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Understanding the Effects of Reservation Systems and Online Transaction Capacity on the Competitiveness of Travel Agencies Cover

Understanding the Effects of Reservation Systems and Online Transaction Capacity on the Competitiveness of Travel Agencies

Open Access
|Aug 2024

Figures & Tables

Figure 1.

Research Model
Research Model

Figure 2.

PLS-SEM Results of Measurement and Structural Model
PLS-SEM Results of Measurement and Structural Model

Confirmatory Factor Analysis

Dimensions (Structures)MeanStd. DeviationVIFt-valueFactor Load
Online Transactions

The online sales system is used effectively by our agency.3.7740.9621.1507.3670.611
Collection of the product price in online sales is hassle-free.3.6801.0491.74350.7210.906
The refund of the product price in the cancellation of online sales is hassle-free.3.5791.0281.59113.6230.785

Reservation Systems

The use of central reservation system increases competitiveness.3.7541.0261.32220.0320.799
Global distribution systems (GDS) (Amadeus, Galileo, Sabre etc.) are required for agents.3.6371.0391.27614.9730.750
The use of GDS in our travel agency is sufficient.3.5380.991.0598.5300.612

Service Quality

It is important to increase the quality of staff.4.3910.7872.27032.1300.811
It is important to improve sales and after-sales services.4.3910.8611.85719.1350.765
It is important to ensure stability and continuity.4.4310.7171.77118.9250.729
It is important that the product or service provided is done on time.4.4040.7952.43231.0440.816
It is important to improve the quality of products and services.4.4060.8392.66028.0370.823
It is important to provide products and services that comply with standards.4.3450.8051.88316.9210.738
It is important to focus on R&D studies.4.1320.9111.71018.5040.684

Cost

Reducing costs is important.4.2130.982.28717.8360.845
It is important to keep production and inventory costs at the lowest level.4.0760.9921.27813.1090.746
It is important to create financial opportunities to make new investments.4.2560.9222.25730.9540.895

Market Share

It is important that the production time is short compared to the competitors.4.3600.8321.73216.5330.746
It is important to analyse competitor products.4.2660.8421.87920.9730.758
It is important to increase product diversity.4.3270.851.95320.0210.769
It is important to improve the brand and company image.4.5100.7971.81626.7140.786
It is important that capacity is flexible in the face of supply and demand flexibility.4.1750.851.64811.2380.673
It is important to provide technology transfer.4.1620.9151.41013.3150.662

Path coefficients and hypotheses

HypothesisPath Coefficientst-valuep-valueSupportedSRMRNFI
Online Transactions > Service Quality0,2786,0480,000**Yes0.0750.845
Online Transactions > Cost0,1602,9370,003**Yes
Online Transactions > Market Share0,1953,8180,000**Yes
Reservation Systems > Service Quality0,2424,3470,000*Yes
Reservation Systems > Cost0,1572,4260,015*Yes
Reservation Systems > Market Share0,2644,4630,000**Yes

Descriptive Statistics of Participants

VariablesN%
Gender,----
Female26546,8
Male30153,2
Age groups----
30 age and below15727,7
31–45 age33959,9
46 age and above7012,4
Agency Ownership Type----
Family Business17530,9
Domestic Independent Business28650,5
Franchise Business10518,6
Administrative Level----
Top executive17030,0
Mid-level director14926,4
Junior administrative officer24743,6
Educational Status----
High schools and their equivalents11320,0
Associate degree19634,6
Undergraduate/degree22339,4
Postgraduate346,0
Agency Type----
Group A47583,9
Group B366,4
Group C559,7
Period of service----
less than 4 years13323,5
5–9 Years19734,8
10–19 Years15627,6
More than 20 Years8014,1

Reliability and Validity

Fornell-Larcker CriterionHeterotrait-Monotrait Ratio

Variables1234512345
Service Quality (1)0.868 -
Cost (2)0.7110.831 0.846
Online Transactions (3)0.3790.2250.777 0.4790.285
Market Share (4)0.6480.6630.3060.734 0.8920.8220.395
Reservation Systems (5)0.3580.2230.4170.3450.7250.5190.3350.7300.513-
Cronbach's Alpha0.8830.7760.7630.8280.737
Reliability Coefficient (Rho_A)0.8870.8150.7490.8370.746
Composite Reliability0.9090.8690.8160.8750.766
AVE0.5900.6900.6030.5390.525
DOI: https://doi.org/10.2478/ejthr-2024-0004 | Journal eISSN: 2182-4924 | Journal ISSN: 2182-4916
Language: English
Page range: 55 - 70
Submitted on: Aug 25, 2023
Accepted on: Dec 11, 2023
Published on: Aug 9, 2024
Published by: Polytechnic Institute of Leiria
In partnership with: Paradigm Publishing Services
Publication frequency: 2 times per year

© 2024 Merve Işkın, Catherine Prentice, Nuray Eker, Ümit Şengel, published by Polytechnic Institute of Leiria
This work is licensed under the Creative Commons Attribution 4.0 License.