Internet+and+travel

= = toc =Introduction=

Since the introduction of the Internet to the general public, countless commercial industries and businesses have gone online. Such industries as shopping, gambling, banking, and traveling have been significantly and increasingly prospering in an online environment, granting users more flexibility, customization, and simplicity. In the days before the Internet all flight, hotel, and rental bookings had to be done through a travel agent, either by telephone or in person. As well, finding and learning about a certain travel destination meant browsing through travel magazines or going to the public library. Nowadays with the over 20,000 travel-related web sites, all of the previously mentioned tasks can be done easily, efficiently, and affordably online. Online travel services utilize networking, meaning they assemble information and then distribute it to consumers in a flexible manner with the aid of Internet technologies. A prime example of such a travel service is [|Expedia]. This website combines all aspects of booking a trip, from plane tickets to hotel reservations to car rentals. Users can either start from scratch, customizing every step of the vacation to their preferences, or browse through hundreds of pre-packaged deals updated daily. In this Post Industrial economy, labour is amplified by such computer and Internet technology. The online travel industry has been rapidly rising in popularity since the birth of the web. In 1996, it collected a total revenue of around $276 million. In the year 2004, revenue reached over $38 billion. In 2005, roughly half of all airline ticket sales were transacted over the Internet. Such statistics show the rapid rise of e-travel and its strong position within the industry, and there are no signs of any slowing down in the near future. In a basic structure, the benefits of the Internet can be applied to three fields of travel. First of all, it can be used as a research tool to explore possible destinations and provide insight. Second, it can be used to perform the necessary transactions such as hotel bookings, airline ticket purchases, and car rentals. Finally, the Internet provides general feedback and other services such as maps and directions. =Researching and Informing=

It is common for one to become familiar with their chosen destination of travel before they proceed to the transactions. In the Information Society, such can be done with great ease and efficiency through the Internet. There is an endless amount of raw information about virtually any place in this world on the web. Atlas and geographical websites, tourist information pages, and even the transaction sites as well provide the user with a plethora of factual information. [|WorldAtlas.com] is a prime example of a site devoted to providing basic information about all the countries of the world. In addition, each country's page provides links to other websites concerning the same topic. With the millions and millions of pages on the web, one can simply type in the city, state, or country of interest into a search engine such as Google and without a doubt, will be able to find the information they are seeking. Aside from the actual geographical location, a variety of companies ranging from hotels to rental services to airlines have utilized web pages to share their information. These websites for such companies as [|Marriott Hotels] or [|Air Canada] provide locations, booking details, costs, dates of availability, departures, special services, etc. in order to provide the user with all of the necessary information needed before they decide to proceed with the transactions. Before the Internet, all of this would need to be done through countless phone calls, browsing through brochures, and meetings with travel agents. Basically, the Internet provides the traveling public with a much more efficient way of gathering the necessary background information. =Transactions=

After gathering necessary background information, it is then time to proceed with transactions. By using the Internet, all sorts of travel services, airline companies, and hotel chains are able to offer the traveler a fast and simple transaction process with a few clicks of the mouse. The E-commerce boom gave way to such online business operations. When booking online, credit cards are the most popular form of payment. The user follows a number of clearly labelled steps, from entering necessary personal information to completing the payment. All prices, including taxes, are boldy stated and specified to prevent any dounbts or confusion. After these few simple steps, the transaction is complete. From here, the host website will list a set of options to the user with regards to obtaining their travel documents. Traditionally, one would require the documents be mailed to them, or would have to pick them up from the travel agency. Today, e-mail can be used to send the travel documents and receipts instantly. Accordingly, the Internet offers much more possibility of booking last-minute vacations. =Feedback/Services=

The Internet continues to play a significant role in travel even after all research and transactions are completed. One of its primary roles is to serve as a communication tool for travelers in foreign destinations. Before the web, in order to communicate with friends and family back home one would need to make phone calls or send postcards. Both options involve flaws, as foreign phone calls are often highly expensive and postcards involve a lengthy journey to the recipient. In this Information Society we live in now, contacting an individual back home is extremely convenient and simple. Almost all travel destinations in the world today have what are called "cybercafés" or "Internet cafés". A cybercafé is a location where one pays a fee to sit down and use a computer with Internet access. There are often numerous, easy-to-find locations throughout a city or town, all offering roughly the same hourly rates. From a cybercafé, a traveler has access to e-mail and Instant Messaging (IM) technologies in which they can communicate to another person in a timely, cost-effective manner. Many cafés offer webcams and USB port access to upload and send digital photos right from the destination. Another revolutionary aspect that the Internet has had on travel is boundless access to maps and directions. In the past, planning a road trip or journey meant buying the necessary maps for each country, state, or city. Searching for specific addresses and locations was a tedious process. With Internet technology today, virtually any map in the world is at your fingertips. Revolutionary free online services such as [|Google Earth] and [|MapQuest] are leading the way in this field. With the Google Earth program, one can type in an address of anywhere on the planet, locating it instantly. As well, it provides a directions service, allowing the user to enter the starting and ending addresses. With the addresses entered Google Earth draws out a detailed route of travel, right down to specific street names. The Internet has clearly made traveling much more efficient, cheap, and simplistic. =Effects on Travel Industry (Businesses)=

The introduction of the Internet brought widespread and rapid changes to businesses of the travel industry. All sorts of companies in the travel industry such as airlines, hotels, rental agencies, and cruises felt the pressure to pursue business online. By setting up websites, such companies had quicker, more direct communication with consumers. Utilizing e-mail for mass mailings to customers saves a great deal of money. As well, setting up websites that allowed for booking online cut costs of commission and labour as there would be less demand for travel agents. Basically, companies online were able to bypass traditionally required intermediaries, as now everything could be done over the Internet. Traditional travel agencies are feeling the pain as more and more travel services pop up online, as well as traditional companies moving their business online. There has been a steady decline in the number of travel agencies since 1995, around the time when the Internet was gaining commercial popularity. And so the trend has been to move online, or at least partly. Any type of travel agency, regardless of size, can set up a relatively low-cost website in which users around the world can access their services. In this sense, the Internet gives equal market opportunity to all travel services. In some aspects of the industry, traditional travel agents will always be more effective at serving the customer. For instance, vacations that are particularly high-end and involve numerous specific preferences are much better served through a live agent. Adventure travel, the fastest growing travel market segment in the U.S. according to the [|Travel Industry Association of America], is another prime example. By moving into such niche market areas, traditional travel agencies have a chance to stay in the business. The most popular way for traditional travel agencies to remain in the market though, is through convergence and merging. Many travel agencies are merging together in order to gain better access and position in the marketplace. The trend of combining traditional business with an Internet base is termed "click-and-mortar", and is increasingly being adopted by the travel industry. By offering online as well as offline services, reservations and bookings can be done quickly and inexpensively over the Internet, while more complex and specific aspects can be handled by an agent. As online travel services continue to expand their operations into new, more profitable market segments such as adventure travel and honeymoon packages, there is a realization that traditional travel agents must be utilized. Travel agencies continue to take advantage of the vast possibilities of the Internet. The year 2006 brings travel websites with more special features and functions. For instance, [|Travelocity] is planning to unveil a function that allows travelers from all over the world to come together and plan a single trip together. As well, more and more companies are adding customer reviews and feedback to their sites. =Effects on Travel Industry (Consumers)=

For consumers, the Internet significantly changed the way an individual prepared to travel. As mentioned earlier, there are endless sources of information regarding travel destinations available on the web. Easy access to such information is one of the key benefits that the Internet offers consumers. It is incredibly convenient to book anything from flights to hotels to cars to packages right from your computer. Those with Internet access need not be worried about any such factors as to when the travel agent is available, where one is located, or when one is available. Online travel agencies are accessible 24 hours a day, 7 days a week from all over the world. Meeting with an actual person is not necessary as all steps can be taken to book or reserve on the website. Online travel services save consumers both time and money. However, many travelers do not always have the time to search and book vacations online. Browsing the web for the best deals requires time as well as familiarity with using the Internet. In many cases travelers would rather place this burden on traditional travel agents. Another reason why one might choose to book vacations in the traditional manner is because of security concerns. Of the thousands and thousands of travel service websites, there are many that do not not have secure connections or reliable payment/information transfer methods. Even in the leading services, technology is not always error-proof and for those reasons, many consumers prefer booking their travel needs through a travel agent. With the convergence of traditional travel agents and online services though, companies are better able to serve such consumers. Travelers then have the option of carrying out simple transactions online if they wish, or contacting an agent for more complex arrangements. =Statistics=

=Online Travel Websites=
 * 47 million Americans purchased travel online in 2005, 7 million more than 2004
 * $38 billion spent in online travel in 2004, $80 billion expected to be spent in 2006
 * Online plane ticket sales accounted for roughly half of all ticket sales within the past 6 months
 * 70% of frequent travelers use the Internet for travel planning, 45% actually book online in 2004, up 6% over 2003
 * 40% of online bookers do all of their travel booking online in 2004, up 11% over 2003
 * Of these online bookers, 82% bought airline tickets, 67% booked hotels, and 40% made car rental reservations
 * 46% of trips planned online are taken by car, 41% are taken by air, 59% of these trips include lodging
 * 42% of business travelers used the Internet while traveling in 2005, compared to 22% of leisure travelers
 * Between 2000 and 2002, 26% of Americans have used travel agents to book a trip, down from 32% in 1999
 * 43% of travel agent users are Baby Boomers (age 35-54), 33% are of Generation X and Y (age 18-34)

[|Expedia] [|Hotels.com] [|Orbitz] [|Hotwire] =Related Wiki Pages=

E-Commerce Online Shopping Technology and Business

=Works Cited=

__All About Market Research__. 2005. Miniwatts International, Ltd. 25 Feb. 2006 

Burns, Enid. "Online is Destination for Air Travel Purchases." __Clickz Network__. 21 June 2005. Incisive Interactive Marketing LLC. 26 Feb. 2006 

Gilden, James. "Travel Websites Gain Visitors by Offering More Than Low Prices." __LATimes.com__. 22 Jan. 2006. Los Angeles Times. 26 Feb. 2006 

Gulledge, Frankie. "Impact of the Internet on the Travel Business." __FrankieGulledge.com__. 31 July 2000. University of Mississippi. 26 Feb. 2006  __ How the Net Will Impact the Travel Industry in the New Millenium__. 20 May 1998. International Business Travel Association. 25 Feb. 2006 

__Travel Industry Association of America__. 2005. Travel Industry Association of America. 26 Feb. 2006 

Logos courtesy of: http://www.travelocity.com, http://www.flightcentre.ca, http://www.expedia.ca