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The Impact of internet on Travel Industry



Internet is a buzz word in today’s world; sometimes Travel industry are using internet without

thinking Whether is it really going to add any value to the service that they are providing or not.

In this Paper I am trying to proof the same thing; Travel industry offers different services to the

clients Like :

  1. Giving information about availability of the tickets
  2. If someone cancel the ticket then providing the easy way to refund the money for the ticket
  3. Providing the secure way of money transaction
  4. Providing the effective way of procurement of the ticket
  5. Advance booking facility
  6. Providing other relevant information regarding travel packages

Through this research I am trying to proof that after using the internet whether the quality of

These services are enhanced or not. If using of internet there will be no enhancement of the

Quality of these services; then we can easily conclude that using of internet in travel industry is

Nothing but a show game. But after this research I found that there is a correlation between the

Using of internet & quality improvement of most of the services that provided by the travel











Today, the travel information services are dominantly provided by Global Distribution Systems (GDS). The Global Distribution Systems provide access to real time availability and price information for flights, hotels and car rental companies. However GDSs have legacy architectures with private networks, specialized hardware, and limited speed and search capabilities.

   Currently, travel information services are dominantly provided by Global Distribution Systems (GDS). A GDS gives its subscribers pricing and availability information for multiple travel products. Travel agents, corporate travel departments, and even Internet travel services, subscribe to one or more GDSs to check, for example, flight availability and prices for their customers.

Global Distribution System (GDSs) continued to consolidate and diversify their

operations by unbundling their services and expanding their product offerings into

other transaction-processing and information management services. These were meant

to serve customers other than airlines, who were trying to reduce or eliminate GDS

fees all together.

The demographic profiles of those who made online plans at the emergence of Internet travel in 1996 were more likely to be employed, educated to the postgraduate level and a professional or manager. Five years later, online travel has gained mainstream popularity, and there are thousands of sites that offer travel information and services. They range from direct providers (e.g. airlines, hotels, ground transportation) to support services (e.g. tour organizers, travel and trade publications, hotel management companies), tourism development organizations, eco-tourism coordinators and many more. Depending on the publisher, travel Web sites could be categorized as service providers, destination related or Internet travel agencies (sometimes virtual branches of traditional brick and mortar agencies such as American Express, or virtual branches of Internet portals like AOL and Yahoo!).


                     Travel Industry Supply Chain Simplified – 2007

Providers — Airlines, hotels and transportation companies; these entities invested in

products (planes, properties, vehicles) and services for travelers.

 Distributors – Computer Reservations Systems5 (CRSs); technology companies that

consolidated supplier information, inventory and pricing data, and provided a way to

electronically search, book and issue tickets and documents.

 Travel Agents — Using CRSs, provided leisure and business travelers with one-stop

shopping guidance and pricing and schedule advice to make reservations, issue tickets

and provide ancillary services such as passport processing or currency conversion. They

operated in a variety of market segments, such as wholesale, retail, business, leisure and

specialty packages.

  Charge Card companies – Played a role by making purchasing more convenient and

secure for consumers, and by providing corporate buyers consolidated transaction data

about their company’s activities, which helped them with purchasing decisions and

policy tracking.

  Travelers — The end-user or customer, who may be leisure and/or corporate traveler,

or a travel planner who books trips for an employee to take

Primary Objective:

Through this research I try to found that there is a correlation between the Using of internet &

quality improvement of most of the services that provided by the travel Industry.(Different

services are specified above) 


H1: Tickets are easily available after using internet

H2: By using of internet money can be easily refundable to those people who canceled the ticket

H3: Tickets are easily procured by using of internet

H4: advance booking is easily done with the help of internet

H5: Secure money transaction can be obtained through internet

H6: internet helps to provide the relevant information regarding travel packages

Research Methodology:

  1. Research design:

The research design which I have used is Descriptive research design

Reasons for Descriptive type of Research :This design is used to describe characteristics of a problem or a phenomenon. And this method is used when we are aware of partially defined problem i.e., we know that internet has an effect on the services that are provided by the travel industry; but through this research I try to proof what extent it effects this industry.

            2.         Data Collection Methods

i)                   Secondary data:

                              Journals, Articles, Books, Internet

ii)                Primary data :

a)      Population: people of Delhi 

b)      Sampling population: people of South Delhi who are travelling either by airplane or by train. 

c)      Sample Size: 900 persons 

d)      Sampling plan: non-probability sampling technique is used to find the use of internet and telephone based services. 

e)      Questionnaire development: A questionnaire was prepared consisting of 7 questions and 6 demographic questions.

f)       Data collection: through personal interview and questionnaire data is collected.

g)      Sampling Design: convenience sampling design is used.

h)      Type of data analysis: Regression and Correlation.

i)        Scaling Techniques: In the research project, the non-comparative scaling technique is used. Among non-comparative scales, Likert scale is used.

j)        Fieldwork: The field work of collecting data from respondents has been done through personal Interview and questionnaire from internet using persons of south Delhi.

k)      Data was analyzed through SPSS – Statistical Packages for Social Science.


After this research it is proofed that after implementing internet there is some improvement in

the services like 1. Availability of the ticket 2. Advance booking of tickets 3. Relevant

information can be obtained through internet 4. Money can be easily refundable.

If we check research results we find that there is a positive correlation between the development

of these services & using of the internet.

Research result also shows that money transaction through internet is not secure that means using

of  internet is not able to raise the bar of the quality of the service called secure money

transaction; & again correlation between procurement of tickets cost effectively & using of

internet failed.(whenever significance value is more than .05 in 95% confidence level; we can

easily conclude that there is no correlation between that two variables)

According to the model fit equation we can conclude that Impact of internet is limited to some of

the service(like1.C1=Availability of the ticket2.C3 =Advance booking of tickets 3.C4= Relevant

Information can be obtained through internet 4. C2=Money can be easily refundable)

Model fit equation is: Y= 1.208 – 0.252*C1 +0.511*C2 + 0.522*C3+.035*C4(Y=Efficiency of the system after using internet)

According to the to the model summary table we find that value of the R = .83; that means the

Model fit equation we find that is 83% correct & there is strong correlation between the

Independent variables. (Specified under the model summary table) [R square value=.69; that is

More than .5 at 95% confidence level]


Through this primary research it is proofed that internet is playing a vital role in enhancing the

Quality of some services of the travel industry. So we can say that internet has some impact on

This industry, but as we know that internet does not assure to provide the secure mode of money

Transaction & procurement of e-ticket is not at all cost effective compared to the traditional

Procurement. We can conclude that in future when ever companies are going to implement such

System(internet system) they should look after that these systems also  help to enhance the

quality of these two services also.


  1. Anonymous (2008, July), Third World Wireless Coming Fast Study. Available online: www.cellular.co.za/news_2008/07182001- third_world_wirerless_coming_fast.html
  2. Hal Berghel, Digital village: a cybertravelling  manifesto, Communications of the ACM, v.44 n.3, p.17-20, March 2008  [doi>10.1145/365181.365914]
  3.  CAP Ventures (2008), The Future of travel industry abstracted. Full report available from CAP Ventures.
  4. Curtis, R. (2008), NIST Electronic Book 1999: The Next Chapter, September, 1999
  5. Curtis, R. (2008), NIST Electronic Book 2000: Changing the Fundamentals of Reading, September, 2008
  6. EMC (2008, July), EMC Forecasts Subscribers to Top 1 Billion by End of 2008. Available online: www.emc-database. com/website.nsf/index/pr010718
Source by soumyamoy Maitra


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