In response to new trends in the behavior of tourists when choosing tourism products (packages) that are in fact determined by social and economic factors in the environment, travel agencies need to adapt their operations and business functions to new terms. Specialization seems possible response to new trends in consumer behavior. In order to study the significance of the hypothesis according to which socio-economic changes in tourism result in the need for the frequent and extremely narrow specialization of operations of travel agencies, for the purpose of this paper primary research was conducted in Croatia. Empirical research was conducted using a sample survey of 200 travel agencies in Croatia and the method of inferential statistics with multiple logistic regression models. Results of the survey on a sample of travel agencies show that managers recognize the importance of specialization for their operations, and socio-economic changes represent "an incentive to the business specialization. Managers of travel agencies undergoing the specialization process take into account specific tourist motives (adventures, new experiences, culture), as well as economic changes reflected in purchasing power. The study shows that socio-economic changes in tourism result in a need for frequent and very narrow business specialization of travel agencies.

The article studies the manner in which contents of services of tourist products at the destination are specialised, according to the needs and requirements of tourists. The first part highlights a theoretical review on the history of the tourism industry with emphasis on motives as a key factor, which is important in tourist decision-making when choosing the destination. In order to study the level of the specialisation of tourist offers in Dubrovnik particularly, in accordance with needs of tourists, the research was focused on: (1) tourist behaviour in terms of selection of key factors that meet tourist needs, important when making decisions about travelling to a destination; and (2) attitudes of the tourist consumers in accordance with the level of specialised contents of services used. Using the method of inferential statistics, the empirical research was conducted on a sample size of 327 tourists. Demographic characteristics and characteristics of the tourists' stay in Dubrovnik were taken into account, considering the assessment level of the specialisation and defining the main factors that influence the selection of a destination. Our findings speak in favour of the majority of services in Dubrovnik having specialised features and content, in accordance with the needs of tourists.

This paper highlights levels of influences of local events on the image of region of Konavle, as a microdestination near Dubrovnik. As a municipality Konavle has 32 settlements facing the agriculture and tourism (TZ Konavle. 2016). The aim is to research the influence of the development of local events in Konavle on the destination development in terms of dynamic and competitive market changes. From 2009 Association of Agritourism Konavle has been organizing a local event Scents of Christmas in Konavle. It carried out activities to promote and develop rural tourism in the southernmost region of Croatia (Agritourism Konavle, 2016). It operates through organized events, promotional tour on other rural destinations. For members it organizes workshops, including them in projects. Scientific attitudes of theoreticians in this area, clearly argue the interactivity of selective modalities of tourism and its positive effects on the destination. Based on that attitudes, it was conducted the empirical research by the survey method.The significance of the elements of local event on the recognition and an image of the destination, has been proven. While presenting heritage, an organized event impact on alleviation of the problem of seasonality of every tourist place on the Croatian coast. This event brings together the majority of visitors from micro-destination, Konavle, but also attracts visitors from Dubrovnik. Because of connection between two destinations, it is essential to explore the selected tourism forms, as well their role in the creation of innovative tourist products.

The concept of competitiveness influenced by many factors is analyzed in terms of terminology distinctions. This is the reason of numerous definitions of this term included in the first part of the paper, which varies according to the aspect of the analysis, analyzed marketing unit, tourism product, geographical unit, region, destination, or entities that offer an acceptable integrated product a package by specific indicators for comparison of elements of competitiveness. The first part of the article theoretically emphasizes the distinction in defining the concept of competitiveness from various aspects of the analyzed market subjects (different features and facilities provided), and from those aspects of their specific business relationship in the market. Special contribution to the study of competitiveness is contained in the second part of the paper that analyzes the existing situation of intermediation in the European tourism market. This research is based on using the data of descriptive statistics and the secondary research which gives insights into the business of travel agencies, using the data such as number of employees, annual personnel costs, and the average annual cost per person employed in travel agencies in some European countries. The changes in the environment, and the competition initiate a need for an analysis of the internal environment, travel agencies' tasks, and their organizational structure. Also, the results conducted research on a sample of 500 travel agencies in 20 European countries indicate the dominance of quality service, price, and value for money as key factors of demand for achieving the competitiveness. It indicates new trends focused on needs for more specific-integrated tourist products that ensure the quality of service, value for money, and for the time that tourists invest in their obtaining.

In the article four development indicators have been carefully selected and their impact on the level of acceptance of the Internet booking of travel and holiday accommodation in selected European countries has been observed. The statistical panel analysis approach was used to determine the individual and the common impact of the development indicators. The analysis has shown that an individual's wealth, the public expenditure on education, and the Internet penetration rate have a positive statistically significant impact on the level of acceptance of the Internet booking of travel and holiday accommodation whereas the share of individuals with low level Internet skills has a negative statistically significant impact. These results carry significant importance for economists, politicians and all other stakeholders responsible for tourism development in a country. The use of the unbalanced panel is the main limitation of the article. KEY WORDSinternet booking, development indicators, European countries, fixed effect panel model, random effect panel model