Jahangirnagar University Journal of Management Research, Vol.

3, 2020 ISSN: 2522-3755

Investigating the Effect of Information and Communication

Technology on Tourism Industry: Evidence from Bangladesh
Biplab Roy1
Saud Ahmed2
Dr. Md. Shariful Alam Khandakar3

Abstract: Technological advancement plays an essential role in operating several

businesses, including the tourism business, effectively. Electronic-Tourism (E-Tourism)
is a type of tourism where Information and Communication Technology (ICT) is
considered as a backbone. This study's main aim was to unfold the effect of ICT on the
tourism industry, identify essential tools and key factors of ICT for tourism application,
and achieve sustainability in tourism. Admittedly, ICT has already created a circle of
multidisciplinary industries centering on the key players of tourism. Furthermore, ICT
has imprinted its eye-catching mark on Information management, cost reduction,
promotion, customers’ loyalty, the strategic alliance among countries, and much more
for tourism. This research has been conducted by gathering data from the key
stakeholders of tourism sectors by highlighting the area of Dhaka and Chittagong. A
survey comprises of 85 respondents was conducted to investigate the effect of ICT on
different stakeholders of tourism. The findings showed that ICT development mostly
affects the travel agency business, and the least affected industry is the motel industry.
Keywords: Information and Communication Technology (ICT), E-Tourism, Global
Distribution Systems (GDSs), Computer reservation systems (CRSs), and the Internet.

Introduction
The World Travel and Tourism Council (WTTC) reported that in 2019 the total
contribution of travel and tourism was 3% of Bangladesh's total economy (WTTC, 2020).
However, in India and Nepal, the contributions were 6.8% and 6.7% in 2019. Also, the
contribution of travel and tourism to employment was 2.9% of the total employment,
whereas it was 8% in India and 6.9% in Nepal's case (WTTC, 2020). Despite the
researcher contending that Bangladesh can develop the tourism sector by proper
utilization of tourism destinations.
After being independent in 1971, Bangladesh has developed its national ICT strategy in
1997. After five years, Bangladesh declared ICT as a thrust sector by acknowledging
ICT's potentialities and its peripheral impacts on every other sector. The beginning of
ICT has had a supreme influence on tourism. The special effects of this insurgency
remain to transform the landscape of present-day tourism on an everyday basis. The
world of information, open innovation, better access, and teamwork in generating

1
Assistant Professor, Department of Tourism and Hospitality Management, Faculty of Business Studies,
University of Dhaka, E-mail: [email protected].
2
Assistant Professor, Department of Tourism and Hospitality Management, Faculty of Business Studies,
University of Dhaka, E-mail: [email protected].
3
Associate Professor, Department of Tourism and Hospitality Management, Faculty of Business Studies,
University of Dhaka, E-mail: [email protected].

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information and technological merging have contributed to the design of a new scientific
tourism standard (Bigliardi, Dormio and Galati, 2012).
ICT plays an essential role in making a strong position and effective promotional
activities for the tourism industry (Bethapudi, 2013). To develop ICT in Bangladesh, the
government has taken wide-ranging projects. According to the Bangladesh
Telecommunication and Regulatory Commission (BTRC), in 2018-2019 session 3G and
4G mobile subscribers were 61.663 million and 19.131 million. During that session
number of internet subscribers crossed 96 million. Moreover, network coverage reached
all 64 districts. In its report, BTRC asserted that if the number of internet users grows by
10 percent, then the GDP growth rate increases by 1 percent, which substantially impacts
the socio-economic development of a country. However, the question is how the key
tourism stakeholders exploit the progress of ICT in Bangladesh.
Information is the data that has been managed to make it useful in adjusting the
knowledge. Consequently, knowledge will focus on wisdom. In this modern competitive
business world, information is significantly considered an inevitable weapon to survive
and accelerate the organization's growth. Information alone cannot play its role without
being adequately communicated. Therefore, technological advancement is playing a
vibrant role in both the issues; gathering and utilizing information and the process of
communication that makes the organizations essentially up to date about technological
innovations, as a whole Information and Communication Technology (ICT). ICT has
been the most substantial support for any digital initiative for the business organizations
from its inception because ICT covers a vast sector of both the wired and wireless
telecommunication technology. ICT is also an amalgamation of trained human, computer
networks, software, mobile applications, and broadcasting hardware, facilitating e-
Management, e-Administration, and e-Governance to confirm transparency,
accountability, and wealth maximization in every sector of the country. ICT can facilitate
the tourism stakeholders to improve the destination's sustainability by introducing
sustainable destination indicators, monitoring systems, codes of conduct, training to
tourists, and other exercises (Ali and Frew, 2014). The above discussion emphasized the
significance of technology adoption in the tourism industry.

Scope of the Study

The study investigates the effect of information and communication technology on
tourism industry in Bangladesh. Tourism industry is one of the major foreign exchange
earner and a pillar industry for many countries of the world (WTTC, 2016). In
Bangladesh tourism is also a one of the growing economic sector (sultana, 2016). As per
the WTTC view, The direct contribution of travel & tourism to GDP was BDT296.6bn
(1.9% of total GDP) in 2014 and to rise by 6.1% pa, from 2015-2025, to BDT 566.3bn
(2.0% of total GDP) in 2025 (sultana, 2016). Moreover, the study considered the tourism
stake holders in Dhaka and Chittagong districts of Bangladesh. Dhaka is the capital city
and Chittagong is the business and port city of Bangladesh where the large of tourist
spots are situated. The respondents of the study are the individual who are in charge of
respective tourism organization and who have knowledge regarding tourism industry.

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 Investigating the Effect of Information and Communication Technology on Tourism Industry: Evidence from
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Research Aim and Objectives

Aim
This study's key aim is to understand how, in Bangladesh, the development of ICT is
adopted in the tourism sector and its impact on moving this sector forward.
Objectives
● To disclose the main applications and software used by the tourism stakeholders
● To analyse the role of ICT in the tourism industry and
● To recognise the uses of ICT by different stakeholders of tourism industry in
Bangladesh.

Literature Review
Different researchers from different countries have started to work on E-tourism when
they realised that technology is going to play a vital role in the development of the
tourism industry (Buhalis and Law, 2008).But the fact was that only a few countries,
mainly those where the tourism industry makesa significant impact on the economy of
the country, came forward to explore the prospect of E-tourism.However, until very
recently, there is hardly enough empirical evidence on ICT or E-tourism in Bangladesh.
When all the activities of the tourism industry are performed by using Information
technology or Information communication technology, then it is called E-tourism. Tools
used in E-tourism are computer hardware, software, different applications, telephone
lines, wireline signals, and audio-video systems. According to Jadhav and Mundhe
(2011), ICT uses telecommunication, broadcast media, all types of audio and video
processing and transmission, and network for controlling and monitoring functions.
Researchers asserted that ICT is the backbone of the fastest-growing tourism industry
(Wong 2001; McCann 2001; Applebee et al. 2000; Connolly and Olsen 2001).
Karimidizboni, (2013) stated that the current time is known as the age of Information and
communication where no industry can progress and make contributions to the local as
well as world economy without the adoption of modern technology. On the other hand,
Garzotto et al. (2004) said that the tourism industry is one of the first industries which
started using ICT at the early stage of technological development. History said that in
1950 at the very beginning of the technological development a very big project adopted
by the airlines business, which was to make available the airline seat reservation from
anywhere and anytime to the customers with the help of technology. Later came the
Global Distribution System (GDS) Sabre, which was the first real-time computerized
business application (Corigliano and Baggio 2004). Today a large number of firms
related to the tourism industry are using technologies for conducting their business.
However, in the early stage of development, small organizations are less likely to use
technology compared to the medium and large-scale organizations (Mutch, 1998;
Paraskevas, 2002; Milev and Marsh, 1998). According to the The Organisation for
Economic Co-operation and Development (OECD) the Tourism industry is one of the
most extensive users of technologies (OECD, 1995). According to Buhalis(1998), for
targeting customer segments accurately, improving efficiency, maximizing profits,

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enhancing service and continuing long term profitability tourism enterprises must need to
utilize the information technologies. The tourism industry uses the computer reservation
systems, GDS, virtual reality, electronic brochures, management information system,
travelers’ card, mobile phone, e-mail, social media, and Internet, whichare popularly
known as the components of ICT. On the other hand, Gruescu(2002) mentioned that
Computerised Reservation Systems (CRSs) and GDS help to connect the tourism
suppliers and tourists of touristic products.
The introduction of the Internet in the mid-1990s changed the application of Information
technology dramaticallyas well as it has created a revolution in tourism sector (Buhalis
and Law, 2008).Researchers both ICT and use of internet make a scope for the business
organisation to gain extra advantage from their counterpart as well as ensure the greater
functioning of business organization (Namasivayam, Enz,and Siguaw, 2000; Porter,
2001; Sirirak, Islam and Khang, 2011). Not only business organisation but also tourists
see the world differently because of the Internet. The Internet makes so many things
easierfor tourists. According to Karimidizboni (2013), tourists can search for information,
can access directly to the company’s website, can book airline tickets,can reserve rooms,
and can make other purchases. Now a company can run its business all over the year by
using a useful web site where anybody can get an access to the website from anywhere
and anytime by saving tourists’ time and money (Gruescu, Nanu, andTanasie, 2009).
Apart from tourists the key stakeholders of tourism industry are airline companies, hotels,
motels, restaurants, tour operators, travel agencies and tour guides who are getting the
benefits of ICT by adopting potential marketing strategies and enhancing tourists’
loyality (Lin and Lee, 2010).
One of the recent buzzes of the world nowadays is the concept of sustainability.
Countries of the world are working together to achieve the seventeen goals of Sustainable
Development Goals (SDGs). Business organisations, including the tourism business, also
need to ensure sustainability. In this regard, ICT can play a pioneering role because there
is a close relationship between ICT and Sustainable development. Jucan and Baier (2012)
contended that, initially, airlines started e-ticketing followed by travel agencies, later,
accommodation sector started direct booking, and Destination management organisation
(DMO) introduced electronic marketing. On the other hand, ICT helps the hotel industry
to increase productivity (Ham, Gon Kim, and Jeong, 2005) by using Point of Sale
technology, back-office accounting, in-room entertainment, and human resource
management(Anon, 2002b; 2003b; Baker and Sussman. 1999). Tour operators can utilise
their Computer reservation system for market intelligence to adjust the fluctuation of
supply and demand as well as monitor the performance of travel agencies(Karcher,
1996). A travel agency can sell the package bypassing tour operators directly to the
customers by using ICT(Buhalis 2003).
Tourism and ICTare closely connected since the 1970s when first introduced Computer
Reservation Systems (CRSs) then came GDS in the 1980s, which is revitalised in the late
1990s when the internet started to show its magic (Buhalis and Law, 2008). It has been
said that the countries without the ICT infrastructure cannot be progressedshortly.
However, it is a matter of regret that most of the websites of the tourism business are still
designed confusingly as well as searching speed is very low along with no scope of direct

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booking (Gratzer et al., 2004). It is a hope that many researchers are coming forward with
their research to establish the importance of ICT in Tourism. Moreover, the result is that
more than 655 articles were published related to electronic tourism from 1980 to 1999 (IP
et al., 2011).
Information and Communication Technology has impact on company’s productivity,
increase the scope of spreading market as well as help to conduct business in new format
(Gruescu et al., 2009). On ther other hand, ICT helps to increase the competitiveness of
the tourism business and destination (Coopers and Fletchair, 2005). ICT has impact on
four areas such as it helps to get extra advantage from competitors, increase the
productivity, create scope for new business and ways of conducting business
(Buhalis, 1998, 2003; Gruescu et al., 2009; Ion & Andreea, 2008; Irvine &
Anderson, 2008; Shanker, 2008). Some authors believe that ICT and productivity
has negative impact (Byrd & Marshall,1997; Dos Santos et al, 1993). According
to Evans & Peacock (1999) ICT has negative impact on market share while
Buhalies (2003) showed that ICT has positive impact impact on market share.
ICT also speeded up the organizational service through innovation (Hipp &
Grupp, 2005; Martin, 2004).

Methodology of the Study

Sampling Procedure
The study has been conducted on tourism stake holders in Dhaka and Chittagong districts
of Bangladesh. The unit of analysis was determined the respective person who are in
charge of respective tourism organization (airlines, hotels, motels, restaurant, travel
agency, tour operator, tourist guide) and tourists who have knowledge regarding tourism
industry. The data were collected through survey method from 85 respondents who have
five years experience in this sector. Current study deployed purposive judgmental
sampling technique where two judgmental criteria were imposed as concern person’
should have at least five years experience and who are in charge of the respective
organization. The study considered these two criteria because those who are experienced
and in charge of the organization they are well known about the tourism supply chain
(like, on line air ticketing and management, forward and linkage regarding hotel, motel,
restaurant, tour operator, travel agency, tour guide and tourists)and they are aware about
the effect of ICT on tourism industry.
The population of the study are the tourism stake holders in Dhaka and Chittagong
districts of Bangladesh. As the exact number of population size is unknown the current
study used G power to determine the sample size (Faul, Erdfelder, Buchner, & Lang,
2009). According to G power the sample size for this study should be 89. Nonetheless, to
minimize the sampling error and to reduce the non-response rate the total sample size has
been multiplied by two (Hair, Wolfinbarger, Ortinau & Bush, 2008). The data were
collected through survey method from 85 respondents who have five years experience
and who are in charge of the respective organization.

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Data Analysis Technique

The study used descriptive and bivariate analysis technique to analyze data. The reason is
that through this technique it is easy identify the effect of ICT on tourism industry.
Moreover, the study used CAF model which was developed by the renowned researcher
Mihalič and Dmitrović (2000) where this model previously used in the diveresd
industries (Prašnikar, 2000) and researchers notably Tichaawa, Mhlanga, Sicwebu,
(2017) to figure out the impact of Information and Communication Technology (ICT) on
those industries. This framework was seemed to be suitable as the basis of the recently
utilized questionnaire, as the model in question assess the effect of ICT on tourism
industry particularly on the perspective of different tourism stakeholders. Earlier, these
researchers applied descriptive and bivariate analysis technique to analyze data.
Therefore the current study deployed descriptive and bivariate analysis technique to get
the accurate picture of the effect of ICT on tourism industry.
Respondents for this study were asked to level the effect of ICT on tourism using the
following descriptors that are all used in the current study. These indicators are according
to Mihalič and Buhalis (2013), increased competitiveness; speeded up service; increased
market share; heightened customer satisfaction levels; improved company image;
reduced business operating costs; improved profitability; and opening up of new markets.
The indicators were selected in line with Chandler and Munday’s (2011) and Buhalis and
Zoge’s (2007) identification of the factors as being the most essential components on
which ICT has an effect regarding tourism sector.
Instrument Used
The current study used 5-point Likert-type scale in the questionnaire to describe the
effect of ICT on tourism. The scale ranged from “strongly disagree” (1), through
“disagree” (2), “neither agree nor disagree” (3), and “agree’ (4) to “strongly agree” (5).
For the pilot study 35 (around 20%) respondents were selected from the Dhaka city. The
respondents were hoteliers, waiters, touroperators, travelagents, touristguides, employee
of Bangladesh Tourism Board (BTB) and Bangladesh Parjatan Corporation (BPC). The

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sampling technique for the pilot study was convenience sampling. The data was collected
on a fifteen days time period by using face to face communication. The nature of survey
instruement was open ended questionnaire where they asked to figure out the probable
effect of ICT on tourism industry. Based on the findings of the pilot survey, questionnaire
was developed to collect data finally fromthe 178 respondents.
In this study, questionnaires had been collected within a two months period (beginning –
June to end of July 2020) of dropping off 178 questionnaires. 90 questionnaires were
returned which indicates the response rate is 50.56%. Missing values were reatined in
four questionnaires. Therefore, 85 questionnaires were used for final analysis. The data
collected were coded, captured and analyzed through the uses of Statistical Package for
Social Sciences (SPSS) software, version 22.
Hypothesis of the study
Based on the earlier studies some of the prediction about ICT and Tourism industry are:
H1: ICT has positive impact on competitiveness of the tourism business (Coopers and
Fletchair, 2005; Buhalis, 1998, 2003; Gruescu et al., 2009; Ion & Andreea, 2008; Irvine
& Anderson, 2008; Shanker, 2008).
H2: ICT has positive impact on profitability of the tourism organization (Scheidegger
(2006)
H3: ICT has positive impact on market share (Evans & Peacock, 1999; Buhalis, 2003)
H4: ICT has positive impact on speed up organizational service (Hipp & Grupp, 2005;
Martin, 2004)
H5: ICT and opening of new market are positively corelated (Gruescu et al., 2009)

Analysis of the Study

Analysis of demographic profile of respondents
Table 1: Demographic profile of Respondents
Gender Honors 58.8%
Male 64.7% Masters 38.8%
Female 35.3% Age
Profession Below 20 15.7%
Airline 6.5% 21-30 41.3%
Hotel 17.6% 30-40 23.8%
Motel 6.2% Above 40 19.2%
Restaurant 13.5% Computer literacy
Tour operator 8.5% Very poor 2.4%
Travel agency 9.7% Poor 7.1%
Tour guide 1.2% Moderate 25.9%
Tourist 36.8% Good 48.2%
Education Very good 16.5%
Higher secondary 2.4%

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From the above table it is seen that most of the respondents were male (64.7%) and
female were just over 30%. On the other hand, in profession, highest percentage of
respondents were tourist (36.8%) followed by the hotel and restaurant and the percentage
were 17.6% and 13.5% respectively. Additionally, it is clear from the table that most of
the respondents were highly educated where more than 96% respondents had completed
their honors and masters degree. Moreover, 41.3% respondents’ age was between 21-30
followed by 30-40 years age group. Last but not the least, in case of computer literacy
48.2% respondents said that they good to use computer followed by moderate and very
good.

Discussion
The study used SPSS (version 22) for analyzing data. To achieve the objective of the
study descriptive and bivariate analysis has been conducted to assess the effect of ICT on
the tourism sector (See Table-2). The finding of the study shows that the total observed
effect of ICT ranged from a mean value of 3.882 to 3.975; mean that rather high effect of
ICT on tourism industry. The highest overall effect was found to be on travel agency,
whereas the least effect was on Motel.

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Table 2: Descriptive and Bivariate analysis

Indicators Airline Hotel Motel Restaurant Tour Operator Travel Agency Tour Guide Tourist
M SD M SD M SD M SD M SD M SD M SD M SD
Increased 4.14 .75 4.05 .74 3.89 .72 4.02 .87 3.91 .90 3.92 .85 3.94 1.1 3.87 .94
competitiveness
Speeded up 4.11 .87 4.09 .85 3.92 .79 3.92 .85 3.81 1.1 4.12 .94 4.15 .74 3.78 1.0
organizational service
Increased market share 3.81 .83 3.82 .74 3.70 .76 3.87 .93 3.91 .84 3.90 .85 3.62 .93 3.78 .96
Increased customer 4.00 .74 4.02 .75 4.02 .70 3.90 .93 4.14 .94 3.85 .98 3.97 .83 3.96 .91
satisfaction
Improved company 4.10 .80 4.03 .73 4.02 .70 3.98 .80 4.02 .72 4.05 .80 4.01 .76 4.11 .82
image
Reduced operating costs 3.71 .98 3.82 .83 3.54 1.0 3.62 1.1 3.96 1.0 3.90 .97 3.94 1.0 3.97 .96
Improved profitability 3.89 .80 3.90 .71 4.02 .89 4.04 .88 3.97 .85 4.01 .83 3.96 .76 3.95 .85
Opening up of new 3.88 .74 3.94 .82 3.95 .92 3.90 .81 3.81 .96 4.05 .76 4.04 .93 3.84 .89
markets
Total effect of ICT 3.955 0.813 3.958 0.771 3.882 0.810 3.906 0.896 3.941 0.913 3.975 0.872 3.953 0.881 3.907 0.916

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As per Table 2, the effect of ICT on Airlines was found from 3.71 to 4.14. In terms of the
Airlines surveyed, Information and Communication Technology mostly increased the
competitiveness (V1) of the business, whereas it effect minimally on to the reduction of
their operating cost (V6). In addition, the above table describe that the effect of ICT on
Hotel ranged from 3.82 to 4.09. Regarding Hotel surveyed, ICT had the greatest impact
on the speed of organizational service (V2) while the lowest impact was on the item
‘increased market share’ (V3) and ‘reduced market share’.
The effect of ICT on Motel was found to vary from 3.54 to 4.02, with ICT having the
greatest effect on the indicator “increased customer satisfaction” (V4), improved
company image (V5) and ‘improved profitability’ (V7), whereas the lowest effect was on
the variable “reduced operating cost” (V6).
Moreover, Table 2 also demonstrate that the effect of ICT on the restaurant where the
mean result varied from 3.62 to 4.04. Because of technology profitability of the restaurant
increased largely but surprisingly, operating costs did not decrease so much. So this is the
area where the restaurant can work more to adjust the technology more effectively. Other
than their business will not be sustainable for the long run. Furthermore, the effect of ICT
on Tour operators fluctuated from 3.81 to 4.14, where the result express that due to ICT
tour operators are more capable of satisfying their customer than previous. On the other
hand, technology has minimal impact on the nature of organizational service, especially
in speed. Another factor also has minimal effect, and this is the opening of a new market.
In addition to that, the effect of ICT on Travel agencies ranged from 3.85 to 4.12, with
ICT having the highest effect on the factor “speeded up organizational service (V2)
whereas the lowest effect was on the variable “increased customer satisfaction” (V4)”.
Besides, the effect of ICT on Tour guide ranged from 3.62 to 4.15, with ICT having the
greatest effect on the item “speeded up organizational service (V2) whereas the lowest
effect was on the item “increased market share” (V3)”. Finally, the effect of ICT on
Tourist ranged from 3.78 to 4.11, with ICT having the greatest effect on the item
“improved company image (V5) whereas the smallest effect was on the item “speeded up
organizational service (V2) and “increased market share” (V3)”.
The major observation regarding the finding was that the attribute's increased market
share (V3) and operating cost (V6) reflected the lowest mean score across most tourism
organizations. The fact that ICT was found to have less impact on ‘increased market
share and operating cost. It indicates that there is a serious obstacle to improve tourism
organizations in Bangladesh as they are not highly emphasized on them. They are clearly
not taking advantage of ICT to improve their market share and reduce operating costs. In
case of airline industry, ICT mostly effect on its competitiveness. On the other hand, ICT
speeded up the organization service largly for the hotel, travel agent and tour guide
business. Moreover, the customers of motel and tour operator became more satisfied due
to progress of ICT. Surprisingly, restaurants became more profitable because of using
technology. Last but not the least, tourists think that ICT helps to increase the image of
companies.
Therefore the above discussion and findings showed that ICT has a significant effect on
the tourism industry in developing countries like Bangladesh Many stakeholders, such as

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tourists, airlines, restaurants, hotels, motel, resorts, tour operators, travel agencies, and
Destination management organizations, are involved in Bangladesh's tourism sector.
They use different kinds of applications, such as CRS, GDS, and DMS. ICT also plays
various roles in the tourism sector like strategic and operational management, promotion,
online reservation, reduced cost, e-ticketing, product customisation, and transparency.
ICT can also create customer loyalty by providing a quality product at a lower cost.
Bangladesh will also need to invest in developing ICT infrastructure and ensuring IT
education for the business's smooth running. When it is well ensured, then Bangladesh
will get the optimum result of e-tourism.

Findings of the Study

Players and Applications used in the Tourism Industry

Figure 1: Applications used by tourism stakeholders in e-tourism

Source: Constructed by the authors

Tourism is a multidisciplinary industry where a lot of stakeholders involved to provide
smooth service for tourists. Some of the key players are tourists, airlines, restaurants,
hotel, motel, resorts and other accommodation providers, tour operators, travel agencies,
destination management organization, tourist police, different association, convention
centers, conference centers, corporate meeting planners, independent meeting planners,
and tour guides. Now we are in the age of information, which is strongly supported by

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ICT. Different stakeholders use different technologies to provide better and quick service
for their guests. Airlines, as a key player, are using GDS, such as Sabre, Galileo,
Amadeus, World span for online booking as well as keep customer information to their
database, Computer Reservation systems, travel tracking and flight tracking systems,
wireless inflight entertainment devices, onboard Wi-Fi facilities, Mobile check-in, and
smartphone boarding passes, and social media for promotion. Besides, hotel and
restaurant, as the key stakeholders of tourism sector use different kinds of technology
such as office automation, procurement management applications, internal management
tools, computer reservation systems, global distribution system, switch applications, point
of sale, internet, wireless, e-payment, revenue management system, virtual reality, online
video, customer relationship management software, and marketing automation. Lighting,
room temperature, blinds, alarms, TV, radios, and room service will be maintained just
by a click in the apps with the help of smart appliances where guests can download the
software and login to it.
On the other hand, Tour operators and travel agencies use Internet for providing
information, virtual tour technology for virtual tourism, and online booking systems such
as CRS, GDS to make the booking process easy. They also use a channel management
system that allows tour and activity operators to manage all the various channels that they
distribute with. Travel agencies also use agency front/mid/back-office systems, GDS
automation, net fares, and rates databases, CRS systems, custom developments, and
business intelligence reporting. Destination Management Organizations (DMOs) use
Geospatial Information Technologies (GIS) for identification, managing, and monitoring
of Tourist sites and destinations. Tour guides widely use the new technology, Tour Group
System (TGS). Tourists use different online platforms, booking tickets and rooms by
using computer, software like GDSs, different online intermediaries, mobile phone tools
and cameras for taking photos.

The Role of ICT in the Tourism Industry

Figure 2: Role of ICT in the tourism industry

Source: Constructed by the authors

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The tourism industry is changing rapidly day by day with the help of Information, and
this industry transferred from scarce information to the abundance of information, and it
was possible because of ICT innovation. Considerable investment in technology was
made by the airline industry, followed by tour operators for developing the tourism
industry. Now the time has come to say that ICT plays an essential role in the tourism
industry. ICT has very important contribution to run the organization smoothly both in
the arena of operation and marketing by different stakeholders of tourism industry. ICT
alters the search patern of tourists and now they can easily find out the different visiting
options, make comparison among them and book room and ticket over the internet.
Travelers can collect information before selecting destination, tourism product and
service from the website of different companies, from travel-related sites, social media.
ICT helps to reduce labor cost by replacing electronic equipments for human activities, in
improving some processes, a decrease of the size of equipment, lessen the
communication cost, reduce distribution cost and increase productivity; as a result
company can provide tourism package in a lower and cheaper price and reduce the
wastage. In case of accommodation and airline industry ICT plays a role in both back and
front office areas by emphasizing in POS technologies, entertainment and facilities in
room, back of the area maintenance, staff management, stakeholder management, and
revenue management.
An organization which uses ICT can run their business twenty four hours a day, seven
days a week, 365 days a year, so the customer gets their service all time which increase
their satisfaction and loyalty. ICT’s are notably changing the structure of distribution. In
the case of promotion of the destination, tourism products, and services, the influence of
ICT is enormous. Technology helps to focus on online marketing such as advertisements
in different websites, search engine marketing, social media marketing and email
marketing. By using technology, an organisation can maintain the customer relationship
and follow-up through a contract database, update group email lists for sending an e-mail
regarding incentives and encouragement for customers to place reviews.
Another role of ICT is to create a strategic alliance among different organizations of the
world through GDS. Organizations such as airlines, hotels, tour operators, travel agencies
get up-to-date information and make their reservations from a single point. ICT provides
an opportunity for e-ticketing which has several advantages such as tickets can be
downloaded directly from the site, if stolen can download again, very faster to collect the
ticket and can make change within very short time. Also, checking procedure is simpler.
Some of the other roles of ICT are managing destination resources, inventory of tourism
resources, managing sites, and attraction, identifying suitable locations for tourists, and
manage tourist statistics.

Uses of ICT by Several Tourism Stakeholders in Bangladesh

Under the slogan of digital Bangladesh, every single industry of Bangladesh is trying to
accommodate technologies. The tourism industry of Bangladesh is also trying to be
digitalized by introducing and installing different applications of technology. Different
stakeholders of tourism industry of Bangladesh such as tourists, accommodation sector,
transportation sector, attraction sector, Bangladesh Tourism Board (BTB), Bangladesh

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Parjatan Corporation (BPC), Association of Travel Agents in Bangladesh (ATAB), Tour

Operators Association of Bangladesh (TOAB), tourist police and tour guides are using
technology for different purposes. Tourists use ICT for searching information regarding
destination review, booking tickets, hotel rooms, tour packages, paying the bill, hearing
commentary in destination, location tracking, taking snapshots, and providing electronic
word of mouth (e-WOM) about visiting experience. Accommodation sectors such as
hotels, motels, and resorts use information technology for online reservation, promotion,
room service, and other facilities. Transportation sector uses ICT for reservation, online
check-in, flight tracking, and digital payment. Bangladesh Tourism Board (BTB) uses
information technology for promotional purposes. Bangladesh Parjatan Corporation uses
technology for conducting administrative functions, providing training programs,
destination management, and promotion. On the other hand, several travel agents, tour
operators which are the members of ATAB and TOAB use information technology for
package creation, visa processing, ticketing, virtual tour, customer follow-up, issuing on-
line certificates, on-line training program.

E-Tourism: Supply and Demand

Figure 3: E-Tourism: Supply and Demand

Source: Authors constructed

To meet the supply and demand for tourism in the long term, a country must integrate
ICT enabled tourism intermediaries and improved cooperation among all the
stakeholders. The key to the success of the supply-side depends on the identification of
travelers' needs by analyzing the up-to-date information and serving the needs with a
comprehensive, personalized, timely manner. ICT empowered tourism businesses like- e-
Destinations, e-Hospitalities, e-Airlines, and e-Travel agencies. Social media, blogs, and
websites, such as Trip Advisor, can work as a bridge between the supply and demand
side to spread valuable information and promotion. Moreover, E-tourism helps tourism

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Bangladesh

businesses to develop, modify and sell their products internationally, increase the sales
volume and to reduce seasonality by adjusting supply and demand.

Conclusion
Now we live in an age of information where information is everything (Bosamia, 2013)
and is well supported by ICT. Tourism is an information-based industry, so this industry's
success highly depends on the availability of information. The proper use of ICT by
developed countries help them to be successful in this sector. With this global trend,
Bangladesh is also focusing on ICT for developing the tourism industry. Time has come
to give more emphasis on ICT to compete with other countries of the world. First and
foremost, ICT culture must be developed for applying the tools of ICT in the tourism
industry. At the same time, we have to create and sustain the ICT environment, Maintain
and update websites continuously, ICT training for all levels of workers, and establish
electronic linkages between all related sectors. Use of ICT will be more famous and
successful for tourism business if it can be ensured that policy makers, managers and
other stakeholders get the proper education and training on information technology. This
process will be more vibrant if authority include all the stakeholders of tourism industry
such as transport, accommodation, entertainment and food and beverage. To attain the
goal of spreading the use of ICT in tourism industry it is mandatory to make available
ICT for all with the latest technologies, infrastructure, minimal cost and awareness
program. It is the right time for Bangladesh to focus on the development of tourism
industry by applying all the possible applications of ICT which are available worldwide
for tourism stakeholders.

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