Evolution of the internet and the impacts on travel agencies - Assignment Example

? Evolution of the Internet and the impacts on Travel Agencies Table of Contents Brief Analysis of the Issues: Impact of Evolution of Internet on Travel Agencies 3 Research Methodology 3 Comparative Analysis 4 References 7 Brief Analysis of the Issues: Impact of Evolution of Internet on Travel Agencies The modern age of information technology evolution has brought new advantages and benefits in business process. The travel agencies can store large number of data and information within a quick period of time through online strategy. In addition to this, implementation of online strategy improved the communication process with the customers and several business clients. Online travel agency has become one of the trusts worthy source of booking tickets, holidays and lodging. Apart from these, customers can directly access the internet sites and can book the tickets within quick period of time. There are several negative impacts of the evolution of information technology on the travel agencies too. Third party cost is the major business barrier of several airlines, hotels and restaurants. Therefore, the organizations had to pay a commission rate to these travel agents. These activities automatically increase the business operation cost. Now-a-days, people can book their tickets by their own through online networking sites without any kind of help of third parties. The implementation of online strategies helped the organizations and customers in several ways. It can reduce the business operation cost for the organizations. The travel agents can get, store and provide large number of data and information. On the other hand, implementation of online ticketing strategies helps the organizations to reduce third-party broking costs so that they can provide low fare tickets to the customers. Research Methodology There are two types of research methods, such as qualitative and quantitative research. Both of these qualitative and quantitative research methods have particular advantages and disadvantages. Quantitative research generally analyzes the data and information based on representative samples within a large population number. On the other hand, qualitative research method focuses on several emotional elements and in-depth feelings of a human being. (Celsi, Money and Samouel, 2011, p.186). However, qualitative research method can be implemented in this study based on the interpretative nature of the study. There are two types of data collection process, such as primary data collection process and secondary data collection process. Primary data is compiled from first-hand and fresh observation or experience. A primary research can gather updated and unbiased data through this primary data collection process. On the other hand, this data collection process is very much time and cost consuming. Secondary data collection method can be defined as the sourcing of data from a given or existing reliable data set. Secondary data collection process is both time and cost effective (Wild and Diggines, 2010. P.34). On the other hand, major disadvantages of this data collection method are lack of updated and reliable data. Secondary data collection method has been adopted for the purpose of this research in order to avail an appropriate research outcome within a quick period of time. Lack of viable data and limitation is the major limitation of this research methodology and data collection process. Comparative Analysis People of several developed countries generally prefer online booking of tickets and leisure facilities. It is true that US is technologically developed country. Recent financial crisis and economic recession affected the global economic environment. Low disposable income of people and limited purchasing power are the major consequences of this economic slowdown. Earlier, during the Brick-and-mortar age organizations had to effectively rely upon the third party business partners in order to increase their sales margin. On the other hand, customers also had to depend upon these third party individuals to book a trip or holiday. Now-a-days, each and every small and large hospitality organizations implemented online strategy in order to meet market demand and to reduce unnecessary business operation cost. People of US are quite comfortable with this online booking strategy in which they can directly deal with the organizations (Barth, 2008, p.26). Therefore, threats like third party engagement and charges can be avoidable in US. It is discussed earlier that online marketing and selling activities reduced the third party cost. For example, several leading low cost airlines, such as South-West Airlines and Ryan Air implemented online business and ticket distribution strategy for the customers in order to reduce the third party cost. The airlines brought the concept of low cost tickets through this online strategy. This particular strategy allowed the customers to access the company websites directly. They can book and avail the tickets directly from company websites (Syratt and Archer, 2003, p.146). As a whole this strategy helped the customers to third party or brokerage charge. India and China are considered as the emerging economies. Slowly and gradually, the organizations within these countries are adopting this online strategy. Still people of these countries heavily rely upon the travel agents. The ongoing evolution of information technology is motivating the several travel agencies in India to implement online. The leading travel agencies in these countries are trying to meet the growing market demand and customer preference by transforming themselves from Brick-and-Mortar Travel agencies to Online Travel Agencies. The computers are considered as the integral part of the travel agency business since the widespread adoption. It is helping the agencies to avail several competitive advantages. The travel agents in India are trying to differentiate their business operation strategies in order to support the purchasing power of people and meet the current market demand. However, sometimes the customers are not happy with the services that these agencies provide (Conrady and Buck, 2009, p.120). People have to pay more money to the travel agents in case of booking of tickets and holiday packages. The concept of direct booking of tickets or holiday packages from company website is coming up in these countries slowly and gradually. But, people who used to stay in villages or remote area cannot access the internet due to lack of knowledge about these. It is important for the organizations to provide time share or online booking facilities to the customers in order to increase the customer awareness. In addition to this, tourism department has to support the organization in customer awareness activities. References Barth, S., 2008. Hospitality Law. New Jersey: John Wiley & Sons. Celsi, M., Money, A., and Samouel, P., 2011. Essentials of Business Research Methods. New York: M.E. Sharpe. Conrady, R., and Buck, M., 2009. Trends and Issues in Global Tourism 2009. New York: Springer. Syratt, G., and Archer, J., 2003. Manual of Travel Agency Practice. London: Routledge. Wild, J., and Diggines, C., 2010. Marketing Research. London: Routledge. Read More