Introduction
Growth in information technology, and especially the internet, has brought with it many opportunities and conveniences. One such convenience is the ability for consumers to browse products on the internet and order them to form their computers at homes, work, or any other place where the internet is available. The process of ordering commercial products on offer for sale through the internet is called e-commerce (Lowe 363). This is a process that has given consumers more power to control their choices and buy products on their terms. Prior to this technology, people would gather information on the products to buy from newspapers, close friends, or even their families. Today this has been taken right to where the consumer is by use of the internet. However, this has not come without a challenge to businesses since research has shown that most consumers start their online shopping with search engines and social media sites as opposed to retailer websites. This means they rely on reviews of products from other like-minded consumers which have been shown to influence their opinions a lot (SEMA eNews).
E-commerce has been predicted to grow over the years as people become more connected to the internet and businesses respond to this inventory. In 2001, it was estimated that e-commerce by private households increased by 50% at $ 2billion from the 2000 level in Canada (Lowe 365). This growth in e-commerce has been attributed to an increased number of people gaining access to the internet rather than by rising in the tendency of use by existing users. However, an increase in the range of products available for e-purchasers has been noted. Over the years e-commerce has seen increased diversity in the products available for order (Kim & Larose). In Canada products associated with e-commerce are in the following categories as of 2001 (Lowe 368)
Books Magazines, newspapers which made up 28.1% of internet products shopped:
- Clothing, jewelry etc taking 18.2%,
- Travel arrangements comprising 16.2%
- Others, taking 14.8%
According to the same survey, the category of products that made significant growth from the previous years is clothing and travel arrangements.
In recent years travel products ordered through e-commerce showed a marked increase in the number of users even though the percentage is low according to a US travel analyst Philip Wolf (Lowe 369). This category includes car rentals, hotels bookings, and airline ticketing. The airline industry takes the largest chunk of travel e-commerce through direct sales to agents or households. Air Canada recorded 1% of e-bookings in 2000 and planned to increase this to 20% by 2005. The growth in airline ticketing through e-commerce is being encouraged in several ways: offering electronic ticketing as the only option for domestic flights, putting advertisements for prices on the internet provision for incentives for e-booking, and making the pricing of flights more clear and simple(Kim & Larose). This study, therefore, seeks to establish the growth in e-commerce for travel arrangements in Canada.
Research objectives
The study aims to:
- To find out the growth trend in travel e-commerce in recent years
- Establish the travel products in e-commerce
- To find out any concerns related to e-commerce on the consumer’s side that might affect the business
To suggest measures for addressing the above concerns
Summary of research methods
The research project will use several methods in order to generate the required data to inform the objectives of the study. A review of literature on the subject and the issues related to the area of study will be done. These will include books, journals, academic papers, company policy papers, and research reports. Data will also be collected from the sample population using both open-ended and structured questionnaires. Interviews with various stakeholders in the travel business will also be conducted.
References
Kim, Junghyun & LaRose Robert. “Interactive E-commerce: Promoting Consumer Efficiency or Impulsivity?” Journal of Computer-Mediated Communication 10.1 (2004): Web.
Lowe Robin. “E-commerce and Consumer Behavior.” International Working Group on Price Indices. 7 (2003): 363-374.
SEMA eNews “Trends in ecommerce: importance of consumer behavior and perceptives.” 2010. Web.