The Disintermediation and Re-Intermediation of Travel Agents
The effects of Disintermediation and Re-intermediation on travel agents
Introduction
This report will discuss about how travel agents market is influenced by disintermediation and re-intermediation and what is the impact on industry and travel agencies.
The travel industry, is the substance in the sphere of information technology, is beyond any doubt a fascinating area in terms of the options given by Internet. One of the considerable increses in electronic market is travel bookings noted by Berstein and Awe, 1999 (cited by Bill Anckar, 2003) and likewise ’’the use of Internet by prospective travelers to research and plan their trips has proliferated.’’ (Smith 2000) therefore a specific example of a tumultuous consequence on the new technology is the travel industry.( Harris, L. and Duckworth, K, 2005).
Over the years the Internet has rapid become an outstanding new channel for customers needs. Information and communication technology progressions has elaborate the tourism distribution system with different substitutions by adding extra ‘’layers of intermediation’’ (Kracht and Wang, 2009), supporting what Buhalis and Law, (2008) were saying: substitute the conventional intermediaries by making a direct link between suppliers and consumers supplied by technology. Furthermore, it is also necessary to define re-intermediation process or cyber-mediation defined by Bennet and Buhalis, 2003(cited by Bennet and Lai, 2005) as ‘’ the utilization of ICT and internet tools for the development of either new intermediaries that enable them to re-engineer the tourism distribution channel’’. In other words the Internet introduces possibilities to travel agents for defining their position in the distribution chain.
Consumers, through the use of the Internet will become more self-sufficient in the service delivery process. The way we do business it will be changed, as well. Consequently, the Internet will affect the way consumers develop expectations. Ultimately, the role of
Introduction
This report will discuss about how travel agents market is influenced by disintermediation and re-intermediation and what is the impact on industry and travel agencies.
The travel industry, is the substance in the sphere of information technology, is beyond any doubt a fascinating area in terms of the options given by Internet. One of the considerable increses in electronic market is travel bookings noted by Berstein and Awe, 1999 (cited by Bill Anckar, 2003) and likewise ’’the use of Internet by prospective travelers to research and plan their trips has proliferated.’’ (Smith 2000) therefore a specific example of a tumultuous consequence on the new technology is the travel industry.( Harris, L. and Duckworth, K, 2005).
Over the years the Internet has rapid become an outstanding new channel for customers needs. Information and communication technology progressions has elaborate the tourism distribution system with different substitutions by adding extra ‘’layers of intermediation’’ (Kracht and Wang, 2009), supporting what Buhalis and Law, (2008) were saying: substitute the conventional intermediaries by making a direct link between suppliers and consumers supplied by technology. Furthermore, it is also necessary to define re-intermediation process or cyber-mediation defined by Bennet and Buhalis, 2003(cited by Bennet and Lai, 2005) as ‘’ the utilization of ICT and internet tools for the development of either new intermediaries that enable them to re-engineer the tourism distribution channel’’. In other words the Internet introduces possibilities to travel agents for defining their position in the distribution chain.
Consumers, through the use of the Internet will become more self-sufficient in the service delivery process. The way we do business it will be changed, as well. Consequently, the Internet will affect the way consumers develop expectations. Ultimately, the role of
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