Internet ruduce their cost than traditional methods and channels


Rob (2000) has proposed that the
Internet is originated from the military network ARPANet, which was introduced
by the US Department of Defense in 1969.Since 1990, the requirement the obtain
the supporting service form official to join the Internet, there is a large
number of computer users from private firms and individuals has been growing quickly.
Poon (2000) forecasted that it will have 1 billion Internet users in 2005. On
the other hand, Poon (2001) stated that it is highly competitive in traditional
travel agency, so they will seek the new market through the online like
internet or E-commerce tools. So the direct sales by travel suppliers will grow
from 22 per cent in 1997 to 30 per cent in 2002. Poon (2001) argues that the
suppliers are try reduce to pay the commition to the travel agency since the
internet provide the independence that they can reduce the operation cost. When
the internet is more gradually popular, the tourist will direct to purchase
from the suppliers which is bypassing the travel agency. So, Buhalis (1998)
referred that the travel agency is changing is intermediary role.

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Internet and tourism is rely on each other? since the service
distribution of a travel agency is around the notion of intangibility and
perishability. It is important that passing the manner with information is
communicated. The internet as a role by virtue of its instantaneousness,
increasing availability/accessibility, and it is possible to provide the
equivalent information to make a travel agency to ruduce their cost than
traditional methods and channels (O’Connor and Frew, 2000). According to Rob
(2000), the internet is defined as a global computer network, since it links
millions of users all around the world. Wai (2001) mentioned that it is also a
huge repository of information. More than that, the travel agency marketing and
distribution tool ensure the suppliers have sufficient communicate with
customers and facilitating equal competition (Williams and Palmer, 1999).