| INTRODUCTION. Travel industry is one of the largest and fastest growing industries in the world. In recent years, the rapid development of information technology has enabled a transformation of the traditional bushiness. This article presents an enterprise method for moving a firm’s product content to the Internet. SECTION 1. How information impacts the travel industry. Travel agents, whose business concept is to tie travelers and tourist service providers, have been very important intermediaries to the traditional distribution chains. This is illustrated as (i) and (iii) in Figure 1 in which Goodall (1988) modified 5 alternative chains of distribution in the travel industry. Figure 1. Alternative chains of distribution in the travel and tourism industry When acting as intermediaries between the end users and the airlines/hotels, travel agents received commissions from airlines and sometimes, to attract customers, give them a small discount. They used to be very useful because they had information systems which allowed them to easily track all the different airlines. According to the old business model (see figure2), the travel agents had been paid principally through commissions, which mostly came from the ticket sales each agency generated. Commissions were a fixed 10% of ticket price and were paid by the airlines on all tickets written by the agents. Customer could not get such discount if they directly bought tickets from the airlines. That was why travel agency was needed. The difference contributed to most of their profit. |
[电子商务] How a travel agency could survive in the E era?
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