The role of information technology applications in profitability: A study of the Indian travel and tourism industry

Abstract

Purpose

This paper aims to investigate the role of information technology (IT) applications in the profitability of the Indian travel and tourism industry.

Design/methodology/approach

Qualitative research was conducted and an in-depth interview technique was applied for the collection of primary data. Traditional travel agents, tour operators, online travel agents and hoteliers in Gurgaon were investigated to explore issues pertaining to the study, and all responses were recorded and later transcribed. The identities of interviewees and their properties are not revealed to preserve confidentiality.

Findings

The analysis reveals that IT plays a significant role in the profitability of the tourism and travel industry. These include competitive pricing attained via dynamic pricing especially in the hotel industry, promotion and improved efficiency in rendering services to tourists and access to tourists virtually anywhere and at any time.

Practical implications

The findings have direct and indirect implications for different stakeholders – notably, travelers, owners and executives of businesses in the travel industry, as well as for researchers. Executives and owners can discern the critical implications of adopting IT to take their businesses to a new level. They should also be able to appreciate the fact that to remain competitive, practitioners must explore the potential opportunities emerging through IT.

Originality/value

Organizations in this sector are moving from traditional business models to more technologically dependent approaches. In particular, this study shows how the use of IT applications is influencing the profitability of the travel and tourism industry especially in India.

Citation

Madhukar, V. and Sharma, D. (2019), "The role of information technology applications in profitability: A study of the Indian travel and tourism industry", Worldwide Hospitality and Tourism Themes, Vol. 11 No. 4, pp. 429-437. https://doi.org/10.1108/WHATT-04-2019-0025