E-procurement for destination management companies within the tourism industry in South Africa : digital era trends, challenges and responses

Abstract

The study attempted to identify digital era Information Communication Technologies (ICTs) that suppliers used, and the challenges, responses, and trends they generated for e-procurement in Destination Management Companies (DMCs). The objectives were to analyse e-procurement in DMCs, through suppliers using ICTs, whilst concentrating on the elements from the new economy through investigation and evaluation; to predict new phenomena in this ever-changing field; and lastly, assessing the challenges that DMCs experienced because of suppliers using ICTs, with possible solutions or recommendations for procurement. Qualitative methodologies were used in order to observe various ICTs in the Tourism Distribution Channel (TDC). The population consisted of eight suppliers, representing over 135 different products and services, each differing from one another in terms of regions they cover, representation, and size. Seven DMCs ranging in size, in various locations and operating or specialising in different markets were selected for the research. To accomplish the objectives, questionnaires, and telephonic discussions with Revenue Managers, Contract Managers or International Sales Managers were conducted. The methodology is based on internal validity as the researcher is close to reality, spending large amounts of time in the field and having collected multiple data and therefore the gaps have been reduced. Reliability of the study can be tested through triangulation as different sources have been used to build a coherent justification. The results show that there is still much to be done before the successful implementation of eprocurement.