The internet and information technology has been making a significant impact on the travel industry which is lucrative and explosively growing online business worldwide. Although cyber travel agencies, the typical online travel business, are getting p...
The internet and information technology has been making a significant impact on the travel industry which is lucrative and explosively growing online business worldwide. Although cyber travel agencies, the typical online travel business, are getting popular in Korea, the majority of them has not been quite different from traditional off-line travel agencies except they have used internet sites as promotional tools. The purpose of the study is to examine the customers' perception and preference of cyber travel agencies, and to propose desirable implications for better management of them. A survey on 65 employees of 10 cyber travel agencies in Korea was performed using self-completed questionnaires. The results show that cyber travel agencies in Korea need technical improvements to handle with every step of online business transactions confronting with excessive competitions. They are found not to update and supplement travel contents of their internet sites frequently, but build up a database of customer profiles controlling the function of internet membership. Additionally, it is revealed that as the sales ratio of electronic commerce to entile sales is higher, the labor and PR costs are lower, the content updating is higher, and the building up of customer profile becomes easier. In spite of some inherent limitations, this study is expected to contribute for generating better managerial ideas of cyber travel agencies.