Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals Anton Bogdanovych, University of Technology Sydney e-Markets.

Travel Agents vs. Online Booking: Tackling the Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Shortcomings of Nowadays Online Tourism

PortalsPortals

Anton Bogdanovych, University of Technology Sydneye-Markets Research Group

22ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Travel Agents vs. Online Booking: Tackling the Shortcomings of

Nowadays Online Tourism PortalsNowadays Online Tourism Portals

OutlineOutline• MotivationMotivation• Research MethodologyResearch Methodology• HypothesesHypotheses• Travel Agent prosTravel Agent pros• Online booking prosOnline booking pros• 3D Electronic Institutions3D Electronic Institutions• ConclusionConclusion



Characteristics of TourismCharacteristics of Tourism• A product cannot be observed or A product cannot be observed or

manipulated through direct manipulated through direct experience prior to purchaseexperience prior to purchase

• Customers have to rely on indirect Customers have to rely on indirect or virtual experienceor virtual experience

• Appealing product presentation Appealing product presentation (visualization of travel destinations) (visualization of travel destinations) is a mustis a must

Mot

ivat

ion



Product presentation Product presentation possibilitiespossibilities

• Traditional travel agents:Traditional travel agents:- Catalogues with photos, tips, maps Catalogues with photos, tips, maps

etc.etc.• Online Booking:Online Booking:

- Web sites with catalogue-like structureWeb sites with catalogue-like structure- Interactive 3DInteractive 3D- On-demand VideosOn-demand Videos

Mot

ivat

ion



Research GoalsResearch Goals• Find the best from both sides Find the best from both sides

(travel agents and online booking)(travel agents and online booking)• Facilitate customers’ decision Facilitate customers’ decision

making processmaking process• Automate the process of Automate the process of

development of tourism portalsdevelopment of tourism portals• Save human resourcesSave human resources

Mot

ivat

ion



Research MethodologyResearch Methodology• Follows qualitative research inquiryFollows qualitative research inquiry• Stage 1: Hypothesis formulationStage 1: Hypothesis formulation

- Literature reviewLiterature review- Semi-structured interviews (10 PhD Semi-structured interviews (10 PhD

Students)Students)• Stage 2: Hypothesis validationStage 2: Hypothesis validation

- Travel agent interviewsTravel agent interviews- Questionnaire (132 participants)Questionnaire (132 participants)

Res

earc

h M

etho

dolo

gy



The SampleThe Sample• People who possess ample expertise in online People who possess ample expertise in online

bookingbooking

Res

earc

h M

etho

dolo

gy



HypothesesHypotheses• H0: The majority of people prefer H0: The majority of people prefer

booking their international trips from a booking their international trips from a travel agent. Domestic trips are usually travel agent. Domestic trips are usually booked online.booked online.

Hyp

othe

ses



HypothesesHypothesesH

ypot

hese

s

• H1: Human expertise is an important H1: Human expertise is an important convenience factor that is missing in online convenience factor that is missing in online booking.booking.



HypothesesHypothesesH

ypot

hese

s

• H1: Human expertise is an important H1: Human expertise is an important convenience factor that is missing in online convenience factor that is missing in online booking.booking.



HypothesesHypotheses• H2: Social Interaction with a travel H2: Social Interaction with a travel

agent is a key to a good customer agent is a key to a good customer experienceexperience

Hyp

othe

ses



HypothesesHypotheses• H3: Travel agents satisfy impulse H3: Travel agents satisfy impulse

buyers better buyers better Hyp

othe

ses



HypothesesHypotheses• H4: Collaborative booking experience H4: Collaborative booking experience

is important.is important.

Hyp

othe

ses



HypothesesHypotheses• H5: Security and trust towards H5: Security and trust towards

humans are higherhumans are higher

Hyp

othe

ses



HypothesesHypotheses• H5: Security and trust towards H5: Security and trust towards

humans are higherhumans are higher

Hyp

othe

ses



HypothesesHypotheses• H6: Loyalty is rewarded and H6: Loyalty is rewarded and

appreciatedappreciatedHyp

othe

ses



HypothesesHypotheses• H7: Detailed information about a H7: Detailed information about a

trip is importanttrip is important

Hyp

othe

ses



HypothesesHypotheses• H8: The way the package deals are H8: The way the package deals are

composed now is not satisfactory composed now is not satisfactory and can be done better on the Weband can be done better on the WebH

ypot

hese

s



Travel agent prosTravel agent pros• Expertise of the travel agentsExpertise of the travel agents• Impulse decisionsImpulse decisions• Social interactionsSocial interactions• Loyalty is commonLoyalty is common• Travellers value that their Travellers value that their

preferences are rememberedpreferences are remembered

Tra

vel a

gent

pro

s



Online booking prosOnline booking pros• ConvenienceConvenience• Comfort of the familiar home Comfort of the familiar home

environmentenvironment• Fast responsesFast responses• MultitaskingMultitasking

Onl

ine

book

ing

pro

s



3D Electronic Institutions3D Electronic Institutions

3D Virtual Worlds•Social•Consistent•Location awareness•Rational & emotional customers•Not structured interactions

Electronic Institutions•Structured Interactions•Secure•Strong methodology•Guarantees that participants adhere to the institutional rules and fulfill the obligations

3D Electronic Institutions•Social•Secure•Structured Interactions

• No methodological supportNo methodological support

3D E

lect

roni

c In

stitu

tions



Specification of 3D Electronic InstitutionsSpecification of 3D Electronic Institutions

Common Ontology and language

Agent Roles Multi-agent Protocols Network of protocols Norms 3D

Ele

ctro

nic

Inst

itutio

ns



Visualization of 3D Electronic Visualization of 3D Electronic InstitutionsInstitutions

3D E

lect

roni

c In

stitu

tions



Runtime ArchitectureRuntime Architecture3D

Ele

ctro

nic

Inst

itutio

ns



ExampleExample3D

Ele

ctro

nic

Inst

itutio

ns



ConclusionConclusion• Impulse travel, collaborative booking and Impulse travel, collaborative booking and

better packaging mechanisms are not better packaging mechanisms are not present in nowadays online travel portalspresent in nowadays online travel portals

• Expertise of the travel agents should be Expertise of the travel agents should be used onlineused online

• Presentation of travel destinations can Presentation of travel destinations can be done betterbe done better

• 3D Electronic Institutions have the 3D Electronic Institutions have the potential to address the drawbacks of potential to address the drawbacks of online bookingonline booking

Con

clus

ion

Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals Anton Bogdanovych, University of Technology Sydney e-Markets.

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