Tourism Operations
TOURISM
OPERATIONS
ASSIGNMENT
CRITICALLY ACCESS THE REASON FOR AND AGAINST DISINTERMEDIATION IN THE TOURISM INDUSTRY. IN YOUR ANSWER EXAMINE THE IMPLICATIONS FOR THE SUPPLIER, CUSTOMER AND OTHER ORGANISATIONS
INTRODUCTION
Disintermediation is the cutting out of the middle man. In the tourism industry it is the removal of the intermediaries such as travel agents. This means that instead of going through the traditional distribution channels, the customers would deal directly with the hotels, air lines, car rental companies and transfer companies. (wikipedia) Disintermediation would only be useful for people that have access to the internet, so therefore people that do not have access to the internet will need a travel agent to book and arrange their trip or holiday. (Wigg 2004)
A travel agency is a retail business that sells travel related products and services to customers on behalf of suppliers such as airlines, hotels, railways, sightseeing tours and package holidays that combine several products. Travel agents help traveller’s thorough vast amounts of information and make the best travel arrangements for the customer. They also advise the customers about destinations such as weather conditions, local ordinances, attractions and exhibitions. (Travel agents 2009)
Travel agents visit hotels, resorts and other tourist places themselves to evaluate the comfort, cleanliness, condition of the hotel accommodation so that when they recommend a resort to a customer they are basing these recommendations on their own experience. (Travel agents 2009)
Intermediaries such as travel agents may be a standard part of the distribution channels but considering eliminating these intermediaries can have positive and negative effects. The travel agents add value to the process because of their specialized skills and knowledge but if disintermediation is done then sometimes this can increase productivity without reducing the value for the customer (www.maybenow.com)
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