Summary of Perception of ICT

The findings showed that the Perception of ICT was based on the low level categories technology experience, technology dependency and technology knowledge within the sector.

All the organizations in this research sample were utilising some forms of ICT and had access to Internet technology to some extent. Although using ICT, they seemed to be struggling with it. This approach to the implementation of ICT applications - lack of coordination, leadership, hierarchy, and top management awareness and enthusiasm - resulted in mismanagement of existing ICT resources. Software applications such as PMS were often implemented rather radically, although acceptance and utilisation of the changes were proceeding slowly. This is because it was often the owner’s decision to implement the software and such decisions were made with little or no consultation with the staff who would be eventually using these applications. Consequently, during the time of implementation, the staff had to face a major reform in maintaining day-to-day tasks.

This research found that all sector organizations were increasingly dependent on ICT.

Sector organizations used ICT and were dependent on email as a common communication method, especially for dealing with international partners and customers. Furthermore, ICT was used to overcome the geographical barrier to manage day-to-day activities, and as a useful tool to save time and money. In many organizations day-to-day operations were bound by reliance on technology, especially to

174 manage the front office operations. Most of the organizations deemed ICT as an essential tool for their business.

The findings suggest that the effectiveness of ICT or e-business usage was primarily driven by the technological understanding, skill and capabilities of the staff. Technology knowledge and ability to explore the opportunities offered by ICT were based on experience, business understanding, expertise, and familiarity with the environment.

Thus, because of certain limitations in the knowledge capabilities of staff, most organizations were having management difficulties; even technical staff responsible for ICT activities often lacked the knowledge, skills, and capabilities required by the tourism sector. Furthermore there is little evidence of effort on the part of management to facilitate the development and sharing of knowledge/experiences. Additionally, opportunities to develop capabilities in the Maldives were limited.

175 4.6.3 Exploitation of ICT

Some of the low level categories associated with Exploitation of ICT were created largely because these activities were closely associated with the effectiveness of ICT usage. These issues - more specifically, software experience, web development, and e-distribution - were described by interviewees as areas largely technology dependent and critical to enhance their businesses. A set of open codes was created from interviews to illustrate the low level categories listed in Table 25. (The open codes are italicised in the text for easy reference in subsequent discussions.)

Table 25: Components of category Exploitation of ICT

Major

Web development Importance of web presence, attitude towards existing

Within the major category, Exploitation of ICT, software experience was diversified and included an assortment of software applications. As indicated earlier, these ranged from well-known PMS systems to locally developed applications. As defined earlier

176 (under the section 3.4.2 Sample population: Overview of ICT within sector organizations), most of the PMS were used to manage front office operations. Other software applications were used to manage the back office.

Many interviewees indicated that, of the PMS used (See section 3.4.2 Sample population: Overview of ICT within sector organizations for details), they regarded the software application Opera (Fidelio) - one of the leading software packages in hospitality and tourism - to be the best in the industry. Despite the high cost of this software’s implementation and maintenance, many organizations are using it or are considering using it (software bandwagon). However, the approach to software adoption by many organizations results in under-utilisation of software, leading to inefficiency.

One application service provider suggests that most of the businesses are not in a position to effectively use such applications:

What we have noticed is, generally, something like 30% of the software is not used.

Even from available software.

This situation was reiterated by the majority of organizations who admitted that most of the functions available in their software applications were unused (software leverage).

As one application service provider explained:

Most of the resorts do not want to use it as software solutions, often it is used as a like check-in, check-out, simple solutions, to manage only the basic day to day needs.

Most IT managers in charge of the PMS were mainly responsible for maintaining basic day-to-day activities, and were less involved in the strategic use of the systems. When questioned why they were not using additional functions of the software, they often had no answer; as one IT manager from an organization with a single resort admitted:

I don’t know why we are not using it.

Thus, additional functions of the software were deployed as a remedy to persisting operational problems rather than to enhance businesses. For instance, an IT manager from an organization with a single resort reported:

We don’t use that function…but now they are thinking of using it because now front office finds it difficult because we are not using that function.

177 One reason for the delay in implementing additional functions is the perception that the PMS deployed in organizations were too sophisticated and expensive. This was especially the case with organizations using Fidelio. In the Maldives, a very basic package of the PMS was distributed. This package included a basic training module.

Additional packages/functions and trainings were offered separately at an additional cost. Many organizations using this PMS felt the advanced training package and the additional packages/functionalities were too expensive on top of the high cost involved in purchasing and using the basic Fidelio system. Thus, the organizations that used Fidelio seemed less comfortable in using the applications which were sophisticated and expensive although less problematic. When questioned about Fidelio, a manager from an organization with local chain resorts explained:

I feel that we should be able to use it [Fidelio] more than what we already do. It need to be more efficient. It is not that efficient…I mean to say they should get used to it and feel comfortable with it.

Another reason appears to be the difficulties organizations faced in managing the systems (software troubleshooting). Many of them reported they faced a number of technical problems with the PMS, although software providers were supportive in troubleshooting. The situation was more prevalent in organizations that had PMS other than Fidelio. For instance, one IT manager from an organization with a chain resort asserted:

Computerised PMS is there. But now we are having some problem, lots of problems.

Sometimes there will be overflow error in the system…what you have to do is, you have to send the database….and they will give an update.

An organization using Fidelio reported:

The most frequent problem is Fidelio gets stuck. If it happens that the computer gets stuck due to some reason…then we will have to index it and restart Fidelio again.

Aside from technical problems, many of the PMS users, except for those using Fidelio, felt their PMS was user friendly and affordable (usability). When those organizations were questioned about advantages of the software, comments such as the following were frequent:

A user-friendly software, for layman.

178 Many staff with limited knowledge about Fidelio perceived it as a possible solution for their problems. When asked about Fidelio, an IT manager working at an organization with chain resorts anticipated:

When we go for Fidelio I don’t think this much error is there. It will not be there…Fidelio is so great, I heard.

Consequently, since none of the PMS on their own appeared to be sufficient for business, a number of software applications were used in most organizations to supplement the functionalities of existing PMS. The front operations were managed by the PMS and additional software applications were used to manage back office operations. This resulted in a considerable amount of replication of tasks in many organizations (repetition of tasks) generally to bridge the gap between front and back office operations or to update information from the head office. For instance an area frequently requiring repetitive work was the managing of financial accounts. A manager from an organization with single resort explained:

We have not interfaced it…handle the back office separately. I think most of the resorts do that.

When questioned further why he did not use the back office functions of the existing PMS system he replied:

There is no back office system in Fidelio, I mean a stable back office system in Fidelio.

That is the disadvantage of it.

4.6.3.2 Adoption and use of websites

Web presence was a common approach to Exploitation of ICT among the sector organizations. The Internet has become an increasingly useful marketing tool and distribution channel for the tourism sector, owing to its interactive ability to facilitate communication (Wang, 2008; Wang & Fesenmaier, 2006). The majority of interviewees deemed the web important to their business (importance of web presence). With increased on-line access and the proliferation of e-commerce for leisure end-users, many organizations were concerned about their own websites. For example, a manager from an organization with a single resort commented:

179 We have a website, reasonably comprehensive but not satisfactory, because it is not up to current standards.

In this regard, many interviewees regretted that their websites were not up to par with their competitors’ (attitude towards existing website). Such regret was reflected in comments such as:

Feel ashamed to talk about it. (Manager from an organization with local chain resorts) Although in most organizations a person was assigned to the task of maintaining the website (web maintenance), some admitted their websites were not maintained properly (web negligence).

It has a number of broken links. (Manager from an organization with local chain resorts)

Thus, many of the organizations in the sector were in the process of enhancing their website features and functionalities (web restructuring) with characteristics such as easy navigation, and variety/customised information for customers (web customisation). For instance, offering the website in multiple languages relevant to the targeted market was seen as a critical factor in marketing. The manager from an organization with local chain resorts mentioned:

We are going to cover all our main languages in the one we are developing now

Additionally, some organizations were in the process of moving from static online presence to increasing levels of interactivity:

We are re-launching the website with all the new properties [soon] and Internet booking is also included…the only thing is the payment stage. That is what is required.

Many organizations expressed their intention or desire to introduce new websites within a short period of time (approach to upgrade the web); as one of the managers from a hotel enthusiastically stated:

Our new website will be up say in one and half month at most (Manager from a hotel) Furthermore, the majority of the organizations were confident about the prospects of e-business in adding value to their e-business:

180 We would most prefer is to have direct booking that is because the margin that we get is high and the loyalty to the hotel would be big. (Marketing manager from an organization with single resort)

But a number of organizations were reluctant to embrace such sophisticated e-commerce or online real-time solutions. Thus, they responded to interview questions regarding adoption of such functionalities in their upcoming websites with statements such as:

No we won’t have it (Manager from an organization with local chain resorts) and

Online booking will not be there. (IT personnel from a hotel)

Furthermore, some interviewees claimed lack of support from top management (top management support) was impeding the advancement of incorporating e-distribution functions in their website. This was corroborated by evidence from top management.

When interviewed on the implementation of online solutions, one response was:

We are thinking. (Manager from an organization with local chain resorts)

Such apathy towards implementing online business processes seemed fuelled by the industry structure and financial commitment, coupled with the “availability” of services to support adoption. Most of the interviewees from locally managed resorts noted that the existing marketing strategy limited their bed capacity to commit to online business processes. This was because they have already sold their beds to tour operators or travel agencies. For instance, a manager from an organization with local chain resorts explained:

We do not have rooms. People must be able to book and pay for the rooms that are available and that can be confirmed.

Similarly, a hotel manager noted that continuing commitment to operators inhibited allocation of beds for online solutions:

We have already allocated for certain operators

It was also generally agreed they had limited budget to support such adoption:

181 At the moment in Maldives e-commerce and merchant accounts are really expensive...it is way too expensive for us to implement (Manager from an organization with local chain resorts).

4.6.3.3 E-distribution

Closely associated with the low level category of web presence, e-distribution was also an issue about which a number of interviewees expressed anxieties in terms of performance. The international chain resorts were the only organizations which had developed their own websites as an e-distribution channel or more specifically, to accept online payments. One of the international chain resort managers explained:

We have a reservation web site, any person can just go into our site...[website address]

They can do the booking; you know you can get the information: what we can see in the brochures, what all facilities that we give as with the stay, food, all these things the prices, and everything is mentioned and then the guest make his online booking.

However, nearly all the sector organizations had their own websites (although some were unaccessible) used for advertising and marketing. Thus, among those who have developed their own websites as a marketing tool, some organizations were engaged in strategic networks (engage in strategic networks)to position themselves in the competitive market in order to partake in distribution channels.

When you log into… [website name], our website, if you want to make booking you will be redirect to… [name of a GDS]that is our partner in making online reservation.

(Manager of an organization with local chain hotels)

Some organizations, especially those with a single resort, expressed their intention to participate in such networks of relationships:

I am currently undertaking some of the affiliate programs with hotel like hotel booking website, such as hotel.com, last minute, Travelocity and all this places (Marketing Manager of an organization with local chain hotels)

Additionally, many interviewees expressed a sense of urgency about the need to implement or take part in these channels (perceived obligations to participate in e-distribution). One of the marketing managers from an organization with local chain resort explained:

We need it now. We cannot compete with places like Thailand and Philippines because of that. We cannot depend on the charter operators forever. That will also go. The aviation industry is making a lot ofdevelopments so these things will become

182 redundant soon. And, as I said previously, tourists are coming to us directly now and we are not able to cater to them at present so it’s a big setback.

As reflected in the above quote, such perceived obligations appeared to have derived from the change in customers’ approach in planning a holiday (travelling behaviour of consumers). For instance, a number of interviewees noted a rapid increase in the number of Free Independent travellers (FITs). One of the managers from an organization with local chain resort noted that:

For the past one year the increase is roughly about 50%.

Thus, some resorts were targeting their market towards FITs. Amanager from an organization with local chain resorts expressed:

Our promotions and our promoting this product the campaigns and everything is targeting on the FITs.

Despite their desire to attract various markets and implement e-distribution channels, interviewees’ comments such as the above, were often followed by identification of the impediments in local environment they were facing. Most of these difficulties were issues related to insufficient resources and the institutional conditions of the Maldives (as discussed under the theme: Country). The implications of these issues were also reflected in interviewees from organizations which had implemented sophisticated e-business or e-distribution channels. For example, one of the international chain resort managers pointed out:

Already now we have complaint, customers telling us “I can’t get a flight and I had to postponed my trip”.