Do Strategic Behaviors Link Travel Agencies in Brazil?

Abstract

Information and communication technology improvements have challenged the organized and stable network of airlines, global distribution systems (GDS) and travel agencies. In Brazil, traditional travel agencies have faced significant challenges in maintaining their businesses because airlines have forced disintermediation by cutting commissions and reduced distribution costs by selling their product directly through airline websites. This study explores the existence of strategic groups in the Brazilian travel agency market to elucidate how they interact with GDS and other travel agencies to maintain and improve their market position. A latent class analysis model was applied to a sample of 4,288 travel agency points of sale located in Brazil. The study results identified groups with members that exhibited similar behaviors in their relationships with GDS and other travel agencies. The study findings do not support claims regarding the demise of the travel agency business model.

Keywords

• Travel agencies
• airline industry; global distribution systems; latent classes analysis; Brazil
• airline industry
• global distribution systems
• latent classes analysis
• Brazil