An Investigation of the Impact of Sky Scanner on the Travel Choice of Chinese Customers
Introduction:
There is an increasing demand, among consumers for competitive, and easy to access travel solutions. More specifically, online applications offer comparison of travel options, and low rates to travelers, in a do-it-yourself travel economy that has moved away from using formal travel agencies, and instead moved toward self-sufficiency supported through web sites that over agent-like services. One such service, is Sky Scanner, however, the embattled company has suffered from a large amount of negative publicity, and has struggled to adequately serve the target market. The following study, therefore, seeks to consider the impact, or potential impact, of Sky Scanner on the travel choices of Chinese customers, in order to determine the effectiveness of the platform, and its potential to change the local travel industry within the Chinese market.
Research Rationale:
The primary reason for completing the current research, is to provide a meaningful understanding of the way that consumers are using Sky Scanner and similar technology, and the impact that these services are likely to have on the travel choices of specified consumers within a given local environment, in this case specifically, within the Chinese market. This can both help Sky Scanner understand the efficiency of their current program, how to improve it, and help the industry, as a whole, measure the impact of online travel sites on the market.
This is significant information for the brand, because the decision makers need to be increasingly aware of how they are viewed by their target market, as a driver for the brand’s overall success. Further, they need to understand how they fit within the larger market, in order to more adequately provide services that meet the consumer’s expectations. Additionally, it is useful for other players in the market to understand the way that online businesses, like Sky Scanner are impacting their business, and the direction in which they must drive their current business model in order to remain competitive.
Aims and Objectives
The primary topic of the current research is directly related to marketing, and to international business, as it relates to the impact of a new niche in the larger existing market, as well as the more detailed Chinese industry specific, and travel industry specific implications of the study. Through the execution of the proposed research, the researcher, and the decision makers at Sky Scanner will both gain a more thorough understanding of the fundamental issues present in the travel industry, as it relates to consumer demands for online product availability, and online booking activities. This will allow the researcher, and the Sky Scanner brand to generate specific strategies for meeting consumer expectations and maximizing consumer buying behaviors, through the online sales platform.
Bearing this in mind the aims and objectives of the proposed research include, the following:
Identify the primary features of Sky Scanner, and the functions it performs as it relates to consumers
Determine the degree to which consumers are using the Sky Scanner platform, and it what ways they are using it
Measure the impact of Sky Scanner on the larger market
Determining the effects of Sky Scanner on consumer purchasing decisions and travel planning.
Identifying how Sky Scanner directly impacts the travel choices of Chinese customers.
Literature Review:
Impact of Internet Travel Sites of Travel Industry
There is already a strong body of evidence that indicates that the internet has changed customer purchasing patterns and behaviors. More specifically, as early as 2001, a telephone survey by Pew Research found that two thirds of respondents reported using the internet to garner travel information (National Commission to Ensure Consumer Information, 2003). Since then, the impact of the internet has only grown.
More specifically, in a study by Standing, Tang-Taye, & Boyer, the specific impact of internet on travel and tourism behaviors was reviewed and measured, in pursuit of evidence related to changing trends, from 2001 to 2010 (2014). The study determined that the internet has impacted on out consumers, but also tourism brand, or companies within the travel industry. The study specifically found that consumers most often seek information via online sources, and use websites to analyze their travel options. However, the third most significant factor was actually internet marketing of travel products, which direct consumer purchasing decisions. Overall, the study finds that travel agencies, or businesses need to actively pursue and e-business approach in the current market. Further the article calls for a need for greater case studies to understand why e-marketing, in various forms, thrives or fails within the travel niche. As such, there is a direct call to action from Standing, Tang-Taye, & Boyer for the execution of the current study on Sky Scanner and its impact within the Chinese travel market (2014).
The Chinese Travel Industry
Research indicates that the travel industry in China is undergoing a serious of rapid growth (Luk 2012). More specifically, the World Tourism and Trade Council estimates that in 2011 China officially surpassed Japan to become the world’s second largest travel and tourism market, with an expected total travel expense level of $615 billion by 2020 (Luk, 2012). As such, it is a critical time for researchers to determine what the expectations and purchasing behaviors of that market niche is.
Researchers have already attempted to measure tourist behavior, within the Chinese population, as it relates to their internet activity. More specifically, Yang, Pan, Evans, & Luv attempted to forecast the volume of inbound Chinese tourists through search engine data (2015). The study indicated that by using quarries entered into search engines from hundreds of millions of tourist could indicate the trends in travel preferences, product, and travel behaviors. The model developed did significantly increase the accessibility of forecasting accuracy, and demonstrated just how many travelers go online seeking information for travel. The fact that overall trends can be predicted from internet data alone is decisive in demonstrating consumer behavior as it relates to dependence on the internet in making travel decisions (Yang, Pan, Evans, & Luv, 2015).
Sky Scanner Background
Sky Scanner is a global metasearch engine, that allows users to find and compare information on the internet, regarding flight, hotels, and rental car options. The user can then complete the booking action on their own, at no charge through the site, or contact an affiliated travel agent to complete the booking process for them. It was designed by three avid travelers who were frustrated by their inability to book their own, inexpensive travel accommodations in hassle-free way (Trapp, 2006). The brand offers services in more than 30 language, and has a full internet web page, as well as a mobile app, to encourage international use (O’Hear, 2012). It specifically opened a Beijing office in 2012, as a result of the partnership formed with Baidu, China’s largest travel search engine (BBC, 2011). Further, in 2014, it acquired the Chinese travel search company Youbibi, based in Shenzen, making it a major player in the Chinese travel market (BBC, 2014).
Unfortunately, the brand was significantly damaged by a suit brought by British regulator, the Office of Fair trading, which placed a limit on the discounting restrictions that the brand could offer on OTAs and hotels (Eye for Travel, 2014). However as of October 2014, Sky Scannerhad won two out of three grounds in the appeal, and were moving forward. Unfortunately, this decision in t heir favor could not undo the damage that the case did to their brand.
Proposed Methodology:
The proposed study will conduct primary and secondary research through a mixed method approach. This will include both the collection of primary, qualitative data collected via survey, and secondary, quantitative data, collected via the company’s released financial statements and other industry related statistical information. While it is useful to collect, certain qualitative information regarding fiscal impact, it is, perhaps more pertinent in many ways to establish patterns of behavior, and to gain descriptive information related to how consumers behave and how the creation of Sky Scanner has altered their behaviors.
Explanation of Research Technique:
More specifically, secondary data will be used to create a quantitative measure of how Sky Scanner has directly impacted the travel market. This is to say, that information can be collected via published statistics and business records, which can be used to measure the relationship between Sky Scanner’s sales and the larger travel industry in the area, or the Chinese travel market.
Then, primary data will be collected, via questioner, in order to collect qualitative information, through open ended questions, and qualitative data, through the application of the Likert scale, to collect information directly from consumers, in order to determine how customers’ view and use Sky Scanner. A questioner is valuable, in this case, because it will allow the research to collect a lot of descriptive, and measurable information quickly. Further, it will fundamentally increase the data available on the impact of online travel sites on consumers, as it relates to travel behaviors within the target market.
Data Collection Process:
The data collection process is a seven-step process including: subject identification, data required, suitable collection method identification, conduction of exploratory research, reviewing the findings, refining the search after review, and collection of data. Each of these points will be specifically discussed below:
Identify the subject area: As was previously identified the primary topic of the research is Sky Scanner. This is with special interest in how consumers view the brand, and in pursuit of measuring and describing the way in which the use of Sky Scanner has effected trends in Chinese travel, and how consumers view the service.
Finding Validity, Reliability and Generalizability
Validity can be a challenge when working with qualitative data because it is less verifiable than quantitative. This is to say, if you pole 20 people, using open ended question, and then a second set of 20 individuals they will likely not come out with statistically similar information. However, it is not considered inferior as a form of research. The limitation of the research, however, is that, because the surveys are collected and completed on a volunteer basis, there is no way to ensure that the sample is representative of the population or unbiased in its answer.
Timetable
The proposed research will be carried out between January and May of 2017. More specifically, in January the proposed research will be outlined, the means of data collection determined, and the aims and objectives established. With this proposal approved, the researcher can then perform a more in-depth review of the literature and completion of secondary research and data collection in February. This will also provide a framework for the development of the questionnaire to be used in gathering primary research data. This will be distributed no later than the first week of March, with the final surveys collected from participants during the last week of March. Data will be coded and logged by the second week of April, so that the researcher can begin analysis. Finally, the first rough draft of the completed analysis and findings will be presented no later than the third week of April, with the intent to complete all work, and submit the final draft of the research by the second week of May.
Budgetary Issues and Source of Funding
Seeking financial support can lead to a conflict of interest, and so to preserve the validity of the research, corporate funding will not be sought. However, the researcher will pursue a small grant in order to fund the basic physical demands, and supplies for the current research. There is not be any other outside source of funding. However, the research design itself is a low/no cost approach, so there also is not overhead that demands a high level fiduciary investment.
Conclusion
Overall, the current research is focused on filling a gap in the current research by understanding not simply how much individuals are using Sky Scanner, but more significantly, how and why they are using it. This information can then be used to draw conclusion about what traditional businesses need to do to maintain profitability. It will draw conclusions about the impact that Sky Scanner has had on Chinese travel behaviors, and demonstrate how the brand comes to meet the expectations of the consumer base, indicated. In pursuit of these aims, a combination of primary and secondary data will be collected, in order to address both qualitative and qualitative data as it relates to the topic at hand. Overall, this will provide information which can be used by Sky Scanner in order to direct their management strategy and marketing approach to maximize profitability, or increase consumer buying behaviors within the changing niche.
References:
BBC. (2014). Skyscanner buys Chinese metasearch firm Youbibi. BBC News. Retrieved from http://www.bbc.com/news/uk-scotland-scotland-business-28014913 [Accessed 18 January, 2017].
Eye for Travel (2014). Skyscanner win: too little too late? Retrieved from http://www.eyefortravel.com/social-media-and-marketing/skyscanner-win-too-little-too-late[Accessed 18 January, 2017].
Luk, J. (2012). China’s Travel and Tourism Market Takes Off. China Business Review. Retrieved from https://www.chinabusinessreview.com/chinas-travel-and-tourism-market-takes-off/ [Accessed 18 January, 2017].
National Commission to Ensure Consumer Information and Choice in the Airline Industry (2003). “Effects of Changes in the Travel Agent Industry on Consumers” Final Report of the Commission Retrieved from http://govinfo.library.unt.edu/ncecic/reports/ch3.pdf [Accessed 18 January, 2017].
Standing, C., Tang-Taye, J.-P. & Boyer, M., (2014). The Impact of the Internet in Travel and Tourism: A Research Review 2001–2010. Journal of Travel & Tourism Marketing, 31(1), pp.82–113.
Yang, X. et al., (2015). Forecasting Chinese tourist volume with search engine data. Tourism Management, 46, pp.386–397.
