Travel Agents and Their Survival Thomas

Abstract

The travel agency industry depends upon commissions for a majority of its revenue. When these commissions decrease or stop the industry must change the means in which revenue is made. The Internet has caused a significant reduction in airline ticket sales and therefore has caused travel agencies to change. In addition travel agencies have reduced commissions paid to airlines thus causing more changes. There were four categories of travel agencies discussed in the article along with their adaptation styles. These types include (1) the independent operator of a small travel agency with very limited resources (2) the normal agency with 2 or 3 agents which does a substantial business (3) the larger agency that is high-tech and high touch and depends on automation and the Web to some extent (innovators) (4) agencies that are Web based with very little automation otherwise and who were technologically adaptable and saw opportunity in the Web. The study examines how agencies have adapted and prospered through this transitional period.     

Crisis Management During the SARS Threat

ABSTRACT

No one could have predicted the outbreak of SARS and its impact on the tourism business. Within a fortnight, hotel occupancy dropped by more than 80% to a single digit record. The hotel industry in Hong Kong was largely caught unprepared, and had to quickly work out ways in which to mitigate the loss of business and profit. This paper identifies the impact of SARS on hotels in Hong Kong, and the relevant human resources strategies used to tackle the crisis. The findings show that unpaid leave and involuntary separation were the most common immediate solutions adopted by the hotels.     

An Educational Game for Tourism and Hospitality Education

ABSTRACT

This paper presents an educational game where players act as travel agents to learn how a travel agency functions. They are provided with an uncertain environment in which they make strategic decisions aimed at maximizing their agency's wealth. Players are expected to make managerial decisions while experiencing how market structures and strategic decision-making can affect commerce within a simulated tourism and hospitality industry. The auction game offers students hands-on experience that assists them in understanding the functioning of markets in all aspects of business. Students are also given an opportunity to interact with team-players, to compete against other students, and to develop an appreciation of the pressures facing travel agencies.     

Developing a Novel Hybrid Model for Industrial Environment Analysis: A Study of the Gourmet and Tourism Industry in Taiwan

This study applies fuzzy set theory in attempting to evaluate important attributes of the tourism and gourmet business environment in Taiwan. This business environment is composed of various attributes that are difficult to measure. To overcome these challenges, we integrated the fuzzy Delphi method, the decision-making trial and evaluation laboratory method, and the analytic network process to evaluate the business environment. We found that the most significant aspect of the tourism and gourmet business environment is human resources and that the least significant aspect of this industry is market development. The most significant criteria are enhanced industry competitiveness and opportunities to develop the industry.     

Crisis Management—

SUMMARY

This paper reviews the crisis preparedness of the Greek passenger shipping industry after two widely publicized crises events (Superfast III and Express Samina). As far as Greece is concerned, the travel and tourism industry is one of the most significant contributors to the country's GDP at a rate of more than 10% and the country's passenger shipping industry contributes fundamentally to this figure. Overall findings suggest that both the State as well as the passenger shipping companies encompass crisis management tools and mechanisms to protect the industry, and the whole Greek tourism sector. This paper also identifies the 'ripple effect,' the wider implications a crisis can have on the business environment. Therefore the Faulkner (2001a,b) model for tourism disaster management framework is adapted to accommodate permanent changes enforced on the whole industry as an outcome of a crisis situation.     

Electronic Commerce

Abstract

Electronic commerce is booming because of faster and newer technologies being introduced. On-line travel will be a $20 billion industry by the year 2001, compared to $2.5 billion in 1998 (Travel Weekly, May 12, 1999). Based on this research, it is obvious that the Internet and E-commerce is affecting travel agencies' bottom line. Almost half of our respondents had heard of business closures and three fourths of southeastern agencies have adopted some type of service charge. Findings indicate that over one fifth of all customers are calling in with Internet-based researched travel itineraries. Does this finding foreshadow the future?     

The Effects of Travel Agent Characteristics on the Development of Trust: A Contingency View

Abstract

Trust is a key factor in the establishment of long-term relationships between travel agents and their customers. Prior research across service industries has documented that both “person-related” (e.g., empathy, politeness, and customer/service representative similarity) and “offer-related” (e.g., customization, competence, reliability, and promptness) service representative characteristics have an impact upon trust. However, the relative importance of these characteristics, and in some cases the direction of their relationships with trust has varied across studies. In this paper, we posit a contingency model of trust, suggesting that within the travel agency industry, the effects of the above variables on trust will be moderated by length of customer/service provider relationship. Our model is tested in a business-to-business context by means of a mail survey involving 487 small business owners. The small business owners provided data about their relationships with their travel industry service providers (i.e., agents). Our results demonstrate how corporate travel agencies can work toward the establishment of trust with their clients under varying market conditions.     

Cross-Cultural Impact and Learning Needs for Expatriate Hotel Employees in Taiwan Lodging Industry

Abstract

This study investigated specific cross-cultural issues affecting expatriate hotel employees in Taiwan's lodging industry to determine if Cross-Cultural Training (CCT) might help expatriate hotel employees adjust to a new culture and a new business environment. The most formidable task in the human resource area facing many global firms is the development of a cadre of employees and executives who have a deep understanding of the global market environment and the capability to transfer this knowledge into determined action (Pucik, Tichy, & Barnet, 1992). Employees who are expatriates in the hospitality industry are now more important than ever, as more hotel chains are seeking expansion opportunities into overseas markets. However, individuals who are sent overseas without adequate training often fail, and there are significant costs associated with this failure (Li, 1995).

The purpose of CCT is to increase the probability of an individual's adjustment into another culture (Cushner & Brislin, 1995). However, CCT could still be a valuable tool to help expatriates cope with culture shock even though the importance of expatriates being involved in CCT might not be as important as generally thought. Considering the cost, there may be other alternatives to facilitate expatriate adjustment. There does exist an inevitable trend of globalization. Developing coordination, training, and acculturation takes time, effort, and money. Clearly more research is warranted relative to expatriation in the hospitality industry.     

The Impacts of Terrorism

Abstract

After the downturn spiral in travel resulting from the Gulf War, marketing professionals had to become extremely creative in trying to attract travelers back to the recreation and tourism markets of the world. However, the events of September 11 inflicted far greater damage to the domestic travel market in the United States than did the Gulf War. The purposes of the study were to examine the perceptions and attitudes of people toward (1) the awareness and acceptance of security measures in travel and tourism, (2) the effects of the September 11 attacks on the tourism industry and industry responses, and (3) the changes of people's travel and recreation behaviors such as destination and activity choices. The individuals surveyed were asked questions concerning their perceptions regarding the effects of the September 11 attacks on the tourism industry and government/business responses, the relative importance of safety in destination/activity choice, security measures at airports, and the changes of their spending patterns, travel decisions, and leisure pursuits. The results of the study indicated that faculty members were more likely to experience the changes of their life, travel decision, and activity choices than students.     

The Impact of the Internet on Travel Agencies in Hong Kong

Abstract

In recent years, the travel and tourism industry has begun to develop Internet applications more extensively. Many travel service suppliers, such as hotels and airline companies, already use the Internet as a direct channel for customer reservations. The integration of the Internet into the travel and tourism industry, however, presents a challenge towards the traditional role of travel agencies. The purpose of this study is to find out what impact the Internet has on travel agencies in Hong Kong. Outcomes of this research indicate that travel agents generally have positive attitudes towards Internet applications, and the potential threat-disintermediation-has not yet affected the travel industry. Travel agents believe that they can take advantage of the Internet technology to provide value-added services for their customers. Outcomes of the present study also indicate that there are significant relationships between company size, age and some Internet attributes. Travel agencies should therefore pay more attention to these attributes when adopting Internet technology.     

INDUSTRY RESEARCH PERSPECTIVE

Abstract

Emotional intelligence, a type of social and personal intelligence, is important in managing interpersonal relationships and interactions, especially in the business sphere. Businesses that involve frequent customer contact and interaction, such as those in the field of tourism, can benefit from the application of multiple intelligences. This study examines how, and to what extent, emotional intelligence can benefit the travel and tourism industry. Seven tour operators were interviewed to assess their attitudes, opinions and observations about emotional intelligence and its application to the relationship between tourists and residents of a community. Results showed that all tour operators, to a certain degree, utilized emotional intelligence to offer more personalized travel solutions for tourists. It was found that understanding the cultural values and social etiquette particular to each travel destination was essential for healthy tourist-resident relations.     

Challenges in Mobile Business Solutions for Tourist Destinations—The Trial Case of St. Moritz

SUMMARY

Mobile business applications in tourism have been developed in the last years for various platforms and services. However, most of the applications have been tested in lab-like conditions. The article describes the trial case of St. Moritz, Switzerland. With the help of the Destination-Pilot acceptability, usability, and market potential for mobile information services have been tested in a real environment situation. The trial involves numerous visitors and tourist enterprises. The paper presents opportunities and limitations to so called mobile travel recommender systems. Strong emphasis is put on the methodical and technical challenges in the set up trial phase as well as on potential business models for exploitation.     

The Non-Equity Entry Mode Choices of International Hotel Organizations in New Zealand

ABSTRACT

Research on the non-equity entry mode choices of service firms is relatively limited. We use transaction cost economics and organizational capability perspectives to examine the determinants of choosing between franchising and management contracts in the hotel industry. In our analysis of four international hotel organizations operating in New Zealand, we found that both asset specificity and imperfect imitability helped in explaining the choice between franchising and management contracts. Behavioral uncertainty and host country management capabilities explained the entry mode choice of some hotel organizations but were not applicable for others that entered New Zealand via international strategic alliances or used strata titles. Finally, environmental uncertainty and the development of New Zealand’s business environment had a limited effect on choosing between franchising and management contracts.     

Forecasting Travel Patterns Using Palmore's Cohort Analysis

Summary

The purpose of this study was to introduce Palmore's (1978) method of cohort analysis and illustrate its potential application to tourism forecasting. Results suggested that (a) older cohorts participate less frequently in international travel than younger cohorts, (b) decrease in participation continues as one ages, and (c) changes in travel behavior are due primarily to period effects. With respect to the impact these findings may have on the tourism industry, the results suggest that marketers should monitor the aggregate changes taking place within targeted cohorts, and strategic planning should not be based on an assessment of differences between cohorts at one point in time.     

Effectiveness of the hotel websites in Singapore: A perspective from Business‐to‐Business (B2B) organisations

Internet marketing in hotels allows potential users to learn about the hotels, to tour hotel facilities and to compare prices among other benefits without directly interacting with a hotel representative. For some users, Internet is the first and only channel consulted when booking hotel accommodations. In the present age, Internet is increasingly becoming both an opportunity and a challenge for hotel marketers. The opportunity lies in reaching users directly through Internet sites. The challenge is to get the guests’ attention long enough to tell the marketers’ story (Connolly, Olsen and Moore, 1998). It has always been controversial as to how effective Internet marketing can be. Both firms and researchers have indicated that the measuring of effectiveness of Internet marketing is a multidimensional question. This study sought to examine the effectiveness of business‐to‐business Internet marketing in the hotel industry in Singapore through analysing the differences between the travel agents expectations of service and hotels’ understanding of those expectations. A total of 66 hotel websites in Singapore were scanned to give the features analysis. On the basis of the perception scores of 112 inbound travel agents, the study identified the gaps between the users and the website provider (hotel industry).     

Bleisure: motivations and typologies

ABSTRACT

The theme of motivation in travel and tourism research has been largely dominated by a leisure focus and has consequently failed to reflect the changing landscape of business travel. This paper focuses on exploring the motivations of different types of “bleisure travelers”: individuals who combine leisure with professional business obligations when abroad. We employ a multi-disciplinary mixed-methods approach, using photo-elicitation to identify and describe five types of bleisure. As existing theories of tourist motivations have mainly been developed in a leisure context, they fail to fully capture the nuanced scope and subtle context of business and leisure motives. We therefore draw upon experiential learning, boundary-less career theory, expectancy theory, and social capital theory in order to put forward contemporary insights on the nexus between business and leisure tourism.     

Which hotel guest segments reuse towels? Selling sustainable tourism services through target marketing

ABSTRACT

This paper reviews and evaluates the wide range of supply and demand side measures employed and tested to reduce the environmental impacts of tourist accommodation. It focuses on the importance of understanding market segments and their pro-environmental behaviour by exploring the personal and travel characteristics significantly associated with pro-environment beneficial change, empirically investigating hotel guest characteristics associated with higher towel reuse. Towel use per day, per room, is modelled according to the number of adults in the room, the number of children, and the type and origins of guests. Observed actual towel use by 204 travel parties spending 480 nights in a four-star hotel in Slovenia reveals key personal and travel characteristics of hotel guests which are predictive of towel reuse: their country of origin, booking methods used, being a business traveller and not being a family. Results point to a-priori market segments which could be given booking preference in periods of high demand to reduce hotel environmental footprints. Results also point to promising leverage points for interventions designed to modify the behaviour of hotel guests on site. The approach and methodology used could be applied to marketing pro-environmental concepts more widely across other sustainable initiatives.     

Trends Affecting the Convention Industry in the 21st Century

ABSTRACT

Competition among international convention destinations has increased dramatically in the past decade due to the heavy investment in infrastructure, marketing, and human resources, fuelled by the desire to reap the industry's significant economic benefits. This article details the major trends that are expected to shape the convention industry in two key markets-the United Kingdom and Australia-in the next five years. Using the Delphi technique, the study establishes principal business, social, technology, and political trends, discusses their impacts and highlights similarities and differences in the study results from the U.K. and Australia.     

The Leisure Behavior Paradox

Abstract

The literature does not fully explore why some people do not like to travel for pleasure. This exploratory study uses a secondary database to explore those who respond that they do not really like to travel for pleasure. The study then profiles those who travel and those who do not travel. Implications for the travel industry are discussed.     

Developing,Operating, and Maintaining a Travel Agency Website

SUMMARY

Travel agencies have increasingly utilized agency Websites on the Internet to enhance their marketing efforts. This exploratory study aims to provide an analysis of the Internet use by travel agencies in the United States. A survey conducted with 102 travel agency professionals collected primary data to examine the perceived value and contribution of a Website to the agency business, purposes for developing and operating a Website, and benefits and challenges faced in operating a travel agency Website. The results of this study not only identified various issues in developing, operating, and maintaining a travel agency Website but also made various suggestions to address those issues. Implications are discussed as to how travel agencies could better understand e-consumer behavior and effectively market their product offerings online.