Background of the Study
Background of the study
According to the World Tourism Organization, “Tourism is defined as the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.” CITATION Ugu10 l 13321 (Ugurlu, 2010). Here in the Philippines, it is considered as one of the largest industries and one of the economic contributors since it generates a lot of revenue for the country. According to the Tourism Promotions Board, “The Philippine tourism industry reached a new milestone as the country welcomed a total of 5,967,005 arrivals, closely hitting the Six Million
Arrival mark. This volume escalated by 11.31% compared to the 2015 arrivals. I am optimistic that the tourism industry will remain as one of the top pillars in boosting Philippine economy with this positive trend in increase of arrivals,” said Tourism Secretary Wanda Corazon Teo CITATION PHI17 l 1033 ( PHILIPPINES GEARS UP FOR A STRONGER TOURISM INDUSTRY, 2017).
In relation, a travel agency provides travel related services and serves as the intermediary between the suppliers and the clients. They provide bookings, arrangements and even document processing for clients who would want to experience a hassle-free travel. They serve as a middleman for airline, accommodation, activities, attraction, transportation and etc. These travel agencies are able to sell and make itineraries that would fit their client’s needs. The first person who was able to create a structured travel plan was Thomas Cook who is also considered as the Father of modern travel agency. 1841 Thomas Cook organizes his first excursion, a rail journey from Leicester to a temperance meeting in Loughborough. On Monday 5 July a special train carries some 500 passengers a distance of 12 miles and back for one shilling CITATION Tho l 1033 (Thomas Cook History). The development of information technology enables most hotels to change their business operations rapidly CITATION Seo17 l 13321 (Seo, Jong, ; Sang, 2017). Same with travel agencies, now they have online websites wherein they can easily be contacted by potential clients. They do their advertising and marketing through online specifically with the use of social media. With that kind of strategy, they can easily attract potential clients most especially tourist that are very tech savvy.
Independent travel booking is also another way or means of booking one’s travel arrangement. This is wherein the traveler will be the one responsible for arranging his travel and usually uses online booking websites like Agoda, Expedia, the website of the airline/hotel and the like. Many travelers search for information on travel, buying airplane tickets online, online booking of accommodation and other facilities, rather than relying on travel agencies to do it for them CITATION Crn10 l 13321 (Crnojevac, Gugic, & Karlovcan, 2010). With the evolution of the internet, the use of online search facilities for travel information has provided additional sources of information and opportunities to purchase travel direct from suppliers such as airlines and accommodation providers without recourse to travel agents and in some instances at discounts to prices available through travel agencies by eliminating commissions for such agents CITATION NgE l 13321 (Ng, Cassidy, & Brown) .
Not all tourists are the same; some tend to be adventurous while some are not. There are tourists’ classifications according to Stanley Plog in and these are Psychocentric, Mid-centric, and Allocentric. Psychocentric tourists are not that adventurous and they tend to look for something that gives the familiar kind of feels. Mid-centric is the in-between of being adventurous and not. They are open to trying new things out but also want the familiar feel. Allocentric tourists are the ones to tend to explore a lot and always want something new.
Millennials, typically defined as those born between 1980 and 1996 CITATION Car17 l 1033 (Carnegie, 2017). Today, they are already part of the working force meaning they already have the means to travel to wherever they want. Millennials are adventurous, creative, open-minded and want more of the so-called “me time” CITATION Mai17 l 13321 (Main, 2017). They are the ones who have the tendency to explore different places and willing to try out new things that they haven’t experienced before. Young travelers use the internet when they decide to plan a trip. They tend to be very well informed, consulting a wide range of resources before departures CITATION Tug l 13321 (Tugulea, Bobalca, Maha, & Maha, 2014).
Do it yourself is a term we mostly hear nowadays. People like to do things on their own now and it just shows that they are curious and ready to explore things. The term do it yourself can be applicable to anything like cooking, creating something out of scratch etc. Since most people are now tech-savvy they tend to just search online for what are the things they need to do. With just one click on the search button, you can easily learn how to do things on your own. For travelers who use independent online booking, they are less interested in following the masses in tourists packages and much more eager in satisfying their own priorities and timetables CITATION Crn10 l 13321 (Crnojevac, Gugic, & Karlovcan, 2010). It is also known as Independent Travel Taken literally, independent travel means any trip that you organize by yourself – booking your own accommodation, transport and itinerary as opposed to going somewhere as part of a holiday package which is defined by Mpora a known traveling website. The technology is truly a played important role in DIY travel booking. Through just one click you can browse different flights, accommodations, and trips. They also research everything about what they need to satisfy their travel needs. If they are first-time traveler they are also sites that provide guides that will them such as Travel Info. Also, there are phone applications that help them in booking such as LocalTrip, Localeur, CoolCousin, 500px etc.
This study aims to analyze whether millennials still prefer to seek assistance from a travel agency or would they prefer to do it their way. With this research, the researchers would be able to know the current trends when it comes to millennial travels and what makes them pursue their travel which is very relevant for the researchers since they are taking up tourism management. As future tourism professionals, the researchers would be able to identify the things they can conceptualize if ever they will put up a travel agency in the future. The researchers would also want to recommend possible solutions to the problems or issues they will encounter during the researcher proper.
It is said that by 2020 there will be 1.6 billion tourists who will be traveling around the globe and that is very evident. More people are now capable of traveling most especially the millennials because of those promos that not just airlines offer but also the other sectors of the tourism industry. Today “DIY” travel or backpacking seems to be very popular and you can see it on blogs, vlogs, and even Facebook posts. With the rise of these DIY travel tips or hacks, this research aims to know whether if there is still a relevance for the millennials to seek assistance from a travel agency with regards to booking for their trip.
People nowadays are tech-savvy and with the help of the internet, people can easily plan their trips through their smartphones. With just one click things will be set and okay. This is very relevant to the millennials since they tend to explore a lot and rely on the internet. But note that not all millennials are like this. They are easily influenced by what they see and when it seems very pleasing and catchy to them tendency is they will try. Given that there are many factors in determining one’s satisfaction, the study aims to identify certain factors that greatly affect the travellers’ booking needs and wants in terms of transportation, hotel and tour reservations. The study will consider the following such as accessibility of information, cost of travel arrangement, ease of transaction and flexibility of travel arrangement. When it comes to comes to accessibility of information this only means Accessible information means information provided in formats that allow all users to equally access content. Information and Communication Technology or ICT is increasingly seen as a major tool in meeting individual learning needs CITATION Eur l 13321 (European Agency). Other factors that we need to consider is the cost of travel arrangement it differs from the travel agency and independent booking. With a travel agency, it has a mark-up. Ease of transaction relates to convenience because for quick and easy where you can find that you need. The last would be the flexibility of travel arrangements this shows that the travelers have control in arranging their preferred time, destinations or accommodations.
This research would be helpful for all future travelers not only limited to the millennials and also travel agents who would like to know how they will be able to keep up with today’s travel trend which is DIY travel. Since this research paper will present the study about millennial travelers about travel agency service versus independent booking, this research will guide the future travelers on how to determine the appropriate booking method for them. This will help enlighten them because this research will present the study about between the two means of booking arrangement. Lastly, this will be relevant for those people who will be planning to start up a travel agency business and so does travelers out there who would want to seek information about which one is better or suitable for them.
In this study the researchers gather a theory that will strengthen and support the topic. The aim of this research is to conduct a comparative study between travel agency and independent booking for a millennial perspective. Adam Smith Scottish economist, philosopher and author usually gets the credit as father of Rational Choice Theory according to the Hartford Institute for Religion Research. In the standard view, rational choice is defined to mean the process of determining what options are available and then choosing the most preferred one according to some consistent criterion CITATION Lev04 l 1033 (Levin ; Milgrom, 2004). As a result each individual has its own preference among the available alternatives that allows them to choose the option that is more preferable for them and can give satisfaction. Another insight made CITATION Wit13 l 1033 (Wittek, 2013) that Rational Choice Theory is an umbrella term for a model explaining social phenomena as outcomes of individual action that in some way be constructed as rational. It includes the key elements of all rational choice explanation like individual preferences, beliefs and constraints. A much more narrower definition was described to rational choice as one which maximizes the expected utility CITATION Von07 l 1033 (Von Neumann ; Morgenstern, 2007). It assumes that an individual has its own preference in which he/she can choose between the available choices. Since not all needs were met the person may select the best alternative which is preferable for them or more likely gives the greatest benefit or satisfaction. Given an example, A travel agent or tourist wants to book a hotel but unfortunately their preferred hotel was fully booked. The initial action done by the tourists or the travel agent is to find a hotel that is most likely the same from their first choice. Choosing a destination is often a complex and difficult decision-making process as individuals have different destination preferences and expectations while having to pay in advance for it without knowing whether it will be a pleasant trip CITATION Zha09 l 1033 (Zhang, 2009). Trends vary from time to time, thus the consumer preferences changes. Especially nowadays variety of tourist attractions are available and can easily be traced and accessed. Tourists may differ in the from their travel preference form destinations, activities, transportation, food etc. It may vary mainly because preference can have many roots ranging from culturally transmitted tastes for food or items to personal habits and commitments CITATION Wit13 l 1033 (Wittek, 2013). Belief, on the other hand, refers to the perceived cause-effect relation, including the perceived likelihood with which an individual action will result in different possible outcome CITATION Wit13 l 1033 (Wittek, 2013). Minimally, rational-choice theory must tell the agents how best to realize their desires, given their beliefs. Furthermore, the theory must prescribe which beliefs it is rational for the agents to hold, given their evidence or information. CITATION Els09 l 1033 (Elster, 2009). A belief may be rational and yet false. Constraints within the tourism industry act as filters for tourism demand, hindering the potential tourist to engage in travel even though a motivation to travel may exist CITATION Pag03 l 1033 (Page ; Hall, 2003) this reflects to some circumstances that can limit the tourists to travel. As for CITATION Gil00 l 1033 (Gilbert ; Hudson, 2000) regarding constraints, finance can be viewed as the main limiting travel factor to participate in leisure and activities. Another barrier might occur for potential travellers may fear for their safety and not travel if there is limited information available of a destination CITATION Car09 l 1033 (Carneiro ; Crompton, 2009). Another constraint discussed by CITATION Jac93 l 1033 (Jackson, 1993) found that social isolation such as being single can also be regarded a possible travel constraint. These factors might hinder or reduce the tourists to purchase their travel arrangement.
Rational Choice Decision Making Process. by Mchsane/ Von Glinow 2015.
Is characterized by six steps in decision making in which the individuals identify, select and execute the best alternatives. In this framework, we relate the three key elements mentioned by CITATION Wit13 l 1033 (Wittek, 2013) namely, preference, beliefs, and constraints. Beliefs and constraints appear on the first three steps. Given that belief, rationality can be shaped by the agent’s desires, not directly (as in wishful thinking) but indirectly through the process of information acquisition CITATION Els09 l 1033 (Elster, 2009). The early stage was related to beliefs in which it is the primary basis of the individual together with the information he/she acquired in making such decisions. Constraints appear in this step simply because the agent will first evaluate the situation in order to maximize its full utility. The last few steps reflect the preference mainly because the decision was finally executed by the agent. The decision made by the individual was evaluated in order to distinguish if it maximizes the full utility of the course of action.
1.4 Conceptual Framework
The researcher uses the Input, Process, Output or IPO method/model for the conceptual framework in which will provide the general structure and for the direction of the study CITATION Lal14 l 13321 (Lala Eusebio, 2014).
According to CITATION Wit13 l 1033 (Wittek, 2013) rational theory is a model that explains social phenomena as outcomes of the individual actions in some way is constructed as rational. This theory, tells that preference denotes to a positive and negative evaluation of an individual attached to the possible outcomes of their action.
Wittek stated in his study that Rational Theory has three factors: Preference in which the individual can choose between the available choices, Beliefs that said that it would be the cause and effect relation, and Constraints in which hindered tourist in making decisions CITATION Wit13 l 1033 (Wittek, 2013). As an input on this framework, the researcher supports the factors with the sub-factors that was categorized using journals that relate to this study in which they mainly talk about the importance of it in the research. Researchers came up with four sub-factors that are the most common talk in the study and these are The Accessibility of Information, The Cost of Travel Arrangement, Ease of Transaction and Flexibility of Travel Arrangement. With the help of these sub-factors, the researchers can easily identify on how it will affect the perspective of the tourist Millennials. The study of CITATION Usi l 13321 (Oana Tugulea, 2014) talk that accessibility of information is one of the most important aspects that the tourist considered, information can be asked to a travel consultant since they are more knowledgeable about the tour arrangements and such or scroll through sites which give tourist more options, and also stated that internet provides every information that the travellers need. Cost of travel arrangement mainly depends on the budget or wants of the traveler CITATION Jam80 l 13321 (Moncur, 1980). When it comes to ease of transaction, this factor is about how well the transaction between the tourist and supplier or the travel agency. Tugulea CITATION Oan14 l 13321 (Oana Tugulea, 2014) stated that if tourist choose to be accommodated by the travel agency tourist must directly visit the physical agency office for them talk about the plans and some recommendation, yet if tourist prefer to arrange their own booking and since they are provided with so much information it is an advantage for them to stay at home and directly contact the supplier stated in this Baghdadi’s journal CITATION Ibr13 l 13321 (Baghdadi, 2013). Flexibility of transaction Baghdadi CITATION Ibr13 l 13321 (Baghdadi, 2013) stated that 71% of his respondents will book through travel agency because they can be provided a tailored tour package base on their preferences and if a tourist prefer to have an independent booking they will have more options and information since the internet will provide their need and questions for their uncertainties CITATION Oan14 l 13321 (Oana Tugulea, 2014).
As for the process, the researcher will be using a Quantitative Approach. According to Creswell CITATION Cre03 l 1033 (Creswell J. W., 2003), this method involves the gathering of data information to strongly support its claims. In order to gather data, the researchers will be conducting a survey with a question that was formulated based on the factors, it will be through online or they will be given a hard copy.
As when the result come out this study will help travel agency and apps or websites that allow the tourist to have their own booking to identify the perspective of the tourist that can help them improve the marketability/ dependency on different booking options. Tourist, on the other hand, will be more
1.5 Research Objectives
To know whether the millennials will have a significant difference in finding satisfaction towards booking via a travel agency or independently booking their travel needs.
What are the factors that greatly affect their decision making, either booking independently or via travel agency?
What is the millennial’s perception of identified factors such as accessibility?
What would be the possible constraints that may occur in the process of booking their travel arrangements?
What are the common beliefs associated with booking travel arrangements through the means of a travel agency and independent booking?
H1: There is no significant difference between the level of satisfaction of the travelers that availed from the travel agency than the direct buyers who shouldered all the burden on transacting the different tourism components. For some travel agents who are not licensed by the Department of Tourism creates a bad image towards their company which leads to a manual booking of accommodation instead for the direct buyers. There are a lot of things to do in just a snap of a finger with technology, the rapid growth, and almost everybody has the ability to connect through the internet just to browse some promo fares directly from the airline’s website and choose from hundreds of hotel accommodation with different helpful travel apps.
H2: There is a significant between the travellers who opt to seek help from a professional travel consultant since it is hassle free, communications are open through emails or sending text messages from the clients and since the contact person in charge is the travel agents if ever there are adjustments from the itinerary or the hotel accommodation, it is much easier to address it to the client.
1.7 Significance of the study:
The study about the travel agency booking vs. independent booking will benefit the different sectors such as the tourism industry, travel agents, researchers, travelers and the suppliers. The researchers hope to contribute more to the depth of research materials on the subject.
.1. To future travelers. Some of the tourists are not aware of the ins and outs of a travel agent and on how they transact to the different tourism sectors starting from the different components of a tour package just to provide them the affordable price and quality service. In this study it will help them to fully understand the duties and responsibilities of each travel agent dealing with each time they are being assisted.
2. To the future travel agents. This study will help regenerate a new tactic in order to gain sales, provide the best service for the clients. In case there are any circumstances that were not met in a certain agreement between the travel agent and the customer it will create a bad image towards the agency. A professional travel agent must know the places that best suits best for the client and the activities included in the tour packages.
3. To the suppliers. Travel agencies without their suppliers who will provide the tourism related services to their clients such as activities that are to be done in a particular destination, air transportation, hotel accommodation and travel insurance. They would not be able to cater the needs of their clients and provide a quality service. In this study, they will benefit from the research conducted on how to approach direct buyers not just supplying the travel agencies itself.
4. To the tourism industry. The tourism industry is one of the largest industry that produces a huge amount of money in the global economy in terms of accommodation, transportation, entertainment, and shopping destinations. These components of a tour package must be given importance thus this study will help improve the quality of service.
5. To the researchers. This study will educate the researchers with what to consider when negotiating from a travel agent compare to shouldering all the duties and responsibilities that have been covered during the whole process of the research that would help them to be aware of the issues that can possibly happen. The outcome of the study will give them a specific idea towards this study and provide updated information for everyone.
1.8 Scope and Limitations of the Study
This research aims to know which are among two means of booking arrangement they prefer. Is it the old-fashioned going to a travel agency to avail a tour package or searching online and book it by you and organize everything from time, airfares, land transfers, accommodation and etc. Also to know which is more convenient for the travelers, do they want a fixed schedule like what most tour packages have or you want a flexible time schedule that you can control any time you want. The hierarchy level of travel needs as proposed by Patrick Singleton that there are a hierarchy of travel needs consists of feasibility, accessibility, safety and security, cost and pleasure. Given that the one being arranged by the travel agency is a fixed schedule of itineraries and the other one is they can add or remove based on their mood and taste or which they prefer and satisfy their travel experience more. This study will tackle on which they prefer more regardless that a travel agency is a physical or online store. The respondents that will be covered are only millennial professionals. The researchers will have to maximize their time to gather all data needed for the study. The targeted date in gathering data is on March 2-3, 2018. Also, we will be focusing on leisure travelers rather than business travelers.
1.9 Definition of Terms
These following terms will be used in this study:
Accommodations- Accommodation in the form of low budget lodges/hotels to world-class luxury hotels is available at all the major tourist destinations to provide the tourist a home away from home. These are establishments that provide a place for the tourist to stay i.e. lodging facilities which are paid for the duration of the stay by the tourist. (National Institute of Open Schooling)
Beliefs- Assumptions and convictions that are held to be true, by an individual or a group, regarding concepts, events, people, and things. (BusinessDictionary.com)
Constraints- A limitation or restriction.
DIY/ Independent booking: the client itself is the one reserving their accommodations through the website of a particular tourism component.
Feasibility- The state or degree of being easily or conveniently done.
Leisure Travellers- travel in which the primary motivation is to take a vacation from everyday life. (usatoday.com)
Licensed Travel Agency- An accredited private retailer or public service that provides travel and tourism related services to the public on behalf of suppliers such as activities, airlines, car rentals, cruise lines, hotels, railways, travel insurance, and package tours.
Millennials – The generational demographic cohort following Generation X. Typically use the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years
Online Booking System- is a software you can use for reservation management. They allow tour and activity. Operators to accept bookings online and better manage their phone and in person bookings. But they also do so much more than that. (CheckFront.com)
Portal – a website that functions as an entry point to the Internet, as by providing useful content and linking to various sites and features on the World Wide Web. (Dictionary.com)
Non Probability sampling- Non-probability sampling represents a group of sampling techniques that help researchers to select units from a population that they are interested in studying. (dissertation.laerd.com)
Preferences- refer to certain characteristics any consumer wants to have a good or service to make it preferable to him. This could be the level of happiness, the degree of satisfaction, utility from the product, etc. (Economic Times)
Quantitative approach- Quantitative analysis involves using scientific or mathematical data to understand a problem, such as analyzing surveys to predict consumer demand.(smallbusinesschron.com)
Rational Choice- individuals always make prudent and logical decisions
Tourists- a person who travels and visits places for pleasure and interest. (Cambridge Dictionary)
Tourism- comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes. (UNWTO)
Transaction-: Agreement, contract, exchange, understanding, or transfer of cash or property that occurs between two or more parties and establishes a legal obligation. Also called booking or reservation. (Business Dictionary)
Travel Agency- an agency engaged in selling and arranging transportation, accommodations, tours, and trips for travelers.
Travel agents- a person engaged in selling and arranging transportation, accommodations, tours, or trips for travelers. (Merriam Webster)
Tourists- a person who travels and visits places for pleasure and interest. (Cambridge Dictionary)
Subchapter 2.1: Factors that greatly affect their decision making
Due to the advancement of the technology through the internet, the customers have a variety of choices to choose from. Every now and then people book their travel arrangements ahead of time, looking forward to travel promos. The online booking may cause a threat for the travel agencies since clients have the opportunity to book their travel arrangements online for them to communicate the suppliers directly and avail the products that are much cheaper prices this cause the travel agency to shut down their operation. It has been shown in many studies that people travel much more these days than ever before CITATION Dos97 l 1033 (Doswell, 1997) The age of travellers does not relate to choice of booking via the internet or through the travel agent, since older people know how to manipulate the gadgets that we use like smartphones or computers and internet is mostly accessible everywhere
The difference between having a transaction from a travel agent is that they will be the one to address all your concerns about your chosen itinerary to their suppliers compare to shouldering the burden. In influencing consumer behavior when making travel decisions with specific reference in choosing online travel booking or through the travel agency CITATION Eze15 l 1033 (Ezeuduji ; de Jager, 2015) reflects the way consumers want in choosing a travel agency who will organize their travel bookings. The consumers opt to choose the best travel agency in terms of time management. Travel agency makes the consumer’s life easier compared to online travel booking. It may seem to look good when the consumers are transacting through the travel agency but the disadvantage is, they have to cope up with the fixed itinerary.
Subchapter 2.2: Millennials preference on accessibility.
On this part of the research, the journals collected gives similarities in the aspects of the perception of the traveler or consumers when it comes to accessibility. Some studies stated that travelers who prefer to have independent bookings prefer to have a reliable site that give them specific information for them to save more time in looking for their need rather than visiting more site that can lead to confusion. As said to the study of Thomas Mayr and Andreas H. Zins CITATION Tho12 l 13321 (Zins, 2012) they try to gather information regarding the perception of the consumer, the service quality approach and price perception is most likely drives the travelers or consumer in different travel distribution channels. The study is about travelers who prefer to go through the traditional travel agency CITATION ZuH09 l 13321 (Cheng, 2009), it stated that most consumers seek in a travel agency or consultant is knowledgeable and experienced when it comes to the industry, helpful and friendly staff/consultant.
This study CITATION Mer1 l 13321 (Cem) provide social media survey for them to know how was the decision-making process changed in selecting a destination and what impact does it have on decision-making-process. In the study of Cristina Ressel CITATION Cri16 l 13321 (Ressel, 2016) they have their questionnaire distributed mainly on Facebook for them to be able to reach consumer that is born between 1980 and 2000 they use the Facebook due to its popularity and it appeared to the most suitable channel for the survey. Peter Belenky CITATION Pte11 l 13321 (Belenky, 2011) get his result from looking in various websites review and journals based on the traveler’s constraints on income and the minimum amount of time they spend in looking for their information.
This research mainly talks about the perspective of millennial travelers in terms of booking their trip through a travel agency and independent booking. The results of the research will help the tourists to identify which one is more reliable for them. Based on the journals, tourists prefer reliable sources. They made sure that before purchasing their trip they must talk to someone knowledgeable.
Subchapter 2.3: Possible constraints that may occur in the process of booking
In researches, online reviews affect the trust of the tourists towards the hotel and affect their decision in choosing CITATION Seo17 l 1033 (Seo, Jong, ; Sang, 2017). This gives an insight on other travelers experience during the purchase of service. The research focused on the trust of individuals who uses online booking sites. CITATION Pen13 l 1033 (Peng, Xu, ; Chen, 2013) added that online travel booking was increasing and adopted by a lot of tourists. Based on CITATION Pte11 l 1033 (Belenky, 2011) that emphasized reliability, because some travelers sacrifice their time and effort just to ensure that they will arrive at the destination right on time. Another insight from CITATION Wil08 l 1033 (Wilson ; Little, 2008) states that women have a greater array of tourism and leisure choices yet they might be constrained by their social and gendered location as women. This implies that gender can somehow affect their decision in choosing their travel arrangement.
The study conducted by CITATION Wil08 l 1033 (Wilson ; Little, 2008) was focused on women who do solo travel. An exploratory study was conducted on 40 women. In-depth interview was done to be able to know the constraints. 4 interlinking constraint was identified characterized by socio-cultural, personal, practical and spatial. A research from CITATION Pte11 l 1033 (Belenky, 2011) tackles for reliability. Given by the uncertainty of time travelers usually use a buffer in their schedule, leaving early to assure that they will be on time for their trip. CITATION Seo17 l 1033 (Seo, Jong, ; Sang, 2017) highlighted the trust of the travelers in online booking. The tourists will show that individuals tend to confirm their booking when they think their perceived value will be satisfied. This study performed online survey as methodology. The online survey is consisted of questions prior to the study that will prove its validity and reliability. Another study was conducted by CITATION Fer16 l 1033 (Ferreira, Perks, ; Oosthuizen, 2016) that explains the constraints of booking a travel arrangement. Work, personal and accessibility are clearly specified. A quantitative research paradigm was applied and a survey was conducted among 301 outbound South African travelers. The gathered data was analyzed using descriptive statistics. CITATION Pen13 l 1033 (Peng, Xu, ; Chen, 2013) discussed about a new research agenda in tourist behavior while booking their arrangements that proposed an empirical method in the future study. Empirical methods are employed in this behavioral research. In general, it emphasized the different constraints experienced by the travelers in terms of booking their arrangement.
Since the research is about the preference of the millennials between two medium of travel arrangements which is travel agency and independent booking it gives us an idea how travelers nowadays purchased their travel. The journals imposed different factors that influence travelers in booking their trip as well as the occurrence of constraint in their travel. It displays an amount of information that gives knowledge to all travelers on which medium is more advisable to the public. Since the study also includes constraints, travelers can have an idea about the weaknesses of the two as well as its advantages. Through all the gathered information from various respondents this will give a timely perspective to the tourists.
Subchapter 2.4: Common Beliefs in booking travel arrangements
Common beliefs have an effect on people’s decision-making skills. Those stereotypes that we often encounter have been embedded in our minds thus making us think that this is what okay or normal. In booking travel arrangements common beliefs cannot be avoided since people have a tendency to believe in what they usually read or hear through word of mouth. In this, it will be discussed what are the common beliefs of travelers in traditional travel agency booking and online or independent booking. When it comes to travel agency booking the most common beliefs are the expertise, benefits, clear information, little effort coming from the traveler which are all positive. If there is a positive belief about it then there is also the negative one like an agency has a fixed programme, high prices, and not all received information corresponds to reality CITATION Tug l 13321 (Tugulea, Bobalca, Maha, & Maha, 2014). There is still a substantial portion of the travel and tourism market that prefers to use the services of travel agents for their travel and tourism needs. In a study, it was found out that these consumers prefer to use travel agents because of the expertise, financial and support benefits that travel agents offer them CITATION Ter151 l 13321 (Terblanche, 2015) CITATION Egg02 l 1033 (Eggert & Ulaga, 2002). For the people who prefer travel agencies, most of them believe that they have the possibility to be helped by the TAs when it comes to their decision making CITATION Bog l 13321 (Bogdanovych, Berger, Simoff, & Sierra, 2005). It is believed that it is easier to talk to travel agents and also it is much safer to purchase airline tickets with them. On the other hand, nowadays it gets more and more difficult for “brick and mortar” travel agencies to compete and keep up with the Internet and its online booking potential. It seems that most of the travelers tend to prefer the online experience because it’s better manner of visualizing destinationsCITATION Tug l 13321 (Tugulea, Bobalca, Maha, ; Maha, 2014). Young travelers use the internet when they decide to plan a trip CITATION Tug l 13321 (Tugulea, Bobalca, Maha, ; Maha, 2014). But despite its popularity, this also has positive and negative beliefs just like the traditional travel agency. Online travel booking provides more information, it easy to find what you want, costs less that travel agencies offer and etc. Some have believed that online booking is too risky and the fear of being scammed, are examples of the most common negative belief. The ease of access and the large quantity of information available via the internet have made it one of the most important information sources to acquire travel information. Furthermore, the internet also provided opportunities for consumers to seek out special promotions at a discounted rate or any last minute bookings CITATION NgE l 13321 (Ng, Cassidy, ; Brown). Research indicates that most consumers are concerned are concerned with acquiring good value for their money instead of solely seeking the lowest possible price CITATION Gup10 l 1033 (Gupta ; Kim, 2010); Peterson, 2011). These studies mentioned and used for this part of the research shows its similarities in terms of their study regarding what kind of similarities travel agencies and independent booking has in terms of common beliefs. These studies show common descriptions about the two means of booking.
Although these studies have similarities most especially in their topics they also have differences. Their differences are found in the methodology wherein it will be explained how these researchers have been conducted. The methods used in these studies were mostly through survey but they have different approaches. The contents of the questionnaires they have used have distinct differences since they do not have same types of respondents. In the study conducted byCITATION Tug l 13321 (Tugulea, Bobalca, Maha, ; Maha, 2014), they have used qualitative and quantitative. Qualitative was used specifically exploratory qualitative research. This type of research is suitable “where the research emphasis is on the in-depth understanding of how, why and in what context certain phenomena occur” CITATION Car01 l 1033 (Carson, Gilmore, Perry, ; Gronhaug, 2001). For their quantitative, they have chosen a focused group. For their sampling, the sample is represented by 21 students, 10 men and 11 women, ages 19-26 years CITATION Tug l 13321 (Tugulea, Bobalca, Maha, ; Maha, 2014). Also, they have certain factors to consider in grouping the respondents for the focused group. For CITATION Ter151 l 13321 (Terblanche, 2015), the methodology followed consisted of studying websites of travel agents, the international association air transport, the world travel agents association alliance. They have also opted for online survey wherein they had a random sample of 10000 email addresses of customer that fly regularly was purchased from the data suppliers. While for the study conducted by CITATION NgE l 13321 (Ng, Cassidy, ; Brown), which focused on why consumers still prefer travel. The study used two stages but the second stage is the only one elaborated in the paper. The exploratory stage took form in-depth interviews with five frequent travelers, fu e occasional travelers and three experienced travel agency consultants, to investigate the appropriateness of those travel agencies selection sources identified in the preliminary model. The selection on of the interviewees was based on convenience judgment sampling and interviews were semi-structured. In a study conducted by CITATION Bog l 13321 (Bogdanovych, Berger, Simoff, ; Sierra, 2005) which also focused on the comparison of travel agency and online booking, they have used two stages of qualitative inquiry same with CITATION NgE l 13321 (Ng, Cassidy, ; Brown) but the difference is that both stages were discussed in the paper. In this study, the questions were based on the literature review and the information obtained through semi-structured interviewing of a carefully selected target sample. This study sample has been composed of people possessing ample of expertise in online booking but also considered Travel Agency point view. CITATION Bog l 13321 (Bogdanovych, Berger, Simoff, ; Sierra, 2005). All these related journals have similarity in the course of topic their differences are very evident in how they conducted their studies and who they have chosen as respondents. Other research has focused on only one side while the others have focused on both sides.
These studies for this subchapter are found to be appropriate for the nature of this research paper. The related literature will guide the researchers on what are the things they have to consider in doing their research. With these studies focusing on the common beliefs of travelers when it comes to those two booking methods, the researchers will be able to identify what are the things they might be able to add in their study that these related studies have not tackled. This research paper will be a support for studies in the course of nature and distinct from others since it will focus on the millennials perspective since it will be based on the current trend in today’s society. Also, this research paper will be a comparative study that will help widen the knowledge about why people chose the means of booking they have chosen.
Synthesis of the Study
These journals that were used as a reference in this research has similarities. It can be in their beliefs, perception, and constraints. Some journals presented they need to have a reliable source for them to have efficient time in finding the for their travel needs that will satisfy them the most they need different perceptions and also for the reliable price. Somehow their different studies have they need help from an expert in travel industry such as travel consultants. The constraints that are presented in these such e-journals have similarities such as solo women travelers facing constraints specifically spatial, socio-cultural and practical. They have common beliefs regarding in travel agency booking and independent travel booking. In a travel agency, this will help the traveler’s decision-making process in choosing the suitable travel needs. With the independent travel booking, they have doubts in using online booking websites because for them and it’s risky and the fear of being scammed. When it comes to the preference, most journals present that travelers choose online booking. Tourists believed that it is cheaper compared to travel agency rates.
Despite with these given similarities during the course of this study, the researchers found out differences in constraints, preferences, and beliefs. A study by (Cem) the method that they used in gathering respondents by social media and the other study cited that the method they used in giving out surveys is through Facebook. To collect more millennial respondents since most users are what they called millennials. Journals that are presented in subchapter one that ages of the travelers will not affect their choice of travel booking arrangements. The other subchapter used Qualitative approach and Quantitative approach. A journal based its study on online reviews. On the last subchapter, it was found that they have respondents such as professionals, young travelers and age and method was an online survey.
The researchers of this study believe that this study is appropriate in today’s age of technology in which most people have access to the internet. This study focuses on the factors that were specified in research objectives to achieve more precise findings or results in the end. Most journals that were collected are from an international perspective. The researchers had a hard time in finding studies that were based in the Philippine setting. That is why this study would like to focus on local setting. This study also focuses on millennials perspective who has the means to travel and tend to be adventurous and to find what will suit their travel needs.
3.1 Research Design
The researchers will be using Quantitative approach. Quantitative research involves the collection of data so that information can be quantified and subjected to statistical treatment in order to support or refute “alternate knowledge claims” CITATION Cre03 l 1033 (Creswell, 2003). CITATION Cre02 l 1033 (Creswell J. , 2002) asserts that quantitative research originated in the physical sciences, particularly in chemistry and physics. The researcher uses mathematical models as the methodology of data analysis. Three historical trends pertaining to quantitative research include research design, test and measurement procedures, and statistical analysis. Quantitative research also involves data collection that is typically numeric and the researcher tends to use mathematical models as the methodology of data analysis. Additionally, the researcher uses the inquiry methods to ensure alignment with statistical data collection methodology. CITATION Car07 l 1033 (Williams, 2007 )The type of research design that will be using in this entire study is Descriptive. The descriptive a definition provided by University of Manitoba research attempts to describe, explain and interpret conditions of the present i.e. “what is’. The purpose of a descriptive research is to examine a phenomenon that is occurring at a specific place(s) and time. A descriptive research is concerned with conditions, practices, structures, differences or relationships that exist, opinions held, processes that are going on or trends that are evident. The term descriptive research refers to the type of the research question, design and data analysis that will be applied to the given topic. The type of question asked by the researcher will ultimately determine the type of the topic at hand. Descriptive studies primarily concerned with finding “what is”. CITATION Knu l 1033 (Knupfer & McLellan)The researchers have chosen those types of studies since it is the most applicable way of gathering the needed data for this research. Since this study will be focusing on the comparative study between a travel agency and Independent travel booking from a millennials perspective, having a structured questionnaire will help the researchers to compare the responses in a much more efficient manner. The quantitative type has a mathematical aspect wherein through it, the results will be much more organized and easier to identify. The descriptive type of study answers the question “what if” is appropriate for this study since the questionnaire will also be giving out “what if” questions. Through the combination of Quantitative and Descriptive study, the researchers will be able to conduct a much precise study and results. Having to focus on the perspective of millennials, this type of method will help compare answers and arrive at a much clearer conclusion in the end.
3.2 Sampling Design
The samples in this research are millennials ages between 22- 38 years old, male or female and must qualify in the salary bracket that was provided.
The researchers will use the Non Probability sampling. In which the researchers will choose the most efficient way. Much less complicated, less expensive and can be done at the spur of the moment. Can take advantage of whoever is available.CITATION DrR l 1033 (King) The non-probability type that will be applied in this study is the Convenience Sampling. Convenience sampling (also known as availability sampling) is a specific type of non-probability sampling method that relies on data collection from population members who are conveniently available to participate in the study. CITATION Sau12 l 1033 (Saunders, Lewis, & Thornhil, 2012)Convenience Sampling will be applied in this study because it is easier to reach respondents through it. The study will be focusing on Millennials which is part of a huge population thus the researchers have decided it is best to use this since they’ll be able to reach a required number of respondents by having to focus on specific demographics. Although this type of sampling does not represent the entire population of millennials, this will study will still show what do some of the millennials prefer when it comes to booking travel arrangements. Also, this type of nonprobability sampling is recommended for studies that will experience time constraints. The researchers will also be using online survey thus convenience sampling can be applied. The researchers can easily reach out to respondents that are available, willing to cooperate and has an internet access.
This research will only be accommodating 100 respondents which are all millennials. The number of respondents of this research would also contribute to the credibility of the study; that is why it has been decided that not less than 100 respondents will be needed. Once the survey has reached its quota, the researchers would no longer be accepting any other responses coming from other respondents.
3.3 Data Collection Method
The study will be conducted to those working millennials. The researchers will provide a hard copy of the survey and it will also be available online. The content of the survey tackles the efficiency whenever the clients are booking their trip through online or with the help of a travel consultant. The survey questionnaire was formulated by the researchers.
In order to gather all the data needed in this study, the researchers made an online survey since millennials nowadays spend a lot of time browsing through the internet and it is an easy way to gather more respondents. After the survey has been done with the respondents, the researchers will now collect all the data gathered in order for them to identify the results.
3.4 Development of the Research Instrument
The questionnaire was formulated and patterned by the researchers that were based on the researchers’ objectives in order to acquire the intended answer. The researchers formulated the questionnaire guided by the journal of CITATION Tug l 1033 (Tugulea, Bobalca, Maha, & Maha, 2014) entitled “Using internet and travel agency in planning at trip; A qualitative research” and other academic journal. Platforms used to gather data is through internet and pen and paper survey. The target of this research instrument is to get data on about the preference of millennial travelers in terms of purchasing their travel arrangement between a travel agency and independent booking.
With the guide of the research objectives, the researchers were able to create a survey that was concentrated on the topic. The questionnaire was divided into two parts, the first section was a yes or no type of question and the second half is about choosing the most preferred medium, between travel agency booking and independent travel booking survey. The developed questionnaire was validated by professionals in the field of tourism.
QUESTION FIG. 3.1 (Yes or No Survey)
TRAVEL AGENCY BOOKING INDEPENDENT TRAVEL BOOKING
QUESTION FIG. 3.2 (Preference Survey)
3.5 Statistical Treatment of Data
The procedure that will be using for this research is the Paired T-test sometimes called the dependent sample t-test, is a statistical procedure used to determine whether the mean difference between two sets of observations is zero. In a paired sample t-test, each subject or entity is measured twice, resulting in pairs of observations. Common applications of the paired sample t-test include case-control studies or repeated-measures designs CITATION Lan l 1033 (Lani). The reason why this research will be using T-test is that we have two sets of observation which are Travel Agency Booking and Independent Travel Booking. Since this research goal is to find out what will the respondents would prefer.