Meeting the Challenge

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National Online Tourism Scoping Study

CRC Tourism

Meeting

the

Challenge

IT Program, CRC for Sustainable Tourism

Dept Geographical Sciences and Planning, University of Queensland, St Lucia 4072

Telephone (07) 3365 8340, Facsimile (07) 3365 6899

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Executive Summary

Meeting the Challenge recognises that online

technologies will play an increasingly significant role in the distribution of the Australian tourism product. Existing impediments to using online technologies are being overcome, and the Australian industry must be prepared to operate in an environment where business partners, government agencies, and consumers expect accurate, timely, and comprehensive access to information, and the capacity to immediately act on the basis of that information.

Meeting the Challenge proposes four key principles

for developing online strategies for the tourism industry –

1. Ensure that use of online technologies in the tourism industry contributes to the global tourism development objectives of : selling Australia better; a more competitive Australia; and Australia – being better prepared.

2. Encourage tourism businesses, especially Small and Medium Tourism Enterprises (SMTEs), in all sectors to participate in the online economy at a sustainable rate of uptake.

3. Ensure that the Australian tourism industry and its global partners have access to the highest quality information for making decisions about online initiatives.

4. Ensure that the opportunities presented by online tourism are accessible to regional and rural tourism enterprises.

The Australian tourism industry generated economic activity of approximately $60 billion dollars in 1997/8. While over 75% of this income was from domestic tourism, tourism is an increasingly important export industry for Australia. Tourism product reaches consumers through a variety of distribution channels involving : producers; wholesalers; retailers; and public and private sector facilitators.

Online technologies can facilitate information flows and transactions and improve efficiencies within the tourism product distribution chain. Australia is widely perceived as a boutique destination internationally, and faces competition on the domestic front from relatively cheap destinations throughout Asia and the Pacific. Lack of information about destinations and products, and difficulties in purchasing product are cited as impediments to Australia’s international competitiveness. Improved efficiencies in the distribution chain will lead to the tourism industry providing more competitive product, while increasing the capacity for international and domestic tourists to access that product.

The Office of National Tourism commissioned the Cooperative Research Centre for Sustainable Tourism to conduct a National Online Tourism

Scoping Study. The National Forum for Online Tourism identified the primary objectives of the Study –

• Describe the scale and extent of existing and emerging online technologies and distribution channels in the tourism sector nationally • Investigate the opportunities presented by

online technologies, and the impediments to realising those opportunities

• Investigate the negative impacts and sectors at risk from current and future online developments in the Australian tourism industry • Identify international benchmarks for the

application of online technologies within the tourism industry

• Recommend an implementation strategy, including change agents and funding strategies. The study included consideration of a range of online technologies including, but not limited to : the World Wide Web; electronic mail; and electronic commerce. The technologies were found to already be contributing to a range of functions within the tourism industry, including : destination promotion; statistical data exchange; enhanced information retrieval and exchange; passenger processing; inventory management; and booking, ticketing, and settlement procedures. The study included a review of over 1000 online initiatives from the Australian tourism industry. Many of these initiatives have been specifically designed to facilitate business to consumer information flows and transactions, but there are also initiatives involving : government and consumer; government and business; business and business; and consumer and consumer communications.

It is difficult to quantify the number of businesses involved in the distribution of the tourism product. The accommodation sector may consist of between 17 000 and 28 000 enterprises, with many more involved in : transport; attractions and tour operations; food and beverage; intermediary services; and retail services. The Tourism Council of Australia has over 30 000 members and affiliated enterprises.

Large enterprises and Governments are recognised as driving forces in the uptake of online technologies in the Australian tourism industry. Large enterprises generally have strong histories of using information technology for business to business communications. Consequently, large enterprises have greater capacity than Small and Medium Tourism Enterprises (SMTEs) to take advantage of emerging online technologies. Governments play an important role in facilitating tourism in Australia, and have generally developed online strategies to support destination marketing and industry oriented information provision functions.

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Statistical information about the scale and extent of existing initiatives is difficult to validate. It is estimated that 10 – 15% of Australian businesses have some form of Internet presence. Whether the rate of uptake is higher amongst tourism businesses is not known. An analysis of tourism businesses registered with major online search engines suggest 2 000 – 2 500 enterprises with independent online presence, although many more may be included in geographic or interest area portal sites, or have not registered with major search engines. Detailed information about online business and business communication initiatives is especially difficult to obtain.

Analysis of international online tourism initiatives indicates that the Australian tourism industry has generally achieved a comparable level of development. Australia provides some international benchmarks for government and consumer and government and business communications. Sophisticated business and consumer communication applications have not been developed in Australia to the extent that has occurred internationally (especially in the United States), and there are few consumer and consumer applications (newsgroups, chat rooms etc.) related to the Australian tourism product.

There is no basis to expect that the Australian tourism industry has ‘missed the boat’ in terms of developing a prominent online position.

Online technologies provide demonstrable opportunities for the tourism industry to :

• Streamline communication channels within the industry

• Develop sophisticated marketing and product distribution mechanisms to meet consumer needs

• Maintain a 24 hour, seven day a week global presence which will strengthen international positioning for new and existing consumers At the same time, there are substantial impediments to the uptake of online technologies. These include : • Online market failure in terms of : the

comprehensiveness of product coverage; the timeliness of bringing product to market; and the effective branding of Australian destinations due to domination of online market space by large international enterprises potentially marginalising Australia.

• The vast amount of online information making locating and validating information difficult • The global nature of the Internet making

establishing a legal framework for e-commerce difficult

• Short-term technological issues such as transaction security serving as an impediment to completing transactions online

• Existing players, such as intermediaries, being threatened by the emergence of new roles and new online players

• A lack of knowledge, skills, and technical support, especially for SMTEs and in rural and regional areas.

Meeting the Challenge has identified risks to the

Australian tourism industry resulting from the emergence of online technologies in the product distribution chain. Those at risk include : SMTEs; rural and regional enterprises; intermediaries; and the Indigenous tourism product.

The National Forum for Online Tourism has a responsibility to oversee the development of a strategic plan for implementing actions corresponding to each of the four key principles identified in Meeting the Challenge. This report recommends educative, facilitative, and research oriented actions as a contribution to this process. These actions include taking advantage of existing Government and industry initiatives, and providing resources for new initiatives.

Priority Actions

1. Enhancing National Data Infrastructure for Tourism

Support the development of a national information model to foster compatibility between key Government and Government funded databases (statistical and destination/marketing oriented).

2. National Online Tourism Resource Centre

Provide two years funding to establish a resource centre to develop education, training, and facilitative projects to support the move to online business practices, especially among SMTEs and in regional and rural destinations. The Resource Centre needs to be specifically established for the tourism industry to ensure that tourism specific issues are addressed. 3. Regional Tourism Initiatives

Provide funding for Regional Tourism Authorities to develop online initiatives that support State Tourism Organisation marketing objectives.

4. Empowering Intermediaries

Provide funding to enable key intermediary industry associations (Australian Federation of Travel Agents, Inbound Tour Operators of Australia) to develop training and adjustment strategies for intermediaries to facilitate

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appropriate uptake of online technologies in this sector.

5. Indigenous Product Online

The Commonwealth Government to commission an immediate study to identify issues and resources to get the Indigenous tourism industry online.

Meeting the Challenge has identified a number of

areas where targeted research to underpin strategy development is required to ensure that the Australian tourism industry takes advantage of the opportunities presented by online technologies. Examples of further challenges include : legal issues; consumer information needs; tourism voice on major forums; and evaluative research.

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Background to the National Online

Tourism Scoping Study

The National Action Plan for Tourism was released in June, 1998. The Action Plan identified online technologies as providing a contribution to Australia’s tourism marketing, distribution, and settlement system. The Action Plan identified four initiatives relating to facilitating the uptake of online technologies within the tourism industry –

1. Sponsor a national scoping study to identify deficiencies in Australia’s tourism distribution system and the scope for online innovation. 2. Establish an online tourism forum group to

identify and address factors that impede the use of technology by the sector.

3. Examine the scope for using the Australian Tourist Commission web site as a ‘single point of entry’ for tourism.

4. Work with industry to implement an online strategy for Australian tourism with the view to maximising the potential for marketing and product distribution.

The National Forum for Online Tourism was formed in late 1998, and developed the terms of reference for the National Online Tourism Scoping Study. The study commenced in January, 1999. The National Forum for Online Tourism has made substantial contributions to the conduct of the Study. The Study itself will be a key resource for developing a national online strategy involving Government and industry actions.

A range of businesses play a role in the distribution of tourism products. Figure 1 identifies key players in the Australian tourism industry.

Many other players play a vital role in the tourism industry. These include players from : construction; communications; manufacturing; finance; and entertainment industries.

Figure 1 : Structure of the Australian Tourism Industry Meeting the Challenge makes the following

observations about the nature of the tourism distribution chain in Australia –

• 90 - 95% of Australian tourism businesses are small businesses, predominantly in the food and beverage; entertainment and recreation; retail; and accommodation sectors

• While tourism activity is focused on the coastal capital cities and major regional areas, Federal and State Governments are strongly committed to developing the tourism industry in regional and rural Australia.

• Domestic tourism provides over 75% of the $60 billion earned by the tourism industry annually.

• The use of Indigenous culture as an attraction is important to the future of the industry, but needs to be carefully managed to ensure environmental and cultural sensitivity.

• While online technologies will have substantial impacts on the tourism distribution chain generally, impacts on these key aspects of the industry in Australia require specific attention.

FACILITATORS

PRODUCERS

WHOLESALERS

RETAILERS

CONSUMERS

(Adapted from Holloway - The Business of Tourism)

PUBLIC

• Australian Tourist Commission • State Tourism Organisati ons • Visa and passport offices • Education and training providers • Policy/regulatory agencies • Public ports/port services • Local Government Associations

PRIVATE

• Travel insurance services • Travel finance services • Travel trade press • Private education/training • Guides/timetable publishers etc. • Tourism promotion organisations • Package travel

• Accommodation • Food and drink • Transport • Activities • Attractions

• Tour operators/wholesalers

• Travel agent franchisors • Travel agents

• Tourists

ONLINE

• Computer Reservation Systems • Global Distribution Systems • Portal sites

• Internet Service Provi ders • WWW site developers • Hardware and software

suppliers Research and data services

•

Regional Tourism Authorities •

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Case Study #1 – ATLAS Travel Technologies

Established on 3 December 1997, Atlas Travel Technologies Pty Limited (Atlas) is a joint venture between Telstra Corporation and Amadeus CRS. Atlas has four major lines of business:

• Atlas is the National Marketing Company in Australia and New Zealand for the Amadeus CRS

• The Atlas 2000 Retail and Wholesale Tour Management System provides information, reservations, accounting, management information and destination database services. Major clients include Jetset Tours, Great Aussie Holidays, Countrylink, Queensland Rail, Australian Reservation Centre and several State tourism agencies.

• Atlas Moneydirect is a complete electronic payment and financial settlement system for the travel industry

• Atlas provides Internet reservation systems for consumers and the travel trade. Major clients include : Telstra Big Pond Travel; Destination Queensland and Sunlover Holidays; and Destination Northern Territory.

Atlas demonstrates alliances between new and existing tourism enterprises that use online technologies to undertake a range of functions.

Figure 2 : Information Flows in the Tourism Industry (Sheldon, 1997)

Figure 2 identifies some of the key communications in the distribution chain.

Online technologies have already led to the entry of significant new players in the tourism industry. For example, Internet search

engine portals (such as Yahoo!, Excite, Lycos, and LookSmart) have established themselves as virtual travel brokers through strategic alliances with tour packagers; tourism authorities; product suppliers; and technology developers. These alliances are a new feature of the tourism industry, and indicate a shift in emphasis in the product distribution chain.

Product suppliers are also using online technologies to increase their direct sales capacity.

The tourism distribution chain is supported by a range of communications between players in the

industry. Communications consist both of information flows, and transactions between players. The Internet provides a range of technologies which can support communications. These include –

• World Wide Web sites

• Electronic messaging (e-mail)

• Electronic commerce (e-commerce) • Internet relay chat

(IRC) • Newsgroups (Usenet and alt) • File Transfer (FTP) • Electronic Document Interchange (EDI) • Teleconferencing • Web TV (digital broadcasting and streaming) • Dynamic database technology • Interactive Voice Response (IVR)

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Table One identifies transactions and information flows according to the nature of the players involved in the communication. Each of these communication

types needs to be addressed in developing an effective online strategy for the tourism industry.

Table One : Online Functions for the Tourism Industry

Communications Function

Government – Business Destination promotion Destination information Statistical data exchange

Regulations and standards information Compliance procedures (transaction) Government – Consumer Destination promotion

Regulations and standards information Destination information

Passenger processing (transaction) Business – Business Product promotion

Schedules, rates, availability information Reports and analyses

Commission processing (transaction) Bookings (transaction)

Settlement (transaction) Business – Consumer Product promotion

Schedules, rates, availability information Reports and analyses

Customer satisfaction procedures Bookings (transaction)

Ticketing (transaction) Settlement (transaction) Consumer – Consumer Destination promotion

Destination information Product promotion

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Study Objectives and Overall Approach

The Cooperative Research Centre for Sustainable Tourism (CRC Tourism) was contracted by the Office of National Tourism (ONT) to undertake the National Online Tourism Scoping Study. The National Forum for Online Tourism identified the Study objectives –

• Describe the scale and extent of existing and emerging online technologies and distribution channels in the tourism sector nationally. • Through consultation with industry bodies and

research, describe the positive impacts and opportunities of current and future online developments in the Australian tourism industry and its sectors.

• Identify the impediments to tourism sectors realising their potential.

• Through consultation with industry bodies and research, describe the negative impacts and adjustment issues flowing from current and future online developments in the Australian tourism industry and its sectors.

• Profile the sectors likely to be negatively affected, estimate the extent of dislocation and identify the strategies that might be used to address these issues in the changing market environment.

• Examine and report on

developments/benchmarks for online tourism amongst international competitors.

• Recommend an implementation strategy, consulting at an early stage with the various stakeholders in that implementation, including change agents and funding strategies.

CRC Tourism undertook a substantial resource review, as well as consulting widely with tourism industry representatives and surveying online initiatives from within the tourism industry in Australia and internationally. An National Forum for Online Tourism (NFOT) workshop was held in Sydney on 04/02/99 to provide Forum input into the direction of the Study. A second workshop was held in Brisbane on 18/03/99 to review an initial draft report and provide advice on potential actions and recommendations arising from the research.

The Meeting the Challenge report describes a selection of the resources accessed throughout the Study. A Resource Directory has been compiled which contains documents relating to each of the scoping study objectives, and provides validating material. The Directory can serve as a baseline collection of resources to be augmented as various tourism online strategies are developed and implemented. It is envisaged that the Resource Directory will be available through the Office of National Tourism WWW site.

A summary of the Resource Directory is included as Appendix B. A list of the organisations who have contributed to the Study is included in Appendix C.

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Existing Australian Online Tourism

Initiatives

The Australian Bureau of Statistics identifies small business enterprises as having less than 20 employees (less than 100 employees for manufacturing enterprises). Medium enterprises have between 20 and 500 employees, while large enterprises have greater than 500 employees. Based on this classification, the ABS estimated that 94 – 96% of the 800 000 businesses operating in Australia in 1996 were small enterprises. Small enterprises particularly dominate retail and service industries, so it is reasonable to assume that more than 90% of tourism businesses are small enterprises.

Large enterprises in the Australian tourism industry have a strong history of using information and communications technologies (e.g. computerised databases and inventory management systems; intranets; electronic messaging). Moving to Internet based applications is part of the information technology development process for these businesses. In Australia, the driving forces for online tourism have been the airlines, who have a particularly strong history of network development through involvement with Global Distribution Systems. They have had significant control over software/hardware protocols and standards to minimise disruption to their businesses during transition from private to public network systems. Large enterprises have been primarily concerned with business to business applications for online technologies. Most of these enterprises are relatively high up the distribution chain (product suppliers, wholesalers) and do a large percentage of their communication with other businesses in the chain. Large enterprises are keen to facilitate the uptake of online because –

• Large enterprises already have a critical mass of infrastructure and personnel to undertake this transition

• Large enterprises are used to exchanging information this way (even if it has predominantly been in-house or within a limited part of the chain)

• Encouraging other businesses (and government) to go online can reduce costs by ending the necessity to maintain dual communications processing systems

• Large enterprises are usually more aware of operating costs and can identify whether online technologies will impact positively on these • Many enterprises now rely on online

technologies to maintain operations.

Business to business communication online has been dominated by transaction oriented applications. For example, Global Distribution Systems are designed to impart information directly involved with making reservations and payments. They contain no product promotion information, and only that range of product information (schedules, availability etc.) which is necessary for facilitating transaction settlement.

Conversely, most government to business; business to consumer; and government to consumer communications have involved information oriented applications. For example, the ATC and State Tourism Organisation WWW sites (which are the primary focus of their online activities for both consumers and business) are almost exclusively designed to provide product and destination promotion information; statistical data; and reports and analyses.

Table Two identifies some of the key existing and proposed online initiatives from within the Australian tourism industry, and the nature of the communication involved in them.

Table Two : Some Key Australian Tourism Industry Online Initiatives

Nature Initiative Function

Government – Business Twin Share Information flow Tourism Business Data Warehouse Transactions Bureau of Tourism Research Information flow Australian Bureau of Statistics Information flow Government – Consumer Electronic Travel Authority System Transactions

Australian Tourism Commission Information flow Partnership Australia NTDB Information flow State Tourism Organisation sites Information flow Business – Business Tourism Business Data Warehouse Transactions

Tourism Industry Information System Information flow Industry association sites Information flow Atlas Travel Technologies Transactions Business – Consumer WATC Electronic Distribution System Information flow

Travel.com.au Information flow Etravel Australia Information flow Consumer – Consumer Travel.com.au Information flow

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Case Study #2 – Partnership Australia National Tourism Database

Partnership Australia is a national co-operative marketing initiative between the Australian Tourist Commission and State Tourism Organisations. Its aim is to improve Australian tourism marketing through: increased efficiency; providing information to overseas tourists and industries in order to generate sales; developing tourism product for international markets; and motivating and educating the overseas travel industry to sell Australia better.

Partnership Australia is in the process of developing an online National Tourism Database, a two-phase venture designed to increase the international distribution of Australian travel information. The first phase will provide information on : accommodation; tours; hire; point to point transport; packages; attractions; destinations; events; and special interests, and will be illustrated with maps, images, video and audio. The second phase will enable online booking and payments, with interactive inventories and cost calculators. The database will use the Internet to make information available to the tourism industry and consumers, and will be searchable on a variety of criteria, ensuring that access to information will not be impeded by lack of knowledge about geographical boundaries.

Partnership Australia’s National Tourism Database represents a Government initiative to unify existing sources of information, providing a comprehensive online research and reservations system for tourism consumers and businesses. The National Tourism Database is intended to fulfil the requirements of state and national tourism policies by: producing a marketing presence for Australia in an internationally competitive forum; increasing Australia’s market share by providing a one-stop shop for travel information and bookings; and targeting the “increasingly discerning and sophisticated traveler”.

The National Tourism Database project has generated substantial interest from the tourism industry. While it is recognised that there is market failure in destination marketing in particular for SMTEs in rural and regional Australia, there are also concerns that a public sector initiative such as the National Tourism Database could impact on commercial opportunities for the private sector and hence cause market distortions.

It is almost impossible to estimate the size of the online tourism industry in Australia. The Australian Bureau of Statistics estimates that only 10% of Australian small and medium enterprises have an independent online presence. There is no information about whether Small and Medium Tourism Enterprises (SMTEs) have adopted online technologies at a greater or lesser rate than other industries.

It is also difficult to assess the size of the tourism industry. The ABS estimates there are 17 000 accommodation

establishments, but there is limited data about enterprises from other sectors of the industry. A review of tourism sites (including

accommodation,

attractions, and support services) listed on major search engines suggest independent online initiatives from 2000 -2500 enterprises. Other enterprises may be listed with destination or interest based portals. Many enterprises may not be registered with major search engines, particularly if their focus is on business and business communication rather than business and consumer.

Of 750 Australian tourism sites listed on Yahoo Australia, about half are regional tourism sites, and about half of the remaining are sites of large tourism providers such as resorts and chain

hotels. Only about one quarter are independent sites of small to medium businesses. The vast majority of these belong to accommodation providers: backpacker accommodation, small hotels and bed & breakfasts. Least represented are tourist attractions. Most SMTE sites are marketing only. Some provide email, phone and mail contact information,

scheduling and rates. A small number provide email request forms, and a few provide email booking forms. There is great variation among sites with these capacities. For example, Allenby House offers an effective single page ad with map and email

contact, while Driftwood Beach House provides a sophisticated and elaborate selection of linked pages, with similar functions.

Government and business online communications include the Office of National Tourism’s Twin

Share: Tourism Accommodation and the Environment site and the Tourism Industry

Information System/ Tourism Business Data Warehouse projects from CRC Tourism. Major government providers of industry oriented information such as the Australian Bureau of Statistics and the Bureau of Tourism Research provide limited online access to free information. The key factor appears to be the implementation of appropriate electronic commerce facilities to enable the sale of industry oriented information online.

Many of the State and regional destination focused sites provide Government and Business communications. There are no examples of using online technologies to retrieve information from tourism businesses. The Internet is generally being used as mechanism for information flows, rather than to sponsor transactions.

The Australian Tourism Commission and the State Tourism Organisations are at the forefront of government and consumer communications through their efforts to distribute destination and product information. The ATC already provides a number of international electronic gateway sites targeting key markets. These initiatives are consistent with the ATC approach to promoting Australia as an international tourism destination. The National Tourism Database project illustrates unprecedented collaboration between the State Tourism Organisations and the ATC under the Partnership Australia umbrella to exploit opportunities presented by online technologies. With the exception of the QTTC aligned Sunlover Holidays online system, these communications do not involve transactions.

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The Electronic Travel Authority System is an example of World leadership in government and consumer transactions. While ETAS is currently administered to consumers through intermediaries (travel agents, airline reservations systems, or Australian government offices), it demonstrates the capacity of online technology to support this type of transaction.

Business and business online communications in the Australian tourism industry have mainly been large enterprise initiatives. Many of these initiatives are global, rather than specifically Australian. They involve information exchange, inventory management, and alliance facilitation. In most cases (e.g. ATLAS Technologies association with the Amadeus CRS), Australian enterprises have piggy-backed major International initiatives. Companies which are developing business and business communication technology (e.g. SITA, ATLAS) expect to see a greater proportion of business and business transactions occurring through the Internet, rather than through private networks.

Business and consumer communications constitute the greatest volume of communications using the Internet. Individual product suppliers have adopted several models for developing an online presence – • Independent WWW sites

• Listings with interest and destination focused portal sites (including government agency sites) • Listings with travel agent sites

The primary use of consumer and consumer functions in online travel sites is the use of chat rooms and message boards or newsgroups to increase visitor loyalty to sites and keep visitors at sites longer. Chat rooms allow real-time person-to-person and person-to-person-to-group exchange of information. Message boards allow the posting of specific topics or inquiries and a public forum for responses. Newsgroups are similar to message boards but require registration or membership for email responses, and information is posted at semi-regular intervals.

As yet, consumer and consumer functions are found mainly on the large portal sights such as Yahoo and Lycos. Yahoo Australia provides links to Travel Chat and various specialised travel message boards. Travel.com.au offers a message board site with many categories. Typical categories of travel-related message boards include locating travelling companions, women’s travel, the millennium bug and destination inquiries.

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Case Study #3 – The Internet Travel Network (ITN)

The Internet Travel Network (ITN) began in the United States in January 1995 with a plan to put cofounder Bruce Yoxsimer’s travel agency on the world wide web.

ITN now has more than 3000 member travel agencies. ITN claims world leadership in providing travel

technology to companies such as airlines and travel networks. ITN has access to all airline Computer Reservation Systems (CRS) and provides online fare searches and booking on many of the most successful Internet travel web sites, including 8 of the twenty-two sites reviewed in Case Study #4.

International Benchmarks

As with online technology uptake in the Australian tourism industry, international ventures have largely been driven by the airline companies. Recent developments include the movement of Global Distribution Systems (GDS) into the public domain. GDS dominate the air transport product distribution chain, with many major airlines having a stake in a specific GDS. The main GDS are : Galileo; SABRE; Amadeus; Worldspan; and Abacus.

As a result, business to business, and business to consumer applications dominate the international online tourism scene. The past two years have seen the emergence of major online tourism brokers, such as Microsoft’s Expedia, Travelocity, and Preview Travel. Flight

search and other product-information functions for these brokers have been supplied by GDS systems or new travel and tourism product databases and transaction settlement systems such as Internet Travel Network. The focus of these applications has been on consumer markets in the United States and Canada.

Twenty-two of the major online tourism brokers have been reviewed during the course of this scoping study. The primary purpose of the review has been to assess the nature and quantity of Australian tourism product distributed through these systems. It has also become obvious that, while

product promotion and product information remain the dominant online functions, international commercial ventures are focusing attention on booking and settlement capacities.

A notable difference between Australian and international online initiatives is the relative position of government sponsored tourism organisations. While the ATC and State Tourism Organisations are in many ways leaders in online ventures for the tourism industry in Australia, the private sector has been more active internationally. Most regional, provincial and national tourism organisations do have Internet sites, but the quality is variable, the functions are limited, and destination promotion (as opposed to product specific promotion) appears to be undertaken more regularly by private enterprise ventures.

Government and business online communication is relatively difficult to locate on the Internet. The Austrian National Tourist Office has initiated an online information system containing visitor statistics and other business related data (TourMIS). Other national sites contain an amount of statistical information (e.g. Canadian Tourism Information Network). Many countries are using the Internet to promote opportunities to invest in tourism, but these contain exclusively promotional type material, with little or no information about compliance regulations, Government assistance programs etc.

Table Three : Some Key International Tourism Industry Online Initiatives

Nature Initiative Function

Government – Business California State Government Information flow Canada Tourism Information Network Information flow Norway National Information Network Information flow Government – Consumer Massachusetts Office of Travel and Tourism Information flow South African Tourism Information System Information flow Discover Canada Online Information flow Norway Tourism Guide Information flow Business – Business Travel Ring Pro Transaction

ITN Transactions

SITA Boeing Network Transactions

Book It! Pro Transactions

Business – Consumer Microsoft Expedia Transactions

Yahoo! Travel Transactions

Preview Travel Transactions

Consumer – Consumer Travel Chat Information flow Hotel Talk Discussion Group Information flow There are relatively few international benchmarks

involving Government and business communications. In Australia, the need for the Australian Bureau of Statistics and the Bureau of

Tourism Research to sell data has limited the extent to which data is available online. In other countries, especially the United States, Government collected

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Case Study #4 - Australian Tourism Product on Major Travel Sites

Twenty-two major online travel sites were reviewed for this report. The sites all offered online booking facilities for air transport, and many had facilities for booking hire cars, accommodation, and package tours/cruises. Twenty-one of the sites were based in the United States, with the other site (Internet Travel Services) based in the United Kingdom. Only five of the sites appeared to be online extensions of existing travel agencies, indicating the high proportion of new entrants to the tourism industry who are involved in online tourism.

There were six major database and transaction engines which powered the twenty-two sites. Consequently there was a great deal of overlap in the amount, quality, and variety of information on each site. Differences between sites were generally design differences. Booking and settlement facilities were often available only to US and Canadian residents, indicating potential for Australian ventures to undertake these functions in Australia. This has recently occurred with the alliance between NineMSN and Microsoft Expedia.

The sites were analysed for the extent and nature of Australian content. Destination information on almost all of the sites came from only a handful of sources. Four provided information from or links to Fodor’s Guides, two from Lonely Planet, two from Rough Guides, two used the Weissman travel information published online, and one used Open World Travel. One site linked visitors seeking information about Australia directly to the Australian Tourist Commission web site.

Six sites had no Australian content other than reservation information for Australian air carriers or as a cruise destination. Three of these sites provided links to other sites for tour information on Australia. Two sites provided information about Sydney only, and two others about Sydney and Melbourne. The remaining sites provided destination information about some or all of the Australian capitals (dominated by Sydney, Melbourne and Adelaide), and some regional centres, particularly Alice Springs and Cairns.

In spite of the fact that destination information was mostly restricted to the major cities, the overall image of Australia emphasised the “outback” and adventure travel. The lack of product and destination information to support this image is a concern for the Australian tourism industry. In general, it demonstrates that Australia’s online presence is being largely supported by international ventures, and content and quality controls are not in the hands of the Australian industry.

data is more freely available, and there are large Internet services for distributing this data.

Generally, Australia can be viewed as a leader in Government to Business online tourism communications. Internationally and in Australia, there is a lack of

transaction oriented online services (processing compliance information etc.).

The Australian model of government involvement in facilitating tourism provides more opportunities for government involvement in product and destination promotion than other countries with substantial Internet infrastructure. This is particularly true at State and National levels. At a regional level, it appears that local governments and Regional Tourism Authorities in Australia are at similar levels of sophistication as their international counterparts. At this stage, basic Internet presence and some forms of direct communication are the norm, with differences existing in quality of design and quantity of content.

The Electronic Travel Authority System is a World first initiative to facilitate international tourism. ETAS provides travel agents, airlines, and Australian Government agencies with facilities to process short term visa applications.

Australian plans to distribute industry oriented information through systems such as the Tourism Business Data Warehouse would result in a level of World leadership in this field. While there are some existing systems with similar objectives (e.g. Austria and Canada), the range of data they include, and the capacity to distribute free and commercial data does not compare to the broad scope of the proposed Australian systems.

It is difficult to assess the level of sophistication of existing Internet business and business initiatives because of levels of commercial confidentiality. Networks in the air transport sector (e.g. as maintained by SITA) provide benchmarks for

Australian ventures. The AUSe.Net initiative has used over 100 online business network models as benchmarks in developing the Australian model. While tourism has not featured prominently in this initiative, the opportunity exists to take advantage of the research on which AUSe.Net has been based to facilitate online business and business communications in the tourism industry.

None of the top twenty-two (rated in terms of both users and functionality) travel brokerage businesses Internationally are based in Australia. The relative emphasis on private enterprise to develop an online presence for the tourism industry (especially in the United States), means that the focus has been more on product promotion and distribution than destination marketing. It is interesting to note that many reviews of these benchmark sites have been favourable in terms of content and intent, but critical in terms of the ease of processing information and transaction requests. The difference between technologies for processing financial transactions due to the complexity of the tourism product mix, particularly across international borders, is a major impediment to developing successful tourism sites which meet the needs of a broad range of travelers. Benchmark international sites still favour point to point air transport, accommodation with major chains, and predetermined tour packages.

The rate of uptake of online technologies for small businesses has been higher in the United States than in Australia, but higher in Australia than in many parts of Europe and Asia. Australia has a growing

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online technology industry which will enable it to meet international standards for design and transaction processing.

The Australian tourism industry has not paid substantial attention to the uses of consumer and consumer communications to promote products and destinations. Being a very small market in international terms, Australia does not feature prominently on international tourism consumer and consumer communication initiatives. The Australian industry could certainly develop initiatives to facilitate consumer and consumer communications as the online equivalent of ‘word of mouth’ marketing.

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Case Study #5 – Travel and Tourism Business Data Warehouse

CRC Tourism, ATLAS Technologies and Ernst and Young have commenced a major project to develop a commercial data warehousing system for Australian tourism industry-oriented information. The outcome of the project will be a comprehensive and interactive Travel and Tourism Business Data Warehouse (TTBDW) which utilises Internet technologies and communications. TTBDW will provide access to regional, national and international repositories of tourism business data via an Application Program Interface (API) to these data repositories. A fulfillment mechanism and financial settlement system between TTBDW, data repositories and end users will also be developed. TTBDW will be at the leading edge of business information systems technology and will dramatically increase the availability and reduce the time and costs of obtaining critical business information to enhance tourism management, policy development, investment planning, project feasibility and management and other governmental and business activities.

Opportunities Presented by Online

Technologies

Increasing the uptake of online technologies within the tourism industry provides opportunities for improving communication and transaction efficiencies within the tourism industry. Representatives of the tourism industry have suggested that inefficiencies occur across the range of communications. Examples of these are – • Government and business communications • There is a lack of access to information to assist

the industry in planning and evaluating investment opportunities

• Identifying compliance procedures can be a cumbersome and time consuming task, particularly where more than one jurisdiction is involved

• Government and consumer communications • The process of compliance with regulations for

entering Australia may discourage tourists • Destination promotion programs may not be

reaching the right targets at the right time • Business and business communications

• The total range of tourism experiences that can be offered is restricted by ineffective communication between producers, wholesalers, and retailers

• The efficiency of the overall tourism industry is effected by poor communication between different sectors (e.g. transport and accommodation) • Business and consumer communications • Inefficiencies in communicating information about products and their availability may lead to potential consumers selecting other products and destinations

• Consumer and consumer communications There is a feeling that the industry is not exploiting the potential value of ‘word of mouth’ promotion of destinations and products

The current level of available information makes it impossible to quantify these inefficiencies in terms of loss of revenue and potential consumers. It is also difficult to assess how Australian communications standards compare with International benchmarks. It is clear, however, that improving efficiencies in

these areas would provide a competitive boost for Australia’s tourism industry, both in attracting international visitors, and in stimulating the domestic tourism market.

Online technologies offer the potential to address these and other key efficiency issues. The most important opportunity offered by online technologies is the capacity for communications to reach a sizeable audience. Recent estimates of the number of people using the Internet at home, work, school, and in Internet cafes and the like vary from 40 million to 120 million. All estimates agree that the number of users is increasing rapidly – possibly doubling every twelve months. In Australia alone, more than half the adult population has used the Internet.

In the past, Internet use was restricted to younger, higher income males. As the medium becomes more pervasive, however, the profile of users is broadening, with rapid rates of uptake by females and older people. Consequently, there is a range of target populations who could be accessed through online technologies. Internet use is also high in countries that Australia has traditionally targeted for International tourists – the United States; European countries; Singapore; and Japan – and is increasing among travel enabled people in emerging markets such as China and India.

Along with rapidly increasing consumer uptake, businesses are developing the capacity to use online technologies. The Australian Bureau of Statistics estimated that less than 20% of small and medium businesses had access to online technologies in 1996/97. The current rate is likely to be over 40%. For large enterprises, the rate is well over 90%. The most common use of the Internet by small and medium enterprises is for electronic mail, but there are a growing number of businesses with their own WWW sites, and who use the Internet to collect business critical information either through web sites, or through direct contact with industry partners.

Use of online technologies in the public sector has also increased in the past two years. Each State and Territory Government has developed strategies to promote the use of online technologies in the public sector, and to move critical communication functions online. Online technologies consequently provide an opportunity to address inefficiencies

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Case Study #6 – Finders Central Goldfields Tourist Guide

Finders is an established provider of gold-prospecting equipment and tuition, with a commercial web site. In 1998 a tourist guide to the Central Goldfields region of Victoria was added to this site. The tourist guide offers information about the region and its attractions, accommodation and tour listings.

Finders developed the tourist guide to fill a “black hole” in tourism packaging and marketing. They have made the most of existing online facilities, using their product order and secure payment forms to provide tourism bookings. Finders offer three options to tourists wishing to make travel arrangements: to research their travel through the site, then make their own arrangements using the contact information provided; to research their travel then make bookings via Finders; or to request that Finders design an itinerary for them

The Finders site is a unique example of an online tourism initiative that (a) takes advantage of a gap in the tourism market and (b) makes use of existing online technologies. The tourist guide is in its early days, so it is difficult to judge its success. However, it is ideally placed in association with Finders’ catalogue site to take advantage of Finders existing international audience with minimal outlay in time and money, and to reach tourists interested in prospecting.

because of the increasing likelihood that communication participants (business, government, and consumer) will have access to appropriate technologies.

As a result of access to communication

audiences, the tourism industry can exploit online technologies to – • Provide and receive

an increased range of information to and from audiences. • Make real-time contact with audiences throughout the World. • Develop new alliances not restricted by geographic boundaries (including alliances with businesses not traditionally involved in tourism). • Manage inventory

and provide real time product availability information.

Online technologies provide a relatively method for promoting products and destinations

when compared with the expense of other media. Online technologies also mean that a broad range of information can be provided, with audiences empowered to select the information they require. Online technologies also enable producers to make direct contact with consumers. While increasing the potential for direct sales, the nature of this contact allows producers to more efficiently monitor the success of their marketing and distribution programs. Overall, the use of online technologies results in a more transparent distribution chain, with information about the processes involved in the chain more freely available to all participants. Identifying inefficiencies in the chain becomes easier for all participants, and enables rapid response to issues which may ultimately increase Australia’s international competitiveness.

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Impediments to Achieving the Benefits

of Online Technologies

Many of the impediments to realising the benefits of online tourism are global in nature (cost of uptake; nature of the market; technology and content and design issues), while there are some which are particularly relevant to the Australian industry (role of government and establishing a sustainable rate of uptake). The following analysis briefly describes some key impediments. Technical and cost issues are likely to be resolved as technologies mature, while market, design, and government role issues need to be more directly addressed.

Cost Issues

There are significant costs associated with the uptake of online technologies for various players within the tourism industry. While it is generally true that large enterprises have already invested in infrastructure, the need to ensure compatibility across the industry may mean substantial reinvestment. State Tourism Organisations are facing this issue as part of the process of developing the National Tourism Database. Regional Tourism Authorities have also recognised that using online technologies to support their functions involves substantial investment in infrastructure and personnel. Private enterprise organisations who have adopted proprietary systems, or systems that turn out to not meet industry communication standards, may face substantial reinvestment costs.

Small and medium enterprises face not only the financial costs of investment in infrastructure, but costs associated with training personnel in the use of new systems. There is also the short term issue of maintaining dual communications systems during the transition from traditional technologies to online technologies.

Governments also face costs in facilitating the move to online technologies. Not only do Governments have a key role to play as demonstrators of technologies, but they need to ensure that infrastructure (especially telecommunications infrastructure) is made available to all enterprises, particularly those in regional and rural areas. The lack of existing infrastructure in many areas serves as a substantial impediment to the uptake of online technologies.

Technology Issues

The Internet is a medium which allows for advertising, promotion, information provision, and sales. Many sites struggle to achieve a balance between these functions. Sales mechanisms can be complex, and rely on a high level of user knowledge for satisfactory completion. The emergence of travel

services from technology companies, for example, has meant a high focus on the technology of the services, rather than the information provided for the customer. Internet technology is changing rapidly, and there is a strong feeling that investing in technology is dangerous because it can soon become obsolete. It may be some time before design and transaction technology becomes readily available and easy to use, and issues such as Internet congestion and security of transactions have yet to be satisfactorily dealt with.

A major barrier to the expansion of online tourism services is the unwillingness of consumers to undertake financial transactions over the Internet. One of the key benefits of the Internet is the ability to visit many sites for different products. In terms of travel and tourism, however, this may result in the need to purchase a variety of products from a variety of suppliers. Many consumers are uncomfortable with making multiple transactions. This is a particular threat for direct sales on the Internet, but is an opportunity for major travel brokers such as Travelocity and Expedia.

As consumer confidence with dealing with businesses online develops, and e-commerce technologies become more secure and reliable, technology issues will become less significant impediments.

Nature of the Online Marketspace

While it is possible, and relatively inexpensive, for SMTEs to develop an Internet presence, the tourism market online is likely to be dominated by a small number of multi-national corporations. These corporations have the resources to ensure that they access Internet users through key portals such as search engines and Internet service provider (ISP) gateways.

The decreased costs for airlines and accommodation chains through direct sales will mean reduced opportunities for intermediation. This has already commenced with commission capping and strategic alliances between airlines and major online travel services. Global Distribution Systems (GDSs) also see the potential for the Internet to increase their profits and market share.

The online marketspace provides similar advantages for larger enterprises as the traditional market place. Market domination is likely to increase in the future as commercial potentials of the Internet are realised. The introduction of online technologies into the tourism distribution chain has largely been driven by supply side considerations. The intention of online technologies has been to streamline distribution channels so that industry functions are more cost effective. Online technologies, however, bring with them some limitations regarding the nature of the

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Case Study #7 – 8 Reasons Why Web Sites Fail 1. Not enough preliminary effort to understand the

culture of the Internet and how that culture affects success.

2. Objectives not clear. Target audience not identified. 3. Web site poorly planned and executed. Too slow in

coming up on the browser. Not immediately clear what the site is all about or what to do next when it does come up

4. There is no Web site content master plan. The Web

site content is parts with no whole.

5. The content of the site does not offer enough value

and benefits to its target audience. There are not enough incentives for return visits.

6. Failure to recognize and manage a Web site and

the Internet as a new and different distribution channel. How is it different than your company's current advertising and marketing efforts? What does that mean?

7. Failure to understand that for outstanding success,

the real work begins after the Web site is up and working. Web site not promoted effectively. If your customers and prospects don't know about it, they are not likely to visit!

8. Failure to maintain, change and upgrade site. No

follow up with Web site visitors and users to see what needs improvement or what additional Web site services they would like. No ongoing Web site promotion.

(from : Dale Garden & Associates, http://www.dgaweb.com/succeedfail.html)

product which can be distributed. For example : point to point travel and standardised tour packages are relatively easy to provide over the Internet compared with more flexible tour packages and experiences for the free and independent traveler (FIT) which involve more flexible, multiple supplier arrangements.

Durlacher’s Quarterly Internet Report suggested that current e-commerce sites were inadequate, and there were few sites offering complete holiday and travel services (NUA Internet Surveys, 1999). It is possible that an increased focus on online technologies to distribute product will lead to a change in the nature of the tourism product that Australia attempts to distribute. As this happens, it is very important to ensure that consumers are not alienated by the product image provided over the Internet. This impediment may be overcome as businesses learn more about the types of consumers who use the Internet, and technologies develop that allow for a

wider range of product to be readily distributed online.

Content and Design Issues

Perhaps the most critical threat to successful use of online technologies in the tourism industry is the sheer volume of information available on the Internet. While it is relatively cheap to design and maintain a high quality Internet site, it is much more difficult to attract potential consumers to that site. PhoCusWright (1999), a travel and tourism e-commerce advisory service based in the United States, noted that the big players in online travel and tourism services have been very successful in establishing their identities, and that it will be increasingly difficult for new players to establish competing identities.

The vast amount of information means that clients have to invest substantial time if they wish to identify the best services and make transactions online (Pedrazzi & Weeks, 1998). This is a particular barrier for business clients.

The amount of information on the Internet is expanding exponentially, and dealing with information overload will continue to be a significant challenge for online businesses.

There is no guarantee that a provider of information on the Internet is qualified to provide that information. The sheer volume of information available, and the entry of new players into the marketspace presents challenges for information providers. For example, our review of regional tourism sites revealed that very few provided information about when data had been updated. Low data accuracy will result in consumers using different sites (and consequently viewing different product) or avoiding the Internet as a source of information. Individual sites should be able to overcome this impediment by establishing a strong brand name and providing information about data validity. Rural and regional areas may face additional impediments in overcoming content and design issues due to the lack of technical and design skills available in those areas.

Role of Government

Governments in Australia are looked upon to provide a facilitative environment for industry and encourage innovation. There needs to be a clear understanding of Government and industry responsibilities in identifying and implementing appropriate technology developments. For example, there is the threat of market failure to provide : comprehensive online information about the Australian tourism product; timeliness in bringing product to the market; and the capacity to develop a brand for Australian destinations.

This threat arises from the predominance of SMTEs; the rural and regional nature of tourism; and the small size and remoteness of Australia for tours and destinations in comparison with the global marketplace. Government action is needed to overcome this failure of the national and global market.

On the other hand, the commercial opportunities presented by online technologies may be reduced if

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Costs Benefits 1995 1998 2000e 2003e Early Entrants Piggy Backers Second Phasers Latecomers Government initiatives assume commercial

functions, with consequent market distortions. This has been one of the key issues surrounding the development of the National Tourism Database, and it needs to be carefully considered how Government and industry can work together to both address market failure, stimulate commercial opportunities, and enhance competitiveness.

Governments clearly have a role to provide information, education, training and research. Governments also have an important role to play in managing legal issues associated with online technologies. While e-commerce has become a technically feasible mechanism for tourism product distribution, there are a number of legal impediments to implementing e-commerce which may not yet be fully understood within the industry. This study has not been resourced to provide a legal overview of e-commerce, although some general observations can be made –

• The global nature of the Internet has made regulation very difficult

• There has been relatively poor response to the issue of electronic copyright

• Responsibilities for safeguarding online transactions are not clear

• There are significant liability issues involved in electronic marketing and sale of tourism product by independent intermediaries (including Government agencies) who may or may not be in the same jurisdiction as the producer or consumer.

The Federal Bureau of Consumer Affairs has developed a discussion paper relating to the legal issues for consumers of purchasing product online. The National Office for the Information Economy is developing a legal and regulatory policy framework which includes consideration of the types of legal issues raised here. Once available, this framework will need to be analysed in terms of its implications for the tourism industry.

Need for a Sustainable Uptake Model

There are high costs associated with being an early entrant into new technologies and business models. The potential reward for early entrants may be high, however many enterprises cannot afford the high costs, and the risk of failure is also high. Costs may be reduced by forming alliances with early entrants, but this also reduces the potential benefits, and exposes these ‘piggy back’ enterprises to similar risks in terms of failure of technologies (a particular risk as online technology standards are generally yet to emerge).

Second phase entrants have the benefit of significant information about online markets and technologies, and can reduce costs through more informed planning. As the technology becomes standardised and readily accessible, latecomers can enter the marketspace at low cost, but with low potential benefits due to market saturation. Figure 3 shows the model of technology uptake, along with estimates of the time at which online tourism may be expected to enter each phase. Each type of entrant is represented by a ‘risk bar’, indicating the potential range of reward for enterprises in each phase.

In promoting the uptake of online technologies in the tourism industry, it is important to recognise that there is substantial interdependence between players in different phases. It should also be recognised that programs to facilitate technology uptake need to be developed quickly, and will have a relatively limited duration.

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Impacts on the Distribution Chain

Introduction

A particular consequence of the early development of online tourism has been the capacity for product suppliers to deal more directly with consumers, and increase their proportion of direct sales. For certain products, for certain consumers, and in certain circumstances, this has meant fewer products distributed through intermediaries.

The early development of online tourism has also seen the entry of significant new players into the distribution chain. Many of these have taken up roles as intermediaries, and have been associated with information technology companies, rather than traditional tourism industry companies. These new players have had the knowledge and capacity to implement technologies to facilitate online tourism, and have formed strategic alliances with other intermediaries and producers to meet content needs. Traditionally, the multiple steps in the distribution chain have affected the speed at which information flows from producer to consumer. The emergence of online technologies has meant that consumers have heightened expectations of what they consider to be ‘up to date’ information, and expect a greater range of information to be provided at a much faster rate than in the past. While the existing distribution chain can support these information demands, relatively low uptake of online technologies by intermediaries has lead to major producers concentrating on direct communication with consumers. Smaller enterprises have been slow to adopt online technologies, and also risk not meeting consumer information needs.

The role of facilitators in the distribution chain is changing, as businesses take a more global perspective. Businesses expect information to be more widely and speedily available than in the past, and are making more rapid decisions about investment opportunities. If facilitators cannot respond to the need for fast, accurate, and wide ranging information, investment opportunities may be lost.

In general, the impacts on the distribution chain have not been so much in terms of major changes in the players in the chain, but in the mechanisms used to link players. The players under threat are those who do not respond to the introduction of these mechanisms.

In order to successfully adapt to the changes brought about by online technologies –

• All players in the distribution chain need to get used to demands for faster, more accessible processes of communication (including information flows and transactions)

• New players in the chain will be those who are capable of providing the new mechanisms. Alliances between existing players and new players will be essential for existing players to remain competitive.

• Existing players will need to develop the skills to use new mechanisms, and understand their impacts on their business models.

• All players in the chain need to recognise the global nature of business investment, and that the new mechanisms mean that destinations are not just competing for tourists globally, but also for investment and support of the tourism industry.

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Impacts on Consumers

Table Four demonstrates some role for online technologies in facilitating consumer behaviour.

Table Four : Using the Internet in Tourism Transactions

Consumer Task Internet

Motivation to tour May be inspired by ‘surfing’ Access the Internet Point of entry –

Own company home page Search engine

Browser home page ISP home page Other home page Find the product/destination Search for –

Specific product Destination information Activity/interest search Other criteria Using – Search engine

Known portal for travel, destination, or interest area Reference from online community

Specific known URL Government entry site

Collect product information Follow links to find most complete information Validate information through multiple sites Purchase product Using e-commerce (with supplier or intermediary)

Direct sales mechanisms Through traditional intermediary ‘Purchase as you go’

Feedback and future motivation Online communities Personal home page

Acceptance/rejection of transaction process Consumers who may miss out on the opportunities

provided by online technologies are the ‘information poor’. These include : low income earners; older people; people working in industries which don’t use online technologies; rural and remote residents; and people with low education attainment. These people may find it more difficult to access tourism information as the role of online technologies increases. Markets for certain products may suffer as a result.

In order to manage these eventualities –

• Consumers will need to develop systems to help them find and validate information • Consumers will have preferred methods for

settling transactions

• Offline consumers will still require access to information

• Consumers will play a bigger role in product and destination promotion because of the global reach of ‘word of mouth’

Impacts on Domestic Tourism

Online technologies have reduced the costs tourism product to Australian tourists. Consequently, the biggest proportion of the Australian tourism market – domestic tourists – have greater access to competitive marketing from international destinations. Many of the traditional barriers to overseas travel have been removed over the past twenty years (travelling time, political issues, passenger processing requirements etc) and this is being enforced by the information provision functions served online.

There is significant potential for online technologies to lead to a decrease in the domestic market in Australia. On the other hand, Australian destinations may be able to use online technologies to increase the propensity of Australians to travel within Australia, particularly to rural and regional areas, which traditionally have been overlooked by major tourism product distributors.