Abstract:
Whether customers should place their orders be attended face to face or through online systems is a topic
that has attracted scholarly and policy attentions all over the world. The purpose is to answer what and how
electronic equipment’s may be used to simplify selling and marketing businesses. To the tourism sector, as
it is mostly based in Arusha the issue of online bookings among local travel agents is a necessary move for
thriving and growth. This is because most of the customers in this sector are from Europe and America whose
culture is already electronic use for most activities. Convectional literature on the aspect of online bookings
is more based in developed economies than in developing countries. However, contexts such as tourism
practice in Tanzania especially in Arusha city are not well fitted into the existing tourism literature. Therefore,
the literature lacks empirical evidences on challenges that local travel agents face in their attempts to practice
online bookings. That is to say challenges arising from firms’ infrastructural ownership, knowledge and skills
among local travel agents and the accessibility of internet to support online bookings are not well addressed.
This study assed the challenges facing local travel agents in Arusha City in order to complement the literature.
This study is both quantitative and qualitative based. Within the survey of 50 local travel agents in Arusha,
two specific companies were interviewed with respect to the research questions to triangulate the results.
Questionnaire was used and unstructured interview was conducted targeting only two representatives from
the 50 tour and travel agents. Analysis was made using descriptive statistics and multiple linear regression
model through SPSS software. Qualitative interviews were written based on the responses in the pre
determined themes of discussion.
Findings reveal that not all the companies face the same challenges since some of them had no challenge
at all. However, the airline sector had challenges related to internet access while the transport agents mostly
faced challenges related to computer availability and office locations. It is also noted that almost all the
companies complained on the lack of employees with knowledge and skills to handle online bookings. For
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example, language barrier was observed to be a big problem as some tourists were demanding services
from multilingual employees. Government policy with respect to the internet access and use of VPN was also
found as a major challenge to almost all the companies. This study recommends that at the firm level, firms
should invest more on staff training to get the lacking skills among employees. At the government level, policy
on internet access should reflect the needs of the local travel agents such as allowing use of VPN and other
features to ensure constant internet access.