Examining the benefits and barriers of e-business adoption among travel agencies in tourism industry

Mohd Fauzi, Farah Nurain (2019) Examining the benefits and barriers of e-business adoption among travel agencies in tourism industry. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

Information and Communication Technology (ICT) has become an essential tool for the tourism industry. ICT played a significant role in shifting the Malaysian tourism sector into an intensive industry. Factors affecting the usage of E-business in the tourism industry have been well-documented in developed countries, but further studies are needed to investigate the usage of E-business in the tourism industry among developing countries. This study aims to identify the level of E-business usage as well as the benefits and barriersof E-business adoption among local tourism agencies operating in the Historical City of Melaka. The E-Business Measurement Evolution Model and the quantitative approached was applied for this study. Questionnaires were distributed to the respondents in the form of an online and self-administered questionnaire. Statistical Package for Social Science (SPSS) version 25.0 was used to analyse the data. The research findings revealed that tourism agencies in Malacca were still in the early stages of E-business usage, with only (54%) of the travel agencies are online. The factor of saving time (M = 4.3492) was the key benefit in E-business usage while the factor of hackers intervention (M = 3.8730) was revealed to be the most deterring factor that causes the tourism agencies reluctance to adopt E-business practice. This study shows that government aims of E-business tourism have not been fully realised. The respondents still perceive the factors of internet fraud and security are a significant issue for E-business usage. Therefore, future research is recommended to provide more insights into the application of E-business tourism in tandem with the government aim of the cashless Malaysian tourism industry.

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