Exploring ICT's Role & Management Challenges in Travel Agencies

This essay explores the impact of Information and Communication Technology (ICT) on travel agencies, highlighting the shift from local to global markets due to advancements in internet speed and accessibility. It emphasizes how ICT has transformed the operational structure of travel agencies through computer reserve systems, global distribution systems, and the internet, leading to increased productivity, reduced costs, and enhanced customer reach. The essay also addresses the challenges posed by smart consumers who rely on customer-generated content and online comparisons, underscoring the need for innovation and improved service delivery to maintain competitiveness. Ultimately, the analysis concludes that ICT has had a positive impact on travel agencies, enabling them to adapt to modern customer demands and expand their market share.

Running head: Travel Agency-ICT Management Issues
Travel Agency-ICT Management Issues

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Travel Agency- ICT Management Issues
In recent years there are some drastic changes has come in the information and
communication technology. Information and Communication Technology has widely
affected the economic and social structure. This new technology developed the market for
travel agencies. Those travel agencies which are limited to local market now from the help of
the internet they can expand their business to global market. Today due to high speed internet
the information has transferred from one place to another very rapidly. Consumer with this
new technology becomes smart. With the help of a new technology it has increased the
productivity and day-to-day business of a travel agency.
Today where the internet speed has increased that helped the travel agencies to book a
trip easily. This also helps in to gain customer satisfaction. The high speed internet is a
challenge for travel agencies. Customer generated content plays a major role for a company
such as customer reviews. Company’s goodwill depends majorly on customer reviews due to
high speed internet other customer can easily gather information of the company and can
compare from other travel agencies (Law, Buhalis & Cobanoglu, 2014). Today in this new
technological advancement and with the smart technology the customers have become smart.
To maintain its stability it is required for the company to understand consumer knowledge
and provide better services that the consumers cannot easily access. It is required for travel
agencies to be innovative and implement new ideas to attract customers.
Travel Agencies have become more productive due to fast transfer of information. It
also helped the travel agencies to reduce their operational and transaction costs. There are
things which changed the organisation structure of the company. Computer reserve system,
development of global distribution system and the internet totally changed the working of
travel agencies (Law, Buhalis & Cobanoglu, 2014). It has changed the day to day business of
a travel agency. Travel Agencies have become more competitiveness and their hospitality has
also increased due to these implications. Today to reach customer and making a database of
customers of their requirements becomes very easy. This database also helped to get more
reach all over the world (Mariani, Buhalis & Vitouladiti, 2014). It also helped in the
company’s growth and can increase the market share.
It can conclude that information communication and technology has changed the
market. Travel agencies which are limited to local market and now they has been expanded to
the global market. Travel agencies have become smart to deal with the modern customers.

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Travel Agency- ICT Management Issues
The companies who are more innovative and implementing new ideas to deal with the
customers have able to make a larger market share. Organisational structure of the company
has changed due to development of computer reserve system, development of global
distribution system and the internet. Therefore it can say that information and communication
technology impact on travel agencies is positive. It cannot say that it has a negative impact of
ICT.

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Travel Agency- ICT Management Issues
References
Law, R., Buhalis, D., & Cobanoglu, C. (2014). Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management, 26(5), 727-750.
Mariani, M. M., Buhalis, D., Longhi, C., & Vitouladiti, O. (2014). Managing change in
tourism destinations: Key issues and current trends. Journal of Destination Marketing
& Management, 2(4), 269-272.