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Copyright © 2023, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Chapter 6
DOI: 10.4018/978-1-6684-8177-6.ch006
ABSTRACT
Applications that deal with all services connected to location-based information are
known as location-based services (LBSs). This idea is focused on the localization
of all elements related to a tourist location, including people, services, amenities,
and attractions. LBSs have emerged as a new mode of promotion with the growth
of mobile communication. One of the key and quickly evolving trends in mobile
marketing is location-based marketing. Technology for location-based marketing is
evolving quickly, creating amazing new options. LBSs have many advantages but also
some challenges. This chapter investigates the challenges like security and safety,
privacy, unusual access to the location, competing for attention, and advantages
like enhancing the experience for customers, obtaining thorough information about
consumer behaviour, and boosting your marketing initiatives of location-based
services in tourism industries.
Challenges and Advantages
of Location-Based Services
in Tourism Industries
Sanjeev Kumar
https://orcid.org/0000-0002-7375-7341
Lovely Professional University, India
Ankit Dhiraj
https://orcid.org/0000-0003-0694-3846
Lovely Professional University, India
Divya Rani
https://orcid.org/0000-0001-6578-5054
Patliputra University, India
Copyright © 2023, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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Challenges and Advantages of Location-Based Services in Tourism Industries
1. LOCATION-BASED SERVICES
Real-time location data has become more prevalent in Indian life as a result of the
proliferation of cell phones (Stauffer & Grimson, 2016). Some mobile applications
use the user’s smartphone’s location to provide them with directions, specific
recommendations, or other location-based data. While some services exist explicitly
to share the user’s location with friends or the public, others integrate a location
“layer” into other types of functionality. There are various definitions of the LBS.
Location-based services (LBS) are services that are based on the location of a
mobile user (Rao & Minakakis, 2003) as determined by the geographic location of
the device. Applications using location-based services (LBS) offer the information
and services that are most pertinent to the user there(Jiang, 2006).
Services that rely on a network’s and/or a mobile device’s determination of a
mobile user’s location. A cell of origin (also called cell ID), time of arrival (TOA),
AOA, GPS and EOTD or aided GPS are technologies that facilitate this. It is possible
to utilise GPS without changing the network (Hubaux, 2002), but mobile devices
must be GPS-capable (Hubaux, 2002). Triangulation between multiple access points
in WLAN systems can be used to pinpoint a user’s position. Location information
can be used to provide users of mobile devices with a wide range of services, such
as advertising, billing, information, tracking, and safety (Antikainen et al., 2003).
A type of mobile service is a location-based service, These are services offered
via a wireless internet-capable device (Wijesinghe & Zhang, 2015). Traffic signs
and posters were the only available options for local service information before the
development of LBS (Pedrana, 2014). LBS have become increasingly important
and diverse as mobile technologies have proliferated. The use of the Internet is
expanding, as is the use of mobile phones generally and LBS as a result. Android’s
location-based services are those that relate to the physical location of the device
(Pedrana, 2014).
We also define Location Services to comprehend what LBS are. These only deal
with localising the target individuals and things while making location information
available to outside actors. Location-based information or locally-based enhanced
services are added to location services by LBS. LBS are regarded as a component
of context-aware services (Feng & Liu, 2015). In other words, they adjust to the
target’s context, which they define as the target’s behaviour or features, or “context
information.” Additionally, whereas LBS offers the potential for a two-way connection,
location services only allow for one-way communication (Steiniger et al., 2006).
Real-time location data is now prevalent in many facets of Indian life thanks to the
proliferation of cell phones. Some mobile services use the location of the Smartphone
to give users directions, tailored recommendations, or other location-specific
information. While some integrate a location “layer” into other types of operations,
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Challenges and Advantages of Location-Based Services in Tourism Industries
others exist exclusively to communicate the user’s whereabouts with friends or the
wider public. In the meanwhile, social media platforms like Facebook, Instagram,
and Twitter have incorporated an optional location layer so that users can indicate
their location when they upload content to the websites (Zickuhr, 2013). Additionally,
a lot of information-focused businesses, including rating websites like Yelp and
activity-tracking applications, include location-sharing and other social features.
2. LBS IN TOURISM
The majority of other business sectors are different from tourism in that they can be
conducted in geographically and economically diverse areas (Nell, 1979). Technology
and tourism have always had a very close relationship. Since the development of
the first computerised reservation system, Sabre, in 1960 (Duncan & Mckenney,
1988), information and communication technology has been closely associated with
travel. Information services that are based on the current geographic location of a
mobile device and accessibility through a mobile handset is known as location-based
services (LBS), a term that has gained widespread use. All players in the tourism
industry now have connections thanks to the Internet, particularly in distribution
channels. On the other hand, tourists can now access and make purchases directly
from suppliers and destinations (Bennet & Buhalis, 2003), which has changed the
way they make reservations and look for information and cut down on the amount
of time it takes to make a reservation. Location-based travel apps provide users with
the best routes, suggestions for nearby points of interest, activities, and events, as
well as local weather updates (Bao et al., 2015). The primary goal of LBS supporting
the purpose is to enable better access to nature, which denotes guidance, delivery
of as current environmental information as possible, and safety-related services,
like the ability to send emergency messages with precise location information.
For tourism locations, location-based services (LBS) present a fresh challenge.
They are characterised as services that customers need and that are personalised to
their area. The LBS are founded on the spread of mobile technology and services
associated with a particular location. They can be summed up as services that are
connected to the client’s location. Every tourist resort can benefit from modern
mobile technology by utilising LBS as an auxiliary good. However, LBS, particularly
augmented reality, has the potential to replace conventional tourism services like
tourist guides (Rahimi et al., 2020). When it comes to tourism and travel, visitors
typically require knowledge of the destination when they are unfamiliar with it. The
purpose is to raise location awareness and address each person’s specific interest.
Both domestic and international travellers may pay for this in the tourism industry
because knowing more about the destination will help them learn more and make
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Challenges and Advantages of Location-Based Services in Tourism Industries
their trip more enjoyable. LBS enables travellers to book last-minute flights or trains
and offers information in the event of a delay (Ferri et al., 2010). You may also
search for tourist sites, hotels, and other businesses of your choice.
3. LOCATION-TRACKING TECHNOLOGIES
GPS
The U.S. government manages the Global Positioning System (GPS), a satellite-
based navigation system that currently has at least 24 active satellites (Kumar &
Moore, 2002). The location of something on Earth can be found using the global
positioning system (GPS), a network of satellites and receiving equipment. Some
GPS units are so precise that they can pinpoint their location within one centimetre
(0.4 inches). Latitude, longitude, and altitude coordinates are provided via GPS
receivers. Additionally, they offer a precise time.
Wi-Fi
Wi-Fi location tracking works differently from other methods. Wi-Fi is a wireless
networking technology that enables printers and video cameras to connect to the
Internet as well as mobile devices (smartphones, wearable etc.), computers (laptops
and desktops) and other devices (Sun et al., 2014). It establishes a network by
enabling information interchange between these devices and numerous others. A
Figure 1. Location-based services
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Challenges and Advantages of Location-Based Services in Tourism Industries
wireless router provides access to the internet. You connect to a wireless router
when you use Wi-Fi, which enables your Wi-Fi-compatible devices to communicate
with the Internet.
QR Codes
A QR code is a type of barcode that a digital device can scan easily and that
contains data as a string of pixels arranged in a grid with square corners. Since many
smartphones come equipped with built-in QR readers, QR codes are often used in
marketing and advertising efforts (Law & Law, 2010). They are also frequently used
to track information about products in a supply chain.
Cellular Technology
Similar to GPS, cellular tracking operates. Your device, however, links to cellular
towers rather than satellites. Typically, you’ll be close to two towers or more, which
is sufficient for the system to utilise triangulation to determine your location.
RFID
Tags and readers are the two halves of the wireless system known as Radio Frequency
Identification (RFID). A reader is an electronic gadget with one or more antennas
that transmit radio waves and take in signals from RFID tags (Hozak, 2012). Tags
can be passive or active, using radio waves to transmit their identity and other
information to adjacent readers. Without a battery, passive RFID tags are powered
by the reader. Batteries are used to power active RFID tags.
Key fobs for keyless entry systems, RFID-enabled time clocks for employee
monitoring, and the top inventory management programmes that track the where
about of your physical inventory all use RFID technology.
4. TOURISM-RELATED APPLICATION
LBS can help the tourism industry by providing its user with a variety of services.
Some of them are discussed below.
Weather Updates
It can inform you of the weather conditions in the area you’re travelling to, allowing
you to plan your trip time accordingly.
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Challenges and Advantages of Location-Based Services in Tourism Industries
Destination Information
Travellers must be aware of all the area’s top attractions when they travel. To learn
more about the nearby tourist attraction.
Traffic Updates
The LBS gadget can provide you with the most recent traffic information. It can
alert you by sending messages, for instance, if there is a traffic jam up ahead or any
other traffic diversion on your route.
Recreational Spots
This section can provide information on the closest hotel, restaurant, club, spa,
theatre, music event, etc. You only need to send a message to the operator using
your LBS device, and the operator will inform you of the services available after
searching the database and comparing it to your current location.
Roadside Service
If your car breaks down, you can contact an LBS provider for assistance. They can
tell you where the closest garage, gas station, or cash machine is located.
Thus, LBS enables tourists to choose their location and offers various value-
added services. For instance, it can provide information on your route’s direction,
traffic congestion, fascinating views, and the closest metro station, hospital, hotel,
airport, money exchange and retail centre, among other things. To provide services,
this information only uses location data and a database containing a wide range of
tourism-related facts. Therefore, in the tourism industry, a PDA or mobile phone
can serve as a tourist guide and provide value-added services to visitors.
5. ADVANTAGES OF LOCATION-BASED
SERVICES IN TOURISM INDUSTRIES
Tourists, who use location-based services feel more secure in dire situations. For
instance, if there is an accident, ambulance services can arrive right away and they
can readily access car help. Additionally, LBS reduce the risk of fraud (Hayhurst,
2014), enables customers to receive relevant content and personalised ads, and
enhances their travel experience. Numerous studies point out the advantages of
LBS for businesses. When customers enter physical stores or scan the bar codes of
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Challenges and Advantages of Location-Based Services in Tourism Industries
their purchases with their mobile cameras, they receive these advantages in the form
of new promotional strategies like discounts or reward chances. where the closest
facility or service, such as a bank, motel, restaurant, or pharmacy, is located; being
informed of alerts, such as traffic bottlenecks in adjacent streets or offers at a mall;
the lookup of friends or individuals you have an appointment with, as well as notice
of the whereabouts if your smartphone is stolen.
Enhance the Experience for Customers
Instead of bothering clients with generic adverts and marketing pitches, you can
use LBS to provide them with pertinent content and services. They can be guided
to the nearest store location with your assistance. You may recognise and honour
your greatest customers by keeping track of frequent check-ins and providing loyalty
programmes.
Obtain Thorough Information About Consumer Behaviour
You may learn more about your clients’ purchasing habits by using location-based
services, such as how frequently they visit your business, what time of day they
come, whether they take advantage of your offers and more.
Boost Your Marketing Initiatives
You can inform clients who are close to the location of your company about current
deals and special events because of LBS. A location-based app’s comments and
reviews can also help it draw in new users.
6. CHALLENGES OF LOCATION-BASED SERVICES
Privacy
Everyone has the right to privacy, which is the freedom from invasion or interference
in one’s private life. However, since LBS and other telecommunication technologies
deal with the transformation of different types of information, it is crucial to give
these types of data suitable security to prevent misuse by any unauthorized parties
(Minch, 2006). Without a doubt, it is unethical to track and monitor someone without
their agreement, thus there must be a high level of security. But once more, as in the
case of law and order, the employment of tracking devices to keep tabs on criminals
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Challenges and Advantages of Location-Based Services in Tourism Industries
becomes crucial for the good of society at large. In this case, social security is valued
higher than personal security.
Security & Safety
Every technological advancement affects human life in both positive and negative
ways, and LBS also has drawbacks in terms of locating accurate information data
or even being easily accessible to unauthorised individuals (Chen et al., 2017). On
the one hand, LBS improves both personal and national security, but it also poses a
threat to an individual’s right to privacy because it does not offer a flawless security
solution for the very sensitive data it stores in its database. For achieving security, one
needs to do a small compromise on his/her privacy but to what extent is a question.
Unusual Access to the Location
One of the important surveys done in the past indicates that 46% of children and
one out of three adults are terrified of leaving the location (Mitchell et al., 2012).
Either they are hiding from their parents or they feel uneasy about being located
on a map by their friends or coworkers. It is challenging for mobile applications
to record their location and provide highly personalised services due to the erratic
pattern of location access.
Competing for Attention
Despite the enormous promise of location-based services, they also create the
possibility of unending competition. Consider a less well-known mobile application
that incorporates location-based services. Other location-based service mobile
applications with machine learning capabilities might steal the stage.
7. CONCLUSION
Undoubtedly, different industrial and organisational sectors are getting more and more
interested in location-based services. One of the first sectors to use LBS benefits
is the tourism sector. LBS have already demonstrated their potential to bring value
to tourism by allowing users to look for businesses and points of interest while
navigating more simply and safely in an unfamiliar environment.
The hotels in the sample place a high emphasis on QR codes as one of the
geolocation methods and tools. Through electronic messaging, QR codes are used
in proximity marketing and digital marketing efforts. LBS present new business
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Challenges and Advantages of Location-Based Services in Tourism Industries
opportunities for a variety of mobile value chain participants. Given current technical
constraints on device form factors and data access speed, as well as human constraints
on consideration sets and the demand for speed and convenience, LBS must provide
consumers with timely, relevant, and targeted information at the time and location of
their choice. Undoubtedly there are many challenges of location-based services like
safety, security, unusual access to the location and many more. But businesses in the
retail, hospitality, and travel sectors can especially profit from LBS. However, digital
businesses as well as those that concentrate on web traffic or global marketplaces
might not fully utilise the technology.
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