The Impact of Technology on Tourism Agencies: A Research Report

This report investigates the impact of technological advancements on tourism agencies. The research explores how the rise of the internet and online booking platforms has affected the traditional role of travel agencies. It examines the advantages and disadvantages of using travel agencies, considering customer perspectives and the effects of technology on their operations. The report also discusses the limitations of the research, gaps in existing literature, and the methodologies used, including positivism philosophy, a deductive approach, descriptive design, and survey research. The findings highlight the challenges faced by tourism agencies in adapting to technological changes and suggests ways for them to stay relevant in the evolving travel industry. The report concludes with recommendations for tourism agencies to overcome the challenges and create a unique image for customers to thrive in the current market. The report uses primary data collected through surveys, analyzed quantitatively, to understand the dynamics of the tourism industry.

Running head: MANAGEMENT
Are Tourism Agencies going down with the New Wave of Technological Change in the Tourism
Industry
Name of the Student:
Name of the Industry:
Author’s Note:

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Abstract
Technological advancements have reduced the need and preference of using travel agencies. As
individuals have access to information across the globe due to internet, they use the medium for
planning their trips and making relevant bookings. The aim of the research is to determine
whether the tourism agencies are going down with the new wave of technological change in the
tourism industry. The research will also help to know whether technology has suppressed the
craze of travel agencies or not thereby, determining both positive and negative consequences.
This research will help in bridging the gap and determine the effectiveness of technology in
terms of tourism agencies thereby, analyzing both positive and negative impacts.
Positivism philosophy, deductive approach, descriptive design and survey research strategy will
be used. In accordance with these mentioned methodologies, probability sampling technique will
be used for selecting 70 participants will be surveyed in order to gather sufficient knowledge
about tourism agencies and the impact of technology on the downfall of the travel agencies.
Hence, primary data collection process and quantitative data analysis techniques will be used.
Considering the issues those have been identified, one of the best ways of overcoming the issue
of tourism agency downfall is promotion. The travel agencies need to upgrade themselves in
such a way that they create a unique image in the eye of the customers.
.

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Table of Contents
1. Introduction..............................................................................................................................3
1.1 Background of the topic.........................................................................................................3
1.2 Aim of the research................................................................................................................3
1.3 Scope of the research.............................................................................................................3
1.4 Limitations of the research....................................................................................................4
1.5 Gaps in the literature..............................................................................................................4
1.6 Methodologies used...............................................................................................................4
2. Body.........................................................................................................................................5
2.1 Overview................................................................................................................................5
2.2 Technological impact on tourism..........................................................................................5
2.3 Advantages and disadvantages of using travel agencies.......................................................6
2.4 Take of customers about travel agencies...............................................................................8
2.5 Effect of technology on tourism agencies.............................................................................9
2.6 Summary..............................................................................................................................10
3. Reliability, validity and relevance of the findings to date......................................................12
4. Conclusion and recommendations..........................................................................................16
References......................................................................................................................................18

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1. Introduction
1.1 Background of the topic
Tourism industries are the key players when it comes to the tourism sector. The different
tourism agencies help the customers with planning trips and making bookings and suggesting the
best ones in accordance with the desires of the customers (Law et al. 2015). However,
technological advancements have reduced the need and preference of using travel agencies. As
individuals have access to information across the globe due to internet, they use the medium for
planning their trips and making relevant bookings. The customers feel that there is no need to
rely on others for making their own trip because in this way they can save money and enjoy the
trip more wholeheartedly (Roger-Monzó, Martí-Sánchez and Guijarro-García 2015).
1.2 Aim of the research
The aim of the research is to determine whether the tourism agencies are going down
with the new wave of technological change in the tourism industry.
1.3 Scope of the research
The research will contribute significantly for the future researchers because this research
will help to find whether technological advancements are is a good or bad thing for the tourism
agencies. Internet has been rising over the past years that have forced to change the world of
business in many ways (Xiang, Magnini and Fesenmaier 2015). As a result, this will help to
know how technology has taken over the need and significance of travel agencies. On the other
hand, the research will also help to know whether technology has suppressed the craze of travel
agencies or not thereby, determining both positive and negative consequences (Ivanov, Stoilova
and Illum 2015).

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1.4 Limitations of the research
Time and budget will be the limitations of the research because both are present in
limited quantities. The researcher had limited to conduct the research due to which regular meet
up and gathering feedback has not been possible. As a result, it was difficult to know whether the
research is proceeding in the right direction or not. On the other hand, limited budget also acted
as a constraint for the researcher because it restricted the use of literatures because it requited
paying for accessing the content.
1.5 Gaps in the literature
Tourism is a widely researched topic for the researchers in the past but the relationship
between technology and tourism agencies has hardly been considered for any researches in the
past. This research will help in bridging the gap and determine the effectiveness of technology in
terms of tourism agencies thereby, analyzing both positive and negative impacts.
1.6 Methodologies used
For this study, positivism philosophy, deductive approach, descriptive design and survey
research strategy will be used. In accordance with these mentioned methodologies, probability
sampling technique will be used for selecting 70 participants will be surveyed in order to gather
sufficient knowledge about tourism agencies and the impact of technology on the downfall of the
travel agencies. Hence, primary data collection process and quantitative data analysis techniques
will be used.

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2. Body
2.1 Overview
This section of the proposal is developed with the purpose shedding in-depth light about
the concerned research topic. Tourism industry is a popular sector whose demands are increasing
with each passing day due to both leisure and professional purposes. Travelling nationally and
internationally is done by individuals more compared to the past. However, like all other sectors,
technology has slowly gripped the tourism industry as well. With technological advancements,
tourism related information is readily available for the customers. This have given rise to serious
concern for the travel agencies because individuals are putting in effort in gathering information
and booking tickets rather than going to the travel agencies.
2.2 Technological impact on tourism
Technology has gripped the tourism sector just like other sectors. Tourism comprises of a
major portion of the hospitality sector and is highly preferred by both internal and external
stakeholders. As mentioned by Sun (2016), even the places facilitating tourism are using and
incorporating technology more in the services they offer. Tourism places are presenting
information regarding their localities and uniqueness in the internet so that individuals around
the world are able to access the related information without being physically present. The
tourism sector is taking the help of technology for promoting them and creating a unique image
in the eye of the individuals across the world. However, as argued by Moutinho and Vargas-
Sanchez (2018), technology is also misused when it comes to travel and tourism that affects the
experience of the travelers negatively.

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The negative impact of technology has emerged because it has been seen that technology
is used as a one-way street for the travelers. Often technology becomes a reason of harassment
for the population because they are send surveys repeatedly that causes irritation (Al-Kwifi
2015). There is no doubt that technology plays an important role in travel and tourism, as people
use technology, that is internet facilities for bookings, reservations and other cost saving
activities. This is the time when tourism bodies save the information of the individuals and use
then later for sending notifications, updates and emails to an extent that individuals get irritated.
On the other hand, technology have reduced the scope of personalize services for the individuals
(Koens, Postma and Papp 2018). This is because tourism bodies provide additional services such
as free internet services and free local calls that is associated with less or no personalized service
thereby, making technology a one-way street.
In spite of the pertaining negative impacts of technology for tourism industry, it is still
highly preferred and used by populations across the world. As mentioned by Gutierrez (2015),
tourism creates a great deal of convenience for the tourists as well as provides opportunity for
tourism bodies for increasing revenues and profits. Additionally, some parts of the industry have
started using technology prudently because of benefits it offers in terms of communication and
exposure. Technological use has made it difficult for the travel agencies because their use are
less preferred than previously. Hence, it can be said that technology has become a mixed bag for
the tourism industry and tourism agencies are no different (Alexis 2017).
2.3 Advantages and disadvantages of using travel agencies
Travel agencies are the key pillars in the tourism sector and have been there for several
decades. The role of the travel agencies is to plan travel for individuals willing to travel by
providing them with suitable information, booking tickets and hotels and planning the entire tour

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accordingly. As mentioned by Chow, Lai and Loi (2015), as the travel agencies are a part of the
tourism industry for long; they know the sector inside and out. Though people can plan trips over
the internet, the use of travel agencies is still widely preferred among the populations. However,
as argued by Xiang, Magnini and Fesenmaier (2015), recent incidents that people are having due
to travel agencies is creating a negative impact that is becoming difficult to overcome.
According to Silva and Goncalves (2016), travel agencies in tourism industry are highly
preferred because they can help the interested individuals to find crazy deals that would not have
been possible when people plan trips on their own. Travel agencies are able to find crazy deals
because of their several years of experience in the sector. The experience in the sector have
helped the travel agencies build relationships with potential suppliers that leverage them better
deals than when surfed by individuals. Relationship with suppliers has help travel agencies offer
package deals that offers more savings on to bookings that is not possible for individuals to get
hold. However, as argued by Hu (2015), there have been instances where the travel agencies
have failed to live up to the expectations of people availing their services because the customers
might be unsatisfied with the hotels and the foods arranged.
Taking the help of travel agencies in the tourism industry is also beneficial because they
advocate on the behalf the individuals. As opined by Pastor Cuirana (2015), in case of
emergency or if the trip gets derailed in due course, the travel agencies can be questioned. For
instance, if the luggage is lost or some natural calamity happens, travel agencies are at the back
for help. However, as argued by Vasilenko, Tsed and Volkova (2016), travel agencies might put
off their hands or shed the responsibility from their shoulder thereby, keeping the tourists
stranded and unfriendly situations. For example, the recent situation of Thomas Cook has forced
the tourists think twice before taking the help of travel agencies. Several tourists were forced into

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unfriendly situation and the respective countries have to take action to bring their people back, as
Thomas Cook filed bankruptcy one fine day without any prior notices. Moreover, tourists faced
loss that has used Thomas Cook for making travel plans.
2.4 Take of customers about travel agencies
Travel agencies are the long term and persistent players of the tourism industry and have
been serving the customers over the years sincerely. However, the emergence of technology and
internet has developed mixed feelings and views about travel agencies and their role in the
tourism sector. As known, travel agencies are considered as one of the most reliable sources
when it comes to making bookings for travelling purposes. As mentioned by Rusu et al. (2016),
the travel agencies plan the entire trips for the customers by making necessary bookings for the
entire trip. In doing so, the customers have to buy specific packages that suits their needs and
financial standards. Hence, when travelling out of the home place, the customers always have
someone to look for, contact and communicate in the case of need. However, as argued by
Drosos and Tsotsolas (2015), some of the customers feel that the travel agencies do not consider
the aspect of low or moderate spending when it comes to planning trips. This is because they
focus and ensure that their profit level is not compromised. There has been instance where the
customers feel that they have been charged fairly high when using travel agencies.
When travelling, the individuals want to relax and soak in and enjoy the place they are
going to. Hence, during this time, the individuals do not want to engage them and put their mind
into making bookings and finding stays. As mentioned by Aguiar-Quintana, Moreno-Gil and
Picazo-Peral (2016), travel agencies allow the individuals to have a trip without such hassles
because the agencies only take the responsibility of conducting the entire trip with less or no
involvement at all from the customers. On the other hand, also the customers can look for help

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and support in case of any loss and accidents. However, as argued by Ozogul and Baran (2016),
even the travel agencies get off their hands when it comes to help the customers stranded outside.
The recent example is the case of Thomas Cook where the longest running travel agency went
bankrupt thereby, leaving several tourists stranded outside. Moreover, several tourists who
planned their trip with the travel agency did not get their money back. The Governments of the
different countries had to intervene to take their citizens back home from the tourist destinations
(Del Chiappa, Atzeni and Pung 2019).
2.5 Effect of technology on tourism agencies
The use of technology has taken a toll for the travel agencies. Since the emergence and
incorporation of technology in the tourism industry, people are more on their own rather than
relying on travel agents. As mentioned by Berne et al. (2015), tourists have become more self-
reliant because they have the access to any type of information at the tip of their finger. This is
because all the information is present over the internet and the individuals do not feel taking the
help of travel agencies when they can do it themselves. Individuals can perform all the activities
and procedures by themselves over the internet that the travel agencies would do for them.
However, as argued by Sahin and Sengun (2015), still travel agencies have better and effective
deals those are available to them only as they are agents.
The mindset of the individuals has changed over the years due to the technological
advancements because with technological advancements, accessibility of information has
increased largely. Having an internet connection and a smart device is enough for the individuals
to decide their travel destination and make planning accordingly such as hotel bookings and
accommodation bookings (Gulbahar and Yildirim 2015). As a result, individuals do not want to
rely on third parties for deciding their tour rather wants to make bookings accordingly. This

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results in compromise for the travel agencies because their sales and revenue have minimized
largely.
The purpose of travel and tourism has increased significantly if compared to the past but
the rise does not signify the rise of using travel agencies. This is because of the increased use of
technology that has influenced individuals to be self-reliance. In the internet, there are several
websites who offer airline bookings, accommodation bookings and sightseeing bookings. Once
individuals select the place they want to travel, they can book flights, accommodations and plan
their sightseeing accordingly using the available online websites (Diaz-Chao, Miralbell-Izard and
Torrent-Sellens 2016). From this, it can be known that people are losing interest in taking the
help of travel agencies because knowingly travel agencies do not put effort in finding low cost
options for the individuals. For instance, with so many options of low-cost airfare, travel
agencies hardly take initiatives in findings discounted flights for the individuals because they are
more concerned for their own benefits in terms of sales and revenues.
2.6 Summary
Hence, from this section, it can be summarized that technological advancement is an
advantage for the tourists but to a certain extent have limited the scope and need of travel
agencies. This is because information is readily available for the individuals willing to travel on
the internet. Highly relevant information about the tourist destinations is available to the
individuals at the tip of their finger. This is a concern for the travel agencies because less people
are coming to them for assistance regarding planning of tours. Moreover, recently, after the
bankruptcy of the age old travel agency, Thomas Cook, individuals have lost the reliability and
trust on travel agencies. People assume that they might get into serious trouble by taking help of

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travel agencies. However, the benefits of travel agencies cannot be denied altogether because
they are the experts in the field and give useful information to the people availing their services.

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3. Reliability, validity and relevance of the findings to date
For the current topic, “Are tourism agencies going down with the new wave of
technological change in the tourism industry” specific research methodologies will be used those
help in completing the work suitably and achieve the desired outcomes. Below will be discussed
the different methodological tools those will be used for undertaking the research.
Positivism philosophy will be used for the current research because this will help in
developing the entire research based on scientific evidence and statistical data. Using positivism
philosophy will enable to gather deep knowledge about technological advancements over the
years and how it has impacted the tourism business sector. As a result, statistical evidence can be
considered and referred to for determining whether the preference for tourism agencies have
increased or decreased since the emergence of technology. Hence, it will be possible to study the
reasons of why tourism agencies are losing the craze with the rise of technological
advancements. On the other hand, the fact whether tourism industries are going down or not can
be determined by using logic and facts about the extensive use of technology in the business
sectors (Kumar 2019).
Deductive approach will be used for the current research because using this approach will
allow referring to past studies and using secondary data from different resources. Tourism is a
widely researched topic in the past and still holds maximum significance among the researchers.
Hence, referring to the past researches will provide opportunity to study the past state of tourism
agencies and it can be compared with the present state of the tourism industries. Additionally,
referring to past studies and different secondary sources extensive comparing and contrasting of
the information collected. The opinions and views of different authors in different secondary

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sources can be compared and contrasted that will help in understanding whether the rise of
technology have affected the tourism agencies positively or negatively so far. Moreover, it can
also be determined whether the individuals still prefer using tourism agencies or use technology
for planning trips and travels (Bresler and Stake 2017).
Descriptive design will be used for this research because this will help to gather
knowledge about the current topic inside and out. For the current research, descriptive design
will be the most suited because this will help to identify the issues that currently exist in the
tourism industry when it comes to the travel agencies. As a result, the challenges faced by the
individuals using tourism agencies service can be studied. Additionally, the use of descriptive
design will also help in studying the cause and effect of technological rise for the tourism
agencies. Studying the cause and effect relationship will help to determine whether technology
have been beneficial for the tourism agencies or not. Hence, conducting the current study will
allow investigating the current perception of the individuals about using tourism agencies or not
(Flick 2015).
Survey research strategy will be applied for the current study because this will be the
most appropriate one among the others. Survey research strategy will be appropriate because this
will help in collecting data from large population. Survey facilitates collecting data from fairly
large populations because it can be easily administered. The individuals those have used travel
agency services before will be selected as the population size. Close-ended survey questionnaire
will be designed and the individuals will have to select the most suitable options for expressing
their opinion. The survey will be distributed through emails of the customers of the travel
agencies for collecting data from them. Additionally, survey will also be selected because this
will help in gathering the recent and updated data about the topic (Ledford and Gast 2018).

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For applying the survey research strategy, selecting appropriate sample size is needed.
For this study and the survey, probability sampling technique will be used for selecting the
number of respondents who will take part in the survey. Out of the large population of customers
who have availed the service of travel agencies, 70 will be selected as the sample size for the
research. Out of the entire population size of the individuals who have used travel agencies for
planning trips, the opinion and views of 70 respondents will be selected randomly so that
partiality and biasness is restricted (Fletcher 2017). All the individuals within the population will
have equal chances to be a part of the data collection process and the respondents will be
selected randomly. Gathering data from the selected randomly will help in determining whether
technology have helped them in becoming independent when it comes to making bookings and
planning trips or they still prefer taking help of the travel agencies (Humphries 2017).
For the current study, primary data collection process is the most appropriate. As the term
indicates, primary data collection process indicates collecting data for the first time. For this
study, the primary data collection process is most appropriate because data in respect to the
current research topic will be collected for the first time. Recent data is more valuable and valid
for this research because technological development is a recent phenomenon that has gripped the
tourism sector. Additionally, it is recently when issues and challenges in respect to tourism
agencies have risen. Collecting data using the primary data collection process will hence help in
developing the current study with most recent and highly relevant data thereby, fulfilling the aim
and objectives (Dumay and Cai 2015).
For this study, quantitative data analysis technique will be most appropriate. This is
because numbers can be used and act as the basis of the analysis. With quantitative data analysis
technique, the opinions and responses collected in the survey can be expressed in numbers,

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percentages and averages and interpreted accordingly. The positive and negative views of the
individuals who have taken part in the survey can be expressed using numerical values and
hence, it can be known whether technology has boosted the use of tourism agencies or not
(Snyder 2019).
When conducting a research abiding by the ethics of the research is of utmost
significance.
The first and foremost research ethics that will have to be considered is data
confidentiality. In accordance with this ethics, the identity and the data shared by the selected
samples cannot be revealed and needs to be kept confidential. As a result, chances of biasness
and conflicts are minimized thereby, using reliable data. On the other hand, data needs to be
collected from the concerned respondents after taking consents. Forcing the individuals to share
their opinion and not communicating with them the actual purpose of the study is against the
ethics of the research and compromises with the quality of the study undertaken (McCusker and
Gunaydin 2015).

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4. Conclusion and recommendations
From the above information, it can be concluded that technology and its application have
minimized the craze of tourism agencies. When technology was developing, people had very less
knowledge about how to use it in every aspect of life. As people gained knowledge about the
immense role of technology in daily life, since them it has been highly used. Technology has
gripped different business sectors and has only shaped the industries for the betterment. With the
extensive use of technology, the existing players were affected negatively to a certain extent as to
some doing things on their own was more preferable by using technology rather than taking help
from others. Similar is the case of tourism agencies in the tourism sector where the impact of
technology is evident. With the rise of technology, people tend to make their own booking when
it comes to booking flights, accommodation and sightseeing. As information are readily available
in the internet, people searches accordingly and plan their trips henceforth. As a result,
individuals are able to plan their trips in the cheapest way possible that is not the case when the
help of tourism agencies are taken. For instance, the individuals can find the cheapest flights or
book the hotels at discounted prices that save money for them and yet they are able to enjoy their
trip. However, on the contrary, the tourism industries are still preferred because the individuals
believe that there is still someone there to back them up.
Considering the issues those have been identified, one of the best ways of overcoming the
issue of tourism agency downfall is promotion. The travel agencies need to upgrade themselves
in such a way that they create a unique image in the eye of the customers. For example, the
tourism agencies need to show that they are better when it comes to planning trips because they

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offer cost effective and desirable deals that individuals cannot find when they do travel booking
alone.

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