E-commerce travel industry Essay

Introduction

Harmonizing to Keith Blois, ( 2003 ) , in recent old ages, increasing Numberss of concerns have been utilizing the Internet in their selling attempts. The Internet is alone because it is both a market and a medium. This means that it can expeditiously presume a multi-channel function by functioning as a computer-mediated market in which purchasers and Sellerss entree each other, and as a medium to carry on and put to death concern maps such as selling, gross revenues, and distribution.

Many e-commerce rules were pioneered by the travel industry. These include the first business-to-business electronic information exchange and industry-wide electronic market place. This environment provided unprecedented chance for operations research ( OR ) patterning. Travel companies continue to deduce one million millions of dollars yearly from these and derivative theoretical accounts. The handiness of dependable, low-priced communications via the Internet is non merely supplying new mold challenges within the travel industry, but it is besides supplying similar chances in other industries [ 1 ] . Tourism industry is one of the most competitory industries within the economic environment. Within industry ‘s boundaries histrions have more or less late and with significantly different forms of action undertaken attempts to accomplish an integrating of the cyberspace platform and its applications. In this subdivision, we explore the effects of electronic commercialism and its possible for competitory advantage for air hose industry by utilizing Michael Porter ‘s seminar work on industry analysis as a model.

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§ Website Comparison

www.travel companiesocity.com:

The minute I visit the Travel metropolis site -the first page gives me the feeling that my state, Sultanate of Oman is non at that place in listed? And I do n’t wish it that my state is non listed here. Traveling in to the web site with this sad feeling in head that my state is non listed we go in front to log in to one of the planetary sites as they say, the nearest state, and the company wants to state excessively many things in one spell to the clients and this is something that is hard to digest for the first clip visitants. The first-timer is really baffled to be able to associate to all the characteristics in the web site. Though the regional spirit and nexus through the local site helps it is hard to make a really high degree of localisation of the content to provide to all the sections of the market

www.southwest.com

The expression and feel of this web site is a batch cleaner than other travel companies website for case in Travel metropolis.

The most of import characteristic that this web site it that most of the commonly used bill of fares are neatly tucked inside the chief bill of fare and merely on the motion of the mouse they unfold in to the options. This is a really good characteristic that helps keep the clean expressions and still does non compromise on the functionality

www.Adrenalin.com

This Polaris group company that is selling the HR package is utilizing the web site more for serving functionalities

The overall model:

  • Generating demand
  • Ordering
  • Fulfillment
  • Processing payments
  • Service and support
  • Security
  • Community

Regardless of which concern theoretical account travel companies adopt, to be successful, travel companies need to understand how the Web and e-commerce affects their concern [ 2 ] . Travel companies need to develop an overall scheme covering: strategic direction, IT substructure, design, content, e-commerce systems, selling and client service. Travel companies besides need to be originative and entrepreneurial. As every enterpriser knows nevertheless, you will merely be genuinely successful if you provide echt value to your clients and work out a job for them. As it is apparent from the above list that it ‘s easy to voyage through the web site by following the links. It ‘s user friendly and the place page of the air hoses gives a glimpse of the services provided by them and the beautiful finishs and the activities which can be performed. It besides gives the information about the hotels and resorts in each finish. All the papers or equipments demand for all the state of affairss is besides mentioned in the website e.g. when going with pet, going with kids, luggage regulations etc. Over all it gives every possible information to the riders they might necessitate to do their travel program and during their stay at assorted finishs.

Beginnings of Competitive Advantage

Travel companies do conform to those which Porter describes: Cost Leadership, Differentiation and Focus. The proposition is that travel companies that can successfully work in one of these countries will be able to set up and prolong a competitory advantage.

§ Cost Leadership

Travel companies can bring forth important cost nest eggs by directing tickets, newssheets, quotation marks, and other paperss via Internet, instead than by station or autotype. Travel companies can utilize Web site to print – in a cost-efficient manner – public sphere paperss such as one-year studies, merchandise booklets, places vacant, contact inside informations and other of import Travel companies ‘ information. Travel companies can salvage on the cost of running “bricks and mortar” mercantile establishments and can make planetary markets without holding to develop a physical planetary distribution web. Most significantly, Travel companies can salvage on client service costs by enabling clients to function themselves.

One of the American Travel companies CEO said that the Web site is playing a major function in extenuating the rise in unit costs affected by high fuel monetary values. It ‘s 10 times cheaper to present to clients through the online service than through a travel company ‘s agent and costs 5 times less than utilizing travel companies ‘s ain reserve staff. The engagement cost per rider online is good under $ 1, and is scaling down even further. He said Internet usage by riders was assisting the bearer maintain menus at low price reduction degrees [ 4 ] .

Massive investing in both business-to-business ( B2B ) and business-to-customer ( B2C ) information systems is expected to interpret into of import cost nest eggs in procurance, gross revenues, charge and other support activities. The travel companies ‘s to the full automatic ordination system, for illustration, should cut down order processing costs by 90 % . [ 5 ] .

§ Differentiation

E-ticketing the issue of a engagement codification at the decision online passage that replaces the traditional travel companies ‘ ticket. E-ticketing seems to be a ‘win-win ‘ solution for the travel companies concern. It offers the travel companies the opportunity to do considerable nest eggs in both trade footings every bit good as in invoicing and internal accounting processs. Furthermore, it helps to contend the downward net income spiral that has affected the industry for old ages. Second, it is really attractive to clients, who may profit from a service offer both technologically advanced and of high intrinsic value.

§ Focus

The travel industry gives us a perfect illustration of successful Focus schemes – that is the alleged “Integrated Operators” of the travel concern. FedEx, the integrated lading bearer, was the innovator. Having developed a really efficient and to the full computerized system for tracking single packages anyplace on its web it took the following logical measure. In 1994, through its web site, it allowed its clients to book and pay for its services without limitation via the Internet [ 6 ] .
The e-Commerce substructure developed by travel companies allows aggregation and cardinal storage of gross revenues and selling informations. Travel companies use this information to drive determination support tools for planning and selling.

§ The Business Theories and constructs:

The old pillars and new significances

The Laudon and Traver model 2005 is really luxuriant explicating the different pillars that have contributed to the development of the E-Commerce model.

This model at the really top of the list has E-Commerce application that can be used for the development of concerns in the hereafter. These applications may look at the beginning like out of a scientific discipline fiction book but are so worlds.

The disintermediation and Reintermediation:

The travel agents for illustration it was believed that will lose their occupations when more people are interested on on-line concern but interestingly the usage of these web-enabled characteristics have merely increased the usage and comfortss of these concerns.

For illustration two of the three web sites that have been taken up for analysis by our group are Travel web sites. These are supposed to pass over out the concerns of the mediator called the travel agent but interestingly, these have added to the convenience of the travel agent hence making a new mediator.

The Grover V and J Teng ( 2001 ) theoretical account of the infomediaries and information flow theoretical account gives a more clear thought about the assorted channels that carry information between the buyers/sellers and the infomediaries.

The Subjects:

Therefore the subjects that came up to us were the B2C theoretical accounts and we were interested in looking specifically at the travel related web sites. There was one website travel that we could non acquire an blessing for but the group was happy to see the concern theoretical account of B2C

B2C:

The group was of a really unvarying sentiment that the web sites have to be B2B merely since some of the informations that was spoken approximately were similar $ 250 billion gross in 2005 from B2B as against 6.3 trillion in B2C. Although the difference is immense the group came to a strong consensus that the spread will be bridged and it will be deserving prosecuting with all the hopes for new concern theoretical accounts in the hereafter go oning in the B2C section instead than the B2C section.

The decease of the Physical travel agent or the focal point on creative activity of new mediators

Sing the new mediators that are being evolved because of the e-business it is was discussed if the web sites will pass over away the travel agent.

But the treatment pointed in the way of all web sites have been playing a supportive functions in the B2C forepart and the travel agent themselves are utilizing these web sites to assist clients and give them a better service.

The Adrenalin.com web site that sells package has been utilizing the site to make out to the resellers every bit good. In a concern where there is a really high connectivity on the cyberspace, this is a alone characteristic that this company is utilizing it build client trueness every bit good as expand the channel of distribution.

§ The standards for measuring the web sites:

Epinephrine

South West

Travelocity

Site Design

6

8

6

Navigation

6

8

6

Customer Interface

9

7

7

Business Model

8

7

6

Standards

Explanation

Navigation

Is it easy for visitants to happen their manner around the site?

Does the site comply with three chink regulation?

Consistency

Are design elements, particularly expression and feel, consistent from page to page?

Will the web site and contents appear the same on all visitants ‘ screens?

Performance

How long does it take for the page to look?

Doest site comply with the 12-second regulation? With the 4-second regulation?

Appearance

Is the site aesthetically delighting?

Does the site ‘s expression and experience express the company ‘s coveted image?

Is the site easy to read, easy to voyage and easy to understand?

Quality Assurance

Make the site reckoners, pilotage links, visitants ‘ enrollment procedure, hunt tool etc. wok decently?

Are all the dead links fixed quickly?

Is the site available for the full service 24 hours a twenty-four hours, 7 yearss a hebdomad?

Interactivity

Does site promote the visitant to play an active function in larning about the concern ‘s merchandises or services?

Are all appropriate contact inside informations available on the Website so that visitants can subject feedback and inquire inquiries?

Security

Is the client information protected?

Does the client feel safe in actions such as subjecting recognition card information?

Scalability

Does the site design provide a seamless way for sweetenings or ascents in the hereafter?

Will site growing and increased use protect the initial investing in the site building?

The Criteria for appraisal were selected after deliberations on how the client will see the inside informations of the site. The standards client interface was included to measure how the company was entering the inside informations of the client traffic and entering them in to useable database.

In the instance of Southwest it was really clear that the web site is a topographic point for constructing the trueness plans of the air hoses. The Adrenalin web site is a good topographic point with its characteristic of web log, for all troubleshooting and proficient whitepapers

How Web Site Visitors Evaluate “Content”

Criteria ( and related “subcriteria” )

Explanation

Relevance ( applicable, related, clear )

Concerned with issues such as relevance, clarity and “goodness” of the information

Timeliness ( current, continuously updated )

Concerned with the currency of the information

Reliability ( credible, accurate, consistent )

Concerned with the grade of truth, dependableness and consistence of information

Scope ( sufficient, complete, covers a broad scope, detailed )

Evaluates the extent of information, scope of information and degrees of inside informations provided by the web site.

Perceived usefulness ( enlightening, valuable, instrumental )

Visitors ‘ appraisal of the likeliness that the information will heighten their buying determination

How Web Site Visitors Evaluate “Web Site Design”

Criteria ( and related “subcriteria” )

Explanation

Access ( antiphonal, load rapidly )

Refers to the velocity of entree and the handiness of the web site at all times.

Usability ( simple layout, easy to utilize, good organized, visually attractive, merriment, clear design )

Concerned with the extent to which the web site is visually appealing, consistent, merriment and easy to utilize.

Navigation

Evaluates the links to needed information.

Interactivity ( customized merchandise, hunt engine, ability to make a list of points, change the list of points and happen related points )

Evaluates the hunt engine and personal characteristics ( e.g. – shopping cart ) of the web site.

Recommendation:

Website should be more enlightening. It should be easy to voyage through assorted pages even for the new online users. Since the Travel Agency is supplying batch of services and merchandises for its clients so must hold “Search” map should hold bead down bill of fare so that even the client who are non cognizant about all merchandises and services of the Travel Agency can acquire information about it. May be it will assist the Travel Agency to hold more clients as erstwhile clients are non cognizant about all the merchandises offered by the Travel Agency.

As it is clear from the fiscal study of Travel Agency which is available on web site that the latest study is non available i.e. for 3rd one-fourth. So it should be taken attention that the web site is updated on a regular basis.

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