The positioning of small- and medium-sized retail travel agencies in Hong Kong

Abstract

Travel agencies are significantly affected by the changing economic, technical, and social environments. Are small- and medium-sized travel agencies in Hong Kong able to adopt and benefit from strategies suggested by Buhalis (1998) and Tse (2003)? 11 in-depth interviews with owners/managers of small and medium enterprises (SMEs) were conducted. Results revealed that micro-sized agencies mainly contribute to primary activities by adding value to sales, marketing, and servicing activities. The limited resources of such agencies restrict them from fully benefiting by adopting either a cost leadership or differentiation strategy under Porter's (1985) generic strategy framework.