Cultural Influences on Group Travel Behavior

The provided content comprises various articles and books related to culture, tourism, and hospitality research. The articles explore topics such as individualism/collectivism and group travel behavior, perceived value of tourism products, service failures in the family travel market, and the impact of technology on interfirm relations. Additionally, there are online sources that discuss the future of travel and tourism industry with web services, luxury travel trends, and key insights into UK travel agents. The content aims to provide a comprehensive understanding of the field.

The future of independent Travel Agencies in London in
next 5 Years

ACKNOWLEDGEMENT
I pay my sincere gratitude to my family, colleagues and surely my friends for their
cooperation and support throughout this research study. Their support and motivation guided me
in this entire dissertation and thus kept me focused. A kind regard to my mentor who directed
me at every stage of the research process and thereby corrected me wherever required. He also
shared his valuable knowledge with me which in turn helped me to gain deep understanding
about the subject. Last by not the least, I would like to thank my professor for giving me
opportunity that further developed my academic as well as personal skills.

ABSTRACT
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TABLE OF CONTENTS
CHAPTER 1- INTRODUCTION...........................................................................................................................1
1.1 Overview............................................................................................................................................1
1.2 Chapter structure................................................................................................................................1
1.3 Focus and purpose..............................................................................................................................2
1.4 Framework and analysis....................................................................................................................3
CHAPTER 2- LITERATURE REVIEW.................................................................................................................6
2.1 Introduction..........................................................................................................................................6
2.2 UK Travel industry..............................................................................................................................6
2.3 Role of travel agents............................................................................................................................8
2.4 Importance of travel agents..................................................................................................................9
2.5 Forces affecting travel industry.........................................................................................................10
2.6 Current trends in UK’s travel market.................................................................................................11
2.7 Current position of travel agencies....................................................................................................13
CHAPTER 3 – RESEARCH METHODOLOGY....................................................................................................16
3.1 Introduction........................................................................................................................................16
3.2 Research Aims and Objectives..........................................................................................................16
3.3 Research questions.............................................................................................................................17
3.4 Research Approach............................................................................................................................17
3.5 Research philosophy..........................................................................................................................17
3.5 Research Design.................................................................................................................................18
3.6 Research type.....................................................................................................................................18
3.7 Data collection methods.....................................................................................................................19
3.8 Sampling technique............................................................................................................................19
3.9 Data Analysis.....................................................................................................................................20
3.10 Validity and Reliability....................................................................................................................20
3.11 Limitation of Research.....................................................................................................................20
3.12 Ethical Consideration.......................................................................................................................21
CHAPTER 4 – DATA ANALYSIS AND FINDINGS............................................................................................22
CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS................................................................................23
CHAPTER 6 REFLECTIVE STATEMENT..........................................................................................................24
REFERENCES.................................................................................................................................................25

CHAPTER 1- INTRODUCTION
1.1 Overview
Travel and tourism is extremely complex and diverse industry. It comprises of
various related sector such as airline, hospitality organizations, auto rentals, travel agencies etc.
This is basically a service-oriented industry which contributes greatly to economic growth of
nation. The contradicting predictions currently circulating in the travel industry imply that this
sector is peculiarly good prototype of the disrupting impact of the latest technology. Internet has
opened bright prospects for the travel agencies to directly target their customers, thereby
avoiding the conventional channels of distribution through travel agents. The travel market of
UK is highly competitive (Sheldon, 2004). Moreover, the improvement in global transport
infrastructure, advancement in communication and information technology, elimination of non-
tariffs and tariffs barrier has led to significant growth in travel and tourism sector. Though, the
certain independent travel agencies are going through a rough patch. The older service values are
increasingly being termed as inconsistent with the cut price strategies of the bigger tour operating
companies as well as online travel agencies (Soo Han and et.al., 2007).
Although travel agencies can be categorized on various bases such as according to
their core business activities in business and leisure, moreover global tourism industry has
grouped them in incoming and outgoing travel agencies (Kracht and Wang, 2010). But this
report mainly focuses on independent travel agencies in UK. It investigates the latest trends in
the sector and transition of customers from package tours to independent travelling. On contrary,
this paper will also provide impact of new technologies on independent travel agencies and how
they are reengineering their operations with the view to maintain the market position in this
highly competitive and complex business environment.
1.2 Chapter structure
The present paper follows a sequential manner as all the sections are interlinked. Only
on the completion of one chapter can the following section be proceeded with. Below mentioned
are the different chapters of the dissertation:
Chapter 1: Introduction – This chapter of the paper gives a glimpse of the topic under
consideration. Apart from this, it also entails a short synopsis of the focus & purpose, framework
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& analysis and the significance of the research. This section will also provide the brief overview
of all the chapter that are included in the report.
Chapter 2: Literature Review – This section of the dissertation takes into account the work
presented by other authors and researchers on this topic. It essentially speaks in volume about the
future of independent travel agencies in London. Different books, magazines, academic journals
and online reference materials have been examined to assemble this section. This chapter holds
substantial merit as it assists the scholar in comprehending the perspective of other authors and
discovering a gap in their researches.
Chapter 3: Research Methodology – This chapter reflects the various methodologies which have
been deployed for collating information and examining it. It covers the aims and objectives,
research questions, method of data collection, data analysis technique, research approach,
research limitation and ethical issues plus considerations. The data has been obtained from both
primary and secondary sources so as to gain deep knowledge about the topic
Chapter 4: Data Analysis & Findings – The data which that has been accumulated for
conducting primary research is assessed in this chapter. This primarily comprises of the
evaluation of outcomes so that conclusions can be drawn from it. Moreover the data that is so
obtained from primary sources will be compared with information gathered from various
secondary sources.
Chapter 5: Conclusions & Recommendations – This is the closing part of the paper. It consists
of the various conclusions drawn from the research findings and recommendations are provided
that can be executed to improve the lags.
1.3 Focus and purpose
The purpose of this study is to examine the importance of travel agencies in UK and
to also to analyze their current situation with the changing business environment i.e. change in
consumer behavior, technological advancement, globalization etc (Sigala, 2007). In other words,
the impact of these factors on independent travel agencies in UK will be understood. The main
focus of this report is to investigate the future of independent travel agencies in London and to
analyze the possible competitive solution so as to improve their situation. This aim can be
achieved by framing the below mentioned objectives:
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 To examine the role and importance of Travel agencies in UK
 To analyze the current and future trends in the travel industry
 To identify the impact of technological, changing consumer trends and others on
independent travel agencies
 Lastly, to recommend the strategic solution for independent travel agencies in order to
improve their business.
1.4 Research question
To conduct the present study in systematic and orderly manner according to the research
objectives, certain questions related with research subject has been framed. This will help the
study to follow the right direction and so to avoid any disruption or distraction (Lewis and
Ritchie, 2003). Following are the research question in accordance with the subject:
 What is the role of travel agencies and how they are important?
 What are the prevailing trends in the travel market and what will be the future?
 How the technology and market changes affect the independent travel agencies?
 What should independent travel agencies do in order to regain their market position?
 What can be strategic solution to further enhance their situation?
1.4 Framework and analysis
This section of the research report provides brief information about the steps that has
undertaken in order to conduct the study in proper manner. It presents the various approaches
and methods that are appropriate for the topic and serve the research purpose in desired manner.
The framework and analysis part thus reflects various techniques such as research design, type,
approach, methods through which adequate data has been collected, sampling technique used and
method adopted to analyze the data so as to draw accurate conclusions and recommendations.
Below mentioned are the approaches that have been incorporated in the present research:
 Research design: As the literature or the research relevant to this subject is not vast and
in order to gain the deep understanding about this, exploratory research design is suitable.
It will help in presenting the changing pattern of travel market in UK.
 Research approach: In this research study, inductive approach is appropriate as it will
assist in analyzing the current situation in UK travel market and position of independent
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travel industry effectively. In addition, as no hypothesis testing is required to be done in
this regard so inductive approach has been employed.
 Research type: In accordance with the nature of research objectives, qualitative research
type is chosen. And as the information involves opinion, perception and
recommendations etc, so qualitative type is research is well suited.
 Data collection methods: In order to gain deep insight into the research subject, the data
has been collected from two sources i.e. primary and secondary sources. The secondary
source includes books related to the subject, reports from travel agencies and industry
experts, previous researches and various articles and journals. The primary information
has been gathered through in-depth interviews with industry experts. Interviews were in
the form of semi-structured format (Data Collection, 2012).
 Sampling technique: Because of the qualitative research type, the detailed information is
required. But as it is not possible to gather the data with such vast population, so only few
people and organization has been used for the purpose. Purposive sampling which is form
of Non-probability technique has been adopted in this study. This technique has further
facilitated the selection of sample having particular characteristics or features (Dattalo,
2008).
 Data analysis: As the information collected through different sources is unstructured in
nature, so for examining it, qualitative method of data analysis is appropriate. Thematic
analysis has been employed in order to get accurate findings.
1.5 Potential significance
Travel agencies are the service oriented companies which plays a vital role in entire
travel and tourism industry. They act as intermediaries between travelers and the tourism
companies and destinations (Brent Ritchie and Goeldner, 2003). Nevertheless, the technological
advancements in recent years have led to drastic change within the tourism industry that further
affected the business of travel agents, especially the independent travel agencies. In addition to
it, this sector has further aggravated by the rising competition, changes in consumer trends,
globalization and technological development in context with the industry. So it is substantial to
understand the situation and its impact on independent travel agencies which are mainly affected
by this advancement. Furthermore, the travel industry is considered to be one of the largest
industries in UK in which the travel agencies comprise of huge significance (Backman and et.al.,
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2012). This study will help in drawing the trends that will likely to be aroused in future. Apart
from that, the report will also be advantageous for the new entrant in the tourism industry as it
will provide them required knowledge about the current trends in the industry and the future of
agencies associated with it.
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CHAPTER 2- LITERATURE REVIEW
2.1 Introduction
Travel agencies can be defined as group of people, it may be individual also; who works
on the behalf of other person (principal). They offer the services or products of travel companies
to customers. In turn, they also act on the behalf of customers as they arrange and plan the trip
along with addressing the related issues like stay, fare etc (Kracht and Wang, 2010). Basically
there are three types of travel agencies namely multiple travel agencies, independent and online
travel agencies. The former refers to those enterprises which are having their operations in more
than one nation and are owned by large conglomerates such as TUI AG, Thompson Holidays etc.
Online travel agencies are those that operate through web and interact with their customers
through online modes. While the independent travel agencies generally caters the need of niche
or special market which may include local high profile residents, particular group having similar
interest or suburbs. For instance West End travel, Rima travel ltd, Real Holidays travel agencies
etc. Unlike distributor who deals in physical products, travel agencies deal with information (UK
travel agents- key insights, 2008).
The present dissertation lays its emphasis on understanding independent travel agents in
London and their future within next 5 years. Advancement in technology has significant impact
on global travel industry. Internet has provided immense opportunities to travel agencies to
directly interact with the customers and influence their decision making (Riege and Perry, 2000).
This report begins with highlighting the recent trends in this industry and how it has changed
from past few years. In addition to it, changes in consumer behavior and attitude toward the
industry will also be examined. On the basis of that the future of independent travel agencies will
be determined.
2.2 UK Travel industry
Travel industry is critical to the nations as well as global economy. In UK more than 60
% of industry comprises of Independent travel agencies (UK travel agents- key insights, 2008).
There are various bodies such as ABTA (Association of British Travel agents), National
Association of independent travel agents, AITO ( Association of Independent tour operators) that
are formed in order to safeguard the interest of travel agents working independently and others.
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The travel agencies can be grouped on the basis of various aspects (Ray and McCain, 2009) that
are as mentioned below:
 Multiple travel agencies: These are particularly large multi chain organizations having
their retail outlets across the globe. They operate under the single brand name such as
Going Places, Thomas Cook etc and are associated with numerous tour operators. They
also try to prioritize their own products (Moliner and et.al., 2006). Multiple agencies have
large customers base and thus advertise their services on large scale on television,
newspaper, internet and magazines. As these agencies enjoy strong buying as well as
network, therefore they can negotiate excellent deals with holiday companies and earn
high commission rates. Thomas Cook has more than 800 outlets around the world and the
biggest travel agency in UK. Multiple agencies have number of benefits over independent
agencies such as increased accessibility and visible, greater growth opportunities, strong
brand image etc (Anderson and et.al., 2009). However, the competition among multiple
agencies is very intense and thus they are compelled to adopt aggressive marketing
strategies to reach more and more customers.
 Online travel agencies: Advancement in technology has led to the growth of virtual
agents or E-agencies which offer their services to both business and leisure travelers.
They generally don’t have physically located branches and so operate form single internet
base with latest information technology system. Some of the examples of e-agents
include ebookers, Expedia, Travelocity, lastminute.com etc. Internet provides them
benefits of flexibility and speed which in turn enable them to generate high volume sales
in order to make enduring profit (World Travel Market, 2011). These agencies also
perform the function of tour operators as their sites provide customers packages of
accommodations along with flights. In addition to this, they also provide other related
information to customers about the major tourist attraction at that particular place,
availability of transport, air tickets etc. These companies have largely affected the
business of miniples or small chains of agents and independent travel agencies.
 Independent travel agencies: Independent agencies are not part of large multiple
corporate and thus are managed by private owners and team of staff. These agencies are
free to provide their customers with a wide range of tourism or holiday companies.
Unlike multiple agencies, they trade with clients and give them personal services based
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on their ability. Independents mostly depend on satisfied clients and their word of mouth
recommendations to others for their growth and extra business. They act on the behalf of
two parties i.e. customers and holiday or tourism companies. For clients, they make all
travel arrangement and for the companies they act as an agent in supplying their product
to clients (ARTA continues to be the voice of independent travel agents, 2013). But on the
other hand it is not plausible for these agencies to quote high rates or rents of locations.
They don’t have strong buying power as in the case of multiple and online agents, thus
they cannot negotiate in order to earn higher commission. In UK, some of independent
travel agencies are Travelcare, West end travel and the like.
2.3 Role of travel agents
Fundamental role of travel agencies if to provide its customers knowledge about the
valued packages that are best suited to their needs and budgets. Furthermore, they book ticket,
rent car and arrange required accommodation. Helping in the visa procedure is also one of the
important feature of independent travel agents (Park and et.al., 2008). They are well aware about
the destination and the weather of that place and thus they are able to provide relevant advice to
their customers regarding the ideal season and place to visit.
Travel agencies are most important and low cost distribution channel for various tourism
related services such as airlines, accommodation, conveyance etc. In the tourism industry, the
role of travel agencies regardless of their size, scope and operations has been remarkable. They
work as an intermediary between suppliers and the customers. In addition to it, they also work as
a retailer of travel services provided by large holidays and tourism companies for the customers
(Klemm and Parkinson, 2000). They also act as advisors for clients and provider of various
ancillary services such as travel insurance, currency exchanges as well help customers in
obtaining visas and passports. As an intermediary, travel agents plays significant role for
principals. i.e. holiday companies and travelers. For the principal they provide easy access to
potential market and for travelers they help in getting convenient location from where customers
can buy affordable and worthy travel services. They provide customers expertise, personalized
and professional service to fulfill their travel expectations and requests. Increase demand of
customers has enhanced the role f travel agencies from last few years, clients are now able to
book their tickets, make car rental reservations, book hotel rooms easily with the help of travel
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agents (Huang and Hsu, 2009). Only with the help of travel agencies airlines have reduced their
operational costs.
Independent travel agents may include an individual or a group, they are not directly
related large travel agencies but work with various organizations that provide travel related
facilities. They are responsible for settling all required arrangements of travel for their
customers. They are also liable to letting their clients know about the details and information
about that air fare, discount offered, exact hotel prices and negotiation made etc. Their function
can be summarized as information, distribution, services and reservations (Independent travel
agents, 2013).
2.4 Importance of travel agents
The change in overall travel industry has dramatically changed the role of travel agencies.
Despite of the changing trends, technology and new ways of accessing information, travel
agencies are able to maintain their position in the market by diversifying their activities and by
offering services to customers as well as the principals. Following are the benefits of travel
agencies for customers as well as tourism companies
1. Arrange transportation facilities for their clients such as sea-cruise, air, buses, cars, rails
etc, along with that they prepare itineraries for different customers according to their taste
and preferences. In addition to it, they also arrange group tours or personally-escorted
tours (UK travel agents- key insights, 2008).
2. Travel agencies are able to provide best solution to the individual travel needs. As they
have business contacts with various tourism related companies which are providing
services to travelers, so they are able to offer services according to client’s needs and
budget. Many hotels also make contract with travel agencies for their bookings and so
they are able to get the rooms at best hotels at good prices (Pizam and Mansfeld, 2000).
3. They are able to maintain their client’s trust by offering them range of travel
opportunities from short trips including flight seats booking to big holiday packages,
tailor-made gateways and cruises. Moreover, they provide expert and unbiased advice
along with attractive offers that meets customer’s expectations in desired budget (Riege
and Perry, 2000).
4. They arrange all extras related to travelling like sightseeing, hotel room booking,
transfers, luggage transfer etc. In addition to this, some of independent travel agencies
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provide foreign exchange to customers. Thus they able to enhance the trip by giving
value added amenities and benefits.
5. Even in the seemingly unlikely situations, travel agents are able to make best plausible
arrangements by using their clouts. Other than that they get the problem and travel related
issues to be easily solved (Pedro, 2012).
6. Apart from above services, they also provide travel insurance to their customers which
online companies do not deliver. Travel insurance can be defined as non-refundable or
pre-paid cost related with cancellation of the tour, delay in trip or any sort of disruption
occurred during the trip. It basically involves the cost of hotels, airfares and other related
trip costs.
7. For the tourism related companies including hospitality organizations, they play a major
function, as they interact with potential customers and offer product and services on
behalf of these companies and in return they get commissions. Traditionally, travel
companies including airline and hotels were greatly dependent on travel agencies for their
revenue and business growth, as the travel agents were the one who helps in reaching the
maximum customers. But recently the changing trends have declined their importance for
the travel companies (Travel trends and the role of travel agents, 2011)
2.5 Forces affecting travel industry
As travel and tourism industry is one of the world’s largest and pervasive industries, it is
exposed to various forces of change which are environmental, social, legal and most importantly
technological.
 Technology: Technology has huge impact on growth of travel and tourism industry. As
travel distribution is all about exchange of information and this exchange is facilitated
through technology. From last 50 years this travel industry has faced drastic change in its
operations, scope and size. With the advent of internet, the travel and tourism product and
services has become largest category which is sold over the internet (Katircioglu and et.
al., 2012). Attributing to this fact, it can be said technology and tourism are extremely
compatible to each other. As this industry revolves around the notion of perishability and
intangibility, therefore the role of technology in making the effective communication
with clients and holiday companies is very significant. In addition to it, with the view to
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survive and sustain in this highly competitive business environment, it is required by
travel agencies to employ latest technology in their operations and communication. .
 Change in consumers buying: In UK as the people prefer to travel alone to various
destinations and are interested in experiencing the adventure, so instead of taking the
services of most popular travel agencies, they contact independent travel agents who
provide services as per the demands. Many consumers have shifted their requirements of
having typical holiday package towards more independent travelling, as they prefer
flexible products and services that suit their needs. UK’s independent travel agencies
have seen a remarkable growth in recent years and are now are more than in holiday
package market. When travel related product and services are grouped together at
competitive prices, this package is known as holiday package, though it is not very
flexible as compared to independent travel (Backman and et.al., 2012). It is appropriate
for those people who have fixed duration to spend their holidays. Keeping this in
consideration many travel agencies are giving the tailor-made services to their clients in
order to make them completely satisfied.
 Economy: The economic conditions have also greatly affected the travel business in UK.
For instance, at the times of recessions when economy faces the downturn, people tend to
reduce their spending on hospitality and tourism related activities. This in turn influences
the business of travel companies along with agents and tour operators. Even when people
travel for the corporate purpose, they usually buy discounted tickets from online modes
which further affect the revenue of travel agencies (Know the retail travel environment,
n.d).
2.6 Current trends in UK’s travel market
Travel and tourism has completely changed from being an option for high profile class to
all segments of society. Especially in UK, it has become most important part of people’s life that
helps in gaining new experience and to learn different culture, language and tradition. In addition
to it, most of the people also travel for business purpose (Huang and Hsu, 2009). Presently,
travelling is not just about five star hotels, fine dining etc, it has grown in so many aspects with
new and distinct experiences. Several years ago, travelling was just considered to be the
fascinating activity undertaken by upper class people. But with the growth of economy and
globalization has made it easier for the people regardless of their status to work out their interests
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and plan a trip. Travel industry has faced exponential growth in its business as well as the
operations undertaken by travel companies. Now they are able to provide holiday categories
according to the taste and preferences of the consumers. However, that does not mean that
travelers have stopped taking new experiences that affirm their status (Pedro, 2012).
However, in context with travel industry, competition is rapidly growing fierce, moreover
the change in technology, globalization has largely affected the operations of travel business
organizations which in turn compelled them to incorporate various marketing strategies to gain
competitive success. Entry of new companies that offer online services have aided the
competition and made the while tourism industry complex and intense. This has further
endangered the position of independent travel companies or individual agents. In addition to this,
increase in mobile application and social media influence among consumers has also dwindled
travel agent’s business to great extent (Future of travel and tourism industry with the adoption of
Web services in electronic distribution, 2006). Despite of overall improvement in technology and
ways of communication, the online market has still far way to go be successful as the retail
sector. The leading retail travel companies are using customer opinion and suggestions to their
advantage through product reviews or by forming online communities.
Deloitte, the international research firm has showed that 91% of domestic and 86% of
overseas travel transactions are done through digital channels such as social media, websites,
Smartphone application, peer review or tablet apps. According to the Google also, 81% of travel
related products are purchased online in UK (Online travel market, 2013). Various independent
surveys reflected that the majority of travelers in UK who book their air tickets online prefer
purchasing it directly from the suppliers instead of online travel agents. They approach airline
website to get information about the prices. In context with room booking, same trend is
followed; some people book hotel rooms directly from the company’s websites while others
utilizes services of Online travel agencies as these companies allows people to compare
numerous travel destinations in order to make final decisions. However, there also has been
travel related queries that arises due to online travel companies, thus even today large number of
consumer relies on the recommendations of their friends and family or take advice of
independent travel agents (World travel market, 2011). M-commerce has also growing rapidly in
UK which means that travelers are using mobile devices for making online bookings and also to
get required information from various apps like nearby bars and restaurants, weather, flight
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information etc. UK travelers are also using this application to look up for the direction and other
tourist attraction also. However, it has also been seen that though most of people research tourist
destination for various sources such as Internet, Mobile and the like, but their final decisions
depends on advice of travel agents (The travel and tourism industry, n.d). Apart from m-
commerce and internet, many people are also employing social media to get reviews,
recommendations and to know about the personal experience of others before making decisions.
According to the poll conducted by UK’s leading independent travel agency i.e. Sunshine.co.uk
more than 50% of holidaymakers utilizes social media in order to make sound decisions about
where to visit, where to stay etc. Since the advent of provision of online travelling services, role
of travel agencies are dwindling, as customers are now able to book their flight and vacations at
worthy prices. The online travelling agencies have however jeopardized the growth of travel
agents, particularly independents. Moreover, as many airline companies are offering online
discounts to customers, therefore, these customers are rather that contacting travel agencies book
their ticket online and get reasonable discounts. There are also been in increase in number of
internet users in UK of which most of the people book their vacations online. For this reason
airline companies have also reduced their business with travel agencies and thus are
compensating them less (Park and et.al., 2008).
2.7 Current position of travel agencies
After the alarming effect of global economic down turn, travel business has finally able
to gain positive pattern. People have now restarted spending on time and income on trips.
Because of this, not only the large travel companies have experienced growth in their business
but many small enterprises and independent travel agencies have also earned higher revenues
and profits. As the consumer while spending their money on trips they also want to gain ultimate
travelling experience, due to this reason they prefer travel agents more than online companies
offering travel services (Know the retail travel environment, n.d). Travel agents have also
upgraded their operations with the change in technology which means that they have begin
communicating with their clients through email, online, over the mobile and even through video
conferencing. Along with multiple agencies, Independent travel agencies have also seen
significant increase in their business. As they share personal experience which make the travelers
reassured and more comfortable about their travel plans. Moreover, these agents are able to bring
together all the things client wants to do to make the tour memorable forever. Independent travel
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agents as have knowledge about local special events like festivals so customers are more
interested in taking their services and thus learning the culture and trends of different cities or
countries. Along with that, they also arrange reservations for certain activities such as
conventions, business travels, religious pilgrimages, educational tours and adventure or sport
trips (Andaerson and et.al., 2009).
On the other hand travel agencies have seen decline in their market as their role is being
replaced by the technology. As the customers are now able to access the travel related
information like about destination, transport facility available, prices and fares, hotel prices,
tourist attractions through online mode or by websites easily and instantly, so they are no more
dependent on advice and plans of travel agencies (Hudson, 2010) While the suppliers of travel
products and services are also utilizing this technology to reach more and more customers.
Airline and hotel companies have also reduced their dependency on travel agents and thus have
minimized their commissions to great extent. These companies have encouraged customers to
book tickets and rooms online by offering them good discounts, which in turn made it even
worse for independent travel agents. Traditionally, travel agencies earn their major part of
income or profits in the form of commission offered by tourism related companies like airlines,
hotels etc on the sale of tickets and rooms respectively. But with the innovation in technology
their earnings have largely decreased (Sigala, 2007).
With the view to overcome such challenges and to maintain their competitive position in
the market, travel agencies including independent are now playing multiple roles of information
brokers ( providing useful information to product supplier and customers which are not given
online) and advisors ( assisting customers in their choice of specific destination or products and
providing them value added information. Based on the model of offline and online distribution
channel options as developed by De Kare Silver, it has been found that majority of independent
travel agencies have greater focus on storefront retailing (Independent travel agents, 2013).
Many large corporations have also opened retail outlets that along with serving the customers are
advertising for the tourism related companies brand. Independent travel agencies like STA travel
that target youth and student sector is well acquainted with internet and uses this tool to target
potential customers. For providing the quality services to customer, the company first contacts
them and in accordance with their demand they offer them expert services along with security
and reassurance that online travel agencies find difficult to offer (Buhalis, 2003). From the
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survey conducted by ABTA in 2004, it was found that despite of the online provision of
travelling services, more than 65% of respondents trust the travel agencies, particularly
independent one to get the better deals, as they provide expert services and assurance. Though
the technology has made easier for the customers to get the best deals, but it is difficult for it to
replicate the personal touch, expertise, personalized services and guidance of travel agents. At
certain times, when travelers get stressed out because of unfamiliar places and related issues,
travel agents guides them by providing valuable information and tips based on their personal
experience (Meng, 2010).
Travel agencies are now trying hard to seize growth opportunities by effectively
understanding the demand and expectations of their current as well as future customers. By
carefully examining the factors that influence their decision making process related to travelling
and other associated activities, they better equip themselves in order to address the preferences of
their clients. As with the growing trend of technology, consumers have started using internet to
seek information about travel destinations and various travel options. Internet has provided the
ability to travelers to shop for attractive packages and deals (Riege and Perry, 2000). Thus, it has
become important for independent travel agencies to utilize this feature in order to increase their
domestic market. Social media such as Facebook, Twitter has also enhanced the operations of
travel agencies like they are now able to share videos, photos of exotic places with their clients
and thus influencing their decisions. Furthermore, this technology has enabled the travel agents
to plan the entire process of trip whether for leisure or business which in turn help in making
incredible travelling experience for clients (Davidow, 2001). Earlier the travel agents relied on
GDS terminals in order to provide reservation services to customers and were incapable of
making a valuable trip. But now they have adapted themselves with the change in technology,
customer demands as well as economy and thus are using web services to meet their customers
demand and also to increase their market. They are now able to offer integrated travel services to
clientele. Web services have also reduced their dependency on GDS.
On contrary, one of the most important market of UK i.e. grey market which comprises
of older people who have plenty of time and funds and are also healthy enough to travel has
contributed largely to the growth of independent travel agents (UK travel agents- key insights,
2008).
15

CHAPTER 3 – RESEARCH METHODOLOGY
16

CHAPTER 4 – DATA ANALYSIS AND FINDINGS
17

CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS
18

CHAPTER 6 REFLECTIVE STATEMENT
19

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