Travel agents, traditionally the sector of the travel and tourism industry that has held a
strong position of power by providing an important link in the distribution channel
between principals and consumers, are now finding their business under threat. Rapid
changes in consumer demand, information technology and business systems are
impacting on travel agency viability around the world.
Increasing distribution costs have seen travel principals aiming to reach their
customers with distribution that is much more direct than in the past, cutting the travel
agent out of the system, or at the very least, reducing agency commissions. Strategic
alliances have also given suppliers - particularly airlines - marketing synergies, and
again reduced their need to rely on agents to distribute their product. Further
synergies have come from the use of diagonal integration, a process whereby firms
use information technologies to logically combine services for best productivity and
most profitability; for example, Internet booking plus electronic ticketing.
In addition the motivations and consumer behaviour of travellers are changing. The
&64;new tourists&64; want experiences, not just a vacation, are more likely to know what
they want, to do their own pre-purchase research, and to have a stronger preference
for tailor-made arrangements. This market is independent, and more likely to rely on
the Internet as a source of tourism information than to rely on the services of a travel
agent to plan their trip.
This thesis analyses the changes in the travel and tourism distribution system that
point towards the apparent disintermediation of travel agents, and makes
recommendations for new marketing strategies for travel agents, so that they may
retain their viability into the twenty-first century.
| Identifer | oai:union.ndltd.org:ADTP/218663 |
| Date | January 2002 |
| Creators | Watson, Pamela, n/a |
| Publisher | University of Canberra. Information Management &Tourism |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | ), Copyright Pamela Watson |
Page generated in 0.0023 seconds