Disintermediation Threat: How and What Strategies are Used by Traditional Travel Agency to Survive?

Abstract

Tourism operations and businesses have changed since most of these industries have utilised internet and technology. The modernisation of technology has made all the online activities easier where people can get rapid internet access besides making a secure transaction online, and receive express services. Without realising, this has led to disintermediation in the tourism industry where people can directly communicate with the supplier. Considering disintermediation as an important issue and problem, this research is about identifying the strategy and approach that have been applied by the travel agencies if they are exempted by the tourism provider in Malaysia. A qualitative approach is considered the appropriate technique for exploring this issue. Findings show that disintermediation has affected both the positive and negative effects to travel agents, therefore the travel agent should take disintermediation as one of their risks and an opportunity in maintaining their future business. The results also indicate that product differentiation is one of the useful strategies in sustaining their future travel agent business.