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Crafting strategies for sustainability: how travel agents should react in facing a disintermediation

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Abstract

The growing adoption of electronic transactions through the Web both by travel industry and their customers pose a great challenge to traditional intermediaries in this industry (travel agents) as it allows direct interactions between suppliers with their customers. Moreover, the advancement of Web technology like Web 2.0 drives many organizations to adjust their marketing strategy since it affects the way customers control the flow of information. With Web 2.0 customers are gaining more control over the flow of information where they have more information sources which come from various conversations taking place in their social networks. The study emphasizes on travel customers’ responses to web-based electronic transactions and strategies of travel agents (TAs) to sustain their business in a very competitive market. This paper discusses how electronic transactions through the Web affect to the survivability of TAs in Brunei. A Resource Dependence Theory (RDT) and CRM 2.0 are used to understand the phenomenon due to the changing of business environment, which is mainly caused by the Web technology. To assess the impact of web-based transactions, we conducted interviews with TAs, stressing on the effect of technology adoption and their business strategies, as well as a survey to travel customers emphasizing on their preference towards web-based transactions. It was found that the survivability of TAs in Brunei is at risk unless they have distinctive market segments or the capability to adapt to the changes. In addition, customers prefer online as well as personal interactions. This leads us to construct a reference model for TAs to survive in fast changing environment, initiate strategies, and embrace the latest technology advancement to fulfill customers’ expectations and preferences for their business sustainability.

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  1. www.internetworldstats.com/stats3.htm#asia.

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Authors and Affiliations

  1. Universiti Brunei Darussalam, Bandar Seri Begawan, Brunei Darussalam

    Mohammad Nabil Almunawar, Muhammad Anshari & Heru Susanto

  2. FBEPS-UBD, Jl.Tungku Link, Gadong, 1410, Brunei Darussalam

    Mohammad Nabil Almunawar, Muhammad Anshari & Heru Susanto

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  1. Mohammad Nabil Almunawar
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  2. Muhammad Anshari
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  3. Heru Susanto
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Correspondence to Mohammad Nabil Almunawar.

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Almunawar, M.N., Anshari, M. & Susanto, H. Crafting strategies for sustainability: how travel agents should react in facing a disintermediation. Oper Res Int J 13, 317–342 (2013). https://doi.org/10.1007/s12351-012-0129-7

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  • DOI: https://doi.org/10.1007/s12351-012-0129-7

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