Survival and competitiveness of traditional travel agencies in Malaysia: a qualitative enquiry

Abstract

Purpose Empirical evidence is insufficient to explain which factors contribute to the survival and competitiveness of traditional travel agencies (TTAs). Malaysian TTAs are rather slow in information communication technology (ICT). However, several initiatives by the government were directed to enhance ICT adoption. Furthermore, the non-ICT factors to remain competitive by the TTAs were not sufficiently studied. The purpose of this study is to close the gap by examining the perceived factors that influence the survival and competitiveness of Malaysian TTAs. Design/methodology/approach This study used qualitative multiple case studies method to ensure that the issues were explored through multiple lenses. Semi-structured interviews and direct observation are used to collect data from 15 TTAs and industry experts in Malaysia. Findings This study found that the key to remain competitive and relevant is to co-exist with technology and embrace proactive strategies (i.e., competitive aggression, public relation, dependence development, smoothing, cooperative, and manoeuvring strategies). Originality/value Travel and tourism industries have long been acknowledged to provide an impetus for the economic growth of developing and developed economies. TTA is the key component in the global tourism activities in promoting tourism products and services. However, they are threatened by the continuous growth in ICT. Past literature reviewed TTAs that operate in the highly competitive and volatile environment due to various external forces such as technological advancement, fierce competition from the virtual travel agencies and global economic condition. This study provided empirical evidence contributed to the survival and competitiveness of TTAs in Malaysia.