Choosing between Travel agencies & the Internet

142 Pages·2015·1.78 MB·English

Faculty of Management
School of Tourism and Hospitality
Department of Tourism Management
Choosing between Travel agencies & the Internet
by
Kobus de Jager
Student number: 201286028
A dissertation
submitted in the fulfilment of the requirements for the degree

Masters: Tourism & Hospitality
M14001 / THM1DB9

Supervisor: Dr I Ezeuduji

February 2014

All rights Reserved
School of Tourism and Hospitality
University of Johannesburg
DECLARATION

I, Kobus Izak de Jager, declare this dissertation is my own, unaided work. Any
assistance that I have received has been duly acknowledged in the dissertation. It is
submitted in the fulfilment of the requirements for the degree of Masters: Tourism
and Hospitality at the University of Johannesburg.
Kobus de Jager
February 2014

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ABSTRACT

Travel agents have been traditionally seen as the key intermediary between
suppliers of travel services and the traveller. Developments in the field of information
technology offer consumers an alternative to booking via a travel agent - the option
to plan and arrange holidays online. Due to the ever developing nature of
technology, travellers have the luxury of a multitude of choices in their everyday life -
particularly so in making decisions regarding travel. Travellers will seek to optimise
choices by selecting a distribution channel which will provide them with the greatest
perceived value. The primary goal of the study is to explore the underlying factors
that influence consumer behaviour in making travel decisions, with specific reference
to choosing between booking through a travel agent or online. Research with a
perspective on travel decision-making in South Africa is limited. In attempting to fill
the void, this study surveyed 408 respondents residing in South Africa using a
structured questionnaire, and examined preference in booking holiday flights or
accommodation travel through a travel agent or Internet. A literature review was
embarked upon to create a framework for this study and to recognise previous
research related to travel decision-making. Exploratory factor analysis was used to
identify factors influencing traveller decision-making. Statistical tests, such as Chi-
square and correlation tests, were further used to examine the degree of relationship
and significance between items and factors. Factors that influence travel decision-
making were identified, namely trust and financial risk perception, convenience and
adoption of technology, price, personal contact or empathy and the role of
demographic factors such as age, income and ethnicity.
Travellers who preferred booking through the Internet found the potential of
technology to save time and effort and to be convenient, due to the Internet being
available day and night, important advantages of booking online. This study further
found that the rate of technological adoption amongst older age groups is increasing.
Travellers who preferred booking through a travel agent placed a premium on
personal contact and social interaction between traveller and travel agent. They
further valued the travel experience and ability of the travel agent to group
transactions. Transactional security proved to be vital to those booking online or
through a travel agent. The broader issue of trust in an intermediary played an
underlying role as an element of deciding between booking through a travel agent or
online.
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An important finding of the study is the necessity for a holistic approach towards the
consideration of factors influencing traveller decision-making. Research findings
suggest that managers need to implement management strategy which will focus on
mixing factors into a well-balanced proposition as to attract the support of travellers.

Keywords: Travel agent, Internet, travel decisions, travel technology, online booking,
trust, SERVQUAL

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LIST OF ABBREVIATIONS

CD Compact Disk
CRS Central Reservation System
CFA Confirmatory Factor Analysis
EFA Exploratory Factor Analysis
GDS Global Distribution System
IATA International Air Transportation Association
IP Internet Protocol
IT Information Technology
KMO Kaiser Mayer Oklin test
PCA Principal Component Analysis method
SERVQUAL Service Quality
SPSS Statistical Package for the Social Sciences
SSL Secure Socket Layer
TAM Technology Acceptance Model
TTF Task Technology Fit model
USA United States of America

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ACKNOWLEDGEMENTS

My gratitude and appreciation are extended to:
 My study leader, Dr Ike Ezeuduji for his guidance, support and mentorship.
This has been a journey for me. One in which I learned a lot about research,
statistics and the difference between South African and European research. A
lot of food for thought.
 My mother, Annette and sister, Luette for their time, patience, support and
assistance in making all of this happen. It was all worth it.
 Francis E Morrison for the language editing.
 Prof Nerine Bresler for (perhaps unknowingly) in one discussion, inspiring me
to take up this research.
 Hannetjie Boshoff for her interest and kind assistance in obtaining crucial
sources.
 Friends, colleagues and peers in the travel industry for their interest and
assistance.

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TABLE OF CONTENTS

DECLARATION ............................................................................. ii

ABSTRACT .................................................................................. iii

LIST OF ABBREVIATIONS ........................................................... v

ACKNOWLEDGEMENTS ............................................................. vi

LIST OF TABLES ......................................................................... ix

LIST OF FIGURES ........................................................................ x

Chapter One: INTRODUCTION AND BACKGROUND ................. 1

1.1 Introduction ........................................................................................................ 1
1.2 Goal of study ...................................................................................................... 4
1.3 Research objectives ........................................................................................... 4
1.4 Rationale for research ........................................................................................ 7
Chapter Two: LITERATURE REVIEW .......................................... 9

2.1 Introduction ........................................................................................................ 9
2.2 Factors influencing travel decision-making ...................................................... 11
2.2.1 The influence of trust and financial risk perception on decision-making 11
2.2.2 The influence of time on decision-making .............................................. 18
2.2.3 The influence of technological adoption on decision-making ................. 22
2.2.4 The issue of convenience and perceived enjoyment of the shopping
experience ...................................................................................................... 26
2.2.5 The impact of service quality dimensions according to the SERVQUAL
model for decision-making .............................................................................. 31
2.2.5.1 Empathy.............................................................................................. 36
2.2.5.2 Tangibility............................................................................................ 38
2.2.6 The influence of price in decision-making .............................................. 40
2.3 Cross-channel behaviour ................................................................................. 45
2.4 Conclusion ....................................................................................................... 48
Chapter Three: METHODOLOGY ............................................... 50

3.1 Introduction ...................................................................................................... 50
3.2 Research method ............................................................................................. 51
3.2.1 Data collection ....................................................................................... 51
3.2.2 Research instrument .............................................................................. 51
3.2.3 Target population, sampling procedures and data collection methods .. 53
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3.2.4 Questionnaire design ............................................................................. 56
3.2.5 Data analysis ......................................................................................... 59
3.2.6 Ethical considerations ............................................................................ 61
3.3 Conclusion ....................................................................................................... 62
Chapter Four: RESULTS ............................................................ 63

4.1 Introduction ...................................................................................................... 63
4.2 Demography .................................................................................................... 64
4.3 Statistical analysis ............................................................................................ 65
4.4 Normality of data .............................................................................................. 67
4.5 Factor analysis ................................................................................................. 68
4.6 Travel behaviour .............................................................................................. 71
4.6.1 The role of gender in choosing between Internet and travel agent ........ 74
4.6.2 The role of age in choosing between Internet and travel agent ............. 76
4.6.3 The role of ethnicity in choosing between Internet and travel agent ...... 77
4.6.4 The role of income in choosing between Internet and travel agent ........ 79
4.7 Trust and deciding between booking online or through a travel agent ............. 80
4.8 Convenience and technological adoption and its role in traveller decision-
making ................................................................................................................... 85
4.9 Best deal and price, and their role in traveller decision-making ....................... 87
4.10 Personal contact and empathy, and its role in traveller decision-making ....... 89
4.11 Conclusion ..................................................................................................... 90
Chapter Five: DISCUSSION ....................................................... 93

5.1 Introduction ...................................................................................................... 93
5.2 Trust and financial risk perception ................................................................... 94
5.3 Convenience and technological adoption......................................................... 97
5.4 Price ............................................................................................................... 100
5.5 Personal contact ............................................................................................ 101
5.6 The role of age, income and ethnicity in travel decision-making .................... 103
5.7 Research limitations and further research directions ..................................... 106
Chapter Six: CONCLUSIONS AND RECOMMENDATIONS ..... 108

6.1 Introduction .................................................................................................... 108
6.2 Conclusions ................................................................................................... 108
6.3 Recommendations ......................................................................................... 110
REFERENCES .......................................................................... 113

APPENDIX: TRAVELLER QUESTIONNAIRE ........................... 128

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LIST OF TABLES
Table 4.1: Respondent Demography........................................................................ 64
Table 4.2: Normality of data distribution – Kolmogorov-Smirnov ............................. 68
Table 4.3: Factor analysis: motivational dimensions, items and statistics ................ 70
Table 4.4: Trust and deciding between booking online or through a travel agent .... 81
Table 4.5: The role of convenience and adoption of technology in choice between
booking online or through a travel agent .................................................................. 85
Table 4.6: The role of price in choosing between booking online or through a travel
agent ........................................................................................................................ 87
Table 4.7: The role of empathy in choosing between booking online or through a
travel agent .............................................................................................................. 89

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LIST OF FIGURES
Figure 4.1: Frequency: Domestic travel (n=406) ...................................................... 71
Figure 4.2: Frequency: International travel (n=379) ................................................. 72
Figure 4.3: Preference: Booking domestic flights (n=404) ........................................ 72
Figure 4.4: Preference: Booking international flights (n=398)................................... 73
Figure 4.5: Preference: Booking hotels (n=400) ....................................................... 73
Figure 4.6: Preference: Gender and booking domestic flights. ................................. 74
Figure 4.7: Preference: Gender and booking international flights .......................... 75
Figure 4.8: Gender and booking hotels .................................................................... 76
Figure 4.9: Preference: Ethnicity and booking domestic flights ............................... 77
Figure 4.10: Preference: Ethnicity and booking international flights ........................ 78
Figure 4.11: Preference: Ethnicity and booking hotels ............................................. 79
Figure 4.12: General perception towards trust in travel information obtained online 82
Figure 4.13: Preference towards making use of a travel agent due to fear of
accidentally entering incorrect details online ............................................................ 83
Figure 4.14: General perception towards online suppliers using personal details
without traveller consent ........................................................................................... 84
Figure 4.15: Traveller’s level of agreement in making exclusive use of well-known
travel agent groups or travel websites ...................................................................... 84
Figure 4.16: General perception of trust in making travel bookings (transacting)
online ........................................................................................................................ 87

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