Total Quality Management,

Vol. 15, No. 4, 475493, June 2004

Online Travel Service Quality: the Role
of Pre-Transaction Services
ALLARD C. R. VAN RIEL*, JANJAAP SEMEIJN** &
PIETER PAUWELS*
*Department of Marketing, Faculty of Economics and Business Administration, Maastricht
University, Maastricht, the Netherlands, **Department of Management Sciences, Open
University Netherlands, Heerlen, the Netherlands
Ans1:c1 The Internet revolution has led to signicant changes in the way travel agencies
interact with customers. Travel websites are used to dierent degrees, and for a variety of
combinations of pre-transaction, transaction and post-transaction services. A better understanding
of how customers interact with online services will help providers improve service quality to levels
that satisfy or even delight customers, and thus create loyalty. This article provides a
comprehensive review of the literature on online service quality, applies the theory to online travel
oerings, and reports on an empirical study of quality perceptions of pre-transaction services
provided on three travel websites. Eects on customer responses were measured for process and
outcome dimensions of online service quality. Implications for the design of online travel services
and suggestions for further research are formulated.
Krx Wons: Online service quality, internet travel agencies, pre-transaction services
Introduction
Travel agencies provide a broad range of services, largely consisting of informa-
tion exchange and information processing activities. Information intended to
support customers in their travel decision-making is generally provided in pre-
transaction services. In addition, in transaction services the customers personal
information and payments are collected, veried and processed, and information
is relayed to third party transportation and hospitality providers. Finally, in
post-transaction services travel agents communicate last-minute information to
the customer and provide after-sales assistance. As the travel industry is largely
information-driven, the World Wide Web is considered ideally suited as a medium
for these activities (Adamic & Huberman, 2000; Morgan et al., 2001; Peterson
et al., 1997), and it is hardly surprising that online travel services have developed
into one of the largest e-commerce domains (Anckar & Walden, 2000; Clemons
et al., 2002). There is great diversity among travel agencies use of IT and the
Web. Most traditional travel agencies have at least a basic presence on the
Internet to promote their business or to exchange e-mail with customers. More
Correspondence Address: A. C. R. van Riel, Maastricht University, Department of Marketing, PO Box
616, NL 6200 MD Maastricht, the Netherlands. Email: [email protected]
1478-3363 Print/ 1478-3371 Online/04/040475-19 2004 Taylor & Francis Ltd
DOI: 10.1080/1478336042000183578
476 A. C. R. van Riel et al.
sophisticated travel sites allow customers to search, select or arrange travel and
holiday packages, and to make reservations and bookings themselves. In spite of
the slowdown occurring in other e-commerce areas, the online travel business
has shown sustained growth (TravelWeekly, 2001).
The Internet has increased competition among travel agents considerably. Even
if price plays only a secondary role in online services (Pan et al., 2002; Reichheld
&Schefter, 2000; Smith, 2002), the information eciency of the Internet still poses
a substantial threat, as all online travel agencies oer similar services. Service
quality may help create dierentiation between providers, thereby further easing
price competition (Clemons et al., 2002), and may therefore be among the most
important success factors of any Internet business (Zeithaml et al., 2002). Excel-
lent online service will satisfy or even delight customers and increase their patron-
age (Rust &Oliver, 2000), resulting in desirable behaviours such as word-of-mouth
promotion, willingness to pay a price premiumand repurchasing (Reichheld et al.,
2000; Reichheld & Schefter, 2000; Reichheld & Teal, 1996). Nonetheless, only a
fewsites are reported to appeal to their customers, and even fewer create signicant
value to the customer and the provider (Gro nroos et al., 2000).
The issue of quality management has become quintessential in the travel and
tourism industry, which is suering from a general slowdown since 11 September
2001, the wars in Afghanistan and Iraq, and the outbreak of the SARS virus in
Asia. Despite the increased importance of quality, satisfaction and loyalty in the
travel industry (Augustyn, 1998; Augustyn & Ho, 1998), and the increasingly
important role of the Internet in the service encounter, surprisingly few research
articles have been dedicated to the issue of online (self-) service quality in the
travel domain. Research in the eld of customer evaluations of self-service
technology (Dabholkar, 1996; Meuter et al., 2000) and online services is generally
considered to be in an early stage. Developing general insight in the determinants
of perceived e-service quality, and the inuence of e-service quality perceptions
on satisfaction and loyalty is of great academic interest, but insucient to help
service managers make adequate decisions, since the dimensionality of service
quality is dependent on the type of services oered (Babakus & Boller, 1992).
Therefore, what is currently needed is research focusing on specic service
categories. For travel agencies desiring to survive and thrive on the Internet, and
willing to invest in online services, it is critical to know precisely how customers
will evaluate their full service oer and which service categories and quality
dimensions are valued most (Jeong & Lambert, 2001; Jeong et al., 2003). Hence,
the problem statement of the present study reads:
Which factors play a role in customer evaluations of online travel service quality?
Three sub-questions were formulated.
(1) How do customers perceive and use online travel services?
(2) To what extent can traditional measures be used for online service quality?
(3) Which quality dimensions do customers of online travel services consider
important?
The study aims to explore the issue of customer quality perceptions of travel
websites. First, dierences in the way consumers perceive and use traditional and
Online Travel Service Quality 477
online services will be identied, and the consequences of these dierences for
the conceptualization of online travel service quality will be discussed. A model
of online travel service quality will be developed, which will be validated in an
empirical study. In the conclusion, implications and directions for future research
are presented.
Review of the Literature and Development of Propositions
Loyal customers are important to companies because they contribute directly
and sustainably to the protability and viability of the rm. Online customers
express their loyalty to a service provider in various ways (Reichheld, 1994;
Reichheld et al., 2000; Reichheld & Teal, 1996; Viitanen et al., 2004; Zeithaml
et al., 1996). Their commitment to the rm is reected in return- and re-purchase
behaviour, the willingness to pay a price premium, and favourable word-of-
mouth. In an online setting, word-of-mouth can spread quickly. Online customers
can easily use e-mail, often oered by the provider in the form of a web-link, to
recommend their favourite web site to friends and family.
Positive and reciprocal relationships are often assumed to exist between
customer loyalty, service quality, and customer satisfaction in oine and online
contexts (Bowen & Clarke, 2002; Shankar et al., 2003), although the precise
nature of these relationships, and the validity of oine loyalty theories in an
online environment are still under debate (Jeong et al., 2003). Indeed, loyal
customers are typically satised customers, but satisfaction does not universally
translate into loyalty (Oliver, 1999). Service quality and customer satisfaction
have been used interchangeably as antecedents of loyalty, but a feeling of
consensus is growing that they are fundamentally dierent in terms of antecedents
and outcomes (Zeithaml & Bitner, 2000). Causal links are thought to exist
between service quality, satisfaction and loyalty, while nature, direction and
strength of the links depend on the type of service (Dabholkar, 1996) and
the position of the encounter in the customerprovider relationship lifecycle.
Transaction and post-transaction service quality is considered crucial to overall
loyalty (Reibstein, 2002) while, especially in the case of online travel services,
satisfaction with pre-transaction services will be important, as it may lead
to return behaviour and favourable word-of-mouth. Positive service quality
perceptions are assumed to lead to increased satisfaction, the perception of
pleasurable fulllment (Oliver, 1999: p. 34) and value attributions (Zeithaml &
Bitner, 2000). On the other hand, Dabholkar (1996) found that satisfaction with
the use of technology has a substantial eect on service quality evaluations. It
appears very dicult, if not impossible, to inuence satisfaction, loyalty or
patronizing behaviour of online customers directly. However, online service
quality can be assessed, managed and controlled. In the following we will
therefore focus on online service quality.
A Conceptualization of Online Travel Services
In analogy with other services, online travel services can be viewed as a composite
oer, consisting of core services and peripheral or auxiliary services (Gro nroos,
478 A. C. R. van Riel et al.
1994; Gro nroos et al., 2000). In a traditional service context, the reason for the
provider to be in the market is generally seen as the core service (e.g. selling
travel packages for a traditional travel agent), while the auxiliary services are
considered to exist in order to facilitate the use of the core service or to enhance
the value of the oer. The situation is considerably dierent in an online context.
Whereas it may be obvious to customers of traditional providers what their core
services are, this is not the case in an online environment. What customers
perceive as the core service of an online service oer will depend on their
momentary needs and preferences regarding Internet usage. To leisure customers,
who may prefer making actual transactions in the travel agency, pre-transaction
services could comprise the core service of a travel website, while transaction
services may constitute the core service for business customers. Building on
Gro nroos (1994) theory, and mindful of the idea of customerization (Wind
& Rangaswamy, 2001), we propose an adaptedgenuinely customer-based -
conceptualization of online services: the online core service will be the customers
reason for using the website, whether this core service be making the transaction,
or making use of pre- or post-transaction services.
This adaptation has consequences for the conceptualization of online auxiliary
services. Auxiliary services have been subdivided into facilitating and supporting
services. Facilitating services are considered essential for making the service
accessible (Gro nroos et al., 2000). In the case of an online travel agency,
facilitating services would, for example, consist of search engines, reservation
systems and secure paying methods. Although facilitating services are essential
and thus common to all competing service oersthey can still be designed in
a distinctive fashion, adding value for the customer (Gro nroos et al., 2000).
Supporting services have been considered non-essential, added to the website
mainly to dierentiate the service package (Gro nroos et al., 2000). For online
travel agencies, supporting services could for example be currency calculators,
weather forecasts, information about health issues, general country information,
chat-rooms, traveller storybooks, or links to other websites. As explained in the
above, it is conceivable that customers view certain supporting services as the core
service or as an indiscernible part of the core service. This is the case when a
customer uses a travel agents website uniquely for checking the local weather
forecast, typically a pre- or post transaction service. In an online context, the role
of supporting services must therefore be reconsidered: while they may not seem
essential to the provider, supporting services are often crucial to the customer, and
therefore potentially very important in distinguishing the service oer from those
of competitors, provided they are tailored to the needs of the customer.
Modelling and Measuring Service Quality
Parasuraman et al. (1985, 1988) were among the rst to introduce a formal
service quality model. The model was based on the disconrmation paradigm,
introduced to consumer behaviour research by Oliver (1977). A combination of
theoretical and empirical research resulted in the 22-item SERVQUAL scale
(Parasuraman et al., 1985, 1988), which has become widely accepted and
used: The quality of traditional services is now generally measured along ve
Online Travel Service Quality 479
fundamental quality dimensions: tangibles (the appearance of physical facilities,
equipment, personnel, and communication materials), reliability (the ability of the
rm to perform the promised service dependably and accurately), responsiveness
(willingness to help customers and provide prompt service), assurance (knowledge
and courtesy of employees and their ability to convey trust and condence), and
empathy (the caring and individualized attention provided to the customer).
The dimensionality of the SERVQUAL model has often been questioned
(Brown et al., 2002; Caruana, 2000). The ve-component factor structure is
indeed conrmed in few if any of the research samples (Caruana, 2000; Cronin
& Taylor, 1992). This lack of conrmation has been explained by suggesting that
the dimensionality is strongly dependent on the type of service being oered
(Babakus & Boller, 1992). How well the SERVQUAL model can be used for
online services is also under debate. Several authors have proposed to use
traditional service quality theory as a basis for further empirical research
regarding online services (Gro nroos et al., 2000; Kaynama & Black, 2000;
Zeithaml et al., 2000). Zeithaml et al. (2000) for example developed 11
SERVQUAL-related dimensions, based on focus group research. According to
Liljander et al. (2002) the original dimensions can be adapted to online services,
and some additional dimensions should be constructed. With the objective of
adapting and extending traditional service quality dimensions, viewing online
services as a Self Service Technology (SST), which enables customers to service
themselves without the involvement of employees, can be very helpful (Dabhol-
kar, 1996, 2000; Dabholkar & Bagozzi, 2002; Meuter & Bitner, 1998; Meuter
et al., 2000, 2001).
Viewing online services as a SST has consequences for the conceptualization
of the online service encounter. The service encounter can be considered to lie
on the basis of the traditional SERVQUAL model. In a traditional service
setting, customers are often thought to base their quality judgements mainly on
evaluations of physical aspects of the service provider on the one hand (Bitner,
1992), and their interactions with service employees on the other (Bitner, 1990;
Bitner et al., 1990). In much service quality research, the so-called service
encounter (Solomon et al., 1985) is identied with the service itself (Groth et al.,
2001). In particular, the quality and perceived value of human interaction
between customer and service sta during the encounter (Bolton & Drew, 1992)
are considered critical in determining future patronage behaviour. In many online
service encounters, however, customers interact exclusively with technology and
will only deal with employees when special help is needed. Furthermore, a visit
to the providers premises is generally unnecessary, or secondary. The traditional
service encounter is thus replaced by an interaction with technology and it can
be expected that online service quality perceptions will be based largely on
evaluations of this interaction. Therefore, a key determinant of online service
quality appears to be the user interface, which represents the service provider
(Gro nroos et al., 2000).
The User Interface
Technology can enable and facilitate the exchange of information between
customers and the service provider (Parasuraman & Grewal, 2000). In the case
480 A. C. R. van Riel et al.
Figure 1. The role of the user interface in online services, adapted from Liljander et al. (2002)
of online services, the role of information technology (IT) is most clearly
observable in the user interface (Gro nroos et al., 2000). Therefore, an important
quality dimension customers encounter when visiting a website is its functionality
as an interface between themselves and the rm. Making a distinction between
the process or technical, and outcome or functional aspects of service quality
(Gro nroos, 1994; Gro nroos et al., 2000; Parasuraman et al., 1985; Parasuraman
et al., 1991) the role of the user interface and the relationships between the
various components the online service oer and customer responses can be
visualized as depicted in Figure 1.
The technical functionality of the user interface determines how services are
delivered to customers, and therefore aects functional quality perceptions of
the core, facilitating and supporting services (Liljander et al., 2002) in pre-, post-
and transaction stages. Since the user interface replaces the physical service
encounter, it substitutes the tangibles dimension of the SERVQUAL model
(Kaynama & Black, 2000; Szymanski & Hise, 2000). How well the website
succeeds as an interface between customer and provider will likely depend on
two broad characteristics: the design of the pages as they appear on screen, and
the ease with which customers can access and navigate between pages inside the
website. The structure of travel websites is highly complicated, because they must
allow the customer to retrieve and select detailed information chunks from many
dierent databases and combine them into the desired information (Barnett &
Online Travel Service Quality 481
Standing, 2001). The complexity and required amount of detail of the travel
oer also make it dicult to display all required information eciently and
eectively. It is therefore expected, that the quality of the user interface will play
a major role in the case of Internet travel agencies (Jeong et al., 2003). Proposi-
tions will now be formulated with respect to the role and importance of each of
the dimensions for the case of online travel agencies. Zeithaml et al. (2000)
suggest measuring user interface quality in three dimensions, namely accessibility,
navigation and aesthetics. Based on the above reasoning we follow this approach
in formulating three propositions relating to the user interface, which precede
propositions with respect to the other four modied SERVQUAL dimensions.
Accessibility
High levels of interface quality would imply easy access to the site itself, to
company sta, and to the dierent services when needed (Bell & Tang, 1998;
Cox & Dale, 2001; Zeithaml et al., 2000). Therefore we propose:
P
1
: In the case of Internet travel agencies, accessibility of the website, the
services and sta will be positively related to overall quality perceptions.
Navigation
Good navigation quality entails that the site (1) provides functions helping
customers to nd what they need without diculty, (2) oers user-friendly and
high performance search engines, and (3) allows the customer to manoeuvre
easily, logically and quickly back and forth through the pages (Jeong & Lambert,
2001; Liljander et al., 2002; Zeithaml et al., 2000). Customers could be oered
dierent ways of searching. For travel sites, high quality navigation would mean
that the customers could easily perform complex searches on, for example, type
of holiday, type of transportation, country, date and price. This appears crucial
to online travel service quality. We therefore expect:
P
2
: In the case of Internet travel agencies, perceived quality of navigation
between pages will be positively related to overall quality perceptions.
Design
Website design quality is referred to as site aesthetics by Zeithaml et al. (2000),
or e-scape (Van Riel et al., 2004; Viitanen et al., 2004). The way information is
presented, in terms of colour use, layout, number, relevance and quality of
pictures, font size and style, will aect the way customers respond to the service.
The tangibles dimension of traditional SERVQUAL is strongly reected in the
design aspect of the user interface. It is thus expected that:
P
3
: In the case of Internet travel agencies, perceived quality of the design
of web pages and the presentation of information will be positively
related to overall quality perceptions.
482 A. C. R. van Riel et al.
Reliability
The next SERVQUAL dimension to be discussed and modied for online services
is reliability. Parallel to the case of oine services, customers expect search
engines, payment facilities etc to function reliably, and the information presented
on the website to be dependable. Two aspects of online service reliability can be
distinguished (Cox & Dale, 2001). The process aspect of reliability perceptions
is driven by the correct technical functioning of the site, or the technical aspects
of the user interface, while the outcome aspect is dened by the accuracy of
service promises, billing and product information (Zeithaml et al., 2000). For
instance, online travel agencies are required to reserve and oer the correct
number of seats in an aeroplane, oer the packages at the advertised prices, and
reserve the correct type of hotel room for the number of nights requested by the
customer. It can therefore be expected that:
P
4
: In the case of Internet travel agencies, perceived reliability of the online
services will be positively related to overall quality perceptions.
Assurance
In the classical SERVQUAL model an important quality dimension is assurance,
or the degree to which service sta and premises instigate trust in the customer.
Online customers generally cannot scrutinize the employees, or the physical
facilities of the rm they are dealing with (Reichheld & Schefter, 2000), so trust
must be established in other ways. It is the impression of assurance the website
makes on the customer that will lead to trust. The security and privacy dimension
used by Zeithaml et al. (2000), which involves the degree to which the customer
believes the site is safe from intrusion and personal information is protected
(Zeithaml et al., 2000: p. 16) is part of the assurance dimension. Trust is often
claimed to be the most important online service quality dimension (Papa-
dopoulou et al., 2001; Petersen, 2001; Roy et al., 2001; Urban et al., 2000). It is
expected, that:
P
5
: In the case of Internet travel agencies, perceived assurance of the online
services will be positively related to overall quality perceptions.
Responsiveness
The quality of support customers receive when faced with questions or running
into problems, and the speed with which this support is provided, largely
determine customer evaluations of post transaction services. Customer support
is also appreciated during the pre-transaction stage, particularly for online
services: the online customer is relatively powerless in enforcing help, having to
rely on the willingness of the rm to provide support. The faster and more
accurately a provider responds to requests, the better the service will be evaluated.
We therefore expect:
P
6
: In the case of Internet travel agencies, a positive relationship will exist
between perceived responsiveness and overall quality perceptions.
Online Travel Service Quality 483
Figure 2. Research model
Customization
It has been argued that customizability is one of the key benets of applying
technology to the delivery process of services. Online services are, in principle,
highly customizable. Customers may therefore expect online services to respond
to their individual needs (Bitner et al., 2000). Customization is strongly related
to the empathy dimension in SERVQUAL, as the online rm shows its appreci-
ation of the customers unique needs and preferences by making the site
adaptable. However, companies often track customers movements and decisions
through interactions with the visited websites and use this database of client data
for further customization (Kaynama & Black, 2000). As a result, customization
can easily involve privacy issues: To what extent customers will tolerate the
prying behaviour of online providers remains to be seen. It can be expected, that:
P
7
: In the case of Internet travel agencies, an inverted U-shaped relationship
will exist between perceived customization and overall quality
perceptions.
The expected relationships are summarized in the model in Figure 2.
Research Design and Methodology
A comparison of three existing travel sites in The Netherlands serves to validate
the model by testing the propositions that were developed. After a short
484 A. C. R. van Riel et al.
description of the travel industry in the Netherlands and of the three travel rms
studied, the research methodology and the operationalization of the variables
will be discussed.
The Travel Industry in the Netherlands
The Netherlands is a small country with 15 million inhabitants. It has one of
the highest levels of personal computer and Internet penetration (Forrester, 2001)
in households (after the US and Finland). The travel market can be divided into
online, hybrid and traditional agencies. Furthermore, a distinction can be made
between direct sellers and intermediaries. Direct sellers exclusively oer their own
products. Examples are De Jong Intra (www.dejongintra.com), KrasSterVakan-
ties (www.kras.nl), and ATPonline (www.atponline.nl). Direct sellers have direct
insight in the availability of products, and can rapidly adapt the products
to current demand. A disadvantage is the limited product oering on this type
of site (Jungle Rating, 2001). For this reason, direct sellers tend to trans-
form themselves into intermediaries (Barnett & Standing, 2001). Intermediaries
provide sites that sell products from a range of tour-operators. E-Bookers
(www.ebookers.com), Elmar-reizen (www.elmar.nl), Travelplanet (www.
travelplanet.nl), Happytravel (www.happytravel.nl), D-reizen (www.d-reizen.nl)
and Travel24 (www.travel24.com) are examples of this category. Intermediaries
tend to have the most attractive website design: When booking through an
intermediary you really land in a virtual travel-world, where you can feel,
compare and easily book, while sites of direct sellers are often without fantasy
and atmosphere (Jungle Rating, 2001).
Three Travel Websites
Three travel agencies, representing dierent categories, were used for this study:
D-reizen (hybrid intermediary), Travel24 (online intermediary), and De Jong
Intra (hybrid direct seller).
(1) D-reizen is the largest independent travel agency in the Netherlands. They
sell bookings for nearly all Dutch tour operators (55 tour-operators, among
others De Jong Intra) and airline companies.
(2) Travel24 is one of the most prominent travel agencies on the Internet. Travel24
is active in the Dutch-speaking Benelux-market, but also in Germany and
other European countries and has agreements with many international tour-
operators. Most oerings can be booked online.
(3) De Jong Intra is a tour operator that caters to over 250,000 leisure travellers
on a yearly basis. De Jong Intra sells their vacations via their website and
through intermediaries (such as D-reizen).
Questionnaire Design and Measurement
A structured undisguised questionnaire was developed, containing 37 closed
questions and ve open questions. The questionnaire was sent by e-mail to a
Online Travel Service Quality 485
convenient sample of about 400 contacts on 7 May 2002, with the invitation to
complete the questionnaire for at least one travel website. Links were provided
to the three websites, and respondents were invited to visit and explore the sites
before lling out the survey. Ninety-one respondents completed the questionnaire,
44 respondents for D-reizen, 20 respondents for De Jong Intra, and 27 respond-
ents for Travel24.
In the original SERVQUAL model, service quality is dened as the dierence
between customers expectations or anticipations and their perceptions of actual
performance (Parasuraman et al., 1991). It has been suggested that service
quality can be measured more appropriately as performance (Cronin & Taylor,
1992, 1994). Service quality, measured as perceived performance, has been
demonstrated to aect customer satisfaction and patronage behaviour directly
and to a high degree (Cronin et al., 2000; Liljander & Strandvik, 1995). It
was therefore decided to measure service quality as respondents self-reported
agreement or disagreement with statements about the performance of the service
on the previously discussed dimensions. Performance perceptions were measured
on seven point Likert-scales.
Results
In a separate part of the survey, respondents were asked about the importance
of various service categories oered by travel websites in general. Table 1 shows
the means and standard deviations of the responses by age group.
Services directly related to transactions show an importance rating of at least
6 out of 7 in all categories and age groups. A notable dierence between age
groups was observed for responsiveness. Online customers in the 2024 years old
age group appear more impatient than the people in the other age groups. The
various facilitating and supporting services show lower ratings, except for direct
access, which reects the desire to access the provider by phone or visit the
premises if needed.
A factor analysis was used to assess the one-dimensional nature of the dierent
variables. Cronbachs alpha was calculated for all constructs to obtain an
Table 1. Importance of online travel service categories by age group: Means (Std. dev.)
Transaction related Facilitating
services services Supporting services
Fast Conr- Direct Chat
Age N Response Billing mation access E-mail Country Stories room
Early 20s 39 6.6 6.7 6.8 6.1 3.4 5.6 3.1 1.7
(0.54) (0.44) (0.43) (1.17) (1.63) (0.99) (1.53) (0.80)
Late 20s 23 6.4 6.4 6.2 5.8 3.5 5.0 4.0 2.2
(1.24) (1.47) (1.87) (1.65) (1.80) (1.58) (2.12) (1.35)
30s and above 29 6.0 6.6 6.7 5.4 4.0 5.28 3.6 2.4
(0.98) (0.88) (0.81) (1.52) (1.66) (1.28) (1.40) (1.48)
486 A. C. R. van Riel et al.
indication of the composite reliability of the measures. Three separate factor
analyses were conducted, one on the customer responses, one on the three user
interface dimensions, and one on the other service quality dimensions. Scree
tests were used to determine the number of factors. A value of 1 for the initial
Eigenvalues was used as a threshold. Items measuring overall quality, satisfaction
and behavioural intentions were loaded on one factor, explaining 65.2% of the
total variance, with an initial Eigenvalue of 3.262. A three-factor solution was
found for the user interface dimensions, explaining 74.6% of the total variance.
Navigation (initial Eigenvalue 4.878) explained 49% of the variance, design (initial
Eigenvalue 1.521) explained 15.2%, and accessibility (initial Eigenvalue 1.043)
explained 10.4%. A three factor solution best described the remaining
SERVQUAL dimensions, where customization (initial Eigenvalue 4.552) explained
50%, assurance (initial Eigenvalue 1.197) explained 13.3% and reliability (initial
Eigenvalue 1.004) explained 11.15% of the total variance. Responsiveness was
measured with a single item. Commonalities were all above 0.5; standardized
factor loadings for most individual questions, relating to the user interface and
the other service quality dimensions were high, whereas most of the factor
analyses yielded acceptable values on the KaiserMeyerOlkin measure of
sampling adequacy (see Table 2), so these constructs can be considered reliable
and one dimensional.
Means and standard deviations for service quality dimensions and overall
rating of each site are reported in Table 3. For De Jong Intra, these values are
consistently lower than for the other two sites (except site design).
To further explore the data, we calculated correlations between all main
constructs. Table 4 presents bivariate correlations between core constructs.
Correlation coecients of respectively 0.10, 0.30 and 0.50 are typically interpreted
as small, medium and large (Green et al., 1997).
Regression analysis was used to test the propositions. The expected relation-
ships between the seven online service quality dimensions and customer responses
are represented in the equation:
SQab1ACCb2NAVb3DESb4RELb5ASS
(1)
b6RESb7CUSE
where is the intercept, 17 are regression coecients of the independent
variables and E represents the error term. Because of considerable correlations
among the independent variables (see Table 4), high levels of multicollinearity
were expected. The variance ination factors (VIF) were calculated and found
to be in the range of 1.53.5. In order to separate better the eects of the
dierent independent variables a Ridge-regression was therefore conducted. In
the case of multicollinearity, least squares estimates themselves are unbiased, but
their variances are very large and possibly far from the true values. By adding a
small bias (k) to the regression estimates, more reliable estimates can be obtained.
A value of 0.6 for k was chosen, as this produced the best results. The regression
results are reported in Table 5. From Table 5 it can be concluded that highly
signicant relationships exist between the two major user interface dimensions,
navigation (Proposition 2) and design (Proposition 3), as well as the adapted
Online Travel Service Quality 487
Table 2. Factor analysis for the constructs
Construct/measures Standardized Std.
(composite reliability/sampling adequacy) loadings Mean dev.
Overall service quality (0.86/KMO0.847)
The quality of services on the travel agencys website is very
good 0.75 4.75 1.29
On a scale between 1 (very bad) and 7 (very good) I would
grade the travel agencys website: 0.80 4.78 1.25
I am very satised with the service on this website 0.85 4.53 1.59
In the future I will certainly make use of the website to
search for travel information 0.86 4.41 1.78
In the future I will certainly make use of the website to
book travel 0.78 3.46 1.64
Accessibility (0.81/KMO0.500)
The website makes it easy to get into touch with the travel
agency 0.78 4.77 1.53
I can easily nd e-mail address and telephone number of
the travel agency 0.92 4.69 1.79
Navigation (0.90/KMO0.822)
Browsing between pages is easy 0.87 4.96 1.56
The structure of the site is logical 0.91 4.89 1.62
A good search engine is present 0.86 4.39 1.72
Categorization of topics is helpful in nding what I search 0.88 4.81 1.63
Design (0.78/KMO0.778)
The site is pleasant to look at 0.63 4.90 1.57
The site is original 0.63 4.20 1.56
There are too many pictures (recoded) 0.86 4.37 1.66
The use of colours on the site is good 0.71 4.57 1.69
Reliability (0.81/KMO0.852)
The information provided by the travel agency is up-to date 0.86 5.26 1.33
I can rely on the information provided on the website 0.75 5.30 1.33
Product information (travel description) is accurate 0.73 4.71 1.34
Assurance (0.80/KMO0.700)
The purpose of the site is entirely clear to me 0.82 5.46 1.39
I trust this site in terms of condentiality of private
information 0.84 4.85 1.38
The website looks professional 0.87 5.08 1.51
Responsiveness
Imagine having a problem, it is easy nding help on the site 0.84 4.17 1.34
Customization (0.85/KMO0.708)
The site helps to nd exactly what I want 0.64 4.54 1.56
The site is easy to customize (by oering the possibility to
search on date, destination and price) 0.88 4.36 1.75
I can quickly and easily see if they oer something that
suits me 0.83 4.64 1.57
488 A. C. R. van Riel et al.
Table 3. Descriptives for three travel websites: Means (Std. dev.)
De Jong Intra Travel 24 D-reizen
Customer response (SQ) 3.36 (1.32) 4.51 (0.79) 4.77 (1.15)
Access (ACC) 4.10 (1.64) 5.13 (1.35) 4.88 (1.34)
Navigation (NAV) 3.74 (1.59) 5.18 (1.12) 5.09 (1.12)
Design (DES) 4.31 (1.48) 4.26 (0.68) 4.87 (1.23)
Reliability (REL) 4.30 (1.40) 5.04 (1.11) 5.49 (0.79)
Assurance (ASS) 4.87 (1.16) 4.85 (1.29) 5.54 (0.76)
Responsiveness (RES) 3.95 (1.47) 4.11 (1.31) 4.40 (1.16)
Customization (CUS) 3.42 (1.48) 4.64 (1.05) 5.05 (1.16)
Table 4. Correlation matrix of main constructs
SQ ACC NAV DES REL ASS RES
ACC 0.452**
NAV 0.830** 0.443**
DES 0.549** 0.503** 0.474**
REL 0.553** 0.232* 0.515** 0.432**
ASS 0.533** 0.470** 0.576** 0.678** 0.554**
RES 0.534** 0.555** 0.530** 0.442** 0.420** 0.515**
CUS 0.806** 0.388** 0.818** 0.448** 0.496** 0.525** 0.570**
**Correlation is signicant at the 0.01 level (2-tailed).
*Correlation is signicant at the 0.05 level (2-tailed).
Table 5. Ridge regression (k0.6)
Dependent variable: SQ B t
Intercept 0.177 1.898*
NAV 8.578** 0.272
CUS 7.891** 0.252
REL 3.301** 0.116
DES 3.302** 0.113
ACC 1.873* 0.065
RES 1.784* 0.025
ASS 0.752 0.025
N91 Adjusted R2: 0.71
F-value: 32.540 signicance
0.000**
SERVQUAL dimensions reliability (Proposition 4) and customization (Proposi-
tion 7), and customer responses.
Weaker, but signicant eects exist between accessibility (Proposition 1) and
responsiveness (Proposition 6) and customer responses, while, surprisingly, no
signicant relationship could be found between assurance and customer responses
(Proposition 5). A large proportion of the variance in customer responses was
Online Travel Service Quality 489
explained by the six signicant constructs (adjusted R20.71), while the model
has a relatively good and highly signicant t to the data (F32.540). This
implies that the data support all propositions, except Proposition 5.
Discussion and Conclusions
As a result of the rapid development of information and communication
technologies, customers have gained access to a wide range of new services on
the Internet (Porter, 2001). The present study focused on online travel services
as one of the largest e-commerce domains (Anckar & Walden, 2000; Clemons
et al., 2002). The aim was to investigate the dimensions of online travel service
quality by adapting and extending the SERVQUAL model. We investigated
the impact of accessibility, navigation, design, reliability, responsiveness and
customization on online service quality perceptions. Where traditional service
quality perceptions are based on an evaluation of encounters between service
provider and customers, online service quality perceptions appear to be generally
based on evaluations of the interaction between the customer and a user interface.
Each online service provider employs standardized interfaces and technology for
its customers. Delivering online services right the rst time every time is crucial.
Imperfections in technology or user interface design have immediate con-
sequences for online service quality perceptions in all dimensions. Furthermore,
customers zones of tolerance are likely to be smaller for online services, because
a multitude of providers are available on the Web (Parasuraman et al., 1991;
Van Riel et al., 2003).
The present study found that all factors, except assurance, had a signicant
impact. Our model explained 71% of the variance in perceived online service
quality. As we found a weak antecedent role of assurance, the observation of
substantial correlation between assurance and customer responses may point at
reverse causality. This observation warrants further investigations. The impact
of accessibility and responsiveness on online service quality perceptions was
weaker, yet signicant. The true importance of accessibility may be revealed to
its full extent when the customers really need to contact the company, which
may not have been the case in the sample used for the research. A similar
observation can be made with respect to responsiveness. Customers expect
companies to react quickly and accurately to questions, complaints and orders.
Managerial Implications and Recommendations
Some recommendations for managers of online travel services can be made.
Providers often consider supporting and pre- and post-transaction online services
non-essential and mainly use them to dierentiate the service package. We argue
that pre-and post-transaction service delivery, which is typically built around
supporting services, may signicantly impact overall quality perceptions. In the
context of travel e-commerce, pre- as well as post-transaction services should
arguably be considered potential core services, paving the way for future
transactions.
The results of our study indicate that both process and outcome dimensions
490 A. C. R. van Riel et al.
signicantly impact service quality perceptions in an online travel context. It is
often argued that customer expectations can more easily be exceeded in process
than in outcome dimensions (Parasuraman et al., 1991). This is important in
relation to online travel services, because the interaction between the customer
and the website is a process dimension (user interface), and therefore online
providers should ensure quality in this area at least as much as in their outcome
dimensions (Cox & Dale, 2001). The design of the user interface acts as a
business card for the travel agency. User interface quality should be high, because
it aects the overall image of the service provider. The navigation aspect of the
user interface appears to be essential: Travel sites would gain much by extremely
user-friendly navigation toolbars. Decisions to book a vacation through a travel
website seem to depend on the presence of fast and reliable navigation tools and
of an easy-to-use but functional search engine. Cumbersome navigation and
search facilities, or processes that are constantly blocked by irrelevant pop-ups
and banners, are likely to be detrimental to re-visiting and re-use of the website
and thus to customer loyalty. The proper use of technology in all aspects of the
user interface can be a signicant asset of the service provider. Furthermore,
technology can contribute to continuous improvement of the online service by
studying patterns in the surng behaviour of customers.
Limitations and Suggestions for Further Research
The distinction between pre-transaction, transaction and post-transaction service
quality warrants further research. For instance, what is the relative eect of pre-
and post-transaction service quality on the perceived overall service quality? The
present study largely deals with pre-transaction service quality. Investigating the
same customers during the transaction and post-transaction phases would yield
new insights into the relative impact of pre-transaction service quality.
Acknowledgements
The authors gratefully acknowledge the contribution of Simone van Leeuwen,
who executed the research as a part of the requirements for her Masters Thesis.
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