Preliminary Study on the Cashless Payment as an Experience-Based Marketing Vehicle in Tourism Destination
Tourism has undergone fundamental changes due to the vast developments in Information and Communication Technology (ICT) over the past decade. One of the most important aspects of technological development has been in the area of payment system. As we are
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Preliminary Study on the Cashless Payment as an Experience-Based Marketing Vehicle in Tourism Destination Nuri Wulandari and Imanuella Romaputri Andilolo
Abstract Tourism has undergone fundamental changes due to the vast developments in Information and Communication Technology (ICT) over the past decade. One of the most important aspects of technological development has been in the area of payment system. As we are heading toward a more digital society, governments are encouraging the adoption of cashless system to be implemented in every sector, including tourism. Cashless payment systems are promoted for their efficiency and inclusiveness. The systems are especially important for island destination where access to financial services is often limited. The development of ICT in the form of a cashless payment system can strengthen a destination’s connectivity and creating a more seamless tourist experiences. A memorable tourism experience has been argued to lead to destination loyalty. Thus a cashless payment system has been considered to be the future method of payment for tourism destinations. Tourism has been a pioneer in cashless payment systems predominantly in the gaming industry. However, the study of cashless payments in other areas of tourism has been rarely explored. This study serves as a preliminary study to explore consumer behavior regarding cashless payment systems in island destinations. It argues that the cashless payment system can enhance the vacation experience, which can serve as a differential marketing value for a destination. Employing mini focus group discussions, it investigates tourist behavior in cash and noncash payments. The findings provide interesting insights on developing criteria for cashless payment systems and communication tools for cashless systems in tourism, as well as building a foundation for future research on the possible alternatives to cashless payment devices.
N. Wulandari (&) Research Department, Indonesia Banking School, Jakarta, Indonesia e-mail: [email protected] I.R. Andilolo Management Department, Faculty of Economics and Business, University of Mataram, Mataram, West Nusa Tenggara, Indonesia e-mail: [email protected] © Springer Science+Business Media Singapore 2017 A. Saufi et al. (eds.), Balancing Development and Sustainability in Tourism Destinations, DOI 10.1007/978-981-10-1718-6_25
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N. Wulandari and I.R. Andilolo
Keywords Cashless payment Consumer behavior Tourism destination Island tourism
Experience Marketing
Introduction Information Communication Technologies (ICTs) have been transforming tourism industry in a global scale since 1980s (Buhalis and Law 2008). The technological revolution experienced due to the arrival of Internet in the late 1980s has changed market condition dramatically for tourism organizations. Internet is probably the strongest driving force for the changes within the tourism industry (Werthner and Klein 1999). ICT is increasingly playing a critical role for competitiveness of tourism organizations and des
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