THESIS/CAPSTONE TITLE PROPOSAL FORMAT

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RESEARCH TOPIC/TITLE: “CHALLENGES, OPPORTUNITIES AND STRATEGIES
TOWARDS THE GROWTH OF MOBILE TRAVEL APPLICATIONS:
PERSPECTIVES FROM TRAVEL AGENCIES”

A. Description of the Project

1. Rationale:

The travel industry is shrinking because one of the primary ways travel companies
interact with customers is getting smaller and smaller, more and more agile, in an effort
to reach new customers and markets and maintain diversification and growth in 2016
and beyond such as mobile applications and how travel companies are leveraging the
devices in customer’s pocket right now to enhance their efficiency and agility in an
increasing competitive global marketplace (Ostdick, 2016). There are travel online site
and applications listed in this study. Traveloka and Skyscanner are global travel search
site and apps providing free comparisons for flights, hotel and car rental. Enables its
users with the ability to receive the price list by entering information such as
destinations, dates, and number of personnel. However, while there are major
opportunities in the mobile travel market, there are also so many developmental
challenges specific to the travel industry in particular. For one, how do you test the
mobile travel experience on-the-go? Companies that rely on in-house, automated or
off-shore testing don’t have the geographic coverage their users will be interacting with
the application in. Not to mention, automated testing cannot cover the specific use
cases that a travel application will be operating under. This makes crowd sourced
testing with professional testers in different locations across the globe a necessary part
of the QA process for travel app developers (Brown, 2013)

Among the cyclical succession of symbolic terms that have become part of global
tourism discourse, ‘innovation’ and ‘technological change’ have started to occupy a
privileged place and it is highly likely that they are here to stay. The advances in
connectivity and processing power that have been made in ICT in recent years are
undeniable. It is also true that the expansion of broadband is one of the greatest
challenges of the 21st century which, once it has been overcome, will bring an end to
the ‘plague of distance’ which exists in many parts of the world (Blanco, 2011).

In the global setting, today’s tourism activity is increasingly being shaped by price
comparison and combination technology; new applications for mobiles that offer a wide
range of opportunities are being developed; social networks are consolidating
themselves within a more transparent market in which citizens are able to provide
services together; changes in the concept of the value chain are producing new
business models. In short, change is becoming more obvious and constant, just like the
opportunities that it is creating (Sakulsureeyadej, 2015). However, the biggest
challenge imposed upon the tourism industry, specifically travel agencies, in adopting
technology is the lack of accurate education of the ‘right’ technology that is suitable for
their business. There is a very big gap between the tourism industry and the technology
industry (Smith, 2014). Some organizations have been able to tap into this gap and
have turned into Online Travel Agents (OTA). However, it is not every tourism business
needs to become an OTA to successfully utilize technology. It is more important to
understand each business’s competitive edge and adopt the related technology in order
to strengthen their competencies. Even though the growth of travelers using technology
to source information is increasing at a rapid pace, the business operators and
workforce within the industry do not have sufficient knowledge, tools, and/or strategy to
utilize technology correctly (Tolley & Turton, 2015).

In the Philippines, the under-utilization of modern technology among travel

agencies in the country are being explained by George (2015) such as that storing of
contracts of different hotels and Resorts seems a tedious task for Tour & Travel
Companies. Most travel companies use excel sheets for storing the details of the
contracted properties. Delay in getting contracts and updating the contracts in the right
time negatively affects the Tour & Travel Companies. Other than the periodic contracts,
many a times, the travel companies are not included to get the promotions, updates of
best available rates and offers launched by the hotels. Currency conversion is another
challenge of the Tour & Travel Companies. The fluctuation in the foreign currency
creates more harm to the Tour & Travel Companies who are doing outbound and
Inbound travel business.

The above articles had urged the researchers to conduct study regarding the
utilization of modern technology on selected travel agencies in Davao City. The
researchers believed that this topic is of relevant issue considering the tourism
consumers are particular in the utilization of modern technologies such as online
bookings, apps, etc.

2. Objectives of the Study

The main objective of the study will be to explore the modernized technology on
selected travel agencies in Davao City.

Specifically, it will seek answers to the following questions:

1. What are the challenges posed by modernized technology on selected travel

agencies in Davao City?
a.) How do travel agents overcome in decreasing customer’s loyalty?
b.) How does currency depreciation affect travel companies who are doing
outbound and inbound travel business?
2. What are the opportunities brought by modernized technology on selected travel
agencies in Davao City?
a.) How long have you been in travel business?
b.) Why did you decide to establish travel agency as your business?
3. What are the strategies in utilizing modernized technology on selected travel
agencies in Davao City?
a.) How do travel agents maintain their brands to compete travel online website
and application?

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Theoretical Framework

This study is anchored on the proposition of Smith (2015) that technology plays
an important role in the hospitality and tourism industry. Both customers and
businesses can benefit from advances in communication, reservations and guest
services systems. Technology allows continuous communication and streamlines the
guest experience, from reservation to checkout. The Internet has a powerful impact on
hospitality and tourism. For many businesses and locations, the experience starts long
before a traveler arrives--it begins with the first visit to the website, when a person sees
photos of the location and gets a sense of what to expect. In the hospitality and tourism
business, effective use of Internet technologies can improve revenue. Websites, apps,
blogs, online advertising, social media, online ordering and information repositories all
help convince customers to choose a location or business.

3. Methodology

The researchers of this study will employ the qualitative research design. The
study will be conducted on selected travel agencies in Davao City. Respondents
of the study will be selected travel agencies operators. The research instrument
that will be used in the conduct of the study will be an interview guide (open-
ended) survey questionnaire.

B. Research Project Duration: 6 months

Prepared by:

Caballero, Tracy Monique A.

Baybay, Stephanie Mae M.
Bangian, Jacquelyn B.

Endorsed by:

AMOR JANGAO GYPSY MAE B. CASURAO, MBA

Dept. Research Coordinator Dean of College in Hospitality Education

References:

Blanco, D. (2011). Understanding and managing innovation and technological change:

a major opportunity for tourism organizations World Tourism Organization
(UNWTO) Affiliate Members AM -reports – Technology in Tourism (Vol. 1,
2011).

Brown, M. (2013). Opportunity and challenges of the mobile travel market. Retrieved on
November 28, 2017 from www.developer-tech.com.

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Sakulsureeyadej, A. (2015). How technology is changing global tourism, CEO and
Founder, Tourism Technology Association World Tourism Organization
(UNWTO) Affiliate Members AM-reports – Technology in Tourism (Vol. 1)

Smith, E. Technology Used in Hospitality & Tourism. Technology Used in Hospitality &
Tourism | Chron.com. Retrieved from https://www.smallbusiness.chron.com ›
Setting Up a New Business › Starting a Business

Tolley, R. & Turton, B (2015). Transport Systems, Policy and Planning, Longman,2015.

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