Online bookings, billing and ticketing activities lie at the heart of high quality and reliable services in the leisure, entertainment and travel (LET) industry. Indeed, they can effectively act as a primary differentiator in an increasingly competitive and cost-aware environment.
I D C E X E C U T I V E B R I E F
e B o o k i n g a n d e T i c k e t i n g : H o w t o A c h i e v e S u s t a i n a b l e , C o m p e t i t i v e A d v a n t a g e i n t h e L e i s u r e , E n t e r t a i n m e n t a n d T r a v e l i n d u s t r y January 2008 Sponsored by: Easynet
Giorgio Micheletti moc.cdi. 1. Introduction www Online bookings, billing and ticketing activities lie at the heart of high- 0 quality and reliable services in the leisure, entertainment and travel 01 (LET) industry. Indeed, they can effectively act as a primary 7.78 differentiator in an increasingly competitive and cost-aware 98. environment. 02.44 This Executive Brief highlights how transactional networks and IT +.le networking services can successfully support customer bookings, T . billings and ticketing activities in the LET sector. The paper provides K. a brief introduction outlining the major macro and business trends U ,E affecting the LET industry today. It then focuses on the advantages A4 that LET companies can gain from the adoption of current 4W technologies and services to adjust their offerings constantly. ,nodnoL 2. Macro Trends Affecting the LET Industry: Cost- ,d Reduction and Fierce Competition aoR The LET industry in Europe is benefiting from the favourable hgi economic situation of most of the key tourist-generation markets, H kc where levels of GDP and disposable income continue to be stable, if iwsi not slightly on the increase. hC 98 Together with the macroeconomic environment, other more specific 3 , factors tend to positively affect the LET industry today. For example: AEME . Tourism activities continue to play a major role in the global CDI economy, with European countries such as France, Spain, Italy and the UK among the world's top tourism destinations both in terms of international tourist arrivals and revenue.
. Increasing support is being given by national governments in Europe through enhanced investments in infrastructure and promotion activities, liberalisation of border procedures, growing interregional cooperation and increased public/private partnerships.
. Expanding demand driven by the changing demographic characteristics in Europe is allowing an increasing proportion of elderly people (and, indeed, people with disabilities) to access a new range of leisure, entertainment and tourism services.
. New consumer behaviour is steadily gaining ground with strong increases in short trip destinations that offer good value for money (such as the new EU countries in Central and Eastern Europe) and a renewed importance of sustainable tourism, which takes into consideration corporate and social responsibilities.
3. Major Challenges Affecting the LET Industry: Demographic Changes, Internet Diffusion and the Emergence of a New Business Model The above picture is not without potential challenges. Apart from a series of well-known external threats (political instability, terrorist attacks, high oil prices, rising interest rates, currency fluctuations, health scares, etc.), the industry is faced with additional disruptive pressures, such as:
. Changes in demography and new consumer behaviour pushing customer preferences towards the concept of low cost.
. Widespread IT literacy, with expanding Internet adoption, is increasingly accustoming consumers to self-service and "DIY". This causes downward pressure on prices and allows consumers to bypass tour operators, with considerable reduction of channel and distribution costs.
. The need to ensure high ROI, increase sales productivity and obtain better sales margins, while continuing to reduce costs, after years of heavy marketing investment.
On the whole, these trends are rapidly changing the LET landscape in Europe and are forcing LET companies to devise new and rapidly evolving business models in a context increasingly characterised by fierce competition and the quest for cost-effectiveness.
Online booking, billing and ticketing address these challenges by taking cost out of LET companies' back-office operations and expanding their customer reach. However, they also level the... [download for more]
