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The effect of the Internet on travel consumer purchasing behaviour and implications for travel agencies

Cap Gemini Ernst & Young, tania.lang{at}au.cgeyc.com

The Internet and World Wide Web remain one of the most topical issues for travel agents. Some analysts predict there will be no need for travel agents in the future as consumers turn to the Internet to make their travel arrangements. The aim of this research was to investigate the travel purchasing behaviour of consumers and the future implications for traditional travel agencies. Primary data for the study were collected in the USA, where it is generally recognised that a high level of Internet usage exists. The results suggest that while travel consumers are increasingly turning to the Internet, many are still hesitant to book online. Many travellers surveyed had utilised the Internet for purposes such as obtaining information, but few regularly book online. The main barrier stopping consumers from booking travel via the Internet is the perceived lack of a secure payment method. Other significant barriers stated were a lack of confidence in the technology and a need for a personal service and human interface. The results of this research conflict with suggestions in the literature that travel agents will lose their client base overnight when secure payment methods are developed and consumers become more experienced with the technology. The study highlights that many experienced Internet users still prefer to book their travel via traditional distribution channels and believe there will be a need for travel agents in the future. The study also highlights opportunities that may exist for travel agents, such as the promotion of their services to more informed consumers who have already accessed the Internet.

Key Words: Internet • World Wide Web • travel agents • tourism

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