OnlineTravel Case Study Digital Economy 2014
Cases Study Strategy in the digital Economy
Case study Digital Economy
Buying travel on-line: choosing a strategy for the internet age
Internet technology is revolutionising the $100 billion global market for travel booking. This case explores the changes and the uncertainty. It raises the question of which strategic route to choose when developing a strategy, especially for smaller travel companies.
Travel agencies and package tours
For much of the past 50 years, many travellers have used independent travel agencies to book their tickets and accommodation for national and international travel. Such agencies have the relevant networks and contacts with the hotels, airlines, rail operators, car hire agencies and other companies engaged in providing travel services. They are knowledgeable in the complicated arrangements required and can take the pain out of booking a two-week holiday or a week-long business trip. Travel agents are located in town shopping centres or at the end of a telephone. More recently, they are available on-line through the internet.
In North America, travel agencies are largely independent of the companies offering particular aspects of the travel itinerary - air tickets, hotels, etc. In Asia, Africa and the
Middle East, travel agencies are also largely independent.
However, travel agencies in Europe are often connected with a particular travel organization offering the complete holiday package Whether you are travelling to the Taj Mahal in India, Las Vegas Strip in USA (pictured) or the Pudong area of Shanghai, China
(pictured), internet on-line booking opens up the possibilities.
covering flights, transfers, hotels and other activities - this approach is often called the ‘package tour’. The package tour is particularly popular in some European countries like the UK and Germany. It is also important in China and Japan. Major
European travel companies - like TUI, Thomas Cook, My
Travel and Kuoni - were built on such business.
Even today,
Case study Digital Economy
Buying travel on-line: choosing a strategy for the internet age
Internet technology is revolutionising the $100 billion global market for travel booking. This case explores the changes and the uncertainty. It raises the question of which strategic route to choose when developing a strategy, especially for smaller travel companies.
Travel agencies and package tours
For much of the past 50 years, many travellers have used independent travel agencies to book their tickets and accommodation for national and international travel. Such agencies have the relevant networks and contacts with the hotels, airlines, rail operators, car hire agencies and other companies engaged in providing travel services. They are knowledgeable in the complicated arrangements required and can take the pain out of booking a two-week holiday or a week-long business trip. Travel agents are located in town shopping centres or at the end of a telephone. More recently, they are available on-line through the internet.
In North America, travel agencies are largely independent of the companies offering particular aspects of the travel itinerary - air tickets, hotels, etc. In Asia, Africa and the
Middle East, travel agencies are also largely independent.
However, travel agencies in Europe are often connected with a particular travel organization offering the complete holiday package Whether you are travelling to the Taj Mahal in India, Las Vegas Strip in USA (pictured) or the Pudong area of Shanghai, China
(pictured), internet on-line booking opens up the possibilities.
covering flights, transfers, hotels and other activities - this approach is often called the ‘package tour’. The package tour is particularly popular in some European countries like the UK and Germany. It is also important in China and Japan. Major
European travel companies - like TUI, Thomas Cook, My
Travel and Kuoni - were built on such business.
Even today,