The future for direct retailing of travel and tourism products: the influence of information technology

Abstract

The steady improvement in the quantity of information which can be delivered to a remote computer terminal and in the sophistication with which it can be manipulated, together with the continued drop in cost of information technology, may have dramatic effects on the way business is conducted in the travel and tourism industries (including hospitality). Today, direct purchase of travel by electronic means is a practical possibility. The research reported here explores the prospects for direct retailing by electronic means, and the implications for the industry of this. It includes the results of a survey of senior people in the UK travel and tourism industry and its suppliers, carried out in 1995. The paper concludes that the most rapid changes will be in the business travel market, followed by the market for single components of travel (e.g. an airfare or a hotel booking). Changes in other markets will be slower. These changes represent both threats and opportunities for the industry. The number of high‐street travel agents can be expected to fall, but there will remain an important role for those who can provide a high‐quality service to business and leisure consumers. © 1998 John Wiley & Sons, Ltd.

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