Impact of internet on travel agencies in UK - Essay Example

IMPACT OF INTERNET ON TRAVEL AGENCIES IN THE UK Internet in tourism is "possibly one of the most exciting developments in travel and tourism since the industry was invested" (O'Conner 1999). The internet technology has also revolutionized the world of travel and tourism in much the same way that it has affected so many industries. Practically there are very few industries that have been affected by the internet. Since the 1980s, computers have become part of the new revolution of development of the world. This road to the development of the internet tourism industry can be understood in two phases. The first phase includes the introduction of computer technology in the travel business and the various methods employed to make internet an integral component of travel industries (Deimezi and Buhalis, 2003, np). The second phase includes the impact of the internet revolution on the general public at large, where the public gained more autonomy and control in various aspects of travel and tourism. HOW THE INTERNET PROVED TO BE THE TOOL FOR TOURISM AND TRAVEL AGENCIES The internet technology was able to provide for the first time to its customers the knowledge and information regarding their destination. Prior to this the customers had to rely on the word of mouth or more precisely on the word of the brochures for marketing. As tangible as the product of the travel is, it was not able to generate enough interest, trust or information in the client's mind to evoke appeal. Therefore, the level of satisfaction of the tourist was never achieved and the customer felt something left to desire in the voyages. The internet was able to change virtually the whole situation for the industry of tourism. Where in the past, the lack of information hindered the clear communication of the travel packages and plans, there now existed whole paraphernalia of information and guides which helped customers to identify which location was best suited for them and their exclusive tastes. It was easier to convince the customers of the various costs that pertain to traveling and the various modes of transportation that they could avail. All in all, the tourism industries and agencies for the first time were able to give a full account of their travel package before the start of the tour! PHASE I: THE INTEGRATION OF INTERNET IN THE TOURISM INDUSTRY The travel agencies have a very hectic service to provide to its customers. Traveling to a new location is a very hectic and risky enterprise. The tourists have to take into account very small details in traveling which they might not consider when at home. These include travel and mode of travel, the costs and expenditures, the number of days that the tourists plan to stay, locations where they want to travel and the times set for that, food and accommodation, good maintenance services for clothing, dining, eating etc., and recreational spots etc. (Deimezi and Buhalis, 2003, np). A travel agent therefore, not only has to help the tourist decide where he or she should go for the vacation but also has to take care of these essential and miniscule details. The more thorough the travel agent is in planning the whole trip for the client, the better ranked the company is. But all these arrangements cannot take place without the essential ingredient of money. The client's choice of tourism spot is largely dictated by the amount of money he or she can spend on the trip. Again it is the travel agent who should have the ingenuity of choosing travel spot that is right for the client, is able to provide the necessary services required and lets the customer think that he or she is getting a great deal. So where does the internet help in all this' The internet simply stating, has become the tool that organizes and categorizes this vast information into a form that is both comprehendible to the client and that is able to provide the necessary information to the reader, without encroaching too much (Deimezi and Buhalis, 2003, np). Now the travel agencies are able to communicate to the customers with the use of graphic detail and on the spot pictures and videos of the tourism sites in order to lure the customers. The use of multimedia, PowerPoint presentation and graphics has been a boon to this industry, which has to convince its customers via the word of mouth (Deimezi and Buhalis, 2003, np). The many changes that have taken place with regards to the evolution of the tourism industry led to the outdating of many policies of the UK tourism related policies. Among these the most prominent are the PTD and the ATOL. Once an important part of the tourism processes, the presence of ATOL has reduced, and is no more applicable in the current tourism industry scenario (TUI Travel UK, nd, pp 3). The introduction of the low cost carriers was the second innovation that spurred the activity of the internet in the changing industry. These low cost carriers or LCCs are now an active competition to the charter airlines and have sped up the travel of the leisure tourism manifold. This has increased the competition further as well as reduced the price of flights thereby encouraging more customers (TUI Travel UK, nd, pp 3). PHASE II: THE WORLD WIDE ACCESS TO TOURISM AND TOURISM INDUSTRY The second phase of the revolution of tourism industry and travel agencies was the introduction of travel related services and information on the internet. Immediately after the integration of the internet, the travel industry achieved its fastest accessibility ever. Now the travel and tour industry became available for the whole world to see, and the boom of the industry began (Deimezi and Buhalis, 2003, np). Analysts claim there are many benefits to the integration of information technology and the internet in the tourism industry. As mentioned, the internet was able to provide all the answers to the travel issues for the first time to the public in a very concise manner. Since the tourism industry relies on information that should be up-to-date and accessible, the internet has been able to provide this ready access. Also, since the travel agency has to cater to many issues related to traveling, and requires prompt information and connection, therefore, the internet is one of the most effective ways to carry out all the functions with minimum of time. Again the information suddenly became accessible to the world regarding different tourist spots and places, which were previously known locally or did not have the access to the global audience before. This in turn has helped the tourism industry as it put to map the various locations and options for travel and the best ways to get there. This has helped boost the tourism industry as well, since now there are more people who are likely to look up traveling options due to the ease, and therefore decide on taking trips which suit their budgets (Deimezi and Buhalis, 2003, np). These innovations have led to an increase in the competition as well, where the people are demanding more for less and are asking for good quality service. Therefore, now the travel agencies have to ensure that they provide a good experience to their customers so as to ensure their return as well as referral. Therefore the global industry of the world is now a more challenging enterprise that demands high level of service and quality. INFORMATION COMMUNICATION TECHNOLOGIES OR ICT The internet has increased the speed of the various aspects of travel and tourism industry. It has worked two ways in the tourism industry. Firstly it has worked as a communication and information medium to the customers about the various touring resorts and locations. Secondly, it has become a marketing place for the various travel agencies. Therefore, when looking up tourism one is likely to find sites that belong to either one of the two categories. However, there has been more expansion in these fields. With interactive and attractive designs of the websites, the travel agencies now aim at pulling the customers both content wise as well as aesthetically. While some sites provide the information regarding the tour in a single website, there are many which focus on one particular aspect of the tourism industry. Therefore, the amount of information that one is likely to find on the internet is phenomenal (Deimezi and Buhalis, 2003, np). This does not mean that the sites are providing quality content. Not each and every site goes through an inspection or evaluation and therefore, the content may be erroneous, outdated, or irrelevant to the actual information. This creates a very likely opportunity that a person may receive false information and makes mistakes about his choices. EMERGENCE OF NEW AND IMPROVED TRAVEL AGENCIES The new travel agencies that evolved out of this rapid transformation of the tourism industry were of companies which had the astute judgment to change themselves in accordance with the trends of the future. Most of these were already multinational companies with an established name in the field of tourism industry (Deimezi and Buhalis, 2003, np). These travel agencies took the level of service to higher levels by creating partnerships with the different services associated with the tourism industry. These services ensured the provision of all the requirements and facilities that a tourist would need during his or her travel and thereby provide an unsurpassed level of service. The care of travel, stay, lodgings, recreation and guidance to different locations, along with transport services all are included in such packages. The result is the evolution of a highly evolved travel agency industry that helps the tourists on every step of the way, making the travel a memorable experience. Most of these industries prior to the internet age were working in the physical forms of offices. But now with every thing at the click of the button, the new generation of e-tourism and e-travel agencies has also arrived. These sites are able to provide the customers with online information about its services, the cost, the location where it is carrying out its services, and does all of the interactions and preparations online. Such sites are often also able to provide the customers with last minute bookings and flights, probably because they are in constant contact with the airline schedules and internet booking of flight situations. Among these the most popular in the UK are the Expedia and lastminute.com which solely are internet based companies (TUI Travel UK, nd, pp 4).It is now a very common method for booking tickets on the internet, and has a printed version of the ticked ready. Traveling has never been this easy (Deimezi and Buhalis, 2003, np). ELIMINATION OF THE MIDDLE MAN Perhaps the biggest loss of the tourism industry due to internet revolution was the reduction in the number of travel agents and the "middle men". Since many of the activities were now easily available on the internet and could be carried out from their by the customers, it removed the need for travel agents (TUI Travel UK, nd, pp 4). EXAMPLES OF SUCCESSFUL UK TRAVEL AGENCIES TUI TRAVEL UK This travel agency has kept itself with the times of the travel and tour industry and has emerged as a very strong and prominent name in leisure tour industry. It is a global enterprise working in more than 150 countries and is serving 300 million customers. This advanced form of traveln agency, if that is the name given to it, is currently boasting UK's largest carriers, including Thomson Holidays, First Choice Holidays and Thomsonfly respectively (TUI Travel UK, nd, pp 1). With the large numbers of customers being curtailed to, this company aims to become the top most company of the UK serving UK and Ireland respectively (TUI Travel UK, nd, pp 1). O'Conner, 1999. Rania Deimezi and Dimitrios Buhalis, 2003, np. Information Communication Technologies and Tourism Industry (Part I). Last accessed on March 24, 2009 from http://www.traveldailynews.com/pages/show_page/20127 TUI Travel UK Position on the Package Travel Directive, nd. Site accessed on March 12th, 2009 from http://ec.europa.eu/consumers/cons_info/10principles/en.pdf Read More