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Tour Operators & Travel Agents - Is there still a use for them in the modern age of the tourism industry?

Tour Operators & Travel Agents - Is there still a use for them in the modern age of the tourism industry?
Author: Ruchna Kaur Goray
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Abstract:
This paper discusses the arguments for and against the use of tour operators and travel agents in the modern age of the tourism industry. It goes into depth of why people still look to use tour operators and travel agents rather than using the more common form of booking a holiday nowadays; through the internet.

Discussion Paper:
With the advance in technology and the amount of holidays being booked online it is surprising to see that tour operators and travel agents are still being considered and used to book holidays. This particular debate paper ties in with strand two: Becoming a tourist: how backgrounds shape preferences. It will look at how particular preferences are made in relation to using a tour operator or travel agent when booking a holiday.

Have you ever wondered why tour operators and travel agents still exist? Especially when we live in a world where technology runs the world and we can now book holidays online ourselves. Well there are a lot of factors behind why there is still a need for them such as some people may be computer illiterate especially the older generation.

Within the last two decades the internet has certainly grown making a lot of things possible. Buhalis & Schertler (1999) pointed out that in the hospitality industry organisations receive a growing percentage of their customers through the internet. One of the advantages of the internet is that holidays can now be booked online. This however has had an effect on the number of people who book through tour operators and travel agents. From this statement you'd think that there wouldn't be much of a need for them, however there is according to a recent survey carried out by Goray (2012) and the other points which are explored further in depth in this debate paper.

There is an endless list of things that have been made possible to do on the internet from booking holidays online to picking which seats you want in an airplane etc, but why do some people still then use tour operators and travel agents.

One of Werthner & Klein (1999) main arguments against the internet is that this type of service, it is not reliable, i.e., service levels cannot be guaranteed

Theobald & Dunsmore (2000) make an important point about the internet growing and that potential customers and clients can do things at their own pace, so they don't feel pressured by any tour operators or travel agents.

With the advance in technology and the internet allowing people to book get aways and holidays online which is certainly easier for them but than why do people still go to tour operators and travel agents?

It has found that although the internet has made it possible for holidays to be booked online, some people still prefer to use a tour operator or travel agent instead. This is down to a number of reasons, the advantages for customer to book holidays online being convenience, the cost advantage, and the fact it avoids any extra costs such as travel agent fees and charges. The most common disadvantages when booking online for customer are the inability to find specific websites or certain things the customer requires for their holiday abroad, information overload, the cost will be more due to travel agent fees and charges, security in regards to payments and confidentiality and the lack of human interface which some customers require in order to feel sure and at ease when booking their holiday. One of the main issues for customers who don't use the internet is the safety factor.

Goray (2012) identified the fact that when booking a holiday to more than one destination, it can get rather confusing and too much to do online so they preferred to have it all done by someone else. If booking a holiday online and consists of more than one holiday destination it can get quite confusing especially for people who are booking over the internet for the first time. This has a major effect on the decision process of booking the holiday over the World Wide Web through the internet.

Although the internet is undoubtedly the most common form of communication, this will all be new to the older generation. With Information technology being taught in school nowadays it's common to assume that the younger generation know how to use computers and new technology. The younger generation are the ones most likely to be comfortable with booking holidays online. With the older generation it is something they are going to have to learn from scratch and adapt to. So when it comes to booking a holiday the younger generation will probably book it over the internet whereas the older generation who may not be so used to the internet will go directly to a tour operator of through a travel agent instead. This identifies a need for tour operators and travel agents in the modern age of the tourism industry for now.

Lang, T. (2000). The effect of the internet on travel consumer purchasing behaviour and implications for travel agencies. Journal of Vacation Marketing. 6 (4), p368-385.

Pender, L (2001). Travel Trade and Transport. London: Continuum.

Poon, A (1998). Tourism, Technology and Competitive Strategies. Wallingford: CABI Publishing

Tour Operators & Travel Agents - Is there still a use for them in the modern age of the tourism industry?
Author: Robert Joseph Atkinson
This paper provides a useful explanation as to how tour operators and travel agents continue to survive in the dawn of the internet. Not only this, but it also provides a good overview of who uses what method of booking and the benefits of each method, so that a fuller picture can be provided as to who travel agents can potentially market to. As the author has identified whilst for some consumers, the internet maybe a confusing place and they would much rather go to a travel agents for help when booking their holiday. As well as this, the need for security is of critical importance and as there is no interface with the internet, the need to talk to someone face to face with transactions for the holiday, so as to build up a trust with them is highly important. For some elderly people, the whole process of booking a holiday becomes part of their daily routine, in which they enjoy the interaction they have with the sales people in the travel agent, which they wouldn't otherwise receive on the internet.

However, with the advent of the internet, there was no real discussion on how it has affected the industry, with the reduction in the numbers of travel agents or the impacts that it has had on the businesses that participate in the industry as a whole. This would be necessary, so that a fuller picture could be produced, so as to understand the current trends in the industry. Necessary commentaries, such as the reasons why tour operators and travel agents are moving online to set up their businesses are required so as to provide future research into whether it is a viable option to operate on the high street. When looking at my local high street over the last few years, there has been a significant decrease in the number of travel agents there were and this included the major tour operators, such as Thomas Cook and Thomson. This matter throws into question the power of the internet and how the future of these high street operators are going to survive, as the growing elderly population become more and more computer literate. Not only this, but through the internet it cuts out the searching for the cheapest deals, with websites such as Travel Supermarket and therefore enabling the organising of the holiday to be cheaper and more convenient for them.

Overall, the points made in this are very relevant to the situation as it stands at this moment in time. However, there needs to be a question mark raised upon how long these businesses will last with the rents being put up and staffing costs, which they wouldn't have on the internet and whether it is more beneficial to just move onto the internet.