Today, there is an increasing desire to enjoy leisure activities to get away from busy work life and relieve stress due to more developed economic environment and more open political environment in China. With the development of tourism and Internet t...
Today, there is an increasing desire to enjoy leisure activities to get away from busy work life and relieve stress due to more developed economic environment and more open political environment in China. With the development of tourism and Internet technology, travel agencies are now expanding their online operations as well as offline business in order to increase their profits.
These travel agencies that conduct business activities through online platforms are collectively referred to as Online Travel Agency(OTA).
As such Internet-based travel industry has developed, there is an intense competition among Online Travel Agency(OTA) which seek to make great efforts to create and maintain competitive advantages. As Online Travel Agency(OTA) provides non-face-to-face services in contrast to offline travel agencies, the quality of service they provide to the customers and the quality management system become more important.
However, while the online consumption on traveling industry has been increasing, research on Online Travel Agency(OTA) is relatively insufficient. From this perspective, the study selected Chinese Online Travel Agency as the target and conduct a research on impacts of the quality of service provided by the Online Travel Agency(OTA) on users' trust, intention to reuse and recommendation intention in order to maximize user’s satisfaction. And the Online Travel Agency(OTA)'s components on service quality were distinguished by information, stability, convenience, reliability and interaction.
In this study, the contents of the research analysis is as follows. First, the impact of service quality components on customer’s trust was analyzed. Second, the study investigated the effect of customer’s trust on intention to reuse. Third, the effect of customer’s trust on recommendation intention was examined, as well. For empirical analysis, the questionnaire was designed including service quality components, customer’s trust, intention to reuse, recommendation intention, and general demographic survey questions.
To verify the hypotheses of the study, frequency analysis, factor analysis, reliability analysis, correlation analysis, and regression analysis were performed as the research methods using SPSS version 25, a statistical software. The results of the hypotheses testing are as followings.
Hypothesis 1: Information, stability, convenience and interaction among the quality of service components of Online Travel Agency(OTA) have significant impacts on customer’s trust.
Hypothesis 2: Customer’s trust on Online Travel Agency(OTA) has a significant effect on intention to reuse.
Hypothesis 3: It was investigated that customer’s trust has a significant effect on recommendation intention.
This study suggests the following implications based on the empirical analysis results. In order to obtain customer’s trust in Online Travel Agency(OTA), firstly, the reliability of information is an important factor for customers based on the research result of "Hypothesis 1-1: Information on Online Travel Agency(OTA) gives a significant effect on the customer's trust." In addition, it was analyzed that Online Travel Agency(OTA) should provide information that is accurate and updated with the latest information.
Second, when a user of an Online Travel Agency(OTA) experiences a problem while using a website service, it has to provide a solution to the problem so that the user can immediately solve the problem. It is necessary to build a system that can support problem resolution service at any time and promptly, which would maximize customer' s satisfaction. And a rapid response for the customer to solve their discomfort and dissatisfaction is suggested as a way to increase customer 's trust and satisfaction and prevent service failure.
Third, personal information should be managed safely in Online Travel Agency(OTA) to derive customer 's trust. Therefore, it is necessary to set a security program that can enhance the safety of customer’s information and strengthen the protection of personal information.
Fourth, it is advised to activate Online Travel Agency(OTA)’s bulletin board. The activation of the bulletin board should reflect the suggestions, opinions and complaints of the customers and maximize customer’s satisfaction through manager’s feedback. And it is possible by considering giving benefits such as mileage or VIP benefits for writing comments on the bulletin board.
Fifth, the contents and composition of website of Online Travel Agency(OTA) should be easy and clear to understand by the customers. The differentiation of the contents of the website and the convenience of the users maximize the customer’s satisfaction, intention to reuse and recommendation intention.
In conclusion, Online Travel Agency(OTA) should have high service quality on the website to obtain reliable customers. When customer's trust is high, the number of visiting for Online Travel Agency(OTA) becomes more frequent, and this will bring higher intention to reuse and recommend intention. Recently, intensity of price competition among online businesses makes it more difficult for Online Travel Agency(OTA) to generate profits through price competition. From this point of view, the service quality of Online Travel Agency(OTA) is becoming an important factor to achieve customer’s satisfaction.