BUSINESS ENVIRONMENT

Impact of Global Distribution System on the Business Environment of Socomin Travel & Tourism



Technological Developments in the Business Environment Introduction

Introduction

Information technology can play one of the, if not the most important role in the operations of a travel and tourism company such as Socomin Travel & Tourism. Considering the vast amount of information that is required to be pulled of the network, processed, and produced to generate relevant information for business, the importance of cutting edge information technology becomes clear (Allen, T. Pp. 66).

Information Technology

In the contemporary world, of burgeoning technological innovation and the consequences, the ever increasing competition in the market, the applications and use of Information Technology (IT) has become extremely significant. In any organization, the developing, managing and implementing of the huge collection of company data and information, requires a thoroughly efficient storage system (Grossman, Pp. 135-159).

Global Distribution System or Central Reservation Systems

A computerized system used to conduct transactions, retrieve and store information related to air travel is called a computer reservation system. The system has been extended to be used by travel agencies, but was originally operated and designed for airlines. The global distribution systems are those that allow the selling and booking of ticked for more than one airlines. Systems accessible to consumers through Internet gateways are highly in demand, and a majority of the airlines has diverse their systems to incorporate these systems, and the companies that provide them. Users can typically rental cars, book hotel rooms, and get tickets using Global Distribution Systems. In addition to this, these systems allow additionally services such as the ability to reserve buses and railways in some markets, but may not be the case in all systems.

Organisational structure

A company concerned with tourism and travel is the perfect business to take advantage of the distribution channel systems that provide "sufficient information for right people at the right time and right place to enable a purchase decision. This can help revamp the organizational structure to increase efficiency and provide a mechanism for consumers can acquire the necessary information and reservation at the right time.

The tourism industry, where time and cost are of the utmost importance, has to be integrated in the international (global) system to be able to cater to the demand of the customers effectively. This is made possible by the adaption of the Global Distribution Systems such as a Galileo intermediaries (GDS) and others ...