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E-Commerce and V-Business by Brian Hunt, Stuart Barnes

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7

Industry transformationin e-commerce: Webdiffusion in travelagencies

Craig Standing andThandarayan Vasudavan

Introduction

Traditionally, retail travel agencies have acted as intermediaries between airline companies and wholesale travel companies and the consumer. The Internet and the World Wide Web bring a whole new set of challenges and opportunities for this business sector. The major threat stems from airlines and wholesale travel companies who can now offer their products and services directly to the customer and thus bypass travel agencies. Large online travel agencies have gained significant attention and provide some evidence of a radical restructuring of the travel industry sector.

Retail travel agencies rely primarily on commission ...

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