Tourism's Economic Impact and Future

CHAPTER 1: INTRODUCTION

Overview of the research:

Over the past decade, travelling and tourisms industry has developed into a dynamic. According to Statista (2020), in 2019, global travels and tourism contributed approximately $2.9 trillion to global economy. The projection by Reed (2020) highlights the growth in travelling and tourism spending indicating surpassing global economy by year 2030. Furthermore, looking to the next decade, 100 million new jobs could be created in the travel and tourism sector by 2028 – 64.5 million of these will be in the Asia Pacific region, with 35 million in China and 10 million in India (ICAO, 2018). In the review of the literature by Sofronov (2018), the travel and tourism industry is an industry larger than the global economic sector, in 2017, the global Gross Domestic Product (GDP) direct contribution by the tourism industry was estimated at $ 8.8 trillion in 2018, more than 10% of the global GDP. In addition, he adds that in the same year, there were 1.322 billion international tourists worldwide. In the past eight years, the growth of travel and tourism industry has outpaced the global economic growth with projection showing a growth by 3.5% annually over the next 20 years. According to Organisation for Economic Co-operation and Development (OECD, 2010), governments should adopt policies and adapt the new traits which will enable T&T to be in the international tourism market. One of these innovations are Information Communication and Technology (ICT) developments in the distribution of tourism products, ICT enabled rapid developments in the area of communication and distribution of goods. Tourism companies need to adapt to these new changes as competition has increased. Therefore, they need to implement ICT systems to be able to maintain and raise their revenue. That is why e-tourism is on the rise, which is mainly the activation of systems allowing consumers to book holidays without travelling to a local travel agent but instead doing it from the comfort of their homes or anywhere as long as they have access to the Internet. E-tourism or online tourism according to Buhalis (2008) is the future of the tourism industry. As such, online reservation systems were created, namely, Amadeus, Sabre, Galileo, and others among. For instance, the hotelier sector makes greatly use of online ICT systems to arrange their bookings and make use of Global Distribution Systems (GDSs) also known as, online reservation systems (Buhalis, 2008).

Background history

In the analysis by Gwenda (2003), travel agencies use agency systems in order to proceed bookings, in their management as well as for accountancy. Gwenda (2003) explains that leisure travel agents use viewdata, which is a system over 20 years old, whereas in business travel agencies, GDSs are used as they have a vast array of flights, hotels, car for hire and a number of other services; the four most commonly used GDSs worldwide are Amadeus, Galileo, Sabre and Worldspan. Before the 1980s, travel agencies used to write down on paper, although a ‘back office system’ existed for accountings but it was not extensively used as travel agents assumed, they could just write down their accountings (Gwenda, 2003). With the improvements in ICT, starting 1990s, the ‘back office system’ became ‘complete management systems’ which meant that the accounting was performed in the back office, whilst the front office, who are the sales personals were managing bookings electronically, where client’s details were saved on their systems (Gwenda, 2003). Also, Gwenda (2003) sums up that, with the developments of ICT, GDSs were on the rise, including Amadeus, where airline fares were distributed electronically to travel agents; with time, hotels, cars, ferries and railway services were also added into GDSs.. GDSs are now available for use with the access to the Internet, which is a facilitator but also economically beneficial for travel agents. In order to understand how distribution of tourism goods and services are provided through GDSs such as Amadeus, it is relevant to know the impact of early GDSs with the rise of the Internet and airlines as they were the first ones to use CRSs and GDSs.. Likewise, in their textbook, Budd and Ison (2017) specify that, during 1980s, travel agents demanded access to larger number of CRSs, which is why CRSs such as, Galileo, Amadeus and Worldspan were created. Amadeus was developed in 1987, later, in 1990s, the advancement in ICT, mainly the development of the Internet, let Amadeus into being a GDS, because then more travel related products could be in service of consumers for instance, accommodation demands for hotels or car rental services. Amadeus pride itself as facilitating transaction of information and payment for travel purposes for more than 30 years (Amadeus.com, 2020). In addition, it has an extensive team of workforce of more than 17 000 individuals from 190 countries who can speak over 60 different languages. According to Statista (2020), the company is the largest GDS provider globally holding 44% of the market share in 2019. Therefore, GDSs could offer more facilities for individuals as well as businesses rather than only an airline related information through CRSs (Budd and Ison, 2017). Booking.com is an online travelling agency (OTA), where bookings can be managed by consumers such as, reserving a holiday package which is a bundle of different stages of a holiday, being the flight, hotel reservation and car rental. The agency sees more than 1.5 million room reservations made via booking.com in 228 countries daily (Booking.com, 2020). In order to remain sustainable, Booking.com has adjusted to changing tourism and travel industry by recognising influence of technology driven products, functions, and services (Vidal, 2019).

Founded in 1996, in Amsterdam, Netherlands, Booking.com has grown from a small business to one of the leading companies in the world. In 2017, the agency makes 65.5% of OTAs the market share (Statista, 2020). The platform is available in both as mobile applications and website and is available in more than 40 languages (Booking.com, 2020). According to Molchanova (2014), Booking.com is the recommended and widely used OTA for holidays in Europe, whereas Agoda.ru has dominated the Asian travelling market. In the United Stated of America (USA), Worldspan is widely used.

Context

The focus of this research is on the evolution of online reservation systems and the developments that has been made in Information Communication Technologies (ICT) for the purposes of enhancing the Travel and Tourism organisations. With the emergence of Global Distribution Systems and Online Travel Agencies, booking processes have been enabled; these have been implemented with the facilitation of the Internet access for consumers, where they can purchase the tourism services, and products. According to Page and Connell (2014), online reservation has been supported by the ICT facilities, as such, traditional reservation systems have shifted to technology driven methods, thus consumers of tourism products do not need to travel to their local agencies but they can manage and arrange their bookings online. Additionally, booking online permitted dynamicity in the travel and tourism industry, by its nature it is believed to be a facilitator in communicational platforms between tourism providers and its consumers, for instance, consumers can find a range of information online instantaneously; thus booking online helped in search for information and in the provision of information (Page and Connell, 2014). Before travelling, people have increasingly relied on social media and internet search engines for information on the potential places to visit, and tour for maximum experiences and extending their worldview. Jansson (2018) illustrated that social media and internet search engines have changed from platforms influencing decision-making on travelling plans to avenues where travellers can connect with supporting personnel tour guides, locals, and hospitality providers. Travellers engage with social media sites to make informed decision regarding planned travels, search for trips and destination, and share personal experiences on such factors as particular travelling agents, airlines, restaurants, cultures, and regulations within a country. The deep metamorphosis in the travel and tour industry has seen an exponential rise in online-based products such as bookings structured to go beyond improving the experiences of the travellers but transforming the travelling systems and culture. In addition to enriching travel experiences through improvement of identification and selection of destinations aligned with their respective interests, the internet-based technology has simplified and enhanced travel-planning process. According to Fotis et al. (2012) people visit social media platforms such as Facebook, Instagram, Pinterest, and Twitter in attempt to making informed decision about destination to visit, based on experiences and reviews of others, and searching for hospitality and other services providers that include accommodation providers, available hotels, lodging, event planning, and transportation within particular country. Varkaris and Neuhofer (2017) explained that travellers visit an average of 27 websites and social media before deciding on a trip. TripAdvisor reported average of 50 million visitors monthly to its websites seeking travelling information. Another major influence of technology on travel and tourism has been ability for the travels to review and reserve accommodation or place restaurant and travelling plans reservation. Ráthonyi et al. (2016) highlighted that individuals can plan by choosing destination, scheduling activities once there, and even expenditure. The prevalence of use of internet to plan travelling arrangement and making informed decision saw 74% of travellers globally using at least one form of internet based platform in 2019, while on 13% relying on the travel agencies (Vidal, 2020). In the same perspective, the business entities in the industry have followed suit innovating by adopting internet-based technology and confirming with the trend. The deep metamorphosis in the travel and tour industry has seen an exponential rise in online-based products such as bookings structured to go beyond improving the experiences of the travellers but transforming the travelling systems and culture. In addition to enriching travelling experiences through improvement of identification and selection of destinations aligned with their respective interests, the internet-based technology has simplified and enhanced travelling planning process.

Rationale of study:

It is significant to acknowledge that with the implementation of ICTs such as the Internet, social media platforms, and Global Distribution Systems (GDS), the travel and tourism industry shifted from a traditional-based-approach to an online one. ICT’s have become an important companion for the travel and tourism sector, and other businesses and for communication. Understanding how ICT’s, especially, GDSs and Online Travel Agencies (OTA) will enable every individual and the wider community to comprehend its impact on reservation systems. Furthermore, it is an aspect which is growing, with the recent Covid-19 pandemic, businesses have further emphasised on e-business and nurtured their online services. It is a phenomenon that every other product or service is purchased online, therefore, everyone needs to be comfortable and able to purchase online. Since the beginning of the Internet, businesses have made use of ICT platforms for the enhancement of their customer services as well as to have a plateau to promote their growth. It is of interest to grasp the fact that individuals whether consumers or businesses in the tourism and travel organisations have become increased relied on online platforms for information, purchasing and recently systems or service purchase. Hence, knowledge on the shift from traditional travelling to technology driven will be undertaken, to appreciate people’s satisfaction levels of online providers and online services.

Research problems

The rise of technology that include smartphones, social media, and internet, has given travellers a platform to search for information before travelling on destination, the supporting infrastructure such as accommodation, food, cultural and religious beliefs held, and restrictions and government travelling policies. Ideally, the age of information has transformed travelling and tourism industry by injecting the aspect of knowing in advance such determinants as weather patterns, cultures, and expected content. Nowadays, tourists are seeking to gain more experiences and more adventurous, a shift from homogenised experiences. Similarly, the rise of experimental travelling where the traveller seeks to connect and experience the lifestyle, cultural views, values, and beliefs, history, and people within a particular place or a country has contributed heightened travellers demands (experience), growth of tour guides. However, rising travelling whether touring demanded supporting infrastructure ranging from transportations, hospitality, accommodation facilities, and guide (tour guide). Hence, the question of whether travellers and travelling agencies and businesses have adopted supporting infrastructure and influence

Research aim

The aim of the research is to explore the travel and tourism online channels, by the application of online distribution and reservation systems.

Research Objectives

To critically analyse literature and concepts informing adoption of technology in travelling and tourism industry driven by business innovation and distribution techniques related services and customer relations

To identify the travel and tourism sector’s online distribution channels aimed at understanding their position in the travel and tourism management as an interactive platform between suppliers and consumers

To establish why online reservation systems and platforms are significant in the enhancement of delivering online services

To collect and analyse primary data on the use of electronic reservation systems by individuals, whether it be a company or a person

To examine if individuals have preferences whilst using electronic distribution and reservation systems by summarising influence of electronic booking processes, and recommend which limitations could be further investigated in future researches

Research questions

How are the online travelling and tourism channels being developed, with the use of online distribution platforms and systems?

Are the travel and tourism companies such as, the Hotelier sector, or the small and medium-sized companies’ beneficiaries of electronic reservations?

What features are important in the distribution of services in an online platform, to attract clients leading to generation of sales and revenue in travel related companies?

CHAPTER 2: LITERATURE REVIEW

Chapter introduction

Acceptance of technology in such industries as travelling and tourism is subject to the beneficial factors relative to the cost of purchasing and ease of use. Moreover, is bounded by the conveniences such booking and accessing reliable information from various sources such as reviewing agents and other travellers who have visited the said destination. Primarily, technology has had revolutionary influence on the business performance, employees’ productivity, product distribution, marketing, interpersonal interaction, and consumer satisfaction. According to Okumus (2013), information technology (IT) has morphed into a core element for hospitality organizations in enhancing strategic competiveness and organizational performance. This literature review chapter gives an overview of the key concepts and theories related to GDSs and online reservation systems (ORSs) within the scope of travelling and tourism industry. Moreover, it outlines and discusses critically the findings and argument held by previous research and studies on technology acceptance, GDSs and ORSs, influence of technological advancement on the travelling and tourism industry, and online distribution channels within the industry. In doing so, it highlights the missing gap in literature as far as online distribution and research channels in travelling and tourism industry is concerned.

Theories and Concept

Technology Acceptance Model

The technology acceptance model has, over the years, used in predicting and modelling the acceptance and utilization of IT. Marangunić and Granić (2015) described the model as a framework outlining ways in which users come to accepts and integrating a new piece of technology in their activities. Developed in 1980 on concern that employees were not using available technology effectively and framed in a manner aimed at increasing IT use. Principally, the model is informed by the factors driving use and one’s future intentions of using a given technology. Originally, the model adopted the theory of reasoned action (TRA) capturing the behavioural and social-psychological concepts on perception towards new ways of doing things such as online shopping, voting, and e-banking (Mishra et al., 2014). The conceptualisation of acceptance is based on behavioural intention to use (BI) and end-user’s satisfaction with the technology. Hess et al. (2014) contended that one’s attitude determined the perceived ease of use (PEOU) and perceived usefulness (PU) influences the BI. Vankatesh and Davis expanded the TAM model and consistent with TRA to incorporate cognitive instrumental process (job relevance and output quality) and social influence (subjective norms and image). Based on the figure 2.1, perceived usefulness of a given technology is determined by such variables as relevance, image, subjective norms, output quality, and result demonstrability as well as experience and voluntariness.

According to Holden and Karsh (2010), perceived usefulness encompasses beliefs held by a user towards a technology on extent to which it can improve one’s performance and efficiency. Surendran (2012) and Turner et al. (2010) illustrated that it is a perception held by a system user or potential users on whether a system is useful in meeting their respective needs and what they want to do. Whereas, perceived ease of use outline a degree of comfort a user holds in a manner that using a given technology is would be free of effort. It takes into account the barriers of optimising the technology is easy. For instance, a complicated system induces a negative attitude towards it and vice versa. A study re-examining PU and PEOU in online booking conducted by Kucukusta et al. (2015) revealed significant correlation of using online booking to age and technology knowhow. The findings found that young people and mostly technological ardent individuals tend to use online booking while older individuals were more likely to continue favouring traditional personal services. Moreover, in informing the intention of use of online booking services, PU was found to be more influential compared to ease of use. Tourisms Web acceptance model (T-WAM) was coined to reflect acceptance of web services in the tourism industry that include IT designed for e-tourism. Ideally, the framework explains BI and intention of using online products. A study conducted by Sahli and Legohérel (2016) found that T-WAM, an extension of the TAM model was more robust compared to such frameworks as flow theory, theory of planned behaviour (TPB), decomposed theory of planned behaviour (decomposed TPB), and TAM in relation to behavioural intention of acceptance and use of IT in e-tourism. In context of flow theory that argues of putting a person in a state where s/he is performing an activity whilst having energised focus and hence fully involved, one seeks to optimise experience while on vacation or travelling. According to Kim and Thapa (2018), the flow experiences occurs when a traveller in so engaged resulting in travellers feeling excited and healthy with the activities. Nusair and Parsa (2011) explained that in the context of online travel commerce, flow theory integrate the complexity of the online reservation and distribution systems evolving from initially airline tickets, care rentals and accommodations to currently incorporating experimental and utilitarian practices. They contended that the new approaches have had an attitude effects on the users towards using the services such as booking and travelling intention. Online channels as offering utilitarian benefits by adopting a goal-oriented, rational-behaviour of consumer, and deliberate characterised by such qualities as time-sharing, enhancing probability of findings superior alternatives, reducing risks, convenience, saving costs, and reliability (Nusair, and Parsa, 2011; Beldona et al., 2005; Bilgihan et al., 2015; Gao, and Bai, 2014). As such, as pointed by Drosos et al. (2017), business entities running online platforms need to take into account the availability of intuitive and information in the interfaces facilitating the users for ease access and meeting their needs satisfactorily. In term of experimental shopping orientations guided by amusement, sensory stimulation, and satisfying experiences, Cheng & Shu (2012) and Lee et al. (2010) highlighted that online platforms need to meet such qualities as playfulness, pleasure, heightened involvement, escapism, perceived freedom, and fulfilment for consumers to shift from traditional direct booking, purchasing, and reviews.

Besbes et al. (2016) investigate the influence of cultural background on booking behaviours and practices by focusing on Tunisia (Arabic Culture) and China (Chinese culture) found that the framework for technology acceptance for tourism online booking held despite cultural differences. The findings indicated that subjective norms, which is highly rooted to Tunisian way of life, has a huge influence on the behavioural and cultural norms in using online booking and reservation platforms. In context of both cultures, although bears significant difference ranging from views, beliefs, and traditions, the two cognitive constructs PEOU and PU hold a significant influence on using online reservation systems (Besbes et al., 2016). In tourism, according to Usoro et al. (2010), the emergence of e-commercialisation in the industry has been hindered by lack of full understanding motivating factors guided by why and what of using the applications. A study conducted by Singh and Srivastava (2019) exploring applicability of PEOU and PU to explain uses of social media platforms for travelling purposes a case study of Indian leisure travellers found that technology acceptances is a factor of perception held by travellers guided by ease of use, usefulness, trust,, and social capital as well as disposition readiness.

Technology adoption in travelling and touring sector:

Like any other industry, technological advancement has revolutionised ways travellers travel and tourists tour and subsequently the experience. With the emergence of new technologies ranging from choosing vacationing and travelling destination, scheduling travelling and activities, to activities to undertake once in there, tourism travelling and tourism industry promises more interactive experience. The findings by Radulović (2013) indicate 74% of travellers plan or research for information about their destination on the internet beforehand while only 13% purely depended on travelling agencies to prepare them. According to Thakran and Verma (2013), this paradigm shift has been largely driven by millennials who are ardent with technology and into travelling. The combination of the two interests has influenced the rise and advanced the trend of using social media and other online platform in making travelling plans and subsequent paying. Travel technology incorporating the ICT in tourism, travel, and hospitality industry in the form of flight tracking and using search engines, social media platforms, and online travelling agencies in planning trips. Primarily, Longhi (2009) and Iyer et al., (2015) pointed that use of technology in the industry can be summed up within e-tourism context as digitalisation of the industry that include supporting infrastructure and consumer centric systems interacting with consumers dynamically. Condratov (2013) contended that interoperability, constant networking, and personalisation of activities and processes drove push for technology acceptance in the industry. As pointed Werthner et al. (2015) this gave rise to intermediaries among core players in the industry such as suppliers, airlines, hoteliers, accommodation agency, and tour guides under global distribution systems umbrella. Thakran and Verma (2013) clarified that online travel distributions are provided by GDSs and OTAs, including others. Emmanuel et al. (2018) further explained that the GDSs encompasses a computerised systems connecting various players in the industry using real-time inventory such as available airline tickets, hotels rooms, and car rentals to service providers. In service providers’ perspective, Lacher and Nepal (2013) argued that organisations are capable of tracking the travellers and then add or reduce the supporting services such room services and availability of rental car, hence, in long run reducing operational cost. In Customer Relationship management (CRM) in travelling industry, Sharpley (2018) directs that the demographic of a person is a determinant element in comprehending the reasons for this person being prone to adopt ICTs and vis-versa. Additionally, Rasoolimanesh et al. (2019), highlight that ICT enables platforms for consumer experience enhancement, where professionals in the management of a tourism business personalised services. Buhalis (2003) argued that Customer Relationship Management (CRM) in travelling and tourism industry is designed for interaction between service providers and customer through customer care, acquisition, communication, PR, and data management. In hindsight, the CRM in tourism and travel industry enables communicational plateau as well as to generate information to meet consumer needs. According to Gretzel and Fesenmaier (2009), ICT platforms allow niche market creation where consumer’s specific needs and preference can be modelled. These changes that include CRM adoption are the developments of new technologies, such as, advancement in devices, gadgets as well as social media platforms; for example, airline passengers can check-in online before arrival and they can also present a digital copy of their boarding-card at final check-in for flights. Jansson (2018) illustrated that social media and internet search engines have changed from platforms influencing decision-making on travelling plans to avenues where travellers can connect with supporting personnel tour guides, locals, and hospitality providers. Travellers engage with social media sites to make informed decision regarding planned travels, search for trips and destination, and share personal experiences on such factors as particular travelling agents, airlines, restaurants, cultures, and regulations within a country. The changes in the travelling and tourism industry has seen significant changes associated to technological advancement such as use of social media, access to reliable information and data, use of ICT to streamline operations by business entities in the industry, and heightening government regulations. According to Aldebert et al. (2011) and Berné et al. (2015), tourism organisations have increasing acknowledge applicability of ICTs such as computerised booking processes and coordinated distribution and monitoring of supply to meet consumer demands during low and high periods. Petrovic, et al. (2017) argued that what identifies OTAs is the fact that there is no need for face-to-face or over the phone interaction; thus, there is no need for intermediation as exchange of information has become instantaneous with high reliability being available anytime of the day throughout the year.

CHAPTER 3: METHODOLOGY

Research method

Mixed research

A research approach describe procedural steps for collecting and analysing data in a manner that answers research questions and achieve outlined objectives. As pointed by Arghode (2012), several methods have been forward but the two prominent are qualitative and qualitative methods. In a qualitative research, the data collected the form of describing to have a deeper understanding of the underlying factors linking the research variables. Thomas and Magilvy (2011) illustrate that qualitative directions is followed when a researcher is seeking to develop an insight understanding of the building blocks of a given research through investigation, interpretation, and processing key variables. Hence, uncovering deeper and hidden meaning of such variables why things appear the way they seem. Building the assertion elicited by Silverman (2016) arguing qualitative research is mostly associable to socially constructed nature of reality such as human behaviour, experiences, emotions, feelings, and driving factors. In this case, travellers behaviour of using a given platform or choosing particular destination as well as factors eliciting experiences is perceived as a socially and cultural construed and constructed factors. From travellers’ perspective, satisfaction with a booking platform that in turn lead to using it again in future or recommending to family members and close friends in a matter of personal beliefs, values, views, and expectation informed by social and cultural constructs. As pointed by Susilo and Cats (2014), an individual satisfaction is hence determined by individual experiences and views. Therefore, understanding the variables pushing one to make hotel reservation or airline ticket requires delving into individual beliefs, values, and point of view. Same applies to understanding factors driving services providers to shift to online reservation and booking systems. Therefore, applicability of qualitative research methods. Quantitative research is associable to numerical form depicting a research findings statistically. For instance, a relationship between travellers’ experiences and use of GDSs can be presented statistically capturing the number of travellers’ experience in using online platform compared to traditional approaches. Park, J. & Park, M. (2016) and Bryman (2017) explained that quantitative research is useful where the need to quantify a problem by generating statistical variables the transforming into useful information to answer research problem. A combination of qualitative and quantitative research methods under a mixed research approach takes into account the statistically aspects while delving to develop deeper understanding of adoption and position of online distribution channels in tourism and travelling industry. The qualitative part captures the underlying factors as well as ways in which platforms allowing travellers to booking and schedule travelling plans in advance has had impact on the largely travelling and tourism industry. In addition to exploring the travellers views, opinions, and driving factors on adopting and relying on internet based system in planning and decision making on travelling plans. Whereas, the quantitative research encompasses the measurable elements such as number of people using internet platform for instance GDSs in making informed decision on travelling in addition to number of business entities who have integrated the systems (OTA and GDS) –notably, qualitative outlines the reasons behind adopting the systems. Hence, mixed research methods

Data collection

In any study, data forms a central role in answering the stipulated questions and achieving research aim and objectives. Structuring and following inappropriate data collection approach ultimately result in wrong and misinformed findings and conclusion while a adopting an method that align perfectly with the aim and objectives resulting in satisfactory findings and suitable to whole research paradigm. Based on data source, a research is classified as either primary or secondary. Primary research involves collecting data directly from the source using such tools as interview, questionnaire, observation, and experimental while secondary research involves gathering data from existing sources such as journals, books, media reports, and documentations. This research collected data from primary sources aimed at deeper understanding of online distribution channels (GDSs and OTAs) and underlying variables. In addition to exploring literature on technology adoption and online distribution channels in the larger travel and tourism industry, the primary source is used. A semi-structured questionnaire was distributed via online survey platforms to capture the use of GDSs and OTAs. The questionnaire questions cover the measurable and underlying factors of adoption of online distribution systems that include use of GDSs and OTA by travellers in booking and scheduling their travelling plans. The travellers and tourists were required to fill the open- and closed-ended questionnaire containing use of booking and reservations platforms while travelling as well as capturing respective experiences and satisfaction levels with the technology. Questionnaire population targets was travellers who had been on holiday to capture travelling and booking experiences, stages of reservation process, and views of internet based GDS and OTA in addition to capturing reasons for use and frequency of use. Participants were invited via social media platforms with requirement set to travellers who had used the GDSs and/or OTA. In addition to questionnaire, interview was conducted built around understanding underlying factors of using and adoption of online reservation and booking systems. The participants of this phase was primarily services providers (booking.com and Amadeus) geared to give their perspective on the use and adoption of GDSs and OTAs. The focus of the interview was tourism business entities (booking.com and Amadeus) on influence, adoption, and management of internet-based travelling systems that include booking platforms and ways of reach to travellers and connecting with other businesses entities within the industry. Participant interviewed over the phone and data recorded using tape recorder to be transcribed later and analysied using thematic analysis tool.

Ethical consideration

In a research, ethical consideration ensures that researchers adhere to principles and standards taking into consideration the views, privacy, and values of a society in general and individuals directly involved in the research (Stevens 2013, and Connelly, 2014). In this case, the study sought to uphold participants’ confidentiality and privacy. Before filling the questionnaire or involved in the interview, all potential participants were required to sign informed consent letter outlining the purpose, use, and handling of the research findings. Moreover, as a requirement, the participants must have been aged above 18 years, at the time of data collection in order participate in data collection process (online questionnaire and interview). Additionally, this study followed the university guideline, and British and EU policies on privacy and data protection such as not sharing and using personal data without consent. Lastly, in line with academic integrity, this study references and cited accordingly data and information used during researching and within final report.

CHAPTER 4: FINDINGS AND RESULTS

4.1. Chapter introduction

The data collection was a two-phased approach. Phase was involved inviting participants to fill an online survey questions. The invitation was via social media platforms and framed to attract participants who had travelled and used online booking services recently, within the past 5 years. The respondent to the invitation were directed to the online survey platform were the questions were hosted. In the end, 61 individuals filled and completed the survey.

Findings

Frequency of Travel over the last 5 years

From the table above, most of the respondents (30) indicated travelling at least once a month whilst only four (6.56% of the participants) saying to have once over the past 5-years. The participants who travelled at least once in every 3-month period were 42 (approximately 69% of the respondents). Hence, arguably, major participants had sufficient knowledge on the industry.

Planning for Tour and Travelling

Majority of the respondents (95.08%) indicated making adequate planning beforehand while only three (4.92%) saying not having prepared before travelling. The questions further asked on the sources of information. From the figure 4.1, major of the respondents (63.93%) indicated internet that include social media and blogs as the source of their information on the travel and destination. Those who listed travelling agencies as source were 23 respondents while those who said friends, family members, and acquaintances were 21, 17, and 11 respectively.

On being asked whether they found the information reliable, the 76.6% said yes whereas 21.3% saying no. Although a small segment indicated being not sure on the reliable of the information.

Depending on ICT

The participants’ reliance on the ICT systems and platform was apparent. Only two (3.28%) participants saying not finding technology useful while 77.87% indicated always using technology in one way or another while travelling. However, 21.56% of the participant finding it not that useful.

Impact of ICT on Tourism and Travel Industry

All the respondents acknowledged the influence of the technology on the travel and tourism industry, although differed on the level of impact. From the figure 4.2, 78.68% of the participants held that ICT has significantly influenced the tourism and travel industry. Whereas nine participants held average influence of ICT to the industry.

Use of Online Platforms in making travelling plans

On the use of platform (s), all the participants except for one stated having used online platforms in making travelling plans. 41 participants responded by stating using the technology every time they travel for planning while 22 individuals highlighted using the online platforms often in planning that include booking and reserving accommodation, cars, and activities. Only one participant said never using the technology while nine saying not using the technology as much.

Going by the argument in the literature, Quality of content and information available on such platforms as booking and reservation, purchasing, and accommodation directly and positively influences users’ satisfaction (Bandura, 2014). However, some studies contented that users’ satisfactions is not significantly influenced by intention of use or quality of online platforms. According to social cognitive theory, consumers are subject to self-reactive, judgmental process, and self-monitoring influence (Hernández et al., 2010). For instance, previous experiences by a close friend may overwhelm self-monitoring spending behaviour of a user using a platform despite quality being low.

Using booking.com in making room reservation

Use online reservation technology was also highlighted by the questionnaire. A significantly high number of participants (73.77%) stated using the booking.com before in making reservation while travelling. Whereas 13 (21.31%) stating not using it before and 3 (4.92%) never heard of it before. A study conducted by Werthner and Klein (2010) on influence on GDSs on the travelling and tourism industry found it has reshaped streamlining the industry by connecting and coordinating the suppliers, travellers, and services providers as well as enhancing efficiency and timely processing on data and information.

Satisfaction levels of using booking platform, booking.com

From participants’ response, the satisfaction level of the majority was either high or very good. From figure 4.4, one can argue that participants were satisfied with the services provided by the platform, Booking.com. However, nine individuals stated their satisfaction level of using the platform was average while four indicated being low. Building from the literature, one can argue that use of such technologies as online reservation and booking systems is constructs of psychological (flow and environmental psychology), marketing (consumer behaviour), and information systems (PEOU and PU) factors (Wulandari, 2017). Largely, cognitive and emotions responses of visiting a platform and subsequently making a reservation for an accommodation can influence users’ intention of using the system again or likelihood of making unplanned booking (Molchanova, 2014; Thakran, and Verma, 2013.). Contrarily, the platform can have opposite effects caused by first time users developing negative attitude towards entire online systems. This is evident by some participants reporting high satisfaction with the platform while others saying they were disappointed after using it.

Recommending the Platform to other travellers

The response on whether the participant recommended or would recommend the platform, Booking.com, and, on the extension, OTA services to other travellers indicate satisfaction and trust on the system and technology. The responses, as shown in figure 4.5, showed majority of the participants saying yes to recommending the platform and system to others while only six respondents (9.84%) saying no, they would not recommend any to use it.

Building from the arguments posted by Thakran and Verma (2013), by linking the services across the sectors such as car rentals, accommodation reservation, and air tickets, the system maintained a database that tracks inventory that is beneficial for both the travellers and services providers especially last minute inventory does not only enhance users experiences, it also bring the consumers together. Fountoulaki et al. (2015) argued that ICT contributing in the change in the travel sector include Computerised Reservation Systems CRS, GDSs, and social media have collectively led to consolidation of the tourism industry by linking the travellers details in the airline reservations systems such as the airline they are on and the kind on itinerary, and the travelling agents. As hotels aim to maximise direct bookings as well as traveller seeking for conveniences, they reach out to the travelling agents who in return, using interconnectivity of the GDSs, are able to connect and coordinate travelling process and accommodation for the travellers. Kracht and Wang (2010) illustrated that the systems’ framework services providers in the industry are able to connect to global network functioning as an intermediary in addition to pooled inventory and integration of capabilities. This is evidently by satisfaction levels from the findings of this study. Taking a case study of Switzerland perceived as a mature tourism market, Bader et al. (2012) highlighted perceived usefulness, perceived ease of use, self-efficacy, and social influence are BI of adopting mobile services by travellers and tourists. The findings indicated that behavioural intention of using mobile service by travellers is limited by cost of services, convenience, and effectiveness of the services offered. Phatthana and Mat (2011) examined PEOU, PU, and image on health tourism e-purchasing by taking a context of the Thailand tourism sector. The findings indicated a positive and significant correlation of users’ intention where potential users consider the manner and extent in which a new way of doing things such as purchasing tickets through e-marketing convenient their way of doing things or access to information.

CHAPTER 5: CONCLUSION

Conclusion

This study aimed to explore online reservation and booking channels focusing on the application of online distribution and reservation by Booking.com and Amadeus. Initially this study had planned undertake mixed research guided by understanding the services users and providers’ perspective on the GDS and OTA. However, due to the COVID-19 pandemic, only online survey was conducted. The potential participants were invited to online survey via social media platforms. The response from the 61 individuals who participated to the online survey was analysed using thematic analytic tool. Investigating users’ acceptance of hotel front office systems by taking into account the antecedents such as actual use, perceived usefulness, users’ attitude towards the system, and information system’s quality, Kim et al. (2008) argued that acceptance can be taken from either employees or consumers perspective but its acceptances lies in the quality of information and perceived usefulness by both. Following this, Felicen and Ylagan (2016) indicated that the system capability of accessing inventory in real time has capability of replacing cumbersome booking and reservation systems where travellers had to coordinate with travel agents and service providers checking and determining availability of such services as air tickets, car rental, and accommodation. However, although PEOU and PU play a central role in determining acceptances of technology, such factors as image and social and cultural purview hold a significant influence on users’ behavioural intentions of use. The findings of this study highlighted the usefulness and satisfaction levels of participants on online distribution channels particularly the booking and reservation systems. The growth and impact the system has had to the industry is significantly positive.

Limitation

Initially, this study had planned exploring the perspectives of both the travellers as users of online reservation systems, and business entities as services providers. The data collection process was to be both questionnaire and interview approaches. The questionnaire process aimed to gather data from users of the GDS and OTA capturing their experiences and perspectives. While interview intended to capture the views business entities on implementation and usefulness on GDS in terms of managing and monitoring inventory that include suppliers as well as movement of travellers. However, due to the novel COVID-19 pandemic, on aspect of the data collection was successful. The participants to survey were invited to online survey platform and they responded and filled the survey. Nevertheless, the scheduling the interview was a problem because of government restriction and lockdown across the country. Alternative was over the phone interview, however, the effect of the pandemic on the travel and tourism meant most companies in the industry were closed or non-operational. Not interview the services provider limited the depth of this research. Arguably, the interview would have provided a better and insightful understanding of the ways GDS has influence tourism and travel industry.

Recommendation

Based on the limitation of this study, the following recommendations are made:

There is need for a deeper understanding of underlying variables and features linking the services providers (GDS) and the users (travellers). Therefore, an qualitative study approach built on interviewing the service providers is needed

In order to have a clear understanding on impact the GDS have to the tourism and travel industry, it requires having services providers’ perspective. Therefore, need for an investigation focusing on services providers and GDS.

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