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Disintermediation in Tourism Essay Example

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Disintermediation in Tourism

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Disintermediation in Tourism. It makes the market place highly competitive as information available to the consumers as well as the options available to them is numerous. More destination choices, there detailed information including videos and availability of an interactive platform such as internet benefits the customer groups. The service providers are able to offer services at lower cost as the commissions and charges involved for the intermediates are reduced.Income level and market size are also significant explanatory variables, while human capital and the structure of the financial sector play an insignificant role. Although new information technology may facilitate direct marketing and a higher retention of revenue (by eliminating the intermediaries), the results of this study indicate that this process will mainly take place in low-risk countries.

There are various service providers like Worldspan, SABRE (American Airlines) and others have experienced tremendous growth in the recent past in their online users. These are one of the largest service providers in the travel and tourism industries.Worldspan has a huge network of travel agents in more than 40 countries. It is a network of approximately 15000 travel agents and connects more than 365 airlines, forty car rental companies, one hundred and sixty eight hotel chains (26,000 hotels) and special travel service providers. On the other hand SABRE has a network in more than seventy countries. It has a network of 28,000 agencies which operates from more than one lakh terminals of these 74 countries. It provides information on more than 700 airlines, 195 hotel chains and more than 50 car rental companies.In a study conducted by PhoCusWright report European Online Travel Marketplace: Focus on the U.K it is mentioned the growth in the European online travel market. It states that in the year 2004 the growth in the European online market was approximately 49% while by volume it reached to 29 billion Euros in 2005.The acceptance of disintermediation is result of various factors in the tourism industry. The growing numbers of internet users and people who prefer booking tickets online, availability of good services by various service providers, flexibility available to consumers and cost are some of the factors contributing to increasing online bookings.Disintermediation initiated by consumers is often the result of high market transparency, in that buyers. Disintermediation in Tourism.

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preview essay on Disintermediation in Tourism
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Tourism
  • Level: Undergraduate
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