TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgment
Abstract
Table of content
CHAPETR ONE
1.0 INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Research questions
1.4 Objective of the study
1.5 Significance of the study
1.6 Scope of the study
1.7 Definition of terms
CHAPETR TWO
LITERATURE REVIEW
2.1 introduction
2.2 conceptual review
2.3 empirical review
CHAPETR THREE
3.0 Research methodology
3.1 sources of data collection
3.3 Population of the study
3.4 Sampling and sampling distribution
3.5 Validation of research instrument
3.6 Method of data analysis
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS AND INTERPRETATION
4.1 Introductions
4.2 Data analysis
CHAPTER FIVE
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
Appendix
Abstract
The increasing need for leisure travel and the overwhelming tourism development in Nigeria has necessitated high level of human resource management in order to meet up with challenges facing the tourism industry. Of a truth, the value of buying tourism service through an online travel agency or electronic medium is dependent on a lot of factors ranging from customer satisfaction and value based; in view of this this study unraveled customer perceived values and satisfaction in the purchase of tourism service. This study therefore seeks to address this problem. A descriptive survey method was applied in the study, the population of the study comprise of the staff and customers of selected travel agencies in Illorin metropolis.
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Tourism is travel for recreational or leisure purposes, while a tourist is a person who travel to and stay in places outside his usual environment for not more than one consecutive year for leisure, business and other purposes and not related to the exercise of an activity remunerated from within the place visited. Tourism has become a popular global leisure activity with a record of over 903 million international tourist arrivals in 2007; and with a growth of 6.6% as compared to 2006. Presently, international tourist receipts reached 856 billion in 2007 (WTO 2008). Tourism as an industry is dynamic and competitive, and is recognized widely as one of the world’s largest growth industry. The constant development of new tourism products has led to an increased need for knowledge, flexibility and creativity. Information technology on the other hand has provided the consumer with tools to seek out special services and better value. As a result, the tourism industry continues to feed an ever-growing system of subsidiary services. Based on these, the need for well qualified and dedicated professionals to manage this rapidly growing industry is on the increase. However, the Nigeria Tourism Development Master Plan of 2006 is a clear evidence of the nation’s commitment to further develop her tourism industry. It should be noted that tourism is a multi-sectoral industry that cuts across other industries like hospitality, catering services, transportation, travel agencies/airline operators, etc. The roles of travel and tourism industry in the economic survival of countries around the world cannot be overemphasised (Okoli, 2001). The industry is an instrument of economic regeneration and stability given its important role in job creation, especially at this time when many countries are suffering from high unemployment (Bello, Bello, Akande, and Raja, 2014). According to Jennifer and Thea (2013), the direct contribution of the tourism sector to the global GDP in 2012 was put at about US$2, 056.6 billion (2.9%). This figure is forecast to rise by 3.1% in 2013, 4.4% pa, from 2013-2023 put at about US$3, 249.2 billion (Jennifer and Thea, 2013). The advances of internet have shaped the travel agencies business practice fundamentally, causing various strategic responses.
The overarching aim for many travel agencies in the wake of new and rapidly changing ICT is to transform their businesses appropriately for gaining a more competitive. The airline, hotels, car rental chains and tour operators are increasingly encouraging clients to make booking directly through the use of their own sales outlets, mobile telephony and the internet (O’Conner, 2008). The main reason for such changes is to cut on their distribution cost, which is an integral aspect of strategic approach. The internet innovations have altered the traditional intermediary role travel agencies played in distributing tourism products and services. New form of internet technology has brought dramatic shift to travel agencies’ business whereby the booking process is gradually phased out as commercial transactions are increasingly channeled through appropriate websites (Davidson & Rogers, 2006). According to Papatheodorou (2006) and Buhalis and Costa (2006), only players that can add value will be able to survive in the long run as intermediation is rapidly replaced by e- business models, and that is why the current study attempted to investigate the perceived value of buying tourism service through an online travel agency. With the increasing pressure, internet has brought strategic measures into the service providers. Measures like the introduction of zero-commission policy (no percentage payment given to TAs on airline sale) by airlines is being replaced by service fee. This has better assurance for ticket sale and is a strategic approach towards cutting the distribution costs. Today, the airlines are adopting disintermediation (by passing of TAs) as a major driver towards change in an endeavor to link themselves directly to their customers (Doganis, 2006). The introduction of e-ticketing, commission caps and cuts and increased use of the ICTs by the airlines are major changes intended to substitute travel intermediaries with digital technology, hence reducing the distribution cost (Frew, 2004 and Page, 2009). Advances in the internet have affected the travel and tourism industry, particularly in the area of automation and networking of distribution channels. The most radical change brought by ICTs is ‘disintermediation’, whereby tourism service providers are striving to sell their products directly to clients (Garkanenko & Milne, 2009; Wang, Li, Duan, Yan, Hi and Yang, 2007). Despite the disintermediation threats, most travel agencies are still thriving in their businesses, making this research critical to establish the nature of the competitive strategies they are using. While generally travel agencies all over the world are managing to adopt various strategies, very little is known in specific countries and urban settings. Travel agencies have continued to endure the ICTs challenges through restructuring and reorganization of their businesses (Zhou, 2004). The extent to which travel agencies have embraced the recent innovations in the internet and repositioning themselves by offering their services online produces plenty of information, which however, requires an empirical analysis. For instance, in 2004, a number of mergers and acquisition took place to consolidate on-line players.
1.2 STATEMENT OF THE PROBLEM
This research focused on travel agencies’ response to internet within three critical issues. First, although there has been ICT advancement and particularly the internet for sourcing and information dissemination, booking, financial transactions and marketing among travel agencies, there are very limited studies in Nigeria indicating the extent to which the TAs utilize and the competitive strategies adopted by them. The implications of the internet innovation upon travel agencies business remain understudied, making it hard to understand the industry’s trends, competitiveness and repercussions within the Nigerian context. Second, internet has triggered diverse response among the travel agencies without corresponding research to delineate competitive strategies adopted. Analyzing how travel copes with the internet innovations remains challenging due to unsystematic research, thereby creating incoherence. Third, the Nigeria Tourism policies and ICT policies that are directly related to travel agencies such as policies on private sector involvement, marketing and ICTs, remain conceptually misunderstood especially due to limited analysis. Despite the fact that Nigeria government recognizing the importance of involvement of the private sector as an engine to economic growth as outlined in Vision, existing research does not address the tourism policy in the context of technologies such as on-line services and ticket-less travel. Generalization that internet is “phasing out” the travel agencies has to be qualified by concrete research which can inform the inadequacy of ICTs policy in content and specialization. In light of the above issues, the research sought to determine how the travel agencies are responding strategically to the challenges internet poses.
1.3 OBJECTIVE OF THE STUDY
This study has one main objective which is further broken down into general and specific objective; the general objective is to examine customers perceived value of buying tourism service through an online travel agency in illorin, Nigeria; the specific objectives are;
- i) To examine the extent in which travel agencies have adopted and use the internet effectively to aid customer satisfaction
- ii) To examine if there is any significant relationship between online travel agency and tourism development in illorin metropolis
iii) To ascertain the impact of online travel agencies in tourism development in illorin
- iv) To proffer suggested solution to the identified problem
1.4 RESEARCH QUESTIONS
The following research questions where formulated by the researcher to aid the completion of the study;
- i) Is there any significant relationship between online travel agency and tourism development in illorin metropolis?
- ii) Is there any impact of online travel agencies in tourism development in illorin?
iii) Has travel agencies fully adopt and use the internet effectively to aid customer satisfaction?
1.5 RESEARCH HYPOTHESES
The following research hypotheses were formulated by the researcher to aid the completion of the study;
H0: There is no significant relationship between online travel agency and tourism development in illorin metropolis
H1: There is a significant relationship between online travel agency and tourism development in illorin metropolis
1.6 SIGNIFICANCE OF THE STUDY
The result of this research will enable the travel agencies to understand the existing internet innovations and effectively utilize its potential. The travel agencies especially in illorin will gain a competitive edge with increased knowledge. Small and medium scale travel agencies stand particularly to benefit with regard to how they can make use of Internet innovation relevant in the tourism industry in order to remain in business and become even more relevant to the industry. The research may also establish the opportunities of the adoption of internet advances in the operations of travel agencies in illorin and provide necessary information on the dynamic character of internet which can form an important basis to adopt viable strategies. The research findings may also give an informed situation of the government ICT policies and be a good ground for necessary reforms to improve the quality of travel agencies. The study will also add value to the body of knowledge, especially in academia. Ultimately, the outcome of the research will serve as a blue print for entrepreneurs to chart the right course of action for the development of ICT facilities and infrastructure in the travel agency activities in the tourism industry
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers the perceived value of buying tourism service through an online travel agency in illorin. In the course of the studies, there are some factors that limit the scope of the study;
AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
TIME: The time frame allocated to the study does not enhance wider coverage as the researcher have to combine other academic activities and examinations with the study.
FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.
1.8 OPERATIONAL DEFINITION OF TERMS
Travel
Travel is the movement of people between distant geographical locations. Travel can be done by foot, bicycle, automobile, train, boat, bus, airplane, ship or other means, with or without luggage, and can be one way or round trip
Travel agency
A travel agency is a private retailer or public service that provides travel and tourism related services to the general public on behalf of suppliers
Tourism
Tourism is travel for pleasure or business; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours.
ICT
ICT is an extensional term for information and technology (IT) that stresses the role of unified communications and the integration of telecommunications (telephone lines and wireless signals) and computers, as well as necessary enterprise software, middleware, storage, and audiovisual systems, that enable users to access, store, transmit, and manipulate information
1.9 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.
