Internet and Travel Consumer Purchasing Behaviour and Implications for Travel Agencies

by

Executive Summary

The type of websites used by travel searchers cover a broad spectrum such as online travel agency sites (e.g. Expedia, Travelocity, Orbitz), travel company websites (e.g. airlines, hotels, rental car companies), general search engines (e.g. Google, Yahoo, Ask), destination specific sites (e.g. Travel2sc), special interest sites (e.g. Wine tasting, skiing, boating), or even newspaper or magazine sites . These sites represent the major industry presence on the Internet and don't include more recent developments such as Web 2.0 type sites like Trip Advisor and Real Travel. Web 2.0 type sites provide user generated travel advice and stories from their own travel experiences. Nearly 120 million adult users of the Internet in 2004, approximately 98 million users utilized the Internet to find travel information. This figure represents a 233% increase since the 1997 figure of 42 million users utilizing the Internet for travel information. According to the Travel Industry Association of America (TIA), people utilizing the Internet for travel purposes are most likely to middle aged, well educated and had an average household income of $73,000. . While many Internet users are utilizing the Internet to find travel information, there has been some research suggesting that there is some apprehensiveness when it comes to the actual purchase of travel products online. Travellers utilizing the Internet for booking purchased a variety of products and services. In 2004, the three items booked or purchased online were airline tickets (82% of online travel bookers), overnight lodging accommodations (67%), and activities (66%). In this paper, we try to focus on the effect of the internet on travel consumer purchasing behaviour and implications for travel agencies.

Table of Content

Executive Summaryii

Introduction1

Background1

Aim & Objective2

Justification3

Literature Review4

Research Design and Method8

Qualitative Research10

Quantitative Research10

Sample10

Data Collection11

Underlying assumption11

Explanation of the rationale for your proposed methods11

Possible alternative to your proposed methods11

Limitations12

Reliability and Dependability12

Validity13

Credibility13

Ethical Concerns14

Ethical, health and safety issues14

Gantt chart15

Conclusion16

References19

Effect of the internet on travel consumer purchasing behaviour and implications

Introduction

In tourism, an area dominated by SMEs in OECD countries, some small tour operators, hotels and inns, restaurants and travel agencies have been active in fostering cross-border Internet e-commerce.

Background

In less than two decades Internet has been used as a shopping medium, attitudes, assumptions, and perceptions concerning the viability of online-only storefronts and mixed-channel operations that offer a combination of offline and online capabilities have evolved (Bharadwaj 2000, p.169). Central to the changing landscape of retailing via the Internet is a growing understanding of consumer motivations and concerns, especially online shoppers (Bharadwaj 2000, p.169). Research into the psyche, motivations, and concerns of people who use the Internet for commerce and other purposes is a popular topic of studies by academics and 2 practitioners (Bharadwaj 2000, p.169). How online shoppers select which E-businesses to patronize and why has resulted in the development of multiple theories, concepts, and models (Bharadwaj 2000, p.169). Numerous studies report consumers are concerned with how they can determine the trustworthiness of online stores that may not have an associated physical storefront, uses an ...