Poor connection speed Factors Influencin g the Consumers’ Online Information Search

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2.10 Barriers of online marketing for travel agencies

1. Limited knowledge of available technology 2. Lack of awareness of online marketing 3. Cost of initial investment 4. Lack of confidence in the benefits of e-commerce 5. Cost of system maintenance 6. Cost securing skilled human resources 7. Shortage of skilled human resources 8. Difficulty with integrating online marketing and existing system 9. Cost of training human resources for online marketing 10. Insufficient infrastructure 11. Lack of government support 12. Relatively small online market size 13. Fear of changes in corporate culture 14. Resistance to adoption of online marketing

2.11 Online marketing and disintermediation of travel agencies

Various studies have shown the direct fit of the Internet and travel and tourism products Buhalis and Licata 2002; Christian 2001; Poon 2001. With the emergence of the internet, the process of fast information transmission can be addressed effectively at a low cost. In other words, tourists can now receive comprehensive, timely and relevant information in a virtual environment to assist their decision-making process. This, in turn, necessitates the balancing of perishable tourism industry is diversified, with a plethora of different suppliers that operate independently, even as tourists expect travelling to be a complete experience. To resolve this mismatch, the internet offers an effective means for developing a single and sustainable electronic infrastructure for information gathering and business transactions for both travelers and suppliers. A natural outcome of this is that the suppliers can carry out one-to-one marketing and mass customization. In other words travel suppliers can now understand each customer’s needs, and therefore target each customer individually and deliver tailor-made products. More importantly, travel suppliers can understand how to