Travel Sector Analysis
1. INTRODUCTION
Hundreds of millions of people make billions of trips each year, making travel one of the world's largest industries. This industry includes a broad range of businesses such as airlines, hotels, cruise lines, rail lines, car rentals but also travel agencies, tour operators and other travel suppliers that are part of a chain supply of products and services.
Initially, travel supply chain was linear, involving travel providers who supplied Tour Operators who turned to Travel Agents who sold to travelers. With the emergence of new technologies, all the players of the supply chain now have direct access to travelers.
With direct access to thousands of travel suppliers, the travelers can now compare different sources, and check prices and availability for their trip at anytime without the help of a travel agent. While they are getting used to booking basic travel (air+hotel+car) online, travel web sites are now offering more and more complex products such as cruises, vacation packages, travel insurances, passes, excursions and other local activities.
In this paper, online travel sector is analyzed by considering business models that is used for this sector in the online environment, evaluating some major businesses in the sector and also by discussing the past, current and future state of the online travel industry. Additionally, a new business idea is created for the sector and it is described in detail with its business scope, target market, customer segment, business model, short and long term objectives, market analysis and marketing strategies.
2. TRAVEL SECTOR ANALYSIS
a) BUSINESS MODELS IN TRAVEL SECTOR
The Brokerage Model, which brings buyers and sellers together and facilitate transactions. Usually a broker charges a fee or commission for each transaction it enables. Brokerage models include:
• Marketplace Exchange: offers a full range of services covering the transaction process, from market assessment to negotiation and
Hundreds of millions of people make billions of trips each year, making travel one of the world's largest industries. This industry includes a broad range of businesses such as airlines, hotels, cruise lines, rail lines, car rentals but also travel agencies, tour operators and other travel suppliers that are part of a chain supply of products and services.
Initially, travel supply chain was linear, involving travel providers who supplied Tour Operators who turned to Travel Agents who sold to travelers. With the emergence of new technologies, all the players of the supply chain now have direct access to travelers.
With direct access to thousands of travel suppliers, the travelers can now compare different sources, and check prices and availability for their trip at anytime without the help of a travel agent. While they are getting used to booking basic travel (air+hotel+car) online, travel web sites are now offering more and more complex products such as cruises, vacation packages, travel insurances, passes, excursions and other local activities.
In this paper, online travel sector is analyzed by considering business models that is used for this sector in the online environment, evaluating some major businesses in the sector and also by discussing the past, current and future state of the online travel industry. Additionally, a new business idea is created for the sector and it is described in detail with its business scope, target market, customer segment, business model, short and long term objectives, market analysis and marketing strategies.
2. TRAVEL SECTOR ANALYSIS
a) BUSINESS MODELS IN TRAVEL SECTOR
The Brokerage Model, which brings buyers and sellers together and facilitate transactions. Usually a broker charges a fee or commission for each transaction it enables. Brokerage models include:
• Marketplace Exchange: offers a full range of services covering the transaction process, from market assessment to negotiation and