Travel Reference
In-Depth Information
the need for leaders to become more transformational and less transactional if they were to
remain effective. Leaders play an important role in determining which innovations to introduce
(Victorino
et al
. 2006). This is signifi cant as innovations enable a fi rm to stay ahead of competitors
(Porter 1985; David 2007). Additionally some innovations such as technological ones may assist
in providing more effi cient operations. Leaders are also resource handlers and their willingness
to provide resources will have an impact on quality and performance (Lewis and McCann 2004).
The combination of resources and the effective use of these resources as directed by the leadership
of the organization may determine competitiveness.
A resonant theme from owners of small travel fi rms is whether some forms of technology
adoption were compatible with their sales and distribution strategy. Of all the variables posited
by Wöber and Gretzel (2000) such as speed, convenience, accuracy and security, fi rm managers
have indicated that the markets which they served value personal interaction as the most
important variable in conducting travel business. Managers often speak of high-end clients who
had 24/7 access to them in much the same way that they would have access to online booking
sites. Relationship building forms the cornerstone of their operation. While managers agree that
the Internet provided speed and convenience they were less convinced about its strength in
terms of personal interaction, accuracy, security and simplicity. They think that these were all
areas in which traditional agents had a competitive edge over online sources. Additionally they
felt that the market did not think there was suffi cient credit card security (Spencer 2012).
Owner-managers have also alluded to the fact that though ICT is changing the face of
tourism distribution, many customers still prefer to have someone to blame if things went wrong.
If there were someone accountable for errors then that person would be responsible to correct
those errors. In online situations they felt that their 'low-tech market' experienced what has been
termed as transaction loneliness. Of particular interest was the fact that most managers felt that
there is a high level of incompatibility with having a high-tech strategy coupled with a hi-touch
one (intense personal interaction) despite compelling arguments by theorists (see for example
Buhalis and Licata 2002; Hatton 2004) that a multi-platform approach to distribution will yield
sound business models. Owner-managers for example, seem more concerned with what Eastlick
and Lotz (1999) refer to as a perceived psychological risk of becoming too dependent on the
Internet and losing the essence of their customer interaction. It is clear therefore that if these
managers are to engage in greater Internet technology adoption, they will need some form of
assurance that online and offl ine channels of distribution can 'peacefully co-exist'.
Conclusion
In light of the rapid increase in technological platforms for marketing and distribution such as
social media and mobile technology applications, which are in many ways experiential, traditional
fi rms will either need to redefi ne business practices or clearly distinguish between their offerings
and those of more contemporary technology-competent fi rms. This must be balanced against an
understanding of the tech-savvy consumer and the value-seeker, which speak to transaction
processes but also to the quality of the fi nal output from the service provider.
It is evident that ICTs have and will continue to change the face of tourism distribution (and
retail fi rms in particular) but adoption levels vary based on various issues. The conceptualizations
have emphasized drivers such as national culture (Westwood and Low 2003), the global digital
divide (Minghetti and Buhalis 2010), resources (Brown
et al
. 2007), strategy (Stonehouse and
Snowdon 2007) and leadership (Elenkov and Manev 2005; Peterson
et al
. 2009). The future of
travel distribution will hinge more and more on cutting edge technology as the industry evolves
to match the expectation of tech-savvy consumers. The industry will clearly need transformational
