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.     

A content analysis of travel agency web‐sites in Korea

The Internet has become a dominant issue in today's tourism environment. This paper is to provide large travel agencies in Korea with a better understanding of their Web‐based competitive environment. A content analysis of the top 60 travel agencies Web‐sites in Korea suggests that many travel agencies do not develop their own Web‐sites and although travel agencies are using the Web, they have not, as yet, fully utilized capabilities of Web‐sites. This study also suggests some implications for successful cyber tourism marketing, including the establishment of a Web‐site, on‐line selling, customer supports, and cyber marketing mix strategy on the Web. Limitations and further research issues are also suggested.     

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.     

Constructing a risk management indicator model for travel agencies: a resource integration perspective

ABSTRACT

This study integrated resource-based theory and resource dependence theory, and introduced risk management on Taiwan's travel agencies. First, through in-depth interviews with experts and content analysis, preliminary items were generated. Second, using the modified Delphi method to converge expert consensus, and 7 facets with 37 items was formulated. Next, the criteria in the various levels were weighted through the Analytic Hierarchy Process and ranked. This study result showed that priority operating risks for Taiwan's travel agencies were financial risks, competing risks and supply chain risks. This study found can be used by travel agencies in risk management and competitive strategies.     

Measuring E-Service Quality for Online Travel Agencies

Online travel agencies face intense competition, and thus have a great need to evaluate the e-service quality of their websites to succeed or even just to survive. The present study explores the underlying dimensions used by online customers to evaluate the e-service quality of online travel agencies, as well as the relationship of these dimensions to customer satisfaction and the repurchase intention, using both qualitative and quantitative data collection techniques. Six underlying dimensions of e-service quality are identified from the results of factor analysis; namely, Website Functionality, Information Quality and Content, Fulfillment and Responsiveness, Safety and Security, Appearance and Presentation, and Customer Relationship. Furthermore, four dimensions—Website Functionality, Information Quality and Content, Safety and Security, and Customer Relationship—are found to significantly influence online customers' evaluation of overall satisfaction and their repurchase intention. The results of multiple regression analysis show Website Functionality to be the most powerful factor in predicting customer satisfaction and the repurchase intention. Implications of the study findings are discussed, and important guidelines for the development of online travel agencies are provided.     

THE DECISION MAKING IN SELECTING ONLINE TRAVEL AGENCIES: AN APPLICATION OF ANALYTIC HIERARCHY PROCESS

The emergence of Internet‐based distribution channels has created both opportunities for and challenges to the travel agencies. Based on the customer‐value perspective, this study focused on exploring the relative weights of the nine proposed fundamental travel products from an Internet perspective.

The study cohort comprised customers who had purchased room products from travel agencies websites, with data collected using a questionnaire survey. Customers were surveyed during a 3‐month period at Taipei International Airport. Excluding useless questionnaires resulted in 131 respondents, corresponding to a response rate of 18.71%.

We found that privacy, safety, and product quality were the three most important factors influencing customer purchases of room products on the Internet. The results of this study have some implications for travel agencies—companies will need to make a significant investment in website design of safety mechanism, and the greater the effort managers make to alleviate these concerns, the more likely it is that consumers will visit and buy products on their website.     

Evaluating Internet Portals—An Empirical Study of Acceptance Measurement Based

SUMMARY

Due to the great importance of the “information business” in the tourism industry, the Internet has seen increasing use in this field. This paper deals with the evaluation of Internet portals based on the example of the Austrian National Tourist Office, Austria's largest tourism service organization. The empirical analyses performed on the basis of 172 useable questionnaires demonstrate the high significance of the Internet in the work processes of tourism professionals. In this context, significant differences were identified between the four user groups examined in the B2B field (provincial tourism organizations, hotels, travel agencies/operators and associations) and between age groups and genders in the various dimensions of Internet portal evaluation. Usability and content play the most critical role as factors influencing the appeal of Internet portals, the users' satisfaction with them, and their frequency of return visits to a portal. The design of a portal has a significantly lower influence.     

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.     

Engage or quit? The moderating role of abusive supervision between resilience,intention to leave and work engagement

This study explores the impact of travel agency employees' resilience on their intention to leave and work engagement, and simultaneously examines whether abusive supervision moderates the aforementioned relationships. There is a clear research gap on this subject in the tourism and hospitality literature regarding the moderating affects of abusive supervision on the relationships between resilience, intention to leave and work engagement. The survey was conducted in 18 travel agencies in Taiwan. Of the returned samples, 459 questionnaires were complete. Multiple regression analyses are used to test the four hypotheses of this study. The results indicate that travel agency employees' resilience can reduce their intention to leave and enhance their work engagement. Also, abusive supervision has a moderating affect on the relationship between resilience and intention to leave. Implications for managers of travel agency, theoretical contribution of the paper and suggestions for future research regarding travel agency employees are discussed.     

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.     

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?     

What kind of marketing distribution mix can maximize revenues: The wholesaler travel agencies' perspective?

This study attempts to identify the variety of marketing channel efficiencies for marketing activities and sets up an optimal marketing distribution mix when using different distribution channels for wholesaler travel agencies. This research examines 12 large-scale travel agencies in Taiwan and offers seven direct and indirect distribution channels in order to establish an optimal marketing distribution mix and identifies the different forms of distribution involved. We also implement the analytic hierarchy process (AHP) to prioritize the seven main marketing distribution channels of travel agency: websites, cable TV, radios, professional magazines, retailer travel agencies, strategic alliances, and newspapers. Five criteria are categorized as a distribution channel selection: overall cost of the channel, target audience respondent rate, impression rates, transactional capabilities, and gross profit of the channel. The results show that Taiwan's wholesaler travel agencies adopt the retailer travel agency as their highest priority of channel selection, while travel agency websites hold it as their second priority. Transactional capabilities, gross profit of the channel, and overall cost of the channel are the top three favorable choices among the five criteria considered. This study proposes an innovative hierarchy model of marketing distribution mix to a wholesaler travel agency practitioner when making decisions in order to effectively exploit the different distribution mix, to maximize performances and revenues, and to overcome the traditional experience based on the shortcomings of the selection.     

Are small travel agencies ready for digital marketing? Views of travel agency managers

Digital technology provides new communication and distribution channel for both consumers and suppliers of travel services. Internet enables the travel agencies to adopt digital marketing to attract, inform and serve the travellers. However, in developing countries, the adoption of internet and digital marketing is slow. This study therefore finds it imperative to explore the triggering factors and perceived challenges of digital marketing by travel agencies - an entity whose perspectives do not find much place in the published academic literature. The qualitative study reveals the popular and trusted digital platforms used by the travel agencies. It also presents the factors that inhibit or assist the use of digital marketing by travel service managers.     

Information search behavior of Hong Kong's inbound travelers‐a comparison of business and leisure travelers

Abstract

The purpose of this study is to examine the information search behavior of Hong Kong's inbound tourists, in particular business and leisure travelers. The study clearly shows that business and leisure travelers demonstrate different information search behavior. ‘Personal experience,’ ‘Travel agency/tour company,’ ‘Airlines’ and the ‘Internet’ are most frequently relied upon by business travelers in searching for travel information, while leisure travelers prefer ‘Travel agency/tour company,’ ‘Friends or relatives,’ ‘Travel guide books,’ and ‘Personal experience.’ The study also reveals that the total number of information sources used and the length of pre‐trip planning lead‐time are significantly different between these two groups of travelers. First time travelers also have a longer pre‐trip planning lead‐time than repeat travelers. Furthermore, business and leisure travelers perceive the levels of influence of several information sources, including ‘Corporate travel departments,’ ‘Friends or relatives,’ ‘Travel guide books,’ and the ‘Internet,’ differently. These information sources were classified into five different dimensions, including ‘Media,’ ‘Neutral,’ ‘Retail,’ ‘Interpersonal,’ and ‘Personal experience.’ Analysis based on travelers' purpose for traveling and demographic information was performed. Leisure travelers perceive the level of influence of ‘Neutral’ sources as significantly higher, and those with lower household incomes perceived the level of influence of ‘Personal experience’ as lower. The results of this study will allow marketers in Hong Kong to better understand travelers’ information search behavior so that they can more effectively tailor their marketing strategies to these two major markets.     

The development of an optimal multiple channel strategy model for travel agencies' tourism business excellence

Research explaining how respective reasons for multiple channel strategies emerge in the travel agency industry is lacking. The study addresses this problem by considering internal organizing motivations and external environment uncertainties, exploring prevalent channel selection and performance techniques, and setting up indices for an optimal channel strategy model useful to travel agencies. From qualitative in-depth interviews with 15 experts and quantitative surveys of 304 travel agencies, we found that environmental uncertainty and organizational motivation crucially affect the intention of multiple channel selection that results in expected channel performance. There is an imperative need for Taiwan's travel agency industry to have a multiple channel strategy model.     

The revitalization of a heritage travel route: Canada’s Cabot Trail

ABSTRACT

Scenic travel routes have been developed to provide opportunities for tourism and recreation and to promote economic development especially in rural areas. However, maintaining an iconic attraction requires a collaborative destination management effort to keep it viable. The Cabot Trail, Nova Scotia, Canada is used in this paper as a case study for a scenic heritage route revitalization process. The Tourism Area Life Cycle model stages are used to illustrate the tourism development and decline on the Cabot Trail. This paper is a detailed documentation and analysis of the impact of a not-for-profit volunteer organization’s efforts to revitalize the Cabot Trail, through collaboration with local businesses, community groups and various levels of government and funding agencies. It draws upon the drive tourism, heritage trails and tourism revitalization literature. It fills a gap in the knowledge on heritage trails by illustrating a revitalization process that could be repeated in other areas experiencing similar issues.     

Culture As A Moderator Of The Relationship Between Service Quality And The Tourist'S Satisfaction With Different Distribution Channels

The present research analyzes the influence of culture on the relationship between each of the dimensions of service quality and tourists' satisfaction with the distribution channel, differentiating between travel agencies and the Internet. More specifically, the research seeks to understand the influence of the cultural dimensions of uncertainty avoidance and individualism/collectivism on the relationship between each of the dimensions of service quality and satisfaction, depending on the medium through which the service is purchased. The sample was made up of 600 tourists. Of these, 300 tourists (150 Spanish and 150 English) had purchased hotel accommodation for their last holiday via a travel agency, and the other 300 (150 Spanish and 150 English) had purchased hotel accommodation for their last holiday via the Internet. The findings indicate that there are variations in the relationships between each of the dimensions of service quality and satisfaction, and that these variations are shaped by the cultural dimensions of uncertainty avoidance and individualism/collectivism.     

Pre-travel planning orientations

Muzaffer Bodur, Associate Professor of Marketing at Bogazici University, and Ugur Yavas, Professor of Marketing at East Tennessee State University, describe the results and implications of a study carried out in Istanbul, Turkey, to distinguish between two tourist market segments — those preferring to travel in groups organized by travel agencies, and those preferring to make their own arrangements. The findings indicate differences in age, economic status and travel motivation between the two segments. Marketing by the travel agencies could be targeted at the independent-minded sector so as to encourage them to make use of travel agency facilities.     

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.     

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.