Consumer Perception Toward Online Travel Agencies
Consumer Perception Toward Online Travel Agencies
ON
ADMINISTRATION
SUBMITTED BY
MBA, Semester II
1. STUDENT’S DECLARATION 2
12. REFERENCES 29
13. ANNEXURE 31
1
STUDENT’S DECLARATION
It is also certified that the project of mine is an original work and the same has not
been submitted earlier elsewhere.
2
CERTIFICATE FROM FACULTY GUIDE
To the best of my knowledge and belief the data and information presented by her
in the project has not been submitted earlier elsewhere.
RDIAS
3
ACKNOWLEDGEMENT
I would like to express my sincere thanks and gratitude to my mentor, Mrs. Madhvi
Kapoor, for letting me work on this project. I am very grateful to her for the support
and guidance she provided to completing this project.
4
EXECUTIVE SUMMARY
Online travelling is the newest addition to the travelling ecosystem in India. The
advent and proliferation of computers, coupled with the increasingly acceptable
leveraging of the Internet has caused some major changes in the travel industry.
Online travelling in India is yet at a very nascent stage. Travelling has not been a
focus area but merely another application for engaging users when they are looking
out for some quick results. The engagement level of most users has also been low
with infrequent usage and loyalty. However all this is changing with the spotlight
sharply focused on complete travel booking. The traditional means of procuring
airline tickets and associate travel arrangements are rapidly changing. These
changes are primarily being facilitated by Internet travel marketplaces (such as
makemytrip.com, yatra.com, etc.) that claim to provide an easier, less expensive
alternative to traditional methods of ticket procurement without sacrificing service
quality. If travel marketplaces are to be successful then they need to understand their
customers and what the motivations behind their actions are, when it comes to
shopping for discount travel. This project aims to report a descriptive study that
investigated the perceptions of Consumers for online travel and online travel
portals.Online consumer behavior is a broad and interesting area of study that can
Benefit organizations in their efforts to market and sell travel products and Services
online. As consumers’ perceptions and attitude towards online travelling is a
prominent factor affecting actual buying behavior, this research has tried to
investigate a modest part of that area.
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LIST OF TABLES
Anova 23
Regression 24
Model Summary 25
LIST OF CHART
Age 21
Gender 21
Marital Status 21
Education/ Qualification 22
Occupation 22
Annual Income 22
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CHAPTER 1
INTRODUCTION
Online traveling is the newest addition to the travelling environment in India. The
introduction and proliferation of computers, coupled with an increasing number of
ideal leveraging of the internet has prompted a few principal adjustments within the
tour industry (Bhayani. 2020). Online travelling in India is at a completely nascent
stage. Travelling has now no longer been focal point vicinity as there are some
softwares for enticing customers, while they're searching out for a few brief results.
The engagement degree of maximum customers has additionally been low with rare
utilization and loyalty. (Navaria 2021).However, all that is converted with the
highlight sharply centred on the entire tour booking. The conventional method of
shopping for airline tickets and partner tour preparations are hastily converting.
These adjustments are being facilitated through Internet tour marketplaces (which
include makemytrip.com, yatra.com, etc.) that declare to offer an easier, much less
luxurious opportunity to conventional techniques of price tag procurement without
sacrificing service quality. If your marketplaces are to achieve success, then they
want to apprehend their clients and what the motivations in the back of their
movements are, in terms of looking for bargain tours. (Bhayani and Bavaria 2021).
These businesses have begun the use of on-line advertising methods for 5
fundamental motives that may be expressed with five Ss viz. sell, serve, speak,
store and sizzle (Smith and Chaffey 2001).
Personalized websites, value-added services, targeted marketing, easy-to-use
self-service tools and sophisticated contact centre solutions aim to improve user
awareness, accessibility and autonomy. This also provides multiple opportunities to
build loyalty. (Chandra 2018). Businesses that develop a well thought out strategy
to drive customer retention through advances in technology can achieve impressive
results, leading primarily to reduced customer churn, nurtured (high margin)
customers, and long-term relationships, all of which positively affect the bottom
line (Samuel 2003).
A travel website provides travel reviews, trip fares, or a combination of both. Over
1.5 billion people book travel per year, 70% of which is done online.The travel
industry is constantly evolving, and the pace of change is now faster than ever
before, as emerging technology and shifting demographics alter expectations and
standard practices. This has been further exacerbated by COVID, which has
disrupted almost all aspects of travel. Of course, there are real opportunities for
companies that keep pace with the latest travel trends and embrace new ways of
doing business.(Mukherjee ,2021) The beauty of the travel websites can be seen in
the utilization that it provides to its customers like it saves time and money, the
online guys provide expert insights and a safety net to your trip, it’s easy to check
out what people say about them, and they can make your multi-destination holiday
seamless.(NS 2020)
The travel industry is concerned with providing services related to travel from one
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location to another. This includes services that are directly related to the travel
itself, such as transportation, but also includes services related to catering for
travellers’ needs and wants after they have arrived at their destination.( Ganesh L,
2017).By 2022 the Online Travel Market is expected to reach $1,091 billion,
growing at a CAGR of 11.1 percent between 2016 and 2022. Travellers can
schedule and book their trips more easily with the help of online travel agencies. It
provides fast and easy flight and hotel bookings, increased consumer confidence in
online payment, and the ability to compare various available travel options are
driving the online travel market.( Rao2017)
As consumers’ perceptions and attitude towards online travelling is a prominent
factor affecting actual buying behavior, this research has tried to investigate a
modest part of that area. Moreover due to increasing players in the online travel
industry, the consumers have different preferences and perceptions regarding them.
Despite the growing importance of the internet as an information source for
Prospective travelers, as a marketing tool and as a way of doing business, there is a
general lack of information related to perceptions of travellers for online travel
products and services. Understanding their attitude is also of critical importance to
travel marketers in formulating appropriate marketing strategies so as to fully
exploit the developing potential of this new channel. Literature review revealed that
researchers have tried to study online consumer shopping behavior in general but no
such specific study to understand consumers ‘perceptions related to online travel
has yet been done. Thus, the study will provide insights about the Internet users’
feelings towards information seeking and online travel booking and also help to
know their experience, level of satisfaction and Purchase intention in future. Thus
this research study would be useful to online travel marketers to better develop
appropriate strategies to enhance and promote ebooking to future users while
retaining existing customers and also to researchers as well as academicians
conducting research in this area in providing future direction.
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CHAPTER 2
LITERATURE REVIEW
A review of the literature is crucial because it provides the researcher with a broad
overview of previous studies. It aids in the avoidance of previous research errors.
This section of the study draws on a variety of sources of information, such as
books, journals, e-books, and newspaper articles about online travel portals.
1. The advent of digital has seriously disrupted the travel agent industry. High-street
delivery is a traditional mode of transportation distribution. Travel agencies, which
previously played a dominant position, have been transformed as online travel
agencies play a key role in direct distribution via airline and hotel websites. (Angelo
Rossini, a contributing analyst at Euro Monitor International)
2. Low-cost carriers and online travel portals have benefited greatly from travel
automation, which has changed the way people plan and book vacations in the
twenty-first century. The growth of independent travel has harmed tour operators,
who are now promoting it. In order to stay competitive, businesses must use online
and mobile channels. ( Rossini 2019)
3. Selling over the Internet is becoming a trend for most service providers. The
customer's purchase intention towards online purchases depends on whether they
accept the Internet as a delivery channel. that customers' attitudes towards online
shopping depend on transaction services, convenience, sensory experiences and
goods. (Shim et al. 2016)
4. This online customer satisfaction is divided into after-sales service, purchase
outcome and price attractiveness, product information, customer service, website
design, product attractiveness, payment method, website information and login
convenience. ( Kim 2004)
5. The determinants of trust in an online environment depend on predictability,
intentionality, ability, transference, and tangibility and interactivity. In transactions,
trust is a valuable catalyst for improving exchanges. (Famet 2003)
6. It seemed to pivot from an institution to become an internet broker even as the
web started to become an area individuals could finally trust with their credit cards.
The internet has changed the market landscape and encourages online bookings,
whereas few customers still like online chat or services of call centre officers in
handling on-line services. ( Mr. & Mrs. Arahant 2011)
7. Digital technology has changed the way people communicate with guests,
creating a 24/7 relationship in and out of stay. It’s also renovating every aspect of
friendly reception, from locating a building to checking in, unlocking your door, and
personalising your stay. As travel is inherently mobile, travellers expect to use their
mobile devices to counterpoint their travel experiences, ( Croix, vice-president of
marketing at Starwood Hotels and Resorts and Croix)
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8. The availability of free information does not guarantee that customers will use it,
this depends on the reliability and trust in the provider. The role of online travel
websites is to facilitate the accessibility of information and improve communication.
An efficient information system would facilitate customer satisfaction and help
build customer satisfaction. Businesses that are more focused on relationship
building are using the internet to achieve greater interactivity and improve customer
service and relationships. The ability to compare different products and services is
also possible in an online environment, thereby increasing customers' diversification
behaviour. (Smith 2004)
9. Hypothesize is that the online environment brings convenience to shoppers and
enables hassle-free and easy shopping. ( Evanschitzky et al 2006)
10. Showing product images has a greater impact on customers' purchasing
decisions than just listing product details. Customers can access product information
conveniently and conveniently. Online customer service has long been limited to the
quick delivery of products. (Koivumaki 2006)
11. E-commerce sites are primarily information sites facilitating effective
communications with customers. Customer satisfaction with online travel websites
is dependent on the informative, attractive and interactive nature of the websites.
(Jahng et al 2008)
12. Preferences and customer satisfaction with online travel websites depends on
accessibility, navigation, design, reliability and customization of the website. (van
Riel et al).
13. That the influence of value-based services, mobile terminals for exploring
various options, travel options and agent-based services can improve customer
satisfaction with a service.( Nysveen)
14. Make My Trip is one of India's oldest and most well-known e-commerce
businesses. MMT is no longer a start-up, having been listed on the National
Association of Securities Dealers Automated Quotations. Within a short span of
time,MMT has allowed for a lot of creativity within limits. (Mr. Anshuman
Bapnachief product officer Make My Trip , 2014).
15. Returns from those who book via offline channels such as travel agents or when
arriving at their destinations account for a large portion of our development. It's a lot
more convenient to book over the phone these days. People are confident that online
penetration in edifice bookings will increase from 20% to 40% to 50% in the next
three or four years. (Mr. RajeshMagow business executive and Co-Founder, Make
My trip 2014)
16. Preferences and customer satisfaction with online travel websites depends on
accessibility, navigation, design, reliability and customization of the website
language options, graphics and interactive nature of the website can induce greater
satisfaction and more sales conversions. Customers visiting or browsing a travel
website may not necessarily imply willingness to purchase online. (Nusair and
Kandampully )
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RESEARCH GAP
In this fast growing world, the online travel industry is the driving force in the
e-commerce segment and its importance is likely to increase in the future.Online
travel agencies are helpful in many ways as these provide an opportunity to explore
various options such as flights, hotels, car rentals, vacation packages, cruises, deals
and destinations, maps, business travels, etc. for travel at one spot. Also, the user
gets exposed to options that they may not have thought of before. Therefore
broadening their horizons of what type of travel arrangements are available to them.
Another pro for using an online travel agent website is the wide variety of products
that they offer.
Though the Internet is becoming the town square for the global village of tomorrow,
the speed in India is not as fast as the world is offering. People find it difficult to
stay connected to the internet all the time. Many places do not have internet
accessibility or have a low internet connection.
Many people of the age 35 and above prefer the old school method of booking
travel via travel agencies as they are not comfortable with the technology and find it
difficult to operate. They do not rely on the services provided by online travel
agencies and avoid using the same.
Development in technology always comes with a new style of fraud. Thus, anyone
using the internet is always in the fear of becoming a victim. This drives it hard for
people to book their travel via online travel agencies as they are scared of online
fraud. Many people still prefer to use offline mode as they find it more reliable.
They have a fear of losing money or their personal details being misused by a
stranger.
When people use offline mode of booking, they can contact their agent whenever
needed but while booking via online travel agencies they find it hard to contact an
agent and the queries are not responding on time. Resolution time of any query is so
long, instead of an individual with whom they can contact directly, OTA provides a
help window in which consumers have to choose their query from the given options
which makes it hard to choose as many queries are a combination of 2 or more.
They don’t feel confident of talking to the assigned online agent as they don’t know
if he/she will either understand and solve the query or not.
Thus, this study aims to fulfil this research gap that consumers face while or before
using the services provided by online travel agencies. It will also identify various
measures taken by online travel agencies to gain trust of their customers.
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RESEARCH OBJECTIVES
1. To identify the factors affecting customers’ purchase intentions towards online
travel products.
2. To evaluate the relationship between consumers’ online purchase intentions
and its antecedents.
RESEARCH MODEL
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CHAPTER 3
RESEARCH METHODOLOGY
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2. Variable Identification and Operationalization
Website I can go to exactly what I want quickly. (Tsang, et. Al., 2010)
Functionality
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Information Content Online travel agencies provide in-depth (Tsang, et. Al., 2010)
and Quality information.
Safety and Security I trust online travel agencies will not (Tsang, et. Al., 2010)
misuse my personal information.
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I am satisfied with the past travel
experience where booking was done
through Online travel Agencies (OTA).
3. Survey Instrument
The survey instrument is prepared by adopting the standardised scales for factors
affecting purchase intentions for online travel agencies (OTA) for Indian customers
(Tsang, et. Al., 2010; Thamizhvan&Xiaver, 2013). Demographics details are also
incorporated in the survey instrument like: age, gender, educational qualifications,
preferred travel sites, leisure travel frequency (Wang & Li, 2019).
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CHAPTER 4
Data analysis is the process of cleaning, analyzing, and visualizing data, with the
goal of discovering valuable insights and driving smarter business decisions.
1 Gender Male 52 52
Female 48 48
2. Age 20-30 86 86
30-40 12 12
40 and Above 2 2
Married 17 17
Graduate 42 42
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Post Graduate 25 25
Ph.D 3 3
Professional Courses 5 5
5. Occupation Student 73 73
Service/Salaried 12 12
Professional 9 9
Business 6 6
3-6 Lakhs 25 25
7-9 Lakhs 11 11
Above 9 9 9
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The table 3 and graphs show the personal profile of the respondents. The gender
distribution of respondents reveals that 52 percent of respondents are male and the
remaining 48 percent are female. The age distribution of the respondents shows that
the majority of respondents (86%) are between the ages of 20-30, with just 12%
being 30-40, 2% being between the ages of 40 and above
According to the distribution of respondents by education, 25 percent are Senior
Secondary, 42 percent are Graduates, 25 percent are Post Graduates, and 3 percent
are Ph.D. Professional education is held by 5% of those polled. According to the
occupation distribution of respondents, 73 percent are students, 12percent are
salaried, 9 percent are professionals, and 6 percent are business owners.
The income distribution of respondents shows that the majority of respondents, 55
percent, earn below 3 lakhs and 3-6 lakh 25 percent of respondents,7-9 lakhs11
percent, 9 percent of respondents have an annual income of more than 9 lakh rupees.
RESEARCH HYPOTHESIS
ANOVA
ANOVA is the test of significance between Consumer Awareness & Different ages
of Respondents.
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a. Dependent Variable: purchase intention
b.Predictors: (Constant), safety and security, appearance and presentation,website
functionality, information content and quality
The above table indicates that the significant value is 0.001 which is greater than
(P>0.05), hence the null hypothesis is accepted.
REGRESSION
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MODEL SUMMARY
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CHAPTER 5
DISCUSSION
This research study aims at understanding the consumer perception toward online
travel agencies .Online consumer behavior is a broad and interesting area of study
that can Benefit organizations in their efforts to market and sell travel products and
Services online. As consumers’ perceptions and attitude towards online travelling is
a prominent factor affecting actual purchase intention, this research has tried to
investigate a modest part of that area.
According to the distribution of respondents, 52 percent of respondents are male and
the remaining 48 percent are female. The age distribution of the respondents shows
that the majority of respondents (86%) are between the ages of 20-30, with just 12%
being 30-40, 2% being between the ages of 40 and above
According to the distribution of respondents by education, 25 percent are Senior
Secondary, 42 percent are Graduates, 25 percent are Post Graduates, and 3 percent
are Ph.D. Professional education is held by 5% of those polled. According to the
occupation distribution of respondents, 73 percent are students, 12percent are
salaried, 9 percent are professionals, and 6 percent are business owners.
The income distribution of respondents shows that the majority of respondents, 55
percent, earn below 3 lakhs and 3-6 lakh 25 percent of respondents,7-9 lakhs11
percent, 9 percent of respondents have an annual income of more than 9 lakh rupees.
Factor analysis has been used to identify factors affecting consumer perception
toward online Travel Agencies as it attempts to identify underlying variables, or
factors, that explain the pattern of correlations within a set of observed variables.
The Value of Anova is greater than 0.05 hence the null hypothesis is accepted.
Hence it showed the significance relationship between Dependent Variable
(Purchase Intention) and Independent Variable (safety and security,appearance and
presentation,website functionality,information content and quality.)
1.Appearance and Presentation - Is online look attractive to customers,does online
travel agencies look organised to customers etc.
2.Website Functionality - Does online travel websites have well arranged
categorised,Do online travel agencies have what customer needs.
3.Information Content and Quality - Does online travel agencies provide updated
information.
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CONCLUSION
As per the data collected from various sites and the responses of the questionnaire,
this study concludes that customer perception is dependent on many variables like
website functionality, appearance and presentation, information content and quality,
safety and security has significant impact on the purchase intention of consumers. If
they perform well, customers will attract towards the OTA Platform and enjoy their
usage for booking.
IMPLICATION
To make the theoretical contribution of this research easier to follow, the findings
have been presented according to the research objectives outlined in the
introduction.
(a) There are various factors which affect the customer perception towards online
travel portals. These are Privacy and reliability, Easy accessibility, Time saving,
Customized benefits , Assurance of security , Easy to use , Individual attention and
Likability.
(b) The effect of Easy to use is that the customers can use these portals without any
hassle and they get proper and complete information from these portals.
(c) The effect of factor privacy and reliability is that the customer while purchasing
emphasizes more on their privacy and reliability of online portals.
(d) Online travel portals are considered as easily accessible. The “easy accessibility”
attribute can increase the use and adoption of Online travel portals.
(e) These portals provide customized benefits as they can customize their services.
MANAGERIAL IMPLICATIONS
Consumers are price-conscious and are attracted towards an OTA offering by
promotional offers. The firm's strategy in this respect should be:
I. Give the usual promotional offers that other OTA sites do, like cash back offers on
usage of certain credit cards.
II. Provide free service of cab pickups and drops on certain flights (with price
exceeding a certain base amount).
III. Give small discounts on complete holiday packages, among others.
Easy and quick access to customer care acts as a reassuring factor and increases
customer satisfaction with service offering.
Usability of site is an important criterion affecting choice of an OTA site. The
start-up firm should not just create a user-friendly interface, but streamline the
process of booking tickets by creating a simple 2-step process. Through this, it
should be ensured that the time for a typical booking is around 5 minutes.
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Users are increasingly asking for door-to-door service and a wide range of features
such as cab pickups and special care at airports. By providing the complete package,
the company can create differentiated offerings and thus charge a small premium.
Considering that mobile penetration is growing at a faster rate than Internet
penetration, this mode of sale should not be ignored. Referrals seem to play a
significant role in the consumer choice process. Use of network marketing &
word-of-mouth advertising, collaboration with online metasearch travel engines is
recommended.
LIMITATIONS
1. There are only Four variables in this study.
2. All the 100 respondents are from Delhi NCR.
3. The study indicates the responses drawn from the majority of Online travel
portals falling in the age group of 18-30 years. The research shows that the
majority of the respondents surveyed were from students.
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ANNEXURE
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PLAGIARISM REPORT
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