DIGITAL TECHNOLOGY PRACTICES, CHALLENGES AND FINANCIAL IMPLICATIONS: EVIDENCE FROM TRAVEL AGENCIES IN ADDIS ABABA

Abstract

This study assesses the digital technology practices, challenges and their financial implications in the case of traditional travel agencies in Addis Ababa The study utilized a mixed research approach combining both descriptive methods and case studies. A total of 140 respondents out of a population of 144 participated in the study. Survey data were analysed using SPSS version 25, employing descriptive statistics (frequency, percentage, and mean) and qualitative data analysed using thematic analysis. Case studies of MEET, Yama Ethiopia Tours, and Ebyet Tour and Travel provide insights into how these agencies are leveraging technology to enhance operational efficiency, improve market competitiveness, and differentiate themselves through personalized services and sustainability. The case studies demonstrate how traditional travel agencies are adapting to the digital disruption posed by Online Travel Agencies (OTAs) and evolving consumer preferences. Through the use of technology, these agencies have enhanced operational efficiency, maintained market relevance, and differentiated themselves by focusing on personalized services and sustainability. The financial implications of digital transformation are significant, but these agencies are strategically leveraging digital tools and offering unique experiences to stay competitive. Findings highlight the need for further alignment with market demands and increased technological integration, particularly in data analytics. The study concludes that agencies that can balance traditional service quality with modern digital tools are likely to thrive. Recommendations include continued investment in technology, enhanced customer engagement strategies, and further adoption of sustainable practices.