Advances in Economics and Business Vol. 3(10), pp. 436 - 446
DOI: 10.13189/aeb.2015.031003
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The Impact of E-commerce on Travel Agencies Profitability in Respect of Size: Evidence from the U.S


Malik R. Elhaj 1,*, Mohammed Z. Barakeh 2
1 Department of Accounting & Finance, Prince Mohammad Bin Fahd University (PMU), Kingdom of Saudi Arabia
2 Barakeh Travel Inc., USA

ABSTRACT

The problem addressed in the proposed study was that the impact of E-commerce on traditional travel agencies has not been thoroughly examined, indicating that the disintermediation will continue to limit the success of these agencies. The current study consisted of an examination the impact of E-commerce in the profitability and the sustainability of travel agencies in respect of size, to determine if these perceptions vary as a function of the size of the travel agency. In addition, quantitative survey data was used to achieve the purposes of this study. The participants in this study were U.S. citizen's traditional travel agent who experiences the E-commerce impact. The results indicated that travel agents from larger agencies tended to believe that the effect of E-commerce on travel agencies was smaller than did travel agents from smaller agencies. The second conclusion from this study was that the participants felt confident that the need travel agents would remain in the coming years. In addition, we presented the current strategies used by the travel agencies and our suggestions to remain competitive.

KEYWORDS
E-commerce, Size, Travel Agent, Traditional, Brick-and-motor, Profitability

Cite this paper
Malik R. Elhaj , Mohammed Z. Barakeh . "The Impact of E-commerce on Travel Agencies Profitability in Respect of Size: Evidence from the U.S." Advances in Economics and Business 3.10 (2015) 436 - 446. doi: 10.13189/aeb.2015.031003.