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.     

Buyer Characteristics Among Users of Various Travel Intermediaries

SUMMARY

As online travel purchases increase, travel intermediaries must change to meet consumer demands. A survey was conducted to identify travelers' selection criteria and expectations of traditional travel agents. Responses from 382 individuals were compared by their methods of purchasing travel arrangements, including those who purchased online, offline, or both. Differences were found among the groups in terms of travel agent selection criteria and expectations; however, the groups were similar in their frequency of travel and number of information sources used. Results and conclusions identified strategies for travel intermediaries to attract and retain clientele.     

Grounded Theory of Leisure Travel

Abstract

This article reviews grounded theory studies available in the literature that deepen understanding of leisure travel decisions and tourism behaviors. The article includes a set of core propositions that are examined empirically. The reported study includes applying the “long interview method” and “theoretical sampling” in completing personal, face-to-face, interviews of travel parties at the moment of just ending their visits to a Canadian Province. The empirical analysis focuses on acquiring process data held in the minds of customers-that is, the analysis illustrates emic-based storytelling of what was planned and what actually happened that led to what specific outcomes. Achieving such holistic, case-based views of leisure travel decisions and tourism behavior provides a rich, deep and nuanced-filled understanding of the causes and consequences of such behaviors.     

The Japanese Travel Life Cycle

Summary

This paper offers an alternative way of segmenting a non-western travel market, namely, the Japanese outbound market. The segmentation schema comprises several institutionalised forms of travel likely to be undertaken by a Japanese individual in the course of his or her life. Coined the ‘travel life cycle,' the concept fits Japanese society well due to the highly organized and group-oriented patterns of travel that have emerged over the past one hundred years. While this form of segmentation is unlikely to be usefully applied to western travel markets, its application in the Japanese context may suggest that it has relevance when examining the travel patterns of other tradition-bound and group-oriented Asian travel markets such as Korea, China or Indonesia. The paper's conceptual contribution lies in the implicit suggestion that particular cultures may develop and exhibit unique forms of consumption behavior that lie outside the conceptual framework normally adopted by western academics and marketing practitioners. Manageri-ally, the paper suggests ways by which tourism operators and tourism promotion bodies can more efficiently and effectively target Japanese travellers according to the stage of travel life cycle.     

Quality Selection Criteria of Travel Intermediaries

ABSTRACT

The study explores the selection criteria conducted by travel agencies, evaluating travel intermediaries (destination tour operator) founded on the visionary perspectives of product managers and front-line employees (tour leaders) of Taiwanese travel agencies. Statistically, data accumulated from the 36 product managers and 36 tour leaders by the critical incident technique indicates that local coaches, drivers, and local guides are monumental on group package tour (GPT) service sectors. Meanwhile, another critical issue being scrutinized is the selection scenarios, as to which prices are exponentially executed by product managers, whereas tour leaders tend to be destination tour operator qualities-oriented fundamentally. In order to enhance the destination tour operator service qualities, the research conducts relatively objective selection criteria in selecting the well-qualified and appropriate travel intermediaries as commissioners on the cutting edge travel agencies domain. More substantially, the revealed scenarios of destination tour operators supply the populously rivalous market, China, a relatively credential reference on selecting the well-suited Travel Intermediaries.     

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.     

Terrorism,Economic Uncertainty and Outbound Travel from Hong Kong

Abstract

This paper reports on the findings of three consumer surveys conducted in Hong Kong examining and outbound travel frequency and future travel intentions. The surveys were conducted in December, 2000, October, 2001, some three weeks after the September 11th terrorist attacks, and in April/May 2002, thus enabling the researchers to track the immediate and medium term impacts of the 9–11 incident on outbound tourism. The study revealed that a dramatic softening in intentions to travel was reported, yet no apparent differences were noted in overall travel participation rates before and six months after the event. However, consumers have modified their travel activities, taking shorter trips and expressing greater concerns about the safety of travel. The study further reveals that consumer confidence in the safety of outbound travel is returning, but more enduring economic concerns are beginning to affect travel intentions.     

Emotions,Mood, Flow and Motivations to Travel

Abstract

Three theories, Csikszentmihalyi's flow (1975), static versus dynamic orientation (Wicklund 1986) and mood theory were used to understand and test the impact of emotions as antecedents on motivations to travel. Significant correlations between discreet emotions and mood were found. The state of flow regarding respondents' levels of skill versus the challenges faced at work as a measure of static versus dynamic orientation resulted in explaining motivational tendencies to travel.     

The Situational Influence of Travel Group Composition

Abstract

A substantial amount of statistics and articles in travel magazines indicated that family vacation travel is one of the major worldwide trends. However, very limited empirical research has been dedicated to this special market segment. This study examined Japanese family travelers to Taiwan by comparing and contrasting them with other travel companionship groups including traveling with friends and traveling alone. The importance of travel group composition segmentation was explained and conceptualized through the understanding of the value of social groups from sociology perspective. The results indicated that Japanese family travelers exhibited unique characteristics when traveling. Family travelers tended to be more motivated by learning oriented themes and participated enthusiastically in activities that facilitated experiential learning as well as total physical relaxation. The “traveling with friends” and “traveling solo” segments tended to be seeking more of activities that had strong entertaining and socializing undertones. The traveling solo group appeared to be the most evasive or the least understood in what their needs and preferences were. Marketing implications were discussed.     

A Cross-Cultural Comparison of Travel Push and Pull Factors

Abstract

Tourism marketers are confronted with the dilemma of whether standardization or the tailoring of services, products and marketing programs for specific markets is more effective and efficient. It remains to be addressed in tourism research whether travelers from varying cultural backgrounds seek different travel benefits and have different preferences for travel products and services, and to what extent they are similar in their travel behaviors. This research study used national household travel surveys conducted by the Canadian Tourism Commission and U.S. Tourism Industries for a cross-cultural comparison of two different countries, the United Kingdom (U.K.) and Japan. Results showed that travelers from these two countries had different travel motives and benefit-seeking patterns. From a marketing perspective, the branding and positioning of a destination for U.K. and Japanese long-haul travel markets will be more effective if the destination marketing organization (DMO) projects different images within its advertising campaigns. These images should reflect the different travel motivations and benefits desired by the two groups of travelers.     

Consumer's Perceptions and Adoption of Online Buying for Travel Products

Abstract

This study examines: (a) the relationship between the advantages and disadvantages of electronic travel shopping, in comparison to traditional in-store shopping from high street travel agents, and consumers' perception of the innovation characteristics (relative advantage, compatibility and complexity) of e-shopping, and (b) the relationship between consumer's perception of these characteristics and their intention to adopt electronic travel shopping. These relationships are examined using a sample of 127 households in Greece. The results indicate that the advantages and disadvantages of physical efforts and time pressure related to traditional in-store travel agency shopping positively influence consumer's perception of the characteristics of e-shopping. The results further show that consumers' perception of the relative advantage and compatibility of electronic travel shopping positively influence their intention to adopt e-shopping. It is also explored whether income, education and age moderate these relationships.     

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.     

Marketing Strategies for Last-Minute Travel and Tourism

Abstract

Travel and tourism arranged at the “last minute” has become a growing trend among consumers today. Responding to this trend, more and more travel/tourism firms are offering services catering to consumers seeking last-minute travel and tourism opportunities. Yet, clearly, not all last-minute travellers are alike. Variability in last-minute consumer characteristics such as motivations, lifestyles, and benefits sought suggests opportunities for astute marketers and revenue managers to collaborate in further segmenting the last-minute market and developing more effective marketing and revenue management strategies to potentially increase the firms' revenues, profitability, and customer satisfaction. Toward this end, this article evaluates and discusses marketing strategies, marketing mix elements, and segmentation approaches that may be most appropriate for more effective marketing and revenue management in the last-minute travel and tourism market.     

Advancing Theory for Understanding Travelers' Own Explanations of Discretionary Travel Behavior

Abstract

This article uses narrative, case study analysis to examine consumer leisure and travel behavior. Adopting an interpretive research paradigm, the article examines travel behavior using face-to-face interviews of traveler informants, applies the folk theory of the mind, ecological systems theory, and the fits-like-a-glove model. Findings from the investigation indicate that most individual and household leisure and travel-relating behavior results from a “causal historical wave” in which an array of events come together, interact, and cause individuals to participate in certain behaviors and that most travel behavior is the result of automatic thinking rather than a rational or constructive process.     

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.     

Determinants of Domestic Travel Expenditure in South Korea

Summary

This study examines factors affecting domestic Korean tourist expenditure per person. Independent variables include family size, Per Capita Gross National Product (GNP), number of cars, number of working hours, number of years of education, previous year's domestic travel expenditure, and exchange rate. A 21-year historical data were used in the study. Two estimation methods, principal components regression and ridge regression, were employed in this study to eliminate the problems of multicollinearity caused by Ordinary Least Squares (OLS) method. The empirical results show that number of working hours, family size, and number of years of education turned out to be important factors affecting domestic travel expenditure.     

Modeling International Travel Arrangements for Taiwanese Travelers: Potential Fits

Abstract

This paper presents a choice model of international travel arrangements for potential Taiwanese FIT (Foreign Independent Travel) travelers. Previous studies were based mostly on package vacations, with little attention given to FIT travelers. Recent years have indicated a transition toward FIT. Since this transition is likely to continue, it is important for travel and tourism organizations and for marketers to understand FIT individuals. This study distinguishes potential FIT travelers from non-FIT travelers, identifies variables useful in making this prediction, and provides recommendations to travel and tourism organizations of host countries. The findings indicate that Taiwanese FIT travelers are likely to be younger, male, highly educated, budget conscious, travel with a larger party size for purposes of meeting interesting and friendly local people, stay for longer periods of time, and have taken many trips in the last three years that in volved spending at least four nights away from home.     

Contract Disputes in Travel and Tourism: When the Online Deal Goes Bad

Abstract

This article explores e-commerce contract liability and its impact on the travel and tourism industry. Topics such as, what constitutes a legally-binding contract, and the various methods of accepting contracts online, such as click wrap and electronic signatures, are discussed. Jurisdiction issues particularly pertinent when considering liability related to travel and tourism products are addressed. Numerous tourism related liability cases are cited. The article concludes with recommendations for travel and tourism e-commerce businesses for limiting contract liability.     

Service Quality and Customers' Willingness to Pay More for Travel Services

Abstract

Increasingly sophisticated and price conscious consumers have combined with forces of globalisation and electronic commerce to create new challenges for travel agents. To maintain efficiency and profitability, travel agents need to know the links between service quality and customers' willingness to pay more (WTPM). These links are explored through measuring customer perceptions (N = 122) of service quality, loyalty and WTPM. The results revealed firstly that while many consumers were able to pay more for travel services, fewer were willing to do so. Secondly, overall service quality and its underlying dimensions were positively associated with selected WTPM items. These findings support and extend previous studies on the service quality-behavioural intentions link and provide practical implications for the travel industry in relation to a differentiated price and service strategy.     

The Importance of Food Safety in Travel Planning and Destination Selection

Summary

This study investigates the strength of the relationship between the destination choices of respondents and the perceived risk of food-borne illnesses, as well as respondents' sources of information regarding food safety prior to traveling. Results indicate that food safety was of secondary importance to respondents with frequent travelers more willing to discount the use of food safety in their travel decisions. Female respondents were likely to regard food safety as more important than their male counterparts. Africa was the top region that most respondents would avoid due to food safety concerns. Friends and relatives, travel agents, and magazines and newspapers were the most common sources turned to for health and food safety information. Travel agents were not perceived as a reliable source of food safety information.