Tourism and Travel Distribution
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Tourism and Travel Distribution: the Travel Agent's Perspective
By Dr Marion Bennett and Dr Dimitrios Buhalis, Centre for eTourism Research (CeTR), School of Management, University of Surrey, Guildford
Jan 2003
Summary
The Internet has revolutionised the tourism industry and has generated a number of challenges and opportunities for all players. For travel agents, in particular, the Internet is changing the industry structure and consumer behaviour. Significantly, technology forms part of the strategy to enable travel agents to maintain a presence in the chain of distribution.
If agents are to survive, technology will have to become an essential tool incorporated in the future business strategy determining their competitiveness. In this sense, technology is both a threat and an opportunity, as travel agencies need to readjust to the new realities. Re-intermediation via the Internet and IDTV (Interactive Digital Television) present potential opportunities for innovative players who utilise the emerging tools.
This article analyses the key Internet trends in relation to the travel industry. It also considers strategies travel agents can employ to ensure their future survival.
The role of the travel agent
It has long been recognised that tourism and technology are a highly compatible couple. The nature of service distribution revolves around the notion of intangibility and perishability, therefore, the manner in which information is communicated is highly important.
Historically, in the tourism chain of distribution, this role has largely been undertaken by the travel agent who acted as the information broker between the supplier of services and consumers. The travel agent was, therefore, the early beneficiary of developments in technology, such as the CRS and GDS. More recently, developments in Internet distribution and, in particular, e-commerce have threatened to take over the role of these systems.
The
Tourism and Travel Distribution: the Travel Agent's Perspective
By Dr Marion Bennett and Dr Dimitrios Buhalis, Centre for eTourism Research (CeTR), School of Management, University of Surrey, Guildford
Jan 2003
Summary
The Internet has revolutionised the tourism industry and has generated a number of challenges and opportunities for all players. For travel agents, in particular, the Internet is changing the industry structure and consumer behaviour. Significantly, technology forms part of the strategy to enable travel agents to maintain a presence in the chain of distribution.
If agents are to survive, technology will have to become an essential tool incorporated in the future business strategy determining their competitiveness. In this sense, technology is both a threat and an opportunity, as travel agencies need to readjust to the new realities. Re-intermediation via the Internet and IDTV (Interactive Digital Television) present potential opportunities for innovative players who utilise the emerging tools.
This article analyses the key Internet trends in relation to the travel industry. It also considers strategies travel agents can employ to ensure their future survival.
The role of the travel agent
It has long been recognised that tourism and technology are a highly compatible couple. The nature of service distribution revolves around the notion of intangibility and perishability, therefore, the manner in which information is communicated is highly important.
Historically, in the tourism chain of distribution, this role has largely been undertaken by the travel agent who acted as the information broker between the supplier of services and consumers. The travel agent was, therefore, the early beneficiary of developments in technology, such as the CRS and GDS. More recently, developments in Internet distribution and, in particular, e-commerce have threatened to take over the role of these systems.
The