Investigating the significance of travel agencies as a distribution channel in the tourism industry

Abstract

The travel industry is undergoing dramatic changes as a result of the phenomenal growth and wide-scale adaption to information technologies, in particular the internet. This has altered the buying behaviour of the travel consumer whom today, has the power to choose between alternative distribution channels when planning and booking a holiday. This has led researchers to question the survival of traditional travel agencies. For this reason, further research has to be undertaken to examine the current position held by travel agencies and understand the issues facing them more closely in an attempt to determine their future. This research paper focuses on investigating the significance of travel agencies as a distribution channel in the tourism industry. The objectives of this research paper set out to establish whether or not travel agencies remain an important distribution channel for booking travel, determine whether increased knowledge and familiarity of the internet results in fewer bookings with travel agencies, investigate whether electronic commerce is changing the traditional role of travel agents to that of information brokers, obtain perceptions of travel agencies and the internet as booking channels, determine the choice attributes used among travel consumers when selecting a distribution channel and to investigate the potential disintermediation of travel agencies in the context of Limerick City (Ireland). The aim and objectives are achieved by exploring the relevant literature available on the topic and using both quantitative and qualitative methods of primary research in the form of questionnaires and interviews. Findings reveal that travel agencies remain an important distribution channel in the tourism industry and although internet competency may be significant, many people still prefer to book their trip through traditional channels. Findings further prove that the internet is often only used as an information source prior to booking through offline channels. Based on the findings it is concluded that the services offered by travel agencies are highly accredited among travel consumers and travel agencies will continue to represent a significant distribution channel in the tourism industry.