Expedia vs Thomas Cook, the E-Tourism

Topics: Tourism, Internet, World Tourism Organization Pages: 11 (3408 words) Published: March 1, 2012
INTRODUCTION

During the1980’s, travel agencies had a real success; it represented the good way to have good Holiday without losing time with organisation. The job of these agencies is to offer travels in function of customer needs and requests, completely organised (flight, hotel…). Since few years, the tourism industry is completely changing; new players and way of information appear, reducing the place of traditional agencies. Internet is the origin of this mutation, developing the concept of e-tourism. This new way of preparing and booking a travel has totally transformed the travel market in sociologic terms: changing of customer behaviour; and in economic term: reduction of costs, low price, competitiveness… Bit by bit, the place of offline agencies become less important, creating a disruption in the market. These agencies have seen their sales fell but also and above all their market share. We will see in a first part, a presentation of the tourism market, its history; its figures accompanied of concrete examples, France and United States. Then we will analyse the disruption, what represents the disruptor; who is the victim; and then the consequences on the market and finally the reaction of the victim.

I/ PRESENTATION OF THE TOURISM INDUSTRY

A) Tourism industry, some figures
With time, new technology and economic growth, new far destinations are open, allowing the development of tourism and favouring global economy (job and company creation). International tourism represents in 2010, 940 million of tourist arrival, 6.6% more than in 2009. In financial term, international tourism represents $ 919 billion of receipt, in comparison to 2009 with $851 billion. The growth on this sector in spite of crises and environmental problems, continue to increase: - 25 million of tourist arrival in 1950

- 277 million in 1980
- 435 million in 1990
- 675 million in 2000
- 940 million in 2010

This continual growth is a part due to the growth of developing countries like China or India. In 1990, there was 55.8 million of tourist arrival in Asia, against 203.8 in 2010; in term of comparison UE represents 476.5 million .

In 2010, 51% of tourist arrival are for holidays and leisure; 15% for business and 27% for other reasons (family, medical…) For the same year, 51% of international travellers are travel by plane; 41% by car; 6% by boat and 2% by train .

Principal destination in term of visitPrincipal destination in term of receipt 1/ France1/ USA
2/ USA2/ Spain
3/ China3/ France
4/ Spain4/ China
5/ Italy5/ Italy

Actors of the tourism industry are divided in two parts:
- Suppliers of products and services: airplane companies; hotel; car rent companies… - Intermediaries: travel agencies and online travel companies, tour-operators; supermarkets… With the development of Internet, intermediaries are evolved, reducing the market share of traditional agency and increasing the part of online company. Competition has increase allowing to develop a price competition, more favourable for customers. Travel agency must adapted in order to stay competitive and follow the evolution.

B) Story of travel agency
Thomas Cook, international travel agency is the first one to have organised a travel in train for a group of about 540 people in 1841 in United Kingdom. In 1845, he opens his first agency, the first travel agency. The concept is to offer travel in train or steamboat toward various destinations: Europe, USA... With the development of this concept the company integrate hotels at its portfolio, allowing sell and organise all the travel. This concept is to take over a competitor, Club Med in 1950, offering fly and complete stay with various activities. Before the Second World War, tourism industry stay reserved to wealthy people in spite of the obtaining of paid leave in 1914 in US and 1936 in France . Consequently, tourism become accessible at a larger population after the second world war thanks to...
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