Can destination management systems provide competitive advantage? A discussion of the factors affecting the survival and success of destination management systems

Abstract

Two models of Destination Management Systems (DMS), embracing different commercial and economic objectives, are proposed. The two models of DMS are tested against each of the three categories of factors affecting the success of DMS. Through this means the paper explores: perceptions of the role of DMS; how competitive advantage, in the context in which a DMS operates, might be defined; and what particular advantages, competitive or otherwise, DMS are thought by their proponents to offer. The obstacles to survival and success for DMS are thus reviewed. Finally the paper speculates about likely future directions for DMS.

Key factors for implementation and success of destination management systems. Empirical evidence from European countries

“…The concept of DMS has attracted considerable attention (Aur elien and Herinandrianina, 2014;Baker et al, 1996;Buhalis and Spada, 2000;Buhalis and Egger, 2008;Estêvão et al, 2015;Law et al, 2010;Sigala, 2013). DMSs are defined by some authors as a collection of computerized information about a destination that is accessible in an interactive way Buhalis and Spada, 2000).…”

“…In addition, DMSs "attempt to utilise a customer centric approach in order to manage and market the destination as a holistic entity, typically providing strong destination related information, real-time reservations, destination management tools, and paying particular attention to supporting small and independent tourism suppliers" (Horan and Frew, 2007). This definition is often referred to in the literature by various authors (Baker et al, 1996;Bedard et al, 2008;Sigala, 2013). According to Sheldon (1993), a DMS can, therefore, be considered a system which, through the use of technologies, including information systems, is designed to meet the information needs of both the demand and supply sides.…”

“…According to the World Tourism Organization (2001), the components of a DMS are: the technical infrastructure of a network of computers, hardware, software and communication links; a database or multiple databases with a content management system (CMS); various software applications that perform the operational functions inherent to the business activities; and the data content. Baker et al (1996) identify the different components of a DMS, namely, a reservation system, a database of customers and a database of products (with information on attractions, accommodation and travel information, among others). In the Tiscover system, referred to by Buhalis and Egger (2008), the DMS includes a wide range of IMDS 121,6 communication support modules, to communicate both internally and with partners and customers, including accommodation reservation, brochures and customer relationship management modules.…”

“…According to Costa and Buhalis (2006, p. 201), "at regional and local levels, entrepreneurs expand their business, associate with each other and build local and regional economies that challenge the predominance of the nations". By its nature, a DMS can satisfy some SMEs' needs at the destination (Baker et al, 1996) and can create more efficient internal and external networks with positive long-term effects on the local economy aiming for competitive advantage (World Tourism Organization, 2001). For Sigala (2011), the DMS should represent the digital platform that provides the functionalities and services that allow the diversified needs of all actors in the destination to be satisfied, concerning obtaining and providing information.…”

“…location-based services, multimedia contents) create more complex operating models, which in turn increase costs, affecting the usability of applications and the viability of the business model, which needs to be based on effective revenue-sharing policies. Baker et al (1996), in their analysis of two alternative models of a DMS, one commercial and the other non-commercial, argue that although the second model is more common at the time of the study, the first has better perspectives for future success. Therefore, the following hypothesis emerges: H8.…”