The Decision Making in Selecting Online Travel Agencies: An Application of Analytic Hierarchy Process

Abstract

ABSTRACT. The emergence of Internet-based distribution channels has created both opportunities for and challenges to the travel agencies. Based on the customer-value perspective, this study focused on exploring the relative weights of the nine proposed fundamental travel products from an Internet perspective.The study cohort comprised customers who had purchased room products from travel agencies websites, with data collected using a questionnaire survey. Customers were surveyed during a 3-month period at Taipei International Airport. Excluding useless questionnaires resulted in 131 respondents, corresponding to a response rate of 18.71%.We found that privacy, safety, and product quality were the three most important factors influencing customer purchases of room products on the Internet. The results of this study have some implications for travel agencies-companies will need to make a significant investment in website design of safety mechanism, and the greater the effort managers make to alleviate these concerns, the more likely it is that consumers will visit and buy products on their website.

Online travel purchasing: A literature review

“…Actually, a significant number of the articles reviewed provide evidence to support the importance of lower prices on consumers' decision to purchase travel online (e.g., Bai et al, 2004;Kim, Kim, & Han, 2007;Li & Buhalis, 2006;Wong & Law, 2005). Notwithstanding several researchers' claims of the importance of price, Ku and Fan (2009) argue that consumers purchasing travel online consider privacy and safety more relevant than price.…”

“…Price affects intentions to purchase travel online. Ku and Fan (2009) Price is not a main factor attracting consumers to purchase travel online. Consumers consider privacy, safety, and product quality more important when purchasing travel online.…”

“…Inaccuracy/manipulation of personal data Brown et al (2005Brown et al ( , 2007 Concerns with manipulation of personal data do not affect actual online travel purchases or intention to purchase travel online. Concerns with overall privacy Ku and Fan (2009) Concerns with privacy were one of the main factors considered by consumers purchasing travel online. Overall perceived risk Kolsaker et al (2004) Strong negative correlation with willingness to purchase airline tickets online.…”

“…It affects e-satisfaction and online purchase intention. Ku and Fan (2009) Not a main factor attracting consumers to purchase travel online. Mayr and Zins (2009) Online shoppers value convenience.…”

“…Kamarulzaman (2007) It is not associated with the adoption of online travel shopping, but is negatively associated with perceived usefulness. Ku and Fan (2009) One of the main factors considered by customers purchasing travel online. Kim et al (2009) Nonpurchasers perceive higher risks than online purchasers when purchasing airline tickets online.…”