tourism information technology

Tourism Information Technology, 3rd Edition

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About the book

The third edition of Tourism Information Technology provides a contemporary update on the complexities of using information technology in the tourism industry. It examines IT applications in all sectors including airlines, travel intermediaries, accommodation, food service, destinations, attractions, events and entertainment. Fully updated throughout and organised around the stages of the visitor journey, the book reviews how tourists are using technologies to support decision-making before their trip, during their travels and at the destination.

The book is accompanied below by lecture slides for each chapter, to aid lesson planning.

Instructors and students can also access learning objectives , discussion points and assessment material (chapter-based modules containing 10-15 interactive questions comprising ‘fill the blank’, true/false and MCQs) via the CABI Academy.

Chapter 1 -  Introduction to Tourism and Information Technology

Chapter 2 -  The Digital Tourism Landscape

Chapter 3 -  Travel Intermediaries and Information Technology

Chapter 4 -  The Internet and the Tourist

Chapter 5 -  Social Media and Tourism

Chapter 6 -  Mobilities and Information Technology

Chapter 7 -  Aviation and Information Technology

Chapter 8 -  Surface Transport and Information Technology

Chapter 9 -  Hospitality Information Systems

Chapter 10 -  Technology Enabled Visitor Experiences

Chapter 11 -  Destination Management and Smart Destinations

Chapter 12 -  Sustainable Tourism and Information Technology

Chapter 13 -  The Future of Information Technology and Tourism

Access to this book’s assessment material is via CABI Academy and requires an enrolment key found in the book itself (sixth word in the section ‘Tour Operators’ in Chapter 3 Travel Intermediaries and Information Technology).

A note on using CABI Academy:

First time users will need to create an account and then – using the enrolment key – will have instant access to the learning objectives, discussion points and assessment material for Tourism Information Technology 3e (in addition to other freely available CABI Academy courses).

Special thanks to Mattia Rainoldi, Salzburg University of Applied Sciences, and Pierre Benckendorff, The University of Queensland, for preparing the assessment material.

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Open resources

A number of CABI’s books are enhanced by open resources. These materials are available for students and…

Tourism Information Technology

Journal of Tourism Futures

ISSN : 2055-5911

Article publication date: 23 July 2020

Issue publication date: 23 July 2020

Ivanova, M. and Ivanov, S. (2020), "Tourism Information Technology", Journal of Tourism Futures , Vol. 6 No. 2, pp. 201-202. https://doi.org/10.1108/JTF-06-2020-153

Emerald Publishing Limited

Copyright © 2020, Maya Ivanova and Stanislav Ivanov.

Published in Journal of Tourism Futures . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Information technologies have invaded our world and proliferated in our everyday life. Tourism, as a very information-intensive industry, uses most of the technological innovations throughout all its sectors and activities. The third edition of Benckendorff, Xiang and Sheldon’s book, Tourism Information Technology , provides an excellent insight into this matter.

The book consists of 13 chapters, distributed into five parts – Part I: understanding tourism information technology; Part II: looking and booking; Part III: travelling; Part IV: staying and playing; and Part V: issues and trends. The structure of the book, as explained in the first introductory chapters, follows the customer experience through the guest cycle in the tourism industry, i.e. searching for information, making bookings, traveling to the destination, staying at the destination and returning from the destination. Then, each of the specific technologies is deeply explored (internet – chapter 4, social media – chapter 5, mobilities – chapter 6). Afterwards, the authors shift to the tourism subsectors, namely, aviation (Chapter 7), road transport (Chapter 8), accommodation/hospitality (Chapter 9), visitor attractions and experience (Chapter 10) and finish with the destination management (Chapter 11). Surprisingly, the travel intermediaries’ chapter (Chapter 3) is situated right in the beginning – probably because the initial phase of the guest cycle starts with searching and preliminary booking – activities typical for the travel intermediaries.

In the introductory chapter (chapter 1), the authors clearly state the aims, main terms and chapter outline of the book. By providing the large span of information technologies and diverse tourist services, it is a very useful description of the book’s subject and precise definition of its scope. After the general overview, the second chapter “The digital tourism landscape” delves deeper, exploring the participants’ role in the tourism value chain, all in the context of information and communication technologies. The historical background strongly contributes to the better understanding of the digital ecosystem. All the other chapters start with similar evolutionary approaches, thus facilitating reader’s perception and consistent flow of the text.

From a pedagogical perspective , the book is constructed as a primary source for students because each chapter includes learning objectives in the beginning and key terms and discussion questions at the end. In addition, the useful sites and case studies complement the presented overview with appropriate examples from the real business world. We appreciate very much the comprehensive approach regarding information technologies, especially the accessible language, the detailed definition of each new term/technology item and the explanation of its role within the digital tourism ecosystem. The numerous figures and charts additionally enhance the visualisation of the text.

Furthermore, the authors analyse technologies’ application in all processes and procedures, taking place within a particular sector. For example, in the aviation chapter (Chapter 7), after the overview and structure of the industry, the book delves deeper to the particular systems, where information technologies are used – such as fleet management, crew scheduling systems and flight scheduling systems. Although these are very specific details, which require closer knowledge of the sector and may not be a direct subject of the book, the explanation elucidates in a very comprehensive way what happens inside, what stands behind the technologies and how they are actually involved. The numerous industry insights, case studies and QR codes, leading to certain websites or particular cases and videos in internet, bring additional value to the reader and at the same time, enlarge the knowledge provided to readers.

The last part of the book deals with sustainability issues (Chapter 12) and projected trends for the future of information technology and tourism (Chapter 13). Table 12.1 makes a thorough summary of all IT applications in sustainable tourism. Another good insight is the detailed analysis of the three sustainable premises, presented as certain activities in the context of tourism. Thus, the sustainability concept get much more particularity in environmental, social and economic sense.

From a futures perspective , the last chapter identifies 10 trends that would determine the future development and usage of the information technologies: ubiquitous artificial intelligence, fragmentation of information, digital elasticity, storytelling, the empowered smart traveller, big data and analytics, smart machines, material technologies, open systems and convergence. All of them, in line with the previous chapters, are analysed within the traveller experience and the tourism industry. This chapter provides a sound ground for future research on technologies in travel, tourism and hospitality. The book is written in a comprehensive and easy to understand manner. The logical flow and numerous examples and insights make it an excellent source for students, lecturers, researchers and practitioners.

About the authors

Maya Ivanova is based at Varna University of Management, Varna, Bulgaria.

Stanislav Ivanov is based at Varna University of Management, Varna, Bulgaria.

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• Forthcoming
• Title Subjects
• Science, Technology & Industry
• Tourism Studies

Teachers, request exam copy:

Tourism Information Technology Edition 3

• Publisher CABI
• Published 8th April 2019
• ISBN 9781786393432
• Language English
• Pages 416 pp.
• Size 7.5" x 9.625"
•     Request Exam Copy
• Description
• Table of Contents

This third edition of Tourism Information Technology provides a contemporary update on the complexities of using information technology in the tourism industry. It examines IT applications in all sectors including airlines, travel intermediaries, accommodation, food service, destinations, attractions, events and entertainment. Fully updated throughout and organized around the stages of the visitor journey, the book reviews how tourists are using technologies to support decision making before their trip, during their travels and at the destination. It: - Provides comprehensive and up to date coverage of all key topics in tourism information technologies - Covers new areas such as (among others) augmented and virtual reality, robotics, smart destinations, disruptive innovation and the collaborative economy, crowdsourcing for sustainability, online reputation management and big data - Incorporates a wealth of pedagogic features to aid student learning, including key models and concepts, research and industry insights, case studies, key terms, discussion questions, and links to useful websites. Accompanied online by instructor PowerPoint slides, multiple choice questions and further case studies, this book provides a comprehensive and learning-focused text for students of tourism and related subjects.

PART I: Understanding Tourism Information Technology 1: Introduction to Tourism and Information Technology 2: The Digital Tourism Landscape PART II: Looking and Booking 3: Travel Intermediaries and Information Technology 4: The Internet and the Tourist 5: Social Media and Tourism PART III: Traveling 6: Mobilities and Information Technology 7: Aviation and Information Technology 8: Surface Transport and Information Technology PART IV: Staying And Playing 9: Hospitality Information Systems 10: Technology Enabled Visitor Experiences 11: Destination Management and Smart Destinations PART V: Issues And Trends 12: Sustainable Tourism and Information Technology 13: The Future of Information Technology and Tourism

Pierre J. Benckendorff

Pierre J. Benckendorff is Senior Lecturer, University of Queensland, Australia.

Zheng Xiang

Zheng Xiang teaches at Virginia Tech.

Pauline J. Sheldon

Pauline J. Sheldon is Professor Emerita at the University of Hawaii's School of Travel Industry Management where she also served as Dean. Currently her research specializes in social entrepreneurship and corporate social responsibility in tourism, sustainable tourism, knowledge management in tourism, and wellness tourism. In 2008 she won the UNWTO Ulysses prize for contributions to knowledge in sustainable tourism. In 2009 she was recognized with the International Travel and Tourism Research Association Lifetime Achievement Award, and in 2013 received the Hannes Werthner Lifetime Achievement Award from the International Federation for Tourism and Information Technology (IFITT) for her work in tourism information systems. She has been a Visiting Professor at Vienna University of Economics, Institute of Tourism and Leisure Studies, the University of Balearic Islands in Mallorca, Spain, Hue University in Vietnam, University of Ljubljana, Slovenia, and Bond University in Australia where she won the Dean's Excellence in Teaching Award. Dr. Sheldon has served as President of the International Academy for the Study of Tourism. She co-founded the Tourism Education Futures Initiative (TEFI) with Dr. Daniel Fesenmaier; and chaired the BEST Education Network. She has worked with UNWTO, APEC International Center for Sustainable Tourism, and the World Bank. She is also a teacher with the Art of Living Foundation.

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Tourism Information Technology (Cabi Tourism Texts)

Description.

This third edition of Tourism Information Technology provides a contemporary update on the complexities of using information technology in the tourism industry. It examines IT applications in all sectors including airlines, travel intermediaries, accommodation, food service, destinations, attractions, events and entertainment. Fully updated throughout and organized around the stages of the visitor journey, the book reviews how tourists are using technologies to support decision making before their trip, during their travels and at the destination. It:

- Provides comprehensive and up to date coverage of all key topics in tourism information technologies - Covers new areas such as (among others) augmented and virtual reality, robotics, smart destinations, disruptive innovation and the collaborative economy, crowdsourcing for sustainability, online reputation management and big data - Incorporates a wealth of pedagogic features to aid student learning, including key models and concepts, research and industry insights, case studies, key terms, discussion questions, and links to useful websites.

Accompanied online by instructor PowerPoint slides, multiple choice questions and further case studies, this book provides a comprehensive and learning-focused text for students of tourism and related subjects.

Other Books in Series

Service Quality in Leisure, Events, Tourism and Sport (Cabi Tourism Texts)

Introduction to Tourism Transport (Cabi Tourism Texts)

Planning for Tourism: Towards a Sustainable Future (Cabi Tourism Texts)

Practical Tourism Research (Cabi Tourism Texts)

Facilities Management and Development for Tourism, Hospitality and Events (Cabi Tourism Texts)

Entertainment Management: Towards Best Practice (Cabi Tourism Texts)

Rural Tourism and Enterprise: Management, Marketing and Sustainability (Cabi Tourism Texts)

Leisure, Sport and Tourism, Politics, Policy and Planning (Cabi Tourism Texts)

Strategic Management in Tourism (Cabi Tourism Texts)

Research Methods for Leisure, Recreation and Tourism (Cabi Tourism Texts)

Food and Wine Tourism: Integrating Food, Travel and Territory (Cabi Tourism Texts)

Ecotourism: Principles and Practices (Cabi Tourism Texts)

The Entertainment Industry: An Introduction (Cabi Tourism Texts)

Events Management (Cabi Tourism Texts)

Tourism Information Technology [op] (Cabi Tourism Texts)

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Smart Cities Moscow

On May 25-26, Moscow will host the International Smart Cities Forum. The Forum’s goal is to create a platform for communication and interaction of ICT specialists, representatives of international business community and world cities’ officials on the implementation of advanced digital solutions in all areas of urban life.

Technologies in the fight against Covid-19, 5G, Big Data, Digital Services, E-government, Artificial Intelligence, Smart Grids, Food Tech – this is an incomplete list of topics to be presented by leading international experts at the Forum venues. The Forum is supported by The Government of Moscow, Department of Information Technologies.

Sergey Sobyanin

Edouard Lysenko

Vasily Brovko

Dr. Patricia McCarney

Anton Uvarov

Jose Antonio Ondiviela Garcia

Oleg Berkovich

Chen Jining

Domen Rakovec

Loriana Sardar

Georgy Lagoda

Dmitriy Volkov

Evgeniy Kolbin

Boris Glazkov

Marija Zima-Bockarjova

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James Patava

Peter Zhukov

Elena Rakhimova

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Patrik Antoni

Aisha Bint Butti Bin Bishr

Yuri Vlasov

Daria Radchenko

Alisa Prudnikova

Olga Dvoretskaya

Daria Zhenikhova

Max Kraynov

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Igor Akulinin

Alexander Khanin

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Graduate Education

Office of graduate and postdoctoral education, three minutes, infinite impact: 2024 3mt winners announced.

Apr 10, 2024

The ninth annual Georgia Tech Three Minute Thesis (3MT) competition concluded on Friday, April 5, where 12 scholars shared their groundbreaking research through electrifying and informative three-minute-long presentations. Four graduate students emerged victorious, each winner taking home research travel grants.

Congratulations to the 2024 Three Minute Thesis Winners:

Master's Winner

Karina Bhattacharya, MID, Industrial Design

The master’s category winner won a $1,000 research travel grant.

Overall  Ph.D. Winner

Alexandra Patterson, Ph.D. Bioengineering

First Runner Up

Kantwon Rogers, Ph.D. Computer Science

Second Runner Up

Valeria Juarez, Ph.D. Biomedical Engineering

The first-place Ph.D. winner won a $2,000 research travel grant. The Ph.D. first runner-up

Won a $1,500 research travel grant, and the second runner-up won a $1,000 runner-up grant.

First runner-up, Kantwon Rogers also won the coveted People's Choice award,

which earned him an additional $500 research travel grant.

The Office of Graduate Education coordinates tech’s 3MT competition in partnership with the Center for Teaching and Learning (CTL), The Naugle Communications Center, and the Language Institute. For more information about this year’s 3MT Competition, visit grad.gatech.edu/3mt .

Brittani Hill

Marketing Communications Manager

Office of Graduate Education

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Air Travel Consumer Report: January 2024 Numbers

WASHINGTON – The U.S. Department of Transportation (DOT) today released its Air Travel Consumer Report (ATCR) on airline operational data compiled for the month of January 2024 for on-time performance, mishandled baggage, and mishandled wheelchairs and scooters. The ATCR is designed to assist consumers with information on the quality of services provided by airlines. 

DOT expects that airlines will operate flights as scheduled and that when they do not, airlines will provide consumers the services consumers have been promised when a flight is canceled or delayed because of an airline issue. After a two-year DOT push to improve the passenger experience, the 10 largest airlines now guarantee meals and free rebooking on the same airline and nine guarantee hotel accommodations. Consumer-friendly information regarding airline commitments to their customers is available on the Department’s Airline Customer Service Dashboard at FlightRights.Gov. DOT also pushed airlines to provide fee-free family seating and rolled out a new family seating dashboard that highlights the airlines that guarantee fee-free family seating, and those of the 10 largest that do not, making it easier for parents to avoid paying junk fees to sit with their children when they fly.

In addition, DOT is improving transportation for individuals with disabilities. In July 2023, DOT finalized a rule which requires airlines to make lavatories on new, single-aisle aircraft more accessible. Then, in February 2024, DOT issued a proposal to address other barriers that Americans who use a wheelchair encounter when it comes to air travel by, among other things, mandating enhanced training for airline employees and contractors who physically assist passenger with disabilities and handle passengers’ wheelchairs.

Further, when necessary, DOT takes enforcement action against airlines and ticket agents that fail to comply with the Department’s aviation consumer protection requirements. In 2023, DOT issued the largest fines in the history of the consumer protection office. This includes a $140 million penalty against Southwest Airlines for failing passengers during the 2022 holiday meltdown. That penalty, which was in addition to over $600 million DOT already ensured was refunded by Southwest to passengers, requires Southwest to establish a $90 million compensation system for future passengers affected by significant delays and cancellations. DOT has helped return more than $3 billion in refunds to travelers since the pandemic began.

Flight Operations

The 560,352 flights operated in January 2024 were 99.56% of the 562,845 flights operated in January 2023. Operated flights in January 2024 were down 0.44% year-over-year from the 562,845 flights operated in January 2023 and down 7.18% month-over-month from 603,756 flights operated in December 2023. 

In January 2024, the 10 marketing network carriers reported 582,425 scheduled domestic flights, 22,073 (3.8%) of which were canceled. In December 2023, airlines scheduled 606,218 domestic flights, 2,462 (1.3%) of which were canceled. In January 2023, airlines scheduled 573,877 domestic flights, 11,032 (1.9%) of which were canceled.

On January 6, 2024, the Federal Aviation Administration (FAA) ordered the grounding of Boeing 737 MAX aircraft with a mid-cabin door plug installed operated by U.S. airlines or in U.S. territory. On January 24, 2024, FAA cleared all such aircraft to return to service after each aircraft operator successfully completed a new inspection process approved by the FAA. Alaska Airlines and United Airlines have informed the DOT that the grounding of the 737 MAX9 aircraft with the mid-cabin door plug installed has impacted their on-time statistics during this reporting period.

January 2024 On-Time Arrival

In January 2024, reporting marketing carriers posted an on-time arrival rate of 72.8%, down from both 83.9% in December 2023 and from 76.2% in January 2023.

Highest Marketing Carrier On-Time Arrival Rates January 2024 (ATCR Table 1)

• Delta Airlines Network – 77.8%
• Allegiant Air – 75.6%
• Southwest Airlines – 73.9% 

Lowest Marketing Carrier On-Time Arrival Rates January 2024 (ATCR Table 1)

• Alaska Airlines Network – 64.7%
• JetBlue Airways – 69.5%
• American Airlines Network – 70.5%

January 2024 Flight Cancellations

In January 2024, reporting marketing carriers canceled 3.8% of their scheduled domestic flights, higher than both the rate of 0.4% in December 2023 and the rate of 1.9% in January 2023. 

Lowest Marketing Carrier Rates of Canceled Flights January 2024 (ATCR Table 6)

• Hawaiian Airlines – 1.5%  
• Spirit Airlines – 1.5%   
• JetBlue Airways – 1.7%    

Highest Marketing Carrier Rates of Canceled Flights January 2024 (ATCR Table 6)

• Alaska Airlines Network – 11.9%    
• United Airlines Network – 6.9%    
• Southwest Airlines – 3.1%    

Complaints About Airline Service

The release of air travel service complaint data in the Air Travel Consumer Report (ATCR) has been delayed primarily because of the continued high volume of complaints against airlines and ticket agents received by the Office of Aviation Consumer Protection (OACP) and the time needed to review and process these consumer complaints. The Department is investing in modernizing its system for handling consumer complaints with the support of a Technology Modernization Fund (TMF) investment to improve the customer experience for the tens of thousands of consumers who use the system each year and enable OACP to more effectively engage in oversight of the airline industry. 

As DOT modernizes its system, given the continued high volume of air travel service complaints concerning airlines and ticket agents, DOT has revised how it processes consumer complaints received after June 1, 2023. From June 2023 until the date its system is modernized, DOT intends to revise the ATCR to display consumer submissions (complaints, inquiries, and opinions) as opposed to complaints for this period. The Department will continue to display civil rights complaints in the ATCR in a similar manner as before and anticipates publishing submission and civil rights complaint numbers in spring.

Tarmac Delays

In January 2024, airlines reported 71 tarmac delays of more than three hours on domestic flights, compared to five tarmac delays of more than three hours on domestic flights reported in December 2023. In January 2024, airlines reported six tarmac delays of more than four hours on international flights, compared to zero tarmac delays of more than four hours on international flights reported in December 2023. 

Airlines are required to have and adhere to assurances that they will not allow aircraft to remain on the tarmac for more than three hours for domestic flights and four hours for international flights without providing passengers the option to deplane, subject to exceptions related to safety, security, and Air Traffic Control related reasons. An exception also exists for departure delays if the airline begins to return the aircraft to a suitable disembarkation point to deplane passengers by those times.

The Department investigates extended tarmac delays.

Mishandled Baggage

In January 2024, reporting marketing carriers handled 37.4 million bags and posted a mishandled baggage rate of 0.75%, higher than both the rate of 0.50% in December 2023 and the rate of 0.73% in January 2023.

The Department began displaying the mishandled baggage data as a percentage (i.e., per 100 bags enplaned) in January 2022. This is consistent with the manner that the mishandled wheelchairs and scooters rate is calculated and displayed.     In the prior three calendar year reports (2019 to 2021), the Department calculated the mishandled baggage rate based on the number of mishandled bags per 1,000 checked bags. 

Mishandled Wheelchairs and Scooters

In January 2024, reporting marketing carriers reported checking 56,659 wheelchairs and scooters and mishandling 836 for a rate of 1.48% mishandled wheelchairs and scooters, higher than the rate of 1.39% mishandled in December 2023 and lower than the rate of 1.47% mishandled in January 2023.

As described earlier, in February 2024, the Department announced its proposal to strengthen its rule implementing the Air Carrier Access Act (ACAA) to address the serious problems that individuals with disabilities using wheelchairs and scooters face when traveling by air that impact their safety and dignity, including mishandled wheelchairs and scooters and improper transfers to and from aircraft seats, aisle chairs, and personal wheelchairs. The proposed rule would require that airlines meet strict standards in accommodating passengers with disabilities by setting new standards for prompt, safe, and dignified assistance, mandating enhanced training for airline employees and contractors who physically assist passengers with disabilities and handle passengers’ wheelchairs, and outlining actions that airlines must take to protect passengers when a wheelchair is damaged during transport. The proposed rule also clarifies that damaging or delaying the return of a wheelchair is an automatic violation of the ACAA.

Bumping/Oversales

Bumping/oversales data, unlike other air carrier data, are reported quarterly rather than monthly. For the fourth quarter of 2023, the 10 U.S. reporting marketing carriers posted an involuntary denied boarding, or bumping, rate of 0.20 per 10,000 passengers, lower than both the rate of 0.35 in the third quarter of 2023 and the rate of 0.30 in the fourth quarter of 2022.

Incidents Involving Animals

As part of its IT modernization, DOT’s Office of Aviation Consumer Protection (OACP) is improving the options for covered carriers to submit their monthly and annual Reports on Incidents Involving Animals During Air Transport. While the new system is being developed, OACP is permitting covered carriers to delay submission of reports on incidents involving animals during air transport. Annual data on such incidents will be published when DOT receives carriers’ complete submissions of the 2023 data. 

In January 2024, carriers reported zero incidents involving the death, injury, or loss of an animal while traveling by air, equal to the zero reports filed in both December 2023 and in January 2023.

Consumers may file air travel consumer or civil rights complaints online at   https://secure.dot.gov/air-travel-complaint , or they may mail a complaint to the Office of Aviation Consumer Protection, U.S. Department of Transportation, C-70, W96-432, 1200 New Jersey Avenue, SE, Washington, DC 20590.

The ATCR and other aviation consumer matters of interest to the public can be found at https://www.transportation.gov/airconsumer .

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Trump Media Stock Plunges 18%, Extending Recent Losses

Funds that bet on a fall were set to profit as the parent of Truth Social came under renewed pressure after it registered new shares for a potential sale.

By Matthew Goldstein and Joe Rennison

Shares of former President Donald J. Trump’s social media company plunged on Monday after the company filed to register the potential sale of tens of millions of additional shares.

Trump Media & Technology’s stock fell 18.3 percent, erasing hundreds of millions of dollars from the company’s market value — and putting a dent in Mr. Trump’s majority stake. Since a surge in its first days of trading as Trump Media, which lifted the value of the company to about $8 billion at one point last month, the company’s shares have dropped by around 60 percent.

Trump Media was expected to register the potential sale of new shares after the completion of its merger last month with Digital World Acquisition Corp., a cash-rich shell company known as a SPAC. Companies that merge with SPACs, or special purpose acquisition companies, typically file a registration statement a few weeks after the deal is completed for the sale of additional securities held by early investors.

In the filing, Trump Media — the parent company of Truth Social — registered more than 146 million shares of stock that could be sold, along with 21 million shares that were converted after the exercise of warrants, which enable an investor to buy shares at a preset price. When a SPAC goes public, it issues warrants to investors that can later be converted into shares.

Even though the company said the investors weren’t planning to sell those shares immediately, investors reacted to the notion that if a flood of new shares were to hit the market, they could depress the company’s stock price.

Also included in the filing were an additional 36 million shares given to Mr. Trump as part of an “earnout” bonus based on the company’s stock price. With those additional shares, Mr. Trump has about 115 million shares of Trump Media, or 65 percent of the company’s stock.

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Trump Media will not receive any of the proceeds from shares sold by investors, but it could receive tens of millions in cash from the exercise of the warrants.

Trump Media said in a news release on Monday that the filing did not imply that the shareholders listed in the statement were planning to sell shares. The company also noted that the filing did not alter a six-month restriction Mr. Trump and other big shareholders from selling their shares before sometime in late September.

The registration statement must still be reviewed and approved by the Securities and Exchange Commission before any stockholders can sell shares.

Some investors had been betting that Trump Media’s stock price would collapse after the expected share registration was filed, seeking to profit from the move. Fund managers including Marshall Wace and Zazove Associates have been large holders of Trump Media’s warrants, according to regulatory filings. Those warrants have been trading at a much lower price than Trump Media’s shares, in part because they were yet to be registered and also because of the ferocious rally in the stock when it first began trading.

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The trade helped drive a spate of demand from investors looking to bet on a decline in the company’s share price, making Trump Media one of the most shorted stocks in the United States. Even before the filing arrived, Trump Media shares had fallen more than 50 percent since their first day of trading after the merger, amid doubts about Truth Social’s ability to generate revenue and profit.

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The warrants have also fallen sharply over the past couple of weeks, down roughly 50 percent since the start of the month.

Short-sellers bet that the price of a stock will fall by borrowing shares of a company and selling them into the market, hoping to buy them back later at a lower price, before returning the shares to the lender and pocketing the difference as profit.

Matthew Unterman of S3 Partners, a research firm, said a potential flood of new shares coming into the market would make it easier for short-sellers to bet against shares of Trump Media. At the moment, he said, Trump Media is one of the more costly stocks to short because the company doesn’t have a large supply of shares available to borrow.

Matthew Goldstein covers Wall Street and white-collar crime and housing issues. More about Matthew Goldstein

Joe Rennison writes about financial markets, a beat that ranges from chronicling the vagaries of the stock market to explaining the often-inscrutable trading decisions of Wall Street insiders. More about Joe Rennison

Digital transformation and innovation in tourism events

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• Published: 12 April 2024

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Walhidayah, I. Digital transformation and innovation in tourism events. Inf Technol Tourism (2024). https://doi.org/10.1007/s40558-024-00286-z

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