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1 – 10 of over 16000Rob Law, Rosanna Leung, Ada Lo, Daniel Leung and Lawrence Hoc Nang Fong
The purpose of this paper is to reexamine several issues about disintermediation from the perspectives of tourism product/service suppliers (hotels) and traditional intermediaries…
Abstract
Purpose
The purpose of this paper is to reexamine several issues about disintermediation from the perspectives of tourism product/service suppliers (hotels) and traditional intermediaries (travel agencies), considering the move of the current distribution landscape toward disintermediation. Internet and mobile technologies offer various tools for consumers to search and purchase products/services from suppliers directly. Consequently, the necessity and role of traditional intermediaries in the industry become questionable.
Design/methodology/approach
In all, six focus group interviews were conducted to collect primary data from ten managers of three traditional travel agencies and 11 managers from three business hotels in Hong Kong, which is a major travel destination in Asia with many world-class hotels and tourism facilities.
Findings
Despite their different business backgrounds, the interviewees agreed on the increasing importance of Internet technology in the distribution of tourism products. The interviewees also posited that traditional travel agencies are still needed to serve certain customer groups, albeit their role may have little importance.
Practical implications
Practitioners should adapt to technologically induced changes to remain competitive in the e-business era.
Originality/value
This paper provides several original contributions. First, this paper supplements the extant literature by revealing how modern practitioners perceive disintermediation in the tourism and hospitality industry. Second, this paper is the first to investigate the disintermediation issue from the perspectives of tourism product/service suppliers and intermediaries. Finally, this paper provides a reference for industry practitioners to establish adequate strategies that take advantage of Internet technology.
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The purpose of this paper is to investigate the unexplored part of the historical evolution of travel agencies in Spain, from the end of the 20th century to the 21st century. When…
Abstract
Purpose
The purpose of this paper is to investigate the unexplored part of the historical evolution of travel agencies in Spain, from the end of the 20th century to the 21st century. When examining promotion strategies, the study focuses on the change in marketing and public relations strategies based on the incorporation of information and communication technologies and, in particular, the use of the internet.
Design/methodology/approach
This study draws on a qualitative analysis of the different strategies used by traditional agencies and online agencies in Spain from the mid-19th century to the present. This analysis shows how traditional communication strategies survived at the beginning of the 21st century, together with other more innovative ones, while some disappeared, being eliminated by the new online travel agencies, which created a particular conception of marketing and communication. This paper is divided into the following parts: the introduction; the beginnings of travel agency promotion in the 20th century; the evolution of promotion in travel agencies since the late 20th century; communication innovation at the beginning of the 21st century; online travel agencies; and conclusions.
Findings
This study shows that although online agencies did not manage to position themselves with a large turnover, they generated advantages and sharpened their imagination to create a new, more economical advertising model, eliminating the costs of public relations and advertising campaigns. In addition, they allowed clients to have greater independence when making their reservations, while enabling them to monitor the tastes of potential and real clients and add blogs so that consumers could express their degree of satisfaction with the product or services provided by the agency.
Originality/value
The focus of attention is the travel agency sector in Spain and, more specifically, communication. Studies on travel agencies and their marketing have been very scarce and partial, impeding professionals in the tourism sector from having a broad vision to direct their promotional and public relations actions. The originality of this article lies in its making a comparison between two different visions of tourism marketing and, specifically, of travel agencies, that is, the traditional vision and the innovative one. It thus helps all professionals in the sector to value and improve their marketing and communication strategies.
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Grace Chan and Basak Denizci Guillet
Increasing operational costs and narrowing profit margins are forcing many Hong Kong travel agencies out of business. Studies have demonstrated the strategic importance of revenue…
Abstract
Increasing operational costs and narrowing profit margins are forcing many Hong Kong travel agencies out of business. Studies have demonstrated the strategic importance of revenue management (RM) implementation for travel agencies that wish to remain competitive. Hong Kong travel agencies should learn from these examples and modify their existing practices. As travel agencies have many of the characteristics of traditional and non-traditional RM industries, they should be able to adopt the RM operational strategies that have been successful in other industries. This study’s methodology is qualitative; in-depth interviews are conducted with 10 industrial professionals. The results provide valuable insights into RM implementation in Hong Kong travel agencies. The implementation strategies discussed here include the use of perishable inventories, predictable demand, segmentation, reservations made in advance, limited capacity and appropriate cost and pricing structures, all of which aid in profit optimisation. The results indicate that RM can improve travel agencies’ competitive stance and enhance profit maximisation. RM practitioners need to fully understand the concept and techniques and have the determination to develop and promote the system among personnel at every level of the travel agency.
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Rob Law, Kenith Leung and RJames Wong
This paper examines tourist perceptions of the potential for the elimination of travel agencies in the presence of the Internet. The opinions of 413 tourists on making…
Abstract
This paper examines tourist perceptions of the potential for the elimination of travel agencies in the presence of the Internet. The opinions of 413 tourists on making transactions through both Internet‐based (hereafter, online) and traditional distribution channels were analysed. Experimental results illustrated that tourists still used professional services and advice offered by travel agencies. Tourists also agreed that more information could be found through the Internet. Following the findings, the paper suggests that both online and traditional distributional channels can coexist in the future.
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This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…
Abstract
This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.
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James Malitoni Chilembwe and Victor Ronald Mweiwa
Several tourism destinations are using social media (SM) marketing more than traditional marketing in the developed countries. The increasing use of technology has replaced the…
Abstract
Several tourism destinations are using social media (SM) marketing more than traditional marketing in the developed countries. The increasing use of technology has replaced the role of travel intermediary. Most of the travellers in developed countries are no longer using travel agencies for their services. Many bookings are done online using electronic devices either at office or home. It is, therefore, a fact that SM has come to stay. However, the situation is contrary to some developing countries due to several reasons; for example, unreliable source of energy, communication, poor infrastructure and lack of competition. Most of developing countries depend on tourists from developed nations to consume their tourism destination products. Moreover, the modern travellers are no longer travelling in the dark. They want to have prior knowledge about their destinations. They check online product offerings, certification and destination labels. A modern tourist is becoming a more responsible traveller. SM plays a big role by providing information about many tourism destinations. Nevertheless, there are ongoing debates regarding the usefulness, future and survival of traditional travel agents despite the fact that there are threats from online travel agents and the increasing use of SM. This chapter is a case study of Malawi as a tourist destination. It critically discusses and analyses the impact of SM as a marketing tool. It also analyses the benefits and challenges of the travel agents, and finally confirms that there is a need to embrace technological change in travel and tourism industry in the developing nations.
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Leticia Suárez Álvarez, Rodolfo Vázquez Casielles and Ana María Díaz Martín
The current work aims to analyze the role of commitment perceived by the consumer in the maintenance of long‐term relationships. The context of analysis chosen is the tourism…
Abstract
The current work aims to analyze the role of commitment perceived by the consumer in the maintenance of long‐term relationships. The context of analysis chosen is the tourism sector, more specifically the relationships that retail travel agencies establish with their consumers. The study tests a conceptual model via a system of structural equations using the statistics package EQS 6.1 for Windows. The results corroborate the importance of the consumer’s trust in the travel agency and the consumer’s perception of the firm’s commitment, because this commitment acts as an antecedent of trust and creates the conditions for the firm to achieve a stable portfolio of customers.
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Mauro Dini, Simone Splendiani, Laura Bravi and Tonino Pencarelli
This paper aims to deepen understanding of the role played by new technological tools used in customer–travel agency (TA) interactions by analysing the TA owner/managers'…
Abstract
Purpose
This paper aims to deepen understanding of the role played by new technological tools used in customer–travel agency (TA) interactions by analysing the TA owner/managers' perceptions, pre- and post-Covid-19, regarding the effectiveness of in-store traditional and innovative tools.
Design/methodology/approach
This exploratory study is based on a questionnaire-based survey conducted among Italian TAs and distributed via email from September 2020 to January 2021.
Findings
The study highlights how, even among TAs, the role of in-store technology is gradually taking on greater importance, and it delves into the specific business and socio-demographic factors that seem to cause differences among agencies.
Research limitations/implications
The study focuses on the Italian context, which does not allow for any generalisations. Furthermore, it is only the travel agent perspective that is observed and not the consumer's.
Originality/value
In addition to helping to bridge the literature gap, this study on in-store technologies focuses on the TAs sector, where human resources and human relationships play a decisive role in customer experience and interaction. The paper investigates the travel agents' point of view regarding the introduction of new in-store technologies; it also highlights their growing adoption and use, overall, despite the travel catalogue still remaining the main tool for interacting with customers. The study also shows how the advent of Covid-19 has increased travel agents' propensity to use digital technologies.
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Michael Doane, Kenneth Hendricks and R.Preston McAfee
The Internet has enabled consumers to act as their own travel agents and to verify independently the accuracy of the information provided by airlines through the CRSs and travel…
Abstract
The Internet has enabled consumers to act as their own travel agents and to verify independently the accuracy of the information provided by airlines through the CRSs and travel agents. As a result, the relationships between consumers and the suppliers of air-travel information have been radically altered, and we document these changes. We identify the relevant market for air-travel information, which includes CRSs, online travel agencies, and the websites and call centers of individual carriers. We determine market concentration and market shares using the Herfindhal-Hirschman Index. Based on our analysis, we argue that there is no longer any need to regulate independent CRSs. However, airlines that own CRSs continue to have an incentive to withdraw their flight and fare information from rival CRSs and, to prevent this from happening, the mandatory participation rule adopted in 1992 should be maintained.
Uma Thevi Munikrishnan and Abdullah Al Mamun
Empirical evidence is insufficient to explain which factors contribute to the survival and competitiveness of traditional travel agencies (TTAs). Malaysian TTAs are rather slow in…
Abstract
Purpose
Empirical evidence is insufficient to explain which factors contribute to the survival and competitiveness of traditional travel agencies (TTAs). Malaysian TTAs are rather slow in information communication technology (ICT). However, several initiatives by the government were directed to enhance ICT adoption. Furthermore, the non-ICT factors to remain competitive by the TTAs were not sufficiently studied. The purpose of this study is to close the gap by examining the perceived factors that influence the survival and competitiveness of Malaysian TTAs.
Design/methodology/approach
This study used qualitative multiple case studies method to ensure that the issues were explored through multiple lenses. Semi-structured interviews and direct observation are used to collect data from 15 TTAs and industry experts in Malaysia.
Findings
This study found that the key to remain competitive and relevant is to co-exist with technology and embrace proactive strategies (i.e., competitive aggression, public relation, dependence development, smoothing, cooperative, and manoeuvring strategies).
Originality/value
Travel and tourism industries have long been acknowledged to provide an impetus for the economic growth of developing and developed economies. TTA is the key component in the global tourism activities in promoting tourism products and services. However, they are threatened by the continuous growth in ICT. Past literature reviewed TTAs that operate in the highly competitive and volatile environment due to various external forces such as technological advancement, fierce competition from the virtual travel agencies and global economic condition. This study provided empirical evidence contributed to the survival and competitiveness of TTAs in Malaysia.
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