THE EFFECTIVENESS OF INFORMATION COMMUNICATION TECHNOLOGY ON THE PERFORMANCE OF TRAVEL AGENCY BUSINESS, CURRENT PRACTICE IN ADDIS ABEBA

Abstract

This paper seeks to understand the effectiveness of ICT on the performance of travel agency business using a cross-sectional data collected from 218 respondents. Specifically, the research examines the opportunity that ICT offer for the travel industry, assess challenges of the travel agencies because of the ICT evolution and examine to what extent ICT determine the travel agencies business effectiveness. In order to answer the stated objective a causal and descriptive research design were employed. The findings of the study revealed that ICT has strong positive potential for the performance of firms. The analysis confirmed that the new and existing ICT interventions increase the success of those travel agency enterprises. The opportunity created by ICT and possible strategies influence significantly success of travel agency businesses. The analysis further shows that the integration of personal approach with ICT is significant, with new technologies having complementary and not substitutive function. Benefits of new technologies enable development of travel agencies and make communication with customers and other entities easier, which is the foundation for building competitiveness. The study further revealed that the opportunity created by information communication technology increases the business effectiveness of travel agencies. However, the travel agencies are challenges by the current service of unstable internet connection. And it is recommended that for tourism businesses to increase their competitive position they should incorporate ICT in their business practice so as to increase their performance and their effectiveness.