Success of Travel Agencies

Consumers can now access online bookings for airlines, accommodation, transportation, sightseeing
tours and other related products, so why do they still go to travel agencies for reservations?
Survey results revealed that there were 12 significant attributes impacting on consumer selection
and, of these, the most important were the knowledge and experience of consultants, and the
helpfulness and friendliness of consultants. Travel reward programs were seen as the least influential
in this research.
The literature suggested that additional services (such as visa handling and travel insurance) have
been advertised as one of the key factors that differentiate one travel agency from another (Persia &
Gitelson, 1993). This attribute was important, particularly in the travel agency business, since it is a
common belief that customers from a competitor can be won over if an attractive list of free 'extras' is
offered (Persia & Gitelson, 1993). Agency advertisement, knowledgeable and experienced travel
consultants, and sufficient brochures were important to consumers where they could consider the
use of such information, opinions and suggestions provided to evaluate alternatives prior to making
the purchase
The findings in several studies conducted (for example, Kendall & Booms, 1989; Meidan, 1979)
revealed that the physical aspects of agency (i.e., agency layout and atmosphere, convenient location
and trading hours/days) were regarded as a fundamental concern of travel agency users.
Finally, in the service-oriented travel agency business, helpful and friendly staff could be central to
the success of the transaction where integrating consumers' participation becomes part of the
process of delivering the outcome
The use of online search facilities for travel information has provided additional sources of
information and opportunities to purchase travel direct from suppliers, such as airlines and
accommodation providers, without recourse to travel agents (Buhalis, 1998). In some instances, such
purchases can be made at discounts to prices available through travel agencies by eliminating
commissions for such agents (example such as the Flight Centre). Furthermore, the capacity of the
internet to promote and provide information very conveniently and quickly has provided alternatives
to physical visits by consumers to travel agencies in order to access such information (Buhalis, 1998).
Travel research consistently shows the importance of word-of-mouth (WOM) information

sources in the travel decision-making process. Friends and relatives have been identified as
organic image-formation agents, and it has been emphasized that this WOM information is one
of the most relied-upon sources of information for destination selection. While there has been
recognition of the importance of WOM information sources on consumer behaviour in tourism,
little has been performed to understand more specifically how and what behaviour is influenced
Forget the advice of travel agents. Now the tourist experience is shaped and
motivated by consumer-generated media such as YouTube and Flickr. At least that’s
what the School of Tourism and Hospitality Management’s National Laboratory for
Tourism and Ecommerce (NLTeC) discovered. NLTeC conducted a series of studies
that explored how consumer-generated media such as blogs, wikis and image- and
video-sharing websites influence the process of information searching and
experience sharing for tourists. Based on our studies, 70 percent of travelers are
using the internet for travel-related purposes, either booking flights and hotels or
searching for information,” said Dan Fesenmaier, director of NLTeC. “Because
consumer-generated media is changing the way people search for tourism
information and communicate with others, it is essential to study.”
“Tourists’ comments on personal travel videos build a community where people can
share information with each other,” Ultimately, such videos provided virtual access.
Word
Of
Mouth
Online travel Travel Agents

services
‘Relationship
‘Viral Marketing’ Marketing’

Success of Travel Agencies

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Consumers can now access online bookings for airlines, accommodation, transportation, sightseeing

Travel research consistently shows the importance of word-of-mouth (WOM) information

Online travel Travel Agents

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