The Emergence of Electronic Market Systems in the European Tour Operator Business

Recent developments in computer reservation systems and associated new trading patterns may bring about important changes to the (West) European travel and tourism industry in general and the tour operator business in particular. The new trading forms are deriving from the establishment of electronic market systems, for example, as a result of the merging of global airline reservation systems with hotel, car rental and other booking systems. Electronic market systems may well provide new opportunities for some tour operators as well as threaten the competitive position of others, and, overall, may make it necessary for tour operators to seek new ways to 'add value' to travel and tourism products. Tour operators provide one of the core and sold long in advance, the period functions for the leisure .sector of the immediately before their intended time of travel and tourism industry. Tour opera-consumption issometimes adecisive factors , in assembling holiday packages or tor in the eventual financial success of a tour operator because of last minute cus-by Karsten Kdrcher tomer demand. inclusive tours from a wide range of available components, provide a link between the travel and tourism principals on the one hand and travel agents and consumers on the other. It appears that while the dominant European tour operator groups have been concentrating on mass markets and on achieving economies of scale, many of the smaller tour operators have been specialising in and serving niche markets. The adoption and diffusion of new information and communication technologies (ICTs) and the emergence of electronic market systems in the travel and tourism industry in general and in the tour operator business in particular, may, however, have major consequences for the tour operator business and may change this situation by enabling small tour operators to enter mass markets and, vice versa, encourage large tour operators to enter niche markets. In addition , the new trading forms may threaten the position of some tour operators as well as provide new opportunities for others. New ICTs, particularly those that support interorganisational trading activities, are highly important to the tour operator business because of the nature and complexity of its products. The products 'in-clusive tour' or 'packaged holiday' consist of multiple components delivered by a large number of operators, thus creating a need for extensive information exchanges and communication. However, it is not only the fragmentation of packaged holidays that demand this communication and information exchange. Inclusive …