The Reaction and Strategy of Travel Agency toward Implementing Airlines Zero Commission Policy
| Autor: | Yu-Chi Wang, 王玉琪 |
|---|---|
| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 In the tourism industry, the business relationship between Airlines and Travel Agents is closely related. Travel agents have always played an important role as a medium between customers and tourism suppliers in the marketing of tourism. Due to development of technology, progress of computerization, transparence of information, and prevalence of e-commerce, airlines have been investing vast amounts of capital and manpower to develop their websites, as well as reducing the cost of booking to each GDS and miscellaneous commission to agents, so that direct marketing is achieved for common consumers. Due to global financial crisis, the estimated loss of revenue in the airline industry would reach 90 billion dollars in 2009 and 5.6 billion dollars in 2010. Hence, the airline industry has no choice but to seriously reevaluate every spending cost and moderately adjust its commission system that has traditionally been applied to travel agents in the middle. The study uses the Qualitative Research Method by Depth Interview. Semi-structured in-depth interviews were conducted according to predetermined questions and interview outlines. Interviewees were selected by Purposive Sampling in which 10 travel agents participated in the study. The responding strategy of Taiwan’s travel agents toward airlines’ implementation of zero-commission policy was studied through their professional perspective. The study focuses on travel agents faced with the possibility that airlines may implement the zero-commission policy. Their cognitive attitude, what impact and effect that they will eventually encounter, and their responding strategy are summarized as follows: 1. It is an inevitable trend that airlines will implement the zero-commission policy. 2. Airlines would imitate each other of implementing the zero-commission policy. 3. The impact isn’t great for travel agents presently because international carriers have not implemented the zero-commission policy yet but may consider the implementation soon. 4. Travel agents would charge service fees and ask for incentive bonuses as a substitute for commission. 5. Travel agency’s corporate arrangement and business model would adjust its policy accordingly in the event of the zero-commission policy by airlines. 6. The Association (of Officials) should render assistance to travel agents in the wake of the zero-commission policy implemented by airlines. 7. There is a coexisting relationship of cooperating partnership and competitor between travel agents and airlines. 8. Another worry for travel agents is that consumers’ cognition toward service charges is not clear. The study has the following recommendations for travel agents: 1. Travel agents need to reposition themselves. 2. There is a value in service; hence, travel agents need to create resources for more revenue. 3. Travel agents need to increase their attached value. As for the Association of Travel Agents, the study suggests that the Association should coordinate with airlines for assisting travel agents actively. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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