Online Travel Agency Supply Chain

1684 Words Apr 30th, 2006 7 Pages
Travel Agency Supply Chain Travel Agency Supply Chain With eCommerce technology rapidly improving and the number of people using the Internet increasing everyday, "brick and mortar" travel agencies are turning to non-traditional methods when developing their supply chain. Over the past 10 years the supply chain of the travel agency has evolved tremendously in order to incorporate the use of websites to promote online sales. In the following paper we will first describe the supply chain for a traditional "brick and mortar" travel agency. Second, we will describe the supply chain for online travel agency. And finally, we will describe the differences in the supply chain from a traditional "brick mortar" travel agency to an online …show more content…
Cendant 's other businesses include Galileo, a rival to Sabre 's global distribution system; the Avis and Budget car-rental operations; and hotel chains such as Ramada, Travelodge and Days Inn (Anonymous, 2005). Thus, in the modified supply chain travel agencies have become travel conglomerates, controlling a vast array of both products and services beyond simply booking a flight or tour.
An important thing to consider when analyzing the success of online travel in the realm of eCommerce is that online travel market has virtually exploded over the past 10 years. According to The Travel Industry Association of America (TIA), the market of 96 million online travelers has grown 256 % since 1996, when only 27 million travelers used the Internet. Among the 143.3 million U.S. travelers today, 67 % use the Internet (TIA, 2004). Not only are more consumers using Web technology to shop for travel services, corporations are learning that the ease and low cost of conducting online travel transactions can be beneficial to the bottom line. In addition, new B2B online travel management outsourcing offered by The Big Three is gaining popularity. A 2004 study conducted for the Association of Corporate Travel Executives (ACTE), and GetThere and Travelocity Business, found the following:
• More than 70 % of financial executives feel their companies have an accurate way of tracking travel expenditures, compared to 56 % in September 2003.
• Nearly 70 % of