The Impact of the Internet on Saudi Arabia Travel Agencies

Abstract

This study investigates the impact of the Internet revolution on travel agencies on Saudi Arabia’s travel agency market. A reliable and valid three-part questionnaire was developed: the first part collects the basic information on the travel agencies; the second part examines the extent to which travel agencies use the benefits of the Internet for their operations; the last part measures the real impact of the internet on travel agencies with four dimensions. A sample of 50 travel agencies fully participated in this study. The descriptive data of the sample indicates that the travel-agency industry in Saudi Arabia is still very small; more than 50% of the agencies operate with less than five employees in one or two branches only. More than 55% of the agencies have less than four years of experience and relatively small capital. In addition, the descriptive data reveals that 72% of the agencies in the sample do not have their own websites, and only 4% of the agencies have websites with features that complete customers’ transactions without human involvement. The main results assure the importance and the benefit of using the Internet for Saudi Arabia travel agencies; however, they have not yet used most of its advantages. Moreover, they do not see any threat or negative impact to their business from the Internet. A number of recommendations have been provided to this industry, such as using the power of the Internet as a global competition tool, and the opportunity of a major emergence among travel agencies in this market.