The evolution of the competitive system in the tourism industry

Abstract: The situation of the tourism industry have considerably changed in the latest years, chiefly because of the emergence of the internet and the development of the new technologies, electronic commerce and relevant changes in consumer behaviour. This has put pressure on traditional tourism industry so that the operators of this sector are obliged to progressively adapt their own business model and develop new organizations. Increasingly, people are booking their travel over the Internet, directly from the suppliers or on electronic retailer’s websites. The traditional business have been put into crisis by the birth of online travel agencies (OTAs). The necessity of new business models in tourism companies depends on a variety of external and internal factors such as the change in customer behavior, (travelers demand more and more new destinations), the greater attention to the money value, the overall experience and the substantial development of technologies. So if companies want to survive in the travel sector they have to invest in new business models. To worsen the situation there is the advent of mobile travel agency (MTA) business models, that are having a significant impact on the tourism sector, making smartphones and tablets an important booking channel. Because of these aspects, the industry is in a precarious situation and traditional travel agencies and tour operators are trying not only to protect their profit margin, but in many cases to survive. How can they gain competitive advantage over the travel suppliers who once used to be their partners, and who are now trying to cut them out of the distribution chain? Some sources predict that the end is in sight for the traditional travel agencies because of the competition with their online rivals. However, other sources report that consumers are slowly turning back to high street travel agents seeking a human touch. The aim of the abstract is to analize the changes and challenges in the tourism industry in the very next future. How the market will evolve? is it true the prediction of the failure of traditional travel agencies in the battle with the other competitors? Or are there any market segments or niches still served by the old players?.