IMPACT OF INFORMATION TECHNOLOGY ON THE TRAVEL AGENCY BUSINESS: A CASE STUDY OF TRAVEL AGENCIES IN BANGKOK

1ARAYA KETKAEW, 2SUPAKSIRI PRAKANCHAROEN, 3EAKAPOTCH DHANASIRI, 4ORAWAN SOOKMA, 5NETDAO YOOYONG, 6NARUMON PROMALOK

1,2,3,4,5,6 SuanSunandhaRajabhat University NakhonPathom, Thailand, Tourism Management Department International College E-mail: [email protected], [email protected], [email protected], [email protected], [email protected], [email protected]

Abstract - The research studies the impact of information technology on the travel agency business in case of travel agency in Bangkok. The objective are1). To study impacts of Information Technology on the Travel Agency Business in Bangkok, and 2). To study tourist’s opinions about travel planning by online without travel agent. This research used only quantitative method by conducting questionnaires to sample 2 target groups which are traditional travel agency and Thai and International tourists in Khaosan Road, Bangkok, Thailand. The finding shows there are equality of result between negative and positive impact to traditional travel agency.Next, the result about travel planning by online without travel agent also shows tourist prefer to use online booking more than traditional travel agency because of it is very time saving and convenience. Therefore,the research was conducted in order to be guideline and main issue to travel agency should be consider more and improve their operation following changed of globalization in the future to meet tourist’s need and motivation to drive economy in Thailand for both domestic and international tourists.

Keywords - Information Technology, E-Commerce, Disintermediation, Travel Agent

I. INTRODUCTION or wholesaler which is travel agencies (Traditional travel agencies) in order to sell product and service Information technology is a key role in development from business suppliers to customers directly. For to service and tourism industry. It is used effectively example, online booking by airlines without to be material for both service provider and client contacting travel agent (Beal, V.2018). long-haul such as hotel, airline, and restaurant business. There traveler purchased more than short-haul traveler, both is a use of information technology on website or short haul traveler think online travel agencies more mobile application. However, there are negative flexible and can offer more choice than travel agent impacts of technology to travel agent. Many travel and their perception in online is much positive. agent companies have to face main problem that is However, in conclusion, the perception of customers can buy ticket or service without disintermediation in Hong Kong. Results still not intermediary which leads to employee lay-off clear cut which channel traveler prefer to use. problem. The research finding helps give the Although there is not clear about disintermediation, development guideline for travel agent in Bangkok to travel agent should prepare and aware about fasting- meet tourist’s need and better service quality. changing distribution environment of internet in the future (Law, R., Lueng, K and Wong, K. 2004).larger II. LITERATURE REVIEW agencies stop tobelieve that the effect of IT on travel agencies more thansmaller agencies. Although, there This research dealt with concept of information are some past studied shows that E-commerce would technology, e-commerce, disintermediation, travel be devastating for traditional travel agents,(Elhaj, motivation, travel agent. Information Technology M.R., Barakeh, M.Z., 2015).About general about defined as “The study or use of systems (especially travelling”. The most reason that got is exploring the computers and telecommunications) for storing, new place and monuments. Next, it is travel to the retrieving, and sending information.” – From Oxford sun. Moreover people buy their trips through on dictionary (Khan, J, 1997).Travel Agencies is an online and traditional agencies, the result of this part intermediate between consumers and producers such are 71.2 percentage that buy their trip at online, 16.9 as airlines, rental car firms and hotels etc. Their percentage buy their trip at traditional travel agencies, essential role is to sell tickets to consumers and give and other(Engvall, M., Fritz, J., Kindh, expert advice. Travel agencies are mostly financed by S.,2012).From sample 716 respondents in Australia commission received from the producers (Lewis, I., of travelling international both internet user and non- &Talalayevsky, A.1997).E-commerce is economic user. From the result, there are 70 percentage that activities involving the sale and purchase of tangible booking from internet, while 30 percentage did not. goods or intangible service over the internet (Elhaj, Therefore, the largest segment is online booking M.R., Barakeh, M.Z., 2015).Disintermediation in (Mayr, T., &Zins, A.H., 2009).E– Travelling quit tourism refer to removing or eliminate intermediation affect to the travel agent because ofthem lose

Proceedings of 128th The IRES International Conference, Beijing, China, 15th-16th July, 2018 60 Impact of Information Technology on the Travel Agency Business: A Case Study of Travel Agencies in Bangkok customer and gain less of profit. So they need to Tourist’s opinions about travel planning online improve their marketing such as promotion, unique without travel agent found that the most of result are selling points, targeting and positioning, qualification respectively to this following; 4.6 of“online booking of product and service, and etc. Moreover, from are more convenientand flexible than traditional paragraph in this study show the improvement and travel agencies”, 4.47 of “In Bangkok, I prefer more useful of web-based reservation until finally it planning travel online more than travel agencies”, lead the traditional travel agencies (Almunawar, 4.45 of “It is very time-saving when I booking online M.N., Anshari, M., and Susanto, H, (2012). and Internet Technology, allows customers to perform most travel searching and purchasing III. METHODOLOGY functions conveniently”.

The research is conducted under quantitative method. DISCUSSION Questionnaire is research tool to get data from respondent:twenty travel agencies, fifty international This research study regarding to Impact of tourists, and fifty Thai tourists in Information Technology on the Travel Agency Bangkok.Researcher collected data from 28 – 29 Business: A Case Study of Travel Agencies in April 2018 at Khaosan Road, Bangkok, Thailand. Bangkok following first objective, the result found that there are equality of positive and negative impact IV. RESEARCH FINDINGS to traditional travel agencies Thus, it was accorded with the research of Rob Law, Kenith Leung and Part1: Impacts of Information Technology on the James Wong which study about “The impact of the Travel Agency Business in Bangkok. Internet on Travel Agencies” their research found that Impacts of Information Technology on Travel it is still not clear cut which channel tourist prefer to Agency Business in Bangkok found that the total of use therefore it cannot be determined whether the positive impact and negative are 4.3 and 4.1 travel agent is affected by this. However, even there respectively. is not clear about disintermediation, travel agent should prepare and be aware of fasting-changing Dividing each item of positive and negative impact, distribution environment of Internet in the future. we found that positive impact, the highest result are Same as our research, we cannot conclude result that respective to this following; 5.9 of using information Information Technology have positive or negative technology increases more in travel agencies’ impact to travel agent but following to second distribution channel, 4.5 of Information Technology objective regarding to study tourist’s opinions about increases public relation of travel agency as well, and travel planning by online without travel agent. The 4.4 of Information Technology make easier result shows that tourist prefer to use online booking accessibility to information sources and availability more than travel agent due to a time-saving and of travel agency’s information o. Last, we found that convenience. Therefore, traditional travel agent negative impact had highest result respectively to this should be aware and preparing for changing in the following; 4.5 of online bookingaffected traditional future because of Information Technology grows up travel agencies or disintermediation, 4.4of online rapidly. booking and self- made device decreases sales volume, profit, or commission to travel agencies and Next, this research following research second 4.3 of Information technology cannot work without objective, the result found that tourist prefersusing internet framework,always updating information, online booking more than travel agent which is data, and material following globalization, and online accorded with the research of Maria Engwell, booking and self – made device affected your Johaness Fritz, and Sofia Kindh. They studied about business. “Offline vs. Online: Who buys where? A customer segmentation study of travel agencies”. Their result Tourist’s opinions about travel planning online found that 71.2 percentage that tourist buy their trip at without travel agent’s assistance. online, 16.9 percentage buy their trip at traditional The finding shows regarding to tourist’s opinions travel agencies, and other. So it can conclude that about travel planning by online without assistance tourist use online more than traditional travel agent. from travel agent found that results are respectively to this following; 4.6 of“online booking is more RECOMMENDATION convenientand flexible than traditional travel agencies”, 4.47 of “In Bangkok, I prefer planning From this research, “Impact of Information travel by online more than tradition travel agencies”, Technology on the Travel Agency Business: A Case 4.45 of “It is very time-saving when I booking online Study of Travel Agencies in Bangkok”, Information and Internet Technology,it allows most travelers Technology will cause positive or negative impact to searching and purchasing a trip conveniently”. traditional travel agent which depends on traditional travel agent that they will adapt or not? Information

Proceedings of 128th The IRES International Conference, Beijing, China, 15th-16th July, 2018 61 Impact of Information Technology on the Travel Agency Business: A Case Study of Travel Agencies in Bangkok Technology can be applied usefully in all aspects. [4] Elhaj, M.R., Barakeh, M.Z., (2015) “The Impact of E- Traditional travel agency can develop and improve commerce on Travel Agencies Profitability in Report of Size: Evidence from the U.S”, Advance in Economic and Business their company to this following; 3(10):436-446, 2015. DOI: 10.13189/aeb.2015.031003 1. Apply Information Technology to their companies [5] Engvall, M., Fritz, J., Kindh, S., (2012) “Offline vs. Online: such as mobile application or online booking engine. Who buys where? A customer segmentation study of travel 2. Always launch sale package and discount tour to agencies”, Bachelor thesis within Business Administration, Jonkoping International Business School,Jonkoping customer. Keep service of loyalty customer and give University. them special deal. [6] Impacts of internet and ICT on travel agent in digital era. (Online). ACKNOWLEDGEMENTS Available:https://impactsofinternetandicton++travelagentandt ouristguideindigitalera.wordpress.com/thankyou/ [3/March/2018] The authors would like to thank you to [7] Khan, J, “Information Technology and Example”. SuanSunandhaRajabhat University for financial (Online).Available: http://www.byte-notes.com/information- support.This research can be finished by the support technology-definition-and-examples [1/4/2540] [8] Law, R., Lueng, K and Wong, K.(2004) “The impact of of Associate Prof. Dr. LuedechGirdwichai.Also the internet on travel agencies”, International Journal of Travel & researchers would like to thank you Asst. Prof. Tourism Marketing Contemporary Hospitality Management, Dr.KrongthongKhairiree Dean of International Vol.16 No.2 pp. 100-107. Doi 10.1108/09596110410519982 Collage SuanSunandhaRajabhat University for an [9] Lewis, I., &Talalayevsky, A. (1997). Travel agents: Threatened intermediaries?. Transportation Journal, 36(3), advisor for this research. 26-30. [10] Mayr, T.,&Zins, A.H., (2009) “Acceptance of Online vs. REFERENCES Traditional Travel Agencies”, Anatolia, 20:1, 164-177, DOI: 10.1080/13032917.2009.10518902 [1] Almunawar, M.N., Anshari, M., and Susanto, H, (2012), [11] Oxford Dictionaries, “Definitions of Information “Crafting strategies for sustainability: How travel agents Technology”.(Online). should react in facing a disintermediation”, Operational Available:https://en.oxforddictionaries.com/definition/inform Research. Doi 10.1007/s12351-012-0129-7 ation_technology.[1/4/2561] [2] Baghdadi, I. (2013) “Online Booking: An opportunity or a [12] Vaish,P.(2017) “Difference between Disintermediation, Re- threat to retail travel agents?”,e-Review of Tourism Research intermediation and Counter mediation”.(Online). (eRTR), Vol. 10, No. 5/6, 2013. Available:http://adataanalyst.com/e-business/difference- [3] Beal, V. “Disintermediation”. (Online). disintermediation-re-intermediation-counter-mediation/ Available:https://www.webopedia.com/TERM/D/disintermed [1/4/2017] iation.html

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