What Is Travel Disintermediation?

Travel Disintermediation: How to Travel with a Travel Agent, Free Essays and Term Paper Examples, Disintermediation in Online Business, Disintermediation in Retail and more about what is travel disintermediation.. Get more data about what is travel disintermediation.

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Travel Disintermediation: How to Travel with a Travel Agent

Self-booking tools can get you there but they can't know what you want to do because of their automated responses. Humans get the human experience more than machines because they put in data and give you answers. You can find local flavors through the internet, but there is a reason that people still use travel agents.

Travel agents can do more than just tell you what to expect in your trip, they can also help you find out what you want. It is more than just a simple to do list. Needing an idea for something to do?

You could either text your agent with your preferences, tastes, and what you want from your trip, or you could use a search engine like GOOGLE to find something while you are abroad. The focus is shifting from the time before the trip to the one during the trip due to the mobility available through mobile devices. Are travel agents still relevant?

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Disintermediation in Online Business

Disintermediation allows hotels to deal with their guests directly. The process allows hotels to develop better relationships with customers even though they may have to pay more upfront. They can reduce their costs by managing the middleman.

Customers like convenience and often look at travel packages and online hotel booking sites. If hotels were to incorporate vacation ideas in with their hotel bookings, customers could take advantage of all-in-one deals that they could take advantage of. Hotels should focus on building their presence on the search engine results page.

Increasing visibility to potential online customers, as well as empowering those using mobile devices, is a sure way of bringing in more business. The impact of disintermediation the industry will grow as online businesses grow. It can provide opportunities for growth and revenue increase for those who know how to incorporate it into their business model.

Disintermediation in Retail

The middleman is cut out in disintermediation. It may allow a consumer to buy directly from a wholesaler rather than through a retailer, or it may allow a business to order directly from a manufacturer rather than from a distributor. It is seen when an investor can buy stock directly from the market rather than through a broker.

New intermediaries such as Amazon, eBay, and Etsy have become electronic middlemen. Third party sellers of apps include Apple's App Store and the Google Play store. The rise of online agents may have been inevitable.

Few producers can devote the time and resources to develop a retail platform that could compete with those of Amazon, eBay, or Etsy, and fewer still have the means to develop a professional marketing plan to promote their products. Some products have been able to skip the middleman. Apple, HP, and others are some of the most well-known electronics manufacturers.

Department stores used to sell cosmetics brands directly to consumers. Many small businesses thrive by promoting their wares on their websites and on social media. The middleman can be useful in the process of getting a product from the production line to the consumer.

A producer has a network of wholesalers who ship their products. Sales representatives score orders for retailers. A retail store needs to showcase the products, get the customers through the doors, and make the sales.

The Cost of Online Marketing

Huge resources are required to accommodate individual consumers. The supply chain middlemen were the ones who sold the producers. The producer would have to procure those customers.

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The Blockchain: A New Look at the Changing Landscape

Guests are accommodated but the property is not owned by the company. The company owns no fleet of automobiles. There are over a thousand movies on the internet, but no movie theater.

The public ledger of cryptocurrencies transactions is called the "blockchain" Food delivery options are threatening traditional dine-in experiences as restaurants are on their guard. Families used to go to their favorite restaurants to eat.

Families are opting to have a meal at home with no waiting time or tips, instead of going out to eat. Companies like Hello Fresh and Blue Apron are cutting out grocery store trips and visiting local restaurants. When a meal can be recreated at home at a fraction of the cost and without having to go to a grocery store, who needs to stop in at a pricey steak house?

Barriers to entry are being broken down and the ability to compete freely is becoming more of an option. Disintermediation is set to disrupt a lot of industries. Companies must adapt to survive.

Disintermediation and Re-Intermediation in the Travel Industry

Disintermediation and reintermediation are two main types of events that can occur in e-business. Both events can change the nature of the transaction process. Supply chain management is affected by disintermediation and reintermediation in the industry.

Interruption and re-enactment add new elements to the supply chain. Both events are important for travel agencies and tour operators. Travel agencies are independent and serve the interest of their customers.

Their main goal is to meet customer requirements and the interest of the agency, not the interest of the organisation that is distributing their products. There are several critical factors which need to be considered when adding new elements to the distribution channel, such as: strategic uncertainty, short term expectation and long term result, conversation process and individual resistance. Disintermediation and re-intermediation can be seen as positive and negative depending on the industry the intermediaries are in.

The Role of MSPs in the Re-mediation Problem

The paper shows the significance of the MSPs in their contributions to the re-mediation of the two important intermediaries in the travel industry supply chain. The dangers of disintermediation are caused by the developments in technology, networking and communication channels, the accessibility of stakeholders to the internet, and the direct reach of suppliers to consumers. The role of GDSs and TAs is in decline due to the successful launch, deployment and adoption of MSPs.

The interviews show that the channels used by the TAs for searching and booking travel content online are MSPs. The main booking platform for theTAs is the MSP, while the secondary platform is a different one. The criteria to have access to a dedicated GDS are difficult for small and medium-sized TAs, so they prefer the MSP as their main booking platform.

It is difficult forTAs to get their ticketing authority, licensing and accreditation from suppliers. The non-IATATAs were offered a re-mediation opportunity by the adoption of which they could either lower or eliminate the risks of disintermediation. The future for IATA and non-IATATAs seems promising with their access to managed service providers which would lower their cost of doing business and maximize their earnings.