Business to Business

Implementation of e-commerce in both business-to-business and business to consumer markets in the travel industry pose many challenges on the supply chain in a typical brick and mortar environment. Travelzoo.com, Cheaptickets.com, and Priceline.com are all B2B and B2C e-commerce travel companies. While these three entities are different from the typical brick and mortar travel agency with a storefront and face-to-face customer contact, this paper will explain supply chain modifications necessary for them to operate in the traditional storefront operation.

Many older consumers do not have access to the internet, own a computer, and know how to use it, nor do they have the interest to do so. Brick and mortar business offers a more personal relationship with the customer. While it is more costly to provide this face-to-face and personal service, it builds loyalty from the customer making the competition from the large online retailers less intriguing to much of the older generation and those retired that tend to travel quite often. The disadvantage to this type of business is the consumer is at the mercy of the travel company and their working hours whereas the internet travel companies offer services 24 hours a day 7 days a week. For those who are cost conscious, the ability to price shop at their own leisure is enticing and convenient.

Another supply chain management example is the generation of paperwork involved in a brick and mortar environment. In a recent publication of Red Herring the Business of Technology, entrepreneur, and frequent flyer, Anuj Gupta comes to the realization that his home travel agent needs assistance in simplifying their transactions in order to better serve its customers and reduce paperwork. He began looking into the booking business and discovered that thousand of small travel agencies worldwide were still buried in paper. Most of them had the hardware to facilitate upgrading to an integrated platform, but could not afford the pricey software. Mr. Gupta began a self-funded start up company and created a software solution to rectify this situation for brick and mortar travel companies. His program has assisted in lowering the barriers of entry to the online world of travel. (Red Herring The business of Technology, 2006.

The supply chain modifications necessary for Travelzoo.com, Cheaptickets.com, and Priceline.com to operate in the traditional storefront operation are radical. E-commerce is evolving at rapid speeds and technology is increasing daily. To change from this environment to the brick and mortar travel companies would almost have to make severe changes. First off, the Brick or the location of the business would have to be more eye appealing than travel agencies in the past. Because customers will have to find the location locally, it would be necessary for the company to spend plenty of time and money on marketing. The marketing campaign may want to be bolder than the advertisement for the .com travel agencies and prove why they are better. The