Chapter 5

The Impact of Online Marketing in

Travel Agency
Ahmad Albattat

Abstract
Online marketing become a trend in recent years focussed on online social
networks, such social networks have rapidly grown in popularity; providing
platforms to the marketing of products and services for the hospitality indus-
try. Online marketing offers media technologies that can facilitate online func-
tionality and monitoring perspectives wherein the data gathered can be used
to develop their services for customer satisfaction. The purpose of this study
is to study the impact of online marketing in travel agency. The data collected
using google online survey and analysed using SPSS. The findings stressed
that online marketing in travel agency has a positive relationship in increasing
the sale of packages in travel agency. Travel agencies who use online market-
ing more frequently receive more correspondence. Therefore, travel agencies
should use online marketing to generate more income. The value of time has
also changed, making communication a process that has to be instant and
simplified. Hence, travel agencies have to use online marketing and taking into
account travellers feedbacks and complaints as well as delivering information
about products and services in real time. Travel agencies have no chance to
face their competitors if they don’t adopt online marketing strategies.

Keywords: online; marketing; travel agencies; social media; strategy; ICT;

tourism

Introduction
The internet continues to grow as both a source of information and a marketplace
for transactions with significant implications for the wider economy. More than
one-third (34.3%) of the global population has access to the internet, a growth
rate of over 550% since the year 2000 (Anderson, 2009). Similarly, 17% of the
world’s population has access to the internet via a mobile device. These shares are
The Emerald Handbook of ICT in Tourism and Hospitality, 85–96
Copyright © 2021 by Emerald Publishing Limited
All rights of reproduction in any form reserved
doi:10.1108/978-1-83982-688-720201006
86    Ahmad Albattat

even higher among travellers. The internet has revolutionised the travel industry
both as a source of information and as a sales channel. Online marketing, pho-
tographs, and consumer reviews are bringing destinations and attractions to the
screens of potential travellers around the world. The ease with which a customer
can review and compare travel options opens up new markets for both large and
small businesses. And the ability to confirm prices and purchase services online
benefits travellers and businesses alike. The rapid development in internet tech-
nology has affected the tourism business globally in various ways. Marketing is
one sector where the internet has greater influence. The internet has become the
most effective and convenient means of marketing. Small shops to large chain
hotels have successfully used internet as their marketing tool especially through
their own website. Similarly the internet also plays a significant role in destination
marketing and a website can build the global brand for a destination.
Technology and the internet have created a revolution in tourism marketing.
The internet not only inspires and provides consumers with information on poten-
tial travel destinations, but also enables them to take immediate action by booking
online. And, this is only the beginning of their online engagement, as the internet
continues to play a role during the vacation as well as long after the visitor returns
home. Mobile devices are a primary source of influence on the decisions visitors
make while they are exploring and enjoying their destination and allow frequent con-
tact with friends and family. Travellers send immediate reports about their trip expe-
riences through email, text messaging, and social networks. Once they return home,
they leave ratings and reviews online to assist other people in their trip planning.
The hospitality industry tends to be very customer-centric and also one that
prides itself by reaching out to its guests and providing a personalised experience.
In traditional marketing, human lives are saturated by print media, radio, and
television. The downside of traditional marketing is the high cost and it is a one-
way communication. Social media encourages customer engagement, and it being
on Web 2.0, promotes two-way traffic. It allows for a faster response and a low
cost investment than is typically achieved with traditional marketing. Through
social media, consumers share experiences with and suggest ideas to others while
developing new relationships within their communities. For this reason, many
hospitality firms consider social media a powerful tool to enhance consumer loy-
alty and satisfaction (Kasavana, 2008).
Researchers wish to investigate these questions in an effort to highlight where
advertisers have options to expand current, and develop new concepts that will
give companies the option of targeting their campaigns even further. What are
the alternative options? To understand the options available, a review of exist-
ing thoughts on the topic is needed. A thorough presentation of the approaches
travel agency can undertake, and how they affect the outcome. Moreover, differ-
ent options of advertising online will be discussed, and a presentation on already
done material will highlight where the current potential is, and what should be
carefully considered before use. This section should develop into some considera-
tions, which expand into the option of carrying out some empirical studies. Are
travel agency companies aware of and how do they use online marketing? Though
this chapter is not meant to give a conclusion on the matter, or become a guideline
 The Impact of Online Marketing in Travel Agency    87

of what to do (and not do) as a business, there will be points that lead to several
statements, that alone could raise new questions, and therefore this chapter will
end with a reflection of the project and topic. The objective of this study is to
study the relationship between online marketing and travel agency.

Literature Review
Marketing
Marketing is a societal process, which discerns consumer’s wants, focussing on
a product or service to fulfil those wants, attempting to mould the consumers
towards the products or services offered. Indeed, marketing is fundamental to
any businesses growth. The marketing teams (marketers) are tasked to create
consumer awareness of the products or services through marketing techniques.
Unless it pays due attention to its products and services and consumers’ demo-
graphics and desires, a business will not usually prosper over time. Essentially,
marketing is the process of creating or directing an organisation to be successful
in selling a product or service that people not only desire, but also are willing to
buy. Therefore good marketing must be able to create a ‘proposition’ or set of
benefits for the end-customer that delivers value through products or services.
Some strategies and guides have a price, that’s an added expense for that user.
However, these costs might be argued as good for the organisation ultimately.
The cost put in acquiring these marketing guides could quickly be offset with
the increased traffic generated through proper marketing strategies, which could
bring about more customers and finally, more profits. Fortunately, these types of
online marketing guides are readily available for public use over the web, though
many are tied to short hints and tips. All an end user has to do is search. Also, one
has to certain you differentiate actual marketing guides from scams that depend
on the users have to acquire info on this subject. Some scams are obvious at first,
however, many actually be capable of pass themselves off as legitimate websites
that supply marketing advice and solutions. Users have to be wary to never trust
the info found on internet websites (Pallant, 2010).

Promotion
The way the product is promoted also influences the buyer behaviour, not only with
regard to the actual product but also to the surrounding parts (i.e. the promotion
of the warranty or the company’s reputation). Promotion can be divided in five
subcategories: Advertising is seen as a tool to communicate broadly. The general
purpose of advertising is to persuade potential customers to purchase or to con-
sume more of a particular brand or product. All types of media are used to deliver
messages, including television, radio, cinema, magazines, newspapers, video games,
the internet, and billboards. The travel agency can use a word-of-mouth (WOM) as
one of the medium to market the product. WOM can take a lot of forms, the most
common and known is the personal review of a friend or family member. Research
claims that WOM is more effective than advertisements because WOM gives the
receiver the feeling of ‘people like me’. Therefore, WOM is considered one of the
88    Ahmad Albattat

most influential communication channels and when it is positive, it is considered

one of the best predictors of business growth (Bock, Lee, Kuan, & Kim, 2012).
The difference between WOM communication and online reviews is merely the
context (online and offline) in which they are provided. But they are both con-
sumer-generated information sources (Silverman, 1997). WOM is perceived as reli-
able, credible, and trustworthy because of the following two reasons. First this form
of communication is always face-to-face, direct as opposed to the many forms of
indirect communications. Secondly in WOM communication it concerns consum-
ers instead of marketers. The communicator does not have a hidden agenda; he is
independent from the marketer (Arndt, 1967). Electronic WOM has a couple of
advantages when compared to with regular or traditional WOM. Within electronic
WOM the message is not only shared via a conversation between two (or more)
acquaintances but also viewable for a larger group of people (Park & Kin, 2008).

Online Marketing
Paperless online ticketing system provides not only cost reduction but also time
saving benefits (Chao, Mockler, & Dologite, 2009). Although the total elimination
of paper may not be practical for every business, even a small reduction may yield
cost savings, increase efficiency, and improve the security of documents. A paper-
less environment, whether it be a start-up company or a developed, well-established
corporation with policies and procedures, will always be beneficial to the company.
Thompson (2002) concluded that travel agencies can gain the following advan-
tages by using internet marketing sales can proceed in all-day, year-round market-
ing broadcasting, updates to travel information can take place any time without
a printing fee, costs are reduced through the integration of paper and electronic
media with multimedia materials, travel agencies can supply hyperlinks with travel
information through which consumers can learn and seek more services, com-
panies enjoy better selling effects when consumers initiate their own browsing of
travel information on the internet, customers can buy the travel products they want
directly, and online marketing techniques can focus on a specific target population.
According to Mill and Morrison (1985), the customers’ buying process fol-
lows the following stages: need awareness, information search, and evaluation of
alternatives, purchase, and post-purchase evaluation. In these stages, a critical
issue is the convenience of obtaining information, including travel destination
and travel itinerary. Therefore, online marketing allows travel agencies to provide
much more complete and convenient travel information without the limitation of
time and distance. Because of these features that remove such cumbersome bar-
rier for travel agency salespeople, online marketing has become the new develop-
ment area of marketing management for travel agencies.

Design
Definition for design is a road map or a strategic approach for someone to achieve a
unique expectation. It defines the specifications, plans, parameters, costs, activities,
processes, and how and what to do within legal, political, social, environmental,
 The Impact of Online Marketing in Travel Agency    89

safety, and economic constraints in achieving that objective. A good website come
with attractive design and provide a variety of different functions to the website
with a custom and template function very mesmerising eyes of those who visit the
website. Designs that are simple design and quality make visitor easier to find the
information plus can attract more people to visit the website and indirectly can
increase the sales of packages. A professional looking website is important for your
business credibility. If your website looks amateurish, consumers will think your
business runs the same way. The design of a website is what entrepreneurs often
care most about and often creates the most tension between a web designer and the
business owner. This frustration can be avoided if the steps above have been fol-
lowed and both you, and your designer, clearly understand, before the design pro-
cess starts, how the information needs to flow and where it needs to reside to create
a positive visitor experience. Respect the skills your designer brings to the table, and
only step in when things are clearly off track. Trust their expertise and judgement.
Your website will be better for it. Designers will often create mock-ups for one or
two pages for your website for you to comment on, and refine them based on your
feedback. They will use this process to get to a point where you are happy with the
design of the website before they flesh out all other pages.

Information
Information shortened as info is that which informs. In other words, it is the
answer to a question of some kind. It is also that from which data and knowledge
can be derived, as data represents values attributed to parameters, and knowledge
signifies understanding of real things or abstract concepts. Provide information in
the website or can be interpreted as a communication language used introductory
news print and electronic media. The information should use standard language,
or in other words must be in accordance with Spelling Enhanced. In addition, the
information language also should be easily understood by the visitor of the web-
site, because the visitors do not have enough time to understand the words that
are difficult in the website. Readers do not have the attention span to the writings
of a long and often are not interested in the writings so long. The information
must be concise and packed and easily understood.

Picture
Picture is an artefact that depicts visual perception, for example, a two-dimen-
sional picture that has a similar appearance to some subject usually a physical
object or a person, thus providing a depiction of it. It is a further support that
so noted by visitors. For that, select the image that reflects the content of your
website. Each detailed content and pictures on the website should be interesting.

Colour
Colour is the visual perceptual property corresponding in humans to the cat-
egories called red, blue, yellow, etc. Colour derives from the spectrum of light
90    Ahmad Albattat

interacting in the eye with the spectral sensitivities of the light receptors. Colour
selection plays an important role in the logo and website of the business. Colour
may imply a strong emotional significance to the audience. Marketing study even
explained that the colour can push the subconscious perception and consumer
behaviour.

Price
According to Schindler (2012), in ordinary usage, price is the quantity of pay-
ment or compensation given by one party to another in return for goods or ser-
vices. Price is the biggest reason why the visitor will ignore the website, so that
to increase the sale must display the price properly in a website design. Display
prices clearly and can be read by visitors.

Theoretical Framework
According to Fig. 1, this study are used direct framework, the researcher used
website as their independent variable. The multidimension of the independent
variable consists of design, information, picture, colour, and price. Increase the
sales of packages is the dependent variable as the main objective for this study.

Research Methodology
Quantitative research is being carried out as questionnaires are distributed as the
mean to collect evidences for the study. The data collected through distribution
of questionnaires (Venkatesh et al., 2013). The target population of this study
would be the travel agencies online that will answer the questionnaire (Sekaran &
Bougie, 2010). Travel agencies operate in Kuala Lumpur chosen as respondents
to ensure the validity of the data. Sample random sampling is adopted as the
sampling technique to collect the information for this study. The questionnaire is
divided into three categories are part A, part B, and part C to study the impact of
online marketing in travel agency. The data interpreted and analysed using Statis-
tical Package for Social Sciences (SPSS20) and Google online survey.

Online Marketing
1. Design Travel Agency
2. Information Increase the sales of
3. Picture packages
4. Color
5. Price

Fig. 1.  Study Framework (Source: Developed by the Author).

 The Impact of Online Marketing in Travel Agency    91

Table 1.  Descriptive Analysis.

Demographic Factor Categories Frequency %

Gender Male 38 38.0

Female 62 62.0
Age Below 20 years old 1 0.1
21–30 years old 79 79.0
31–40 years old 14 14.0
Above 40 years old 14 6.0
Job Government 15 15.0
Private 36 36.0
Others 49 49.0
Education High School 5 5.0
Diploma 28 28.0
Bachelor 63 63.0
Postgraduate 4 4.0
Marital Status Single 72 72.0
Married 23 23.0
Others 5 5.0
Total 100 100.0
Income Less than $250 1 1.0
$251–500 40 40.0
$501–1,000 45 45.0
More than $1,000 14 14.0
How many times you 1 Time 20 20.0
travel per year 2 Times 24 24.0
3 Times 30 30.0
4 Times 2 2.0
5 Times 3 3.0
More than 5 times 21 21.0
Source: Fieldwork data.

Data Analysis and Findings

Table 1 shows the frequency of male and female who participate in the question-
naire. The total number of respondents is 100. Out of the total respondents, 38
respondents or 38% are male and 62 respondents or 62% are female. The age
range of respondents out of the total respondents, 1 of respondent with 1% are
92    Ahmad Albattat

age under 20 years, 79 of respondents or 79% are age 21–30 years, 14 of respond-
ents or 14% are age 31–40 years, and 6 of respondents or 6% is age over 40 years.
For marital status out of the total respondents, 72 of respondents with 72% are
single, 23 of respondents or 23% are married, and 3 of respondents or 3% are
other. The job specification, 15 of respondents with 15% are government sector,
36 of respondents or 36% private sector, and 49 of respondents or 49% are other
sector. For educational background, 5 of respondents with 5% are high school,
28 of respondents or 28% are diploma, 63 of respondents or 63% are bachelor,
and 4 of respondents or 4% are Postgraduate/Master/PhD. Income range, 1 of
respondents with 1% are income less than $250, 40 of respondents or 40% are
income $251–500, 45 of respondents or 45% are income $501–1,000, and 14 of
respondents or 14% are income over $1,000. And for how many time you travel
per year. Out of the total respondents, 20 of respondents with 20% are responders
travel one time per year, 24 of respondents or 24% are responders travel two times
per year, 30 of respondents or 30% are responders travel three times per year, 2
respondents with 2% are responders travel four times per year, 3 respondents with
3% are responders travel five times per year, and 20 of respondents or 20% are
responders travel more than five times per year.
Table 2 shows the frequency of different how many time you buy a packages
from travel agency, 55 of respondents with 55% are responders one time buy
a package from travel agency, 10 of respondents or 10% are responders two
times buy a package from travel agency, 12 of respondents or 12% are respond-
ers three times buy a package from travel agency, 21 respondents with 21% are
responders four times and above buy a package from travel agency. For what
do you consider when buy a packages from travel agency, 51 of respondents
with 51% are responders that consider price when buy a packages from travel
agency, 23 of respondents or 23% are responders that consider location when
buy a packages from travel agency, 20 of respondents or 20% are responders
that consider service when buy a packages from travel agency, six respondents
with 6% are responders that consider a suggestive selling technique when buy
a packages from travel agency. The type of medium you use to buy a pack-
ages, 56 of respondents with 56% are responders that choose online as the type
of medium to buy a packages, 12 of respondents or 12% are responders that
choose phone call as the type of medium to buy a packages, 32 of respondents
or 32% are responders that choose direct buying as the type of medium to buy
a packages. Get an information and promotion regarding the packages through
newspaper, 18 respondents with 18% are responders that get an information and
promotion regarding the packages through friend. About the frequency of how
you plan your trip, 65 of respondents with 65% are responders that plan the trip
by itself, 35 of respondents or 35% are responders that plan the trip through a
travel agent. For how much time do you prefer to spend on travel agency site
each visit, 35 of respondents with 35% are responders that spend less than half
and an hour on travel agency site for each visit, 47 of respondents or 47% are
responders that spend half an hour to one hour on travel agency site for each
visit, 17 of respondents or 17% are responders that spend more than an hour on
travel agency site for each visit.
 The Impact of Online Marketing in Travel Agency    93

Table 2.  Respondent Psychographic Profile.

Demographic Factor Categories Frequency %

How many time you buy a 1 Time 55 55.0
package from travel agency 2 Times 10 10.0
3 Times 12 12.0
4 Times and more 23 23.0
What do you consider when Price 51 51.0
buy a package from travel Location 23 23.0
agency
Service 20 20.0
Suggestive selling technique 6 6.0
Which type of medium you Online 56 56.0
use to buy a packages Phone call 12 12.0
Direct buying 32 32.0
How many percent you spend 10% 50 50.0
from your income to buy a 15% 24 24.0
packages
20% 12 12.0
25% and above 14 14.0
How many times do you open 1 Time 24 24.0
a travel agency website in five 2 Times 14 14.0
years
3 Times 14 14.0
4 Times and above 48 48.0
How do you get an Website 70 70.0
information and promotion Television 5 5.0
regarding the packages
Newspaper 7 7.0
Friend 18 18.0
How do you plan your trip By yourself 65 65.0
Through a travel agent 35 35.0
How much time do you prefer Less than half an hour 35 35.0
to spend on travel agency site Half an hour to one hour 47 47.0
each visit
More than one hour 18 18.0
Source: Fieldwork data.

Table 3 shows that how often use the internet for the following purpose. The
reason for using website, the highest mean score in the question for much easier
which is (M=4.33; SD=0.711) followed by save time (M=4.27; SD=0.723), more
relaxing (M=4.23; SD=0.763), more efficient (M=4.20; SD=0.725), and save
money has the lowest mean which is (M=4.08; SD=0.748). The factors
94    Ahmad Albattat

Table 3.  Respondent Website.

Item Mean SD
How often you use the internet for the following purpose?
Search about the information of place 4.15 0.709
Surfing (e.g. about the famous place) 4.14 0.786
Looking for a travel agency 3.60 1.053
Shop online for travel/vacation 3.70 1.047

Reason for using website?

Save time 4.27 0.723
Save money 4.08 0.748
More relaxing 4.23 0.763
Much easier 4.33 0.711
More efficient 4.20 0.725

Factor affecting people to use the website

Does colour play a role in the use of the website? 4.15 0.716
Does the information give a benefit to the user? 4.22 0.705
Does picture attract user to visit the website? 4.32 0.709
Does price affect the selection of a package? 4.30 0.718
Does the design of the website can attract the user 4.10 0.718
to see the packages?
Source: Fieldwork data.

affecting people to use the website, picture attract user to visit the website (M=4.32;
SD=0.709) followed by price affect the selection of a package (M=4.30;
SD=0.718), information give a benefit to the user (M=4.22; SD=0.705), then
colour, design came lastly. The Cronbach’s alpha based on standardised items is
0.866. This means that the scale is reliable for the study on the impact of online
marketing in travel agency.

Conclusion
Travel agencies are already using online marketing networking websites to reach
customers. The results of this study indicate that users receive and use the promo-
tions they receive through online marketing. Moreover, because no statistically
significant differences were discovered between genders in terms of online mar-
keting usage, companies are able to utilise online marketing to reach all custom-
ers. Overall, travel agency who use online marketing more frequently receive more
correspondence from companies, and these travel agency then use the promotions.
 The Impact of Online Marketing in Travel Agency    95

Therefore, businesses should use online marketing to obtain the high income.
Online marketing has shifted and is still shifting the way people communicate and
the way they select the information, which has consequences on how they decide
to buy some product or service. The value of time has also changed, making
communication a process that has to be instant and simplified. Hence, businesses
have to used online marketing and to deliver the content people are looking for.
People are owning the information and businesses have to look transparent to
consumers, by interacting with them and taking into account their feedbacks and
complaints as well as by delivering information about products and services in
real time. Businesses’ performance is definitely affected this way and they have no
chance to face their competitors if they don’t adopt online marketing strategies.
All of these independent variables act an essential role in affecting travel agencies
in increase the sale of packages.

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