Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals Anton Bogdanovych, University of Technology Sydney e-Markets Research Group

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 2 Outline MotivationMotivation Research MethodologyResearch Methodology HypothesesHypotheses Travel Agent prosTravel Agent pros Online booking prosOnline booking pros 3D Electronic Institutions3D Electronic Institutions ConclusionConclusion

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 3 Characteristics of Tourism A product cannot be observed or manipulated through direct experience prior to purchaseA product cannot be observed or manipulated through direct experience prior to purchase Customers have to rely on indirect or virtual experienceCustomers have to rely on indirect or virtual experience Appealing product presentation (visualization of travel destinations) is a mustAppealing product presentation (visualization of travel destinations) is a must Motivation

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 4 Product presentation possibilities Traditional travel agents:Traditional travel agents: -Catalogues with photos, tips, maps etc. Online Booking:Online Booking: -Web sites with catalogue-like structure -Interactive 3D -On-demand Videos Motivation

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 5 Research Goals Find the best from both sides (travel agents and online booking)Find the best from both sides (travel agents and online booking) Facilitate customers’ decision making processFacilitate customers’ decision making process Automate the process of development of tourism portalsAutomate the process of development of tourism portals Save human resourcesSave human resources Motivation

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 6 Research Methodology Follows qualitative research inquiryFollows qualitative research inquiry Stage 1: Hypothesis formulationStage 1: Hypothesis formulation -Literature review -Semi-structured interviews (10 PhD Students) Stage 2: Hypothesis validationStage 2: Hypothesis validation -Travel agent interviews -Questionnaire (132 participants) Research Methodology

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 7 The Sample People who possess ample expertise in online bookingPeople who possess ample expertise in online booking Research Methodology

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 8 Hypotheses H0: The majority of people prefer booking their international trips from a travel agent. Domestic trips are usually booked online.H0: The majority of people prefer booking their international trips from a travel agent. Domestic trips are usually booked online. Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 9 Hypotheses Hypotheses H1: Human expertise is an important convenience factor that is missing in online booking.H1: Human expertise is an important convenience factor that is missing in online booking.

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 10 Hypotheses Hypotheses H1: Human expertise is an important convenience factor that is missing in online booking.H1: Human expertise is an important convenience factor that is missing in online booking.

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 11 Hypotheses H2: Social Interaction with a travel agent is a key to a good customer experienceH2: Social Interaction with a travel agent is a key to a good customer experience Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 12 Hypotheses H3: Travel agents satisfy impulse buyers betterH3: Travel agents satisfy impulse buyers better Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 13 Hypotheses H4: Collaborative booking experience is important.H4: Collaborative booking experience is important. Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 14 Hypotheses H5: Security and trust towards humans are higherH5: Security and trust towards humans are higher Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 15 Hypotheses H5: Security and trust towards humans are higherH5: Security and trust towards humans are higher Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 16 Hypotheses H6: Loyalty is rewarded and appreciatedH6: Loyalty is rewarded and appreciated Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 17 Hypotheses H7: Detailed information about a trip is importantH7: Detailed information about a trip is important Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 18 Hypotheses H8: The way the package deals are composed now is not satisfactory and can be done better on the WebH8: The way the package deals are composed now is not satisfactory and can be done better on the Web Hypotheses

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 19 Travel agent pros Expertise of the travel agentsExpertise of the travel agents Impulse decisionsImpulse decisions Social interactionsSocial interactions Loyalty is commonLoyalty is common Travellers value that their preferences are rememberedTravellers value that their preferences are remembered Travel agent pros

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 20 Online booking pros ConvenienceConvenience Comfort of the familiar home environmentComfort of the familiar home environment Fast responsesFast responses MultitaskingMultitasking Online booking pros

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 21 3D Electronic Institutions No methodological supportNo methodological support 3D Electronic Institutions

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 22 Specification of 3D Electronic Institutions Common Ontology and language Agent Roles Multi-agent Protocols Network of protocols Norms 3D Electronic Institutions

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 23 Visualization of 3D Electronic Institutions 3D Electronic Institutions

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 24 Runtime Architecture 3D Electronic Institutions

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 25 Example 3D Electronic Institutions

ENTER 2006, Lausanne Anton Bogdanovych, Helmut Berger, Simeon Simoff, Carles Sierra Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals 26 Conclusion Impulse travel, collaborative booking and better packaging mechanisms are not present in nowadays online travel portalsImpulse travel, collaborative booking and better packaging mechanisms are not present in nowadays online travel portals Expertise of the travel agents should be used onlineExpertise of the travel agents should be used online Presentation of travel destinations can be done betterPresentation of travel destinations can be done better 3D Electronic Institutions have the potential to address the drawbacks of online booking3D Electronic Institutions have the potential to address the drawbacks of online booking Conclusion