A brief analysis of traditional travel agencies’ strategies to deal with tourism e-commerce

A brief analysis of traditional travel agencies’ strategies to deal with tourism e-commerce

Abstract: With the development of modern technology and information industry, the rise of the Internet has brought new opportunities to the tourism industry. The emergence of tourism e-commerce has inevitably weakened the advantages of traditional travel agencies. This article explores strategies for how traditional travel agencies can develop better with the help of this new thing under tourism e-commerce.

Keywords: tourism e-commerce; traditional travel agencies; response; strategy

1. Overview of tourism e-commerce

Tourism e-commerce Commerce is the application of e-commerce in the specific industry field of tourism. The World Tourism Organization pointed out in its publication "E-Business for Tourism": Tourism e-commerce is to improve the internal and external connectivity of tourism organizations through advanced information technology means, that is, to improve the connectivity between tourism enterprises and between tourism enterprises. Communication and transactions with upstream suppliers, tourism companies and tourists, improve the internal business processes of tourism companies, and enhance knowledge sharing. It has: relying on the Internet, direct consumer participation, involving all levels of enterprise operations (product design, marketing, enterprise management MIS, customer management CRM, resource management ERP, supply chain management SCM), huge information sources, convenient , fast payment methods and other features. According to statistics from Data Monitor, global tourism e-commerce has grown at a rate of more than 350% for five consecutive years.

2. The impact of tourism e-commerce on traditional travel agencies

Tourism e-commerce makes the traditional tourism industry face the opportunities and challenges brought by the information revolution. More and more tourism products Suppliers set up their own homepages online and try online promotions and direct product sales. A large number of travel products such as hotel reservations, aviation services, car rentals, and travel routes are sold online, of which air ticket business accounts for the majority (80%) of the transaction volume. In addition, the volume of booking transactions is also growing very rapidly, making the travel agency industry, as a traditional travel transaction intermediary, facing a crisis of shrinking survival space.

(1) The establishment of online marketing channels will directly lead to the subversion of the sales channel value chain constructed by traditional travel agencies;

1. Travel agency sales channels refer to travel agencies through various direct or Indirect way, the entire circulation structure that transfers tourism products to the final consumers is also called the sales distribution system. Specifically, members in the distribution channel (i.e., travel agencies as intermediaries) have the main functions of production, sales or agency sales, organization and coordination, distribution, and information provision. [2]

2. Internet marketing channels are channels for information release. The company's profile and product types, quality, prices, etc. can be told to users through this channel; online marketing channels are a quick way to sell products and provide services. Users can directly select and purchase the products they need online, and pay through the convenience of the Internet; online marketing channels are a place for enterprises to negotiate obligations and carry out business activities, and are also an ideal place for customer technical training and after-sales service.

3. Online marketing channels basically include all the main functions of traditional sales channels. At the same time, online marketing channels reduce the circulation link, which not only saves commissions to middlemen, thereby reducing circulation costs and making enterprises more efficient. It is possible to sell its tourism products to the public at lower prices, and it also strengthens the control of tourism product producers over their products, fully embodying the advantages of tourism e-commerce. [3]

(2) The emergence of tourism e-commerce has weakened the basic functions of traditional travel agencies;

? The reason for the existence and development of enterprises such as travel agencies is to create a New ways of delivering information and combining resources. The combination of this method forms an efficient economic organization in this field, replacing the guerrilla nature of individual tourism services with the scale of the enterprise; reducing the impact of sales changes with the overall image of the enterprise; creating creation with the network of the group Establish a better information transmission mechanism to survive and develop in market competition? [4]

1. The production and sales agency functions of travel agencies are weakened:

The production function of travel agencies can also be called assembly functions, which means that travel agencies sell products to customers at prices lower than the market price. Hotels, tourism transportation and other related departments purchase various service items needed by tourists in bulk, then assemble and process them, and integrate them into the travel agency's own service content, thereby forming a unique tourism product function. Travel agencies become agents that provide travel products and earn commissions by promoting their products. The emergence of tourism e-commerce has weakened the agency function of travel agencies.

2. Weakening the information provision function of travel agencies

From a certain perspective, travel agencies can also be considered an information industry. This is determined by the industry characteristics of travel agencies.

Travel agencies involve six major elements: food, accommodation, transportation, travel, shopping, and entertainment. At the same time, tourism is transnational and cross-regional, and tourism management has high requirements for information sharing. Therefore, information resources are one of the elements of travel agency operations. First, it accounts for a large proportion in the asset composition.

The emergence of online "online travel companies" has challenged the function of traditional travel agencies in providing information. It is an information system in itself. Hotels, tourist attractions, tourism transportation departments and other tourism enterprises can directly publish their product information on their homepages and websides through the Internet. The information is highly concentrated and easy to operate. It is quick and easy. Potential tourists only need to enter the site of interest to get relevant information without being restricted by the travel agency's product portfolio.

(3) Tourism e-commerce makes personalized tourism possible.

As a new sales channel for tourism e-commerce, online marketing has the characteristics of cross-time and space, interaction, and integration, making personalized tourism possible. Online tourism collects demand information from different tourists in a timely manner through the community on the website and obtains sales feedback information from producers. The B to C and B to B, C to C models of tourism e-commerce have strengthened the connection between producers and producers, consumers and consumers, making self-service routes and self-service travel a reality.

3. The development strategy of traditional travel agencies in response to tourism e-commerce

As one of the three pillars of the tourism industry, travel agencies are responsible for assembling travel products and directly promoting and selling to travel consumers. function, and at the same time, it is also responsible for providing timely feedback on tourism market needs to tourism product supply companies. The intermediary status of travel agencies determines the importance of collecting information, transmitting information, and comprehensively utilizing information. The use of the Internet not only creates more opportunities for travel agencies' business development, but also poses great challenges to the traditional business methods of travel agencies. Under the new form, how should traditional travel agencies develop?

(1) Make full use of opportunities to carry out tourism e-commerce and transform from real operations to virtual network operations?

Network Tourism is not a subversion of traditional tourism, but the integration of the Internet and tourism. Travel agencies are middlemen in the tourism industry. They should use skilled business skills to intervene in the Internet, carry out e-commerce, and use the Internet platform as an office to conduct "virtual operations."

For example, Shanghai Chunqiu Travel Agency used Internet technology to build a modern platform for itself. They have embarked on a valuable path of tourism e-commerce and set an example for domestic peers. Shanghai Spring and Autumn Travel Agency began to apply computer real-time reservation system as early as 1994, and established a tourism e-commerce website in 2001. Chunqiu Travel Network takes accurate information, convenient booking, offline service quality and booking success rate as assessment indicators, and plans to establish a website structure and web format that is suitable for them, so as to update prices, class opening dates, and travel arrangements at any time. Supply standards, etc., and launched products such as business booking, ticket booking and self-guided travel, striving to reduce the whole service into parts. In just three quarters, Chunqiu Travel Network's revenue and profits quickly entered a virtuous cycle of revenue creation. In the first quarter of 2001, the operating transaction volume reached 1.2 million, and in the second quarter it reached 4 million. It is expected that in the third quarter it will Reached 6 million, and achieved a good profit target.