The Responses of Travel Agents in Kenya to Changes in the External Environment

Abstract

Organizations are open systems that are environmental dependent and environmental serving thus interact openly with the external environment. An organization gains sustainable competitive advantage whenever it establishes an alignment between its internal dynamics and the external environment. The study investigated the responses of travel agents in Kenya to changes in the external environment. The study’s objective was to establish the responses of travel agents’ in Kenya to changes in the external environment. The study adopted the cross sectional survey design. The population of the study comprised all 142 KATA registered local and international travel agents based in Kenya. However, only 87 travel agents responded to the questionnaire issued. Primary data was collected through structured questionnaires administered through online mail surveys. The data was analyzed through descriptive data analysis. Comparison of data was done between all firms’ responses, local versus international firms’ responses and the firms responses by their duration of operation. The findings indicated that travel agents do respond in their preferred ways to environmental changes and every response is triggered by and is as a result of the impact of the environmental changes to the business operations. The responses tend to be adopted differently among the firms when comparisons were done among all firms, local versus International firms and by their duration of operation. Among the most adopted responses include, operational excellence, adoption of digital marketing, adoption of sustainable tourism, risk diversification focusing more on local tourism, adoption of opportunity driven strategies as a process of seeking new business opportunities, shift focus strategy response, employee empowerment and formation of strategic alliances with other stakeholders. Other responses adopted include, establishment of risk assessment departments and product development. Among the lowest adopted responses include; company restructuring through downsizing, tapping into information technology by adopting Travel Virtual Reality and company restructuring through divesture. The study concluded that majority of the travel agents do respond in their own ways to the environmental changes. The responses are as a result of the impacts of environmental changes to the business. The study recommends that the practitioners that is; travel agents and other organizations, should perform external environment scanning often as well as the SWOT analysis in order to understand the position and status of the tourism industry and other industries to ensure preparedness. Scholars’ and researchers should take advantage and do further research on the growth of technology in the tourism industry. Finally, the study recommends involvement of policy makers such as the government and the Tourism Regulation Authority in the intervention of tourism industry policies and regulations as they should create a favorable environment for tour business activities and operations.