2. E-commerce Business Model
A business model is a set of plans that are used for making profit in the marketplace. The business model reflects the strategies chosen by the company for creating competitive advantages among their other travel competitors. (Laudon & Traver 2017, pp.326–336) To ensure the business model are effectively operate, we will describe five effective components of the e-commerce need to be taken into consideration for Online Travel Agencies website as follow:
2.1 Value proposition
The value proposition is the vital and essential elements for the travel company. A value proposition is how the travel’s company travel packages and services fulfilled the needs of local and overseas travellers. Before the Online Travel Agencies, such as Expedia or Booking.com, travellers used to go traditional travel agency to enquiry and make a reservation of the travel destination and tour packages that they preferred. However, not all travel agency has all the various types of travel packages. Thus, the customer may have to visit different travel agencies to find out the travel packages that they wanted. TourSmart
is a Business to Consumer retailer. The main value proposition is offering the various categories of tour packages with the lowest prices. By having the Online Travel Agencies, such as TourSmart
, that offers variable customised tour packages according to the different city (Auckland, Wellington, Queenstown and Christchurch) and different seasons accordingly to the popularity of the tour packages. Therefore, customer happy with the customised tour provided by TourSmart,
can 24/7 accessibility to TourSmart
to check and search for availability of the tour packages base on the date, duration and price of the travel package with any time and place constraints. TourSmart
also provides 10% price discount for instant confirmation to attract travellers. By lowering the tour packages price. In addition, TourSmart
also provides loyalty program to the travellers who always travel to write comments about the tour packages provided by the tour experts by earning rewards points for activities that customer participates in the TourSmart.
Hence, customers can use those points to pay for part of their purchase with TourSmart.
2.2 Revenue model
In the TourSmart
, we are using the sales revenue model by draw profit directly from the sales of tour packages to travellers. For instance, TourSmart
offers distinctive tour packages based on the different sizes of the tour group and with the tour guide or self-guided and budget or luxury accommodation for every customer needs. On the other hand, TourSmart
also uses the advertising revenue model to advertise our distinctive customised tour packages and online video to display tour services and video advertising. The user can view the services provided by TourSmart
to make the decision which tour packages to select and based on their needs and suitability. TourSmart
also provides account registration to the customers for booking, and the customer can subscribe to their weekly or monthly newsletter to have their exclusive offers and latest travels deals from time to time. Furthermore, the customer who registered with TourSmart
will receive 5 percent discount on their first order. This registration and subscription with TourSmart
is free of charge to travellers and save more money for them. In addition, TourSmart
also pursues market strategy as a "one-stop shop” which offers hotel and transportation booking to assist in their purchasing decisions in order differentiate TourSmart
from the competition with other competitors. TourSmart
makes money through commission fees received from affiliate with Hotel and transportation company.
2.3 Competitive advantage
is a leading online tour agency as compared to its original online competitors such as Tours.com, have lost businesses. The main competitors mainly are local travel agencies and providing tour packages catalogues while Tour Smart's main competitive advantages are the establishment and patented a brand name as “TourSmart
” that it will be difficult for the competitors to duplicate. It’s hiring and develop more experienced, knowledgeable and loyal tour experts and employee base than other competitors. TourSmart
also provides cheaper tour packages by the affiliate with the hotel and airlines company, where they can get business and it can earn revenue through sales of services with the cheapest price and provide promotion code and discount to usual traveller booking with them.
2.4 Market strategy
uses a “bricks-and-clicks” market strategy. At first, it was traditional tour agencies located at several different locations and leveraged its brand to the e-commerce environment. TourSmart
can promote by allowing the travellers that booked with them before to leave the review on their website and gain the rewards point to purchase for the tour packages or accommodation that they may interest in future. Meantime, TourSmart
also creating an online survey to the travellers on the tour packages they booked and each survey result with providing the useful and vital information to the TourSmart
to improve its services.
providing lower prices not only to the local but also to the global market if traveller have a valid visitor visa to New Zealand. TourSmart
also providing email marketing by subscribing to its subscriber list through receiving the free email newsletter about the exclusive offers and latest offers to attract more customers.
2.5 Organisational Development
Customer can find the information about TourSmart's management team and organizational structure by clicking on "About Us" page. TourSmart
needs to have a well-planned organisation development for the outcomes of globalisation. It's having to organise the works that need to be accomplished according to the functional departments such as management, customer services, marketing and finance. Jobs within the functional department are defined and allocated to the employee based on specialised experience and knowledge and responsibilities. Normally, there will one employee will handle few job title and responsibilities on electronic tourism, however, once the TourSmart turning to the global market, recruiting become more specialised. For instance, there is one marketing manager needed for the local e-tourism, after the businesses grow steadily, TourSmart must recruit several marketing individuals to handle separate jobs derived from a marketing position. Therefore, the organisation develops into the well-organised globalised e-tourism with many employees, departments and managers to responsible for the various aspects of the organisation.
3. Clickstream Behaviour
Clickstream behaviour is a sequence of clicks that customers browse the website for web shopping and purchasing before exit the websites. (Laudon & Traver 2017) Upon customer click on the online website, the clickstream provides insight on how the customer navigates the websites. Each time a visitor or potential customer can visit multiple web pages on the online website, they could search for a product or service, read the products or services reviews from the social media, checking latest deals in various websites and responded to an exclusive offers, or just visit the website with to do price compare, and purchase the products which have exclusive offer or eventually exit website without purchase any products or services. (Ganeshan 2014)
User visits a travel website to search for tour packages promotion, the user can read the reviews from the site or connect to social media, Facebook, to read other reviews about the tour packages services provided by the website. After compare prices of the tour packages and level of services provided, the user makes the decision to purchase tour packages from which online travel website.
3.1 Use Data of clickstream behaviour for TourSmart
3.1.1 Marketing managers can identify how customer are awareof their site, and where they come from through search, email, and social campaigns. TourSmart analyses clickstream data is to focus on how the conversion e-visitor to the potential customer:
a) how many visitors visit our website daily and
b) how many visitors purchase tour packages.
3.1.2 We can use the clickstream data to record numbers of visitors that are with the travel website, related to the webpages being viewed/visited and length of time on the website. By having this information, business managers can enhance the design of our website and improve the content viewers are seeing.
3.1.3 Through social media network, customers’ opinions and behaviour can be gathered and transmitted to their friends and relatives, which can encourage visitors to interact and share their experiences, opinions, preferences, and behaviours with their friends, as well as other visitors to the site to attract more customers.
3.1.4 Purchase on the shopping cart page is vital to how the sales revenue is generated, and this is also where the customer frequently exits the entire website and cause online travel agency loses a potential sale. Finally, clickstream data can help managers discover customer loyalty and post-purchasebehaviour by writing travel reviews about our tour packages and tour experts.
3.1.5 Help managers building a detailed understanding of how consumers behave when visiting the website and assess the impact of specific travel campaigns with latest discounts, loyalty points, and special offers.
3.1.7 Managers can change the content of a TourSmart by responding to customer complaints and comments and arrange various travel campaigns with trending topics or news developments. Thus, this can enhance the effectiveness of building an online website.
The current study is to explore the disintermediation impact on the online travel agencies such as TourSmart. The main findings show that the Online Travel Agency adopted E-commerce in their business governed by five essential components as discussed. The data of clickstream behaviour enables the travel agency to analyse and enhance their services by improving the content of the website and create better relationship with customers. Therefore, by developing and implement the online website of TourSmart will help TourSmart Travel Agency to have a better competitive advantage to succeed on Tourism industry.
- We would highly recommend traditional Travel Agency to develop Online Travel website to attract more customers with the well-develop travel website.
- By having instant interaction with online travel consumer through leave reviews after travel with TourSmart, can bring more customer to TourSmart.
Appendix 1 – Prototype Website Checklist and Screenshots of TourSmart Web pages
Prototype Website Checklist
- Valid setup of Joomla! Website with filled checklist document.
Online Business Name: TourSmart
Online Business Category: The company sells New Zealand tourist packages to local and overseas traveller.
URL in cloudaccess.net: http://uunz707256.cloudaccess.host/
Joomla site Login details:
Template name: Cloudbase3
Number of Pages visible and their screenshots: 11 pages
- Template and layout is accessible and user friendly.
- Content – Key pages: Home, About Us, Tour Packages, Blogs, Contact Us, Search, Policy Page.
Screenshot 1 & 2 – Discovering New Zealand Home
Screenshot 3 & 4 – About Us
Screenshot 4 & 5 – Tour Packages
Screenshot 6, 7 & 8 – Blogs
Screenshot 9 – Contact
Screenshot 10 – Search
Screenshot 10 & 11– Policy Pages
Appendix 2 - Website Development Journal
||Research Activity / Duration
||Resource used /
||Register on the cloudaccess.net and setup on Joomla! website
||Develop an idea for a sitemap for your website
||Write some content for your website and watching cloudbase Joomla tutorial on Youtube.
||Create or copy some relevant images/ videos/ resources for your website
||Create Content – Articles & Categories
||Defining Menu Items to display articles
||Create content for Blogs
||Create articles for tour packages and link to Tour Packages page
||Create content for Policy Pages
||Checking and print screenshots for the TourSmart webpages.
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