Traditional Travel Agents vs Online Travel Agents
Introduction
The conditions of the global travel agency industry have significantly changed over recent years, mainly because of the development of the new technologies, electronic commerce and the major changes in tourism consumer behaviour.
Increasingly, people are booking their travel over the Internet, directly from the suppliers or on electronic retailer’s websites affecting traditional travel agencies on the high street. Further, the market starts to show signs of overload because of the high competition.
Due to all of these factors, the industry is in an uncertain situation and high street travel agencies are worrying not only about how to secure their profits, but in many cases of how to survive. How can they gain competitive advantage over the travel suppliers who once used to be their partners, and who are now trying to cut them out of the distribution chain?
Some sources predict that the end is in sight for the traditional travel agencies because of the competition with their online rivals. However, other sources report that consumers are slowly turning back to high street travel agents seeking a human touch. ABTA (2012) reveal that "consumers value the help of a human being and the reassurance of dealing with someone face-to-face".
In order to deal effectively with this problem of disintermediation, the topic has been researched with the purpose of investigating the future situation concerning high street travel agents.
Main body/ discussion
According to the latest figures from ABTA (2012) consumers are turning back to the high street travel agents. Its latest Consumer Travel Trends Survey has found a significant jump in bookings through agents over the last three years. It has also recorded a drop in consumers booking holidays direct with airlines and hotels.
This shift has been explained by confusion about the overload of choice on the internet and increasing concerns among consumers about being properly protected when travelling.
According
The conditions of the global travel agency industry have significantly changed over recent years, mainly because of the development of the new technologies, electronic commerce and the major changes in tourism consumer behaviour.
Increasingly, people are booking their travel over the Internet, directly from the suppliers or on electronic retailer’s websites affecting traditional travel agencies on the high street. Further, the market starts to show signs of overload because of the high competition.
Due to all of these factors, the industry is in an uncertain situation and high street travel agencies are worrying not only about how to secure their profits, but in many cases of how to survive. How can they gain competitive advantage over the travel suppliers who once used to be their partners, and who are now trying to cut them out of the distribution chain?
Some sources predict that the end is in sight for the traditional travel agencies because of the competition with their online rivals. However, other sources report that consumers are slowly turning back to high street travel agents seeking a human touch. ABTA (2012) reveal that "consumers value the help of a human being and the reassurance of dealing with someone face-to-face".
In order to deal effectively with this problem of disintermediation, the topic has been researched with the purpose of investigating the future situation concerning high street travel agents.
Main body/ discussion
According to the latest figures from ABTA (2012) consumers are turning back to the high street travel agents. Its latest Consumer Travel Trends Survey has found a significant jump in bookings through agents over the last three years. It has also recorded a drop in consumers booking holidays direct with airlines and hotels.
This shift has been explained by confusion about the overload of choice on the internet and increasing concerns among consumers about being properly protected when travelling.
According