Chapter 1
Chapter 1
Chapter 1
from the early 1970s (Collins & Cobanoglu, 2008). This rise in the number of organizations
such as improving their service delivery. In tourism, the use of new technologies has resulted in
the gradual development of a quality tourist experience. Upcoming digitization methods are
causing large-scale transformations of various aspects of tourism, such as hotel service delivery
and the value of individual business processes. The implications of having this digital revolution
in tourism are raising questions and causing primary contests regarding the overall outcome of
implementing new technologies (Gretzel et al., 2015). The improvements in technology have
enhanced most methods of conducting business operations that improve user interaction and
service delivery. Firms in this sector have to venture into the digitization of all business
processes and value chains related to hotel booking and other services in hospitality (Rus &
Negrusa, 2014). The entire hotel accommodation framework is enhanced through this
technological growth. The efficiency and effectiveness of business processes are pushed further
deep learning, and big data, among other techniques. AI is the simulation of human intelligence
in executing machine processes (Bughin et al., 2017). Machine learning and deep learning are
subsets of AI.
The 2013 Travel and Tourism Competitiveness Report reported the Philippines ranking
16th regionally and ranking 81st among 130 countries surveyed. The Philippines was also listed
as the most improved country in the region, being the only Asean nation registering a significant
improvement. With the outlook for the Philippine travel and tourism industry remaining positive,
other industries are also expected to benefit, from transportation to recreational and lodging
facilities, cultural centers, and a wide constellation of community-based handicraft makers and
local scenic attraction. One hundred fifty hotels and resorts will undergo the quality assessment
activity against DOT standards. Apart from focusing on quality over and above the provision of
facilities, the project will also zero in on the service, hospitality, efficiency and food provided by
the pilot hotels and resorts. Accommodation businesses will also be graded according to their
environmental practices, comparative review against international quality assurance systems and
wider guest experience even before the customers arrive at the hotel or resort until their
Davao City has numerous tourism advantages which make the city as one of the top cities
that is visited by tourists. As tourism industry increases, Davao City continuously uplifts its
regional economy that contributes to the services, employment, and infrastructures. A tourist of
Davao City comes from domestic and foreign countries. Domestic tourist usually comes from the
adjacent places and foreigners are from adjacent Asian countries, America, Europe, Africa, and
Australasia. Tourists visit Davao City for business, recreational or governmental purpose.
Davao City has been named by the Department of Tourism in 2008 as the most liveable
city in the Philippines. The city is very competitive compared to the rest of Asia in terms of cost
in doing. In fact, based on the evaluation of Foreign Direct Investment Magazine in 2007 and
2009, Davao becomes one of the top five most cost-effective cities in Asia and the most cost-
effective city in the Philippines. Yet, it recognized as the 10th “Asian City of the Future.”
Statement of the Problem
We have three research questions focused on extracting the required information in this
field of tourism:
2. What are some of the benefits achieved by providing competent solutions through the
present, and predictive perspectives (Kimball et al., 2008). Functions within the BI are
categorized into data collection, text and data mining, prescriptive analytics, business
structured and unstructured data (Rud, 2019). An in-depth literature review has been provided
below. Dzhandzhugazova et al. (2016) describes various ways through which different
innovations are introduced and adopted into the hospitality industry. BI encompasses all aspects
of the innovative types below, leading to a high adoption and integration process. Innovation in
BI covers new supply methods, new products, and service delivery systems, the ability to exploit
new markets, and new business organizations making up improved BI leading to better strategic
decision-making processes as well as new methods of production. All these aspects form a
hotel’s BI (Dzhandzhugazova et al., 2016). Some newer applications of BI in the top-rated hotel
tourism industries seem like something out of a fiction movie. The featured capabilities include
facial identification, voice pattern recognition, task automation, conversation through chat bots,
and real-time management of distributed applications (Bughin et al., 2016). An innovative trend
BI in some firms, the combination of particular analytical techniques gives them the ability to
Davao City as a premier city in Mindanao and one of the largest cities in the Philippines
enjoys a pleasant climate all year round. Being a typhoon free-zone, Davao remains balmy the
whole year, characterized by an even distribution of rainfall, temperature, humidity and air
pressure. Because it is being situated outside the typhoon belt area and it is also shielded with
mountain ranges in its borders. That’s why it is an ideal place to sun your buns or trek your booty
off and spend the night enjoying a quiet evening under the open sky or enjoying some great night
life in the urban developed areas that boast a multitude of clubs, open markets, spas, and a
variety of restaurants.
It is home to the Philippine Eagles, which are held captive, cared for, and bred. It also
houses other species of birds, mammals, and reptiles. The Center is tasked to protect and provide
Philippine Eagle Foundation, it is open to the public for educational purposes. Simulating a
tropical rain forest environment, the Center offers visitors a glimpse into the Philippines’s forest
ecosystem. The facility is also considered a major tourist attraction in Davao City with its lush
Meet and greet Pangil, the biggest crocodile at the resort and the many small ones in their
respective ponds. Witness how they are being feed or you can feed them yourself for a minimal
fee. Smile and pose for the camera with that big python on your shoulders. You can also see
tigers, monkeys, ostrich, birds of different species, and many animals not endemic in the
Philippines. You can also visit the nearby Butterfly House and learn how they metamorphosed
When comparing the cost of living in Davao with other progressive cities in the
Philippines, Davao is really cheaper. Rates of public utilities, real estate, rentals for commercial
spaces, accommodations, labor, raw materials, and other business-related inputs are
comparatively cheaper than other major cities in Asia. Its pomelo, durian, and mangosteen are
sought-after by many, yet these remain affordable and accessible to the locals on a daily basis.
Quality products and services do not necessarily equate to high cost. This factor is seen vital in
a day power is assured by the cable distribution of Davao Light with the availability of a back-up
generation plant. State-of-the-art telecommunications facilities that connect its people to the rest
of the world and also having the cleanest water supply in the country. The city is also the first in
the country to have an adaptive traffic signalization system and has a state-of-the-art traffic
the center of trade, commerce, and services in Mindanao and the gateway to Southeast Asia.
Public-Private Partnership or PPP ordinance in Davao City opens more opportunities for private
Theoretical Framework
Industry in Davao City through the Use of Business Intelligence and will be helpful to those
individuals who plan to invest business in Davao City. It will also be a very great help to
everyone who wants to stay and live in Davao City. As this research provide information not
only on the performance of Davao City’s tourism industry for 2008-2012 but also it adds more
This study tackles about the Enhancing Competitiveness in Tourism and Hospitality
Industry in Davao City through the Use of Business Intelligence. In this research, it discusses the
reasons why tourists visit Davao City, importance of tourism in the regional economy and its
and nightlife experience, nearby getaways, adventurous escapade, cost advantage, highly skilled
human resources, fast response emergency unit, safe and clean destination, availability of public
and private utilities, and city government strong partnership with the private sector. Tourism
industry also affects the service sector. It also includes total tourist population with its purpose
All these ideas cover the research study which shows the completeness and consistency
Definition of Terms
Business Intelligence – s the process by which enterprises use strategies and technologies for
analyzing current and historical data, with the objective of improving strategic decision-making
Enhancing – intensify, increase, or further improve the quality, value, or extent of.
Tourism – the commercial organization and operation of vacations and visits to places of
interest.
Hospitality – the friendly and generous reception and entertainment of guests, visitors, or
strangers.
Industry – economic activity concerned with the processing of raw materials and manufacture of
goods in factories.
Investments – the action or process of investing money for profit or material result.