the internet encyclopedia volume phần 6 pdf

P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Everett-Church WL040/Bidgoli-Vol III-Ch-38 July 11, 2003 11:53 Char Count= 0 REFERENCES 457 CONCLUSION As the Internet becomes an even more critical channel for businesses to reach out to consumers, the value of a well- leveraged trademark has never been higher. At the same time, the pressures on trademark owners from infringing activities are requiring them to be ever more vigilant in their policing and prosecution of violators. In response to these pressures, courts and lawmakers have expanded and clarified traditional trademark protections, adding greatly to the remedies available to trademark owners who feel their rights have been violated. In this chapter, I have cov- ered the fundamentals of trademark law and applied to the unique new situations presented by Internet technologies. Although the trademark space will continue to evolve, it is clear that the value of trademarks is as well-recognized as ever in the history of commerce. If there is one conclusion to be drawn, it is that trademarks are a complex field of law and procedure, requiring expert guidance to provide maximum opportunity and protection. This chapter provides readers with a general overview of many current issues in trademark law, but it is not a substitute for qualified legal counsel. As I have noted repeatedly throughout the chapter, successful use of trademark law depends on many detailed analyses and proce- dural hurdles and requires a significant commitment of time and resources to take full advantage. Trademark law provides robust protections to those who, with assistance from talented counsel, seek to protect their goods and services in the marketplace. GLOSSARY Blurring At type of dilution in which the distinctiveness of a mark is weakened through its identification with dissimilar goods. Deep linking Creating a Web page link that is tied directly to a document deep within the page hierarchy of a Web site, rather than simply linking to the main home page of the site. Dilution A lessening of the value of a famous trademark caused by an unauthorized use of the mark, regardless of whether any actual confusion, deception, or mistake occurred. Distinctiveness The ability of a mark to distinguish the goods and services of the mark own from the goods and services of another. Domain name An alphanumeric electronic address on the Internet. Famous trademark A court-determined trademark designation under 35 USC §1125(c). Lanham Act Also known as the Trademark Act of 1946, it created a set of federal rules for governing the process of registering trademarks and established certain nationwide legal protections for trademark. Likelihood of confusion The test of trademark infringement under the Lanham Act. A likelihood of confusion exists if a substantial number of reasonably prudent consumers are likely to be confused as to the source of the goods or services. Infringement Use of a trademark in a way that is so similar to the owner’s usage that an average consumer will be deceived, will mistake the infringing good for the original, or will experience confusion over the nature or origin of the product. Initial interest confusion The use of another’s trademark in a manner reasonably calculated to capture initial consumer attention, even though no actual sale is finally completed as a result of the confusion. Intellectual property A set of legal theories that recognize property rights in intangible things such as ideas and intellectual creations. Meta tags Hidden codes embedded in Web pages that contain key words related to the contents of a particular page, designed to be seen only by search engines. Secondary meaning An association that has developed in the public’s mind between the mark or trade dress of a product and owner of the mark or product. Service mark A mark that is used to identify a service or the provider of a service rather than a tangible product, such as the name of a consulting firm or the name of a proprietary analytical process used by that consulting firm. Tarnishment A type of dilution in which the mark is used in an unflattering light, such as by associating it with inferior or distasteful products or services. Trademark A mark that is used by a manufacturer or merchant to identify the origin or ownership of goods and to distinguish them from others and the use of which is protected by law. Trade dress The overall image of a product, composed of the nonfunctional elements of its design, packaging, or labeling, including specific colors or color combina- tions, a distinctive package shape, or specific symbols or design elements. U.S. Patent and Trademark Office The federal agency charged with managing the nationwide issuance of patents and registration of trademarks. CROSS REFERENCES See Copyright Law; Cyberlaw: The Major Areas, Develop- ment, and Provisions; Internet Literacy; Legal, Social and Ethical Issues; Patent Law. REFERENCES Anticybersquatting Consumer Protection Act of 1999 (ACPA) (15 U.S.C. §1129). Retrieved May 9, 2003, from http://www4.law.cornell.edu/uscode/15/1129.html Bicknell, C. (1999). Making a mint on wallstreet.com. Wired News. Retrieved December 1, 2002, from http:// www.wired.com/news/business/0,1367,19285,00.html Brookfield Communications, Inc., v. West Coast Enter- tainment Corp., 174. F.3d 1036 (9th Cir. 1999). Coca-Cola Co. v. Gemini Rising, Inc., 346 F. Supp. 1183 (E.D.N.Y. 1972). Hormel Foods Corp. v. Jim Henson Productions, 73 F.3d 497 (2d Cir. 1996). ICANN Uniform Dispute Resolution Policy (2001). Retrieved December 1, 2002, from http://www.icann. org/udrp/udrp.htm Intermatic Incorporated v. Toeppen, 947 F.Supp. 1227 (N.D. Ill. 1996). Retrieved December 1, 2002, from http://www.jmls.edu/cyber/cases/intermat.html P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Everett-Church WL040/Bidgoli-Vol III-Ch-38 July 11, 2003 11:53 Char Count= 0 TRADEMARK LAW458 Nissan Motor Co., Ltd v. Nissan Computer Corp., 61 U.S.P.Q.2d 1839 (C.D. Cal., 2002). Nissan Computer Corporation keeps domain name, for now (2002). OfficialSpin.com. Retrieved December 1, 2002, from http://www.officialspin.com/main.php3? action=recent&rid=405 Oppedahl & Larson v. Advanced Concepts, et al., Civ. No. 97-CV-1592 (D.C. Colo., 1997). Retrieved December 1, 2002, from from http://www.patents.com/ac Panavision Int’l, L.P. v. Toeppen, 945 F. Supp. 1296 (C.D. Cal. 1996). Retrieved December 1, 2002, from http:// www.jmls.edu/cyber/cases/panavis2.html Playboy Enterprises, Inc. v. Terri Welles, 7 F. Supp. 2d 1098 (S.D. Ca. 1998), aff’d. in part, reversed in part, 162 F.3d 1169 (9th Cir. 2002). Toys ‘R’ Us v. Akkaoui, 40 USPQ.2d 1836 (N.D. Cal. 1996). Trademark Act of 1946 (also called the Lanham Act). (15 U.S.C. §1051). Retrieved December 1, 2002, from http://www4.law.cornell.edu/uscode/15/1051.html United States Patent and Trademark Office (n.d.). Trade- marks. Retrieved April 15, 2003, from http://www. uspto.gov/main/trademarks.htm Zatarains, Inc. v. Oak Grove Smokehouse, Inc., 698 F.2d 786 (5th Cir. 1983). P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 Travel and Tourism Travel and Tourism Daniel R. Fesenmaier, University of Illinois at Urbana–Champaign Ulrike Gretzel, University of Illinois at Urbana–Champaign Yeong-Hyeon Hwang, University of Illinois at Urbana–Champaign Youcheng Wang, University of Illinois at Urbana–Champaign Introduction 459 The Travel and Tourism Industry 460 Structure of the Industry and the Role of Information Technologies 460 Emerging Marketing and Management Strategies 463 Travelers and the Internet 464 Preconsumption 465 During Consumption 467 Postconsumption 467 Impacts of Internet Technology on Travel Behavior 468 Travel and Tourism Futures 469 Trend #1. The Continuing Speed and Sophistication of Information Technology 469 Trend #2. Continuing Growth in the Use and Uses of Information Technology in Tourism 469 Trend #3. Changing Forms of Information Technology as a Medium for Communication 470 Trend #4. Emergence of a New Tourism Consumer 471 Trend #5. Emergence of Experience as the Foundation for Defining Tourism Products 471 Future Behavior in Travel 472 Glossary 472 Cross References 473 References 473 INTRODUCTION The travel industry is the world’s largest industry, ex- ceeding $4.5 trillion in gross output (World Travel and Tourism Council [WTTC], 2002). Recent reports from the World Travel and Tourism Council indicate that tourism employs over 198 million people worldwide, or approximately 7.8% of the global workforce. The emergence of travel as a significant economic activity began after World War II as travel became widely accessible to the general population. As shown in Table 1, very few people traveled internationally in 1950 as measured by today’s standards. Yet, from 1950 to 1970, international travel exploded, increasing by more than 550%! This growth in international travel continued through the 1980s and 1990s to reach over 450 million visitor arrivals in 2001, representing over $260 billion (U.S. dollars) in expenditures. Since 1990 international travel has increased over 50%, and for a number of countries it has grown to be their largest com- modity in international trade. Indeed, the travel industry now serves as one of the top three industries for almost every country worldwide (Goeldner & Ritchie, 2002). Information technology has played a central role in the growth and development of the tourism industry. In the early years of mass global tourism (from the 1950s to the 1970s), the technology used was largely limited to computer systems that supported the internal functions of large operators in the transportation, hotel, and food service sectors. Also, a number of central reservation systems (CRSs) and global distribution systems (GDSs)—Sabre, Amadeus, Galileo and Worldspan—were developed to enable travel agencies (and other similar intermediaries) to directly access schedule and pricing information and to request reservations for clients. These intermediaries became the primary users of travel information systems, thus providing important links between travelers and industry players (World Tourism Organization Business Council [WTOBC], 1999). During the late 1980s and early 1990s these systems and the information they contained emerged as important strategic tools, enabling system operators such as American Airlines and Hilton Hotels to grow and success- fully position themselves within the overall travel market. The work of Mayros and Werner (1982) and Wiseman (1985) describes this significant development in the travel and tourism industry. An important characteristic of the growth of these systems was the inclusion of detailed behavioral information about each customer, including demographic characteristics, travel history, travel preferences, and responses to marketing/promotional programs. Armed with this information, existing systems were significantly enhanced and a variety of new systems were developed, which provided the basis for the emergence of a number of new approaches for managing tourism enterprises (Poon, 1993). As a consequence, the relationships of firms and organizations within the travel industry changed dramatically, placing emphasis on obtaining and distributing customer-related information as well as expanding strategic relationships in order to more fully exploit various business opportunities within the travel value chain. The success of central reservation systems and global distribution systems paved the way for the Internet, enabling the travel and tourism industry to quickly exploit its many strengths. Indeed, in many ways the In- ternet is ideal for the travel and tourism industry. As a communication tool, it is simultaneously business- and consumer-oriented. The Internet is business-oriented because it enables businesses to communicate with potential visitors more easily and efficiently and allows them 459 P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 TRAVEL AND TOURISM460 Table 1 World Tourism Growth International Tourism International Tourist Year Arrivals (millions) Receipts a (billions US$) 1950 25.3 2.1 1960 69.3 6.8 1970 165.8 17.9 1980 286.0 105.3 1985 327.2 118.1 1990 457.2 263.4 1995 550.3 406.2 1996 596.5 435.6 1997 618.2 439.6 1998 626.4 442.5 1999 650.4 455.4 2000 698.8 475.8 Source: World Tourism Organization (2001). a International transport receipts excluded. to better support and immediately respond to customer information needs through the provision of interactive travel brochures, virtual tours, and virtual travel commu- nities. In addition, the Internet enables tourism-related enterprises to communicate with their partners more effectively in order to develop and design offers that meet the individual needs of potential visitors. The Internet is customer-oriented in that it empowers the user to easily access a wealth of information, enabling the traveler to almost “sample” the destination prior to an actual visit. Moreover, emerging ecommerce capabilities enable the traveler to make reservations, purchase tourism-related products, and share trip experiences with others. Today, the Internet is one of the most important communication tools for travelers as well as travel and tourism enterprises. For example, recent studies by the Travel Industry Association of America (TIA) (2002a) indicate that almost one-third (31%) of American adults use the Internet to search for travel information and/or make reservations (see Table 2); for American travelers, this figure increases to 45%. Recent studies also show that the travel and tourism industry responded to the emergence of Internet-based technologies by adopting a number of new and innovative ways to communicate with consumers, as well as with other industry partners. As such, the travel and tourism industry is one of the most significant users of Internet technology as measured by Table 2 Internet Use for Travel Planning: 1997–2002 Year % of U.S. Adults % of U.S. Travelers 1997 7 8 1998 18 21 1999 25 33 2000 30 40 2001 33 46 2002 31 45 Source: TIA (2002a). the number of Web sites, Web pages, and online sales volume (Werthner & Klein, 1999). Indeed, recent studies of online spending show that consumers spent $19.4 billion in 2001 on U.S. travel sites, which accounts for approximately 36 percent of the $53 billion spent by consumers at all U.S. Internet retail sites (TIA, 2002b). Fur- ther, surveys of American convention and visitor bureaus show that essentially every bureau maintains a Web site, with some offering more advanced ecommerce capabilities, and surveys of the Internet indicate that over 75 million Web pages exist supporting the travel and tourism industry (Wang & Fesenmaier, 2002). This chapter presents an overview of many of the uses of the Internet by travelers and the firms and organizations that compose the travel and tourism industry. The next section provides a brief synopsis of the structure of the industry and the role of Internet technologies, focus- ing on four major sectors: hotels, airlines, travel agents (and related intermediaries), and destination marketing organizations (DMOs). Following this introduction to the use of Internet-based technologies in travel and tourism, emerging marketing and management strategies are considered and various issues related to the development and use of Web sites and online management information systems are discussed. The subsequent section focuses on the role of the Internet from the travelers’ perspective. A variety of consumer-related technologies are considered, including travel “brochure” Web sites, virtual tours, and mobile devices. As part of the discussion, changing patterns of use and their impact on the travel experience are considered. The last section of this chapter identifies five global technology-related trends affecting the future role of the Internet in travel and tourism. In addition, some possible ways in which the Internet will shape the future of the travel and tourism industry are discussed. THE TRAVEL AND TOURISM INDUSTRY Structure of the Industry and the Role of Information Technologies The travel and tourism industry can be characterized as comprising all organizations that are involved in the production and distribution of travel and tourism products. It can be viewed as an umbrella industry (see Figure 1) containing a set of interrelated businesses, such as transportation companies, accommodation facilities, attractions, catering enterprises, tour operators, travel agents, and providers of recreation and leisure facilities (Werthner & Klein, 1999). To respond effectively to the dynamic character of the industry, information must be able to flow among the clients, intermediaries, and each of the suppliers involved in serving the clients’ needs. As a result, information technology (IT) has become an almost universal distribution platform for the tourism industry. IT reduces the cost of each transaction by minimiz- ing print, coordination, communication, and distribution costs. It also allows short-notice changes, supports one- to-one interaction with the customer, and enables organizations to reach a broad audience (Poon, 1993). However, the Internet has not affected all sectors equally. Certain sectors such as airlines have been aggressive adopters of technology, using it to help manage and streamline their P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 THE TRAVEL AND TOURISM INDUSTRY 461 Travel agent Tour operator Incoming agent Hotel chain CRS/GDS Consumers Suppliers DMO, Planners & Administration Intermediaries Tourists Primary Suppliers Airlines NTO RTO LTO NGO Government bodies Note: NGO = Non-Governmental Organization NTO = National Tourism Organization RTO = Regional Tourism Organization LTO = Local Tourism Organization CRS = Central Reservation System GDS = Global Distribution System Figure 1: The travel and tourism industry and the Internet. Source: Werthner & Klein (1999). Reprinted with permission. operations and to gain strategic advantages (McGuffie, 1994). Others, such as the hotel sector, have been less enthusiastic and have only recently begun to take advantage of many of the benefits that the technology can bring (Connolly & Olsen, 1999). Many traditional travel agencies are also lagging behind other sectors in terms of technological adaptation, and it is increasingly evident that experienced consumers are often better informed than professional advisors. However, given the way in which information technology is reshaping the basic structure of both commerce and society in general, its importance to the success of all types of tourism companies can only grow in the future. As a result, tourism companies have changed dramatically the way in which they conduct their business and are under pressure to invest further in new technology in order to maintain their competitiveness. Hotels The hotel industry bases much of its distribution on direct contact with customers (WTOBC, 1999). Historically, hotels have distributed information through print-based media such as brochures, travel planners or regional guides, and received reservations by mail, phone, and fax. More recently, hotel rooms have been made accessible for booking through global distribution systems (GDSs) and through direct access to hotels using central reservation systems (CRS). However, such technologies have been in- adequate as customers have traditionally not had access to these systems and travel intermediaries have experienced difficulty and delay in finding and booking appropri- ate hotels, whereas hotels have experienced high clerical costs attracting and processing bookings from customers. The emergence of new information and communication technologies (i.e., Internet technologies) presents new opportunities to make these processes more accessible and more efficient. The use of the Internet in the hotel industry is growing exponentially and this enables hotels to reconsider the way they are doing business. Although the hotel sector overall has been slow to use the Internet as compared to other industry sectors (Connolly, Olson, & Moore, 1998), many hotel managers are becoming increasingly aware of the potential distribution, promotion, and interactive marketing advantages of the Internet. The Internet offers several advantages for hotels of all sizes. One of the advantages is increased effectiveness due to cost reduction and revenue growth. Another advantage is higher quality customer relationships due to the possibility of personal contact services and dialogue with the customer (Morrison, Taylor, Morrison, & Morrison, 1999; Sterne, 1999). For example, customers can answer questions about their personal preferences for rooms, and based on this information, a customer receives services at the hotel that are adapted to his/her preferences. It is now generally agreed that Internet-related technologies are the single greatest force driving change in the hotel industry and will continue to have dramatic and sweeping implications on how hotels conduct business in the future. Hotels are expected to position themselves strongly on the Internet to take advantage of its distribution capabilities such as reach, content dissemination, feedback collection, interactivity, and one-to-one marketing. Further, current trends indicate that this greater involvement in IT by the hotel industry will increasingly encompass customer-centric approaches to capitalize on the cost structure and long-term potential of the Internet while at the same time differentiating products and building lasting value propositions. P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 TRAVEL AND TOURISM462 Airlines Air transportation systems worldwide are being dramatically affected by technological developments. Many of these developments focus on the use of Internet technology to improve the efficiency of operations (Sheldon, 1997). The first applications of computer technology to airline operations emerged in the 1950s when central reservation systems (CRSs) were designed. The primary function of computerized airline reservation systems was to simplify the process of booking flights by allowing travel agents to find relevant flight information and make reservations directly from their terminals without having to call airline reservations offices (Klein & Langenohl, 1994). Because of their many operational and cost-related advantages, CRSs became essential for the distribution of airline tickets through travel agencies. Until the mid 1970s, airline computer reservation systems were used only for proprietary airline information and the major airline companies all had their own CRSs (Sheldon, 1997). Some of the CRSs were combined to become global distribution systems (GDSs), which provided multiple carrier information and constituted important electronic distribution channels. The major GDSs include Galileo, Amadeus, Sabre, and Worldspan, and these are now available through the Internet. These airline reservation systems provide a number of function- alities to travel agencies including flight schedules and availability, passenger information, fare quotes and rules, and ticketing. Most of the systems now also enable consumers to view schedules, fares, and fare rules and to book flights. In addition to developing reservation systems as the predominant distribution channel, many airlines have invested heavily in information systems to auto- mate other areas of airline operations and management, which can be categorized into two sections: (1) systems for streamlining operations such as baggage and cargo han- dling systems, cabin automation, and safety systems, and (2) decision support systems to aid in decision-making related to flight scheduling and planning, crew scheduling and management, gate management, and departure control. Travel Agencies/Online Intermediaries Travel agencies are intermediaries that arrange and dis- tribute travel information to individual travelers, with some agencies specializing in certain market segments or products. In addition, many travel agencies function as tour operators, designing their own package tours and selling them either directly to the traveler or through other agents. Travel agencies use information intensely and therefore need IT to process that information. In fact, information on travel products, destinations, schedules, fares, rates, and availability is their most important product and defines their existence. The more information a travel agency can access electronically, the more timely, accurate, and efficient services it can provide to its clients. The most prevalent application of IT in travel agencies is the GDS terminal, which was first placed in travel agent offices by major airlines to facilitate airline bookings in the 1970s (Sheldon, 1997). GDS terminals are still the major information and booking tools used by travel agents for all types of travel products. However, the advent of the Internet has significantly changed the way travel and tourism products are distributed. Increasingly, consumers can access information online and travel agents have been forced to adapt to this change. Travel agents have an am- bivalent relationship with the Internet because it can be a threat in that it makes products available directly to the consumer and yet it also provides additional business opportunities. Many travel agencies offer services on the In- ternet, giving them a much broader geographic consumer base than if they operated in traditional ways. They can receive bookings from clients through the Internet and can even book the passenger on flights without issuing paper tickets. Travel agents can also use the Internet as a research tool, and this might be particularly important in the future as some travel products become available only via the Internet. In addition, IT applications can be used by travel agencies to create value-added products or services through the online provision of their travel expertise in combination with the wider range of travel products and services available on the Internet. However, realizing that physical location is irrelevant in today’s electronic marketplace, new types of travel agencies which exist only on the Internet, such as Expedia and Travelocity, are emerging and continue to raise the level of competition among travel agencies. Destination Marketing Organizations Destination marketing organizations (DMOs) are typically not-for-profit, small and medium-sized, information- intensive organizations that perform a wide range of activities to coordinate the diverse components of the tourism industry (Gartrell, 1988). DMOs act as a liaison, collecting and providing information to both the consumer and the industry in order to facilitate tourism promotion and development of a specific area. In general, destination marketing organizations have been slow to adopt IT in their operations and marketing activities. It was not until the late 1980s that computer systems were adopted by the larger DMOs to enhance publi- cations and information operations and, to a lesser extent, to support reservation services. During the late 1990s, as desktop computing technologies became more widely available, DMOs began to use IT more extensively. More and more DMO directors realized that Internet marketing was an inseparable, often critical part of their overall marketing endeavor. They have since developed a high level of interest in the Internet because the use of the Internet offers the potential to reach a large number of consumers at relatively low cost and provides information of greater depth and quality than traditional media. In other words, using Internet technology enables DMOs to promote their destinations’ tourism products and services better, present associated organizations more equally, and collect customer information for effective customer relationship management (CRM). More importantly, the Internet allows them to improve business processes, conduct marketing research, provide customer service, and facilitate destination management and planning with less dependency on time and space. P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 THE TRAVEL AND TOURISM INDUSTRY 463 Despite this potential, DMOs have not been particularly quick in establishing a sophisticated Internet presence. Several factors have contributed to the current status of DMOs’ Internet strategy. One factor is related to the complex structure and relationships of the various constituents DMOs represent. The travel and tourism industry has a very complex structure, with a large per- centage of the organizations classified as small businesses (Gartrell, 1988). Among the DMOs’ constituents are marketing organizations at different levels, suppliers, and distributors. Although each entity maintains critical relationships with other entities in order to deliver the desired products and services, the enormousness of this diverse industry as well as the different benefits these constituents are seeking make the job of DMOs complex and difficult. The unique characteristics of the Internet and the capabilities required of DMOs for implementing effective Internet marketing have also been identified as important influences. Marketing is a creative and adaptive discipline that requires constant regeneration and transformation in accordance with changes in the environment (Brownlie, Saren, Whittinton, & Wensley, 1994; Cronin, 1995). Thus, conventional marketing activities cannot be implemented on the Internet in their present form (Hoffman & Novak, 1996). For Internet marketing strategies to be successful, DMOs have to be aware of the capabilities and characteristics of the Internet and need to start developing new marketing concepts and paradigms, because the In- ternet presents a fundamentally different environment for marketing activities than traditional media (Connolly & Sigala, 2001). Despite these problems and challenges, DMOs have begun to recognize the opportunities that emerge from using the special features of the new medium, in particular the interactivity and multimedia capabilities it provides. As a result, the number of DMO Web sites is rising rapidly, offering online destination information with increasing quality and functionality. Emerging Marketing and Management Strategies The adoption of information technology has transformed the way in which the tourism industry conducts business. With the assistance of new technology, especially the Internet, new opportunities have emerged for tourism organizations, which enable them to market their travel products and services and manage their daily business activities more effectively. In particular, innovative marketing and management strategies have evolved in the areas of Web development, Web advertising/promotion, e-commerce activities, customer relationship management, and the use of online destination management systems. Web Site Development Hanson (2000) observed that there are three major stages in Web site development: (I) publishing, (II) database re- trieval, and (III) personalized interaction. Stage I sites provide the same information to all users. Though a Stage I site can contain thousands of pages, pictures, sound, and video, it is limited in the dialogue it affords between the travel Web site and the user because it only broadcasts information from the Web site to the viewer. Modern Web tools make Stage I travel Web sites easy and inexpensive to develop in that almost any document can be converted and moved online. With experience and investment, the travel organization moves to Stage II Web sites, which combine the publishing power of Stage I with the ability to retrieve information in response to user requests. The responses are dynamically turned into Web pages or e-mail. In- teractivity and dialogue have started, although this activity is limited to a series of “ask–respond” interac- tions. However, the ability to use Web sites as points of access to images, sound, and databases is particularly valuable. A Stage III travel Web site dynamically creates a page catering to an individual customer. It moves beyond an “ask–respond” interaction into a dialogue and may anticipate user choices and suggest possible alternatives. A Stage III travel Web site does more than just react to requests typed into forms or selected by clicking on an image. It requires the capabilities of Stages I and II plus the customization of content and functions to the needs of a specific user. Destination marketing organizations use Web-based technologies in different ways and with varying intensity, owing to different backgrounds, financial resources, and marketing objectives (Yuan & Fesenmaier, 2000). Some DMOs are at a preliminary stage of utilizing Web technologies for marketing activities, and these Web sites are typically only used to broadcast information by providing brochure-like information. Others are more advanced and sophisticated in this regard, taking advantage of Web technologies to make business activities more effective and efficient, or even to re-engineer whole business practices. More advanced DMO Web sites typically include more sophisticated capabilities such as interactive queries and request forms, personalization, and recommendation functions. Web Advertising/Promotion The Internet is an almost pure manifestation of marketing principles and practices (Inkpen, 1998). It is a tourism marketer’s dream because (1) it enables travel companies of different sizes to compete on more equal terms and (2) it allows a travel company to open up a direct and potentially personalized channel of communication with its customers. In other words, travel companies of all sizes are much more equal in their competition for consumers’ attention on the Internet. Travel is the most important business on the Web in terms of the volume of advertising and promotion (eMarketer, 1999). It is also most likely to generate revenues and achieve profits through its Web presence. However, in order to be successful in Web advertising/promotion, tourism organizations have realized that the Web is a medium that combines the elements of other media. Hoffman and Novak (1996) describe the new form of communication that the Internet provides as an “interactive multimedia many-to-many communication model” where interactivity can also be with the medium in addition to through the medium. Travel and tourism fit especially well with interactive media because P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 TRAVEL AND TOURISM464 they constitute an information intensive industry where transactions can be rather easily made online. E-commerce Activities Before the onset of the Internet, electronic commerce was usually conducted over a proprietary network con- necting a group of organizations such as airline companies, travel agents, and hotels with each other through CRSs or GDSs. The nature of the transaction was purely business-to-business. Tourism businesses now use the In- ternet as a means of redefining their focus, creating new products, finding new distribution channels, and creating new markets. For example, the major airline sites now offer customer reservations, electronic tickets, seat selec- tion, in-flight merchandise, and reward points; in addition, some of the airlines have enhanced their sites to offer lodging, transportation-package deals, and cruises through their alliance partners (Harrell Associates, 2002). The use of the Internet in the travel and tourism industry has also been driven by the convergent forces of the shift of consumer behavior toward more intensive uses of online environments and the successful adaptation of marketing and sales strategies by the industry. For many consumers, online booking of travel is already the norm, and this can only be expected to strengthen in the immediate future. Travel is a product that online consumers want to purchase; indeed, according to Forrester Research (1999), it is the product that those who are online, but have not yet purchased online, want to purchase most. From the point of view of travel and tourism suppliers, however, there is some reticence from certain sectors of the industry, such as the cruise line industry, to compete directly with their traditional intermediaries by making the move to direct sales, whereas others, such as the airline industry, have embraced the new online channels with great enthusiasm. E-commerce solutions are gaining momentum and are expanding beyond reservations to include supply- chain management (e.g., procurement), internal business applications through intranets, and other business-to- business transactions as well as business-to-customer sales. It is certain that the Internet will continue to become faster, more reliable and secure, and also more feature- rich. In addition, it will become more mobile through portable devices such as personal digital assistants (PDAs) and cell phones that can communicate with ambient in- telligent devices embedded in appliances and will increasingly be enabled by speech, thus truly giving customers anytime, anywhere access in a format conducive to their needs. Customer Relationship Management Customer relationship management (CRM) is a man- agerial philosophy that calls for the reconfiguration of the travel organization’s activities around the customer. Successful CRM strategies evolve out of the ability to effectively capture exhaustive data about existing and potential customers, to profile them accurately, to identify their individual needs and idiosyncratic expectations, and to generate actionable customer knowledge that can be distributed for ad hoc use at the point of contact (Newell, 2000). Further, the success of CRM initiatives is depen- dent on the ability to collect, store, and aggregate large amounts of customer information from various sources. One of the major driving forces of CRM using the Internet is the ability to target each individual interactively. With the Internet, individuals and travel marketers can inter- act, and this direct interaction creates customer value and sets the stage for relationship building. Travel marketers continue to seek ways for compiling accurate databases of personal information such as sociodemographic, so- cioeconomic, geographic, and behavioral characteristics for potential customers. Such a database creates a wealth of relationship marketing opportunities. Crucial to the establishment of such comprehensive customer databases is the ability to use software agents, without human inter- vention, to collect, categorize, and store large amounts of personal customer information in a cost effective manner for later data mining. A second important issue is the ability to collect the desired information directly from the primary source rather than having to purchase it from secondary sources such as travel and tourism consultants. Online Destination Management Systems The term “destination management system” (DMS) has come into use in recent years to describe the IT infrastruc- ture of a destination marketing organization and may be defined in a number of ways depending on the capabilities of the system. Increasingly, a DMS is regarded as having to support multiple functions. An integrated DMS supports not only the DMO’s Web site, but also a wide range of other promotion, marketing, and sales applications (Sheldon, 1997). These might include the design and production of printed materials, tourist information center services (for information and reservations), call center services, kiosks, database marketing, project/event management, and marketing research. DMSs can greatly enhance a travel destination’s Web presence by integrating information from various suppliers and intermediaries and are increasingly used as the informational and structural basis for regional Web portal sites. TRAVELERS AND THE INTERNET Internet technologies have not only changed the structure of tourism and its related industries. They have also had a profound impact on the way consumers search for tourism information, construct and share tourism experiences, and purchase tourism products and services. In contrast to many consumer goods and services, the consumption of tourism experiences involves often extensive pre- and post-consumption stages, in addition to the actual trip, which itself can spread over several weeks (Jeng & Fesenmaier, 2002; Moutinho, 1987). These stages of the tourism consumption process are typically information- intensive, and Internet-based technologies have come to play a significant role in supporting consumers throughout this multistage process. The specific ways in which the various technologies are used in the different stages de- pend on the particular communication and information needs they are expected to serve (see Figure 2). For in- stance, Internet technologies are used in the preconsumption phase to obtain information necessary for planning P1: IML/FFX P2: IML/FFX QC: IML/FFX T1: IML Travel-REVISED WL040/Bidgoli-Vol III-Ch-39 August 14, 2003 17:52 Char Count= 0 TRAVELERS AND THE INTERNET 465 Pre-Consumption Consumption Post-Consumption Planning Expectation Formation Decision-Making Transactions Anticipation Connection Navigation Short-Term Decision-Making On-Site Transactions Sharing Documentation External Memory Re-experiencing Attachment Figure 2: Communication and information needs in the three stages of tourism consumption. trips, formulate correct expectations, and evaluate, com- pare, and select alternatives, as well as to communicate with the providers of tourism products and services to prepare or execute transactions. In contrast, the functions served by technologies during the actual consumption of tourism experiences are more related to being connected and to obtaining detailed information relevant at a specific place and moment in time. During the postconsumption phase, Internet technologies are used in ways that allow sharing, documenting, storing, and reliving tourism experiences, as well as establishing close relationships with places, attractions, or product/service providers, as in the case of Frequent Flyer programs. For example, e-mail will typically be used in all stages, but mainly to obtain information or make reservations in the preconsumption phase, to stay connected with family and friends while traveling, and to share pictures and stories with members of one’s travel party or other individuals after concluding a trip. Although all Internet technologies are probably used by travelers at some point or in some way, several applications have been identified as being of particular importance in the context of tourism experiences. The following provides an overview of these technologies, how they tend to be used, and the impact they have on consumers during the various stages of the tourism consumption process. Preconsumption It is in the initial phase of the tourism consumption process that most of the impacts related to Internet-based technologies are currently experienced. Consumers use the Internet and its diverse applications in this first stage of the tourism experience to gather information, formulate expectations, inform/support their decision-making, and reserve or purchase the various components (transportation, accommodation, etc.) to be consumed during their trips. Brochureware Brochureware refers to Web sites or Web pages created by transferring the contents of printed tourism brochures directly to digital environments. Brochureware was one of the first Internet applications made available to tourism consumers, owing to the fact that tourism businesses quickly recognized the value of the Internet as a powerful publishing medium. Web sites designed as brochureware represent the simplest form of Web design and completely ignore the content presentation and communication possibilities the World Wide Web offers (Hanson, 2000). Nevertheless, brochureware is the most common way in which tourism information is currently made available to consumers and, consequently, constitutes an integral part of tourism-related online experiences. Despite their obvious limitations, digitized tourism brochures on the Internet still support consumers in that they enable potential travelers to browse and evaluate tourism products without temporal or spa- tial limitations. Furthermore, even the very basic im- plementations of brochureware make use of hypertext and provide hyperlinks that allow consumers to move through online tourism information in ways that are typically not supported by printed brochures. Brochureware is expected to give way to more interactive forms of Web site content presentation as more and more tourism businesses recognize the value of engaging consumers in experiential ways. Virtual Tours Virtual tours are tools that enable the potential consumers of tourism products to explore and immerse themselves within an interactive Web environment in order to gain the needed experiential information about a destination or tourism establishment (Cho & Fesenmaier, 2001). The term “virtual tour” is widely used on the Web and can range from a series of pictures or slide shows to stream- ing video and highly interactive virtual reality settings. The realism provided through virtual tours creates im- mersion, which, in turn, leads to immediate, direct, and real experiences that generate a strong sense of presence. As a result of this telepresence experienced through virtual tours, consumers are able to construct a more vivid picture of the tourism product and are therefore more likely to reach well-informed decisions. Thus, the signif- icance of virtual tours in the context of tourism lies in providing consumers with an opportunity for “product trial” before the actual purchase. Tourism products are, in large part, experience-oriented intangible goods (Vogt & Fesenmaier, 1998) that are typically consumed at a place far away from the point of purchase and often cannot be experienced without being consumed in their entirety. Consequently, product trial is usually not available to the potential consumers of tourism products. However, tourism bears many risks because its components are consumed in unfamiliar environments, constitute a significant expenditure for most consumers, and typically entail high involvement from the part of the consumer. 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Among Americans who did travel planning over the Internet in 1997, 7% did all of their travel planning over the Internet, 16% did most of their travel planning over the Internet, . 459 The Travel and Tourism Industry 460 Structure of the Industry and the Role of Information Technologies 460 Emerging Marketing and Management Strategies 463 Travelers and the Internet 464 Preconsumption