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UNIVERSITY OF SURREY

SCHOOL OF MANAGEMENT

WWIRELESSIRELESS T TECHNOLOGIESECHNOLOGIES FORFOR T TOURISMOURISM

DDESTINATIONESTINATION M MANAGEMENTANAGEMENT

by

ELENI FLOURI

A dissertation submitted in part-fulfilment of therequirements for the award of the

Degree of MSc e-Tourism

2003 ©

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Ποτέ δεν προλαβαίνω να σκεφτώ το μέλλον. Έρχεται πάντα πολύ γρήγορα.

Albert Einstein

I never think of the future – it comes soon enough.

Albert Einstein

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DeclarationDeclaration

I hereby declare that this thesis has been composed by myself and has not been

presented or accepted in any previous application for a degree. The work, of which

this is a record, has been carried out by myself unless otherwise stated and where the

work is mine, it reflects personal views and values. All quotations have been

distinguished by quotation marks and all sources of information have been

acknowledged by means of references including those of the Internet.

Eleni Flouri

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AbstractAbstract

It is commonly accepted that the perception of tourism is changing. Nowadays

people prefer to take short brakes rather than long vacations. Additionally, they tend

to combine several purposes with travelling, such as business with leisure.

Therefore, they do not perceive themselves as ‘classical tourists’, but as ‘advanced

tourists’, who have more sophisticated interests and needs. Such people do not

invest a great deal of time to pre-plan a trip in detail. Advanced tourists need up-to-

date and accurate information, and are willing to support new services. They also

demand location-based information about the destination, including history, culture,

environment and nature. Furthermore, they ask for personalised information and

services, adjusted to their own interests (Poslad, et al., 2001).

There is no doubt that the explosive growth of Internet has an enormous impact on

tourism and has affected visitors’ behaviour. Despite that, in the present time,

tourists require to have access on information while they are on the move. This led

to the need of developing data in content applicable to mobile phones and other

portable devices (Ralph & Shephard, 2001).

The development of wireless technologies will make possible the access to

information services. It is expected that 3G will become a significant factor to future

provision of tourism services, since it offers both mobile online access and various

services that aim directly to facilitate and enhance mobility.

Tourism destinations can also take advantage of the new technologies and enhance

their position in the market. Destination Marketing Organizations (D.M.Os) are

advised to consider the creation of applications for mobile communication, as a

consequence of Internet applications. This requires the collaboration of many

stakeholders, who do not share the same interests. Therefore it is proposed that joint

action taken by public tourism organisations and private sector companies could lead

towards the development of services for tourist usage. Still, national and local

governments should probably take responsibility for initiating and managing

information systems for travellers, accessible by mobile devices (Hultkrantz, 2002).

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Table of Contents

Abstract.......................................................................................................................iii

List of TablesList of Tables............................................................................................................................................................................................................................viivii

List of FiguresList of Figures........................................................................................................................................................................................................................viivii

List of ChartsList of Charts..........................................................................................................................................................................................................................viivii

List of AbbreviationsList of Abbreviations..................................................................................................................................................................................................viiiviii

AcknowledgmentsAcknowledgments................................................................................................................................................................................................................xx

Chapter 1: IntroductionChapter 1: Introduction......................................................................................................................................................111.1 Introduction......................................................................................................1

1.2 Problem Statement..........................................................................................2

1.3 Objectives of the Study....................................................................................2

1.4 Structure of the Study.....................................................................................2

Chapter 2: Tourism Destinations and TechnologyChapter 2: Tourism Destinations and Technology................................................................................44

2.1 Introduction......................................................................................................4

2.2 Definition of Destination.................................................................................4

2.3 Destination Organisations...............................................................................62.2.1. Destination Management Organisations (D.M.O.s)..............................62.2.2. National Tourism Organisations (N.T.O.s)...........................................72.3.3. Public Sector..........................................................................................8

2.4 Destination Marketing using ICTs and other forms of Technology.........102.4.1. Destination Management Systems (D.M.S.).......................................102.4.2. Internet.................................................................................................12

2.5 Conclusion......................................................................................................13

Chapter 3: Wireless TechnologiesChapter 3: Wireless Technologies........................................................................................................................................1414

3.1 Introduction....................................................................................................14

3.2 Definitions of Wireless Technology..............................................................143.2.1 Wireless Personal Area Networks (W.P.A.N.s) - Bluetooth....................143.2.2 Local Area Networks (L.A.N.s)................................................................15

a. The 802.11 Family.....................................................................................15b.Wi-Fi (802.11b)..........................................................................................17c. 802.11 Evolution........................................................................................19

3.2.3 Wireless Wide Area Networks (W.W.A.Ns)............................................19a. Wireless Application Protocol (W.A.P.)....................................................21b. General Packet Radio System (G.P.R.S.)..................................................21c. 3rd Generation Mobile Networks................................................................22

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3.2.4 Technologies Comparisons.......................................................................24a. 3G vs. G.P.R.S...........................................................................................24b. 3G Networks vs. Wireless LANs...............................................................25

3.2.5 Location Based Services (L.B.S.).............................................................27

3.3 Portable Devices.............................................................................................293.3.1 Mobile Phones..........................................................................................293.3.2 Personal Digital Assistants (P.D.As)........................................................293.3.3 Laptops......................................................................................................30

3.4 Mobile Commerce..........................................................................................31

3.5 Current Applications of Wireless Technologies in Tourism......................32

3.6 Conclusion......................................................................................................33

Chapter 4: MethodologyChapter 4: Methodology............................................................................................................................................................................3434

4.1 Introduction....................................................................................................34

4.2 Research Design.............................................................................................344.2.1 The Purpose of the Study..........................................................................344.2.2 The Type of Investigation.........................................................................35

4.3 Data Collection...............................................................................................364.3.1 Secondary Data.........................................................................................364.3.2 Primary Data.............................................................................................374.3.2.1 In-depth Interviewing............................................................................37

a. Types of Interviews....................................................................................38b. Methods of Interviews conduction............................................................38c. Instrument’s Evaluation.............................................................................40d. Objectivity of Interviews...........................................................................41

4.3.2.2 Validity and Reliability of Primary research.........................................42

4.4 Sampling Design.............................................................................................42

4.5 Pilot Study......................................................................................................44

4.6 Data Analysis..................................................................................................44

4.6 Limitations of Primary Research.................................................................46

4.7 Conclusion......................................................................................................46

Chapter 5: Analysis of FindingsChapter 5: Analysis of Findings..............................................................................................................................................4747

5.1 Introduction....................................................................................................47

5.2 The respondents’ profile...............................................................................47

5.3 Findings and Discussion................................................................................505.3.1 Stakeholders and their Roles.....................................................................50

a. Public Sector involvement.........................................................................535.3.2 Wireless Technology as a new Distribution channel and Marketing tool............................................................................................................................545.3.3 Success Factors.........................................................................................565.3.4 Estimated Benefits....................................................................................59

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5.3.5 Limitations and Challenges......................................................................605.3.6 Potential Wireless Applications in Destinations.......................................625.3.7 M-Commerce for Destinations.................................................................64

5.4 Conclusion......................................................................................................65

Chapter 6: Recommendations and ConclusionsChapter 6: Recommendations and Conclusions......................................................................................6666

6.1 Recommendations to the Industry...............................................................66

6.2 Further Research...........................................................................................68

6.3 Limitations of the Study................................................................................68

6.4 Contribution of the Study.............................................................................69

6.5 Conclusion.......................................................................................................69

Appendix AAppendix A ................................................................................................................................................................................................................................ 7171

Appendix BAppendix B ................................................................................................................................................................................................................................ 7272

Appendix CAppendix C ................................................................................................................................................................................................................................ 7474

Appendix DAppendix D ................................................................................................................................................................................................................................ 7575

Appendix EAppendix E ................................................................................................................................................................................................................................ 7676

BibliographyBibliography ........................................................................................................................................................................................................................ 7676 77

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List of TablesList of Tables

Table 2.1 Type of Destination and Reason for Visiting..............................................5Table 2.2 Products and Services distributed via D.M.Ss...........................................11Table 3.1 In-Progress IEEE 802.11 Standardization efforts......................................19Table 3.2: Comparisons: 3G vs. Wi-Fi......................................................................25Table 4.1 Number of In-dept Interviews...................................................................40Table 4.2 Type of In-dept Interviews........................................................................40Table 5.1 Categories of Companies and Organizations.............................................47Table 5.2 Participation of Interviewees per department............................................49Table 5.3 Content analysis grid – Main identified stakeholders (n=28)....................52Table 5.4 Participation of Public Sector....................................................................53Table 5.5 Content analysis grid – Use as a Marketing tool and Distribution channel

(n=28)................................................................................................................55

List of FiguresList of Figures

Figure 2.1: The 6A framework for the analysis of tourism destinations.....................4Figure 3.1: Bluetooth scatternet architecture.............................................................15Figure 3.2: Wireless Local Area Network functionality............................................18Figure 3.3: Ad Hoc Wireless Local Area Network...................................................18Figure 3.4: U.M.T.S. services and applications.........................................................24Figure 3.5: Foreseen wireless/mobile communications scenario..............................27Figure 3.6: The m-commerce value chain.................................................................31Figure 5.1: Wireless process in tourism destinations................................................50

List of ChartsList of Charts

Chart 4.1 Divisions of Participants............................................................................44Chart 5.1 Shares of Participation per Group..............................................................48Chart 5.2 Shares of Participation per Category.........................................................49Chart 5.3 Success Factors..........................................................................................56Chart 5.4 Estimated Benefits.....................................................................................59

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List of AbbreviationsList of Abbreviations

A.C.T.S. Advanced Telecommunications Technology & Services

A.P. Access Point

A.T.I.S. Advanced Traveller Information System

C.R.M. Customer Relationship Management

D.I.C.I.R.M.S.

Destination Integrated Computerised Information Reservation Management Systems

D.M.I.S. Destination Management Information Systems

D.M.O. Destination Management Organisations

D.S.S.S. Direct Sequence Spread Spectrum

F.C.C. Federal Communication Commission

F.H.S.S. Frequency Hopping Spread Spectrum

G.P.R.S General Packet Radio System

G.S.M. Global System for Mobile Telephony

GHz Giga Hertz

I.C.T. Information Communication Technology

I.E.E.E. Institute of Electrical Electronics Engineers

I.M.T. International Mobile Telecommunication

I.T. Information Technology

I.T.S. Intelligent Transportation Systems

Kbps Kilobits per second

L.B.S. Location Based Services

M.M.S. Multimedia Message Service

Mbps Megabits per second

N.T.O. National Tourism Organisation

P.A.N. Personal Area Network

P.P.P. Public Private Partnership

S.M.S. Short Messaging Service

S.M.T.E. Small & Medium Tourism Enterprises

U.M.T.S. Universal Mobile Telecommunications System

V.A.S. Value-added Services

W.A.P. Wireless Application Protocol

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W.E.C.A. Ethernet Compatibility Alliance

W.L.A.N. Wireless Local Area Network

W.W.A.N. Wide Wireless Area Network

W.W.W. World Wide Web

Wi-Fi Wireless Fidelity

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AcknowledgmentsAcknowledgments

This last year in Guildford has been a unique experience and initiated a new

beginning in my life. I was given the chance to learn interesting things, but most of

all to meet very interesting people: from teachers to friends.

One of those people is Dr.Buhalis, the stream leader of the MSc in e-Tourism and

my supervisor on this study. His innovative idea for the creation of this master’s

programme gave me a new perspective and changed the way I perceive things. I

would like to thank him for his guidance and coordination throughout the year.

Furthermore, I would like to thank all the experts for their contribution in this

research and for the provision of valuable information.

As this year reaches the end, it leaves me with many close friends who turned my

stay in England into an exciting ‘trip’. Basak, Karen, Terrence, Gilberto were those

among many who expanded the boundaries of my world.

Still, it was a lucky coincidence for me that Rika, Elina, Martha, Maria, Kelly,

Nikos, Dimitris, Apostolis, Sevi, Christoforos and Elena decided to come this year

in Surrey for their masters. Words are not enough to thank all and each one of them,

for all the moments we shared and for honouring me with their friendship.

Most of all, I would like to express my gratitude to my parents, Pavlos and Eleni, for

always being there for me and for supporting by all means any of my decisions.

Also, I would like to thank my sister, Anastasia, and my brother, Michael, for

putting on hold their dreams during this year and for making me laugh whenever I

needed it the most. Last but not least, I would like to thank Minas, for having the

strength and patience to stand by me.

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Chapter 1: Introduction


1.1 IntroductionIt has been established that destinations should be promoted on line in order to

maximize their potential.

Destination Management Systems (D.M.Ss) were developed to enable D.M.Os to

collect, manage and distribute information regarding the destination as well as

facilitate the fulfilment through reservations effectively. Internet has significantly

affected destinations and has changed tourism industry’s structure. From the

customers’ point of view, it became the easiest and least expensive way for

travellers to collect information for a destination with regards to accommodation,

transportation, cultural events etc. On the other hand, it evolved as a new and direct

channel of communication between suppliers and customers. Accordingly, the

Internet proved to be a great opportunity for a number of D.M.Os to communicate

directly with potential visitors by developing their own web sites, providing any

kind of information regarding the destination and facilitating reservations.

Nevertheless, technology continues to develop rapidly and currently there are new

applications available that can be used to enhance the image and performance of a

destination. Wireless technologies emerge rapidly and are estimated to have an

enormous impact on tourism. In particular, Location Based Services are expected to

be the ‘killer application’ of the future. However, there is still a lot of effort required

in order to become an absolutely vital tool for tourism.

Any reference to wireless technology for tourism involves particularly the ability of

the visitor to have access on information while on the move, using mobile devices.

3G mobile phones, P.D.As and other mobile devices combined with Wi-Fi enabled

laptop PCs are expected to be used widely. The ability of connecting to the Internet

via those devices whilst understanding the location of the user will make L.B.S.

applications a success, especially when issues like speed and cost will be solved for

the end user.

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1.2 Problem StatementDestinations face a wide range of challenges in the implementation of wireless

technology. Many destinations still, have not managed to develop credible Internet

Services. Although there are some wireless applications used by certain destinations,

it has not become clear yet, which are the stakeholders that should collaborate in

order for Location Based Services to be developed. Moreover, it is unclear which

business models will emerge to make wireless services viable. In some cases the

initiative is taken by the local tourism board, collaborating with a mobile company.

In other cases, cooperation between two private owned companies has been

developed, for instance a mobile company and a content provider, whose main

purpose is to offer supplementary services.

1.3 Objectives of the StudyTherefore, the main objectives of this research are:

to identify the stakeholders which should cooperate for developing wireless

applications for tourism destination

to determine the role of each stakeholder in the whole process

to identify the benefits and drawbacks of those implementations for the

destination

to identify key success factors

to explore potential business models

1.4 Structure of the StudyThe thesis is structured and presented according to the chapters summarised as

follows:

Chapter 2: The second chapter of the study focuses on the tourism sector. The

meaning of destination is defined, as well as the organisations that in charge of

managing and promoting it. Furthermore, a short review of the technological

developments that have been thus far applied for destination management is

included.

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Chapter 3: Chapter three is dedicated to wireless technology. The most profound

and commonly forms of wireless technology are presented, and the way that has

been thus far applied in the tourism sector.

Chapter 4: Chapter four is referring to the methodology used for the conduction of

the research. The methods used for the analysis of findings is also included, as well

as the limitations that the researcher had to overcome.

Chapter 5: In chapter five the results of primary research are illustrated. Having

divided findings in seven (7) categories, the objectives of the study have been met.

Chapter 6: The last chapter of this study is summarising the core results and

includes recommendations for the industry, as well as for further research on

wireless technologies and their integration in tourism.

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Chapter 2: Tourism Destinations & Technology

Chapter 2: Tourism Destinations and Technology

2.1 IntroductionDuring the last years, the contribution of technology’s applications in tourism has

been widely recognized, while the consequent alterations in the structure of tourism

sector are still being examined. The travel and tourism industry has benefited

tremendously from the implementation of Information Technology (I.T.) (Cheong,

1995). The growth of Internet has influenced the overall sector and more specifically

destinations, in terms of promoting themselves and approaching potential visitors

(Buhalis, 2000). Similarly, the application of Destination Management Systems

(D.M.Ss) can be mentioned as another example, as they have thus far supported

destinations in strengthening their competitiveness (Buhalis, 2003).

In this chapter are discussed the above mentioned, current applications of

technology as regards destination marketing, as well as their effectiveness on the

field. In doing so, definition of tourism destination is attempted, along with the

organisations that are responsible for their management and promotion.

2.2 Definition of DestinationThe term ‘destinations’ refers to geographical areas, such as countries, islands or

towns, that offers a combination of tourism products integrating visitors’ experience

(Hall, 2000; Davidson & Maitland, 1997; Buhalis, 2003; Sussmann & Baker, 1996).

The components of a destination can be summarized in the 6As framework, which

includes (Buhalis, 2003): Attractions, Accessibility, Amenities, Available packages,

Ancillary services, and Activities.

Figure 2.1: The 6A framework for the analysis of tourism destinations

Attractions (natural, man-made, artificial, purpose-built, heritage, special events). Accessibility (entire transportation system comprising routes, terminal and

vehicles). Amenities (accommodation and catering facilities, retailing, other tourist services). Available packages (pre-arranged packages by intermediaries and principals). Activities (all activities available at the destination and what consumers will do

during their visit). Ancillary services (services used by tourists such as banks, telecommunications,

post, newsagents, hospitals etc.) (Source: Adopted from Buhalis, 2003, p. 290)

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Because of the above mentioned framework, destinations are considered to be the

prime motivation and reason for tourism (Buhalis, 2003). Moreover, tourism

destinations can be described as a network of independent companies, the majority

of which are small and medium sized tourism enterprises (S.M.T.E.s) (Palmer, 2002;

Buhalis & Spada, 2000). On that account, they are considered to be one of the most

difficult products to market, since a large number of stakeholders are involved in the

process. Consequently, the created brand image cannot be typically controlled by a

sole destination marketing manager (Palmer, 2002; Alford, 1998).

In addition, based on the 6A framework, destinations can be divided in the following

primary categories: Urban, Seaside-Resort, Alpine, Rural, Authentic (referring

mainly to countries of the Third world) and Unique-exotic-exclusive. This kind of

categorization enables destination marketers to develop the appropriate marketing

mix and apply it to the suitable market segment (Buhalis, 2000). Table 2.1

summarizes each type of destination and the different reasons for visiting it:

Table 2.1 Type of Destination and Reason for Visiting

Type of Destination Reason for Visiting

UrbanBusiness, Leisure, Education, Religion,

Health, Sports Organisations.

Seaside (Resort) Summer holidays, Relaxation.

AlpineLeisure, Winter sports, Discover

unexplored nature.

RuralBack-to-nature trend, Familiarization

with agriculture.

Authentic (Third World)

countries

Authentic experience, Limited tourism

development, Adventure.

Unique-Exotic-Exclusive Dream Vacations.

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2.3 Destination OrganisationsIn every destination there is an authority in charge of managing its components and

promote them in the tourism market (Coltman, 1989; Formica & Littlefield, 2000).

This authority is usually state-controlled and is developed at a local, regional or

national level; alternatively, it could be a formed partnership between stakeholders

within the local tourism industry (Cooper el al., 1998; Mill & Morrison, 1998). This

is due to the fact that creating a destination brand necessarily involves all tourism-

related organisations and requires their focused attention. It is challenging for all

stakeholders to gather and agree on the development of a consistent destination

brand (Palmer, 2002).

Destination Management Organisations and National Tourism Organisations are

identified as the main bodies for managing and marketing destinations. Each

destination must have at least one body. In some cases, both types of authorities

might exist and have a role, but that depends on the general political environment

(Hall, 1998). Still, due to the fact that usually the involved stakeholders have

separate interests and expectations, it is not possible for destinations to be managed

or promoted as enterprises (Buhalis, 2000; Palmer, 1998).

2.2.1. Destination Management Organisations (D.M.O.s)

Middleton (2001, p.327) describes “Destination Management Organisations as the

marketing side of a National Tourism Organisation or else National Tourism

Administration, responsible for the overall marketing of countries as tourist

destinations”. In fact, Destination Management Organisations (D.M.O.s) have the

responsibility for the planning and marketing of areas mainly on a local or regional

level. Organisations responsible for a country as a destination are called National

Tourism Organisations (N.T.O.s), as is discussed in the following section (Coltman,

1989).

Still, D.M.Os have the power and funds to achieve strategic objectives in terms of

promoting and managing a destination. In fact, they tend to be part of the local,

regional or national government. Their functionality is based on legislative and

management tools - often provided from the public sector (Buhalis & Spada, 2000) -

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in order to ensure that all involved stakeholders share equally the arising benefits

from tourism. Also, they ensure that resources are being distributed in ways that

contribute towards the sustainability of tourism product. In case they fail to meet the

objectives or maintain the relationships among stakeholders balanced, the long-term

competitiveness of destination is threatened. However, even though D.M.Os have

traditionally been considered responsible for promoting a destinations’ product, they

often have no control on marketing activities of individual players. On that account,

their role is constrained in providing coordination and guidance, rather than have the

full responsibility of a complete marketing strategy (Buhalis, 2000).

2.2.2. National Tourism Organisations (N.T.O.s)

Kotler el al. (1999, p.667) define National Tourism Organisations as “a central

tourist agency, which may be public, quasi-public, non-profit or private”. However,

the majority of N.T.O.s worldwide are part of the public sector and therefore, carry

out public policy in accordance to the goals of the government (Coltman, 1989).

Also, Formica & Littlefield (2000) support that, N.T.Os cannot be replaced by

private parties, because of the social and economic benefits tourism offers in the

entire country.

Their aim is primarily to increase the amount of foreign travel to their country,

encouraging at the same time domestic tourism (Gartner, 1996). Their core activities

traditionally include coordination, legislation, promotion, research and tourist

information provision (Choy, 1993). According to Lickorish el al. (1991), a National

Tourist Organisation ought to be in charge of the following functions:

1. Research

2. Information and promotion within the country

3. Regularization of standards of lodgings and restaurants

4. Control of activities of private travel agencies

5. Publicity overseas

6. International relations

7. Development of selected tourist areas

8. Overall tourism policy and promotion

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The tourism industry however changes as it is affected tremendously by

technological development. Accordingly, N.T.Os have to be prepared to follow the

trends and adjust to the new reality, in order to meet ‘new’ visitor’s demands and

community’s needs (Choy, 1993). Buhalis and Spada (2000) argue that NTOs have

not thus far taken any initiative to undertake the role of ‘active IT leaders’, leading

and encouraging the change that benefits all involved stakeholders. Leu (2001)

states that N.T.Os are challenged to undertake a new leadership role in the ‘New

Information Technology Age’ and adopt pioneering and creative marketing

methods. On that account, it is suggested that National Tourism Organisations

should embark upon alternative roles and adopt dynamic practices, consistent with

destination’s stages of development (Choy, 1993).

2.3.3. Public Sector

Traditionally, public sector has overall responsibility for planning, managing and

marketing destinations, either via D.M.Os and N.T.Os or by establishing Tourism

Ministries.

The involvement of public sector is necessary in order to centralise policy-making

and to create a suitable framework for the promotion and development of tourism

(Jenkins, 1991). This is done via the general economic and regulatory parameters set

by the government for the accomplishment of its overall goals concerning the

country (Hall, 1998). The lack of central authority may create difficulties in

coordinating and controlling tourism development (Lickorish el al., 1991).

Therefore, the issue is not whether government should have a role, but what the

nature of that role should actually be (Davis el al., 1993, as cited in Hall, 1998).

Hall (1998) states that there are five (5) are main areas that public sector should be

involved concerning the tourism sector. Those are: coordination, planning,

legislation and regulation, entrepreneur, and stimulation. Holloway (1994) claims

that, coordination is necessary both within and between the different levels of

government in order to avoid duplication of resources in the various government

tourism bodies and the private sector, and to develop effective tourism strategies. It

can prove extremely difficult though due to the large number of parties involved in

the decision-making process in regards to tourism. Additionally, Planning tends to

8


be a combination of economic, social and environmental considerations, reflecting

the diversity of factors by which tourism development is influenced. It focuses

mainly on site development, accommodation and building regulations, the

presentation of cultural, historical and natural tourist features and destination’s

general infrastructure (Heeley, 1981). As regards legislation and regulation, Witt &

Moutinho (1995) mention that public sector ought to provide the framework within

which private sector companies function. As tourism is an industry predominately

driven by the private sector, tourism development decisions by enterprises are

geared to function at a profit; therefore, government must establish clear

environmental guidelines (McIntoch et al., 1998). Furthermore, governments should

not only provide basic infrastructure such as roads, but also may own and operate

tourist ventures including airlines, hotels and travel companies. Thus, their role as

entrepreneur is established (Hall, 1998). Finally, governments can stimulate tourism

in three (3) ways: financially (e.g. providing low-interest loan), by sponsoring

research of the general benefit of the tourism industry and finally by marketing,

promotion and visitor servicing (Mill & Morrison, 1998).

Although, destination marketing organisations are usually state-controlled, it is often

noted that the private sector gets involved as well. It is argued that collaborations

between public and private organisations are beneficial for the future of destinations

(Bennett, 1999). Although, there is a difference among the interest that each one of

the sectors has, Buhalis (2000) claims that ‘initiatives at the local level facilitated by

both private and public sectors can improve the tourism product by investment in

resources, as well as the implementation of a comprehensive marketing strategy and

mix which supports the competitiveness of the destination’. Public-private sector

partnership arrangements in tourism should ultimately be evaluated by reference to

visitors’ criteria and industry support generated (Heeley, 2001).

9


2.4 Destination Marketing using ICTs and other forms of

TechnologyTourism destination marketing is a particularly challenging form of marketing. Due

to destination’s nature as a mix of tangible and intangible features, it is difficult to

control all the factors that have affect on its image and follow an explicit marketing

strategy (Bennett, 1999; Alford, 1998). However, destination’s competitiveness can

be enhanced, by taking advantage of new technologies (Buhalis, 2000).

It is generally accepted that Information Communication Technologies (I.C.T.s)

have been among the most profound developments for the travel and tourism

industry, since they have altered and enhanced the way of promoting destinations

(Sheldon, 1997; O’Connor, 1999; Middleton, 2001).

D.M.Os have realized the usefulness of I.C.Ts, as they allow destination

organisations to target prospective customers directly and affects greatly their role

and structure (Bennett, 1999). Therefore, Destination Management Systems

(D.M.S.s) and Destination Integrated Computerized Information Reservation

Management Systems (D.I.C.I.R.M.Ss) have been utilized to enhance their internal

organisational communications as well as their communication with partners and

visitors (Buhalis, 2003, 1998).

2.4.1. Destination Management Systems (D.M.S.)

Destination Management Systems (D.M.S.s) are described as the procedure of

collecting computerized, interactively accessible information about a destination

(Buhalis & Spada, 2000). Sheldon (1997, p.159) defines D.M.Ss or else Destination

Marketing Information Systems (D.M.I.S.) (Ritchie & Ritchie, 2002) as ‘a

comprehensive database of a destination’s facilities that can be accessed by travel

counsellors and/or travellers themselves, either in the destination or in the origin

region’. Hence, it can be indicated that a D.M.S. consists of a product database (i.e.

attractions, accommodation, travel information etc), a customer database (of those

using or who have used the database) and, a booking and reservation system

(Sussmann and Baker, 1996).

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The usage of a central computerized system by a destination organisation enables

the distribution of coherent information about features of destination and contributes

to the planning, management and marketing of regions as tourism entities or brands

(Buhalis, 2000; Ritchie & Ritchie, 2002). Thus, destination organisations are

enabled to enhance their position in the marketplace and increase their market share.

The application of D.M.Ss is beneficial for both suppliers and consumers as their

communication is becoming more direct and accurate (Sussmann & Baker, 1996).

Therefore, experts on the tourism field consider that public sector should regard

D.M.Ss as an important promotional tool, which can reform all aspects of

destination management and integrate all tourism stakeholders at the local level

(Archdale, 1994 as cited in Buhalis and Spada, 2000). Based on Sheldon (1997),

Table 2.2 summarises the products and services that can be distributed via

Destination Management Systems.

Table 2.2 Products and Services distributed via D.M.Ss

Destination Management Systems

Independent companies Products that are booked at time of use

Small and medium companies Products that do not necessarily have

payment procedures

Heterogeneous products Customized travel

Leisure travel products Independent travel by private automobile

Low price products

Domestic market

In addition, the utilization of D.M.Ss enhances competitiveness for small and

medium enterprises (S.M.T.Es), which do not obtain the funds and means to operate

their own reservation system or develop their own web presence. As a result,

S.M.T.Es have the opportunity to gain control, as tour operators are being

disintermediated, and reach wider markets (Buhalis and Spada, 2000).

11


However, the implementation of D.M.Ss contains the risk of failure, as it happens in

every I.T. application. According to Baker el al. (1996), the application of a D.M.S.

could be affected by the following factors:

1. IT Project Risk: Concerns the typical risk that is associated with any I.T.

project. Still, in the case of D.M.Ss there are some generalisations that are

used for all D.M.S. projects and eliminate the risk of failure.

2. The Regional Advantage Factor: The competitive advantage gained by a

D.M.S. for a destination depends on the perception of the elements that

constitute the national competitive advantage.

3. The Political Dimension: In case a D.M.S. is funded by the public sector, its

success or failure depends on the nature of corporate strategy adopted by

regional or national government.

Despite the risks of implementation, the conceptualisation and development of

Destination Management Systems contributed highly towards the maintenance of

destinations’ competitiveness. According to Buhalis (2003), D.M.Ss are evolving to

Destination Integrated Computerized Information Reservation Management Systems

(D.I.C.I.R.M.Ss). They are conceived ‘as an advanced D.M.S., digitizing the entire

tourism industry and integrating all aspects of its value chain’. The main difference

between the two systems is focusing on the strategic character of D.I.C.I.R.M.Ss, in

contrast to D.M.Ss that have mainly operational role.

2.4.2. Internet

The development of Internet has proved to be very important for travel and tourism

sector. Tourism has always been an information-intensive industry and Internet has

contributed highly in the provision of direct and accurate information. This is due to

the fact that the World Wide Web (W.W.W.) ‘operates as a global marketplace

accessible to the general public twenty-four hours a day, seven days a week’

(Middleton, 2001, p.158).

Tourism destination organisations have thus far highly used and benefited from

Internet, by developing web sites concerning the destination. As a result, they were

given the opportunity of stabilizing a coherent position in the marketplace and to

increase their share by communicating directly with actual and potential visitors

12


(Palmer and McCole, 2000). Furthermore, small and medium tourism enterprises

gained the ability to promote and advertise themselves via destinations’ web sites. In

any other case it would be difficult for them to take advantage of the Internet, as

usually they do not obtain the knowledge or funds to follow technological trends.

Accordingly, electronic Commerce (e-Commerce) evolved and gave the ability to

consumers to browse through websites of individual establishments and facilities

available at a destination and being accurately prepared for their trip (Palmer and

McCole, 2000).

2.5 ConclusionPollock (1996, as cited in Palmer, 2002) noted that ‘the distance between suppliers

and consumers is closing. It appears safe to suggest that the winning destinations

will be the ones that close the gap fastest’. Furthermore, Jefferson (1991) claims that

future traveller will be the child of the information technology age.

As it was stated throughout this chapter, destinations and technology are sharing a

significant bond. Traditional roles of destination organisations are changing and they

are expected to adjust in the new era. New channels of communication have been

developed among consumers and suppliers and more are being currently evolved.

Nowadays, Wireless Technology is becoming a trend and it is estimated to have a

huge impact on the tourism industry. Destination Organisations will have to decide

how effectively it can be used in order to remain competitive and enhance

destination’s image. However, the appropriate selection of the technologies available

will determine the level of success and performance.

13

Chapter 4: Methodology

Chapter 3: Wireless Technologies3.1 IntroductionThe meaning of mobility refers to the freedom of working and communicating

anywhere and any time. The rapid, worldwide growth of mobile telephone

subscribers, has established that mobile market continues to be extremely attractive

(Rappaport, 2001). Wireless technologies are becoming an important tool for the

provision of ‘the right service, at the right time, in the right location’ (Nokia.com,

2003a). In this chapter, are going to be presented the trends in technology that could

a destination could use and take advantage.

3.2 Definitions of Wireless TechnologyThere are three (3) identified types of networks using wireless technology: Personal,

Local and Wide Area Networks. Each one of those networks is built upon the

concepts of mobility and wireless communication. However, they use different types

of wireless technology as they facilitate different needs, according to covered area

and the required services. All three types are discussed in the following sections.

3.2.1 Wireless Personal Area Networks (W.P.A.N.s) - Bluetooth

As wireless technology has been developed through the years, electronic

manufactures have recognized the need for replacing the wires that connect devices

to one another.

Wireless Personal Area network (W.P.A.N.) is defined as a network, which enables

personal devices to autonomously inter-communicate and is applied in a relatively

small area. The W.P.A.N. focuses on the key issues of low power consumption,

small size and low cost (Toshiba, 2003; SITA, 2003; Zahariadis, 2003). .

Thus far, Bluetooth technology has been the most known application for this kind of

networks. Named after King Harald Bluetooth, the 10 th century Viking who united

Denmark and Norway, the Bluetooth standard (IEEE 802.15) aims to unify the

connectivity appliances within the personal workspace of an individual (Rappaport,

2002).

14


Bluetooth provides an ad-hoc approach for enabling various, appropriately equipped

devices to communicate with one another within an approximately 10 meter range

and gives them the ability to connect with the Internet (Rappaport, 2002; SITA,

2003). It uses low-power radio waves, allows speeds of up to 1 Mbps in 2.4 GHz

band and it does not require operation licence (Frary, 2003). As it was previously

stated, communication in Bluetooth standard is based on ad hoc networking.

Zahariadis (2003) mentions that ‘there is no base station or access point, but

mechanisms and messages for Bluetooth devices to discover each other and

establish point-to-point and point-to-multipoint communications links’. This

procedure is diagrammatically described in Figure 3.1. It is estimated that by 2005,

enterprise users will use Bluetooth as the standard method for linking devices,

replacing cables and infrared (Toshiba, 2003; SITA, 2003). Figure 3.1: Bluetooth scatternet architecture

(Source: Zahariadis, 2003)

3.2.2 Local Area Networks (L.A.N.s).

Prasad (2001) considers that mobility and potential cost savings are the driving

forces behind the introduction of Wireless Local Area Networks (W.L.A.N.). This is

due to the expansion of portable devices (laptops and P.D.A.s), which enhance

mobility and to the avoidance of buildings’ wiring and rewiring, which leads to the

reduction of cost.

a. The 802.11 Family

The first attempt for the development of Wireless Local Area Network (W.L.A.N.)

technology is dated back to the mid-1980s. Back then the first Radio Frequency

spectrum became available to the industry by the Federal Communications

15


Commission (F.C.C.). Till the early years of 1990s the growth of W.L.A.Ns was

relatively slow. However, nowadays, wireless technology is evolving rapidly. This is

due to the increased bandwidth, which became possible by the 802.11 standard

(Rappaport, 2001).

In 1990, the Institute of Electrical & Electronics Engineers (I.E.E.E.) has initiated a

project called ‘the 802.11 project’, in order to develop a standard enabling wireless

connectivity for fixed, portable and moving stations (devices) within a specific area.

In 1997, was standardized and approved the 802.11 international, interoperability

standard, encouraging thus wireless networking technology. Later, in 1999, I.E.E.E.

developed and ratified the 802.11a and 802.11b wireless networking communication

standards, thereby providing new user data rate capabilities. The organization that

certifies wireless networking components for interoperability is called the Wireless

Ethernet Compatibility Alliance (W.E.C.A.) (Prasad, 2001).

Consequently, it can be mentioned that the term 802.11 refers to a family of

specifications developed by the I.E.E.E. for wireless L.A.N. technology

(Anonymous, 2003a). Those specifications are:

802.11: applies to wireless LANs and provides 1 or 2 Megabits per second (Mbps)

transmission in the 2.4 GHz band using either Frequency Hopping Spread Spectrum

(F.H.S.S.) or Direct Sequence Spread Spectrum (D.S.S.S.).

802.11a: an extension to 802.11 that applies to wireless LANs. Despite its

designation, 802.11a is developed after 802.11b. It uses the 5-GHz frequency and

provides speed up to 54 Mbps in the 5GHz band. Although, its range is shorter at

higher data rates, it can support more bandwidth-intensive applications and more

users, as it obtains a higher bandwidth.

802.11b (also referred to as 802.11 High Rate or Wi-Fi): 802.11b was the

development of the original 802.11 standard, which took place in 1999, allowing

wireless functionality comparable to Ethernet. Theoretically, it uses only D.S.S.S.

and provides 11 Mbps transmission in the 2.4 GHz band, which is comparable to a

wired network. It is the most common version of wireless connectivity and is being

currently deployed in many public places, businesses and homes.

16

http://inews.webopedia.com/TERM/8/Wi_Fi.html


From all the above, it is concluded that 802.11a and 802.11b standards function in

different frequency bands and use different modulations. Thus, they do not

interoperate, but they can be used together in the same coverage area, as they do not

conflict with each other.

802.11g: similar to 802.11b, 802.11g operates in the 2.4 GHz frequency and it

provides more than 20 Mbps speed. It is compatible with 802.11b products and

supports ranges similar to 802.11a products, only at higher data rates. This version

was expected to be approved in June 2003 as a standard (cisco.com/go/iqmagazine).

b.Wi-Fi (802.11b)

The term Wireless Fidelity (Wi-Fi) indicates the number of the international

standard that specifies the technical requirements for the growth of Wireless L.A.Ns

(Zahariadis, 2003). As it was stated before, this standard called 802.11b is an

extension of the initial standard, the 802.11. Wi-Fi L.A.Ns operate in the 2.4GHz

band, theoretically enabling communication to a speed of 11Mbps and at range up to

100 meters (Lehr & McKnight, 2002). Basically the IEEE 802.1b was developed to

replace the wires on local area networks and to extend L.A.Ns infrastructure.

Furthermore, 802.11b networks enhance existing wired networks by providing

convenient access to network resources for people carrying wireless enabled

devices, such as laptops and handheld devices (Frary, 2003).

A wireless L.A.N. comprises of two types of equipment: a station, referring to any

portable device and an access point, which facilitates connectivity to the wired

network. As Access Point (A.P.) is defined the hardware device or the computer's

software, that intermediate among wireless devices and a wired L.A.N, allowing

connection among them (Anonymous, 2003a). The geographic location in which an

A.P. provides public wireless broadband network services via a W.L.A.N. is called

‘hotspot’.

The access point uses radio waves to transmit signals from the wired network to the

station. When the station receives the radio transmission, it is converted into data,

applicable to the portable device (www. cisco.com/go/iqmagazine). In this case, the

17


access point acts as a bridge among wireless and wired networks. The described

procedure is presented at Figure 3.1.

Figure 3.2: Wireless Local Area Network functionality

Still, devices within a W.L.A.N. are possible to be connected with ad hoc

configuration. At an ad hoc W.L.A.N, devices can share files without the use of an

access point. The figure 3.2 describes ad hoc W.L.A.N functionality.

Figure 3.3: Ad Hoc Wireless Local Area Network

(Source: Anonymous, 2003a)

(Source: Anonymous, 2003a)

18


c. 802.11 Evolution

The 802.11 is being constantly evolving. Apart from the upcoming 802.11g

standard, many more standards are being developed. Table 3.1 summarises the most

important future trends in wireless local area networking and presents their main

characteristics.

Table 3.1 In-Progress IEEE 802.11 Standardization efforts

Standard Description802.11d Task group works towards 802.11b versions at other frequencies,

applicable on countries where the 2.4 GHz band is not available.802.11e Quality of service (QoS) enhancements at the IEEE 802.11. These

enhancements will provide the quality required for services such as IP telephony and video distribution.

802.11f Recommended practices for multi-vendor Access Point (A.P.) interoperability via Inter-Access Point Protocol (IAPP) across distribution systems supporting IEEE 802.11 operation.

802.11h Spectrum and transmit power management extensions in the 5-GHz band for European operation. Objective is to make IEEE 802.11ah products compliant with European regulatory requirements.

802.11i Security improvements including new encryption and other enhancements.

802.11j Works towards IEEE 802.11a and HiperLAN2 inter-working.802.11m Proposed as an IEEE 802.11 maintenance task group. The group’s

job will be to maintain previously published amendments, like 802.11b, 802.11g, etc.

(Source: Anonymous, 2003a; Zahariadis, 2003)

3.2.3 Wireless Wide Area Networks (W.W.A.Ns)

As omnipresent computing grows, the third connection type - Wireless wide area

networks (W.A.N.s) – becomes critical. Wide Area Networks refers to connectivity

among devices that are within a wider area, compared to W.L.A.Ns. Unlike wireless

L.A.Ns, where connectivity is enabled via 802.11 family standards, wireless WANs

use mobile telecommunication networks, which provide wider geographic coverage.

A brief description of the way wireless W.A.Ns function is stated as follows: base

stations or mobile switches manage calls from cells. The mobile switches are

connected to databases that provide an interface between the wireless network and

the wired telephone network (hp.com, 2003).

19


The development of 3G networks promises data rates that are more than 100 times

the rate today's mobile networks employ. The speed increase has opened the way for

a host of applications for mobile phones and P.D.As, from streaming audio and

video to sophisticated real-time data manipulation such as passenger processing, in

flight and airport entertainment. The idea of accessing data anytime anywhere will

become reality (Toshiba, 2003; SITA, 2003).

Still, before the development of 3G networks there were several efforts made, in

order to enable wireless connectivity via mobile telecommunications networks. The

stages of evolution in mobile industry are illustrated as follows, based on Burns

(2000) and Cane (2001).

Stage 1: The first generation (1G) of mobile connection was developed in the mid

1980s until the early 1990s. It was based on analog technology and was made

possible by computers, which managed the allocation of radio scarce spectrum

within cells several kilometres wide. The development of 1st generation mobile

networks enabled only voice transmission.

Stage 2: The second generation (2G) kept the same cellular architecture but used

digital technology instead, which was cheaper, more efficient and easier to maintain.

This took place in the early 1990s and the standard that was widely used, was the

Global System for Mobile Telephony (G.S.M.), which allowed both the transmission

of voice and data at the speed of 9.6 Kilobits per second (Kbps). It was then when

the explosion of Short Message Service (S.M.S.) took place.

Stage 3: 2.5G emerged as an intermediate technology between G.S.M. and 3G,

offering enhanced capabilities of the G.S.M. platform. The successful application of

S.M.S. created the need of transmitting updated data, which led toward the

development of Wireless Application Protocol (W.A.P.) and General Pocket Radio

Service (G.P.R.S.).

Stage 4: The need for the development of improved mobile communication emerged

in the early 2001. 3G was evolved as a technology offering multimedia

transmission and Internet browsing at 2 Mbps. The platforms that are used are the

Universal Mobile Telecommunications System (U.M.T.S.) and the International

Mobile Telecommunication (IMT 2000).

20


In the following sections are discussed in detail the developed technologies which

provide connectivity within wireless W.A.Ns. Namely those technologies are:

Wireless Application Protocol (W.A.P.), General Packet Radio System (G.P.R.S.)

and 3G networks.

a. Wireless Application Protocol (W.A.P.)

Wireless Application Protocol (W.A.P.) is a universal open standard, enabling

Internet connectivity, equivalent content and other advanced services to mobile

phones and other wireless devices (Komninos & Honary, 2001; Ralph & Shephard,

2001). It is supported by 2.5G networks and allows standard web pages to be viewed

in a compacted format, designed specially for small, portable hand held wireless

devices (Rappaport, 2002).

Although W.A.P. was a great development for the mobile industry, thus far had

limited usage and acceptance by consumers, mainly due to the following reasons:

Low bandwidth.

Low resolution monochrome displays.

Dropped calls and other quality of service issues.

Low device processing power.

Security issues.

High cost.

Limited infrastructure.

(Ralph & Shephard, 2001; Barnes, 2002).

Although in most countries, W.A.P. was greatly sold, the expectations of consumers

have not been met. This happened because it was not clarified from the beginning

that W.A.P. is not a replacement of the wired Internet. On the contrary, ‘it involves

an important exchange of being a luxury service and succeeding in the provision of

data services. W.A.P. is a bundle of technologies and protocols, which on its own

does not deliver value to the end-user’ (Barnes, 2002).

b. General Packet Radio System (G.P.R.S.)

The introduction of General Packet Radio System (G.P.R.S.) is one of the key steps

in the evolution of today’s G.S.M. network towards 3G. G.P.R.S. increases rates of

21


data, from 9.6 Kbps to 115 Kbps and allows network operators to implement an IP-

based architecture for data applications. Those applications will continue to be used

and further expanded to 3G services for integrated voice and data applications

(Prasad, 2001; Cisco, 2000).

One of the most important benefits of G.P.R.S. is that it occupies radio resources

only when there is data to send and it diminishes dependence on traditional ‘circuit-

switched’ network components. Therefore, it becomes attractive to users as charges

are made per data sent and received and not per time (Prasad, 2001; Cisco.com,

2000).

In general terms, applications enabled by G.P.R.S can be separated into two (2) core

categories: corporate and consumer. These include:

• Communications—E-mail; fax; unified messaging; intranet/Internet access

• Value-added services (V.A.S.)—Information services; games

• E-commerce—Retail; ticket purchasing; banking; financial trading

• Location-based applications—Navigation; traffic conditions; airline/rail schedules;

location finder

• Vertical applications—Freight delivery; fleet management; sales-force automation

• Advertising

(Source: ARC Group as cited in Cisco.com, 2000).

Furthermore, G.P.R.S. facilitates a variety of new and unique services to the mobile

wireless subscriber. Mobility is one of them and refers to the ability of retaining

constant voice and data communications while on the move. The second is

immediacy, which concerns the ability of customers to obtain connectivity when

needed, regardless of location and without a lengthy login session. Finally,

localization is enhanced allowing consumers to find information relevant to their

current location. The combination of these characteristics provides a wide spectrum

of possible applications that can be offered to mobile subscribers (Cisco.com, 2000).

c. 3 rd Generation Mobile Networks

As it was indicated before, the development of 3G mobile networks is the

consequent development of 1G and 2G networks. It offers higher transmission speed

22


compared to the other two but almost equal or even less transference capacity

compared to fixed-line or wireless networks (Hultkrantz, 2002).

The 3rd generation mobile system was designated by Advanced Communications

Technologies and Services (A.C.T.S.)1and is considered to be one of its most

important activities. In Europe is called Universal Mobile Telecommunication

System (U.M.T.S.) and it was developed within a research program concerning

advanced communications in Europe. The program was established for supporting

upcoming services, facilities and applications, expected by customers (Prasad,

2001). On that account, attention was given in designing U.M.T.S in such a way so

that it would be perceived as a broadband service evolution of second-generation

technologies, ensuring at the same time that a competitive service is provided in a

multi-operator environment.

In order for 3G services to be offered globally, ‘spectrum bands need to be identified

as relatively large blocks, if possible contiguous to the core band. To facilitate

roaming and the successful development of a mass market, worldwide

harmonization of the frequencies is imperative’ (Laiho et al., 2002).

The benefits that arise by the implementation of U.M.T.S. will include high-quality

wireless multimedia services through a convergent network of cellular and satellite

components (Lehr & McKnight, 2002). It will deliver information directly to users

and provide to them accessibility to new and innovative services, as well as

applications beyond those provided by current second-generation systems.

Personalized mobile communications will be available to the mass market in spite of

location, network or terminal (Zahariadis, 2003). At Figure 3.3 is presented the

services and applications that will become available by the implementation of

U.M.T.S.

1 According to Prasad (2001), the Advanced Communications Technologies and Services (ACTS) program was funded by the European Union in 1995 till 1998, for the conduction of research and development projects. Thus the EU provided opportunities for further development of mobile and personal communications with the participation of academia and industry (operators, manufacturers and service providers).

23


Concluding, Prasad (2001, p.4) states that ‘U.M.T.S. represents a new generation of

mobile communications systems at a time where personal services will be based on

the combination of wireless/mobile and fixed services providing end-to-end service

to the user’.

Figure 3.4: U.M.T.S. services and applications

(Source: Prasad, 2001)

3.2.4 Technologies Comparisons

a. 3G vs. G.P.R.S.

3G technology and G.P.R.S. do not differ in their conception. Both technologies

provide the capability of wireless connectivity. However, G.P.R.S. is generally

perceived as the stepping-stone towards 3G networks (Anonymous, 2003b).

Their main difference focuses on the speed that each one can provide. G.P.R.S. has a

theoretical capability of maximum 114 Kbps, while 3G will offer more bandwidth

and promises speeds up to 2Mbps, remaining still a digital-based technology like

G.S.M. and G.P.R.S. (Frary, 2003).

3G requires time to be rolled-out and become widely accepted and used. Until then,

G.P.R.S. is available nowadays to satisfy the need of accessing data anywhere and to

enhance business applications (Anonymous, 2003b).

UMTS services and applications

Information service

Office information Financial servicesCommunication

Special Services Public servicesTelemetry services

EducationLeisure

24


b. 3G Networks vs. Wireless LANs.

The development of both 3G networks and Wireless L.A.Ns arose from the need to

have wireless access to the Internet. Both kinds of networks provide wireless

connectivity to the Internet, but each one has its own architecture and standards,

enabling them with different capabilities. 3G is mostly phone-based, while WLAN

is a purely data-driven creation. Therefore, are not considered as fully substitutes

technologies (mformobile, 12/04/2001; Lehr & McKnight, 2002).

Von Haller Groenbaek (2002) declares that ‘wireless fidelity is not mobile in the

sense that it is not and will probably never be serving people in motion’. Wireless

LANs have limited area coverage, as they are offered at stationary hot-spots.

Roaming abilities for Wi-Fi have just started to be developed and a lot of effort is

still required for the establishment of proper agreement among providers (Frary,

2003). On that account, they are not expected to offer wide and omnipresent

coverage like mobile networks do.

On the contrary, 3G networks are estimated to enable continuous high-speed data

transmission for subscribers while they are on the move (Von Haller Groenbaek,

2002). The infrastructure is almost unified across countries and this is an advantage

as they provide wider area coverage. However, 3G networks are more expensive for

the end-user and relatively slow, while access via wireless LANs remains more cost

effective and efficient way in data transmission (Anonymous, 2003c).

Table 3.2: Comparisons: 3G vs. Wi-Fi

3G Wi-Fi

Standard WCDMA, CDMA 2000 IEEE 802.11

Max Speed 2 Mbps 54 Mbps

Operations Cell phone companies Individuals, WISP

License Yes No

Coverage Area Several km About 100m

Advantages Range, mobility Speed, Cheap

Disadvantages Relatively slow, Expensive Short range

(Source: Adopted from Ikemefuna, 2003)

25


Despite all the above mentioned differences, it is a true fact that they are both

wireless, access technologies that offer broadband data service (Lehr & McKnight,

2002). Therefore, the key challenge of the future will be the integration of WLANs

and 3G networks that will enable consumers to enjoy constant, uninterrupted

network access.

The most likely scenario predicts that Wi-Fi will be integrated into 3G networks. If

the distinct advantages that each one of these technologies has are combined, then

‘higher quality services under disparate conditions will be provided’ (Lehr &

McKnight, 2002).

The integration of 3G and Wi-Fi networks will assist the provision of:

Good voice telephony

Local "hot spot" connectivity in high demand areas (airports, hotels)

Enhancement of existing Wi-Fi facilities

The hotspot will overcome capacity limitations of 3G, while 3G mobile billing and

wide-are network management will evolve into a platform for mass wireless access

(Lehr & McKnight, 2002).

It is estimated, that in the future wireless reality will include multiple and diverse

wireless access technologies. Moreover, the two dominant technologies will be

integrated in a way that the telecommunications industry will be utterly reformed.

More specifically, it is expected that vertically-integrated service providers will

integrate WiFi or other WLAN technologies into their 3G or wire-line infrastructure

(Lehr & McKnight, 2002). Nevertheless, Wi-Fi and 3G will co-exist and compete to

the benefit of users (Von Haller Groenbaek, 2002).

In Figure 3.5 is described the predicted scenario of wireless-mobile

communications.

Figure 3.5: Foreseen wireless/mobile communications scenario.

26


(Source: Zahariadis, 2003)

3.2.5 Location Based Services (L.B.S.)

The idea for offering services concerning a certain location was based on the

identified need of consumers to have access on information digitally, via their

portable electronic devices.

Prior to contemporary applications known as Location-based services, the Advanced

Traveller Information System (A.T.I.S.) was developed and was one of the major

components areas of Intelligent Transportation Systems (I.T.S.). The driving force

of A.T.I.S. was to provide travellers with relevant information, concerning highway

congestion, alternative routes, navigation, location, traffic conditions, weather,

emergency facilities and points of attraction (Nygard, 1995).

Nowadays, location-based services are enabling a variety of new applications. They

are offered either by the mobile operator or other third-party service provider that

utilises the available location information (Nokia.com, 2003a). Laiho et al. (2002)

estimate that every provider in the mobile industry will proceed with his own

requirement; as a result, many services will exist at the same time in different

environments and with different resolutions.

The provision of Location-based services proves beneficial for both consumers and

suppliers. For users it is very useful to receive information about their current

location that is tailored to their needs. Especially, if the application is easy to access

and user-friendly, consumers gain the ability to save time and enhance personal

safety. For mobile operators and other service providers, L.B.Ss give them the

27


opportunity to identify new business segments and expand on them (Ericsson,

2003).

Although the usage and effectiveness of L.B.Ss have been proved by many studies,

the European Commission has expressed worries concerning privacy. It was stated

that the possibility of processing specific location data ‘should not lead to a

situation where users are under permanent surveillance with no means to protect

their privacy other than not using mobile communications services at all’ (Worthy

& Graham, 2002).

Consequently the following restrictions were developed, in order for privacy to be

certified:

Location data may only be processed to the extent and for the duration

necessary for the provision of a ‘value-added service – effectively, this

means that once the service provider has sent the text message telling you

that you are about to pass your favourite designer store, the relevant location

data should be erased or anonymised.

Users and subscribers must continue be informed, before giving their

consent, of the type of location data other than traffic data which will be

processed, of the purposes and duration of processing and whether the data

will be transmitted to a third party for the purpose of providing the ‘value-

added service’.

Users or subscribers must continue to have the possibility of switching off or

blocking the use of location data for this purpose, either case by case or

across the board.

Processing of location data, (other than traffic data), must be restricted to

persons acting on the authority of the electronic communications network or

service provider or the third party providing the ‘value-added service’.

(Source: European Commission, 2003)

Still, Location-based services allow mobile users to receive services based on their

geographic location or position. Although there are a number of mobile positioning

systems in use throughout the world today, they lack interoperability (Ericsson.com

-archive, 2003). Furthermore, they will provide the ability to link, push or pull

28


information services according to user’s location. Examples include hotel and

restaurant finders, roadside assistance, and city-specific news and information. This

technology also has vertical applications such as workforce management and vehicle

tracking (Cisco.com, 2003).

3.3 Portable DevicesIn order for wireless revolution to succeed, mobile devices have a crucial role

(Toshiba, 2003). A challenging aspect of mobile reality is to equip users with a

range of mobile devices enabled with wireless technologies. Badrinath (1996)

mentions, that wireless connectivity enables handheld and other portable devices to

access information anywhere, anytime.

3.3.1 Mobile Phones

Middleton (2001, p.161) declares: ‘mobile phones are part of the infrastructure that

supports a twenty-four hour society’. Contemporary mobile phones have overcome

their simple usage of voice communication. Mobile manufactures have added on

them features, developed new software and languages that upgraded them to a

valuable tool (Nokia.com, 2003b; Anonymous, 2003b). The majority of mobile

phones available on the market obtain colour screens, digital cameras, Multimedia

Message Services (M.M.S.), Bluetooth technology that enables them connecting

wirelessly with other compatible devices and so on (Siemens.com, 2003;

Nokia.com, 2003c). The new generation mobile phones have also capabilities of

accessing the Internet wirelessly via W.A.P. or nowadays, via G.P.R.S. and 3G

networks. Smart phones are those mobile devices that can combine the benefits of a

P.D.A. and a mobile telephone, as well as accessories for mobile telephones such as

MP3 players (Siemens.com, 2003).

3.3.2 Personal Digital Assistants (P.D.As)

The term Personal Digital Assistants (P.D.As) includes ‘any small mobile hand-held

device that provides computing and information storage and retrieval capabilities

for personal or business use, often, for keeping schedule calendars and address

book information handy’ (searchCIO.com, 2003). According to Kumar & Zahn

(2003) their use as agendas was the motive for their development.

29


P.D.As belong to the handheld devices family. They differ according to battery life,

screen size and resolution as well as ease of use. This feature should allow the

potential use of invest less time in learning applications and spend more time spent

in direct use (Naylor, 2001).

Currently, personal digital assistants are considered the devices of the future,

especially when they are combined with a mobile telephone, as it was stated before.

They are equipped with wireless capabilities and therefore, they will become the

supporting devices for the development of location-based services. Furthermore,

they will enhance the usage of wireless Internet, as they have storage capabilities,

bigger screen size – compared to mobile phones - and they tend to be user-friendlier.

3.3.3 Laptops

Laptop computers were developed based on the need of portability (Straker et al.,

1997). When laptop and notebook computers were first introduced in the market,

they contributed in the revitalization of the already maturing P.C. market. They

became the reason for the increase of P.Cs total market’s size, which grew rapidly.

The increased mobility these devices provided became more evident with the

appearance of notebook computers, which are smaller and lighter than laptops.

While laptops were highly innovative, the notebook computers are more functional

(size, weight, true portability, resume function) and thus represent a technological

innovation compared to the laptop (Abetti, 1997).

Nowadays, computer manufactures update laptops and notebooks, enabling them

with wireless capabilities. Therefore, they become one of the key devices enhancing

wireless revolution. Besides it was them that first created the need of mobility.

3.4 Mobile Commerce

30


E-commerce (electronic commerce) is a term that refers to commercial activity on

the Internet. Accordingly, m-commerce (mobile commerce) refers to the

consumption of Internet goods or services, via a wireless networks and devices.

M-commerce involves a number of different stakeholders, all aiming in the

provision of value-adding activities for consumers. According to Barnes (2002), the

basic model of m-commerce consists of six core processes divided in two main

areas. As is presented at figure 3.4, the two areas are infrastructure and services, and

content.

Figure 3.6: The m-commerce value chain.

(Source: Adopted from Barnes, 2002)

The first area regards the technology that is required for the provision of goods and

services via wireless links. Mobile transport, mobile services and delivery support,

as well as mobile interface and application are the three fields that should be given

attention. Furthermore, content is an important area as well, as it refers to the type of

information that can be delivered via mobile networks. Therefore, the creation and

packaging of the content as well as the markets to which the services will apply are

the main focus areas (Barnes, 2002).

31


Korhonen (2001) believes that any product or service is available via the fixed

Internet, should also be available via the wireless Internet. However, the mobile

nature of wireless terminals provides further opportunities. The developing wireless

technologies, give the ability of informing immediately the consumer about any

products or services available at a specific location. This feature is an advantage for

businesses that offer m-commerce capabilities, as they will gain operational

efficiency and customer satisfaction (Kumar & Zahn, 2003). Issues like payments

via a mobile phone or security are the main concerns for the development of m-

commerce. Mobile operators have already started focusing towards those problems

and is estimated that soon there will be a coherent solution.

As mobility is presently becoming a trend mobile commerce is not far away from

creating new trading opportunities.

3.5 Current Applications of Wireless Technologies in Tourism Wireless technologies have already started to be implemented in several fields of the

tourism sector. Hotspots are being built in hotels and airports, providing wireless

connectivity to guests and passengers. Furthermore, in some countries location-

based services are available, but they are still being further improved.

There are a number of airline companies like British Airways and Lufthansa, that

offer Internet access during flights, as research has shown that the majority of

business travellers take laptops on board and would be please to have access on their

business e-mail accounts and files (m-Travel, 17/06/2002; m-Travel, 15/01/2003).

In addition, wireless LANs are deployed in airports, like Copenhagen Airport, to

enforce check-in and security systems, through voiceprint verification along with a

barcode-based boarding pass linked to a passenger’s photo ID (m-Travel,

09/11/2001).

Accordingly, major hotel chains are investing in wireless LANs, in order to provide

to their customers high speed Internet access by the most cost effective for them

way. It has been proved that the implementation of a wireless LAN is less expensive

than rewiring the building. Furthermore, hotels use wireless technology to upgrade

their routine operations. (m-Travel.com, 12/11/01). Fairmont Hotels and Resorts,

32


Marriott hotels and others are good examples of pioneer establishments utilising

wireless technology.

3.6 ConclusionRappaport (2002) states ‘from mobile telephone, to broadband wireless access, to

inside buildings and across campuses, it is clear that wireless communications will

become a ubiquitous means of transport for information in the 21st century.’

As to trends in services, it will become of highly importance to deliver the right

information at the right time and to the right place (Laiho et al., 2002). The prospect

of ‘always on’ packet based services delivered over 2.5G and 3G networks such as

G.P.R.S. and 3G will enhance the user experience in the way content is delivered

over the next generation infrastructure provided by the mobile operator (Ralph &

Shephard, 2001).

For a tourist travelling abroad, accessibility will depend on roaming agreements

between mobile network providers, i.e. whether the specific network in the foreign

country that has a specific service can be accessed from a handset connected to a

specific network in the home country. Still, the application of wireless technology in

tourism may raise issues, like billing, positioning, privacy and compatibility among

networks that will seriously affect the implementation of services. Consequently,

they should be carefully examined, as they may prevent accessibility to services

(Hultkrantz, 2002).

33



4.1 IntroductionThis chapter describes the research design applied for the conduction of this study.

The chapter examines the purpose of the study, the type of investigation, as well as

the design of the sample, the data collection methods and the data analysis process.

Furthermore, justification of each choice made regarding the mentioned issues are

included, in order for the research design to be supported.

4.2 Research Design Frankfort-Nachmias & Nachmias (1996, p.98) describe research design as ‘a logical

model of proof that allows the researcher to draw inferences concerning causal

relations among the variables under investigation’. They also mention that in

research design is also defined the domain of generalizability, which regards the

possibility of generalize the results of this research to different situations or larger

population. According to Sekaran (2003), the various issues involved in the research

design concern the purpose of the study, the type of investigation, the type of the

sample, which will be used, the methods by which the required data will be

collected, as well as the process that will be followed for the analysis.

4.2.1 The Purpose of the Study

As it was shown in the literature review, technology is evolving rapidly and affects

tourism in many ways. The application of wireless technologies regarding tourism

destinations is currently being developed and in the near future will be a valuable

tool for their infrastructure and the followed marketing strategies. However, there is

not sufficient evidence yet, about the procedures that have to be followed in order

for wireless technology to be applied.

Therefore, this study aims to investigate the following objectives:

to identify the stakeholders in a destination that should collaborate in order

for visitors to receive accurate and current information at their mobile device

regarding the destination, before and during the trip

34


to examine the role of each stakeholder in the process, as well as which

should be the initiator of the effort, in order for the information to be valid

to estimate the expected effectiveness (advantages and disadvantages) of

wireless technology in terms of the destinations’ competitiveness, as this is

reflected in the perceptions of the stakeholders

to identify the success factors for the application of wireless technology

to examine potential business models

4.2.2 The Type of Investigation

As it was mentioned previously, the main purpose of this study is to investigate a

specific area of technology and its integration in tourism destinations management;

also to discover opinions that apply to the specific field. Therefore, the type of

investigation could be preferably characterized as qualitative and not quantitative

(Berg, 1989). Gordon and Langmaid (1988, p.3) define ‘qualitative research is best

used for problems where the results will increase understanding, expand knowledge,

clarify the real issues, generate hypotheses, identify a range of behaviour, explore

and explain consumer motivations, attitudes and behaviour, identify distinct

behavioural groups, provide input to a future stage of research or development’.

On the other hand, quantitative researches provide statistical and numerical

measurement (Gordon and Langmaid, 1988). Punch (2000) simplifies the difference

between the two types of research by saying that in quantitative research data is in

the form of numbers, while in the case of qualitative it has no numerical nature.

Qualitative refers to the meaning of data, whereas quantitative refers to the way it is

measured (Dabbs, 1981 as cited in Van Maanen ., 1982; Kvale, 1996).

Furthermore, as there is no prior research done concerning this subject in discussion,

the type of the study is exploratory. Sekaran (2000; 2003) states that exploratory

studies are undertaken to better comprehend the nature of the problem since very

few studies might have been conducted in that area and more information is needed

for the development of a viable theoretical framework. Marshall (1999) mentions

that a study is characterized as exploratory when little-understood phenomena are to

35


be investigated or in order important variables to be identified or to generate

hypotheses for further research.

For all these reasons, the type of investigation for the particular project is qualitative

as well as exploratory, and the data collection methods will be further discussed.

4.3 Data CollectionIn order for the required information to be collected, both secondary and primary

sources were approached.

4.3.1 Secondary Data

Secondary data is information collected by others for purposes, which can be

different than those of the researcher. It is a synthesis of published and unpublished

documents related to the current study and it is of highly importance, as it comprises

the logical framework of the research. (Sekaran, 2003; Marshall, 1999; Fink, 1998).

The collection of secondary data has both advantages and disadvantages (Ghaury et

al.,1995). One of the foremost advantages of using secondary data is that it helps the

researcher formulate and understand better the research problem, broadening at the

same time the base for scientific conclusions to be drawn. Nevertheless, it should be

taken under consideration that other researchers, organization or government

departments for studies with different objectives and purposes collected the data;

therefore, it might not be suitable for the current research (Ghauri et al., 1995;

Clarke, 1999).

For the purpose of this study, the collected secondary data included: textbooks,

academic articles and journals related to destination management and marketing,

wireless networks, 3G mobiles and networks. Furthermore, conference papers were

used, especially from the ENTER and Eyefortravel proceedings, papers from

research organizations of the European Union, and also press releases from

companies related to the subject. Also, a number of online resources were used for

the literature review, like www.MforMobile.com, www.M-travel.com,

www.primediabusiness.com, www.bbctechnology.co.uk, www.m-commerce.com

and web-sites of companies and organisations related to the subject.

36

http://www.m-commerce.com/

http://www.bbctechnology.co.uk/

http://www.primediabusiness.com/

http://www.M-travel.com/

http://www.MforMobile.com/


However, the information gathered from the above mentioned sources was

inadequate for the subject in examination, as they were referring on destination

marketing in general or on various applications of wireless technology in the tourism

sector. There was little reference to the use of wireless technology focusing on the

effective management of the destination, from the suppliers’ point of view. Thus, the

need for the conduction of the exploratory research was urged in order the objectives

of the study to be met.

4.3.2 Primary Data

Primary data is the one gathered directly from the researcher, when secondary data

is not available or is unable to contribute meeting research objectives (Sekaran,

2003; Ghauri et al., 1995). According to Clarke (1999), the collection of primary

data involves the use of research instruments, such as questionnaires and interview

schedules that have been constructed exclusively for the purposes of a specific

study. For the purposes of this dissertation, primary data was collected by in-depth

interviews.

4.3.2.1 In-depth Interviewing

Berg (1989) and Oppenheim (1992) refer to interviews as an effective method of

collecting information for certain types of research question, particularly when

investigator is interested in understanding the perceptions of participants.

According to Gerson and Horowitz (2002), interviewing depends on developing a

research design from general, empirical and theoretical concerns. Based on these

conditions, the interview schedule was built up, in order for critical factors and

outcomes to be explored.

Interviewing was considered the most appropriate way to obtain perceptions,

attitudes and beliefs, regarding the use of wireless technology for destination

management. Moreover, the same method was deployed to identify key stakeholders

that should have an active role in the procedure of delivering information wirelessly

to visitors. The use of open-ended questions encouraged the respondents to answer

37


freely according to their knowledge and beliefs regarding the subject (Ghauri et al.,

1995; Gordon & Langmaid, 1988; Frankfort-Nachmias and Nachmias, 1996).

a. Types of Interviews

In general terms, there is a distinction made between three basic types of interview

format: the structured or standardized interview, the semi-structured or semi-

standardized interview and the unstructured or un-standardized interview (Denzin,

as cited in Clarke in 1999).

According to Sekaran (2003) and Berg (1989), structured interviews are conducted,

when the required information is known in advance and a formally prepared

schedule of interview questions is utilized. On the contrary, in unstructured

interviews the researcher does not have in advance prepared a planned sequence of

questions, aiming for preliminary issues to be arose (Sekaran, 2003). Semi-

structured interviews can be referred as to be in between of the other two discussed

types of interviews. This type of interview involves the implementation of

predetermined questions, which are typically asked at each interviewee

systematically and consistently; however, the interviewer is allowed to ask questions

beyond the standardized ones (Berg, 1989).

The main differences among a semi-structured interview and an unstructured

involve the topic and issues to be covered, sample size, people to be interviewed,

and questions to be asked, which in the first case are determined beforehand (Ghauri

et al., 1995).

Semi-structured interviews were used for this study. Preset questions were

distributed in advance to the participants, allowing them to familiarize with the topic

and expressing their personal views and estimations.

b. Methods of Interviews conduction

According to Sekaran (2003) there are three methods for an interview to be held:

face-to-face, via telephone and the most recent method is via Internet. The choice

for the most suitable method of interviewing depends on the issues involved, the

duration of the interview, the convenience of interviewer and interviewees, as well

38


as the geographical area which will be covered by the survey and the available

budget for its completion (Stouthamer-Loeber, 1995; Denscombe, 1998). All three

methods were available to the participants, so that they could choose whichever was

more appropriate to them. A voice-recording device was used upon permission in all

telephone and face-to-face interviews, in order for the researcher to analyze them

properly. In order for the interviewer to be concentrated and to interact promptly

with the interviewees, the method of notes taking was not used (Patton, 1990).

The followed procedure for the conduction of the interviews included initially a

letter sent by e-mail to all candidate interviewees (Appendix A). The letter was

adjusted according to each interviewee profile. By this way, they were introduced to

the study’s objectives and the necessity of their participation was justified. Once a

participant stated his/her intention to contribute to the study, the researcher sent an

e-mail expressing her gratitude for responding, as well as informing that the

questions would be sent in advance. Accordingly the interview’s questionnaire was

sent at least two days before the scheduled date, in order for the interviewees to have

time familiarizing with the subject. A reminder letter followed on July 10 th notifying

about primary’s research due date which was initially July 18th. However, one

week’s extension was given in order for three more experts to participate, as their

experience and knowledge was considered important for the study.

A sample (as discussed in detail at section 4.3.3) of 20 interviews was appraised as

sufficient for the research. Forty-one contacts were made by e-mail and 28

interviews were finally achieved (Table 4.1). The sample was chosen to include

interviewees who would be informed, judging by their particular skills on the

research area. Most of the interviewees were based in United Kingdom, as the

companies or the organizations they represented are in the specific geographical

area. However, there were included participants who are placed in other European

countries; they were chosen based on their international exposure and their expertise

on the field. Therefore their contribution to the study was highly estimated. The

interviews were conducted in a period of four weeks, from June 23rd till July 25th.

39


Table 4.1 Number of In-dept Interviews

Type of Company or Organization Targeted Achieved PercentageMobile Network Operators 3 2 67%Map and Guide Publishing Companies 6 8 133%Destination Organisations (D.M.O.s, N.T.O.s etc) 12 5 42%Tourism Intermediaries 5 1 20%Experts 6 5 83%Mobile Device Manufactures 2 2 100%D.M.S.s Companies and other Software Providers. 7 5 71%

Total 41 28 Response Rate 68%

The interviews were mainly held via the telephone, as the majority of the

participants considered it was the most convenient way. Still, there were six face-to-

face meetings conducted, while four interviews were held via Internet (Table 4.2).

Each one of the telephone interviews and those via Internet lasted approximately 25

minutes, while the minimum duration of a face-to-face interview was 45 minutes.

Table 4.2 Type of In-dept Interviews

c. Instrument’s Evaluation

The instrument (Appendix B) was developed from the literature review with the aim

to cover the main research objectives. Most of the questions were open-ended,

which are extensively used in this type of research, as they give freedom to

respondents to answer in their own terms without being imposed by ‘closed’

questions (Jones, 1985). However, three of the questions were put in Likert scale

format in order to examine how strongly the participants agreed or disagreed with

the statements that followed (Sekaran, 2003). Its structure followed a logical order

based on the objectives of the study. On that account, the first five questions were

referring to the stakeholders, from both the private and public sector, which should

participate in the procedure and the estimated role that each one should have.

Following, the next three questions were exploring the target market, which would

40


initially adopt the new technology, as well as its effectiveness as a distribution

channel and marketing tool for the destinations. Question 9 was a rating scale

question and it aimed to explore the factors that will determine the success of

wireless applications and their importance. The following questions involved the

limitations and key challenges that are estimated to be confronted. On the other

hand, question 12 attempted to identify the benefits that will arise from the new

services for the destination; in addition a question regarding m-commerce and its

advantages was included. Continuing, the next two questions were referring to

existing applications at destinations and their effectiveness to their image. In the

final question, the interviewees were asked to evaluate the potential of a destination-

originated application.

On account of the fact that the interviews were semi-structured, there were some

additional questions asked to some participants, following the discussion; similarly

in some cases questions were rephrased or passed over.

d. Objectivity of Interviews

Clarke (1999) claims that there is not only one right way of conducting an interview.

Significant role in an interview have the personal characteristics of the interviewer,

the context of the evaluation, as well as the interviewee’s needs and expertise. As a

consequence of the human interaction inherent in the interview situation, qualitative

research interviews are accused of lacking objectivity. Kvale (1996, p.64) states, that

‘the objectivity of the knowledge produced by the interview interaction must be

discussed with specific respect to the different conceptions of objectivity and the

topic of the concrete inquiry’. Therefore, three conceptions of objectivity are being

developed: as freedom from bias, which refers to reliable knowledge, checked and

controlled, undistorted by personal bias and prejudice; as intersubjective knowledge,

where scientific data must be testable and reproducible; and as reflecting the nature

of the object, which refers to the real nature of the object studied. Hence, the

objectivity of interviews ‘depends on its relation to the nature of the object studied

and it involves a theoretical understanding of the content matter investigated’

(Kvale, 1996, p.65).

4.3.2.2 Validity and Reliability of Primary research

41


The main concern of a researcher is to ensure that the results of the research are

accurate and applicable. Therefore, once the instrument used for the conduction of

the research is ready, then the reliability and validity of the measures are established

(Sekaran, 2003).

According to Finn et al. (2000), reliability is easier to describe. It regards the

consistency of the results obtained from the instrument used in the research.

Reliability is achieved when the same research process is repeated and reproduces

results within stated confidence limits.

On the other hand, validity represents ‘the extent to which an instrument measures

what it intended to measure’ (North et al., 1963, p.41). There is a distinction made

among ‘internal’ and ‘external’ validity. Internal validity refers to whether the

hypothesised cause produces the given effect in the research, while external regards

the extent to which the results of the research can be generalised (Finn et al., 2000).

4.4 Sampling DesignA definition given by Sekaran (2000) describes sampling as the process of selecting

a sufficient number and the right type of elements for study from a certain

population. As population is defined, the entire group of elements that the researcher

is interested to investigate. An element on the other hand, is a single member of the

population (Gordon and Langmaid, 1988; Jankowicz, 1991).

Consequently, sample is defined as a portion or subset of the population, the size of

which is determined by the type and objective of the study, as well as time and

financial constraints (Kvale, 1996; Gordon and Langmaid, 1988; Fink, 1998).

Sampling therefore is the method of drawing the sample and it is an important part

of a research as it allows to the researcher to generalize findings, as it is impossible

to examine the whole population (Frankfort-Nachmias & Nachmias, 1996; Kvale,

1996; Ghauri et al., 1995).

Sampling is divided into two main categories: probability and non-probability. In

probability sampling, the elements of the population have a definite chance, but not

42


necessarily equal, of being included to the sample. On the contrary, in non-

probability sampling, the odds that a particular element will be included in the

sample are unknown (Ghauri et al., 1995; Finn et al., 2000).

For this research non-probability sampling was used as the chosen population is

specific destinations, which have Destination Management Organizations (D.M.Os)

that use any form of technology and it is likely to use wireless applications in the

near future. On account of the fact that there are destinations that do not have

D.M.Os, the findings from the study cannot be confidently generalized. (Sekaran,

2003). Furthermore, in the sample were included people from companies or

organizations which obtain the technology in request as well as experts and

academics from the tourism sector who specialize in the integration of technology in

destination management; hence their contribution to the study was considered

significant. Consequently, the required information was collected from specific

people who could provide it, either because they are the only ones who obtain it, or

meet the criteria set by the researcher. Therefore, the sampling was also purposive as

well as judgmental as the chosen subjects were representative to the population

(Clark et al., 1998; Oppenheim, 1992).

For the purpose of this study, people involved in the procedure of delivering

accurate and up-to-date information concerning the destination using wireless

applications were chosen in order for the study’s objectives to be met. As it was

stated in section 4.3.2.1, forty-one (41) people were targeted; finally, twenty-eight

(28) were those who agreed to participate in the research. The equal percentage of

participation is 68%, which is considered sufficient for the validity of the results. At

this point it should be mentioned that, the identified categories that took part were a

result of a web survey, conducted in the begging of the study. The Chart 4.1 shows

the division of the sample according to the different types of companies and

organizations, which were selected for the conduction of primary research.

Chart 4.1 Divisions of Participants

43


7%

15%

29%

12%

15%

5%

17%

Moblie NetworkOperators

Map and GuidePublishing Companies

DestinationOrganizations (DMOs,NTOs etc)

Tourism Intermediaries

Experts

Mobile DeviceManufacturers

DMSs Companies andother Software Providers

4.5 Pilot StudyThe pilot test is a useful tool for researchers, as it helps them to check the data

collection methods and uncover any mistakes or miscomprehension of the

questionnaire (Oppenheim, 1992). The sample examined in the pilot study must be a

part of the sample used for the conduction of the research; thus, the researcher may

reveal unexpected findings, based on which any necessary adjustment is made

(Gerson and Horowitz, 2002).

The first three telephone interviews were used as a pilot study. The analysis of those

interviews resulted that the questionnaire’s structure was appropriate. The questions

used did not reveal any particular problems; however, in some cases the researcher

had to rephrase some of the questions, following the flow of the conversation.

4.6 Data Analysis Dabbs (1981) claims that, qualitative research deals with the meaning of things.

Hence, the analysis of qualitative material is more explicitly interpretive, creative

and personal comparing to quantitative analysis; still it has to be equally systematic

and careful (Walker, 1985). Similarly, Kvale (1996, p.67) states that ‘qualitative

analysis is described as a chemical analysis designed to identify the components of a

substance, and quantitative analysis as a chemical analysis designed to determine

the amounts of the components of a substance’.

44


Based on the literature, the main analysis technique, which is appropriate for semi-

structured interviews, is content analysis. Despite the fact that there is no agreed

definition concerning the specific method of data analysis (Clark et al., 1998),

Krippendorff (1980, p.21) defines it as ‘a research technique for making replicable

and valid inferences from data to their context’. The central idea in content analysis

is to classify the information given from the interviews into specific content

categories (Weber, 1990).

On that account, content analysis was the method used to explore the concepts

within the interview results. Firstly, a detailed review of all audiocassettes was

undertaken and all face-to-face and telephone interview were transcripted into a

written version so that the data could be read. Following, the data was categorized

and simplified into manageable classification format (Patton, 1990). As a result,

theme titles were progressed, and formulated Content Analysis Grids, as shown in

Chapter 5.

Accordingly, each one of the themes placed on the grid was analyzed at four

dimensions including:

not discussed: the interviewee did not make any reference to the theme

discussed: the interviewee devoted only a couple of sentences to the issue

discussed in detain: reference with more than two sentences and less than

two paragraphs, and

Emphasized: more that two lengthy paragraphs devoted to the topic.

(Source: Finn et al., 2000).

Exceptionally, questions 9 and 12, which included Likert scale, were analysed with

descriptive statistics using the Statistical Package for Social Sciences SPSS version

11.5 for Windows.

4.6 Limitations of Primary Research

45


During the conduction of primary research, there were a number of factors that had

negatively influenced the analysis process. In regards to the face-to-face interviews,

external noises and other distractions were also recorded. As a result, it was difficult

for the researcher to hear clearly the conversation during the transcript procedure.

Furthermore, in case there were more funds available, the research would have

conducted more face-to-face interviews as they proved to be more effective for the

study.

In regards to telephone interviews, there were difficulties in line connections and the

conversations were not clearly recorded. In addition, some of the participants were

not English and due to their accent some parts of the interviews were not easy to be

transcripted.

4.7 ConclusionIn this chapter was portrayed the methodology selected for the accomplishment of

the research. Also, the aims and objectives of the study were presented and justified.

A description of the secondary (i.e. books, articles, electronic publications etc) and

primary data sources (i.e. in-depth interviews and questionnaire survey) utilised for

the data collection relevant to the study was included. Finally, an evaluation of the

instrument used at the interviews as made and the method used for data analysis was

described. At the following chapter, the findings of primary research are presented

and analysed.

46

Chapter 5: Analysis of Findings


5.1 IntroductionIn this chapter the findings from primary research are being presented and discussed.

Results are analyzed in groups of findings and discussion is often linked back to the

literature review in order to support of conclusions.

5.2 The respondents’ profileAs it was previously explained, the main criterion for the target of sample that

actually participated to the research was their knowledge and experience in the fields

of technology and tourism. They were divided into groups according to the field of

business they operate in. As a result, three (3) groups of participants evolved,

consisting of seven (7) categories, as they are presented at Table 5.1:

Table 5.1 Categories of Companies and Organizations

Based on a preliminary research conducted on the Internet, the following identified

trends provided the rationale for the before mentioned selection:

a. Most of the network operators were offering services concerning information

about events or traffic. There was not any reference to other tourist products

or services.

47


b. Accordingly, the Mobile Device Manufactures have already started to

develop devices able to support upscale services, with Multimedia Message

Service (M.M.S.) being the most popular thus far.

c. Furthermore, at some European destinations’ web sites, W.A.P. options are

available.

d. Destination Management Systems companies and other Software providers

were moving towards developing applications for wireless and mobile

platforms.

e. Similarly, companies, whose main activities are maps and guides

publications, as well as contemporary tourism intermediaries (e-

Intermediaries), have already started to examine the potential of distributing

their products and services via mobile devices.

f. The term ‘experts’ includes academics and practitioners, who specify in

I.C.Ts and the integration of technology in the tourism sector in general.

It is worth mentioning that corporations coming from the technology field had

higher percentage of participation in the research, comparing to tourism related

companies and organizations; they remarked a rather low percentage of

participation. Still, participants of the third group (experts and map and guide

publishing companies) had the highest level of contribution. At Chart 5.1 are

illustrated the shares of the three main groups; while at Chart 5.2 is presented the

partaking of each individual category.

Chart 5.1 Shares of Participation per Group

32%

21%

47% Technology Group

Tourism Group

Others

48


Chart 5.2 Shares of Participation per Category

7% 7%

18%

18%4%

28%

18%

Moblie Network Operators

Mobile DeviceManufactures

DMSs and other SoftwareProviders

Destination Organizations(DMOs, NTOs)

Tourism e-Indermediaries

Map and GuidePublishing Companies

Experts

The majority of the interviewees belong to the upper level of management. Their

fields of expertise were in Research and Development, Marketing and Sales, and

Information Technology. As it was stated before, academics specializing in the

integrations of technology in the tourism industry, have also participated in the

research. Table 5.2 illustrates the participation per department.

Table 5.2 Participation of Interviewees per department

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5.3 Findings and DiscussionIn order for the research results to be appropriately processed, seven (7) sub-

categories have been developed, based on the questionnaire. More specifically, those

are:

1. Stakeholders and their Roles

2. Wireless Technology as a new Distribution channel and Marketing tool

3. Success Factors

4. Estimated Benefits

5. Limitations and Challenges

6. Potential Wireless Applications in Destinations

7. M-Commerce for Destinations

Each one of the above-mentioned groups of findings is discussed in detail at the

following sections.

5.3.1 Stakeholders and their Roles

The provision of information concerning a tourist destination to portable devices is

an effort that requires the collaboration of numerous stakeholders. There are two

main categories identified: tourism originated stakeholders and technology

developers.

The content of information, the devises that would support the service as well as the

network, which would deliver it, were established as the most important elements of

the procedure. A short description of the process is given at the figure below:

Figure 5.1: Wireless process in tourism destinations

As a result, the primary key-stakeholders are the content providers, the portable

device manufactures and the network providers.

50

Destination’s Information

Wireless Network Providers

Upgraded Supporting Devices


The term content provider includes any kind of organization or company, which

manage the destination or acquire an updated database of information. Therefore,

Destination Management Organizations (D.M.Os) was identified as the main

stakeholder for the provision of destination data. The arising issue was the

provincial level on which the service will be developed. As it was stated at the

literature review, there are three levels of destination development: local, regional

and national. Accordingly, the information could be provided by the local authorities

(city hall etc), the regional D.M.O.s or the N.T.O.s. These types of organizations

usually obtain updated databases concerning facilities, natural and historical

attractions and amenities that are available at the destination. Consequently, the role

of destination organizations will be to provide the available information.

Furthermore, they should take the initiative of developing wireless services, since

they are usually in charge of managing and promoting the destination. Thus, they

have the experience to estimate the effectiveness of wireless technology for the

destination. Nonetheless, it will be their responsibility to congregate and coordinate

local tourism suppliers, for the required information to be gathered. Another

obligation will refer to control and assure the quality of data distributed via wireless

channels; and eventually they should be in charge of pushing the service to the

market.

Nonetheless, more than a few argue that participation of D.M.Os might prove to be a

restraining factor. This is due to the fact that most organisations are state-controlled

and therefore, their function and goals are different from those of private companies.

A similar role could have tourism publishing companies, who specialize in the

creation of guides and maps about destinations. The collected information used at

their publications, is being frequently updated. In addition, currently most of the

publishing companies distribute their products in digital format, in order to

correspond to the needs of ‘advanced’ travellers. In relation to destination

organisations, that is a major advantage in terms of saving the extra cost of

transforming data in electronic form.

Still, tourism intermediaries, such as tour operators were identified as a stakeholder,

yet at a secondary level. Similarly to the publishing companies, they have the ability

51


of providing information about a destination, as it is the core element in their

business. However, a most important role was acknowledged for the e-

intermediaries. They are considered to be the new form of tourism intermediaries, as

a consequence of technology’s integration in the tourism industry. They have the

ability of providing current information via their web sites. In the same way, they

could also provide information through wireless devices and networks.

The second group of the recognized stakeholders was wireless technology

developers. They were further divided into two (2) sub-categories: device

manufactures and network providers. The arising issue still was to define the type of

technology meant by the term wireless. Both, 3G mobile networks and Wireless

Local Area Networks (W.L.A.Ns), were identified by the interviewees. As it was

established at the literature review, each type has its own requirements for

implementation and different kind of devices and applications are needed. This

distinction affects accordingly the value chain of the service.

Nevertheless, it was almost unified agreed among the interviewees that, it is most

likely for visitors to have their mobile phone on a trip, rather than a P.D.A. or a

laptop, regardless the purpose of the travel. Hence, it was estimated that Location

Based Services will be most widely accepted and used, when they become available

via mobile phones. Still, it was predicted that the delivery of information wirelessly

will be successful when the platforms of mobile networks and W.L.A.Ns become

compatible. In that case, it will not be necessary for differentiated applications to be

developed and the service will be broadly used.

Table 5.3 Content analysis grid – Main identified stakeholders (n=28)

Not Discussed Discussed Discussed in detail

Emphasised

Destination Organizations

4/28 6/28 12/28 6/28

Device providers 0 15/28 12/28 1/28

Network operators 0 6/28 13/28 9/28

e-Intermediaries 16/28 8/28 4/28 0

Public Sector 0 11/28 15/28 2/28

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a. Public Sector involvement

In terms of public sector’s involvement in the value chain of destination wireless

services, the majority of the interviewees believe that it should participate (Table

5.4).

Table 5.4 Participation of Public Sector

In fact, there was a variety of opinions regarding public sector’s involvement. Based

on the interviews, the researcher pointed out the lack of a solid argument framework

regarding the role of public sector, even among those who share the same opinion

However, the most common assumption, was that its role will be defined based on

the way it is perceived in each country and its role in national economy. In some

cases, participation of public sector might be well received by other stakeholders and

visitors. There will be a particular positive affect in case its contribution enhances

the effort. On the contrary, in the case it barricades the procedure or leads the market

to monopoly, then it was stated that public sector should not be involved. Some

expressed the opinion that, public sector should perhaps have no participation,

considering potential political cost.

Those in favour of public sector’s involvement diminished its role in funding the

effort for free provision of the service. It was argued though, that it would be more

important to supervise and coordinate the effort, rather than exclusively fund it, as

there would be limited profits for private companies. It ought to encourage the

initiative and motivate local tourism suppliers to participate. Moreover, it is the

public sector’s responsibility to build the legal, commercial and financial framework

for the project to be based on. Controlling the content and assuring its quality were

also included among its responsibilities. Thus, it was estimated that visitors might

feel more secure, trust the service and use the information.

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The main drawback for the involvement of public sector was bureaucracy and the

consequent slow pace of acting in relation to the private sector. In many cases is

characterized as inefficient. One of the interviewees mentioned that, ‘if the effort is

left entirely on the public sector, there is a serious possibility it may never become a

reality’. For that reason, companies that belong to the private sector, like mobile

operators, are often discouraged to participate in a project where any kind of public

organization is involved. Despite that, it was recognized that the public sector should

be informed of the applications, even if it does not have any significant role in the

procedure.

5.3.2 Wireless Technology as a new Distribution channel and Marketing tool.

The development of mobile devices and networks, as well as the expansion of

W.L.A.Ns, is estimated to become a new form of distribution channel. This

statement was supported by a high percentage of the participants. They estimated

that as wireless communication technology grows further and consumers become

more familiar with it, destinations could take advantage and use it as an alternative

distribution channel. It will operate as an additional tool to the already existing

channels. Thus, there will be three types of distribution channels available: offline,

on line and wireless.

Emphasis was given to the time, by which wireless services will be implemented at

destinations. None of the participants estimated that this will happen in the near

future. The time frame set was approximately 3 to 7 years, in order for technology to

be completely developed and rolled out, as well as for consumers to become more

familiar and literate with it.

Also, a number of interviewees stated that this type of distribution channel will be

used by visitors during their vacation, rather than in the pre-travel period. Internet

will remain the foremost means of finding information about the destination and

plan their vacation before the actual visit. On that account, wireless technology will

prove to be an effective way for local enterprises to promote their products and

services, while consumers are at the destination.

54


In regards to the use of wireless technology as a marketing tool for destinations,

interviewees responded similarly. The majority predicts that it will become a very

important tool in the future and the time frame they give for this to happen is

approximately 3 to 7 years. Presently, it has limited usage as the service is still under

development, the devices are not upgraded enough and there has been very little

effort to promote any of the existing applications. On that account, the applications

of wireless technology will be used primarily as a pull rather than a push marketing

technique. Initially, it will become supplementary tool, employed to enhance

existing marketing strategies. Gradually, the importance of having a presence in

wireless channels will grow; this is an appraisal based on the Internet experience,

where every country as well as each individual tourism supplier has developed a

web site.

Still, the nature of mobile phones and other portable devices should be taken under

consideration. They are mainly perceived as a mean to get immediate, accurate but

most of all simple information. Thus, it will not evolve in an effective marketing

tool for the destination before the trip, as much it will become useful during the trip.

According to many interviewees, local services and products will be better promoted

while the visitor is still at the destination. But on-site promotion cannot be used to

promote the destination itself since the visitor is already there. In this case, it is very

important for visitors to be aware of the availability of service.

Table 5.5 Content analysis grid – Use as a Marketing tool and Distribution

channel (n=28)

Not Discussed Discussed Discussed in detail

Emphasised

Supplementary tool 0 15/28 8/28 5/28

Push technique 0 10/28 12/28 6/28

Pull technique 7/28 9/28 8/28 4/28

55


5.3.3 Success Factors

Furthermore, the research revealed the most important factors that determine

wireless services’ success in a destination. The interviewees were asked to rate in a

scale from 1 (Very Unimportant) to 5 (Very Important), the factors that had been

identified and how they could affect wireless services’ application (Chart 5.3).

Content of information as well as its accuracy and relevance were identified as the

most important features. It will be important for users to have the ability to hit upon

updated information, adjusted in a content that will be easily accessible and

comprehensible. The information needs to be credible and have good quality, in

order to gain consumers’ trust. Unless the content is provided by an official source

and have a thorough structure, customers’ willingness to familiarize with the service,

realize its utility and pay for it will be limited. Consequently, stakeholders will have

to focus on offering travellers the best possible service.

Chart 5.3 Success Factors

0,000,501,001,502,002,503,003,504,004,505,00

Personalization of content is considered as a significant factor, although it is

estimated to have a greater impact in the future, when the provision of general

information will not be satisfying. After the service is rolled out and consumers

become more familiar with it, the real value will be in adjusting content based on the

needs and habits of each individual consumer. Thus is enhanced the ability of

companies to segment the market better and gain competitive advantage, especially

56


for people who visit frequently a particular destination. One of the ways to achieve

personalization is to be used the databases of mobile providers’ Customer

Relationship Management (C.R.M.), where the general profile of subscribers is

being built. This profile could be frequently updated upon customers’ permission

and enable thus the provision of personalized information and services.

Consumers’ familiarity with new technology was identified of equal importance.

Technology is changing rapidly and consumers often do not have the time to become

accustomed with new features. That is a fact for all the discussed technologies

namely G.P.R.S., 3G networks or W.L.A.N.s.

Hence, companies who specialize on technology have the obligation to help

consumers understand the capabilities gained by using an upgraded device or

network. Otherwise, any further development on services will prove ineffective.

Training the customer in adapting technology it will eliminate the importance of this

factor.

The cost of investment was rated highly as expected. The question that arose was

whether implementation expenses would have to be covered by one stakeholder and

who would that be. Up to these days, the cost of network implementation is huge

and forbids the creation of infrastructure. Each mobile operator already invests on

the development of its own network and services; therefore, it is estimated that they

will not be willing to pay for the creation of an application concerning the

destination. Public sector or destination-originated organizations should fund the

effort of transforming data into a digital format. Even so, the decision of

participation level in terms of finances will depend on the business model that will

be developed. On the other hand, some of the interviewees anticipated that cost is

not a very significant matter, as there are more important issues to be solved; once

there is an answer for those issues then resources will be found.

Cost to the end user is always a factor that needs to be taken under consideration.

The current period is considered to be the early period of the implementation of 3G

and W.L.A.Ns. Therefore, cost to the end user is high as it includes the expenses of

57


updating devices, apart from service provision. Once the cost of device is overcome,

the cost of service will determine its acceptance by consumers. If the cost of service

is high then the applications will not be successful, since the same information is

available over landline Internet. On the other hand, as it was stated before if the

content of information has quality, proves to be useful and valid, then consumers

will be willing to pay. The only case that cost will not be an issue is when the end

users do not have to cover it.

Download speed was another element ranked as essential. People tend to get

frustrated when they have to wait for a long time to download a piece of

information. On account of the fact that they are used in high-speed connections

with landline Internet, they expect the same to happen with connections via mobile

phones and other portable devices. The difference between wireless Internet

connectivity and usage of 3G applications has to be made clear, as well as the kind

of information that can be offered by each one. A good example is W.A.P., which is

considered as a failed application, as it did not succeed to meet consumers’

expectations, despite the fact that it was a great achievement for mobile sector.

Finally, the degree of interactivity was acknowledged important factor as well.

Interactivity gives customer the chance to be on familiar terms with the application,

rather than simply browse for information. Also, the option of data on demand is

made available, in case he wishes to search for a particular subject. The opposed

opinion to that states that people will use their mobile phones for specific requests

rather that ask for a clarification or further information and therefore, the degree of

interactivity will be low.

Another factor that was identified as important is availability of the service in many

countries. The success of the service globally will be affected by the implementation

of the same type of technology and networks in many countries. However, since

feasible is questionable, this problem could be confronted with the development of

networks that have interoperability. This is due to the fact that, when a traveller

visits a country that provides a different (and not compatible with the one commonly

58


used) type of technology for Location based services, then he will not be able to use

it.

5.3.4 Estimated Benefits

In regards to the benefits that the application of wireless services will offer to

destinations, interviewees stated the following:

Chart 5.4 Estimated Benefits

2,802,903,003,103,203,303,403,503,603,70

Attract

visito

rs

Improv

e image

Incre

ase c

ompe

titive

ness

Reduce

risk

First of all, they considered that the image of destinations will not be affected

radically. Wireless services might place a destination in people’s perception as

innovative but it will not become a reason for visiting. Besides, it will depend on

visitors’ existing perception about the destination. For instance, capital cities may be

expected to have this kind of applications and be more advanced than the

countryside, as a lot of people travel there for business purposes. On the contrary, an

exotic destination is less expected to offer this kind of services as people travel there

mainly for relaxation. The level of technological development will be also an

important element that should be taken into consideration.

Although wireless technologies may not enhance the image of a destination, they are

expected to reduce the risk of travellers, which was estimated as the most important

benefit (Chart 5.4). Due to the fact that people will be able to have easy access on

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useful information regarding services available on the destination (e.g. police,

hospitals etc), they will feel more secure comparing to visiting a foreign country in

the past. Based on services like that, destinations may be perceived safe and in that

way their image might be affected.

Moreover, a lot of the participants agreed that destination’s competitiveness will be

increased. Although, at the beginning might not be widely known, eventually people

will ask for wireless applications, once they are being available in many countries.

Therefore, as one of the interviewees noticed, ‘wireless technology will create a

competitive advantage for destinations in the short run because in the end this kind

of facilities will be offered broadly’.

In the same way, it was argued that wireless technology could contribute in

attracting more visitors to the destination. Although, its main role was identified as

a supplementary marketing tool, it was estimated that people appreciate the thought

of being safe while travelling. The opposite opinion to that, referred to wireless

applications as a service, used only for alerting consumers on any activity or

attraction available during their visit. However, the challenge will be to

communicate with consumers and gain their trust.

5.3.5 Limitations and Challenges

As it was presented before, the application of wireless services in a destination will

prove beneficial in many ways. Still, there are a number of limitations and

challenges that need to be taken under consideration and be overcome.

Content and quality of the information concerning the destination is identified as the

key element in the procedure, since it can be a success factor, a limitation and a

challenge at the same time. Many of the interviewees expressed their concerns about

the quality of data that will be supplied by wireless channels of communication; its

efficiency and accuracy, as well as its usefulness for the end user. Furthermore, the

way that the information will be distributed via wireless channels will be an

important challenge.

60


Another limitation is the collaboration of the stakeholders. As it was identified

before, there are many stakeholders that should collaborate in order for wireless

reality to take off for destinations. Each one will have a different role as well as

diverse interest, especially if the initiative is taken from the private sector.

Furthermore, they do not have the same background in knowledge regarding the

subject; thus the integration between content providers and technology developers

might be a limitation. On that account, it is important that they manage to cooperate

efficiently to provide a good quality service to visitors.

Consumers and their ability to adapt new technology, increasing the usage of

upgraded devices is another recognized limitation In case consumers are unable to

comprehend the usage of the new channel or do not ask for those services, then the

application will be unsuccessful. Thus far, the end users have limited experience in

wireless technology and new devices; on that account they have to be trained and

accept the new mean of communication. Therefore, the access to the information has

to be easy, relatively cheap but most of all accurate.

The development of technology, which will improve connectivity, is also crucial in

the procedure. The rollout and support of the service from mobile operators will

determine the feasibility of the effort. In order for upgraded data (pictures, sounds,

video) to be delivered, mobile and wireless networks should have high-speed

coverage, improving thus download speed. The roaming agreements among mobile

operators will greatly affect this feature. In addition, the overall expansion of mobile

and wireless networks including security issues will enhance the prospect of m-

commerce for tourism products and services.

Moreover, cost is always a limitation that needs to be faced and overcome. The

budget that is available for developing wireless services for destination is important.

Only expenses for network’s expansion and upgrading is not included in the total

cost, which consists of the application’s development cost, as well as marketing

expenses that are necessary to create awareness of the service.

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Despite the limitations, the implementation of wireless services in destinations is a

procedure with many challenges. Most of the interviewees mentioned that building

the network or improving the devices is going to happen no matter what, as it is an

absolute fact; the real challenge is to bring all the elements together and make the

service happen.

The right partner mix is a very important condition to be met for wireless

applications to become a reality for destinations. Moreover, they will have to be

prepared to have the ability to follow technology’s development as much as keeping

the offered data accurate and up-to-date. However, one of their main concerns

should be funding the effort, in order for investment’s cost to be covered and the

service to become available to consumers. The implementation of wireless services

will have to be correct and with as less faults as possible, in order to gain a good

reputation and be placed highly in consumers’ perception; on that account, it will be

very challenging to create a strong brand that will support it. In any other case,

visitors will not trust it and it will become known as a failed effort.

The maintenance of content’s quality, in terms of accuracy, comprehensiveness and

simplicity will be an important challenge. Once people get used in using the new

form of communication channel they will demand to receive good quality data,

which increases its usability. Furthermore, consumers will expect to be further

advanced; therefore, stakeholders will have to confront the challenge of

personalization by filtering out any irrelevant information.

Overcoming all challenges and limitations, the implementation of wireless services

in destination is estimated to have a great potential, as it will be further discussed.

5.3.6 Potential Wireless Applications in Destinations

The discussion between the researcher and the participants was completed by

examining the potential for future traveller to receive a destination originated

welcome S.M.S. or M.M.S. at his mobile device while approaching to the

destination. Issues like privacy, personalization of information as well as differences

among market segments arose.

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Two (2) key market segments were identified: Business travellers and Leisure

travellers. The majority of the interviewees mentioned that Location Based Services

are expected to be used by both market segments. The argument was in terms of

which one would be the first to adopt L.B.Ss. Traditionally, business travellers are

considered as ‘early adopters’ in regards to any technological development. Usually,

companies provide their up-scale representatives the latest devices in terms of

mobile phones, P.D.As and Laptops, enabling them to contact their intranets any

time from any place. Most significantly, the expense of devise and cost of calls are

covered by companies; therefore, business travellers are more likely to use new

features and applications. However, it was supported the view that while they are on

a trip, usually there is no time available for leisure activities; the purpose of

travelling is specific and time is limited. On that account, it is possible for business

travellers not use frequently any service concerning the destination.

On the contrary, leisure travellers do not obtain the latest device and they are

sensitive in cost issues. Also, it is quite unlikely when a person is going on vacation

to bring a P.D.A. or a Laptop; the devise that is expected for a leisure traveller to

carry is his mobile phone. Furthermore, it is noticed that during holidays, people

tend to relax and avoid thinking about anything that may distract them. Thus, a part

of the interviewees supported that it is most possible for leisure travellers to search

for information related to destination and use their mobile phone to find it.

Still, it was almost unanimously stated that both kinds of travellers might get

annoyed to receive a welcome S.M.S. or M.M.S. every time they travel, unless it is

very carefully designed. Based on their personal experiences, most of the

participants expressed their discomfort of receiving useless S.M.S. every time they

change country or even when they change cities or areas within the same country.

However, they declared that it would be more acceptable if it were accompanied

with some relevant information about events or attractions. The message could

include an attachment for further information or could provide the option of links

leading to additional details regarding entertainment choices, places to visit, history

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of destination etc. In that case, they could identify the action’s usefulness, as well as

the added value of the service.

Another aspect that was emphasized concerned the perception regarding mobile

phone as a personal device; therefore, receiving a welcome S.M.S. might be

considered as an intrusion of consumers’ privacy. Besides that, technology side

stakeholders could perhaps develop a feature on their networks, recognizing that a

certain person has been in the country for several times and not sent repeatedly the

same message. Similarly, as it was stated before, information could be sent based on

the profile of visitor, which is developed during registration to a mobile operator.

Receiving irrelevant information about the destination encloses the risk of ruining

the image and usefulness of all mobile services.

The idea of sending a welcome S.M.S. or M.M.S. to visitors was characterized by

many of the participants as brilliant. At the present time, similar applications have

been developed in some countries, but they require improvement in order to become

successful. It is recognized as a great potential and a massive opportunity for both

destination and mobile operators to communicate and acquire customers. But only in

the case it is relevant, personal and timely. It is always nicer for consumers to

receive a welcome message from a local destination authority rather than a mobile

operator.

5.3.7 M-Commerce for Destinations

With reference to the literature review, the concept of m-commerce has been

discussed lately as an alternative form of trade, applicable to the new, digital age.

Tourism is estimated to be one of the main sectors where m-commerce will be

broadly applied. As it was declared by one of the interviewees, ‘once the usage of

mobile phones is realised beyond making phone calls’, service providers will seek

for opportunities to make business via wireless devices and networks. Furthermore,

as consumers are getting more used to the concept, they will ask for the ability of

making transactions via their devices. The purchase of tickets in attractions and

events was identified to be the most popular service, avoiding thus queuing. On the

contrary, hotel room booking or travel ticket purchasing will not be as successful as

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they are usually done before the trip. Despite that fact, the possibility of making

more complicated transactions via mobile devices was recognized for the next 3 to 7

years, especially as the infrastructure of networks and devices are being constantly

improved. Thus, m-commerce will prove a beneficial channel for local business and

services.

Still, emphasis was given on the quality of content, the creation of unanimous

platforms in many countries, as well as the effective collaboration of stakeholders

for application’s successful rollout. Based on the experience about Internet,

customers first got accustomed to it, using it mainly for collecting information and

then started using it for transactions. Likewise, the participants estimated that the

same pattern will be followed for the development of m-commerce.

Conclusively, m-commerce could prove an enormous opportunity for destination

management. For this to become possible, there are three conditions to be met: a)

consumers become familiarize with its concept, b) local tourism suppliers clarify the

kind of products and services they can offer and, c) security issues for transactions

need to be overcome.

5.4 ConclusionBuhalis (2003) and Palmer (2000) suggest that in order for tourism destinations to

sustain their competitiveness in the future, they must be able to adjust to the

changing environment and proactively satisfy customers’ need. The successful

provision of accurate and up-to-date information will always be the most significant

competitive advantage.

The progressing development of wireless technology will enable destinations to

conquer that competitive advantage. Besides, today’s travellers are becoming more

and more demanding, forcing destinations to follow contemporary trends. Although,

there are limitations for such an effort, the challenge of keeping visitors satisfied is

much stronger and becomes a compelling motive.

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Chapter 6: Recommendations and Conclusions

6.1 Recommendations to the Industry

The location information adds a new dimension to mobile application and brings

more value to customers by improving their safety, their productivity and/or the

quality of information needed (Nokia.com, 2003).

Besides, it should be taken under consideration that a mobile phone or a PDA are

portable devices that people will use to attain low impact information easily, rather

than purchase a vacation package or any other tourism product. There will not be

one single mobile device providing all utilities and be compatible to all networks.

Nevertheless, mobile devices are the portals through which the user interacts whilst

‘on the move’ (Ralph & Shephard, 2001).

Mobile location services will not themselves be identified, as a set of ‘killer

applications’ but rather location information will be integrated as the value-adding

element in a whole range of services. An attractive set of location-based applications

will be based on life management services supported by a dynamic portal that uses

end-users’ personalisation details to change the type of information and delivery

method, according to the end-user’s changing time or context (home, office,

morning, evening, etc). The deployment of global mobility portals is essential to

support the global traveller, and sustain the roaming capabilities of GPRS and GSM;

by removing the added complexity for the user to change profiles in order to connect

to the same services in different countries. The geographic distribution of network

elements and the seamless access to services across different countries will

strengthen the mobile operator’s position as a service provider (Ralph & Shephard,

2001).

Wireless services necessitate different technologies to be applied in order to fulfil

the requirements of a successful business model. Most of the current applications are

available via collaborations among private companies. As more technologies

become standardised, it is important for operators to adopt solutions today, which

66

will continue using identical platforms and databases contributing in the

implementation of new services (Nokia.com, 2003). The most recent, is the one

between the e-intermediary Lastminute.com and mobile operator Vodafone. A few

weeks ago they announced the successful launch of a new service that gives

customers the chance to browse and book travel and leisure products, using their

mobile devices for real time availability. Similarly, Lonely Planet has developed an

application, which is being available via Orange’s network. Using this service,

consumers have the ability to seek for information about 50 destinations worldwide.

Although private owned companies prefer to establish agreements among them,

collaboration with stakeholders from the public sector should be also taken into

account. Hence, the evolving business model should be formed based upon Private-

Public sector Partnership (P.P.P.). Additionally, it is estimated that consumers may

feel less annoyed when they receive a message from a public organisation rather

than an private company.

The key to commercial success lies in understanding end-users, their lifestyles and

attitudes and in creating the product-service combinations that match their

expectations and needs. As the success of any service or application is depending on

consumer’s willingness to use it, any effort made for the provision of accurate

information concerning the destination, should be user-friendly. Moreover, users

will probably be reluctant to pay for services that do not offer customised content

and are not personalised. Networks allow packets to be directed at specific endpoints

and are therefore a natural medium for personalized or directed content.

Therefore, marketing operations should adopt pull strategies and offer wireless

services on demand. Permission marketing, including location-based advertising,

raises privacy issues. In particular, push services based on user’s location is a

sensitive issue, since user’s privacy may be threatened. Moreover, the hazard of

wireless technology becoming an overexploited service by every individual

enterprise, will occasionally lead to customer dissatisfaction.

67

However, the tourism stakeholders should consider wireless technology as a tool,

which can make the delivery of service easier and will give them the opportunity to

establish distinctive strategic positioning (mformobile, 09/12/2001).

6.2 Further ResearchIn general terms, the integration of technology in the tourism sector has been in

depth investigated, as well as the way it has affected its structure. Accordingly,

many researches will be conducted in the future, aiming to examine further

implications of wireless technology in tourism.

During the conduction of this study, several issues have arisen which deserves to be

in detail observed. Questions like ‘In what way wireless technologies will affect the

tourism industry?’, ‘How feasible is it for Wireless Technologies to be implemented

and used for destination management?’, ‘How effective will the wireless channel be

for Small and Medium tourism enterprises?’ and many others could be addressed by

future research in this area.

6.3 Limitations of the StudyThe main aim of this research was to identify the stakeholders that need to

collaborate in a destination for the provision of wireless services. Due to time and

money constraints, the research took place in the UK. Therefore, the majority of the

participants expressed their views based on the British reality. On the other hand, the

percentage of non-UK participants it was very low. On that account, it cannot be in

any case referred that the suggested business model is applicable in every country of

the European Community. In case more time and funds were available to the

researcher, she would have targeted more people from other countries of the

European Community. Thus the results of the results could be safely generalized.

68

6.4 Contribution of the StudyThis research can prove valuable for tourism destinations. The opportunity that

emerges for destinations to provide wireless services is demonstrated. Consequently,

traveller satisfaction will increase and potentially lead to loyalty. Moreover, the way

destinations should formulate their marketing strategies has been illustrated. Finally,

this study provides a general overview of the impending benefits of wireless

technology to tourism destinations.

Additionally, this project can provide insights to the Telecommunications Industry

as well. It has been shown that there is an evolving market that it is worth to exploit.

Pioneer companies could enter this new market and establish business models,

forcing their competitors to follow. Consequently, they can “block” the market and

obstruct the competition from formulating most profitable partnerships. Hence, it is

possible to generate considerable profit and gain a competitive advantage.

Therefore, the results of this research could prove to be very important to technology

experts from both economical and business perspective.

6.5 ConclusionIt was estimated that the development of destination wireless services will not be

homogenous in all European countries, due to different levels of growth in terms of

technology. Therefore, the levels of familiarity among end users originating from

different countries will vary significantly. The employment of wireless services will

be extensively influenced by the location of the destination and the segmentation of

the target market.

However, the time frame of wireless services adoption will vary according to the

type of destination. Cities are estimated to deploy wireless technology faster than

destinations with a leisure profile. The main reason for this is that cities attract more

business travellers that tend to be the early adopters of any technology related

practices.

Hence, destinations must redesign their marketing procedures as the target market

has special characteristics, requiring different methods of approach. Permission

69

Marketing is regarded as the most appropriate form of Marketing that should

accompany the employment of wireless technology.

Moreover, till the inevitable entire technology convergence, destinations would most

benefit from formulating diverse business models. A dominant pattern would

suggest a Private-Public Partnership that will include the Telecommunication

industry, the Destination and Device manufacturers.

70

Appendix AAppendix A

Interviewee Introduction Letter - Sample

Guildford, 19th June 2003.

Dear Mr./Mrs/Dr. xxxxx,

My name is Eleni Flouri and I am a student of Dr. Buhalis at the University of Surrey. Currently I am conducting my thesis, as required for the completion of the MSc in e-Tourism.

The subject of the research is “Wireless Technology for Tourism Destination Management”. Its main objective is to identify the stakeholders in a destination that should collaborate, in order for the visitor to receive accurate and up-to-date information before, during and after his trip. In addition, the role of each stakeholder is going to be examined, as well as to estimate the expected effectiveness (advantages and disadvantages) of wireless technology in terms of the destinations’ competitiveness.

Due to your expertise in regards to the integration of technology and destination management, we would be grateful if you could give me the opportunity to discuss with you about the above mentioned subject. An interview could be arranged according to your preferable date and time. Unless the circumstances allow us to meet in person, we could arrange to hold the interview via the telephone or the Internet. In any case, you will receive an e-mail with the questions in advance, so that you will have the time to familiarize with the content. Kindly note that our discussion will be confidential and used only for the purposes of this study.

Therefore, we would appreciate if you could communicate with us at your earlier convenience, in order for the interview’s details to be arranged.

Remaining at your disposal for any further information or clarification, I would like to thank you for your cooperation.

Sincerely Yours

Eleni FlouriMSc in e-TourismUniversity of SurreyContact details: [email protected], [email protected], mob: (+44) 7789 763430.

Dimitrios BuhalisLeader of e-Tourism CourseUniversity of Surrey

71

mailto:[email protected]

mailto:[email protected]

Appendix BAppendix B

“Wireless Technology for Tourism Destination Management” –Interviews Questionnaire.

1. Which are the stakeholders that should collaborate in order for visitors to receive accurate and up-to-date information concerning the destination at his mobile device?

2. What is the role of each?

3. Who then do you consider that should take initiative to develop wireless destination services?

4. To what extent do you think the public sector should be involved in the development of wireless destination services?

5. How do you think the involvement of public sector would be perceived by other stakeholders and visitors?

6. Do you estimate that Location Based Services will be used widely by:a) Business travelers b) Leisure Travelers c) Both

7. How important do you consider wireless technology will become for effective distribution channel? Please circle the number presenting your opinion.

Very Unimportant

1

Unimportant

2

Neither Important or Unimportant

3

Important

4

Very Important

5

8. To what extent do you think that wireless technology can be used as a marketing tool for destinations?

9. In a scale from 1 to 5, please rate the factors that will determine the success of wireless technologies’ application to destination:

Very Unimportant

1Unimportant

2


3Important

4Very Important

5

a. Implementation costb. Cost to the end userc. Consumer’s familiarity with new technologyd. Content of information about the destinatione. Personalization of informationf. Relevant and up-to-date informationg. Download speed

72

h. Degree of Interactivityi. Other, please specify

10. Which do you regard will be the limitations for the application of wireless technology for destination management?

11. To what extent do you think that m-commerce will prove advantageous for the destination?

12. In a scale from 1 to 5, please rate the benefits that will arise from wireless applications for the destination?

Very Unimportant

1Unimportant

2


3Important

4Very Important

5

a. Improve imageb. Reduce risk for the travellerc. Increase competitivenessd. Attract more visitorse. Other, please specify

13. Which would you consider to be the key challenges by the implementation of wireless technology in destinations?

14. At some destinations e.g. London, there are a number of services available using wireless technology. Would you regard them as successful ones?

15. How do you estimate they have affected their image?

16. Finally, what do you think of the potential for the future traveler to receive a (destination originated) “welcome sms” or mms, while approaching to the destination at his mobile device?

Interviewee’s Profile

Name:

Type of company:

Position in the company (Brief Description):

Telephone Number(s): Office

Mobile

Fax

E-mail

73

Thank you very much for your time and your kind cooperation.Appendix CAppendix C

SPSS Outputs

Descriptives Descriptive Statistics

N Minimum Maximum MeanStd.

DeviationImprove image 28 1,00 4,00 3,1429 ,75593Reduce risk 28 2,00 5,00 3,6071 ,91649Increase competitiveness 28 1,00 5,00 3,2500 1,20570Attract visitors 28 1,00 5,00 3,0714 1,35888Valid N (listwise) 28

Descriptives

Descriptive Statistics

N Minimum Maximum MeanStd.

DeviationCost of investment 28 2,00 5,00 4,0000 ,94281Cost to end user 28 2,00 5,00 4,1786 ,90487Familiarity 28 2,00 5,00 3,9286 ,94000Content 28 4,00 5,00 4,6786 ,47559Personalisation 28 2,00 5,00 3,8571 ,93152Up to date info 28 4,00 5,00 4,7143 ,46004Download speed 28 3,00 5,00 4,2143 ,68622Interactivity 28 2,00 5,00 3,5714 ,83571Valid N (listwise) 28

74

Appendix DAppendix D

Frequencies

Statistics

Category N Valid 28 Missing 0

Category

Frequency PercentValid

PercentCumulative

PercentValid Tourism 13 46,4 46,4 46,4 Technology 9 32,1 32,1 78,6 Experts 6 21,4 21,4 100,0 Total 28 100,0 100,0

Tables

Improve image

Reduce risk

Increase competitiveness

Attract visitors

Count Count Count CountVery unimportant 1 4 5Unimportant 3 4 2 6Neutral 15 7 8 2Important 9 13 11 12Very important 4 3 3

Tables

Cost of investment

Cost to end user Familiarity Content

Personalisation

Up to date info

Download speed Interactivity

Count Count Count Count Count Count Count CountUnimportant 4 3 2 3 3Neutral 7 5 4 9Important 16 14 10 9 13 8 14 13Very important 8 11 9 19 7 20 10 3

75

Appendix EAppendix E

General Linear Model

Between-Subjects Factors

Value Label NCategory 1,00 Tourism 13 2,00 Technology 9 3,00 Experts 6

Descriptive Statistics

Category MeanStd.

Deviation NImprove image Tourism 3,2308 ,59914 13

Technology 3,2222 ,97183 9Experts 2,8333 ,75277 6Total 3,1429 ,75593 28

Reduce risk Tourism 3,5385 1,12660 13Technology 3,5556 ,72648 9Experts 3,8333 ,75277 6Total 3,6071 ,91649 28

Increase competitiveness

Tourism 2,8462 1,34450 13Technology 3,5556 1,13039 9Experts 3,6667 ,81650 6Total 3,2500 1,20570 28

Attract visitors Tourism 2,8462 1,51911 13Technology 3,2222 1,20185 9Experts 3,3333 1,36626 6Total 3,0714 1,35888 28

76

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