). these charactenstics fluctuate unpredictably. Poor weather cm play havoc with scheduled departures resuiting in cancellations, delays. or posponements. ln addition even though each boat tour has a Limiteci capacity of 100 customea per launch. the mixture/composition of the customers can Vary tremendously. Some passengers may be part of a tour package booked under a special group rate while other guests may be seniors enjoying a separate rate. The last minute 'walk-on' rate further complicates the total mix. For this attraction, there are no quotas set for each customer type per departure. In this case. the manager feels that a computerized system for reservations is inappropriate given the constant fluctuation in what should be fixed variables. This example contrasts dramatically with standardized larger attractions. Many medium and Iarge perfonning art attractions tended to embrace CRS technology because of its ability to control the sale of their seabng inventories. With a standardized product, set performance times, set venue. known capacity and set price range. database development was relatively simple. Other attractions rnay not use CRS simply because there is no need to monitor inventones to prevent overbooking or sellouts. CRS is more attractive to management when a iimited capacity per event exisu and the threat of overbooking is Likely (Inte~ews). Two educational venues chose not to use CRS at the present time because with increasing competition, the threat of overbooking is low. Should that situation change in the future however. both expressed the desire to adopt a system. The final. and perhaps most important, barrier is restricted access to capital. Even if a CRS is appropriate for the attraction. a lack of hinds may inhibit implementation (CTC. 1995; Archdale. 1992b). This is especially tme in the case of internal CRS where development cosu of approximately tens thousand dollars are usually beyond the reach of small firms (Interview). For this reason. RRS and TiA are more likely choices for financiay starved attractions (Buhalis. 1995). Government subsidized or commission driven RRS, and the service charge-oriented TiA reduce and absorb the costs of CRS connection for small firms thus making these systems accessible. The volume, origin, and purchasing behavior of an attraction's clientele also influences the decision to adopt CRS (Archdale, 1992). Small volumes are more easily connolled by non-CRS means: "if you are oniy getting 1000 custoxners per month, it is not wonh investing in a CRS*(Interview with srnail museurn). Such is the case with a smali Montreal educationai venue where "groups are not even booked every day so there is no need for a reservation system" (Interview). In these cases, market information that wouId otherwise be collected through a CRS (intemal or external) is purchased from other market researc h sources. Xn addition to volume, the geugraphy of the market is also an important to consideration in CRS adoption. To paraphrase Archdale (1992): if the attractions market is prïmarily local and domestic, extemal CRS use is not recornmended. Conversely, when the market is primarily foreign and tourist in nature, extemal CRS (such as RRS and TiA) are more useful in reaching and serving this market. Internal systems cater very well to local markets as telecommunication costs are reduced to manageable levels for the individual fm. One major league sport attraction, for example, relies on the metro Toronto area for more than 90% of theù total market which has easy access to the sport club's own 1-800# number. tikewise, the gaming attraction uses its own CRS to cater to its predominately Montreal market (86% of total market in 1995). When the market is continent wide or international in scope, RRS, TiA, and other external CRSs are used. If the ticket purchaser has little direct knowledge of an attraction, s/he is more iikely to consult a well-known distribution intennediary. Large PA'S adhere to this rule (Interviews). For one large PA with approximately 85% of its clientele originating outside Canada, the use of the extemal TiTicket Master to reach this market is strategically appropnate. CRSs are most useful for inventory control when the ticket purchase occurs at least several days pnor to the event (Archdale, 1992). Increasingly, however, consumers are prefemng to purchase their passes at the moment of consumption of the event (Interviews). In cases where rates do not fluctuate and consumers are predisposed to last-minute ticket purchases, the yield management fhctions of a CRS are underutiiized. Thus, one medium- sized education venue, with over 70% of its market composed of walk-ins, is not using a CRS. What is more appropnate for these types of attractions is an information-only database that serves marketing as opposed to distribution purposes. The main exception to this generalization is the pre-booking of groups which requires a degree of inventory management. Customen aiso have set patterns of purchasing behavior that affect 'where' they prefer to buy their tickets. For rnany attractions, several distribution channels are available including hotels, travel agents, tour operators, and coupon books. In these cases the use of a CRS is less likely. On the other hanci, when the customer is Iürely to obtain tickets from one recognized source, CRS use is more efficient Arrangements with Ti for example are often exclusive - guacanteeing the TiA the high volume of sales requued for profitability. Lastly, when demand for attractions fluctuates widely, use of CRS is less Likely to occur on a permanent basis (Interviews). In these cases. CRS can be contracted out for special eveots. For instance, a museum in Tomnto made an arrangement with Ticke?King to sell passes to a very rare exhibition in the fail of 1994. Museum management anticipated a high 'sell-out' potential for the exhibit and therefore contracted Ticket King to sell the passes exclusively (with the exception of at-the-door sales). If fiiture exhibitions promise to attract large volumes of visitors and risk selling out, the museurn will increase its use of Ticket King as a marketing and distribution channel. 6.43 Management-related Barriers Many of the smaller attractions are managed by a 'Jack-of-dl-trades'. In these cases, the manager not only controls the operations, but also has a hand in marketing, attraction production, accounting, personnel, and distribution. Some managers of this Srpe fear that 'control' of their fhm will slip away to outside hands and make decisions influenced by this fear. "Control of inventories is usually jealously guarded by each individual proprietoi' and therefore relinquishing control to an extemal CRS (RRS, fi)is not considered an option by such managers (Archdale, 1992a:16). This 'mind set' was applicable to four of the 24 respondents (three managed small theatres, and one managed a medium-sized museum). An interna1 CRS circumvents tbis concern by restricting external access to the firm's product information and prices. Other management barriers discovered included a lack of awareness of technology andor fear of change and risk. 'Rme managers thus catagorized believe that "the business can carry itself '; hence, there is no requirement for CRS. There is a dominant 'Wait and see attitude" with respect to future adoption of new marketing and distribution technologies. In the case of one small excursion attraction, the manager claimed that the tasks involved in mrining a business are so demanding, "Who has time to 'waste' playing with new technologies" (Lnteview). When pressed, it tumeci out that this manager did not have a good understanding of what technology options existed and became very ircitated at my persistent questioning. He was cieariy uncomfortable discussing issues relating to technology and perhaps this translates into avoidance of technology issues in his business altogether. [Attractions] often do not have the financial resources to be able to build awareness, create the conditions where it is tmly convenient for tourists to visit, and offer the value for tirne and money spent in an increasingly cornpetitive tourist market place. A key part of the solution is packaging, joint marketing and partnership among ... products of the same type, among ... products of different types and most importantly with ... towism parmers such as hotels, bus tour operators, retailers, etc. (Silberberg, 1995: 363) Given the number of baners to CRS adoption, it is important to evaluate strategies that exist to help overcome these obstacles and promote fmn competitiveness in this information age. As Silberberg (1995) notes, alliance activity is one of these keys to success for tourism fms (see also Dallaert, 1995). Attraction alliances enable the sharing among members of costs associated with market research, marketing, distribution, and administration, and the difision of ideas and industry trends (Interviews). Whereas hotel alliances tend to be based on common ownership (as with the chah fianchised properties), the diversity of attractions and lack of consolidation has resuited in attraction alliances based firm type, common market, andor spatial proximicy. For example, in both Montreal and Toronto, government ownedlaffiliated attractions work together in a variety of marketing and administrative capacities. In January 1995, Montreal*s B otanical Gardens, Insectarium, B iodome, and Planetarium formed an alliance in which the attractions share one budget ($850 000 in 1995) to produce joint promotional literature, conduct market research, and attend travel trade shows on each other's behalf. They are also working on common-therne exhibitions. Most significant, however, is the sharing of a reservations system between the Gardens, the Insectarium and the Biodome. One telephone number accesses reservations agents who are trained to selI ail of the 'linked' attractions. The challenge of this new arrangement lies in coordinating the activities and budgetary requirements of the four attractions - 'We need to get adjusted to this new way of doing business" (Interviews). Increasingly evident in this sector is the importance of spatial proximity in alliance formation. As Ddlaert (1995: 347) notes: the clustenng of urban activities can potentially open up new avenues for planning and marketing stcategies that are more successful in attracting urban tourism. The proximity of the Delta Hotel in Toronto CO the core of the city's theatre district, for example, make it the opportune and convenient location for both Ticket M'ter and Ticket King tenninals at the front desk. The businesdleisure traveler benefits from this value-added service which generates up to 1Oûû tickets sold per month for one of the large PASresearched, Likewise, the Delta Hotel clainis an increase in occupancy rates as a result of this joint offering (Interview; and Cockwell and Milne, 1995). Another alliance activity popular among spatially grouped attractions and considered to be a precursor to CRS packaging, is couponing. In Monmal. the Guide Palme and the Tournée des Grands Sites de Montréal are nvo examples of coupon booklets aimed at the Montreal visitor. These private initiatives collect fun& from participating attractions (in the order of $45 000 per year) and develop a brochure for region wide distribution (north east US, Que./Ont-). In rem, the attraction receives advertising space and a marketing report on who uses the coupon book. Montreaïs core urban museums have also designed ftee visitation days and joint marketing brochures. One of the most ciifficuit barriers to overcorne in fonning such relationships is a poor management attitude (Interview; and Cockwell and Milne, 1995)- The positive results of collaborative efforts must be shown to outweigh the benefits of independent, solo campaigns. As Silberberg declares, one must rnove beyond the 'what can you do for me' attitude to 'what can I do for you' (1995: 364). This is a challenge however as one smali excursion manager stated following a "disastrous" joint couponing vent., "we do better business on our own". With assistance fiom various levels of govermnent, the acadernic community, and other cornrnunity business bureaus, mutual mst and cooperation can be established over the long term among the diverse tourism attractions and firms. 6.6 Future technologies CRS represents just one of a plethora of new technologies entering the tourist market place. Four of the educational venues are examining CD-ROMs as a means to relaying information about their exhibitions to the public and travel agents. As of 1995, SU attractions were either already listed or considering comection to the Internet. At the time of writing, the number of attractions with web sites was eight. For many of these attractions, the Internet listing is an information-only advertising venue and does not entail resewations or sales- It is interesting to note that the attractions in this sample considering internet are either medium or large in size, thus indicating the continued disadvantage of srnall attractions vis-à-vis their larger counterparts. Intemet web sites can cost in the order of Slûûû a year thereby putting this option out of the reach of srnail individual attractions (Interviews), As the cost of this technology demases however, it should present less of a barrier in the future. In the meantirne, the use of a marketing alliance by several srnail attractions however could circumvent this budgetary restriction. Other IT interests mentioned by managers include video brochures, and interactive touch-screen directories at airports, hotels and border stations, When selecting new technologies, the respondents frequently stated that there is always an imperative to balance exposwe and distribution pnorities with the budget. Given the common restriction on resources, difision of IT and CRS in attractions will continue to be slow and guided by IT specialists, such as TiA representatives and tecbology consultants, as opposed to tourism industry specialists. This shouid not be the case, however. There is a pressing need for tourism marketing and distribution technology specialists to help tourïsm fims decide what technologies are most appropriate for their particular business situation- The use of industry associations and alliances is one possible method for expediting the diffusion of information. It is not enough, however, to rely on the private sector alone to determine the best methods of technology adoption by tourism firms. As discussed in earlier chapters, the marketing of accommodation, attractions, and hence, destinations, through the CRS is gaining in momentum. Chapters 5 and 6 demonstrated that the type of products marketed are the iarge establishments often associated with multinational chains of develop countries. It would appear, therefore, that CRSs wiU heighten the marketing abilities of 'destinations' that have a high proportion of large, internationalized products, while limiting the opportunities of destinations characterized by small and independent establishments (Beaver 1992). The Montreal and Toronto tourism products are, of course, a mixture of such smalYindependent and large/muitinational-type tourism firms. A potentiai danger may lie, therefore, in the representational skew of the mixture of fimu. To Say however, that Montreal, with a larger proportion of smalyindependent tourism suppiiers for example, wili not have as high a profile in CRS representation than Toronto is to step too far down the path of technological detenninism. There are several local mitigating factors that may influence Montreal's profile in the international CRS marketplace; in addition to local management and industry factors, the public sector's activities are integral to determinhg Montreal and Toronto's profile in this CRS examination, The following chapter describes some of the activities undertaken by the federai. provincial and municipal levels of govemment in promoting technology adoption among the hotels and attractions of Montreal and Toronto. DESTINATION PROMOTION AND THE ROLE OF GOVERNMENT This chapter provides an ovemew of public sector involvernent in tourism technology initiatives focusing on the three scales of govemment regdation found in Canada - federal, provincial and municipal. In particular, 1 dixuss the mandates and tools used by the various bodies to encourage technology adoption by Canadian tourism tirms. The provincial RRSs (Resewations Quebec. CRIS) and municipal organizations (OCXGM, MTCVA) are evaluated for their marketing mandates and effectiveness in selling the towism products of Montreai and Toronto. 7.1 National Tourism Policy and IT With an increasingly segrnented and specialized travel market, the promotion mandate of national tourïsm offices is being severely challenged (Canada Export Strategy, 1995). Traditional tools used by nations for tourism marketing and promotion include a network of information offices located in prirnary markets and throughout the destination itself, the production and distribution of brochures and tourist guides, and extensive advertising campaigns in a variety of media (Sheldon, 1993). Unfortunately these traditional methods are no longer as effective due to fuading cutbacks in much of the West world (resultîng in foreign and domestic office closures and reduced ad campaigns) and poor usership of these tools by the increasingly niched markets (Canada Export Strategy, 1995; Ashworth and Detlaan, 1986). The transition of marketing media from 'paper-based' to 'electronic-based' is slowly gaining rnomentum. NTOs around the world are beginning to explore the potential for technology to relay tourism information efficiently to the traveling public. For example, the Tourism Council for the South Pacific recentiy undertook the role of "CO-ordinator and implementor of the new technology initiativeT*for the region (TCSP. 1992: 16). Canada's NTO, the publidpnvate Canadian Tourism Commission (CTC), is likewise evaiuating technology's potential to improve marketing initiatives. The need for such an evaluation is pressing as Canada faces new threats to the recent success of its tourism industry. Canada must increase market share rather than reIy on expanding markets (GM Robinson Associates, 1993; Canada's Export Strategy. 95/%.). This approach requires utbation of sophisticated marketing techniques and technologies not only by the CïC but Canada's tourisrn products as weil. The Canadian Tourism Commission is responsible for the promotion of Canada and its regions in international travel markets and "to support and improve the Canadian tourïsm industry 's international competitiveness and increase prfitability to create jobs" (Canada's Export Strategy 953). This commission is supported by the provincial bodies which promote their respective regions domestically and, where budgets permit, internationally as well. The CTC's tourism resource development strategy includes an evaluation of technology use by the Canadian tourism industry. At a meeting in 1994 of industry representatives fkom technology, tourîsm and government sectors, a special board - the NationaI Advisory Board on Tourism Technology (NABTT) was established and produced a smdy in 1995 entitled 'Technology and Tourism Marketing in Canada'. According to the report, Canada is a leading nation with respect to the use of information technology in its tourism industry. Through a variety of information technology applications such as destination management systems, intelligent highway systems, and Intemet pilot projects, Canada's tourism suppliers hold a considerable advantage over mmy of their international counterparts. Nevertheless, several problematic areas were identifïed. Fit and foremost, the report concluded that electronic information on Canada is not readily available 'electronically' to the traveling public. While certain RRSs are starting to address this deficiency at the domestic level (see Provincial role), there are many strategic problems associated with their development and implementation. A lack of comectivity between the variety of small RRSs prevents the existence of a nation wide system that could service inquiries on a cross-Canada scale. This is characterÏstic of a Canadian tourism industry that some commentators describe as divisive and hgmented (Mowat, 1995). If a national system is to evolve, the industry must move away fiom isolated systems to more coordinated and interactive module-like regional systems. Establishing guidelines for compatible systems development will only help in the long term establishment of nationwide, and international*reservation access. Ultimately, tbe NT0 must .., become involved in intemational regulatory policy issues, especially in relation to telecommwications networks, so that linkages to other systems worldwide can easily be achieved (Sbeldon, 1993: 648). Facilitating such connection. however. is a difficult task considering the variery of interfaces, file and database structures in use. In Europe, for example, establishing a network of systems has been extremely problematic: Despite the efforts of severai individual national authorities and to a Limiteci extent of the EC itself to develop coordinated national or international systems, the opposite trend appears to be gathering speed - that of an ever increasing range of local applications and an intens-ing cornpetition between them and other more traditional methods for product distribution, sales and customer marketing (Archdale, 1992b: 35). In addition, the NAB'IT report highlighted many concems of tourism suppliers regarding the diffusion of technology including: a Iack of awareness of technology products and their applications. limited financial resources for the adoption of technologies, and a lack of integrated planning for nation-wide technology adoption. The need to address these areas is urgent if the diffusion of technology is to gain any momentum. While much has occurred to promote CRS use by the retail travel sector. tourism suppliers are often the neglected variable of the tourism system equation. According to a senior researcher at the Conference Board of Canada, Nothing is king done ... for the people who have the product to sell. on the other side of the equation. (Tbere is) notbing to help them make decisions and nothing to encourage them to get connected; nothing to promote the idea of getting connected (Interview, 1994). As a result, the CTC has developed its own marketing technologies to assist in the promotion of these Canadian suppliers. In 1995, Tourism Canada (with a private technology firm) developed a CD-ROM highlighting Canadian destinations and distributed it to major American tour operators. In addition, the Business Opporhmities Sourcing System (B-0-S-S),an on-Iine computerized database, was diversified in 1991 to inciude a module devoted to export-ready Canadian tourism businesses. One of the prirnary goals of the CïC,in cwperation with the Conference Board of Canada, is to encourage technology adoption by tourism suppliers. This is to be carried out by stimulating interest through a senes of seminars, conferences and meetings across the country. Presently, Industry Canada produces training manuals and holds seminars nationwide to help tourism suppliers impmve their competitiveness through effective marketing. The range of topics includes: 'Packaging of festivals', 'How to do business in Europe' and 'Developing business opportunities thmugh parmenng'. These wodtshops and 'how-to' publications are geared towards the firm manager and provide concrete examples of the strategies at work as well as realistic planning and god setting objectives- Extending this format to include issues of technology should follow. In conclusion, the report suggests that the NABTï should "provide information and education, facilitate cooperation and discussion, set broad guidelines for development and implementation, and create an enviromnent that fosters connectivity" (page 17). In order to address and overcome the problems identifie6 the NABTT shouid coordùiate and facilitate interaction between the various members of the tourïsm and technology industries. To meet these challenges, the federal govemment is increasingly inviting the participation of the private sector in the development, promotion and regulation of tourism. The CïC, with private industry representatives comprising over 2/3rds of the board, is a prime example of federai level publidprivate initiatives. More specificdy, the report recommends providing towism suppliers with a diable information source on technologies and their applications, and the development of coordinated, complementary technologies to better service the travel market place both here and abroad. 7.2 Provincial Initiatives and the RRS Provincial tourisrn offices are responsible for the promotion of their respective territories domestically, and intemationally in cooperation with the Department of Foreign Afîairs and International Trade Canada and other provinces. Both Ontario and Quebec. the two provinces that concern this thesis most directly, have identified their unique selling points and adopted a 'product-theme' based marketing approach. Increasingiy, regional tourism bodies around the world are opting to use the RRS as an additional dismbution, marketing and management tool for their industries (Archdale, 1992a,b; Sheidon, 1993; Buhalis, 1995; see Chapter 3). Ontario and Quebec have both dealt with the implementation of RRS with varying degrees of success. The following discussion highlights these two experiences. Tourism Ontario and Tourisme Quebec relay their destination images and slogans to the public through a variety of media including pnnt, broadcasting, and press reIeases. These messages ofien promote use of the provinces' 1-8Wsfor additional information on individual destinations, attractions, accommodations, and other product elements. The success of these toll free nwnbers when measured in volumes of caüs is enormous. Quebec's 1-800-363-7770for example, processes 850 000 to 1 million calls a year (400 0 through the 1-8W, 300 000 requests at border crossingr, and another 2-300 000 inquiries fiom tourism offices abroad) (Tourisme Québec, Interview 1994). Likewise in Ontario. approximately 3 million inquiries are made annually for information (850 000 thmugh the 1- 800-ONTARIO, 2 million from the 18 crave1 information centers across the province) (Tourism Ontario, Interview 1994). Telephone operators for the toi1 fiee numbers access a comprehensive database and use key word searches to find the province's tourism attributes. As information is generated for the customer, the inquirer's name and address is added to the customer database for future market analysis. A constant challenge faced by the information system managers however was assessing how many requests for information translateci into acrual bookings and sales. The development of a point-&-sale system or RRS afcessed through the 1-8001t was viewed as a means of determining this conversion. Additional incentives for development of an RRS include its ability to : increase the quaiity of tourism information at agents' disposai, extend the reach of the information distribution network, close the sale on the phone, amas a wealth of market statistics, and contribute to the packaging of tourism suppliea and services (Tourisme Quebec, 1986). Ultimately, the conversion of calls from inquiry to sales was to be the main motivation for implementation of the RRSs in the two provinces. The driving forces behind the development of Quebec's Réservations Québec and Ontario's CRIS differed however. 7.2.1 Réservations Québec Tourisme Québec had initially shelved plans for RRS development after a 1989 feasibility study revealed extremely high hardware and software costs. In the early 1990Ts,a private cornputer consulting firm re-introduced the study to suit more modem scenarios. Costs had fallen sufficiently to warrant development of 'Réservations Quebec' (RQ) at a cost to investors of $14 million (with a $5 million dollar guarantee by Tourisme Quebec). The principal private investors were a software developer, a financial institution, and a hardware supplier @ubé, 1993). According to the provincial governrnent, the mandate for the system was straightforward: to support the tourism industry, without public-sector commitment, with an information and reservations system. As with most RRSs, Listings were provided €ree of charge for the tourism supplier who paid a commission of 1046 to the reservation service for bookings generated. A revised feasibility study forecast that RQ would increase the volumes of total reservations in Quebec by 1%. This percentage would translate into an additional $26 million for the industry (Tourisme Qu6bec, Interview, 1994). Despite these high expectations, however, RQ closed its dwrs after only 15 months of service. On March 16. 1994, RQ ceased operations after accumulating losses in excess of $13 miilion dollars. The literature has identifled several factors that led to the faiiure of RRSs (Archdale 1992a,b; Buhalis, 1993,1995; Milchen and PoUack, 1995). These include confked business objectives, a plethora of conflicting developments within nations, little inter-NTO discussion andior cooperation, an absence of technicaI, cornmerciaI or data definition standards, and, among O thers, 'band-wagon' reactive system development- In Europe for example, many systems have failed because they were "disparate, often confiicting, inefficient in operation, and expensive" (Archdale, 1992b: 35). One of the problerns identified in RQ was that the tourism industry was not sufficiently involved in the planning and development process. Not only were industry consultations kept to a minimum, but "the political wili was not there" to complete the project (Interview, 1994). With a lack of government and tourism industry direction, the development of the system was left in the hands of the other private, non-tourism industry investors listed above. It has been suggested that the motivation behind RQ was 0 'misguided'. Instead of servicing the province's tourism products and services in a 'tourism marketing environment*, other incentives had intervened. 'Ulterior motives' such as the development of a network infrastxucture that would become the source of revenue fiom the provision of other services, were driving the development of RQ. For example, the hardware firrn would benefit by outfitting the reservation service with cornputers, and the financial institution would gain access to and control the financial transactions on the network. UItimately however, these private enterprises lost their investment in the venture as a result of RQ's poor performance. The lack of industry consultation resulted in extreme resistance to the RQ project by the Quebec chapter of ACTA. This group stated that the organizers of the system were "unapologetically" cutting them out of the tourism system by facilitating direct reservations and taking their cornmissions (Interview, 1994). The justification for these fears is debatable however as most Quebec travel agents rely on outgoing as opposed to incoming customers for the majority of their business (see Pohlmann 1994). Successful lobbying on the part of ACTA-Québec resulted in the delayed opening of RQ. Promotion of the system abroad on France's Minitel system Meralienated French tour operators, resulting in lost investment by these groups to the province and for the systern- Instead of concentrating on the domestic or regional market as recommended for RRSs therefore. RQ was competing within the tour oprators domain in the overseas, international market, This contrasts for instance with the mandate of the Danish Tourist Board's destination database, DANDATA, which was designed and targeted for the crave1 trade as opposed to acaial tourisu. By offering the information se~ceto the pave1 intermediaries (wholesale and retail), the DANDATA service was not cutting them out of the distribution chah Such a distribution suategy should have been considered for Quebec's overseas market (Archdale, 1992). In addition to questionable motives and poor consultation processes, the RQ project may also have failed as a result of its overly ambitious design. Developen had wanted to establish a complete reservation and information system in one single phase @uM, 1993). Histo~yhas shown that such large-scale endeavors are not as succesmil as multi-phased implementations with periodic adjustments (see TCSP. 1992; Archdale, l99Za, b; Buhalis. 1993, 1995). Under the muiti-phase approach. operating problems may be identified early and perhaps remedied More the next phase of implementation is begun. Ultimately, however. it has been suggested that poor financiai planning led to the evennial collapse of RQ (Interview. 1994). According to RQ management calculations, 150 000 reservations were reqvired in the first year of operation in order to break even. During this required time period however, less than 23 000 reservations were actually obtained (Hei~ch,1994). In addition to the prperformance in reservations, it has been suggested that RQ management had not conceived of a realistic conversion rate. A breakeven point for sales conversions is dependent on several factors: the fïxed costs of Iabor and telecommunications, the duration of the phone cd, and the percentage of phone calls converted into sales. Take the following example using approximate figures: uiau Cost Labour $0.30 1 minute Telecommunications $0.30 1 minute -- - Total W.40 1 minute 5 minutes x $0.60 = $3 .ûû / caN. Convert 1 cali in 4 = îS% conversion rate 4 calls x $3.00 = $12.00 in costs Commission, 1 cd= $12.00 (10% - $120.00) With fixed labour and telecommunication costs of 0.30s per minute, total costs for a call are in the order of $0.60 per minute9. If the average phone cdrequest talces 5 minutes. the cost per call is $3.00. Should the operators succeed in converting one cali for 9 For a 1-800 North Amenca wide se~ce,the cos& arc approximatdy $1.00 pcr minute aftct toii costs and cal1 centre costs are considered (Milchen, 1995) 97 information in four into a sale (a 2S% conversion rate), the total costs for labour and telecommunications of the converted call are $12.00. Assuming the average booking is $120.0 (for a two night stay), a 10% commission generates only $12.00 for the booking service i.e., it breaks even. If the length of cdincreases, or if the conversion rate fds to one phone call in five. the reservation service wiil acmally loose money. The RQ se~ce was losing an average of $20.00 per converted phone cali after commissions (Tourism Ontario. Interview, 1994). It did not cake long for the debt to accumufate considenng RQ's conversion rate during operation was only 5% (Ibid.). In light of its poor experience with RQ. Tourisme Quebec has retreated from RRSs and is focusing on its 1-800# service. The Director of Marketing for Tourisme Québec does not rule out the re-introduction of an RRS in the long term but certainly discounts any consideration of the project in the next few years. The impact that such exclusion fiom RRS participation will have on the province in generai, and Montreal in particular, will depend on the success of Quebec's advertising and marketing campaigns. and the rate at which other c ompeting destinations implement their Own sy stems. thus gaining advantage over Quebec. Other, more 'manageable' marketing technologies such as a CD-ROM are king considered for tourism promotion in the near future. The development of 'safer' and less expensive technologies, such as a Web site (see the following discussion), may provide successful alternatives for the province and the tourism establishments of Montreal. 7.2.2 CRIS - Central Reservation and Information Service In May 1993. the CRIS 'pilot' project, a Tourism Ontario initiative, was implernented. The initial RRS concentrated on eastem Ontario, listing just 5% of the province's total tourism product. During the pilot phase, over 2700 reservations were received through the CRIS system, covering 92% of the 170 participating hotel establishments. Despite the relatively low number of resewations obtained during this period, Tourism Ontario regarded the pilot project as a success due to positive consumer and navel supplier feedback. Following a favourable independent evaluation of the project, Tourism Ontario decided to extend CRIS'S geograptiical scope to the rest of the province beginning with the Toronto/Niagara Falls region. CRIS appears to be off to a more positive start than RQ. This can be attributed to several factors. Io contrast to the non-tourism based private initiative bebind Quebec's RQ project, development of CRIS was undertaken as a resuit of travel industry pressure (Interview. 1994). CRIS was an entirely government funded-public project and as such, adhered to the province's mandate to service the tourism industry through appiication of sophisticated resewation and marketing technologies. Extensive consultations twk place benueen tourism government officiais and indusîry representatives at public meetings designed to elicit ideas for the role, design, and implementation of the system. Indusny consultation was perhaps the most significant ciifference between the Quebec and Ontario systems and may explain why the Ontario system has more support to continue. ACTA-Ontario was involved from the beguining in CRIS'S development and continues to offer its support. CRIS developers incorporated ACïA opinions and concems expressed during the project discussions. Furthemore, the CRIS system, as with most RRSs, services primarily the domestic leisure, as opposed to the corporate travel market. Corporate travel is responsible for up to 85% of revenues for Ontario travel agents (Interview. 1994). Once it was realized that CRIS was to fi11 the domestic leisure niche and not theu corporate market, any thoughts of opposition by the association were quellecl. If in the fuhve the CRIS system attempts to enter the corporate or outgoing market, ACTA-Ontario may mobilize to ensure that its temtory is not threatened (Ibid.). In contrast to RQ. the srnail-scale development and multi-phase implementation of the CRIS project permitted a more controlkd and closely monitoted performance of the system. With total opration and production costs under $2.5 million. clear financial analysis presented more reaiistic targets for break-even points and profitability (CRIS, personal interview, 1994). During CRIS'S pilot project, slightly better conversion rates of 10% were obtained. Based on their cost projections, however, 30% conversions were required for profitability'O. In spite of the industry support and precise fiscal planning evident with CRIS, this RRS continued to face considerable hurdles. The bottom line is that few, if any (RRS) can exist profitably unless the costs of information provision are shared among the beneficiaries of increased visitation to the destination (Mitchen, 1995: 33). The challenge for CRIS lay in reducing the costs of reservation service provision without burdening the travel industry or the tax paying public with additionai charges. Achieving this task was to prove difncult for a government with unionized labour restrictions and hence, fixed costs. In order to ensure the viability of the system therefore. plans to privatize were irnplemented. The favoured suitor for CRIS was a teIecommunications company that couid controi and reduce both labour and teiecommunication rates. In the winter of 1995, such a company - Bell Global Solutions, 10 In their 1995 review, Milchen and Pollack did not find a Canadian information rescrvation service with a conversion rate above 33%. owner of the Baxter Travel Group - negotiated to assume control of Ontario9s 1-800# information line and, therefore, control and operation of CRIS (m.Dec. 14 and 21. 1995). The effect this privatization will eventudly have on the mandate, scope and operations of CRIS remains to be seen. Should profit become the primary goal of the service. history has shown that there is a nsk smail properties will not receive the same degree of service as the larger. more lucrative properties (Buhalis, 1995). Future evolution of CRIS as a CRS will depend on increased connectivity with other reservation systems. The costs for interfaces between systems vaty. The Fantasia CRS based in Australia, for example. charges approximately $10 000 USD for CRS communication specifications only (TCSP, 1992). In Ontario. increased comectivity should include linking up with 'Accommodations Toronto' and eveatuaily to a GDS like GuZiIeo Canada, 73 Municipal Information Technology initiatives The primary goal of municipal tourism organizations (MTOs) in tourism promotion is to increase the numbers of visitors to their cities. Integral to this goal is the provision of information, yet identifying what information is required, and how best to collect, store, process and deliver it are al1 matters of some complexity (Archdale in Harms. 1991: 127). In Montreal and Toronto, this responsibility is delegated to the private. non-profit associations of the OCTGM (Office des Congrès et Tourisme de Grande Montréal) with 700 travel trade members, and the MTCVA (Metroplitan Toronto Convention and Visitors Association) with under 50members respectively. The two organizations conduct resemh on new travel trends, including business opportunities in new market areas, carry out statistical tracking of visitor attendance, and underwrite destination marketing strategies. Promotional tasks conducted by the two associations include tourism product advertising to targeted markets, and. to varying degrees, the direct referral of potential visitors to their tourîsm supplier and service members. In order to ataact the desired markets, both organizations utilize a variety of traditional strategies to relay their messages including a heavy reliance on print and broadcasting. ïncreasingly. this array has evolved to include certain fonns of technology such as regional reservation systems ('Accommodations Toronto*, RQ - until 1994). destination databases (TravelFile), and the intemet- The OCTGM for example, is evaluating the impact of the information highway on destination marketing in cooperation with the cable provider, VideoWay, and Tourisme Québec (Annual Report, 1993; Interview, 1994). Likewise, Toronto has an evolving Intemet listing in cooperation with the province of Ontario and the Toronto Star news service. While each city is dosdy monitoring technological developments that may be applied to their tourism products, funding cutbacks could make it rncuit for both cities to maintain saies and marketing efforts at even current levels (CTP, Iune 15, 1995). It is in the access to and exploitation of marketing technologies that a difference between the two associations is evident. While destination databases and Internet access compiememt the dissemination of travel related information, it is the RRS that can actually disiribute the travel product to the tourist. Toronto is presently able to exploit this particular distribution technology while Montreal is not. This technological advantage correspondingly has had a positive impact on the marketing activities of Toronto's hotel and attraction members. Regardless of the content of the marketing campaign therefore. the elecfmnic distribution of the tourism product is better executed in Toronto and, consequently, it has a strategic advantage over Montreal. Toronto is promoted and sold through its link to the HAMT reservation system hotline, 'Accommodation Toronto', that represents the city's hotels and some attractions. Acccding to the Director of Information Services at the MTCVA, theu affiliation with the HAMT system, after several years of trial and error, is proving to be "productive and worth~~e".Aside fiom the use of a regional reservation system for their members and visi tors, he feels that, in light of the possibilities, the MTCVA is still at the embryonic stage in their application of technologies. The MTCVA is cwently "exploring the possibilities" but is ductant to commit to any new project before a thorough cost benefit analysis. Montreal bas not been able to offer its callers a reservation service since the demise of RQ in 1994. The lack of a technological interface between their mernbers and potential tourists has not gone umoticed however by the Director of Research and Development at the OCTGM, He admits that the Association is approximately five years behind in technological explohtion and adoption and that it is difficult for the research team to detennine which prodocts and channels would be most effective for them considenng their cost limitations: Usually we have a clear idea of strategies and future goals, yet with technology, we do not know where (as a society) we are going (Interview, 1994). For the irnmediate future, the Association has pnoritized development of a sophistiuted database on the city 's tourism attractions and attributes in order to increase the association's ability to disseminate up-tdate information (TEORUS, 1995). Other marketing technologies used include the Internet and Travel Since 1994, theif presence on Travel File (at a cost of $6000/ year) has resulted in "excellent consultation'' by uavel agents with approximately 70 000 hits in the fmt trimester of 1995 (Ibid.). Their Internet address, in collaboration with Tourisme Quebec, takes the inquirer through menu driven requests to approximately 200 bilinguai pages of tex& images and maps. As far as future developments are concemed, Bellerose believes that more and more consumers will be performing direct access bookings/resecvations by the year 2000. He foresees the OCTGM's marketing activities directed less at print media and increasingly by way of technologies such as CD-ROM and the Internet. in view of this trend he would like to eventually establish a reservation channe1 through the OCïGM to the association's tourism members. Such a reservation system would be interfaced with the travel products database described above and the participating properties and attractions. There has been no discussion yet pertaining to this system's funding. 7.4 Public Sector Impact on attractions and hotels The attractions and accommodation sectors of Montreal and Toronto rely to varying degrees on the OCTGM and MTCVA for their promotion (thtough membership payments). According to those surveyed, the hotel sectors are well serviced by each city's association, especially in the area of marketing, For many of the larger hotels, the solicitation of conventions for the city is seen as an important role of the MTO. According to a few hotel respondents in both Montreal and Toronto however, the MTO's were "biased against the small independent properties that do not cater to the convention market" (Interviews). For these hoteiiers, the MTO's encouraged the activities and joint marketing campaigns of the Iarge chah type hotels and tended to neglect the smaller properties. Once again, the advantages of size and brand affiliation for hotels in promotion are evident. With respect to the attraction sector, there is more consensus within each city on the impact of the MO'S in tourisrn promotion. in Montreai, many attractions expressed dissatisfaction with the marketing efforts of the OCïGM. These respondents, educational venues in particular, felt that the value of attractions in drawing visitors to Montreal was under-appreciated. Museums for example, did not beiieve that they were considered by OCTGM representatives to be a significant component of the city's tourism product. This view was supported by Milne and Tufts (1995) research on Montreai's museums in which several managers argued for a more visible and extensive packaging of museums as part of the destination's tourism product. More than one attraction respondent suggested that the OCTGM's marketing priority was given to the hotel sector. As a collSeQuence of combined lobbying strength. hotels extracted "more than their share" of the marketing efforts fkom the OCI'GM. Montreal attractions have few other sectoral associations beyond the OCI%M. There was linle interest in marketing alliances and a high degree of suspicion of cornpetitors' actions among the sampled group. The opportunity to change this sentiment and foster a more interactive, cooperative aanosphere in Montreal exists however. The OCfGM can take an active role in fostering such interaction and cwperation by increasing the packaging and promotion of integrated tourism products. Just note the success of the city's "FuntastiQue ' promotions. This campaign unites more than 100 of the city's tourist and culturai attractions, a significant increase in panicipation from eariier years. The increasing popularity of this type of campaign among suppiiers and tourists suggests that there is a mornennim that can be capitalized on. in Toronto, 12 of the 15 attractions contacted were satisfied with the promotional efforts of the MTCVA. Of greatest value to this group was the packaging programs offered to visitors and sold through the HAMT hotline. Carnpaigns such as RSVP (Remarkable Summer Value Packages) brought together hotels and a variety of cultural, sport, and leisure attractions in a flexible format for tourist consumption. For participating attractions, the popularity of these package arrangements resulted in an increase in bookings by a 'Lfew" percentage points. For consumers, the success of the RSVP is attributed in part to the ease of purchase facilitated by the 'one-stop shopping' reservation system. According to the head of Membership Services of MT,many of the operation's resources wilI be devoted to increasing these packaging alliances with the MTCVA members in the future. In addition to packaging campaigns, the MTCVA provides a forum for attraction managers to discuss issues of concern including marketing challenges and bamers to successful operations. Perhaps the most significant role of this Attraction Council however, is in deterrnining strategies for the sale of Toronto as a destination. Several Toronto attraction respondents participating in the Council claim that if awareness of the city as a destination in the tourism market increases, attractions will likewise benefit from increased visitation. 'Toronto for the Arts' is a prime example of a joint industry-governrnent funded collaboration. In this alliance, school groups from outside of Toronto are invited to learn about the city's theater industry. The students attend back stage rehearsals and tutorids at theater houses while staying in city hotels, dining at Toronto restaurants, and sightseeing on bus and boat tours. As a result of this campaign, outsiders*awareness of Toronto as a theater destination and provider of attractions and amenities has increased while participating tourism suppliers benefited from increased tour business. Many of these joint marketing packages are avaiiable through the HAMT hotline andor Ticket Master, again emphasiting the economies of sale afforded by this type of reservation technology. The potential exists for Merdeveiopment of tbis channel for increased touïsm package promotion. This evaluation of public sector activities and tourism promotion supports Page's (1995: 158) statement that: Urban managers and planners need to constantly assess the city's position as a tourkm destination in the changing business environment of the 1W's to tdce imrnediate and strategic action to ensure the locality retains its compe titive position vis a vis other destinations. The MTCVA, through tecfinoiogy adoption and alliance formation has been able to create an environment conducive to joint initiatives, thereby increasing awareness of its city 's tourism products. With increased interaction and coilaboration, the hotels and attractions are overcoming protectionist impulses within their fimu and recognizing the advantages of promoting the destination together. The RRS of HAMT (and the soon-to-be expanded CRTS) is the vehicle with which these alliance fonns are created, manage4 rnarketed and sold. The OCTGM on the other hand, according to Montreal attraction and hotei respondents. has not fostered such a cooperative environment. As a result, rather than realizing the gains of economies of scale in advertising, there is a substantid duplication of marketing efforts. In the past, Tourism Quebec has noted that, .. .internationally, Montreal enjoys a better reputation than Toronto but does not capitalize on it enough, tourism promotion is timid and marketing is unimaginative (Quebec Tourism, 1992: 23). A danger exists, therefore, of allowing extemal CRS to exclude a large proportion of Montreal's tourism firms, thus reducing the city's marketplace profile. However, while Iacking sorne of the technical infrastructure of a CRS, the city cm, in the meancime use its sophisticated database to design, organize, and manage tourism packages to a greater degree. This is perhaps a greater priority than RRS development given Tourisme Québec's recent experience. The OCïGM should recognize the importance of attractions in drawing visitors and develop the city's image in accordance with this sector. The £irst step however, is overcoming the 'stand alone' and distrustful attitude evident in many attractions managers. The city should attempt to foster more cooperative, non-cornpetitive interaction among its members, for in doing so, the city benefits. Foiiowing the MTCVA's example, the OcrGM could provide a forum for such interaction on a monthly or perhaps trimester basis. Through concerted effort, triai and error, the city's tourism supplien can succeed in developing reiationships that, with the aid of CRS technology, will increase not ody th& exposure, but the city 's as well, CONCLUSIONS This chapter presents the key themes and issues that have arisen fkom my empirical review of CRS use in the Montreal and Toronto hotel and attraction sectors. 1review the major results of my research - highlighting the complexity of the findings and pinting to the difficulty in discerning clear cut trends ethgthe sectors. 1 then examine some of the policy-oriented and theoretical implications that stem hmthe research. In conclusion 1 sketch out a research agenda that could help us to better understand the vitai role that information technologies play (and will play) in molding the touism product and in influencing the Links between the industry and processes of urban economic development. 8.1 Hotels, Attractions and CRS In general, CRS technology is perceived as a positive addition to the tourism ind- embodying many benefits for those £irms with access. In particular, hotel and atîraction managers who use CRS wanted access to the technology for the foilowiûg rasons: to monitor saledattendance of their product and prevent overbooking; to improve overail saledattendance; to develop a customer database for marketing and sales, and; to reduce human error and hprove the efficiency of operations. The elements most desired in the systems were the ability to increase market exposure and support back office administrative functions. Somewhat less important for hotel managers was the ability to create packages, whereas attraction managers were less concerned with CRS applications to yield management Attraction managers are generally les familiar with the advantages and possibilities of CRS than their hotel based counterparts. Despite the general consensus on CRS's positive impacts however, not aU fkms are able to (or even want to) adopt and exploit this technology. This thesis has shown that several factors must be examined if we are to start to understand why CRS use occurs where it does and how effectively it is adopted. The key factors that apqear to influence the adoption and use of CRS are illustrateci in Table 8- 1. Table 81: Facto= Muencinpc CRS adoption" l CRS ado~tionis: Fmownership: independent chah Network involvement none extensive Fm size: small large Fmmarket local international Standardization: heterogeneous homogenous Management attitude: ignorancdfear knowledgelacceptance Public sector activity: inhibitor facilitator CRS adoption is more iikely CO occur when tourïsm !ïxms are part of a chah or extensively networked, large in size, offer standardized products and services, cater to international markets and have managers that are informeci about and open to ITs. Riblic sector involvement in tourism technology development is also an important dimension in the successful implementation of CRS. The most important factors af5ecting access to and use of CRS by hotels and atïractions in both Montreal and Toronto was firm size. With respect to hotels, firms size was closely linked to hrm ownership structures. These hdings support the conclusions of tourism literature analyzing differential access to technology in the Mediterranean and Greece (Buhalis 1993, 1993, the South Pacific (Milne 1995, 1997), Eastern Canada (Pohlmann 1994), and the Cari bbean (Poon 1993, 1994)- Chain-owned and chain-affiliated hotels displayed significant advantages over smail and medium sized independent hotels with respect to CRS access. Smaller, independent. hotels experience greater challenges overcoming the hi& costs and standardization requirements associateci with CRS. In addition, ownership structure will obviously have a major impact on the rype of CRS used Most chah properties are able to secure access to several CRSs, including the chah system. The independent hotels on the other hand are either excluded ficorn the systems or are restricted to one of the foliowing types of CRS: a voluntary hotei consortium, a specialized-property CRS, or an RRS. Overail, the chah property managers were most optimistic and positive about the " The above charactenstics are presentcd as dichotomies yet it is imporîant to note chat a whole continuum exists between the identined extremes. impact CRS has had on their hotel's market reach, bookings and revenue. While independent managers were positive about the increase in market range they were disappointed with its impacts on bookings and revenue. Chain-owned and chah-matai hotels received the highest percentage of bookuigs via CRS (34% and 23% respectively), with the inckpendents lagging behind at 8% (Interviews). There was no consensus among resgondents as to whether or not the use of CRS technology resulted in a reduction in hotel staff. Given the variety of responses. it became evident that the type of CRS connection was an important consideration with respect to eventual labour requirements and impact. A fax confirmation type comection, for example, is very labour-intensive, necessitaMg additional steps on behaif of the staff in the monitoring of hotel rates and reservations. Conversely, the on-line rd-time systems of large chain properties reduce the amount of menial data-entry tasks required for reservations confirmation. Properties with fax confiiation connections, usually independents, were the least satisned with the impact of CRS on labour productivity. Respondents fiom the chain-affiIiated properties were the rnost impressed with CRS labour impact, The attraction sector posed more of a challenge for CRS analysis than the hotel sector due to its fragmenteci and heterogeneous nature. Size based on attendance was to prove the most reliable indicator of CRS use and adoption. In general CRS adoption is more likely to occur in attractions when the following criteria are present: High anticipated visitor volumes A standardized product for sale (few rate variations, set schedule for consumption) Event-oriented. This implies a time limit on the event and therefore discourages long-tenn association of the attraction with the CRS Limited capacity per 'session' of the attraction. hventory control is required because not al1 customers can have access to the attraction at ail thes. Attractions selected the Ticketing Agency as the most popular form of external CRS. The TiA offers attractions sales and customer database support while also enabling easy access for the purchasing public. The popularity of this form of distribution channel among tourism products (including hotels) is growing and as a resuit of comection to GDSs, they are quickly becoming signincant tourism distribution and marketing systems. Attractions with exclusive Ti distribution contracts experienced the greatest positive impact on bookings, market exposure, and hproductivity. After Ti,Toronto attractions were S~MC~by the HAlW RRS, while a few of their Montreal counterparts relied on self-administered intenial CRS (due to the lack of a RRS. and limited confidence in the local Ti). Attractions were satîsfled with the impacts of RRSs on their businesses in spite of the low percentages of bookings derived hmthis channet. In some cases the use of RRSs and Tiresulted in productivity gains for attractions due to the transfer of some of the marketing and sales fiinctions to exted agencies. Improved labour productivity wirh internai CRS was achieved tbrough the elimination of cumberwme. often manuai rnetbods of saIes and reservation tracking, and the added benefits of customer servicing databases. A majority of the CRS users in the hotel and Monmal attraction sector beiieve thf CRS use has had Linle or no impact on their ability to create new alliances and travel packages. These managers had not been appmached by other tourism suppliers nor did they taLe the initiative and approach other CRS-Listed tourism products. According to these respondents, such alliance activities are undertaken independently of the technology. For attractions sampled in Toronto however, the HAMT RRS docs help initiate networking among Toronto attractions and hotels in the form of packages, yet these practices are apparently 'invisible* to managers of the tourism suppliers involved. Gceater efforts mut be made to infonn tourism suppliers of the packaging possibilities CRS listings provide and to eniist theû participation in the process. It should also be remembered that whether smaU or large attractions, independent or chain hotels, management attitudes will play a signincant role in determining CRS adoption. In spite of the well documented advanmges of CRS some managers were resistant to the introduction of the technology for personai reasons including: a lack of awareness and understanding of new technologies (see also GM Robinson Associates, 1993) a desire to maintain control over inventory and market information satisfaction with existing reservation and distribution channels. The latter point was raised most comrnonly among the managers of small, niche- oriented hotels who felt, often quite nghtly, that CRS would offer Little additional benefit to their current distribution strategies. Technological ignorance was a more mdespread problern - one which cuts across sectotal, ownership, and size barriers. The issue of management awareness is an important one and reptesents just one area where the government may have a role to play in the hiture relationship between the towism ind- and information technology. 8.2 Public Sector and Destination Promotion Since 1994, the Federal govenunent has adopted several strategies designed to assist Canadian tourism products in their attempts to gain access to CRS technologies- These approaches 80w from recornmendations made by the NABTï that the government should stimulate interest in technology through seminars and conferences, provide reliable sources of information on technologies and their applications, and educate both tourism workers and managers in these applications. One of the key pnorities is to facilitate cooperation between the public sector, to- sector representatives, and private enterprises such as CRS fimis, technology providers, and education specialists. By inviting the private sector and industry specialists to discuss their respective goals in a comrnon forum, the public sector is helping to ensure that al1 parties involved with tourism have an oppoftunity to forge common objectives and strategies. Otherwise, reduced public sector involvement could resuIt in a 'rudderless' direction for the national tourism industxy. To date. the provincial level of government has been the most active in Canada in terms of introducing CRS technology to respective tourism suppliers. Unfortunately, these initiatives are fraught with problems, the most critical of which are high devetopment and operating costs. The experience of RQ shows quite clearly the problems associated with poor planning and a lack of tourism industry involvement. Conversely, the relative success of Ontario's CRIS bas been built upon heavy industry consultation and a les ambitious, staggered impiementation process. While it is too early to speak of the impact of the 1995 privatization of CRIS there seems to be Little doubt that the trend towards publiclprivate collaboration will continue and that we may see more provincial systems developed and operateci under this foa of joint venture. There is also active interest in tourism technologies at the municipal level of govemment in the two case study destinations. Both the OCI'GM and MTCVA are attempting to 'sell* their tourism products with a careful selection of information technologies. In Montreal, the lack of a provincial RRS and CRS in6asnicture has led to the Internet being chosen as the communication network of choice. The organization's evolving web site is presently channeling interested 'cyberspace surfers' to information on the city's atîractions. events, and hotel properties. No reservation hinction is avdable however. In Toronto, the expansion of the province's CRIS RRS to the Niagara/TomntO monpromises to mden the city's marketing and, with resemation capability. distribution options. Untü this happens however, Toronto can still secure CRS reservaaons and sales for its hotels and attractions through collaboration with the city's local hotel association, HAMT. The HAMT CRS, which offers these additional senrices, is accessible via phone-he-switches to the city's tourism information phone operators. Toronto's MTCVA is also developing a Web site on the intemet. Government is clearly a vital element in tourïsm promotion and should provide guidance and assistance for tourism suppliers in the foliowing areas: O Prome sr(UIC14rdifor CRS integrmion ro pennir wQltSPCUent connectivity of syste~~. Standards on the one hand lead to the fiee flow of inforniahon that helps convey the tangible elements of tourism products (Tapscott, 1993). On the other hand however, the application of standards can lead to economic domifdl for chose fyms unable to embrace and adhere to such restrictions. Flexible standardization protocols must saike a balance between the generic language of computer communications and the variability of database information required to accurately descnbe tourism products. Labour hning far technologicd applications. Whde the public sector mut continue to manage education cnatters, the pnvate sector (which stands to gain the most hman educated labour supply) mut contribute more significantly to curriculum development and program fûnding. Courses and programs developed mut be updated and kept sufficiently adaptable to keep Pace with changes in technologies. The trend towards GUI'S (graphical user interfaces) will also make it easier for workers to learn and upgrade their technology skiils (Tapscott, 1993). Develop and updrrte a Technology Informution Database. This database would serve as an information source for tourism suppliers curious about the latest technologies applicable to their businesses. Inclusions of case study information and technology evaluations by users would be usehl for decision making by other travel supplier management. Provide a forum for discussion of tourism technologies. The recent spate of tourism and technology conferences and workshops that have been conducted amss the countxy provide good examples of what the govermuent must do to foster awareness. There is always the problern, however, that these types of meetings simply preach to the converted without really reaching the me'tecùno-phobes'. Continue to promote and foster interaction and alliance fonnanôn between mernbers of the Canadian towism industry through facilitation. This thesis has demonstcated repeatedly how alliance activities are instrumental in faciiita~gaccess to information technology. Reco&nizing the importance of these types of fodand infod collaborations is central to preparing tourism fimis for cornpetition in the 21' century. Government wili certainly have a role to play in bringing cornpetiton togerhr and in highlightiag tûe benefits that can be associared with netwodc and alliance formation. 83 Tourisnq lT, anci Destination Promotion in my review of tûe lirerature deaiing with the Links between toiirism. ïï and destination development, 1 showed that there is increasing interest in the ways in which new travel distribution technologies, especiaily CRS, can assist in the emergence of 'new' more flexible tourism products. In her influentid book on tourism and information technologies, Pcon (1993) foresees a tourism industry in which CRSs are fully integrated (providing seamies global communication), where aü toUnsm suppliers are users of powemil distribution technologies, and in which technologies are designed to achieve 'vaiue-orîented' goals rather that 'distributions' objectives for the users. It is certainiy f& to Say that Poon and a numkr of commentators (e.g., Tapscott, 1993; Jones 1993b; VLitos-Rowe, 1992) tend to overexnphasize the advantages of CRS and downplay some of the burdens and costs imposed by such systerns The debatable point is the degree to which CRS is transforming or revolutionizing the industry and the extent to which these changes are producing positive impacts for tourism nmis and destinations, large and small alike (Milne, 1997; Truitt et al, 1991). The hdings containe- in this thesis cdinto question some of these more optimîstic forecasts relating to product depth and flexibiiity (Poon, 1994) and destination competitiveness (Beaver, 1992). Unfortunately as seen in the cases of RQ, CRIS and other RRSs, fdly integrated CRSs remain a dream for the future. Often, smaller systerns like RRSs cannot achieve the seamiess integration necessary to allow global communication. Once again lack of standards becomes an issue here. It is important to remember that many RRSs are not developed with GDS standards in mind (McGuffie, 1990a; Beaver, 1992). Poon (1992; 1993) is adamant about the ability of CRSs to offer more flexible fonns of travel packaging. This research suggests once again that this clah needs to be tempered with caution. Few of the respondents felt that CRS had enabled them to develop a broader range of network relationships or packages. Clearly this issue needs to be exploreci in greater depth to discern the reasons why CRS-related packaging is not beiig exploiteci by tourism suppliers. It could merely be a question of undemtilization and ignorance. More Likely, however, is the fact that trust and reciprocity are vital components of many forms of network formation, and technology cannot replace or compensate for these human aspects of doing business. Evidence to support Poon's contention that IT will lead to value enhancement does exist The Tifor example, appear to be accomplistiing both disttibution and value added objectives concurrently. These systems, operating on a high-volume basis, have recently diversified their databases to offer compiementary products to consumers The complete travel 'package' - in the fom of several related products such as hotel, air tri~~port,and entertainment options - is now available to the consumer through one chanael. Poon aiso stresses the fact that CRS technollogy can offer consurners a wider variety of mvel products (hm local and small fimu to large international conglomerates) thus broadening the range of product components. The reaiity, however, does not Live up to these high expectations. While the range of products offion CRS continues to broaden, the organizationai characteristics of these finns do not Basicaliy, the CRSs - especially GDSs - reinforce the supremacy of the large multinational chain-oriented tourism firms. Thus, in this era of CRS, survival of the non-specialized srnail to medium-sized independent hotel or attraction is more challenging and dficult than ever before. This supports the daim by Hepworth (1991) that an electronic marketplace based on proprietary networks will continue to support the domination of large globalized firms and relatively Fordist patterns of industrial organization and regionai development. Many of the commentators writing about CRS are also somewhat sanguine about its impacts on labour (Riley, 1992; Pohlmann, 1994). Poon tallcs a great cIeai about broadened ski11 profiles and multi-tasking but the reaiity rernains that in higher wage locations such as Montreal and Toronto, CRS can play a role in reducing some back-office labour requirements. In real terms, however, the impact of CRS on job loss in the hotel and attractions sectors will be minimal. Of more importance wiil be the ability of both the public and private sectors to train both existing and new workers for the rapidly evolving workplace. To conclude, lT and CRS stiil hold the 'promise' offered by Poon for value added services and a globaily integrated network. Less promising however are the prospects that CRS will be available to al1 tourism suppliers. On this note, it is important to highlight the fact that Poon does not broach the subject of non-proprietary networks such as the Intemet and its sales nodes on the World Wide Web. The fact that these powerfiil distribution and marketing technologies are now competing amongst themselves for the purchasing public adds a new dimension to the complexities of the inter-relationships beniveen tourism and information technologies. It is likely however, that new concentrations of conml over travel distxibution will emerge - the question is whether the leaders wili stem hmexisting aidine-based GDS. or fiom new players such as Midofi(The Economist, 1996). Ultimafdy. wich CRS and the Internet bringing consumers closer than ever to the travel products of their desires. we are moving away from the notion of channeis of distribution and closer to the idea of a 'Wy fùnctioning tourism system based on communication networks' (GO. 1995)- 8.4 Research Agenda While this thesis has provideci some important insights into the ways in which CRS is king adopted and used by hotels and attractions in Montreal and Toronto, it also raises a nurnber of additional issues that cannot be addresseci here, 1 now point to a number of areas where hinue research may assist us in reaching a deeper understanding of the links between tourism, IT and regional development. This thesis raises a range of important methodological points that should be considered in future analyses of the corporate use of sophisticated IT in the tourism industry. I experimented with two forms of inquiry, the semi-structureci interview and the structureci questionnaire. The resdts indicate that for difncult and complex issues, such as perceptions of technology. as well as its use and impacts. personal face-to-face interviews are a far more effective way to gather helpfbl data than questionnaires. For example, quantitative-onented information (see Questions A6, B4, B6. B7 in Appendix 2) was somehmes ornitted from questionnaire responses. The interview format was more conducive to gathenng information of this nature because the interviewer can encourage the respondent to locate data otherwise deemed too abstract, sensitive, or out-of-hand for quick questionnaire responses. Not to undennine the utility of the questionnaire altogether, this research twl proved most useful in amassing classification-type information; e.g., Do you use CRS? Yes. No. Indicate type of hotel ownership. How many rooms. What is your job title, etc. For future research on tourkm and IT, 1 recommend the combined interview- questionnaire approach with, however, a questionnaire format and content that is short (perhaps 2-3 pages) and concise. The questions should be easily answered - responses should not require any 'opening of the books' or detailed research from respondents. A methodology of this design should lead to a higher response and hence more sigrilficant 'Ibe conclusions presented in this thesis need to be verifleci by largcr studies that better reflect sectotal and destination contexts. A bmader study would almost certaùily reveal more subtle and perhaps meaningfd variations and relationships and would also allow the use of statisticai measures of interaction among variables. wth larger sarnple sizes. it rnight also be possible to establish more concrete evidence of the links between CRS adoption and fkm competitiveness. For example, wht is the comlation between adoption of hotel CRS and an increase in bookings? Or what is the relationship between the use of TiAs by attractions and changes in labour productivity. Even with a larger sarnple size and refined swey instruments the problem still remains that a range of other factors, both internal and external to the fkm, will also influence hm pedocmance - the degree to which CRSs influences this performance alone is questionable. Many questions remain to be answered regarding CRS's impact on labour. This thesis presented just a few of the conflicting realities of the technology's introduction. A deeper snidy could attempt CO answer the foliowing: Do labour requirements decrease or increase with CRS adoption, and is this change dependent on CRS type, fhtype, or firm si=? Is there evidence of deskilling or multiskillling? What strategies does labour adopt to mitigate any negative consequences of CRS adoption and how are these strategies viewed throughout the industry? Additional research into issues involving worker and manager training should be undertaken to ensure that the effective diffusion of CRS and other Es continues among Canadian tourism finns. Further research is also rquired on the role of govemment in promoting links between tourism and information techoIogy. Increasingly, governments are responding to funding cutbacks by soliciting the aid and participation of the private sector in ail activities from research and development to regulation and education. What role should govenunent (at ali levels) play in the future? What policies are most effective in enabling Canadian !kms to acquire the skills, knowledge, and fun& necessary CO exploit this CRS technology? Does the privatization of RRS reduce the ability to meet broad representational mandates established by provincial government authonties? These types of policy questions must be addressed in order to maintain the cornpetitive strengtb of Canada's tourism mppliers. This thesis explorecl CRS use by hotels and attractions in two urban destinations. This does no& of course, begin to cover the range of destinations and products using CRS technology. Archdale (1992a,b) notes briefly that urban areas are beaer represented on CRS than peripheral and rural regioas. Why is this and does fkm standardization acc~untfor some of this discrepancy in representation? What are the challenges in geaing mral tourism rcgiom Listed on CRS? More aaalysis of the variety of CRS experiences in di&- scttings musr be undertaken before we can begin to answer these questions. FmaUy, 1 have focused on CRS because of its dominant role in the electmnic presentation and retrieval of tourism marketing and distribution infdon. But. it must k remembered that new technologies are emrging that may prove to k jus as. if not more, 'revolutionary' (Dunbar. 1996, Balas et al, 1994). The control held by GDSs in market share rnay be threatened by the increased use of the intemet and the World Wide Web. The aise with which users (public consumers. travel retaiiers) and vendors (eproduc& mus) can access and interact on the internet at a substantially lower cost has forced GDS and otber CRS to use the Internet as another distribution source for their products. As new service providers emerge to meet the Intemet challenge. tourism fimi managers and planners are faced with a gmwïng array of distribution/mafketing options for the'u products. Research into the realm of emerging technologies would help these individuals and instinirions make educated decisions on such options. For example, does the Intemet appeal to a certain market segments and product types only? 1s Internet advertising neassary for a fïrm to rernain competitive and what is the expected rate of rem for invesîment in such types of advertising? in simple terms. research must help identify key strategies for tourism nmis and destinations that will enable hem to remain adaptive and flexible in the face of constant technological and market place change. Ultimately, the competitive funire will probably Lie with those firms and destinations which can exploit the cumnt two-way channels of communication. thus promoting closer links witû coc1sumers seekhg a broadening range of travel and leisure products (Kasavana and Smith, 1993). The challenge that faces Canada and its tourism operators, is to be at the forefront of the effective adoption of these enabling technologies. This thesis has pointed to just a handfiii of the hurdles that may stand in the way of both the private and public sectors*attempts to meet tbis challenge. Interview Schedule Interview schedule for: 1. Introduction A. Inrroduce the project (Cuver letter Ur questionnaire) inuoduce myself and maite referencc to fitcontact thugh telephone ancilor mail. project is king conducted by McGiii's Tounsm Research Group and is funded by Quebec's FCAR- the aim of the project is to gain a ktter understanding of the role of technology in the marketing and distribution of tourisrn destinations and their products, with a particular case study on CRS and Destination database techaology. The adoption, use, and impacts of the technology on tourism fvms and the destinations of Monmal and Toronto is the focus. This knowledge WUhelp firm managers and tourism officiais maximize marketing and distribution options available to gain a pater market for the tourism product. -- * rnethodology: ~ampledetails (sectors), interview and questiomaixe. the foliowing wiii be discussed in the interview: a brief history of the interviewet; a brief overview of the mandate of the organization, the various marketing and distribution strategies prornoted and sponsorcd by the ministly; thek position with respect to the use of iT in tourîsm, specificaiiy CRS's; the pcrceived impacts of CRS tcchnology on the fi'sand destination's visibility and compctitivencss in the global travel market; opinions as to the role of govcmment in marketing tourism products abroad; the role and success of strategic alliances and neouorks in the marketing and distribution of the tourisrn product - CRS case study. confidentiality is ensured, Data wiU be made avdable for theü consultation, B. In te rvîewee CF perso~lhistory - to ascertain the ministry's position towards technology and propcnsity to adopt new strategies for the tourism scctor. How long have you held this position and what are your rcsponsibilities What is your experienoe in the tourisrn.(specific scctor) industry, the technology industry . C. General infunnation on organization + What is the jurisdiction for tourism promotion ktweea the various levels of goveniment with respect to tourisril size of organization and type of services offercd to the tourism industry. 0 discuss the mandate of this department for the 1990's. and how it has changed from the previous decade. 0 who do they serve in Quebec O what are the general marketing and distribution strategies recommended for their c lients/members. O specific marketing and distribution strategies (how long have these stratcgies been employed and how often arc they evaluatcd. mechanisms for evaiuation). What arc some of the major projects Tounsm Quebec's marketing division has ken involved in the Last few years. what are the approximate budgets of these projects. are these ventures solely public or is private industry invoived O how are your promotions organized: geographically. sectorally, demograpbicaliy ... Specific marketing- tactics in the 1990's - target markets (sectors, demographics, and geographicd range) specific suategies of promotion (niche or gened marketing) specific projects to reach these markets which aspect of promotion is most expensive for TQ which strategy do you consider to bc the most eRective in attracting customers, or most -- effective mix of strategies what indicators does the goveniment have to assess or mesure this effectiveness or what dificulties do you have in gaging the effectiveness of the projects I 2. Strategic alliances adnetworks O what industry associations do you deai with O what are the goals and objectives of these dealings what are the conditioL1S/responsibilities of rclationships (the, financial, orgaaizational) In general, are the alliances you deai with responsive to govenunent involvement; for exarnple the travel agents are against RQ are the aiiiances the governmtnt is involvtd with diverseing to include non-traditional sectors (ex. technology and industry). 3. CRS and RRS development and difiùsion A. CRS techo1ogy.- Diiion, aàbption cuid opinions General considering the information intensive nature of the tourism industry. what dedo you think information technologies have to play in the marketing and distribution of products; how has this role changed over the past decade what role does the governmcnt adopt in promothg the use of ïi' by tourism industry establishments ( are they eftively involved in rnodcrniwng the iaformation inftastructur~ of the tourism products); how - what projects pmmote R CRS technology A brief discussion of CRS/RRS technology prcfcdu this section of the interview in order COclarify definitions and interpmations. The difference between ihe two types of reservation systems wiii k sucssed and the followhg questions wil1 be dincted fmt to CRS and thcn RRS alliances. For simplicity however. they arc lumped togethcr in the interview schedule. Specific CRS is the sabre system and Gemini, while the destination database is reservation Quebec. does the city promotc the use of CRS technology by its associations and establishments; who initiated the use of CRS/RRStechnology. why was CRS/RRS technology chosen (and why this particulas system(s)). what is expected of the CRS/RRStecbnology; what were its selhg points. - increased exposuh - potcatial to aiche market -offset cornpetition from cornpetitors... Why did the government get iavolved in the RQ project and what is the history of that involvement - - original idea hmwhom objectives of RQ project (supply/demand) who were developers how was system to operate (linkage to CRS) who and hmwhem was project fmanced ' what was the timt framt for development to operation What are the contractual agreements between the city and the CRSiRRS Company (rnethod of payments, flow & rcccipt of revenues). how is information on your tourism pioduct provided by you to the CRS/RRS fm. how often. what information consaaints do you have. and what processinglalteration of this information occurs by the CRS/RRS fm concerns about tecbnology: standardizaUon, control of information (how was infor obtained and verified), revenue sharing (how is system f~~~anced- fecs). rcgulation, mal- time ... do you believe that the government should enforcc mon or less regulations of CRS/RRS information usage and reeicval fwictions What went wrong with RQ and whcn did problems becorne evidcnt resistancc by ACïA dcal with France Fmancing strategy govemment involvement (contrat with Ontario) What will happen now wiii project be lefi to die or will a rrscue be mounted to save it wiii government entenain tbe notion of saving it, does the govenunent not feel that they have a mle in the efficient disaibution of the province's tourism produc& B. Hardware/ sofhvare /operarional details types of computers(mainframe or PC). name of operating system. namc of CRS- software used for distribution and marketing purposes. who supplies computcrs and systems support. what were the one timc and annual expenditures required for the systerns CRS connection: example Sabre and Gemini: are they a positive prcsence in international marketing, or negative is there a role for provincial marketing with the international systems, what involvement, why how do you see the systems evolving and what is Tourism Quebcc's part in this evolution. issues of globalization and concentration. Specifically Gemini -Apollo: how wiii cbanges hma nationaliy organized qstem to an intemaiional or abroad controiled system afkct Canadian and Qucbcc promotional interests A. Destination impacts and regional development - - do you consider the CRS/RRS a good tool for promotion of this region ab& what impacts does the CRS/RRS bave on the city's visibility and competitiveness in the in ternational arena whit is the most effective promotional mix for this region (should we rely on certain forms of marketing more than others) 4. Impacts of CRS RRS on tourism firmJ Key terms with regards to impacts at the finn level are: competitiveness, visibiliîy, and profitability. Each iatemiewez will be asked to substantiate tbeir claims with indicators where available. Availability of indicators rnay pose a problem thus leading to a more qualitative perception of impacts on fmThe foliowing issues WUbe addmssed. how do you defme competitivcncss has the cornpetitive environment of tourisrn changed in the 1990's; If YES. how has it changed (incrcase, &cmsc, who arc main cornpetitors) in generd, does the IT effect aii establishments equaily or is theh a bias with respect to which companies benefit and what indicators do you use for this assesment. has subscription to a CRS/RRS affkctcd your traditional mazketing and distribution strategies (ex: dropped flyers. nduced no. of brochures produceci) which system iocrcascs the city's ~sibilitylcompetitiven~~~more, the CRS or RRS. what are the kstand wont features/coas#luences of CRS- technology are you satisfîcd with the pnsent state of the tachnology, what would you likc to change-improve about the technology If possible ask for. cornpetitive indicators over past few years such as stats (minimum quired for profitability), total baokings; AND any figures regardhg involvernent with CRS's. RRS's (linkage fees. pay-per-bookhg invoices. CRS generated revenues. market characteristics of those who booked through CRS, etc.). A- Cornpe fr'tiveness The characters of Montreal and Toronto are very differcnt (Montreal is a morc European rnix of fine dining and night life. whercas Toronto's sophisticated shopping environment and theatet 'district' attract thousands). 9 How does CRS representation nspond to the different city characters : is their greater represenration of restaurants than theaters thus putnng Montreal at an advantage? Does Montreal have more smaii scale locaiiy owned accommodation and hence Iess international CRS representation than Toronto? The information required to answer these questions wiU corne Crom the typologies of - - fmrepreserited in both the CRS and local RRS's. and opinions of fmand destination iepresentatives. New Marketing and Distribution Strategies in the Canadian Tourism Lndustry 11 Please direct this survey CO the person(s) responsibie for marketing and cesenrations in your ès tablis hment. Once cornpiete, renirn the questionnaire in the enclosed starnpcd envelope to McGi11 University. Please read the follo wing demilions before compieîing the quesrionnaire. Tliank you CRS*: The Cornputer Reservation System is a centrai database comected to a nerwork of temiinals from which rr~cwatioasand bookings arr made. The extemal terminais may be Located anywhen fitquent travel information and rrservations arc rrquircd. There are four tvues of CRS's under consideration in this study: GDS: The Global Disaibution System, or airiine CRS. offers world-wide re Voluntary Hotel Consortin: A centrai rcservation system catering to prcdorninantiy non- chaidfranchise affiliated hotels. Examples of voluntary hotel consorria are 'UteU' and 'Lexington'. RRS: The Regional Reservation System or destination database is a sophisticated storehouse of ail travel related information for a specifk region such as a city, province or statc. A ment development is the ability to rrserve or book options for the inquiring customcr. Examples include 6Check-ïnnsand4C.RIS2 On-the Coaniwr subbcripaom se-: Computcr information uetworks accessible to consumers via modem and a personai cornputer. usuaiiy for a srnail f#. Tourism companies can advertisc or place inventoy for rcservations on networks such as the 'InterneV, 'CompuServe9 and Trodigys. *This study uses the gened abbrcvlitîoa d CRS wôen rclcrring to the CDS, RRS, hohl and on-line reservatioa systems. ALLIANCES: Extemai iinLipcs ktwecn the hotci and otkr tourism or business secton for marketing. andlor vaiue-added knefiîs for the customa. Examples of alliance activity includc packages. coupons, fiequent flyer programs. and coopenuive advertising campaigns. Lf you would Like to rcceive a copy of the finai report generatcd from this cescarch. check this box: O il ,McGiii University Tourism Research Group. Monacal. Quek. Page. 2 1 CRS technology in yourj%m I Do you use a CRS? (set definition oa page 1) YESNO- A 1.1 if NO. why? (go to question All) - -- What year was your hotcl fmt listcd on the CRS(s)? Whic h CRS(s) docs your frrm subscribe to directly? If more than one, please rank the systems based on volume of tcservations rtccivcd GDS: airiine CRS -RRS hotel chah CRS -voluntary hotel consortia CRS On-Line subscription service name(s) of system(s): Please rank, in order of importance. thc factor@)which inauenccd your hotel's selection of the above CRS(s). -obiïged to use chah CRS cost -- range of market cxposurt rccommendcd by: -administrative functions in systcm (ex: yield management and customer database) -user-friendliness of systcm othec What type of CRS conncction(s) dasyour hotel have? -read-only information faxconfvmation capability on-line, ml-timc rcservation capabiiity - o&ec A6. What are the total costs your firm must pay to be iisted on the CRS(s)? huai: S Pet Booking: % or% Ad. 1 How much of your matke~gbudget does this total rephsent? % h7. Are you safisfied with your hotci's producVmfoZmation display oa the CRS(s)? YES -No - If NO,why: X8. Within your hotel. who uses the CRS(s) and for what specific purpox(s)? Job Titie CRS function Ag. What impact has subsaiption to the CRS(s) had on the foiïowing: 1 is the greatestpositiv~ impact and 5 is no impact. hotel's competitiveness: 1 2 3 4 5 bookings: 1 2 3 4 5 revenues: I 2 3 4 5 labor productivity: 1 2 3 4 5 incrcase market exposaue: 1 2 3 4 5 alliance crcation: 1 2 3 4 5 LUcGiii University Tourism Research Group. Montreal, Quebec. Page. 3 I rate-fixing fiexibility : 1 2 3 4 5 What aspects of the CRS's should be improved? What future plans do you have regarding the fm's use of CRS technology? Marketing and Distriburion for yowm What kind of customen stay at your hotcl? Please indicate as apercentcrge of total custo~~~ers. International U.S.A. Canadian Business % 95 % Business Leisure % % % kisure What market(s) wodd you likc to amm morc of to your estsblisbmcnt? I Who does the marketing for your establishment? self -hotel chah management consultant O thet (specify): What percenkzge of your marketing budget is aiiocated to each type of advertking? [ ~rint: % 1 Media: 46 1 Technoloay: % 1 - 84.1 Please select (4)the dvettising mcdiun(s) used to pcomote your hotel. 7 Print Media Technolow destination broc hure radio -CD-ROM -hotcl flier -TV -CRS (description pages) specialty magazine tta& shows On-Line subscription semces newsprint: Iocal - vi&o brocbute national foreign other: othet: othet: Do you use baner ot aadc adverthhg (contra-advertising)? YES - No - Please indicate thepemen&ge of yow hotel's boobgs made thugh the followiag technologies. If a category is not applicable. please write NIA. telephone 1 1-800 # 1 CRS's 1 fax [ mail 1 waik-in0 1 other McGilI University Tourism Research Group. Montrcal, Quebec. Page. 4 1 Please indicate the perrcntogr of your hotel's bookings made by the following agents of sale.- if a category is not applicable, please write NIA. Travel agent Convention GSA (general sales agent) Hotel sales office Other bureau 1 % % % '75 - 70 Are you able to trace which marketing strategies brought customcrs to your hotel? ES- NO -. B8.1 If YES, how: Does your establishment participate in marketing nllhnces (set definition on page 1) with other tourism or business stcton? YES -NO - (If NO. go to question CS.) Who initiated the aiiiance(s)? Self Chain Destination Tourism Organization other -- Please describe your alliance(~): No. ~Memberdescription Allirince product description (ex: chah hotels. local businesses) (ex: coupons, packages, fiequent flyer. publicity) 1 C4. What pereentage of your nights boolred cornes hmthese alliances: 96. CS. Which of the foiiowing tourism products participate in your ailiance(s)? ait transport carrental mmusewns sporting venues theatedorchcstra restaurants culturai tvents ohers: C6. Is the proximity of these ptoducts to your hotcl an important elcment of the alliance? YESNO- C6.L If YES. appmximatcly how close (the and distance) arc these products fkom your hotel? Circle one bdow Tb Dbtance (select one) Wallcing or Driving minutes _km. miles blocks On a scale of 1 to 5, how would you rate tbc naturc of interaction among the establishments mat makc up the alliance(s)? cwperative 1 2 3 4 5 unc wpcrative noncornpetitive 1 2 3 4 5 CO- titive trust 1 2 3 4 5 mistrustfiIl Il McGiil University Tourism Research GCOU~,-Montreal. Quek. Page 5 equal participation 1 2 3 4 5 unequal participation C8. Wbatrolewillalliancuplayinrhcfu~~of~ourtourismbusiness? -no rote incrcasc decrcase stay the same Do Role of Government D 1. Should regional reservation systems (ex: C.RI.So)bc subsidizcd by provincial tourism rninistries? YES - No - Unsure - D 1.1 If YES or NO. why: D2. Are you satishd with training programs avaiiable for tourism employees to upgrade technical skius? YES - NO - Unsure - D2.1 If NO. what improvements shodd k made: D3. What role shouid the govcmmcnt play in influencing the tourkm industry's use of aew -- information and communication technologies? -no role, indusuy should dictate use of technologies increase awamess of technologies through s~ISOR~~~of confetcnccs, nade shows ' develop tec hnologysriented training programs for tourism employees regulate new technologies for staridards and cquity in usage other: E. About yourfirn, E*. 1s your hotcl located in the downtown arcs of yow city? YES NO E 1. How many mms are available at your hotel? E2. Please indicate the hotcl's owncrship type by checking the appropriate box. - - -- , Type of ownership: Canadian Foreign Independent. no chain mation Independent, chain affiiiation E3. How long has the hotd had this fonn of owneahip? E4. What is the hotei's average occupancy rate for the prwiout 12 months? E5. What is the hotel's average daily rate (ADR)? S E6. What is the average length of stay at your establishment? nights E7. How many employees work at the hotcl: Fuii tirne: Part Ti: McGiii Univeniry Tourism R-h Group. Monacal. Quebec. Page. 6 E8. Indicate fiom the foiiowing list any iaformatiodco~unicationtechnologies used in your hotel. -cornputers property management systcms -video coaferenciag -voice mail -E- mail -interactive television teleconferencing energy management systcnis fax machines -CRS other: €9. What do you consider to be the grcatest challenges affecting: (a) your hotel. and (b) the accommodation sector of your city? (a) ('b) F. About yourself c/ Pleuse encha business ccud F 1. Did you know what a CRS was kfoce you rcceived th* survey? YES -NO - FZ. How long have you wockcd in the hospitality industry? ; for this establishment? I F3. What is your job title? F4. Do you use cornputers in your job? YES -NO, F4.1 If YES, what peirentage of your work depends on cornputers? -96 Please describe your cornputer tasks: F5. Please rank in order of importance. the source(s) of information you use to stay abreast of trends in the tourism industry. Seminardwotkshops Destination Tourism Organization Hotei associations Consultants -Tradc jods Trade showslfonims Tourism Canada Min. of Tourism (provincial) other: F6. Do you teel you know enough about the variety of infocmaiion technologies available for the marketing and distribution of your business? YES ,No - Thank you for completing the survey. LES TECHN?QüES DE MARKETING ET DE DISTRIBUTION DANS L'INDUSTRE DU II TOURISME AU CANADA 11 Le 6 janvier, 1995. Le Groupe de recherche sur le tourisme de i'llniversité McGiii procède en ce moment à une étude de quatre ans qui examine les défis et les occasions auxqucis fait face L'industrie du tourisme au Québec et en Ontario. Un des éléments clCs de cette étude touche SutiliSaaon des systèmes de réservations informatisés (SRI)et des aiiiances stratdgiques pour le marlct~get la disaibution du tourisme. L'objectif de notre recherche est de foumir, aux planifxcaicun et gestionnaires en tourisme, des renseignements touchant les impacts des nouvelles stratégies de marketing et de distribution sur la cornpétirivite' des établissements et des destinations du Quibcc et de l'Ontario - - Nous avons choisi, pour fins de consultation. un large éventail d'entreprises et de services touristiques et de divertissement. La riponst initiak de ceux avec qui nous avons communiqué a été enthousiaste. Nous espérons que, en tant que représentant du secteur de i'hébergenwnt, vous aCCCptChZ de participer à ce projet en complétant le questionnaire ci-joint. Tous Ies nnscigncmcn~qut vous nous fournirez demeureront confidentiek. En guise de remercfemnt pour *om pu&lp.tio% n- VOUS lemil. parvenir un rapport ditaiii4 sur lm conclruioaj globd~de I'itud- Le questionnaire met L'accent sur les th&nics suivants : l'attitude envers les, et l'utilisation des. sy&incs & réservations informatisés (SRI) pour frns dc marketing et & distribution; a les alliances & marketing auxquelles p&ciperait votre entreprise; le rôle des gouvernements dans la promoaon de votre entreprise et de votre région, et a les renseignements géniaux sur votre entreprise; Nous vous téiép honetons sous peu pour vérifier oh vous ca etes avec le questionnaire et pour répondre à routes questions que vous puvn avoir au sujct dc SCtudc. D'ici la si vous avez des commntairw, n'hésitez pas à communiquer nous (Professeur Mie, au (5 14) 3984942, ou Kara Giu. au (5 14) 989- 8090). Nous vous remercions de voue participation et nous vous prions d'agritcr l'expression de nos sentiments distingués. Kara M. GU Proftsscur Simon Milne 0 Coordonnatrice de recherche Chef de projet Veuillez faire parvenir ce questionnaire à la personne responsable du marketing et des tfservations au sein de voue entreprise. Une fois que vous L'aurez compldté. veuillez s'il- vous-plaît le retourner a 1'Universid Mai11 dans L'enveloppe ci-jointe. - Veuillez lire les définitions suivantes avant & compî&r Ir question~e.iMrrri SIR = : Le Syst&mede réservations informatisé est une base de données centrale Ai& & un réseau de tenninaux desquels on peut faire des réservations. Les terminaux externes peuvent 2alocalisés n'importe où on recquiert fréquemment des informarions sur les voyages et des résewations. GDS : Le Systtme de distribution globale ou les SIR dafmnsporicurs aériens oEfrent la possibilité de réserver,- de partout à travers le monde des places sut tes vois dt compagnies aCricmcs dachambres daas les ch- hôtelitres multi-nationaies et des autos de location. exemples au Canada sont aGaüieo Canadam et cSabm~. SIR d'associatioas ou de chahes hôtelihs :Ces SiR sont des cenuaies de réservarions au service d'associations ou de chaînes hdtetitres nationales ou internationales. - - Regroupements voloot.ins deb91tb: Ces regroupemenu sont ducentrales de rkmations au Knnce d'hbtcb affiliésne faisant pas partie d'une chaîne ou n'étant pas fnnchisCs. Les pliacipurx GDS peuvent faire cies réservations par i'enuemise de ces hgrOUpCUEnU d'hôtcb par des rintcrmpteunm reliant les téseam d'ordinateurs. dtcbest un exemple d'un conscutium volonmire d'hbrtlr- SRR : Le Système de réservacion régional, ou In base de do& d'une destination. est une mine de renseignemenu sophistiqués contenant toutes les idormations touristiques pour une région domu. comme une ville. une province ou un pays. Un développement récent touche la capacité de réserver ou de retenir des options pour le client demandeur. check-hw et aC.Ri.sm sont des exemples. Les services d'abonnement en direct : (Par i'enueniise de) réseaux infonnausés. à la portée des consommauws. en utilisant des modenu et des ordinateurs personnels, et ce. habitueilemenc des coûts minimes. Les entrepreneurs touristiques peuvent faire de 1a pubiicité et inclure leur inventaire nu des réseaux comme (~Inltrntb,&ompu&ma et afnidim. Cette étude utilfsc i'abbrcvi.doa SIR pour réf'raux CDS, SRR,Icr sedcad'abonnement ea dk~Get aux systèmes de réservadoas ck MLck ALLIANCES : Des liaisoas externes enae L'hdtel et d'auues secteurs du tourismc ou des affaires dans le but de faira du marketing et/ou d'offrir des Maéficu & valeur ajout& 1 Ir clicn&le D# exemples d'activités d'alliances comprennent les forfaits, Iu bons-primes, lu prognmmcs de gmds voyageun et les ciunpagnes de publicité coopirativcs. Si vous aimeriez recevoir une copie du rapport fiad de L'Ccudt, vcuillcz cacher : 1 Le Grouoe de recherche sur le tourismede Suniversid McGill, Pa~e2 1 Technologie de SIR Utilisez vous un SIR? Oui Non .A 1.1 Si non, pourquoi ? (passez la question Al 1) En quelle année voue hôtel a-t-il it6 placd sur un SIR (des SIR)? Quel SIR est-ce que voue hdtel uulise? Si vous en ualisez plus d'un. veuillez les cbrsrr selon le volume de réservations qu'ils gtn&nnL GDS :SIR de aansportcur aérien SIR d'associations ou de chaînes hdtclitm SIR de regroupements vo~ontairesd'hdtcis SM Service d'abonnement en direct nom dddes syscérne(s) : - - Chser par ordre d'importance les facteurs qui ont influeacd les choix. par voa hôtel, des SRI identifiés ci-dessus. Vous devez utiliser le SIR de voue chaîne hdtcli&c Coût Ac& au marché Recommandé par : Fonctions administratives du système (gesoon du rendCrnent et base de données sur Ics clients) Fadité d'utilisation Autres : Quel genre d'accès voae hdtd a-t-il au(x) Sm? Lecture de l'information seulement Capacitd de confirmation par télécopieur Capacité de téservationr eu direct Quelle est la totaiité âes coilts que votre ûnne doit payer pour tire plad sur ides SIR? Annuels : S Par appel : % ou S A6.1 Ccnc totalité dpresente quel pourcentage de votre budget de m9tkethg: 96 Êtes-vous satisfaits & L'information sur vom hatel contenu dans Ides SIR? Oui Non A7.1 Si non, pourquoi: Dans voue hdtcl, qui utilue le/les SIR et pourquoi? Le Groupe de cecherche sur 1s tourismede I'Universid McGill. Page3 I Décrivez l'impact duides SIR suc ks activie suivantes - 1 repcknte l'impact positif le plus important et 5 représente aucun impact. Compétitivité de L'hdtel 1 2 3 3 5 Réservations 1 2 3 4 5 Rcvcnus 1 2 3 4 5 Productivité du personnel 1 2 3 4 5 Accès plus grand a divers marchés 1 2 3 4 5 Mise sur pied d'alliances 1 2 3 4 5 FiexibilitC dans la dCrermination des tarifs 1 2 3 1 5 Quels aspects dufdes SIR doivent Cfre am6lior&? Quels sont les intentions de voae icabüssement en ce qui concerne i'u~ondes SIR A f avenir? Quel genre de clients choisissent votre hatel? Veuillez indiquer lepowce-ge par rapport au total de votre clienttle. [ Origine ( Internationale 1 États-Unis 1 Canadienne 1 1 Types 1 Indépendam 1 Groupa 1 1 I 1 1 Affaires 1 96 - % 3 Aff.. 96 1 % (Touristes 1 % - 46 9b Touristes % 1 -% Veuillez Uidiqur les clientèldmarchds que vous aimeriez attita de façon plus -de daas votre établissement. Qui s'occupe du marketing vom CtPblUwmcût? Nous-rn4rn~. La chaine hbrtliht Un consultaut Aum(veuillez indiquer): Quel pounenbge de voabudget de mntkchg est dout ichacun des types suivants de publicité? B4.1 Veuillez idcatilia l&s) v~cule(s)publicitaire qw vous uriisez pour faVc le promotion de votre hotel: Ecritc Médh Élecuoniq w Brochures de destination Rdio -CD-ROM DCplianu de i'hbtcl TéiCvUioa htcmet Revue spécialisée , Foires de i'indusuïe SIR (notes descriptives) Journaux: -locaux services d'abonnement en direct ,nationaux grCsenution vidéo ,étrangers -autres -autres 1 Le Groupe de recherche sur Ic tourismede l'Université Mffiili. Page4 1 B S. Est-ce que vous aoquet ou échangez de la publicité (conoc-pu blicité)? Oui Non B6. Veuillez indiquer k powcenûzge des réservations faites votre hôtel par l'entremise des technologies suivantes. Si une catkgorie ne s'applique pas. veuil1ez inscrire NIA. Tétéphone Ligne 1-800 SRI Télécopieur 1 Poste A la réception. sans céservation Auaes % % 9 % 1 40 % - % B7. Veuillez indiquer le powcrwge des réservations faites à voat hôtel par I'enuemisc des agents suivants. Si une catégorie ne s'applique pas. veuillez inscrire NI& Agnt de voyage Bmau de congrès AVG (agent de vente gdnhal) ' Bureau de vente de L'hôtel Aumr , Qo 96 % C'a % B8- Vous arrive-t-il d'évaluer I'efficacité de vos stratégies de marketing et de vos méthodes de réscrvafions? Oui Non B8.1 Si oui. comnienr? -- Alliances & wketing Voac établissement participe-t-il h des aü@ces de marketing (voir définition à la page 1) avec d'autres secteurs du tourisme ou des affaires? Oui Non (Si aoa, passez la question CS) I Qui a initié cette altiance (OUces alliances)? -vous-même la chaîne hdttlitre organisme de tourisme destination autres Veuillez décrire cettc alliance (ou ces alliances). - -- NO hdpdoades membru Descris& daproddts dc Pbnlltrnrr (bons-primes. (ex, chaîne hôteliht. entreprise lacale) forfaits. programmes de grands voyageurs) 1 1 1 C4. Que! powcrntrrge de vos tbervations provient de cette dliance (ou de ces alliances)? % CS. Des produits du tourisme qui suivent. lesquclr participent 1 voue alliance (ou VOS ailiances)? La proximité des 6tabiissemtats daas votdvos aUiiIICC(s) de mprircting est-ek imporuntc? Oui Non C6.1 Si oui. a queue proximi& (temps et &tance) ces produits sont-iis de voat ha? Le Groupe de recherche sur le to*uismedeL'Université McGilL PageS i C7. Sur une échelle de 1 5, comment évalueriez-vous la nanire des interactions entre les établissements membres de I'alliancddes alliances? Coopérative 1 2 3 TA 5 non coopérative Non compétiuve 1 2 3 4 5 compétitive Confiance 1 2 3 4 5 manque de confiance Participation igale t 2 3 4 5 p~cparioninégaie CS. Quel rôle les alliances joueront-ciles dans i'avenü de votre entreprise touristique? -aucun rôle -plus grand plus pcat -demeure le même D. Rôle des gouvemewtenls D 1. Les Systkmes de ~rvatïowrégionaux (SRR)de-ent-ils 5- subventionnés par [es Ministères du tourisme provinciaux? Non Incertain D 1.1 Si oui ou non. pourquoi? D2. etes-vous satisfait des programmes de formation gouvernementaux xrvant h mettre-&-jour Ia comp6tencés des uavailleurs et aavaiileuses de i'indusîrie du tourisme? Oui Non ïnureain D2.1 S i non, quelles amtiiorations pourrait-on y apporter? D3. Qucl rôle devrait jouer les gouvernements pour influencer L'utilisation des nouveIlcs technologies de L'informaaon et de communications par L'indusaie du tourisme? aucun rûle, L'industriedevrait dicter l'utilisation des technologies - augmenter la con~suncedes reciurobgies pat l'entremise du parrainage de conf6rences. de foires commerciales d&elopper des programmes dt /onnation, ax& sur tes technologies. pour les employés de l'industrie du tourisme réglementer Ies aouveUes technologies pour vsura la sundPrduuion cc l'équité dans l'ualisation E. Au sujet & vat# en&wpriSe E*. Voue hôtel est4 situé au centre-ville? Nom E 1. Combien de chambres comprend votre hdtel? E2. Quel est le type de propridté & L'hbtel? Veuillez cocher l'esprce apQropri6. Type de propriété: Canadiennt Émnght Ind6pendante (affiliée a aucune chaîne) indépendante (affiliée h une cMae) Chaîne E3. Depuis combien de temps I'h8tel est-iI une propiM & ce w? E4. Qucl a été le taux â'cxcupuion moyen di l'hôtel au mnr dm daa. dcniiers mois? ES. Quel est le tarif de jour moyen? S E6. Quelle est la durée moyenne d'une visite voue hdtel? nuits Le Groupe de recherche sur le toutismede i'université McGiil. Page6 1 E7. Combien d'employés travaillent à I'hôtel?: Temps plein Temps partiel E8. Indiquez parmi la liste suivante, Iesquelles des technologies d'information ou de communication utilisées a voue hôtei. Ordinateurs Système &gestion &la propriété Cconférences vidéos Boite vocale Coumer électronique TéiCvision interactive Service de tdléconférence Sys3rne de gestion dc i'tnergie Til6copieurs Sm Auaes : E9. Que considirez-vous comme étant le plus grand &fi auquel fait face a) votre hôtel et b) le secteur hôtelier dans voue viile? F. A propos & vous-mêm 4 Veuiibz S. KP. inclvrr votm carte d'crflcrirrs. FI. Saviez-vous ce qu'dtait un SIR avant & teccvou a questioniiaiic? , Oui Non r F2, Depuis combien de tcmps travadiez-vous: daru L'industrie hdtelière? D pour cet dtabiissement? F3. Quel poste détenez-vous? F4. Utilisez-vous des otdinatcurs dans voue emploi? Chi Non F4.1 Si oui, quel pourren&ge & voue travail dépend de L'ordinateur? % Veuiiiez décrire vos râches iL'ordinateur : F5. Veuillez chrser, par ordre d'importance, la source (ou les sources) de renseignements que vous utilisez portt demeurer à jour en cc qui concenie les undances dans i'industrie du tourisme? Siminairrs/atclim Association de tourisme de la viUe Association hdtcihe Con~uitants Publications de I'indusuie FoWsymposiums de L'industrie Tourisme ranPAl Tourisme Québsc Aum: F6. Croyez-vous en commii assez sur les technologies d'infidon vvider disponibles pour le marlrcting et la distribution de voue enapist? Oui Non CR0 Baoking incentive HURRY! PLEASE! THE BOSS SAY'S "WE NEED MORE BUSINESS" ! 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