Travel Agency Industry

THE CHANGING WAYS OF THE upstart ZEALAND TRAVEL AGENCY Executive abbreviation This task relationship is designed to evaluate the close to(prenominal) important aspects of the recent turn industriousness in rising Zealand. The demotement of the meshwork over recent times has revolutionised the actuate industriousness, and is panicening to ca employment its demise. expire agencies commit been forced to conform to these advances, as the likes of air passages and hotels determine to eliminate the intermediary role which endure agencies strain themselves near.Studies suggest that in that location is yet get present in the industry for the operate of start comp binglents, as society, particularly older generations, feel more(prenominal) than than hold in booking large balance wheels of their mails in a face-to-face environment. The alive con player in the grocery store of choke agencies is actu e actually(prenominal)y high, with merely tilt comin g promptly from suppliers themselves. In particular, there be airlines who waste also branched off to acknowledge add-ons in their options. Customer loyalty is a large factor in the victory of a modern set off office staff, as human bodying relationships is prioritized to retain and build on client bases. The changing slipway of the natural zealand lead federal agency stumble agencies suffer been publicised in the media as world a dying profession, as consumers develop a do it yourself approach to organising trips. This constitution is designed to give a global overview of the industry for the modern last agency. The intimately important positive and negative aspects result be looked at so that it stooge be determined whether or not that this is an attractive food market in which to depict a business in raw Zealand. The impact of echnological advances, particularly with the lucre, will be discussed in depth. Also touched upon is the behaviours of clients during the recent technical revolution and whether or not get agencies should be concerned most trends and publicised issues. The importance of building guest relationships to establish loyalty from customers will be the final central topic of the penning. The increase signifi digestce of the meshing in immediatelys society has had a sullen effect on the behaviour of tourism consumers (Chakravarthi & Gopel, 2012).These progressions appear to be reducing the aim for the intermediary role upon which the snuff it agency business model is make (Castillo- Manzano & Lopez- Valpuesta, 2010), and has educe to be cognize as disintermediation (Chakravarthi & Gopel, 2012). The competition between agencies has alship canal been based around clients being r for each oneed directly and quickly, but the cyberspace is now beginning to satisfy this hold of consumers (Chakravarthi & Gopel, 2012). For example, both hotels and, more materially, airlines, start built their feature webs ites which en discipline them to connect with consumers directly, as opposed to finished an actor.This removes the additional be for commissions, and also allows them to easily integrate reward systems for customers into their programmes (Chakravarthi & Gopel, 2012). The influence of airlines will be discussed promote later in this piece. It was found that in the year of 2008, 80% of run short constituents from the united States storeyed a decline in annual r steadyues compargond with the previous year (Hayhurst, 2009). For this reason, the modern surviveling industry must adapt their approach in business to go for a business model more service- orientated, rather than the product- orientated approach they had traditionally (Richard & Zhang, 2012).For a travel performer, it appears that their mightiness to be active on their c arer roadway has a major influence towards their cogency to remain sustainable during difficult scotch periods (Hayhurst, 2009). 3 The chan ging shipway of the online-sprung(prenominal) zealand travel agency The tendency we all had last year was to pull in the wagons and conserve cash, but it turns out that for travel agents, moving forward aggressively helped them through a tough period. (Weissman, 2009. Cited in Hayhurst, 2009) It is compensate felt by some that these sorts of occupations could be facing extinction by as soon as 2017 beca economic consumption of technological advances (Eriksen, 2012).This threat is made even more in all likelihood as a generation who are more accustomed to the internet and engineering in general begin fashioning large purchases. Studies show that young citizenry (aged 15 to 30) are world-shatteringly more likely to order flights online, as they are more trusting of modern technologies than their predecessors (Pearce, empathise & Schoot, 2009). As consumers as a tout ensemble look towards the internet progressively more for comes convertible to those on offer from travel agents, much(prenominal)(prenominal) an occupation will break down obsolete (Eriksen, 2012).Contrary to these findings and theories made, Pearce et. al. (2009) obtained results suggesting there is still significant demand for the run of travel agents. Of a sample of 547 outward bound new-fashioned Zealand tourists, more than 50% used a travel agent to book their comport to the chosen destination. Of note for travel agencies from these statistics is the proportion of tourists development mail boatd holidays that used their services to book contrasting aspects of their holiday. An example of integrity of these percentages is the 82. % of people who bought software package holidays purchasing their trip through a travel agent or travel management community (Pearce et. al. 2009). With those booking their travel plans with a package of some form representing almost one in three of the sample travellers, it appears that there may be sufficient demand within the travel industry for travel agencies. Various studies carried out on consumers in the Asia- Pacific region suggest that the internet is used by consumers only as a search engine (Castillo- Manzano & Lopez- Valpuesta, 2010).Castillo- Manzanos & Lopez- Valpuestas (2010) piece goes on to assert that the security that booking major expenses such as flights and accommodation through a travel agent makes it more attractive than online booking. Another study found similar results which showed that cheaper and little important aspects of travel arrangements such as rental cars are more likely to be made online (Cheyne, Downes & Legg, 2006). supporting(a) this is the belief of Mike van Beezhuizen, 4 The changing ways of the refreshful zealand travel agency a travel agent working for Auckland Flight Centre.He felt his cable is relatively secure, as people delight in the face-to-face experience of customer service (Eriksen, 2012). The competition present between real competitors in the travel industry is truly high and therefore very competitive. Well- known travel agencies such as category of give-up the ghost and Expedia are already naturalized and each account for market shares over 10% within the online travel agency websites (Tnooz, 2012). In addition to these, there are also various littler businesses representing smaller percentages (Tnooz, 2012), adding to the cut throat nature of the industry.The technological progressions which are so prevalent in this industry permit also disfavour local travel agencies by introducing new competitors into what was already a highly competitive market. This occurred through airlines recognising an opportunity in the market place which the development of the internet has presented (Castillo- Manzano & Lopez- Valpuesta, 2010). Websites such as Air juvenile Zealand have placed great emphasis on extending websites to increase business opportunities and be able to serve customers from their own websites (Castillo- Manzano & Lopez- Va lpuesta, 2010, Medcalfe, 2005).By doing this, airlines were able to mitigate their costs, which then enabled them to lower their fares. To compete even more, airlines also began to offer complimentary services such as vehicle rentals with their flights (Castillo- Manzano & Lopez- Valpuesta, 2010), further increasing the similarities between the modern airline and travel agency. Customer loyalty plays a massive role in the make- up of demand in the travel industry. With the new customer- orientated approach to business, it is clear that customer satisfaction is almost becoming antecedence (Richard & Zhang, 2012).By satisfying customers, travel agencies hope to build relationships and protect their existing customer base. Cameron Wilson, says that the ability of a travel agent to build relationships with their clients was crucial in having a prospered career (When Cameron Wilson travels, 2012). As these relationships build, loyal customers tend to show decreased price sensitivity, with a switch to a rival supplier due to price becoming less likely (Richard & Zhang, 2012) . The importance of corporate effigy cannot also not be hard-pressed enough in this industry. Studies 5The changing ways of the new zealand travel agency showed that this can affect the value that they in their own mind feel they are receiving (Richard& Zhang, 2012). This report was prepared to present the most significant aspects of the environment for travel agency businesses. The internet has very much forced travel agencies to rethink their business structures, with successful ones adjusting to their market place. It was found t hat package holidays and clients in older age brackets were those who were most likely to request the use of a travel agents services.There are already a number of well- established travel agencies in this industry, with the likes of airlines also providing competition. Building customer relationships by satisfying their expectations has been allocated the utmos t importance for prospective agents, as maintaining a solid customer base is considered crucial. There are many a(prenominal) aspects of the travel industry within newly Zealand which must be carefully analysed and considered in advance entering the industry as on-going circumstances have made this very complex. Word Count 1541 Please determine the assignment instructions.You must take a joint count of your assignment and move into it in the box above. Note that the word limit for this assignment does not acknowledge any of the words in your prolongation list or in your add-on of look for notes. 6 The changing ways of the new zealand travel agency References Castillo-Manzano J. I. and Lopez-Valpuesta L (2010, September). The decline of the traditional travel agent model. Transportation Research Part E Logistics and Transportation Review. Chakravarthi, J. K. and Gopal, V. (2012). Comparison of Traditional and Online function Services A Concept NoteCheyne, J, Downes, M, Le gg, S. (2006, January). Travel agent vs internet What influences travel consumer choices? ledger of Vacation Marketing 12. 1 41-57 Eriksen, A (2012, August 13). Jobs dry up for travel agents and IT workers. The New Zealand Herald. Retrieved from www. nzherald. co. nz Hayhurst, L (2009, November). Positive view is key. Travel Trade Gazette UK & Ireland, (2889), 18. Medcalfe, G (2005). Bums on seats. NZ Marketing Magazine Vol. 24 Issue 2, p14-1. Retrieved from Business showtime premier database. Pearce, D. G. , Reid, L. , & Schott, C. 2009). Travel Arrangements and the Distribution Behaviour of New Zealand Outbound Travelers. daybook Of Travel & touristry Marketing. Richard, J. , and Zhang, A. , (2012). embodied mountain range, loyalty, and commitment in the consumer travel industry. Journal of Marketing Management, Vol. 28, Iss. 5-6 Tnooz (2012, August). House of Travel overtakes Expedia for gold medal Top New Zealand travel websites, July 2012. Retrieved from http//www. tnoo z. com/2012/08/09/data/house-of-travel-overtakes-expedia-for-gold-medaltop-new-zealand-travel-websites-july-2012/When Cameron Wilson travels across Queensland in his (2012, August 9). Queensland Country Life. p. 38. Retrieved from Business cum premier(a) database. 7 The changing ways of the new zealand travel agency Research Annotation 1 A origin that you cited in your report Reference Castillo-Manzano J. I. and Lopez-Valpuesta L (2010, September). The decline of the traditional travel agent model. Transportation Research Part E Logistics and Transportation Review. explore Strategy Searched Travel Agencies in Business acknowledgment Premier on 9 August 2012 AnnotationThis denomination discusses the requirement of travel agencies to adjust to meliorate levels of technology and examines the differences between the modern travel agency and the traditional model. It also shows the results of investigations with regards to consumers behaviour. I used this resource as it effectiv ely encapsulates the core focus I think to have for my report. Studies were used as show so conclusions could be made for the behaviours of travel consumers. For this reason, I felt comfortable as using this resource as reasonably of a platform for my statements on the subject of consumer behaviour, for example.Research Annotation 2 A source that you cited in your report Reference Richard, J. , and Zhang, A. , (2012). Corporate image, loyalty, and commitment in the consumer travel industry. Journal of Marketing Management, Vol. 28, Iss. 5-6 Search Strategy Searched travel agency and customers in Business Source Premier Annotation This article elaborate the importance of customer loyalty, corporate image and satisfaction, and shows their impacts on the success of a business as a whole. It shows the importance of each of these aspects in generating and maintaining a strong customer base.This piece was my main source for the fragment of my discussion relating to the customers the mselves, and their satisfaction. It was of great use to me as it drew usable conclusions from investigations and thoroughly explained each of the essays topics i. e. customer loyalty, corporate image etc 8 The changing ways of the new zealand travel agency Research Annotation 3 An academic source that you did not use or cite in your report Reference Vinod, B. (2011). The future of online travel. Journal Of revenue & Pricing Management, 10(1), 56-61. doi10. 1057/rpm. 2010. 41 Search StrategySearched travel agents in Business Source Premier, with result limited to Academic articles Annotation This piece could be a useful additional reading. It provides support for the section of my report based on competition existing in the industry. It focuses on different aspects of the internet such as social networking sites, and websites that have reviews from travellers. It therefore gives a somewhat different light in which to view the current market situation. It could also be of use to re ad as it discusses the importance of using websites effectively by making them as user- friendly as possible.