E-Commerce Case

Technological advancement and tourism have been working together for years since the 1980s with the development of Information Communication Technologies. ICT has been changing tourism worldwide, therefore the developments in ICT has undoubtedly changed business for the industry, (Porter, 2001).

Since the establishment of CRS and GDS’s as well as development of the internet, it has dramatically changed the way the consumer is approached, (Buhalis, 2003). This therefore has given a wide perspective on new products and services that operate between the business and the consumer.

Progresses in effective search tools, applications, social media and fast networks have influenced many travellers to use technology for planning and experiencing their travels. ICTs have also reformed the efficiency and effectiveness of tourism organisations, as to how the business operates and how they interact with their consumers, (Buhalis, 2003). Tour operators have accepted the changes by online booking, mobile and tablet apps, Bob Atkinson, travel expert from Travel Supermarket commented: "The switch to online for our holiday planning - whether to research or book - has been one of the most noticeable changes in travel over the last few years and appears to be continuing.

Latest changes brought by E-commerce influenced new business opportunities to the industry. Some argued that the introduction of the internet will decrease business for traditional travel agents, nevertheless some argued that even consumers look for lower prices on the Internet, they still order packages holidays from travel agents. Furthermore; it is safe to say that even though the new generation is in a technological era; they prefer to book with a travel agent with the face to face interaction. This is stated by a 10% growth in the last 3 years. Victoria Bacon ABTA Head of Communications also said: “It is increasingly apparent that people are realising the benefits of what a travel agent can offer. The Internet has been fantastic in opening up choice but the survey shows that consumers value the help of a human being and the reassurance of dealing with someone face to face.” (ABTA, 2012)

Figures show that seven in ten people who travel books entirely online, found by analysts on Mintel. However some argue that travel agents are more knowledgeable about destinations than other online agencies such as Tripadvisor or Expedia. However, 44% of travellers argue that such website as Tripadvisor are trustworthy. Furthermore, 52% of consumers consider that holidays are better value for money online and that they enjoy being able to arrange their own personal packages.

• 31% will book through an online travel agent, 20% through an online tour operator and 15% through an online price comparison site, (travel mole, 2014).
• Online booking revenue has grown by more than 73% over the past 5 years 
• 38% of leisure travellers use their mobile for travel information and 14% secure their holidays via their phones.
• 9% of leisure travellers use their tablets for booking holidays and it is growing over years. (Amadeus)

Reference:

http://www.dailymail.co.uk/news/article-2166772/The-end-travel-agent-Holiday-booking-services-extinct-people-web-buy-vacations.html#ixzz3KlCPmVwb