E-Business Models In The Travel Industry

Drawing on recently published data, this report examines some of the trends in travel e-commerce. Using a case study approach, the author examines in detail some of the e-business models impacting on the travel industry both in the Business-to-Business (B2B) and Business-to-Consumer (B2C) markets. Although B2C leisure transactions currently account for just 1% of the value of global travel, there is real potential for future growth. However to be successful both new entrants and existing players will need to ensure their e-business model adds value for the customer, otherwise their position in the value chain will be threatened. The most immediate potential for growth and profitability lies in the B2B market, particularly in the development of vertical portals or community extranets. These are virtual spaces enabling travel buyers and suppliers to trade online. The integration of legacy systems with Internet Protocol (IP) technology is taking place across a range of travel sectors and will provide the platform on which a wide range of e-business applications can be developed. This development will lead to the ultimate catalyst for travel e-business -- the convergence of data (internet), voice (telephone) and video (television)

Service-oriented modeling for e-business applications components

The emerging trends for e-business engineering revolve around specialisation and cooperation. Successful companies focus on their core competences, and rely on a network of business partners for the support services required to compose a comprehensive offer for their customers. Modulariy is crucial for a flexible e-business infrastructure, but related requirements seldom reflect on the design and operational models of business information systems. Software components are widely used for the implementation of e-business applications, with proved benefits in terms of system development and maintenance. We propose a service-oriented componentisation of ebusiness systems as a way to close the gap with the business models they support. Blurring the distinction between external services and internal capabilities, we propose a homogeneous model for the definition of ebusiness applications components. After a brief discussion on the foundational aspects of the approach, we present the process-based technique we adopted for component modelling. We then present an infrastructure compliant with the model proposed that we built on top of an EJB (Enterprise Java Beans) platform

Critical review of the e-loyalty literature: a purchase-centred framework

Over the last few years, the concept of online loyalty has been examined extensively in the literature, and it remains a topic of constant inquiry for both academics and marketing managers. The tremendous development of the Internet for both marketing and e-commerce settings, in conjunction with the growing desire of consumers to purchase online, has promoted two main outcomes: (a) increasing numbers of Business-to-Customer companies running businesses online and (b) the development of a variety of different e-loyalty research models. However, current research lacks a systematic review of the literature that provides a general conceptual framework on e-loyalty, which would help managers to understand their customers better, to take advantage of industry-related factors, and to improve their service quality. The present study is an attempt to critically synthesize results from multiple empirical studies on e-loyalty. Our findings illustrate that 62 instruments for measuring e-loyalty are currently in use, influenced predominantly by Zeithaml et al. (J Marketing. 1996;60(2):31-46) and Oliver (1997; Satisfaction: a behavioral perspective on the consumer. New York: McGraw Hill). Additionally, we propose a new general conceptual framework, which leads to antecedents dividing e-loyalty on the basis of the action of purchase into pre-purchase, during-purchase and after-purchase factors. To conclude, a number of managerial implementations are suggested in order to help marketing managers increase their customers’ e-loyalty by making crucial changes in each purchase stage

Travel Agencies: From online channel conflict to multi-channel harmony

The adoption of Internet as a distribution channel and a privileged e-commerce tool has pressed Travel Agencies (TAs) to a latent channel conflict. Our main interest is to understand how the traditional independent travel agencies in Portugal deal with the online channel. We suggest that TAs have to develop an innovative business model based on the online and offline complementary channels, in order to achieve a multi-channel harmony

Understanding the factors that attract travellers to buy tickets online in Saudi Arabia

Despite widespread discussions of online consumer behaviour and the effect of web quality on online user’s actions, there is still a lack of research in the area of consumer attitude towards the services provided by airline companies due to the specific nature of travellers. – being using the internet for different motivations and buying specific kind of product (e-tickets). This study aims to measure consumers’ electronic satisfaction and intention to purchase tickets from Airlines websites. The results provide better understanding on the factors that attract travellers to adopt the most cost effective distribution channel for Airlines (own website) for ticketing needs. To obtain the study objective, a conceptual framework is developed based on literature pertaining to e-consumer behaviour, web quality, and travel and tourism streams. A detective quantitative methodology was chosen to examine the constructs and the relations within the framework. An online survey targeting actual airline online users (travellers) in the Kingdom of Saudi Arabia is suggested with items covering 9 constructs: Information Quality (IQ), System Quality (SQ), Perceived usefulness (PU), Perceived ease of use (PEOU),e-Trust (ET), Airline reputation (AR), Price Perception (PP), e-Satisfaction (ES), and Intention to Purchase (IP). Findings would help decision makers within airline companies to understand their customers’ online behaviour and enable enhancements and modifications to be made to their airline storefront, hence ensuring the satisfaction of potential customers and conversion of visitors into buyers

Progress in information technology and tourism management: 20 years on and 10 years after the Internet—The state of eTourism research

This paper reviews the published articles on eTourism in the past 20 years. Using a wide variety of sources, mainly in the tourism literature, this paper comprehensively reviews and analyzes prior studies in the context of Internet applications to Tourism. The paper also projects future developments in eTourism and demonstrates critical changes that will influence the tourism industry structure. A major contribution of this paper is its overview of the research and development efforts that have been endeavoured in the field, and the challenges that tourism researchers are, and will be, facing

Mobile travel services: the effect of moderating context factors

This article has two objectives: (1) to draw an international comparison regarding the acceptance of mobile travel services in three countries with different profiles when it comes to travelling and mobile telecommunications, and (2) to extend relevant literature on mobile applications, more specifically travel services, by including context-related concepts, taking moderating factors like location, mobility of users, physical, and social context into account. Based on surveys that were carried out in 2009, structural equation modelling is used to identify differences in patterns in the use of mobile travel services and in the role of context-related variables. the conclusion of this article is that context-related factors, that is, mobility and (physical and social) context, have an impact on the relationship between the core concepts of technology Acceptance model (TAM) and Diffusion of Innovation (DoI) research. many studies on the acceptance and use of mobile services indicate that a deep understanding is needed of individual, context-related, and technological characteristics and the way they interact. this is also highly relevant to the travel industry, which wants to utilize the opportunities provided by mobile technology

eEnabled internet distribution for small and medium sized hotels: the case of hospitality SMEs in Athens

Advances in information and communications technologies (ICTs) have strategic implications for a wide range of industries. Tourism and hospitality have dramatically changed by the ICTs and the Internet and gradually emerge as the leading industry on online expenditure. The Internet revolutionised traditional distribution models, enabled new entries propelled both disintermediation and reintermediation and altered the sources of competitive advantage. This paper explores the strategic implications of ICTs and the perceived advantages and disadvantages of Internet distribution for small and medium-sized hospitality enterprises (SMEs). Primary research in Athens hotels demonstrates the effects of the Internet and ICTs for secondary markets, where there is lower penetration and ICT adoption. Interviews and questionnaires identified a number of strategies in order to optimise distribution. The analysis illustrates the strategic role of ICTs and the Internet for hospitality organisations and Small and Medium-sized organisations in general. Most hotels employ a distribution mix that determines the level and employment of the Internet. The paper demonstrates that only organisations that use ICTs strategically will be able to develop their electronic distribution and achieve competitive advantages in the future