Relevance of travel agencies in the digital age

In the digital age travellers have more choices and are better informed. This conceptual paper considers the evolution of business models in the travel industry and evaluates the value propositions offered by traditional retail travel agencies. Conclusions suggest that services provided by travel agents are still relevant and valuable. It was also found that the digital age offers various opportunities to agencies to harness the benefits of information communication technologies. However, awareness of its functionality and resources is required to utilize this platform to achieve economies of scale and rationalise costs. Value propositions, offered by travel agencies, also need to be altered to meet the changing customers‟ buying habits of tourism products. It is recommended that ICT and the Internet should become part of an integrated, customer centric marketing plan which includes online and traditional marketing tools. Travel agencies also need to engage in clear customer segmentation based on established customer needs. Despite the many technological advances, many travellers still find the idea of traveling daunting and the Internet to be intimidating and are willing to pay a premium for human interaction.

VOLUME 3(1) January-June 2014