Tourism for the 21st Century

Stimulating enterprise

Tourism in the UK is an industry of small businesses, yet it is one of the biggest employers with more people than work in construction or transport.

Although the power of the Internet is growing rapidly, the tourism and leisure sector is diverse in its access to and use of technology. Tour operators and large hotel chains are relatively sophisticated in their approach, while small accommodation providers do not take advantage of online selling opportunities and other technology benefits compared with other business sectors. This failure to embrace technology is significant, as small players are an essential link in promoting destinations both domestically and internationally.

There is a vast array of direct booking opportunities available from web-only based operators, while high street operators and retailers are increasingly offering their products and services online as well.

There is no better time for businesses in the tourism sector to embrace new technology and benefit from the opportunities it offers. The power of broadband provides access to a global market, giving customers the opportunity to experience the offering and book online. Through e-learning, it can also help address the significant skill gaps within the sector – with 61% manager vacancies reported in tourism and 55% of chef vacancies being difficult to fill.

Key Facts

• 90% of UK tourism businesses employ ten or fewer people.

• 130,400 people working in tourism are self-employed.

• In 2002, 58% of serviced accommodation providers had email, 45% had websites and 2% online booking.

• One in seven jobs are in the tourism sector – making it one of the UK’s biggest employers.

Putting people first

Although there are 6,300 travel agents in the UK, many people now book their travel direct through the Internet, with those aged between 25 and 44 most likely to book online. Customers want to book their travel in real time and if the service isn’t available, they will look elsewhere.

In today’s networked society, people communicate with each other via the Internet and their mobile phones – and this is how they expect to receive information from the businesses they buy products and services from. Consumers are generally becoming more confident in their use of the Internet to make purchases, although there is still some wariness about security.

The UK has an ageing population – with a declining proportion of under- 16s and an increasing number of people aged 65 and over. The travel industry needs to take note of this – as over-50s have substantial spending power, owning 80% of the UK’s wealth, worth ?280 billion. Increasingly accustomed to taking breaks, older people are becoming bolder travellers but will continue to be major spenders on domestic tourism while at the same time, they look to sample new and exciting destinations.

Tourism is changing. As customers become more affluent they are demanding more from travel. Rather than simply a holiday, they are looking for new experiences and personalised travel and when they get there, they are looking for on demand location based information during their visit. This trend to greater sophistication means that using technology to maximise opportunities is even more important.

BT has been partnering with clients in the tourism sector, helping them to use technology to boost their businesses. An example is Stratford Unplugged, the UK’s first wireless broadband project for tourists visiting Stratford upon Avon. Visitors get an exciting 21st Century experience of the 16th Century genius, thanks to wi-fi hotspots located across Stratford that know where you are and automatically point out the literary highlights of Stratford. Tourists just need to hire a handheld personal organiser and local history and tourist services are at their fingertips.

For the London Eye, BT developed an online booking and timed ‘flights’ system, called Rialto, a multi-channel sales and admissions system with support for European languages and multiple currencies. The website offers a full ‘shopping basket’ capability for its customers so they can book a wide range of packages combining a flight with River Cruise, West End theatre, restaurant – all in one easy booking. BT provides 24/7 support.

Alton Towers is also benefiting from BT’s Rialto service. The new webbooking system now allows visitors to book their tickets easily in advance and has reduced queues at the entrance to the park.

Harnessing technology to boost business works for SMEs too. For example, The George Inn at Mere in Wiltshire, an eight room pub/hotel run by Robin Binstead now offers guests internet connections in bedrooms, wireless internet in the pub for local residents and forwarding to mobile, allowing management to leave the business occasionally!