European Journal of Social Sciences ISSN 1450-2267 Vol.33 No.1 (2012), pp. 163-183 EuroJournals Publishing, Inc.

. 2012 http://www.europeanjournalofsocialsciences.com

A Study on the Customer Perception, Preference and Satisfaction towards Online Traveling
K. K. Ramachandran Director, Grd Institute of Management D. Padmanaban DIRector, Center for Research, Science, Technology and Culture K. K. Karthick Director, Pmr Institute of Management Abstract

1.1. Introduction
Marketing is a business function entrusted with the creation and satisfaction of customers to achieve the aim of the business itself. From this explanation of marketing itself one can see the predominant shift that has happened in the consumer world; that is selling what the producers produced to producing what the consumers wanted. There is a radical shift from the production- centric to consumercentric business. And marketing is all about winning customers. In todays world especially it is not an easy task. Technology has changed the way of life of the world. It has also changed the attitude as well as the expectations of the consumers. Earlier it was said that the Four Ps represented the most important aspect of any marketing mix: 1. Product: the actual item for sale, whether its a physical product, or a service 2. Price: the amount charged for your productnot necessarily monetary 3. Place: where the product or service can be purchased 4. Promotion: how people will find out about the product or service But now, the Four Ps are not sufficient enough because a key factor is missing one very important consideration that will ultimately influence all other aspects of your marketing mix People. People will decide if they like your product or not. People will assess if its value for money. People will determine where theyll choose to spend their money. People will consider when to give promotions a second thought. That is why it was said that marketing is about winning the customer. Understanding what customers want and giving them efficiently, effectively and conveniently are the key factors in marketing. Marketing is also the art of persuasion. It is the art of persuading people to buy through effective communication. There are a number of communication techniques that marketing employs like advertising, sales promotion, public relation etcetera. To this array of techniques todays marketers have introduced other new methods by going hand in hand with technology like search engine marketing, email marketing, online advertising, social media, and affiliate marketing. All these new trends may together be called online marketing. Online marketing can be simply defined as the promotional activity on the internet. The development of World Wide Web has been the most exciting phenomenon since the last decade. It has influenced all spheres of life. It has undoubtedly enhanced the efficiency and effectiveness of various communication and information related activities in many ways. Moreover, 163

European Journal of Social Sciences Volume 33, Number 1 (2012) www has generated enormous opportunities for the business sector. It has created wonders in the field of marketing and growth of e-marketing is one of its several benefits. Internet has lead to fundamental changes in the structure of marketing channels. Marketing is about conversations, and the Internet has become a hub of conversations. The connected nature of the Internet allows us to follow and track these conversations, and provides entry points for all parties. The marketing landscape has changed dramatically in recent years. The reliance on the mainstream media to break stories about companies and products is waning, while the number of press releases grows daily. Its increasingly difficult for small and medium-sized businesses to gain mainstream coverage from conventional media forms. So, rather than narrow their focus towards journalists in the hope of hitting the publishing jackpot, small and medium-sized companies are now producing press statements that target web site publishers and bloggers relevant to their niche, as well as targeting customers directly. Internet has efficiently enhanced the quality and quantity of information transfer and improved the accessibility of the information. Geographical distance has become immaterial today. As a result, the markets have spread manifold. The credit for the development of e- marketing also known as online marketing goes to the expansion of internet services through www. A website is one of the most multifaceted communication tools that marketers have at their disposal. It is immediate, dynamic and globally accessible. It is now at the centre of most offline and online marketing activities. More importantly, it can be personalized, optimized for multiple search engines, integrated with leading edge analytics and used as a primary lead generation engine that integrates with sales force automation and customer relationship management. Online marketing can deliver a number of great opportunities that are missing in traditional marketing endeavors. Results Are Instantaneous Through online marketing new levels of customer interaction is possible As a Team Player Online marketing plays well with conventional areas of marketing. Campaigns are flexible and able to accommodate core brand values. It can be used in conjunction with traditional direct marketing and awareness campaigns, as well as performing well on its own. Online marketing provides instant global market. The barrier of location is gone. Some of the most profitable long-term customers might be halfway around the world, and contacting them is now a cinch! Opportunities are plentiful in the brave new world of online marketing. Creative thinkers right now are finding new ways to take their products and services to markets that is completely untapped. India being one of the fastest technologically developing country, has got a very slow penetration rate in terms of e-marketing. In a study conducted by rediff.com, it was found that the number of internet users has grown from 5 million to 50 million but only 20% use the net for business1. Struck by poor online payment facilities and fears over credit card security, it has been a bumpy ride for the Indian e-com industry. The government initiatives to increase the rate of computer literacy in the country have shown tremendous growth of E Commerce in India, in the recent years. According to the Indian E commerce report released by the Internet and Mobile Association of India and Indian Market Research Bureau, The total online transactions in India was Rs.7080 crores in the year 2007-08 and expected to grow by 30% to touch Rs.9210 crores in the year 2008-09. The Ecommerce transactions are expected to reach $100 billion by 20092. Online travel market projected to cross $6 billion by the end of 2010 growing at more than 60% year on year and will hopefully be about 25% of the total travel market by 2010
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Vikas Shrotriya (2008), The rise of E-marketing: advantages & limitations, E- Business, ICFAI University Press, Hyderabad: 37-40 http://www.chillibreeze.com/articles_various/Ecommerce.asp (last visited on 15.04.2009)

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1.2. Objectives of the Study

The objectives of the study consist of: 1. To give an overview about online marketing in general and in particular to online travel market and also about its growth in India 2. To understand the customer perception towards online traveling 3. To study about the customer preference towards online traveling 4. To ascertain the level of customer satisfaction towards online traveling 5. To study the perception of Online travel agents and their problems as well as the problems of the customers 6. To identify the future prospects of online traveling in India

1.3. Review of Literature

1.3.1. Online Market benefits and Customer Perceived Value Internet has brought many changes to the business environment including the lowering of entry barriers, an increase in the market size and greater potential to reduce cost. Driven by cost considerations, many organizations are trying to save money through minimizing their distribution costs, with a specific focus on the intermediaries in the distribution chain. Blank3, Inkpen4, Morrell5, Oliver6 and Sloan7 contend that advances in information technology, especially the internet, have enabled suppliers in many industries to sell directly to their consumers, leading to significant cost savings. Gurau C, Ranchhod A and Hackney R8 opines that the changes brought by internet has created a strong competitive environment where intense competition heightens the need for a strong brand identity and for developing strategies to increase customer loyalty. Lohse and Spiller9 say that there are many differences between a physical store and its electronic counterpart whereby customers are provided with a completely new and innovative shopping experience while shopping through the internet. Mohd.Suki10 says that the main opportunity provided by online shopping is that consumers can buy things when ever they want where ever they are. In fact consumers can also enjoy window shopping on the internet without the pressure to purchase, unlike the traditional shopping environment. Kargoankar and Smith 11 says that the issue of convenience has been associated with the trial and adoption of non store shopping environments, for example online shopping. Darian12 identifies five dimensions of convenience for in home shoppers, including reducing the time spent on shopping, providing flexibility in the timing of the shopping, saving physical effort of visiting a store, reducing aggravation and providing the opportunities for impulse buying in response to advertisements received while at home.

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Blank D( 1999) Airlines invading travel agents market ,Airline Business; September :90 Inkpen G (1998) Information technology for travel and tourism ( 2nd edition), Harlow: Addison- Wesley Longman Limited Morrel P.S (1998) Airline sales and distribution channels: The impact of new technology, Tourism Economics 4(1): 5-19. Oliver, R.W (1999) Channels unlimited, Mark management review, October :12 Sloan .A. (1999) Long live the middle men, Newsweek,133(24):46 Gurau C, Ranchhod A and Hackney R,(2003) Customer-centric strategic planning: Integrated CRM in online business systems Information technology and management 4(2-3): 199-214: 200 Lohse, G.L and Spiller P (1998), Electronic Shopping, Communication of the ACM, 41, 81-88 Mohd. Suki N (2006) , A descriptive investigation of Malaysian internet users adoption of online shopping Journal of information technology and multimedia,3, 127-138 Kargaonkar P K and Smith A E (1986) psychographic and demographic correlates of electronic on line shopping and banking services, American marketing association educators proceedings, Chicago, American marketing association: 67-69 Darian J C (1987), In- home shopping: Are there consumer segments? Journal of retailing, 69,163-186

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European Journal of Social Sciences Volume 33, Number 1 (2012) Swaminathan13 stress that consumers who are primarily motivated by convenience are more likely to make purchases online. The perceived convenience offered by the internet vendors is often presented as a significant influence on the decision to purchase online. Ranganathan and Ganapathy14 assert that convenience includes the time and the effort saved by the customers. They said that customers who valued convenience tended to use the internet to make purchases more often than to spend more money doing so. Vijayasarathy and Jones15 say that limited discretionary time has a strong influence on a consumers decision to purchase online. 1.3.2. Customer Perception about Online Marketing Risk Bellman16 asserts that from the consumers perspective, the perceived risk in e commerce is greater than purchases that can be made at the brick and mortar stores. In e commerce, typically there is a temporal separation of payment and product delivery. Bhatnagar, Misra and Rao17 in their studies have indicated that credit card security, buying without touching or feeling the item, being unable to return the item, and privacy of personal information as still being the main concerns of the internet consumers. Thus uncertainty regarding the online purchasing process will influence the consumers risk beliefs. Specifically, various types of risk are perceived in purchase decision, including product risk, security risk and privacy risk. Product risk is the risk of making a poor or inappropriate purchase decision. One aspect of product risk is the risk of a poor economic decision through an inability to compare prices, being unable to return a product or not receiving a product paid for. Jarvenpaa and Todd18 say another aspect involves product performance and is associated with the risk that a product will not function as expected. They suggested that the likelihood of purchasing on the internet decreases with increases in the product risk. Donthu and Garcia19 found that online shoppers were found to have less perceived risk in online shopping than non shoppers, as expected. As noted earlier by Bhatnagar20online shoppers seek more convenience and innovation and are likely to be less risk averse than non shoppers. Koivumaki21established that there exists a positive relationship between the online shopping experience and the amount of purchases made. Lee22found that the shopping enjoyment and purchasing convenience were positively associated with online customer satisfaction. Nielsen and Norman23 say that the usability of an e retailers site has a major impact on shopping behavior. Since switching costs are low, consumers who encounter a poorly designed site are very likely to switch. Moreover, improvements in the usability of the site can lead to dramatic improvements in the sales of the firm. Chen and Wells24 also reported that organization of the information on a website affects the consumer attitudes.
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Swaminathan V (1999) Browsers or buyers in Cyberspace? An investigation of factors influencing electronic exchange Journal of computer mediated communication, 5, 1-24 Ranganathan C and Ganapathy S ( 2002), Key dimensions of business- to- consumer websites. Information and management, 39, 457-465 Vijayasarathy L R and Jones J M (2000) Print and Catalog Shopping: Assessing attitudes and intentions Internet research,10,191202 Bellman S (1999), Predictors of online buying behavior, Communications of the ACM, 42, 32-38 Bharnagar A, Misra S and Rao H R (2000) On risk, convenience and internet shopping behavior, Communication of the ACM,43, 98-105 Jarvenpaa S L and Todd P A (1997) Is there a future for retailing on the internet?, Electronic marketing and the consumer : Sage publications: 139-154 Donthu N & Garcia A (1999) The Internet Shopper Journal of Advertising research, 39, 52-58. Bhatnagar ref 17 above Koivumaki T (2001), Customer satisfaction and purchasing behavior in a web based shopping environment Electronic Markets, 11, 186-192 Lee J (2003) The contribution of commitment value in Internet commerce: An empirical investigation, Journal of the Association for Information systems ,4,39-64 Nielsen J and Norman D (2000), Website usability: Get the right answer from testing http//: www.useit.com Chen Q & Wlls W (1999) Attitude towards the site, Journal of advertising research, 39, 27-37

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European Journal of Social Sciences Volume 33, Number 1(2012) 1.3.3. Customer Satisfaction and Customer Relationship Management in Online Marketing The internet has brought many changes to the business environment which has created a strongly competitive environment where intense competition heightens the need for strong brand identity and for developing strategies to increase customer loyalty. Enhancing customer loyalty through building relationships can materially contribute to gaining competitive advantage25. Customer relationships are more difficult for competitors to replicate once ties of loyalty have been established26. As is said in the Economist27 players in the travel market that deal directly with the end consumer must be concerned with helping the customers to buy what they want not with helping the suppliers to sell what they have got. Porter28asserts the internet is a business tool that can support firms in the pursuit of competitive advantage. He calls for more adherences to established strategies that underpin a firms ability to succeed rather than a radical new approach to business. Reichheld F, Markey Jr and Hopton C29also reflects the above view in arguments for the re invention of the golden rule governing the pursuit of loyal and profitable customers. The premise of the golden rule is that the long term customers are of great benefit to a firm and that the level of returns rises over the years of relationship provided the firm devotes the resources to building loyalty and customers perceive benefits from relationships. Customers prefer to be loyal30; they gain a sense of security from recognizing brands and are more prepared to invest in trusted company names31. Peppard J32 says that in the online environment, loyalty is often traded away for anonymity, reduced variety and lower prices, ignoring the fundamental economics of customer loyalty. Customer loyalty is potentially more powerful online where the environment is new to many and uncertainties exist. Therefore, customers look for firms they feel they can rely on. In this situation trust is more important than price 33 . As Mckay and Marshall34 says managing customer relationship is both a philosophy and a way of establishing how customers should be viewed with in a firm. D. Ross35 says that a customer relationship management strategy supports the functions of marketing, sales and services and successful implementation offers a range of benefits to a firm. As R. Gulati and J. Oldroyd 36 say, customer relationship strategies should become an intrinsic part of a journey that the whole organization needs to make. But Gurau37 in his research has found that despite the potential benefits, many researchers lack the customer relationship strategies. Combes and Patel describe the new customer environment for travel services:...a whole new level of convenience and ubiquity to the shopping experience. Consumers are empowered with the ability to price and compare features with ease. They can inquire about various aspects of a travel destination without having to speak to a travel agent or they can quickly and simply find the lowest fare to Las Vegas. Buhalis and Licata38 assert that in the travel industry, there is evidence that tourism firms recognize the advantages in implementing such programmes to enhance understanding of their customers.

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Vatanasombut, B, ref 1 above Gaurau C Ref 8 above Economist (2002) Fit for DIY, Economist :63 Porter M (2001) Strategy and the Internet Haward business Review, March : 63-78 Reichheld F, Markey Jr R and Hopton C (2000), E Commerce Loyalty- Applying the traditional rules of business for online success, European Business Journal 12(4): 173-9 ibid Vatanasombut, B, ref 1 above Peppard J (2000) Customer Relationship Management in financial services, European Management Journal, 18(3): 312-27. Ibid Mckay J and Marshall P (2004), Strategic management of E Business, Milton, Queensland: John Wiley & Sons. Ross D(2005), E-CRM from a supply chain management perspective, Information Systems Management 22(1): 37-44 Gulati R and Oldroyd J (2005) The quest for customer focus, Harward business review April: 92-101 Gurau C Ref 8 above Buhalis D and Licata M.C (2002) The future E tourism intermediaries, Tourism Management 23: 207-20

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European Journal of Social Sciences Volume 33, Number 1 (2012) However Anite39 says that in an industry survey conducted, it has been found that the travel industry has been slower to adopt CRM than other IT intensive industries such as banking, finance and telecommunications. Gamble P, Chadler M and Stone M40 assert that although industry players acknowledge the importance of CRM, many struggle to integrate customer service strategies with customer service delivery. Fenberg R and R Kadam41 in their study says that most of the companies deem their CRM implementations to be failures because the features they have depended upon do not increase customer satisfaction or impact sufficiently on sales. 1.3.4. Customer Satisfaction in Online Marketing and Customer Switching Behavior Susan .M. Keaveney and Madhavan Parthasarathy 42cites that a key issue for online service providers as a result of increased competition is Churn or customer movement in and out of the market place. Some churn is online service discontinuance, where individuals try a service but subsequently decide to stop using the service category. Some of the churn is customer service switching behavior where customers continue to use the service category but switch from one service provider to another. Fornell and Wernerfelt43and Zeithaml44 says that a decrease in customer switching creates benefits on both sides of the income statement in the form of higher revenues and lower costs and has been shown to be effective from both defensive and offensive strategic marketing perspective. From the defensive strategic perspective, on the revenue side studies have shown that continuing customers purchase high volumes at higher margins and increase their usage of a service even when prices increase45 46 47 48. On the cost side as Heskett49 says that selling costs of serving continuous customers are lower and operating efficiencies are higher. From the offensive strategic perspective, on the revenue side, retained customers attract new customers through positive word of mouth; thereby increasing the market share.50 And as Bolton and Bronkhorst51 says on the cost side, the positive word of mouth associated with increased customer retention can lower marketing costs to acquire new customers. 1.3.5. Online Travel Marketing and Scope of Intermediaries Diltz,J and Prough G52 says that the trend towards disintermediation; the elimination of middlemen between producers and consumers, is readily apparent in travel industry where much of the recent
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Anite (2002) Customer relationship management I travel http//: www.anite.com Gamble P, Chadler M and Stone M (2000): Customer knowledge management in the travel industry Journal of vacation marketing 7(1): 83-91 Feinberg R and Kadam R (2002) E CRM web service attributes as determinants of customer satisfaction with retail websites International journal of service industry management 13(5): 432-51 Keaveney S and Parthasarathy M (2001) Customer switching behavior in online services: An exploratory study of the role of selected attitudinal, behavioral and demographic factors, Journal of the academy of marketing science (29): 374-390 Fornell Claes and Birger Wernerfelt (1987), Defensive marketing strategy by customer complaint management: A theoretical analysis, Journal of marketing research 24 (November): 337-346 Zeithaml Valarie A (2000) Service quality, profitability and economic worth of customers: What we need to know and what we need to learn Journal of the academy of marketing science 28(1) :67-85 Grant alan W and Leonard A Schlesinger (1995) Realise your customers full profit potential Harward business review 73 ( September- October) 59-73 Bolton Ruth N and Katherine N lemon (1999) A dynamic model of customers usage of services: usage as an antecedent and consequence of satisfaction Journal of marketing research 36 (May) : 171-186. Reichheld Frederick (1993) Loyalty based management Harward Business Review 71 ( March April) :64-74 Reichheld Frederick and David W Kenny (1990) The hidden advantages of customer retention Journal of retail banking 12(4) : 19-23 Heskett James L, W Earl Sasser Jr and Leonard A Schlesinger (1997) The service profit chain New York Free Press Ibid Bolton Ruth N and Tina M Bronkhorst (1995) The relationship between customer complaints to the firm and subsequent exit behavior Advances in consumer research 22: 94-100 Diltz J and Porough G (1991) Travel agents perceptions and responses in a de regulated travel environment Journal of travel research 29(3): 37-42

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European Journal of Social Sciences Volume 33, Number 1(2012) literature about the industry has focused on the dynamic and competitive environment in which travel agents operate. Lovelock C H53 and Mengue B54 says that as intermediaries between travel suppliers and consumers with information as their primary stock in trade, travel agents are particularly vulnerable to an environment which is epitomized by the de-regulation of airlines, the reduction of, and limits on, commission paid to travel agencies and the advent of electronic ticketing. Bennett55 claims that changes in the information technology in the travel industry during the past few years have worked predominantly in favor of the suppliers and at the expense of the travel agent. Caywood56, Loverseed57 and Murray58 support Bennetts view and suggest that the changes are aimed at encouraging travelers to forego using travel agents altogether. Mcfarlane59assert that online travel sales have now become the largest retail e- commerce category. Suppliers such as airlines, hotel chains and car rental companies are selling directly on websites, allowing them to put pressure on traditional travel agencies and to make significant savings in distribution costs. Small 60 claims that travel agents can save travelers a lot of time when planning and arranging travel and Renshaw61 suggests that the unbiased advice that travel agents provide adds value for travel consumers. These views are also supported by Inkpen62, Lyle63 and Paulson64 who maintain that the travel agents can offer a more personalized service than the internet while providing convenient, authoritative and impartial advice. Lowengart and Reichel65claim that there are opportunities available to travel agents provided they focus on specific markets and specialize their activities. Waksberg66, Standing and Vasudevan67 agree suggesting that travel agents should move from a focus on transaction processing to the provision of consultative services. Lovelock68 and Samenfink69 postulate that travel agents will need to expand their advisory functions and concentrate on the provision of information and details that are not available on the internet. Beirne70 suggests that travel agents should position themselves as consumer advocates who will find the best deals for travelers and Morrel71maintains that the provision of extra service and value to travel consumers is essential for survival. Bennett72, Blank73 and Murray74 believe that there is considerable potential for travel agents to expand their use of information technology, including the development of their own websites and the use of online bookings in order to enhance their advisory role.
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Lovelock C H (1992) Managing Services: Marketng, Operations and Human resources, Englewood Cliffs, NJ: Prentice Hall. Inc Mengue B. (1994) Major travel agency and trip attributes effective when purchasing a domestic tour from a travel agency: insights from Istanbul, Turkey Journal of travel and tourism marketing 3(2): 1-18. Bennett M.M (1992) Information technology and travel agency : An assessment of present and future aspect Dissertation Abstracts International 52(8): 3026 Caywood T (1999) New squeeze by airlines threaten travel agents Providence Business news 14(30):9 Loverseed, H. (1999) Travel agents in Canada , Travel and tourism analyst 1: 71-86 Murray M (1999) Tripped up Travel agents National Journal 31 (49): 3476 McFarlane, I.W. (2000) Adventures in online travel Computer Shopper :188 Small S. H. (2000) Databasics : Fly me to the moon American demographics, March:na Renshaw M. B (1992) The travel agent: Tyne and Wear; Athenaeum Press Limited Inkpen ref 4 above Lyle C (1995) Agent Blues, Airline Business 11(11): 56-9 Paulson, L.D. (1997) Software agents encroach on travel agents turf : Computer Shopper 17(7):118 Lowengart, O. and Reichel. A (1998) Defining opportunities and threats in a changing information technology environment: the case of the travel agent Journal of hospitality and leisure marketing 5(4): 57-71 Waksberg R (1997) The future of global distribution systems: The world wide web as an alternative travel distribution channel, URL http:// www.waksberg.com/thesis/ Standing C and Vasudevan T (200) The impact of internet on travel industry in Australia Tourism recreation research 25(3): 4554 Lovelock ref 53 above Samenfink W H (1999) Are you ready for the new service user? Journal of hospitality and leisure Marketing 6(2) : 67-73 Beirne M (1999) Travel agents fire back Brand week 40(30): 5 Morrell ref 5 above

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European Journal of Social Sciences Volume 33, Number 1 (2012) Standing and Vasudevan75 agrees advocating that the internet provides a whole new set of opportunities for travel agents. Studies by Lynch76 suggest that plans for widespread online shopping will be dashed unless online businesses do more to convince internet users of the safety of electronic trading. The implication of travel agents is that many consumers are likely to continue purchasing travel through their traditional channel as long as they perceive security to be an issue. S.R.Loban77 feels that data overload is another widely documented disadvantage for consumers and often leads to confusion and the possibility of missed opportunity and /or higher costs. The implication for travel agents is that their experience and expertise is likely to be called upon by consumers to decipher the mass of information and assist them in the decision making process. Bennett 78 says online booking is currently taking over the travel market, because with Internet, travelers have received the possibility to access the information about prices, deals and schedules in the comfort environments of their homes and create travel packages themselves. However, the amount of this information is so huge, that the majority of travelers to previously unvisited destinations would use traditional travel agents for filtering this information. Sheppard T79 says that while it has been implied that travel agents may be doomed once customers lose their techno fear of the internet and www, there will probably continue to be a significant number of potential travelers who are not computer literate and do not want access to the internet or www. Widener P80 says that the consumers will prefer to use traditional distribution channels and will continue to appreciate things done the old traditional way. Passman81 says that the need for personal assistance and advice by many consumers is a positive implication for travel agents as these clients are likely to continue to book through traditional channels even if they use the internet and www to gain information. Boyers82 feels that though the consumers may be happy to purchase small consumer items via the internet, such as books, cds, they may not be ready to make larger and more intimidating purchases online, such as travel. Many consumers need an emotional connection before they buy, and that is where the travel agents can benefit by providing this human touch to fulfill the need for a human interface. Buhails83 says that the consumers can verify the information they have obtained and reduce the insecurity of travel by being responsible for all travel arrangements. While the implication for travel agents have generally been positive, it is highly feasible that there will be some reduction in the number of travel agencies, as argued by Reindetrs and Baker84. According to Walle85, the internet offers suppliers and consumers the opportunity to climate a reliance on travel agents, and if travel agents are to survive they must meet their challenge. Most industry commentators hold this similar belief that travel agents will continue to be the dominant

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Bennett M M (1993) Information technology and travel agency: A customer service perspective Tourism Management 14(4): 259-66 Blank, ref 3 above Murray ref 58 above Vasudevan and Standing ref 67 above Lynch A (1997) Doubts hinder growth The Australian 25th November, Networking lift out p 3. Loban S R (1997) A framework for computer assisted travel consulting Annals of tourism research Vol 24, No.4, : 813-834 Bennett. M.M (1993) Information technology and travel agency: A customer service perspective Tourism management 14(4): 259-66. Sheppard T Agents should worry about their extinction Travel week No. 892 , 7th May, p.4 Widener .P (1995), Diethalm shows the way with Internet entry PATA travel news Asia pacific, October :14 Passman C(1997) How to assess www- applications for Tourism information systems from the end user perspective. Methodical design and Empirical evidence Information and communication technologies in tourism,New york: 208-220 Boyers K travel industry outlook remains strong Association Management, Vol 50, No 2 February:64-65 Buhails D (1998) Strategic use of information technologies in the tourism industry Tourism Management (19) 5: 409-421 Baker M and Reinders J (1997) The future for direct retailing of travel and tourism products: The influence of information technology Information and communication technology in tourism, NY: 119-128 Walle A H (1996) Tourism and the internet: Opportunities for the direct marketing Journal of travel research (35) 1: 72-77

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European Journal of Social Sciences Volume 33, Number 1(2012) distribution channel providing they adapt their role to meet higher customer expectations and changing customer requirements86-95. Montgomery96 says that in the future, travel agents need to focus on providing consumers with a convenient method of making reservations and obtaining information, and to stop acting as agents for suppliers and principals, or as Glab97 stresses they will not be there in the next millennium. As Loban98 says travel agents will still have an upper hand but as counselors where they must be able to provide useful information specific to the clients needs. Therefore, travel agents require the ability to access and process large amounts of information and to narrow down the choices and match the appropriate information with the clients preferences.99,100 As Cockerell101 and Racette102 cites they will also need to concentrate on offering consumers value added services. O Brien and Dunn103 summarizes this advice as follows: In the future world of electronic commerce, accessing destination and product information, assessing its quality and reliability, and providing expert advice will be the core competencies and value added by retail travel agents. Beirne104 suggests that the travel agents should position themselves as consumer advocates who will find the best deals for travelers and Morrell105 maintains that the provision of extra service and value to travel consumers is essential for survival. Lyle106 and Paulson107argue that those agencies that will survive are likely to be those that organize themselves into powerful consortia or franchising network. The amount of time a traveler spends for creating a trip package online is significantly higher than the time an experienced travel agent would spend for this task. Moreover, the online booking in its current form is not concerned with providing a good customer experience and is unable to cope with the uncertainty in the requirements of the travelers 1.3.6. Customer Attitude Towards Online Marketing Schonland108 says that the classic consumer purchasing decision-making theory can be characterized as a continuum extending from routine problem-solving behaviors, through to limited problem solving behaviors and then towards extensive problem-solving behaviors. The traditional framework for analysis of the buyer decision process is a five-step model. Given the model, the consumer progresses firstly from a state of felt deprivation (problem recognition), to the search for information on problem solutions. The information gathered provides the basis for the evaluation of alternatives. Finally, post-purchase behavior is critical in the marketing perspective, as it eventually affects consumers perception of satisfaction/dissatisfaction with the product/service. This classic five stage model comprises the essence of consumer behavior under most

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IBM (1998) How travel and transport will change in a networked world, IBM Corporation white paper http//: www.ibm.com/IBM/publicaffairs/travel/index.html Needle D (1998) Travelling the information highway Upside (10) 5: 88-92 Montgomery ref 89 above Glab ref 87 above Loban ref 77 above Ibid Mcmohan I (1998) Virtual travel futures market looms Travel week, No 926, 30th September :1 Cockerell ref 91 above Racette ref 90 above OBrien P and Dunn J (1998) Opportunities for retail travel agents in the world of electronic commerce Proceedings of the eight Australian tourism and hospitality research conference Queensland: 209 Beirne ref 70 above Morrell ref 5 above Lyle ref 63 above Paulson L D (1997) Software agents encroach on travel agents turf, Computer shopper 17(7):118 Schonland, A.M (1996) Using the internet for travel and tourism survey research: Experiences from the net traveler survey, Journal of travel research, Vol 35. No.2, pp 81-87.

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European Journal of Social Sciences Volume 33, Number 1 (2012) contexts. Nevertheless, the management of marketing issues at each stage in the virtual environment has to be resolved by individual Emarketers. Peterson109 commented that it is an early stage in Internet development in terms of building an appropriate dedicated model of consumer buying behavior. Decision sequences will be influenced by the starting point of the consumer, the relevant market structures and the characteristics of the product in question. Consumers' attitude towards online shopping is a prominent factor affecting actual buying behavior. Todd110 proposed a model of attitudes and shopping intention towards Internet shopping in general. The model included several indicators, belonging to four major categories; the value of the product, the shopping experience, the quality of service offered by the website and the risk perceptions of Internet retail shopping. In the research conducted by Vellido, Lisboa, P. J. G., and Meehan, K. 111nine factors associated with users' perception of online shopping were extracted. Among those factors the risk perception of users was demonstrated to be the main discriminator between people buying online and people not buying online. Other discriminating factors were; control over, and convenience of, the shopping process, affordability of merchandise, customer service and ease of use of the shopping site. In another study, Jarvenpaa, Tractinsky, N., and Vitale, M 112tested a model of consumer attitude towards specific web base stores, in which perceptions of the store's reputation and size were assumed to affect consumer trust of the retailer. The level of trust was positively related to the attitude toward the store, and inversely related to the perception of the risks involved in buying from that store. The attitude and the risk perception affected the consumer's intention to buy from the store. Consumer risk perceptions and concerns regarding online shopping are mainly related to aspects involving the privacy and security of personal information, the security of online transaction systems and the uncertainty of product quality113. Parasuraman114 said that trust is interwoven with risk. One of the consequences of trust is that it reduces the consumers perception of risk associated with opportunistic behaviour by the seller. Ganesh Jaishanker, Mark J Arnold and Kristy E Reynolds 115 suggests that lack of trust is frequently reported as the reason for consumers not purchasing from Internet shops, as trust is regarded as an important factor under conditions of uncertainty and risk in traditional theories. Mayer116 developed a model which combines traditional marketing philosophy on consumer motivation to buy and the trust model. In this model, trust propensity; which is a personality trait possessed by buyers; is an important antecedent of trust. In Internet shopping, there is not much information available to the buyer regarding the seller, prior to purchase. A buyer with a high propensity to trust will more likely be a potential customer than a buyer with a lower propensity. The ability, benevolence and integrity of the seller constitute the main elements of trustworthiness. Ability refers to skills, competencies and characteristics that a seller has in a specific domain. In this context, sellers need to convince buyers of the competence of their companies in the Internet shopping business. Benevolence is the extent to which the seller is perceived by the buyer as wanting to do good. Sellers

109 110

111 112

113 114 115

116

Peterson R A (1997), Electronic marketing: Vision, definitions and implications. In R A Electronic marketing and the consumer, Sage publications, California: 1-16 Todd P A (1997) Is there a future for retailing on the interne? Electronic marketing and the consumer, Sage publications, California: 139-154 Vellido, A.; Lisboa, P. J. G., and Meehan, K. Quantitative characterization and prediction of on-line purchasing behavior: A latent variable approach,. International Journal of Electronic Commerce (4:4), 2000, pp. 83-104 Jarvenpaa, S. L., Tractinsky, N., and Vitale, M. Consumer trust in an Internet store, Information Technology and Management (1), 2000, pp. 45.71 ibid Parasuraman, A. (1991), Understanding the customer expectation of service, Sloan management review, Spring: 39-48. Ganesh Jaishanker, Mark J Arnold and Kristy E Reynolds (2000) Understanding the customer base of service providers: An examination of the difference between switchers and stayers Journal of marketing (64):65-87 Mayer R C (1995) An integration model of Organizational trust Academy of management review (20:3): 709-734

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European Journal of Social Sciences Volume 33, Number 1(2012) have to convince buyers that they genuinely want to do good things for buyers, rather than just maximize profit117. Malone, Yates and Benjamin 118,Bakos119,Benjamin and Wigand120 say that the reduction in consumer search costs in electronic markets puts vendors under increased price competition, resulting in converging prices and ultimately eliminating any extraordinary profits. James Maguire121 say there's no doubt that the amount spent online is growing and will continue to grow, but what is growing even faster is the competition for every one of those dollars. Broadband, increased user experience, search, and comparison shopping all of these make it easer and easier for a consumer to shop a number of retailers before making a purchase.

1.4. Statement of the Problem

The usage of internet in India is on a rise with more number of people turning towards the net. An analysis into this aspect will clearly unfold many numbers of reasons. One major reason is the Information Technology explosion in the country which has resulted in the employment of a large section of youth population in this area. The government initiative to increase computer literacy which has resulted in the setting up of e learning centers even in remote panchayaths is another reason. Yet another reason may be the increase in the number of people getting quality education including computer education in the school and college level. High youth population in the country as compared to other Asian countries who use the net for maintaining and developing contacts through emails and blogs and to search for information may also be considered as an important aspect that led to the growth of internet usage in India. A study conducted by MasterCard worldwide reveals that, Indian customers shopped online more frequently in the fourth quarter of 2008 than in the same period the previous year, despite the bleaker economic climate. The survey, which covered 5,037 respondents across 10 markets, found the average frequency of online purchases increased to 2.9 in the fourth quarter of 2008, up from 2.6 during the same quarter in 2007. In India , 54 per cent of respondents had used the Internet for online shopping. The top three popular online purchases included airline tickets (54 per cent), home appliances and electronic products (48 per cent) and CDs/DVDs/VCDs (44 per cent)122. Online shopping is growing in popularity, as consumers realise the convenience and ease of shopping online. Interestingly, among all the markets surveyed, India is the only one where the 18-29 year age group has the highest average spend on online shopping123. Though these statistics are quite encouraging as far as a marketer is concerned, but still e marketing is only in its initial stages where it has to overcome many hurdles like customers anxiety in e shopping which comprises of concern for authenticity of goods purchased, uncertainity associated with delivery of products, security concern for online transaction, low penetration of payment mechanisms like credit cards and debit cards among Indian customers, low broad band penetration and the like. In this context this study attempts to analyze the penetration of e marketing among the people with special reference to online traveling because in the Indian context the front runner in the online market is the online travel industry which consists of online ticketing of airlines, railways and buses, online hotel bookings, rent- a- car and package tours.
117 118 119

120 121

122 123

ibid Malone, T. W., Yates, J., and Benjamin, R. I. Electronic Market and Electronic Hierarchies, Communications of the ACM, Vol. 30, No. 6, 1987, pp. 484-497. Bakos, J. Y. Reducing Buyer Search Costs: Implications for Electronic Marketplaces,Management Science, Vol. 43, No. 12, 1997, pp. 1676-1692. Benjamin, R. and Wigand, R. Electronic Markets and Virtual Value Chains on the InformationSuperhighway, Sloan Management Review, Winter 1995, pp. 62-72. James Maguire (2005) The State of E-Commerce: Online Shopping Trends (Consulted on 28.02.2009) http://www.ecommerceguide.com/news/trends/article.php/3524581 Online shopping in India rises despite slump: Survey, Business Standard,Mumbai, May 20, 2009 http://digital.afaqs.com/perl/digital/news/story.html?sid=24066 (last consulted 27.05.2009)

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European Journal of Social Sciences Volume 33, Number 1 (2012) Indian Online Travel Agents have seen a tremendous growth in the past four years. Many new players have entered the Indian market of which some are foreign players. This is because of the growing popularity of online marketing especially online travel market. But like all other e marketing segments online traveling is also not free from drawbacks. Low connectivity rate due to low broad band penetration is one such hurdle. Except for urban population especially urban youth, low level of computer literacy among the aging population; because of which they still prefer to make travel arrangements the traditional way. Many people who use the net still prefer to search the net for information relating to a particular destination, or to get price quotes before going to the travel agents. Many customers feel that information overload in the Online travel agents site leads to confusion, which in turn results in the visits to the site from being not converted into profits. Many a times the low connectivity rate has also resulted in not getting the transaction completed at the price quoted in the site of the online travel agent. All these have resulted in a gap between the customer perception and customer satisfaction relating to online travel industry. So the work entitled A study on the Customer Perception, Preference and Satisfaction towards Online Traveling attempts to find out the attitude of the customers towards online travel, their preferences and their satisfaction.

1.5. Research Methodology

The research work is undertaken as a descriptive research. The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. As descriptive research aims to present the state of affairs as it exists, this study also emphasizes on presenting the true picture about the customers attitude towards online travel for which the study has extensively used both Primary as well as Secondary data.

1.6. Sampling Design

Primary data were collected through field survey by distributing questionnaires among 504 sample respondents in and interviews conducted among the traditional as well as online travel agents. The samples consisted of individual adult consumers of travel and were adorning various positions ranging from bottom to senior managerial levels in major Banking, Insurance, Investment, Pharmaceutical and Telecom sectors. The respondents were so chosen because due to their nature of work they were subjected to frequent traveling and also due to their occupational requirements are in constant use of the internet for various purposes. Table 1.1 shows the sector wise distribution of sample respondents.
Table 1.1: List of sector wise distribution of sample respondents.
S.No 1. 2. 3. 4. 5. Sector Banking Pharmaceutical Insurance Telecom Investment Total Population 650 500 350 100 100 1700 Proportion 38% 30% 20% 17% 17% 100 Sample Size 250 150 70 17 17 504

1.7. Data Collection

1.7.1. Primary Data The primary data were collected by distributing well-structured questionnaire among sample respondents which was collected after the respondents duly filled in. The respondents were chosen on the basis of their education qualification, occupation, age, internet usage and so on in the study area. 174

European Journal of Social Sciences Volume 33, Number 1(2012) Primary data were also collected from the travel agents both traditional as well as online by meeting them with interview guidelines inorder to know their perception and problems. 1.7.2. Secondary Data Secondary data is an important source through which the researcher gets better understanding about the research topic. The secondary data for the study were collected from leading national and international journals and magazines. Secondary data were also collected from the websites of major travel players in India through the internet.

1.8. Tools of Data Collection

Selection of right tool plays an important role in drawing correct inferences and thereby arriving at meaningful conclusions from the data collected. In this study descriptive and analytical research were considered as appropriate. It is based on that the research problem and questionnaire were framed. The researcher used both close-ended as well as open-ended questions in the questionnaire which is given in the Appendix-I. The suggestions offered in the final chapter is on the basis of the inferences drawn from the study of the sample respondents information.

1.9. Construction of the Questionnaire

Initially before the construction of the questionnaire, the researcher had conducted preliminary interviews with few people who were frequent travelers and who used the internet for making travel arrangements as well as people who did not use the net in order to get a basic idea about the research problem. Based on the pilot study so conducted an initial questionnaire was drafted which was given to the research supervisor and certain research experts for a critical analysis on the structuring, wording, the type of questions and over all standard of the questionnaire. The redrafted questionnaire was again pre tested by circulating it among 15 respondents who were frequent travelers and were working in various organisations. After the pre test necessary modifications were made based on their suggestions and the final questionnaire was prepared and administered. The modified questionnaire is given in Appendix.

1.10. Framework of Analysis

The main focus of this work is to study the customer perception, preference and satisfaction towards online traveling. For this, the customers perception about the online traveling, their preference in using online traveling and overall satisfaction with online travel are taken as the main dependent variables. In the present study these dependent variables were related with independent variables like sex, age group, educational qualification, type of employment, type of industry, number of years of experience and annual income. 1.10.1. Tools of Analysis The respondents opinion about number of travel both business and private, how frequently they are conducting the travel, the type of services utilized in online travel, periodicity in using online traveling, rating of overall satisfaction in online travel, rating of online travel service for recommending to others and also for future travel arrangements were studied between different type of respondents based on age, sex, educational qualification, type of industry, the year of experience and income. The main tools used for analyzing this are simple statistical tools like percentage, average, ranges, standard deviation, cross tables and chi-square test. 175

European Journal of Social Sciences Volume 33, Number 1 (2012) 1.10.1.1. Chi-square Test In order to study the factor influencing the customers perception and overall satisfaction, Chi square test was used. For this dependent variables were related with all independent variables. The null hypothesis under chi square test is that there is no association or dependency between the dependent variable under study (costumers perception and overall satisfaction) and the independent variable. Alternative hypothesis assume that there are associated. The test statistic for chi-square test is (O E )2 . This follows a chi square distribution with degrees of freedom = (r-1)(c-1) 2 = E Where O is the observed frequency, E is the expected frequency, r is number of levels of the variable in the row and c is the number of levels of the variable in the column. After computing the 2 statistic it is compared with the table value at 5%level of significance and at (r-1)(c-1). If the calculated value is less than the table value accept the null hypothesis and otherwise reject the null hypothesis. 1.10.1.2. Assessing the Satisfaction in the Online Traveling based On Combined Score A preferential index for each parameters relating to online industry was worked out by using weighted average with weight as number of respondents responded to each scale of each parameters. The parameter having higher index is taken as the most influencing parameter relating to online industry. A combined score for overall satisfaction was worked out by adding the scores of each statement related to satisfaction. These combined scores were used for further analysis. To compare the overall satisfaction among males and females independent t-test was used. Overall satisfaction among different age group, the respondents having different qualification and among different type of industry is compared by using Analysis of variance. In the Analysis of variance, F-test was used for comparing between different groups. To find out the relation between years of experience and overall satisfaction Karl Pearson correlation was worked out between these variables and the significance of computed correlation was tested using the corresponding table values.

1.11. Scope of the Study

The study aims to throw light into the attitude of customers towards online traveling and also to identify the gap between the customer perception and actual practice. The study will highlight the current scenario in online travel industry and also plans to propose few suggestions which will help fill the gap if any between the customer perception and practice. This can be used by the players in the industry in formulating strategies so that they can increase their penetration among the masses.

Summary of Findings, Suggestions and Conclusion

The Indian online travel industry is surely in the growth path and is expecting to become a $6 billion travel industry and capture 25% share of the total travel market by 2010. It is very much evident from the fact that many international players have entered into this area like Travelocity, Expedia etc which have made the existing Indian companies in the field to be more competitive in terms of price, quality, service and the like. Also the fact that more and more Indian customers are moving towards online travel to meet their travel requirements have made the brick and mortar travel companies to shift their business online. The online travel industry is clearly marching ahead in spite of the rough times it had to undergo due to recession and the terrorist attacks in the country and the turmoil it had to face due to zero commission strategy by the airline companies. In fact all these has led the Indian online travel industry to phase out and diversify itself and bring under its scope other new arenas like online hotel booking, online tour packages etc. Where earlier online travel industry mainly concentrated on online 176

European Journal of Social Sciences Volume 33, Number 1(2012) air ticketing; now the trend has changed and they are offering a variety of services to cater to the need of the Indian customers.

Summary of Findings
The findings of the study regarding the customer perception, preference and satisfaction towards online travel industry as well as the growth and development of online travel industry in India are listed out in the following paragraphs. This study analyses the customers perception towards online traveling, their preferences and their satisfaction towards online traveling. The major findings of the study are based on simple statistical tools such as percentage, average, standard deviation and cross tables. Apart from this Chi square test is used in order to study the factors influencing the customers perception and overall satisfaction. A preferential index for each parameters relating to online industry was worked out by using weighted average with weight as number of respondents responded to each scale of each parameters. A combined score for overall satisfaction was worked out by adding the scores of each statement related to satisfaction. These combined scores were used for further analysis. To compare the overall satisfaction among males and females independent t-test was used. Overall satisfaction among different age group, the respondents having different qualification and among different type of industry is compared by using Analysis of variance. In the Analysis of variance, F-test was used for comparing between different groups. To find out the relation between years of experience and overall satisfaction Karl Pearson correlation was worked out between these variables and the significance of computed correlation was tested using the corresponding table values. The study was carried out among 504 respondents of which 72 % are male and 28% are female. The respondents are all employed in private companies in various sectors like Banking, Insurance, Pharmaceutical, Telecom and Investment companies. The respondents were so chosen because more than public sector companies, the private sector employees are undertaking more number of travels to meet their job requirements. The respondents were classified into various age groups ranging from 2025 to Above 40. Majority of the respondents belong to the 25-30 age groups that is 56 out of 100 online travel customers are in this age group. Most of the respondents are college educated with nearly half of them having at least graduation and 42 out of 100 are post graduates. This also explains the fact that most of them draw a salary of nearly Rs.2.5 lakhs per annum and 41 out of 100 respondents draw a salary of more than Rs 3 lakhs but less than Rs 6 lakhs per annum. The major findings from this analysis are given as under: 1. About half of the respondents are average users of the internet. And all of them have been using the internet for more than 3 but less than 6 years. 2. Among the respondents, more than half of the males are above average users of the internet whereas majority of the females are only average users. 3. Though majority of both male and female respondents have been using the internet for more than 3 but less than 6 years, the usage of internet for more than 6 years is more among male respondents than female respondents. 4. 84 out of 100 male respondents are frequent travelers whereas only 26 out of 100 female respondents are frequent travelers. 31 out of 100 under take 7 to 8 trips in a year. And 20 out of 100 respondents under take more than 8 trips in a year. They may be termed as Heavy travel planners. 5. The number of trips undertaken by male respondents is more than the female respondents. Where the highest percentage of male respondents which is nearly 41 out of 100 undertake 7 to 8 trips in a year, 54 percent of female respondents undertake only 3 to 4 trips in a year. Even though 25 percent of male respondents are undertaking more than eight trips in 177

European Journal of Social Sciences Volume 33, Number 1 (2012) a year, only 5 percent of female respondents are doing so. So male respondents are Heavy travel planners whereas female respondents were only Light travel planners. 6. The frequency of traveling is attributed to their nature of job as most of the male respondents are in the sales field in various organizations where as majority of the female staff belonged to the administration or operations fields in their particular concerns. 7. When analyzed the association between the age of the respondents and the number of trips undertaken by them, it was found that number of trips undertaken depends on the age of the respondents. Respondents in the age group 25-30 are undertaking more than 7 trips in a year compared to other age groups. The least number of trips are undertaken by the above 40 age groups. 8. Majority of the respondents prefer to make their own travel arrangements without depending on travel agency or conducted tour operators. 94 out of 100 have actually used online travel for making their travel arrangements. Only 6 out of 100 have not used online travel for their travel arrangements. So from this it may be derived that majority of the respondents are online travel users. 9. Among the non users who have not used the online travel methods for making their travel arrangement, 67 out of 100 said that they have avoided it due to security considerations. About 20 out of 100 felt it as a cumbersome process to avoid it and 20 out of 100 has avoided online travel because of lack of technological expertise. So the major reason for the customers reluctance to use online travel can be attributed to security reasons like all other online transactions. 10. Most of the travel planning consumers conducts online travel planning for both business as well as leisure purpose. Only 21 out of 100 use online travel arrangements for business only while only 18 percent use it only for leisure purposes. So, from the majority of the respondents it may be understood that online travel is equally useful while planning business as well as leisure trips. 11. In order to assess the customers perception about online travel, their awareness about online travel was analyzed. From that it was found that nearly 98 percent of the respondents are aware of online travel. And nearly 83 out of 100 respondents were aware through the internet. This shows the popularity of online travel among the customers and also the influence of the internet among the common public. 12. According to 91 out of 100 people ticket booking is the most useful thing about online travel. 68 out of 100 people also said that online travel can also be used for getting good accommodations. From this it can be postulated that most of the consumers perceive online travel as used for ticket booking and accommodation. 13. As perceived by the respondents, majority of the respondents have actually used the online travel for ticket booking and 75 out of 100 have used it for getting hotel accommodations. 14. Though 36 out of 100 used online travel services for both business as well as leisure trips, majority of the people have used online travel for business trips. This may be attributed to the less concentration of online travel firms in tour packages which is but gaining momentum in the recent times. 15. Most of the people prefer to use online travel services when undertaking domestic travel whereas only 3 in 100 respondents said they prefer online travel services when undertaking international travel. Again the increased popularity of online travel amongst domestic travelers may be attributed to the competitive air fares offered by the online companies and various offers given by them. 16. One of the major advantages of online travel may be pointed out as the ability to compare prices between different online travel companies by the customers. Through the internet 178

European Journal of Social Sciences Volume 33, Number 1(2012) the customers can easily get the price quotes by different companies without going to the travel agent and fix their travel at the most competitive price available. 17. Another advantage is its easy accessibility and the ability to get detailed and up to date information. The customers are always able to get the required information at their finger tips. The customers can access the desired information from the convenience of their home or offices. More over in order to remain competitive the online companies always try to provide with most up to date information. 18. 64 of 100 people are using online travel for the past 3 to 4 years. These online travel planners have been online for nearly six years. They are also above average users of the internet. They also undertake more than 7 trips in a year. So they may be called Heavy online travel planners. 19. 30 out of 100 people have been using online travel for less than 2 years. These travel planners are more likely to be new to the internet, meaning they have been online for less than three years. Most of them undertake less than 6 trips in a year. So they may be called Light online travel planners. 20. Credit card is the most favored means of payment among the respondents. Though many studies show that credit card has not been so popular among the Indian customers, among most of the online travel planners it has been a favorite mode of payment. Debit card is yet another means of payment as used by online travel planners. 21. The preference of online travel by most of the respondents is attributed to its being economical and also its budget pricing. Some of the respondents also prefer online travel because of its comfort, as the customers can make their travel arrangement at their own convenience. 22. Better network is one of the most important factors as considered by the customers in their preference for online travel agencies. Greater customer care is also an important factor in selecting a particular online travel agency by the customers. 23. Majority of the customers are moderately satisfied with the online travel. The level of satisfaction is dependent on various factors such as prompt service, timely response, cost effectiveness, better care etc. If a person is not satisfied in any one aspect, it may also affect his total satisfaction level. Here again the customers were satisfied in few aspects but not in all the aspects related to online travel. That is the reason why their satisfaction level is also moderate. This is an indication of the fact that, the online travel companies have a long way to go to be able to sustain in a customer friendly environment. 24. While analyzing the various factors that affected the satisfaction level of the customers towards any travel company, it was found that most customers felt that the travel companies prompt service is what made them satisfied. About 25 percent customers were satisfied because of the cost effectiveness. 25. Though amongst the many reasons pointed out for assessing the satisfaction level, prompt service, cost effectiveness and timely response were the reasons pointed out by the customers, the majority of the customers were only moderately satisfied with the online company. So while deeply analyzed the factors that were affecting the overall satisfaction of the customers, it was found that the most company websites are overloaded with information. This is resulting in confusion as far as the customer is concerned. Some customers felt that the information given by the travel company is not complete in all respects. The web page of the travel company is the link between the online traveler and an online travel agent. So it is of utmost importance that the web page be user friendly, up to date and simple so that the customers will get the required information without much of a trouble. 26. While analyzing the satisfaction level of customers towards online travel industry as a whole it was found that, the customers were satisfied due to the availability of adequate 179

European Journal of Social Sciences Volume 33, Number 1 (2012) information. Compared to traditional travel agencies, in online travel the customers can compare the information given in the websites of various online travel companies and get the required information by themselves at their own comfort. This saves a lot of time as well as is more reliable. So this is one aspect where customers are more satisfied with online travel agent than traditional travel agency. 27. The satisfaction level of the customers is slightly less in the case of online travel agency only in the area of security issues. Most customers have the fear of hacking or misuse of their credit card number which they provide while making online payments. The issue of credit card security remains the major perceived disadvantage when booking online. Not only for online travel but for all online transactions such a fear does exist in the minds of customers. This lack of security actually prevents many customers from making a purchase online. So there is need for strong government intervention in this area with strong cyber laws to protect the interest of the customers. 28. The satisfaction related to overall quality of the online travel industry is mainly attributed to the availability of adequate information. The time taken by the online travel company to process the information as well the customer relationship management also plays a very important part in the satisfaction level of the customers in judging the over all quality. 29. Offering the ability to compare prices and providing opportunities to save money are highly important attributes to both men and women. 30. The female customers were more satisfied with the online travel than the male customers. This may be because, compared to men women were less frequent travelers. So their use of online travel for making travel arrangements were also less compared to the men. The men through their frequent association with online travel company have varied experiences which would naturally affect their expectation as well as satisfaction level also. 31. 92 out of 100 respondents said that they prefer online travel agency than the traditional brick and mortar travel agency. From this it can be propounded that though online travel agency has its weak points, it is slowly gaining popularity amongst the customers. 32. Majority of the respondents preferred to use online travel for their future travel arrangements also. Most of the customers also said that they will strongly recommend online travel agency to others. From this it may be understood that online travel has a growing market amongst the Indian customers. 33. 8 out of 100 respondents said they still preferred traditional travel agents instead of online travel agents. They stated that need for human interface and personal services as the main reason why they preferred traditional travel agents than online travel. They also said that traditional travel agents have experience and expertise which the internet lacks. 34. Some customers also prefer traditional travel agents than the online travel agents due to the security issue which exist in online travel. 35. Though fairly small number of population did not prefer online travel. But the reasons pointed out by them are very much valid. From this it can be understood that it is not all doom for the traditional travel agents. They still have a competitive space in the travel market provided they equip themselves to cater to the changing situation. 36. Many online companies also understanding this requirement for personal interaction and greater customer care have shifted from all clicks and clicks company to clicks and mortar company. Some of the other problems faced by the online travel industry are also stated here apart from the findings already made. 1. Intense competition in the online travel market has lead to price wars to attract more and newer customers. To achieve this many players are not only offering lowest price but 50% cash backs and free offers are the order of the day. 180

European Journal of Social Sciences Volume 33, Number 1(2012) 2. Contracting hotel inventory directly is by no means an easy task. What makes things more difficult is that during peak season, many suppliers pull out inventory from the market to meet their direct customers demand. 3. The predominance of English as the language of business on the Internet is keeping out large segments of the Indian market. India is a country with diverse culture and language. Though English is a popular language amongst the urban population, many people in the non urbanized areas though computer literate may be proficient only in their vernacular language. This is one hurdle which keeps a large part of the population from going online. 4. Another problem which is playing havoc on the numbers for the travel sector in India is the extent of fraud in the online transactions. The precautions in the form of CVV and Address Verification Service as implemented by online merchants are of no help in this area. With details such as credit card numbers with names, street address, zip code, complete card number, expiry date, CVV, card issuing authority and even Social Security Number floating around in the market the net Risk management is a major task for the online travel agency. 5. Unlike established brick and mortar travel agencies, the new OTAs have to spend a large amount of money to get established in the consumers mind space. Moreover, with increased competition, brand differentiation has become difficult and only a continuous stream of visibility keeps an OTA in the consumers brand recall set. 6. The cost of consumer acquisition is steep. Customer loyalty seems to last only as long as the next great deal. Now the biggest battle amongst the competitors seems to be the price war aimed at capturing customer mind space through customer attention and hopefully customer loyalty. 7. Another problem as faced by the online travel industry is that suppliers have started going direct to consumer and have started to squeeze the supply of room inventory to OTAs. In addition to that too many OTAs chasing the same inventory has caused margins to shrink. 8. The low penetration of plastic money amongst the Indian population is yet another drawback which has resulted in a major percentage of the population keeping away from online services. 9. The low internet connectivity rate is also one hurdle for the Indian customers in using online services. Though there are areas with broad band connectivity, majority of the population are still relying on slower connections. In spite of these problems the Indian online travel industry is fast developing into one of the worlds leading travel markets. The problems as listed out here can easily be solved through the remedial measures cited here. 1. In order to meet the customer requirements thereby to enhance customer loyalty and satisfaction OTAs can also undertake services like passport and visa management thereby making it a one stop shop for all online travel services. 2. Many customers still feel the need for physical interaction. Many people are of the opinion that the response rate ion the OTAs call centers is very less. So to change this perception the OTAs need to open physical outlets at least in Tier I and Tier II cities. It should also give proper training to its call center executives who are the spokesperson between the OTA and the customer so that they can increase the customer confidence in the OTA thereby its brand image. 3. To stay ahead of the game, intermediaries will need to create a difference in a market that is getting increasingly commoditized. Now the Indian online travel is only in the youth stage but as the online travel customer matures, the search for the lowest price will disappear and value will be the name of the game. 4. OTAs will have to keep investing to keep up with the technology evolution driven by suppliers. With the advent of Web 2.0 and technology convergence, the expectations of the 181

European Journal of Social Sciences Volume 33, Number 1 (2012) customers have drastically changed. So to give the customers the best online experience, the OTAs should always strive to adapt itself to latest technology. The OTAs should assert on adding dynamic packages and value added services to help add on incremental revenues. Consumers should get to pick from offerings of sightseeing tours, event tickets etc. Customer retention should be an area of focus for OTAs and suppliers alike. Ensuring that a customer comes back again can be assured by the implementing loyalty reward programs and better after sales care. The key to success will be more and better tools to enhance the customers online experience. Consumers are going to want to spend less time searching for information. There is a need for interactive tools to get relevant and unbiased information with rich media content, better maps and interactive forums to reach consumers quickly. OTAs in order to attract more and more customers can start accepting safer means of payment in the form of direct bank debits, DDs, cash on delivery etc while at the same time reducing their liability of chargeback. The government also needs to play an important part in increasing the ecommerce in the country by introducing strict cyber laws whereby the customers will feel more secure while making online transactions.

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9.

Conclusion
India is a country with the second largest population. Moreover it is also one of the countries which are projected in the IMFs BRIC nations. It is also one country which can be proud of its large share of youth population. All these leads to one aspect and that is the emergence of India as a global leader. The impact of large population is the richness of the country with trained manpower. Human resources are the biggest assets of any organization. India is only second to China in this respect. But the quality of manpower in India is equal or even better than the manpower in any developed country. Better manpower results in better infrastructure, better technology, industrialization and overall growth of the country for the most modern machine needs a human brain to operate it. Again overall growth means establishment of newer avenues for profit, establishment of new businesses and increase in the total output of the nation. All these results in increased transportation of manpower whether skilled or unskilled from urban to rural areas, from villages to towns, from towns to cities from areas of need to areas of supply. So with the growth of a country its travel market will also grow. And with the pace that India is growing, its travel industry is also growing at equal speed. Today, any employed person does not want to waste his time as well as his opportunity by being second in reaching a destination. So to solve this problem the online travel agents have emerged thereby solving the problem of going to travel agents and making travel arrangements or waiting in long queues to get the tickets booked. Indian online travel industry has now come a long way from the time it was established in 2000. With the entrance of many new and international players, its scope and vision has drastically changed. Though like any other industry in its initial stage, online travel also had its initial hiccups but having realized the scope for growth by tapping the emerging Indian market, it is becoming more and more competitive day by day. The most important factor the online travel industry should realize, like any other business is that Customer is the King and it is the customer who is the deciding factor as to make or break the business. So the motto should be to enhance the customer satisfaction by giving the best online experience through better customer relationship management which should include all aspects right from the online companys website to the customer relation executive which is the two major touch points between the customer and online travel company. 182

European Journal of Social Sciences Volume 33, Number 1(2012) A satisfied customer will be a loyal customer and will be easy to retain. The success of any company depends on its customer base. So the realization that one loyal customer is as good as hundred publicity material will help online travel industry in India to grow into a six billion dollar online travel market and thereby capture twenty five percent of total world travel market by the end of 2011.

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