A Prelimenary Study of Internet Impact on Online Based Ticketing System: A Case of Selected Travel Agencies in Kedah and Perlis

The impact of the internet is a significant issue in today's travel industry. The development of the internet has made information easily accessible to consumers and has
therefore established a direct link between consumers and suppliers. Consequently, traditional travel distribution channels such as travel agencies are considered to be
particularly vulnerable. A major feature of the change brought by the advent of the internet is "disintermediation", in which the internet has demonstrated the potential to replace travel Agencies' core competencies. This study focuses on the impact of the
internet on the travel agency sector and specifically in Malaysia. The research included in-depth interviews with travel agents and industry specialists to refine the main issues. Interviews with consumers were also carried out to ascertain the role of TAs in the internet age. The study shows that disintermediation is particularly pronounced in the relationship between airlines and travel agents. The main pressure factors on the travel agency market in Malaysia since the emergence of the internet are identified as (1) airline commission cuts (2) suppliers selling directly to consumers and (3) the rise of internet consumers who seek self-service travel arrangements. The study reveals several distinct modes in travel agencies' perceptions of their business environment and their survival
strategies. The reality of "reintermediation" is a reality for some Malaysian TAs. TAs that perceive ICT as a strategic tool and are oriented towards consumers appear to have a business edge.