The Role of Online Travel Agents in the Experience Economy Anton Bogdanovych anton@it.uts.edu.au University of Technology Sydney

Outline Experience Economy Motivation Tourism Why Online Travel Agents? Motivation 3D Virtual Worlds 3D Electronic Institutions The World Trotter Travel Agency Conclusion ENTER 2007 Research Track

Experience Economy In the emerging experience economy, the experiential component of a product or service is increasingly the basis of profit. “Just as people have cut back on goods to spend more money on services, now they also scrutinize the time and money they spend on services to make way for the more memorable—and more highly valued—experiences” (Pine and Gilmore, 1999, p.12). ENTER 2007 Research Track

Features of the Travel Product Tourism product is intangible in nature. (Jackson, 1997). For this reason, tourists need to get as much correct information as they can feel confident that their desires and expectations will be fulfilled. It is remote in nature with the person selling a product possibly never having seen the destination sold and yet being the prime source of advice (Jackson, 1997). This has a consequence that the collective intelligence is required to provide customers with correct information about the trip. ENTER 2007 Research Track

Features of the Travel Product The description of a product is always subjective (somebody’s perspective) and background related (Gee et. al, 1997). This suggests that the more real is the travel product presentation the less uncertain is the customer about its characteristics. The product is delivered by many different firms, which are typically different in terms of their functions and capabilities (Palmer & Bejou, 1995). For the customer this means that the more components are present in the desired package, the harder it is to order the package without help from travel intermediaries. ENTER 2007 Research Track

Features of the Travel Product Few other industries link so many diverse and different kinds of products and services as the tourism industry (Edgell 1990, p.7). The list of all travel-oriented “commodities” is too large, so a catalogue is not feasible to produce (Rugg, 1973). The travellers of today decide to buy or not to buy depending on the quality of experience they receive during the trip selection (Yeoman et. al. 2005). ENTER 2007 Research Track

Motivations of travelers sense of power (visitors demanding service and attention) search for romance desire for cultural exchange need for leisure/escape desire of social contact following social trends change from routine to new experiences, satisfying curiosity and personal values (i.e. trips to places of religious significance) Involvement with the booking experience ENTER 2007 Research Track

Destination characteristics scenic beauty of a place pleasant attributes of the local people destination visitor image vs actual self-image and ideal self-image suitable accommodations rest relaxation airfare ENTER 2007 Research Track

Consequences Summary Engaging experience is important Need as much Information as possible Objective representation of information Collective Intelligence is required Reduction of the package complexity Human expertise Social factors Self image recognition – user preferences ENTER 2007 Research Track

Travel Agents pros Expertise of the travel agents Impulse decisions Group booking Social interactions Loyalty Travellers value that their preferences are remembered ENTER 2007 Research Track

Online booking pros Convenience Comfort of the familiar home environment Fast responses Multitasking ENTER 2007 Research Track

Motivation 3D Virtual Worlds Virtual worlds are one of a few online businesses that make money on the Web Norrath, The online world created by Sony Has more residents than Miami Has bigger GNP per capita than Bulgaria Edward Castronova, USA, 2003 ENTER 2007 Research Track

3D Electronic Institutions D Virtual Worlds • Social & entertaining Fully observable High User Involvement Impulse travelers Not structured interactions ENTER 2007 Research Track

Methodology ENTER 2007 Research Track

Vision ENTER 2007 Research Track

Runtime Architecture ENTER 2007 Research Track

“World Trotter” Travel Agency ENTER 2007 Research Track

“World Trotter” Travel Agency Booking and destination search ENTER 2007 Research Track

“World Trotter” Travel Agency Hotel Visualization Service ENTER 2007 Research Track

“World Trotter” Travel Agency Destination Visualization Service ENTER 2007 Research Track

“World Trotter” Travel Agency Destination Visualization Service ENTER 2007 Research Track

“World Trotter” Travel Agency Shop Service ENTER 2007 Research Track

Conclusion Online travel agents are the most promising travel provider for the experience economy We propose 3D Electronic Institutions technology to be utilized for the implementation of online travel agents The World Trotter Travel Agency demonstrates our vision of how this technology can be employed ENTER 2007 Research Track

Conclusion The World Trotter Travel Agency provides immersive 3D visualization allows interaction with tourism products facilitates implicit training of assistants supports group booking provides the grounds for a lively tourism community fosters social interaction and the exchange of personal experiences ENTER 2007 Research Track