Impact of Online Travel Agencies on Inbound Travel Agent Operations in Sri Lanka: A Study of Traveller Buying Behaviour

Due to rapid advances in technology traditional travel agencies are facing the threat of disintermediation, where customers are connected directly with suppliers through online platforms. This has resulted in a loss of market share to Online Travel Agencies. The aim of this research study is to assess the impact of Online Travel Agencies on Traditional Travel Agencies in Sri Lanka, to find out the factors that affect traveller buying behaviour and to generate strategies that can be implemented by Traditional Travel Agencies in order to survive and remain competitive in the industry in the future. Data was gathered for this research study using a survey method. A survey questionnaire was developed using Google Forms and sent to three randomly selected online travel groups and 204 responses were recorded. The data was then analysed using SPSS software and manually as well. The results and findings showed a significant impact on TTA’s in Sri Lanka when analysing the customer’s current booking preferences. However, the factors that were identified as those that influence traveller decision making were not found to be very significant in this study. Furthermore, the suggested strategies were grouped into broad categories and were presented as possible steps a traditional agent can take in order to survive in the long run.