Travel Agency Online Expansion Options

Travel place Online Expansion OptionsSlide 1 IntroductionThe individual giving the notification is called John. The focus of this presentation is to consider the options for expansion online for a travel agency business that has traditionally operated from a naughty highroad shop.During this presentation the aim is to consider the reasons and potential scope for an internet-based travel agency. The presentation leave behind past move on to consider the types of products that would be best suited for the vindicated Skies Travel Agency given its watercourse strategic position within the market. Once the scope and positioning has been established, the presentation leading move on to look at the potential costs and benefits of the likely expansion and change of strategy. This volition include consideration of both the financial and practical implications with implementing the new online venture1.Slide 2 Online TrendsDespite the circulating(prenominal) economic trends, the travel industry and more specifically the online purchasing of travel services has boomed, in fresh years. The amount of money being spent online in relation to travel services has gain by 12 percent in 2007 and it is anticipated that this trend pass on continue between 2007 and 2012. This is not strike when all factors atomic enumerate 18 considered2.The travel sector is vast with multiple suppliers offering a range of distinguishable products which lend themselves perfectly to online interchange. As travel is perishable (i.e. it cannot be stored and used at a by and by date), companies forget be keen to delay that all seats on flights and all hotel rooms ar fully occupied. This leads to incremental and ever changing prices which require immediate update and these are facilities from which online travel agencies benefit. sheaf holidays sold through the high street travel agency have reduced by round 20%. This means that traditional agents such as return Skies must em brace these new trends in order to maintain their market share. Correspondingly, however, the number of package holidays booked online has add-ond by 19%, viewing that the market is still strong it is simply the purchasing patterns that have changed3.The scope online is much greater and this is widely recognised by m each tour operators. In fact, travel services and agencies currently make up around a quarter of all online advertising, showing that on that point is an increasing recognition of the power and expiration of the online travel sector.When considering high internet users, i.e. those who use the internet for at least 16 hours per week, 66% of these plurality have booked holidays or travel services online4. A further 10% of people get out look for teaching about travel on the internet, before wherefore going on to corrupt the products in a traditional high street environment5.Slide 3 Product Mix unmatched of the major benefits that internet users cite about using the internet to plan holidays is that it allows for dynamic packages. This means that several(a) flight options can be looked at alongside different accommodation options. By allowing for this degree of flexibility, clients are able to create their own packages that are individual to their own specific invites6.Open Skies is a customer-friendly travel agency that has a high reputation for offering excellent personal advice to its local customers. This unique selling point need not be lost by having an online presence. Although there are several swelled online based companies such as Thomas Cook that have the advantage of a much bigger network of offices and suppliers, they do not have the same personal relationships with their clients. Open Skies needs to look at the way in which it can capitalise on its added value customer service, while also allowing customers to inquire their various options for creating their own dynamic packages.Open Skies is a locally based company and al low physically remain so. Therefore, the main products being offered online will be no different from those currently offered in the high street. The travel industry is fiercely emulous in terms of pricing, which means that local high street travel agents such as Open Skies have to add value to their product mix by ensuring that they offer surplus security and advice to customers. Having a wind vanesite is an opportunity to capture a wider range of customers who can then contact the agency directly to finalise their booking. For this reason, it would seem prudent that the main focus of the Open Skies website should be to have an informative online presence that encourages customers to believe that Open Skies offers genuine additional value to their travelling experience7. This will enable Open Skies to set itself apart from the larger online travel agencies that merely offer cheaper and price competitive travelling options.Slide 4 Costs and BenefitsSetting up the initial infrast ructure to practise the website will require a degree of additional expenditure. There will be the need to purchase reckoning equipment to run the website software as well as the need to design, manage and regularly update the website. A basic website is relatively cheap to establish and can be updated and maintained with relative ease. As Open Skies already has a computer system in place and already makes use of the email system, it is possible that the expertise and infrastructure to manage the website is already in-house. This possibility should not be overlooked before outsourcing the tasks8. supererogatory runging will be necessary. Firstly, it will be necessary to maintain up to date and accurate information on the website, if customers are going to be able to trust and respect Open Skies Travel Agency. With increased traffic on to the website, it will also be necessary to ensure that there are staff members ready to respond to booking requests within an acceptable timefra me.Users of the internet are much more fast in their needs and expectations. If Open Skies is to maintain its current position as offering value added products, then it will need to accommodate its structure to be able to respond to this faster pace of trading. This will inevitably mean a larger, more flexible workforce9.However, this expansion will be funded by the massive increase in the number of customers and trade that will pass through the website. By establishing a web presence, Open Skies will potentially gain customers from across the country and even internationally. Customers are no nightlong limited by geography and this will naturally be reflected in the volume of custom that will come to Open Skies. This additional influx of customers will not be reflected with a similar increase in costs of servicing these customers. As bookings will be largely done online and over the phone, there will be no need to have additional office space (except to house the additional sta ff). Therefore, the returns from these additional customers will be greater and will continue to increase in line with the number of customers that are gained10.Slide 5 Strategy into ActionWhilst it is clear that there are benefits to Open Skies from obtaining an online presence, it will require careful planning if the reputation of the company is not to suffer. Firstly, Open Skies will need to ensure that the infrastructure and back-up procedures are in place. Customers will need to trust that the systems are accurate, efficient and secure any breaches in this respect would lead to a loss of trust which would impact on the value of the company.The current workforce will need to be considered in terms of how the individual members of staff can adapt to this new way of working. It is almost certain that additional staff will be required to manage the increasing number of customers and the immediacy of the demands of online customers. This increase in workforce will need to be manage d conservatively so as to ensure that the costs of the expansion are evenly matched by the increase in revenue11.Continuous monitoring and updating will be necessary to ensure that the information is accurate and that Open Skies is making the most out of its new online arm.Slide 6 ConclusionsOnline travel agencies are experiencing a inveterate boom, despite the current economic downturn. For a company such as Open Skies, gaining an online presence is vital, if it is to exploit the potential in the market. Depending on the current infrastructure in place, the costs of set up and alimony could be relatively little. Security and back-up processes will be important, if it is to maintain its current high level of customer service and reputation.New staff will almost certainly be required to deal with the increase in trade and to continue to offer the high level of customer service that it currently offers. The need to go online is clear and Open Skies needs to embrace the changing t rends. However, embracing new, online technologies needs to be plotted carefully so that the value added services can be maintained and customers will be prepared to pay more for these services, meaning that Open Skies will not have to compete with the low prices offered by the larger organisations.BibliographyBharadwaj, Prashanth Nagendra, Soni, Ramesh G., E-Commerce Usage and recognition of E-Commerce Issues among Small Firms Results and Implications from an Empirical Study, Journal of Small Business Management, 45, 2007Buhalis, Dimitrios, Etourism Information engineering science for strategic touristry Management, Pearson Education, 2003Duray, Dave, Vering, Matthias, The E-Business Workplace Discovering the Power of Enterprise Portals, John Wiley, 2001Frew, Andrew J., Information and Communication Technologies in touristry 2004 Proceedings of the International Conference in Cairo, Egypt, 2004, Springer, 2004Goeldner, Charles R., Brent Ritchie, J.R., tourism Principles, Practi ces, Philosophies, John Wiley and Sons, 2006Kozak, Metin, Andreu, Luisa, Progress in Tourism Marketing, Elsevier, 2006Rayman-Bacchus, L., Molina, A., Internet-Based Tourism Services Business Issues and Trends, Futures, 33, 2001Tate, Will, Rosen, Cheryl, Frame a Travel Strategy risk the Delicate correspondence between Avoiding Travel Costs and Keeping Travelers Productive, Journal of Accountancy, 199, 2005Watkins, William M., Technology and Business Strategy Getting the more or less out of Technological Assets, Quorum Books, 19982002 Mori Survey licenced by Association of British Travel Agents (ABTA)Footnotes1 Bharadwaj, Prashanth Nagendra, Soni, Ramesh G., E-Commerce Usage and Perception of E-Commerce Issues among Small Firms Results and Implications from an Empirical Study, Journal of Small Business Management, 45, 20072 Rayman-Bacchus, L., Molina, A,. Internet-Based Tourism Services Business Issues and Trends, Futures, 33, 20013 2002 Mori Survey commissioned by Association of British Travel Agents (ABTA)4 Travelers Use of the Internet, 2004 Edition5 Frew, Andrew J., Information and Communication Technologies in Tourism 2004, Proceedings of the International Conference in Cairo, Egypt, 2004, Springer, 20046 Goeldner, Charles R., Brent Ritchie, J.R., Tourism Principles, Practices, Philosophies, John Wiley and Sons, 20067 Kozak, Metin, Andreu, Luisa, Progress in Tourism Marketing, Elsevier, 20068 Watkins, William M., Technology and Business Strategy Getting the Most out of Technological Assets, Quorum Books, 19989 Buhalis, Dimitrios, ETourism Information Technology for Strategic Tourism Management, Pearson Education, 200310 Duray, Dave, Vering, Matthias, The E-Business Workplace Discovering the Power of Enterprise Portals, John Wiley, 200111 Tate, Will, Rosen, Cheryl, Frame a Travel Strategy Find the Delicate Balance between Avoiding Travel Costs and Keeping Travelers Productive, Journal of Accountancy, 199, 2005