Everyone can make a reservation and purchases the ticket for a trip on the website at tremendous savings off from the normal travel rate, and receiving special price with wide range of travel packages selection.
And, as we are experiencing the cuttin...
Everyone can make a reservation and purchases the ticket for a trip on the website at tremendous savings off from the normal travel rate, and receiving special price with wide range of travel packages selection.
And, as we are experiencing the cutting edge technology these days, the rapid development and fast diffusion of Information Technology provides a new business opportunity on the Internet, which enables to provide a concept of Online Travel Agencies, the e-Commerce Service.
The Online Travel Agencies excel with travelers in wide range of selection and clearly lead the online visitors into temptation, but business travelers are actually more satisfied with the online experience and services of reservation on the Websites.
In this study, customers often use online travel agencies as an information resource and then proceed directly to specific airline, hotel or rental car on the Websites. The customers prefer the online experience as evidenced by higher customer satisfaction and purchase impact rates, because the Online Travel Agencies offer more services and quality of options than offline agency shop. For instance, travelers find it easier and wide range of selection to determine the travel schedules Web sites as opposed to offline agency shop.
The travel sites have an opportunity to capture more of the unmanaged travel market and especially to increase sales of travel packages, such as airlines and hotel combinations with rental vehicle, but to do so they need to more clearly demonstrate to customers that they are getting good value.
The online travel agencies enable their expertise fields and broadcast it to the public, and about 500 agencies are delivering the online services in 2004. As the online travel market grows, existing players are adopting varying business models and introducing new products, through enhanced technological capability, in order to attract more customers and exploit cross selling opportunities.
This dynamic form of packaging provides an opportunity for the online agencies to increase average spend as a result of cross selling and generating higher profit margins. Clearly, with the Internet providing greater transparency of pricing, the traditional model of the tour operator will be at risk where a customer is able to make a reservation on the constituent parts of a holiday cheaper through alternative sources.
The development of a small number of large, well-established online travel agencies over recent years has provided incumbents with a considerable source of competitive advantage over new entrants by creating strong barriers to entry through economies of scale, strong branding, large existing customer bases and established supplier relationships.
While these rising barriers to entry may limit the threat of competition from new entrants, there is likely to be intense pressure among current online intermediaries to reach sufficient scale to remain preferred distributor among suppliers and maintain their relevance with consumers.
With a lack of strong differentiation in the consumer's mind between the online agencies, they will be increasingly looking to offer value-added services to generate and maintain their existing subscriber base. Some of the initiatives being adopted to compete in today's ever-increasing competitive environment.
Hence, there is little room for complacency or poor service levels among existing online travel intermediaries as switching costs are low and market share trends tend to quickly follow shifts in customer preferences with customer satisfaction and trust through e-service quality management
The final goal of this study begins with a framework that preparing throughout the observing of Internet services on the e-Commerce, and relation marketing, service quality assurance, and traveler's behavior to choose the right online travel agency. And, specifying the relationship between reliability when the customer has intention to purchasing with service quality, and case study model with hypothesis applied.
Carrying out the study, a survey was conducted as an experimental tool, and students of Tourism English/Japanese Department of K University located in Gwangju and junior Tourism Leisure Department of H University in ChunBook from November 16th to 18thin 2004 for 3 days.
In order to perform the survey for 20 minutes of the web sites, there was enough explanation of H tour, M tour, and N tour was given for 50 minutes, which were chosen as e-service quality estimating businesses along with the established conditions, and it would have been programmed before the survey started.
For further analysis, the surveyed data SPSS WIN 10.0 Statistical Package was used and after a data coding process, frequency analysis and exploratory factor analysis. And then, confirmatory factor analysis and covariance structure analysis using LISREL 8.52 Statistical Package Program were applied.
Analyzing the factors of online travel agency service with expected quality, which turned out to exploratory factor analysis, tangibles, assurance, reactivity, empathy, security, easy to navigate, and for the confirmatory factor analysis, reliability and validity was applied.
To verify the analysis result, the suitability approval of study model was carried out using 2nd level analysis method among covariance structure analysis using LISREL 8.52.
Posed particular hypothesis are as following
1) Former constructing factors of e-service quality will be applied to the constructing factors of online travel agency e-service quality was supported.
2) e-Service quality is going to influence customer satisfaction was also supported.
3) Online travel agency e-service quality will affect reliability.
4) Online travel agency e-service quality will positively influence customer satisfaction and purchase intentions were supported.
5) e-Service quality will positively influence level of reliability and purchase intention was weakly supported.
In order to perform a case model analysis and to finalize verify the conclusion, the classifying the level of customer satisfaction. In fact, the online travel agency provides e-Service without experiencing the customer interaction opposed to the offline travel agency, the marketing and sales strategies, which considers a properties of e-Service, are required as below;
First, customer navigational web site, which the customers do not have to make special efforts to choose right one.
Second, the website must be applied a framework and unique design, the customers make their expectations from the exterior design of the site and the feeling from the HTML pages, thus the design aspect is required which will help the customer and the navigational flow can seize the minds.
Third, the customer behavior and experiences, the commercial transaction over the Internet considers a remote approach. It may be considered non-humane, but it is important to provide an e-service to have intimacy since e-business is impulsive also business between customers.
Fourth, a complete service from top to bottom must be supported. To achieve true satisfaction from the customers, an approaching point to provide e-service must be managed since the customers do not consider the business over until the service is delivered to the customers.
Fifth, humane approach is recommended. e-Service makes approach in a cyber world, it might be an empty approach without humane touch. The e-service must give a unique feeling to the customer by making a balanced humane approach.
Six, the tolerance. By solving the problems of the customers when they are experiencing navigational difficulty and e-Service should delivers the benefit to the customers without the failure.
Seven, a personal information leak out and its security assurance. Since the personal information such as identification number or any other form of personal data would be stored the e-Service provider's data storage. By assuring the secured payment transaction using such HTTPS or user authentication and to notify the confirmation on each phases when to proceed the information filling up with customer's agreement, and the undo the agreement to cancel the terms and conditions. This would enable the quality of confirmation that travel packages can guarantee reliability.
The last, a strategy must be made to maintain customers, and maintaining customers is only possibly through endless thinking and a properly constructed e-service plan.