- Email: [email protected]
travel websites?
Hospitality Management 20 (2001) 95–100
Research note
What online Hong Kong travelers look for on airline/travel websites? Ray Chu* Suite E, 9/F, Cameron Plaza, 23-25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong SAR, People’s Republic of China
Abstract A study was conducted to identify Internet users’ needs and expectations towards airline/ travel websites in Hong Kong. Five focus groups were conducted and the results showed that online shopping behavior centers around more traditional products such as compact discs, cinema tickets, souvenirs, gifts, software programs, books and so forth. Regarding their needs and expectations towards an ideal airline/travel website, Internet users believed that the content of it should be informative, interactive and attractive. # 2001 Elsevier Science Ltd. All rights reserved. Keywords: Airline avel website; E-commerce; Focus group; Internet users
1. Introduction In response to the fast pace of the information age, many airlines and travel agencies have been working hard to develop their own websites to facilitate E-commerce transactions. Nowadays, most airline/travel websites are designed to provide one-stop service. They are not only informative, but also functional, allowing Internet users to book a flight online, make hotel and car reservations, register packaged tours, and carry out other key functions. With the global climate, moving towards doing business electronically, airline and travel players have to understand well that adopting E-commerce to transform traditional ways of doing business means more than just increasing efficiency and effectiveness. On the customer side, due to increased sophistication and demanding attitudes, they are looking for the right combinations of products and services at the best price within *Tel.: +852-2747-5359; fax: +852-2141-5359. E-mail address: [email protected] (R. Chu). 0278-4319/01/$ - see front matter # 2001 Elsevier Science Ltd. All rights reserved. PII: S 0 2 7 8 - 4 3 1 9 ( 0 0 ) 0 0 0 4 6 - 3
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the shortest delivery lead-time. Traditional shopping channels may no longer satisfy them anymore. A recent US survey revealed that more and more Internet users will make their holiday travel plans via the Internet (Internet News. com, 1999b) in future. Of the 7700 respondents surveyed, 90% planned to purchase travel services online like airfare, followed by hotels (52%) and car rental reservations (42%). Another study shows that US Internet users will spend US$16.6 billion online in 2003 on leisure and business travel (Internet News. com, 1999a). Despite the lack of relevant data on Internet users with respect to the travel and tourism industry in Asia, International Data Corporation (IDC) forecasts that by 2003, the number of general Internet users will increase from 24.4 million to 137 million in Asia, or a rise of 561% (See Table 1). For Hong Kong, the equivalent growth rate is expected to skyrocket 329%, from 700,000 in 1998 to 2.3 million Internet users by 2003 (Law et al., 2000). This rapid growth rate of Internet users is expected to facilitate E-commerce in the business-to-consumer (B2C) sector. In the airline and travel industries, Internet users are being lured by more and better travel options, and this means that airline and travel players in the online travel market are not only competing among themselves, they are also competing with the traditional off-line airline and travel channels. Therefore, online airline and travel players must create product offerings that can simplify the purchasing process and exceed the value of traditional products and services (InternetNews. com, 1999a). Ever changing customer demand and increased global competition are the main driving forces for enterprises to seek continuous improvements in their product development. In view of the inevitable business dynamic, a study was conducted that aimed to explore Hong Kong travelers’ online behaviors, especially their needs and expectations towards airline/travel websites. It is believed that the findings from this study can provide insight and understanding for airline and travel industries to develop tailor-made and customized websites that cater much better to the needs of today’s sophisticated travelers.
Table 1 Growth in number of internet users in 1998 and 2003a Region
1998 (in million)
2003 (in million)
Growth rate (%)
Worldwide Asia China Hong Kong Singapore Taiwan Korea Japan
155 24.4 2.4 0.7 0.6 1 1.8 11.5
517 137 25.2 2.3 1.9 4.5 9.2 60.3
336 561 1,005 329 312 450 511 524
a
Law et al. (2000).
R. Chu / Hospitality Management 20 (2001) 95–100
97
2. Methodology This is an exploratory study in which information is collected using a focus group interview technique. Hughes and DuMont (1993) defined focus groups as an in-depth group interview employing relatively homogenous groups to provide information about topics specified by the researchers. Such a process allows for the exploration of attitudes and perceptions of people on specific topics. In this study, three areas were explored, including: 1. What do Hong Kong Internet users normally do online? 2. What are Hong Kong Internet users’ likes and dislikes about online activities? 3. What contents and features do Hong Kong Internet users expect to see in an airline/travel website? Five groups were conducted in Hong Kong in early 2000, with each group covering 7 to 8 respondents. To obtain findings from various perspectives, the study included three groups of Chinese travelers and two groups of Caucasian travelers. In addition, the respondents associated with each group comprised similar characteristics: 1. Mix of males and females. 2. A mix of business and leisure travelers. 3. Is the decision maker when selecting an airline.
3. Results A total of 36 respondents were invited to join the focus groups. Of these, 22 were Chinese and 14 were Caucasians. The results section focused on three areas: (1) online activities, (2) likes and dislikes about online activities and (3) needs and expectations towards airline/travel websites. 3.1. Online activities In general, all respondents have had experiences with Internet. Sending/receiving e-mail is the most common activity to be done on the Internet. Respondents normally have their own e-mail accounts and they would check information online whether it is work-related or personal. Other online activities they mentioned include: playing chat room and searching information such as companies, career, news and affairs, financial data, education and studying, sports, travel, shopping, products, etc. In addition to communication and information search, some respondents may download free software programs or games online. Nevertheless, the results showed that not many passengers have had much experience with online shopping. Top product categories purchased online include cinema tickets, compact discs, software programs, books and gifts. As these products are basically homogeneous in nature (i.e., they can be bought everywhere) and
98
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involve relatively low involvement of risk, respondents are more willing to make online purchases of them. In contrast, a very few of them have made air ticket purchases online which are perceived to have high involvement of decision making. 3.2. Likes and dislikes about online activities When asked about what they liked about online shopping, most respondents stated that online shopping is convenient. It is faster to get information online; it is easy to make any purchase anytime and anywhere 24 hours a day, 7 days a week; and there are numerous varieties of products offered in different websites. Regarding dislikes, most respondents generally believed that online shopping is an infant activity in Hong Kong. They are naturally skeptical as online shopping represents a new channel for them. Some respondents mentioned that online shopping is too intangible and basically lacks a sense of fun. It means that buyers cannot actually see and feel the products before purchasing it. To most female respondents, they believed that physical shopping is a form of leisure activity that online shopping can hardly offer. Besides, perceptions of insecurity, lack of privacy statements, slow navigation, limited discounts offered and technical obstacles are the other concerns raised by respondents when purchasing online. Another finding showed that most respondents are regarded as offline shoppers: they look for product and price information online but the actual purchase is made outside of the Internet. However, the results of this study revealed that respondents are well prepared and ready to buy online if the concerns they raised can be solved. 3.3. Needs and expectations towards an airline/travel website Respondents were then asked what they expected to see from an airline/travel website. Results were basically categorized into three contexts: informative, interactive and attractive. Informative. Online users want to see the travel/destination-related information from the airline/travel web site, including flight and route schedules, and published price as well. Some respondents expect to see a one-stop service provided by the airline/travel website. Information deemed necessary for better itinerary planning includes: hotel booking, car rentals, attractions, cuisine, weather conditions, local tours, train passes, traveler’s checks, traveling insurance, custom policies, and so forth. In order to facilitate better pre-flight planning, some respondents suggested that they would like to get the flight capacity information on the travel websites. This can enable them to book a particular flight in advance and have better planning for their trips. Other information respondents like to see on a travel website include online entertainment guide and frequent flyer program information. They advised to host the entertainment programs online so that they can prepare themselves in advance for various inflight activities. For frequent travelers, they expect to get most of their frequent flyer program information online such as mileage balance, reward systems, mileage redemption transactions, etc.
R. Chu / Hospitality Management 20 (2001) 95–100
99
Interactive. Respondents are receptive to online booking. In particular, they suggested that an aircraft floor plan with the seat map be shown online. Just like buying movie tickets online where people click to select the seats from the floor plan of a cinema, travelers can do it the same way to select their own flight seat by just clicking the icon online. In addition to flight booking online, online meal reservation is also a good idea for travelers. This can save time and allows travelers to know exactly what they will be served prior to the journey. Though E-commerce is highly beneficial in reducing business costs, improving timeless and speed, and creating opportunities for new or improved services, security and user confidence are some areas of concern to most Internet users. To make online air booking and payment successful, respondents suggested that several aspects are to be abided: Authentication (to prove the identity of the parties in an electronic transaction), Confidentiality (to protect the content and information of a transaction from unauthorized third party), Integrity (to protect the content of a message that has not been tampered with), Non-repudiation (to agree the terms of transaction and prevent denial of commitment), and Legal Commitment (to protect an electronic transaction with legal backing). Attractive. For a website to be successful in drawing Internet users, the content of it should be attractive. Some Internet users suggested that special travel packages or discounted packages should be offered on airline/travel websites. Bonus mileage, souvenirs, gifts, coupons and cash rebates are some of the examples that can be incorporated in the content of the website to reward and encourage travelers for using online booking and payment. Other value-added features recommended by respondents include an online simultaneous currency converter. This would be helpful for passengers when figuring out the amount of currency that they need to exchange for their trips.
4. Conclusion As the global business climate is moving towards innovation and the development of advanced information technology to improve productivity and increase competitiveness, the globalization of information technology has led many enterprises to change their traditional ways of doing business. While information technology enables many to work faster and smarter, it also increases the expectations of both entrepreneurs and customers. This study has briefly identified the online behavior of passengers and their needs and expectations towards airline/travel websites. The findings have shown that passengers have had online shopping experience, but this has been confined only to products that are homogeneous in nature with low risk of involvement. More than just purchasing a ticket online, passengers have suggested valuable ideas that can make the website more comprehensive, appealing and attractive while providing one-stop services and information. From the passengers’ points of view, an airline/ travel website should be Informative – (travel/destination-related information, flight capacity information, frequent flyer program information and online entertainment
100
R. Chu / Hospitality Management 20 (2001) 95–100
guide), Interactive – (online booking, seat and food reservation) and Attractive – (special travel packages, bonus mileage, souvenirs, gifts, coupons, discounts and cash rebates). This study has raised issues for further investigation about online travel experiences. It provides a foundation and a stepping-stone for subsequent qualitative and quantitative research studies to further explore travelers’ needs and expectations about airline/travel websites. The researcher believes that understanding and including those elements passengers want to see and get from an airline/travel homepage will make them more likely to become loyal to the website.
References Hughes, D., DuMont, K., 1993. Using focus groups to facilitate culturally anchored research. American Journal of Community Psychology, 21(6). Internetnews.com, 1999a. Travel suppliers missing online market potential. http://www.internetnews.com/ ec-news/article/0,4_118241,00.html, May 14. Internetnews.com, 1999b. Survey predicts online rush for holiday travel planning. http://www. internetnews.com/ec-news/article/0,4_233811,00.html, November 8. Law, S.P., Leung, A., Hui, C., 2000. Ways leading to E-commerce. Economic Digest Publication Limited, April.
Ray Chu is a researcher. His research interests include customer satisfaction, customer relationship management, service quality and Internet marketing.
Research note
What online Hong Kong travelers look for on airline/travel websites? Ray Chu* Suite E, 9/F, Cameron Plaza, 23-25A Cameron Road, Tsimshatsui, Kowloon, Hong Kong SAR, People’s Republic of China
Abstract A study was conducted to identify Internet users’ needs and expectations towards airline/ travel websites in Hong Kong. Five focus groups were conducted and the results showed that online shopping behavior centers around more traditional products such as compact discs, cinema tickets, souvenirs, gifts, software programs, books and so forth. Regarding their needs and expectations towards an ideal airline/travel website, Internet users believed that the content of it should be informative, interactive and attractive. # 2001 Elsevier Science Ltd. All rights reserved. Keywords: Airline avel website; E-commerce; Focus group; Internet users
1. Introduction In response to the fast pace of the information age, many airlines and travel agencies have been working hard to develop their own websites to facilitate E-commerce transactions. Nowadays, most airline/travel websites are designed to provide one-stop service. They are not only informative, but also functional, allowing Internet users to book a flight online, make hotel and car reservations, register packaged tours, and carry out other key functions. With the global climate, moving towards doing business electronically, airline and travel players have to understand well that adopting E-commerce to transform traditional ways of doing business means more than just increasing efficiency and effectiveness. On the customer side, due to increased sophistication and demanding attitudes, they are looking for the right combinations of products and services at the best price within *Tel.: +852-2747-5359; fax: +852-2141-5359. E-mail address: [email protected] (R. Chu). 0278-4319/01/$ - see front matter # 2001 Elsevier Science Ltd. All rights reserved. PII: S 0 2 7 8 - 4 3 1 9 ( 0 0 ) 0 0 0 4 6 - 3
96
R. Chu / Hospitality Management 20 (2001) 95–100
the shortest delivery lead-time. Traditional shopping channels may no longer satisfy them anymore. A recent US survey revealed that more and more Internet users will make their holiday travel plans via the Internet (Internet News. com, 1999b) in future. Of the 7700 respondents surveyed, 90% planned to purchase travel services online like airfare, followed by hotels (52%) and car rental reservations (42%). Another study shows that US Internet users will spend US$16.6 billion online in 2003 on leisure and business travel (Internet News. com, 1999a). Despite the lack of relevant data on Internet users with respect to the travel and tourism industry in Asia, International Data Corporation (IDC) forecasts that by 2003, the number of general Internet users will increase from 24.4 million to 137 million in Asia, or a rise of 561% (See Table 1). For Hong Kong, the equivalent growth rate is expected to skyrocket 329%, from 700,000 in 1998 to 2.3 million Internet users by 2003 (Law et al., 2000). This rapid growth rate of Internet users is expected to facilitate E-commerce in the business-to-consumer (B2C) sector. In the airline and travel industries, Internet users are being lured by more and better travel options, and this means that airline and travel players in the online travel market are not only competing among themselves, they are also competing with the traditional off-line airline and travel channels. Therefore, online airline and travel players must create product offerings that can simplify the purchasing process and exceed the value of traditional products and services (InternetNews. com, 1999a). Ever changing customer demand and increased global competition are the main driving forces for enterprises to seek continuous improvements in their product development. In view of the inevitable business dynamic, a study was conducted that aimed to explore Hong Kong travelers’ online behaviors, especially their needs and expectations towards airline/travel websites. It is believed that the findings from this study can provide insight and understanding for airline and travel industries to develop tailor-made and customized websites that cater much better to the needs of today’s sophisticated travelers.
Table 1 Growth in number of internet users in 1998 and 2003a Region
1998 (in million)
2003 (in million)
Growth rate (%)
Worldwide Asia China Hong Kong Singapore Taiwan Korea Japan
155 24.4 2.4 0.7 0.6 1 1.8 11.5
517 137 25.2 2.3 1.9 4.5 9.2 60.3
336 561 1,005 329 312 450 511 524
a
Law et al. (2000).
R. Chu / Hospitality Management 20 (2001) 95–100
97
2. Methodology This is an exploratory study in which information is collected using a focus group interview technique. Hughes and DuMont (1993) defined focus groups as an in-depth group interview employing relatively homogenous groups to provide information about topics specified by the researchers. Such a process allows for the exploration of attitudes and perceptions of people on specific topics. In this study, three areas were explored, including: 1. What do Hong Kong Internet users normally do online? 2. What are Hong Kong Internet users’ likes and dislikes about online activities? 3. What contents and features do Hong Kong Internet users expect to see in an airline/travel website? Five groups were conducted in Hong Kong in early 2000, with each group covering 7 to 8 respondents. To obtain findings from various perspectives, the study included three groups of Chinese travelers and two groups of Caucasian travelers. In addition, the respondents associated with each group comprised similar characteristics: 1. Mix of males and females. 2. A mix of business and leisure travelers. 3. Is the decision maker when selecting an airline.
3. Results A total of 36 respondents were invited to join the focus groups. Of these, 22 were Chinese and 14 were Caucasians. The results section focused on three areas: (1) online activities, (2) likes and dislikes about online activities and (3) needs and expectations towards airline/travel websites. 3.1. Online activities In general, all respondents have had experiences with Internet. Sending/receiving e-mail is the most common activity to be done on the Internet. Respondents normally have their own e-mail accounts and they would check information online whether it is work-related or personal. Other online activities they mentioned include: playing chat room and searching information such as companies, career, news and affairs, financial data, education and studying, sports, travel, shopping, products, etc. In addition to communication and information search, some respondents may download free software programs or games online. Nevertheless, the results showed that not many passengers have had much experience with online shopping. Top product categories purchased online include cinema tickets, compact discs, software programs, books and gifts. As these products are basically homogeneous in nature (i.e., they can be bought everywhere) and
98
R. Chu / Hospitality Management 20 (2001) 95–100
involve relatively low involvement of risk, respondents are more willing to make online purchases of them. In contrast, a very few of them have made air ticket purchases online which are perceived to have high involvement of decision making. 3.2. Likes and dislikes about online activities When asked about what they liked about online shopping, most respondents stated that online shopping is convenient. It is faster to get information online; it is easy to make any purchase anytime and anywhere 24 hours a day, 7 days a week; and there are numerous varieties of products offered in different websites. Regarding dislikes, most respondents generally believed that online shopping is an infant activity in Hong Kong. They are naturally skeptical as online shopping represents a new channel for them. Some respondents mentioned that online shopping is too intangible and basically lacks a sense of fun. It means that buyers cannot actually see and feel the products before purchasing it. To most female respondents, they believed that physical shopping is a form of leisure activity that online shopping can hardly offer. Besides, perceptions of insecurity, lack of privacy statements, slow navigation, limited discounts offered and technical obstacles are the other concerns raised by respondents when purchasing online. Another finding showed that most respondents are regarded as offline shoppers: they look for product and price information online but the actual purchase is made outside of the Internet. However, the results of this study revealed that respondents are well prepared and ready to buy online if the concerns they raised can be solved. 3.3. Needs and expectations towards an airline/travel website Respondents were then asked what they expected to see from an airline/travel website. Results were basically categorized into three contexts: informative, interactive and attractive. Informative. Online users want to see the travel/destination-related information from the airline/travel web site, including flight and route schedules, and published price as well. Some respondents expect to see a one-stop service provided by the airline/travel website. Information deemed necessary for better itinerary planning includes: hotel booking, car rentals, attractions, cuisine, weather conditions, local tours, train passes, traveler’s checks, traveling insurance, custom policies, and so forth. In order to facilitate better pre-flight planning, some respondents suggested that they would like to get the flight capacity information on the travel websites. This can enable them to book a particular flight in advance and have better planning for their trips. Other information respondents like to see on a travel website include online entertainment guide and frequent flyer program information. They advised to host the entertainment programs online so that they can prepare themselves in advance for various inflight activities. For frequent travelers, they expect to get most of their frequent flyer program information online such as mileage balance, reward systems, mileage redemption transactions, etc.
R. Chu / Hospitality Management 20 (2001) 95–100
99
Interactive. Respondents are receptive to online booking. In particular, they suggested that an aircraft floor plan with the seat map be shown online. Just like buying movie tickets online where people click to select the seats from the floor plan of a cinema, travelers can do it the same way to select their own flight seat by just clicking the icon online. In addition to flight booking online, online meal reservation is also a good idea for travelers. This can save time and allows travelers to know exactly what they will be served prior to the journey. Though E-commerce is highly beneficial in reducing business costs, improving timeless and speed, and creating opportunities for new or improved services, security and user confidence are some areas of concern to most Internet users. To make online air booking and payment successful, respondents suggested that several aspects are to be abided: Authentication (to prove the identity of the parties in an electronic transaction), Confidentiality (to protect the content and information of a transaction from unauthorized third party), Integrity (to protect the content of a message that has not been tampered with), Non-repudiation (to agree the terms of transaction and prevent denial of commitment), and Legal Commitment (to protect an electronic transaction with legal backing). Attractive. For a website to be successful in drawing Internet users, the content of it should be attractive. Some Internet users suggested that special travel packages or discounted packages should be offered on airline/travel websites. Bonus mileage, souvenirs, gifts, coupons and cash rebates are some of the examples that can be incorporated in the content of the website to reward and encourage travelers for using online booking and payment. Other value-added features recommended by respondents include an online simultaneous currency converter. This would be helpful for passengers when figuring out the amount of currency that they need to exchange for their trips.
4. Conclusion As the global business climate is moving towards innovation and the development of advanced information technology to improve productivity and increase competitiveness, the globalization of information technology has led many enterprises to change their traditional ways of doing business. While information technology enables many to work faster and smarter, it also increases the expectations of both entrepreneurs and customers. This study has briefly identified the online behavior of passengers and their needs and expectations towards airline/travel websites. The findings have shown that passengers have had online shopping experience, but this has been confined only to products that are homogeneous in nature with low risk of involvement. More than just purchasing a ticket online, passengers have suggested valuable ideas that can make the website more comprehensive, appealing and attractive while providing one-stop services and information. From the passengers’ points of view, an airline/ travel website should be Informative – (travel/destination-related information, flight capacity information, frequent flyer program information and online entertainment
100
R. Chu / Hospitality Management 20 (2001) 95–100
guide), Interactive – (online booking, seat and food reservation) and Attractive – (special travel packages, bonus mileage, souvenirs, gifts, coupons, discounts and cash rebates). This study has raised issues for further investigation about online travel experiences. It provides a foundation and a stepping-stone for subsequent qualitative and quantitative research studies to further explore travelers’ needs and expectations about airline/travel websites. The researcher believes that understanding and including those elements passengers want to see and get from an airline/travel homepage will make them more likely to become loyal to the website.
References Hughes, D., DuMont, K., 1993. Using focus groups to facilitate culturally anchored research. American Journal of Community Psychology, 21(6). Internetnews.com, 1999a. Travel suppliers missing online market potential. http://www.internetnews.com/ ec-news/article/0,4_118241,00.html, May 14. Internetnews.com, 1999b. Survey predicts online rush for holiday travel planning. http://www. internetnews.com/ec-news/article/0,4_233811,00.html, November 8. Law, S.P., Leung, A., Hui, C., 2000. Ways leading to E-commerce. Economic Digest Publication Limited, April.
Ray Chu is a researcher. His research interests include customer satisfaction, customer relationship management, service quality and Internet marketing.