Asiatravel.com is a company providing travel services over the internet. The e-business was established in 1995, and aimed to provide a one stop service for customers to plan their travel itinerary, for both business and leisure. According to the company’s chairman, Mr Boh Tuang Poh in his annual report 2004 and 2012, after the SARs and bird flue crisis in 2003, Asiatravel.com revenue had increased from SGD 39.6 million to over SGD100 million in 2011. (AsiaTravel.com, 2004). The company had grown so much, since it was listed in 2001 and showed the growing trend of e-commerce over the last decade. It proves that people are becoming more and more comfortable to do internet transactions to make purchases. E-commerce or e-business offers a huge market for businesses to take advantage of. It has revolutionized the way people plan their travels.
This essay describes how Asiatravel.com makes use of e-commerce for its B2B business, how it includes the good elements in the website, payment system and security, as well as identifies other elements that the company can consider to make the website better.
Business to Business to Consumer model (B2B2C)
With reference to the e-commerce model of Asiatravel.com, by the nature of the transactions and the relationships among participants, Asiatravel.com can be classified as Business to Business to Consumer (B2B2C) e-commerce model. B2B2C is described as a combination of B2B and B2C transactions for complete product or service transactions. It is also a collaboration process that creates mutually beneficial service and product delivery channels. According to C Janssen in an article from Techopedia, “B2B2C is a business model where e-commerce businesses and portals, reach new markets and customers by partnering with consumer oriented product and service businesses”. (Cited. http://www.techopedia.com/definition/23169/business-to-business-to-consumer-b2b2c)
Business to Business Model
In B2B transactions, Asiatravel.com and its business partners collaborate to create demands and customer oriented product. According to Asiatravel.com annual report 2012, the company collaborated with over 100,000 hotels worldwide and more than 200 airlines to generate customer sales through its website. (Asiatravel.com 2012 Annual Report, pp.10) Surprisingly, it has a huge number of business partners worldwide and this has benefitted the company in its E-commerce business. Hotels and airlines, through partnership with Asiatravel.com, are able to generate sales of products and services which are more customer-oriented from the website. For instance, the website acts as a central location, which provides services for airline electronic ticketing and instant confirmation of hotel bookings. Consumers need not do separate bookings for both services, thus improving the services from both the airline and the hotels. This is supported by Wrthner et al. (2004, pp103), who mentioned that in the B2B transaction, businesses combine forces and promote mutually beneficial products and services.
Business to Customer Model
Asiatravel.com, in turn sells the product and services from the airline and hotels to the en-consumer. This can be classified as B2C e-commerce model, which stands for business to consumers. Asiatravel.com thus acts as channel to locate potential customers on behalf of the hotels and airlines, to increase their customer base, This, in turn, will increase the market and revenue for both hotels and airlines. This B2C model adopted by Asiatravel.com can also be considered as an E-tailing. As described by Mr. Ravi in his lecture on 21 March 2013, Electronic Retailing (E-tailing) is the selling of retail products online and usually applies to B2C transaction. Asiatravel.com then combines the different products and services from other businesses and then sells them as a package, resulting in the B2B2C model. The model creates a one-stop-service which is available anytime and...
Cited: http://www.webs.com/blog/2012/02/28/6-key-elements-to-a-good-website/, 12 April 2013).
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