Changes and challenges of traditional travel agencies in transition to the e-tourism world, case of Malaysian travel agencies

Abstract

Internet has profoundly transformed tourism industry and challenged the traditional value proposition of travel agencies. Traditional travel agencies are struggling to stay relevant through any possible way .They are also under the pressure by the travel providers who try to access the customers directly and bypass these traditional intermediaries (disintermediation theory) Therefore the traditional agencies need to re-intermediate themselves as soon as possible before getting disintermediated. This study investigates the impact of Information Communication Technology (ICT) and the internet in particular, to find the changes that have been affecting the traditional distribution channels and made the travel agencies vulnerable to the growth of internet .In Malaysia specially, the awareness of travel managers and the coping strategies taken by traditional travel agencies have not been studied vastly before. Thus this research has looked for the effects of internet on the conventional travel agencies by a qualitative method and has gathered information through interviews with the top travel managers involved in both the industry and the travel association .It has then analyzed the data by a thematic approach and has given some suggestions to minimize the risk of disintermediation and improve business performance through focusing on the niche market and specialization , trying a new distribution strategy, improving online marketing and implementing reputation management.