¶ … travel industry is currently undergoing several changes because of the introduction and increased use of internet technologies. These technologies have provided several opportunities in this industry that have made it more attractive for small companies because of the numerous advantages associated with these developments. For a small company considering entry into the internet for market travel, there are various strategy routes that can be used for developing corporate and global strategy for all business operations. The most appropriate strategy for such a company is the prescriptive strategy route because its helps in strategic planning, which is an important aspect for every company or business. This approach enables the firm to develop its objectives, goals, and intended strategies to business operations through analysis of the environment and the organization's resources.
As an established internet provider, the small company can used learning-based, survival-based, and network-based strategies to increase its presence in the market. In this scenario, the firm should not consider using uncertainty-based strategy route because of its minimal regard of the value of strategic planning. Nonetheless, companies in the travel industry should consider adopting the Internet because of its expected impact on the future of travel, especially on customer buying patterns and the future of travel agents.
Market for Internet Travel:
As the modern society and business environment is characterized with rapid technological advancements, these developments have continued to transform the way business is conducted. One of the major examples of the impact of these developments on business operations is that Internet technology is transforming the U.S.$100 billion global market for travel booking. For much of the previous five decades, many travelers have basically used independent travel agencies to book their tickets and accommodation for nationwide and global travel. The widespread use of these agencies originated from their possession of relevant contacts and networks with airlines, hotels, car hire agencies, rail operators, and other firms involved in providing travel services. In the past ten years, internet technology has revolutionized this market because it has allowed linkages in travel services to occur at the level of individual customers. While it's not yet complete, online independent booking has been brought by Internet technology as travel agencies have been eliminated from the value chain. However, the main concern is regarding the most appropriate strategic route to use when designing a strategy, particularly for smaller travel companies.
Appropriate Strategy for a Small Company Entering the Internet Travel Market:
As independent travel is growing, independent travelers are more likely to be attracted to and choose to use the Internet. Such travelers basically include young travelers with limited time and money and retired independents with more time and money. However, independent travelers account for a huge portion of Internet travel booking. Given that the Internet travel booking market has continued to grow to an extent that it's currently large, it's quite difficult to obtain a complete view of the various services and booking agencies that are available. This difficulty is also associated with the ongoing change and development of the market and industry.
Currently, internet travel service providers can be divided into three major categories i.e. primary providers, online travel agencies, and metasearch travel websites. The primary providers include the main airlines, hotel chains, rail companies, and car rental firms. These providers are time-consuming to find on the internet, especially on information about their availability, special deals, and prices. On the contrary, online travel agencies are firms that provide a variety of travel services and primarily driven by a specialist sector. Metasearch travel websites are the seemingly new firms that use complex search engine technology to find all the available prices and compare them. As a result of their differing nature, the profits from online business operations depend on the specific nature and category of the firm. Each of these internet travel company categories has varying profit margins and sources because of the differing operating environments.
In the past few years, numerous questions have been raised regarding internet travel opportunities for small companies. While the cost of establishing and maintaining a new internet travel website is relatively small, smaller companies need to consider various factors in their efforts to establish travel websites. This is primarily because establishing and maintaining the website is not the only major factor to internet travel strategy since real success depends on attracting enough customers in order to generate enough business and profits.
When considering the opportunities to move into the market for internet...
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