ISCONTOUR 2025 Tourism Research Perspectives E-Book

Christian Maurer

• Herausgeber: BoD - Books on Demand
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 328

Veröffentlichungsjahr: 2025

Beschreibung

The International Student Conference in Tourism Research (ISCONTOUR) offers students a unique platform to present their research and establish a mutual knowledge transfer forum for attendees from academia, industry, government and other organisations. The annual conference, which is jointly organized by the IMC University of Applied Sciences Krems and the Management Center Innsbruck, takes place alternatively at the locations Krems and Innsbruck. The conference research chairs are Prof. (FH) Mag. Christian Maurer (University of Applied Sciences Krems) and Prof. (FH) Mag. Hubert Siller (MCI The Entrepreneural School Innsbruck). The target audience include international bachelor, master and PhD students, graduates, lecturers and professors from the field of tourism and leisure management as well as businesses and anyone interested in cutting-edge research of the conference topic areas. The proceedings of the 12th International Student Conference in Tourism Research include a wide variety of research topics, ranging from consumer behaviour, tourist experience, information and communication technologies, marketing, destination management, and sustainable tourism management.

Leseprobe

Preface & Acknowledgements

The 12th International Student Conference in Tourism Research (ISCONTOUR) was successfully held at the campus of the IMC Krems University of Applied Sciences, Austria, from May 12-13, 2025.

The annual ISCONTOUR was collaboratively founded in 2013 by Christian Maurer, Professor at IMC University of Applied Sciences Krems, Austria, and Roman Egger, Professor at Salzburg University of Applied Sciences, Austria. In 2019 the MCI The Entrepreneurial School Innsbruck became the new cooperation partner of IMC University of Applied Sciences Krems.

The aim of ISCONTOUR is to provide international students and graduates of Bachelor, Master and PhD Programmes with a platform where they can present their tourism related research papers based on their approved Bachelor theses, Master theses or work-in-progress PhD theses. In particular, ISCONTOUR strives to encourage students and graduates to engage in academic research and foster the knowledge transfer between academic education institutions and practitioners from the tourism industry.

In total 22 full research papers by 30 authors from 6 countries were submitted to ISCONTOUR 2025. Each submission went through a blind review process with three members of the ISCONTOUR 2025 Research Programme Committee assigned as reviewers. The authors then received the comments of the reviewers and had to revise the papers accordingly. Only papers of authors who adhered to this process were accepted for the conference. As a result, 17 full research papers were accepted for presentation at the conference and are included in these proceedings; unfortunately, four authors withdrew their submissions on short-notice.

The research papers cover a wide variety of topics, ranging from consumer behaviour, tourist experience, marketing, information and communication technologies, destination management, and sustainable tourism management. This does not only indicate the variety of the tourism industry, but also how relevant and impactful applied research projects conducted by students and graduates can be for the further developments in tourism in particular and the society in general. We hope these proceedings will serve as a valuable source of information on applied tourism research for students, scholars and practitioners.

Above all, we want to thank all authors who submitted their papers for the conference. We further appreciate the considerable time invested by all members of the ISCONTOUR 2025 Research Programme Committee who ensured the high quality of the submissions. We are also grateful for the support we receive from the management board, rectorate and colleagues of both the IMC University of Applied Sciences Krems as well as the MCI Innsbruck.

We are also indebted to the conference keynote speakers Roman Egger (CEO of SmartVisions) and Anita Zehrer MCI The Entrepreneurial School Innsbruck) and to the research workshop presenters Anita Zehrer, Cornelia Dlabaja, Mattia Rainoldi, and Markus Eitle.

We hope that ISCONTOUR will continue to establish an international community that motivates more students and graduates to engage in applied research and submit papers to ISCONTOUR 2026

Christian Maurer & Hubert J. Siller

ISCONTOUR 2025 Conference Chairs

Krems, May 2025

Research Programme Review Committee

ADAMER-König Eva, Joanneum University of Applied Sciences Bad Gleichenberg, Austria

AUBKE Florian, University of Applied Sciences for Management & Communication Vienna, Austria

BAGGIO Rodolfo, Bocconi University Milan, Italy

BINDER Daniel, Joanneum University of Applied Sciences Bad Gleichenberg, Austria

BUHALIS Dimitrios, Bournemouth University, Great Britain

DEL CHIAPPA, Giacomo, University of Sassari, Italy

EBSTER Claus, University of Vienna, Austria

EITLE Markus, IMC University of Applied Sciences Krems, Austria

ENNEN Jens, IMC University of Applied Sciences Krems, Austria

FEDELI Giancarlo, IMC University of Applied Sciences Krems, Austria

GRETZEL Ulrike, University of Southern California, USA

GROTH Aleksander, MCI Innsbruck, Austria

HAGE Roger, IMC University of Applied Sciences Krems, Austria

HUANG Rong, Plymouth University, Great Britain

KASTNER Margit, Vienna University of Economics and Business, Austria

KENNELLY James, Skidmore College, USA

KRUGER Martinette, Tourism Research in Economic Environs and Society, South Africa

LASSNIG Markus, Salzburg Research, Austria

LIEBRICH Andreas, Lucerne University of Applied Sciences and

Arts, Switzerland

MAURER Christian, IMC University of Applied Sciences Krems, Austria

MATTEUCCI Xavier, Modul University Vienna, Austria

MCCOLE Dan, Michigan State University, USA

MURPHY Jamie, University of Eastern Finland, Finland

PESONEN Juho, University of Eastern Finland, Finland

PIKKEMAAT Birgit, Institute for Innovative Tourism, Austria

POSCH Arthur, IMC University of Applied Sciences Krems, Austria

PÜHRETMAIR Franz, Kompetenznetzwerk IT zur Förderung der Integration von Menschen mit Behinderungen, Austria

ROMERO ANIA Alberto, Rey Juan Carlos University, Spain SCHACHNER Max, IMC University of Applied Sciences, Austria

SCHOENBERG Alina, IMC University of Applied Sciences Krems, Austria

SIGALA Marianna, Sheffield Hallam University, Great Britain

STANGL Brigitte, University of Surrey, Great Britain

STECKENBAUER Georg Christian, Deggendorf Institute of Technology, Germany

TISCHLER Stephanie, IMC University of Applied Sciences Krems, Austria

VOLCHEK Katerina, Deggendorf Institute of Technology, Germany

WAIGUNY Martin, IMC University of Applied Sciences Krems, Austria

WEGERER Philipp, MCI Management Center Innsbruck, Austria ZEHRER Anita, MCI Management Center Innsbruck, Austria

Table of Contents

Examining the Digital Marketing Barriers for Sri Lankan Travel agents through the lens of RACE model

Samarasinghe H.M.U.S.R, University of Plymouth, United Kingdom

The Impact of the Covid-19 Pandemic on Travel Insurance Purchases and Factors Affecting Consumers’ Choice of Purchase Channels

Thuy Nguyen Thi Hong, Aisha Jagne, Halimat Shadia Abati, Kejdi Cela, Salzburg University of Applied Sciences, Austria

A Virtual Museum - The Case of Bringing Equestrian Heritage to the Digital Age In Lower Bavaria

Valizadeh, Taha, Trujillo Rodríguez Diana-L, Bashynskyi Roman, Hoang Vy, Ghabouli Shahroudi Bahareh, TH Deggendorf, Germany

Preserving Paradise: Framework to Develop Sustainable Tourism in San Vicente, Palawan, Philippines

Joseph Henessey Gorriceta, TH Deggendorf, Germany

Cultural Determinants for the User’s Acceptance of Digital Technologies for Biometric Recognition Applied by Border Control Authorities at Airports

Meriliis Sild, Sara Lestyan, Kristina Varšová, Salzburg University of Applied Sciences

The future’s generation in the present moment: How does social media affect Generation Z’s tourism experiences?

Zsuzsanna Csoh, IMC University of Applied Sciences Krems

HafenCity: Balancing tourism and livability

Jaqueline Reusch, Harz University of Applied Sciences

The Role of Innovation Policy in Shaping the Future of Sustainable Tourism Development: Insights from Austria

Dennis Kamau Muniu, Salzburg University of Applied Sciences

Segmentation of Ski Resort Visitors According to Ski Destination Choice Attributes with a Focus on Czech Families

Karolina Krupauerova, MCI | Management Center Innsbruck

Gamification in Airports: Transforming Passenger Waiting Time with Interactive Engagement Using a Design Thinking Approach

Nayana Madhusoodhanan Kaki, Amal Plathottathil Shibu, Zohre Aleboyeh, Deggendorf Institute of Technology

Exploring the application of Open Data in tourism with a focus on small and medium hotels in Salzburg

Magdalena Aigner, Irina Boyko, Annalena Haßdorf, Markus Huber, Salzburg University of Applied Sciences

Generational differences in experiences with service robots in restaurants and respective levels of technology acceptance.

Kevin Iradukunda & Jit Biswa, Salzburg University of Applied Sciences

Examining the Digital Marketing Barriers for Sri Lankan Travel agents through the lens of RACE model

Udanee Samarasinghe University of Plymouth, United [email protected]

Abstract

Sri Lanka's tourism industry has faced significant setbacks, but digital marketing offers a promising opportunity for SME resilience in the travel sector. This study addresses a research gap by applying the RACE model to identify digital marketing adoption barriers among SME travel agents in Sri Lanka. This research uniquely uses the RACE framework to identify digital marketing barriers faced by SME travel agents in Sri Lanka at each stage of the customer journey. Unlike previous studies that use technological adoption models, this customer-centric approach is unprecedented in existing literature, offering fresh insights and valuable guidance for enhancing digital marketing strategies in the travel industry. Through 25 in-depth interviews, thematic analysis revealed six barriers at the Reach stage, four at the Act stage, and one each at the Convert and Engage stages. This study provides crucial insights for policymakers and industry stakeholders to develop targeted support and training programs, enhancing digital marketing adoption and resilience among SMEs in Sri Lanka’s tourism sector.

Keywords: Digital Marketing adoption, SME, travel agents, barriers, RACE model

1. INTRODUCTION

The importance of digitalization is evident in its ability to enhance global visibility. According to the Sri Lanka Tourism Development Authority (SLTDA, 2023), online engagement through digital platforms has led to a 30% increase in international tourist inquiries. Additionally, digital marketing strengthens crisis management by allowing businesses to maintain communication with potential visitors during periods of uncertainty. A study by Huynh et al. (2025) highlights that effective digitalization efforts have increased tourist confidence by 25% in developing regions. Furthermore, integrating digital marketing strategies supports sustainable tourism by promoting eco-friendly travel options and reducing reliance on physical marketing materials, contributing to a more sustainable business model. By offering dependable, real-time communication, digitalization boosts crisis management, helps sustainable tourism, increases globally visibility, improves visitor experience, and empowers local companies (Huynh, Stangl, & Thi Tran, 2025).

The ability of digitization to increase global awareness makes it clear how important it is. The Sri Lanka Tourism Development Authority (SLTDA, 2023) reports that inquiries from foreign tourists have increased by 30% because of online engagement through digital media. Additionally, by enabling companies to stay in touch with prospective customers during uncertain times, digital marketing improves crisis management. According to research by Huynh et al. (2025), successful digitization initiatives have raised tourist confidence in developing nations by 25%. Additionally, by encouraging eco-friendly travel options and lowering dependency on physical marketing materials, including digital marketing methods promotes sustainable tourism and helps create a more sustainable company model.

Understanding the barriers to SME travel agents' adoption of digital marketing is crucial given the growing digitalization of consumer behavior and the revolutionary potential of digital technology in the travel industry (Sharma, Sharma, & Chaudhary, 2020). Travel agents can increase customer relationships, streamline operations, and reach a worldwide audience by utilizing digital marketing techniques including social media marketing, SEO, and content marketing. SMEs in the tourism sector around the world, including Sri Lanka, continue to adopt digital marketing at a low rate despite its many benefits. Limited capital, a lack of understanding reluctance to adapt, and poor infrastructure are some of the main barriers (Abou-Shouk, Lim, & Megicks, 2013; Jones, Borgman, & Ulusoy, 2015; Martins, Salazar, & Inversini, 2015).

The significance of digitization and the challenges associated with its adoption are both highlighted in studies conducted by the Sri Lanka Tourism Development Authority (SLTDA) (SLTDA, 2023). However, little research has been done on the current digital marketing strategies used by Sri Lankan SME travel firms, thus it is crucial to recognize and successfully handle these issues. Prior research has thoroughly examined the adoption of digital marketing, as well as its perceived advantages and barriers (Abou-Shouk et al., 2012; Chiappa, 2013). Research that has already been done has mostly focused on the wider effects of digital marketing strategies on technological adoption, organizational performance, and the shift from traditional marketing methods to digital platforms (Sharma, Sharma, & Chaudhary, 2020). Researchers have examined topics such how travel agents use the internet, the digital skills needed in the travel industry, and the general advantages of digitization. Understanding how digital marketing is applied at different points in the customer journey, from initial engagement to interactions after a purchase, is still lacking, but (Chiappa, 2013; Abou-Shouk et al., 2012).

The Diffusion of Innovation (DOI), the Unified Theory of Acceptance and Use of Technology (UTAUT), and the Technology Acceptance Model (TAM) are examples of traditional models of technology adoption that provide useful information on the acceptance of technology in general (Venkatesh et al., 2003; Williams et al., 2009). However, these models tend to overlook more general organizational and external factors like trust, perceived risk, and competitive pressures in favor of concentrating exclusively on individual perceptions of technology, stressing perceived usefulness and simplicity of use (Davis, 1989; Venkatesh et al., 2003). Furthermore, TAM and UTAUT are less appropriate for comprehending SME travel agents' adoption of digital marketing since they are primarily employed to analyze customer adoption rather than supply-side perspectives (Dwivedi et al., 2021).

The AIDA (Attention, Interest, Desire, Action) model and other marketing-specific frameworks, on the other hand, concentrate on customer engagement but do not offer a comprehensive view of the continuous nature of digital marketing. A more thorough and flexible framework for this research is provided by the RACE (Reach, Act, Convert, Engage) model, which emphasizes consumer interactions at each step of the marketing funnel (Chaffey et al., 2016). In contrast to conventional adoption models, RACE emphasizes digital interaction across the customer journey while integrating organizational dynamics and external influences. This study attempts to offer a detailed knowledge of how SME travel agents may optimize digital marketing tactics to improve customer engagement and get beyond adoption obstacles by using the RACE model.

This study advances both theoretical and practical knowledge regarding the use of digital marketing by small and medium-sized travel firms. By offering a customer-focused framework that combines supply-side viewpoints with digital interaction dynamics, it theoretically expands on the body of previous literature. The study is also compatible with other studies that look at digitization initiatives in developing nations and how they affect tourism management, like Huynh et al. (2025). Empirically, the study offers insightful information about Sri Lanka's SME tourist industry, a region that is going through major change.

The findings are essential for creating practical strategies that promote the use of digital marketing, assist the expansion and long-term viability of small and medium-sized travel agencies, and help in the overall recovery of Sri Lanka's travel sector. The following research question is the focus of this study, which is based on the information above: What are the barriers that Sri Lankan SME travel agents face when implementing to use digital marketing? By answering this question, the study hopes to pinpoint the elements that support or impede the adoption of digital marketing and offer strategies specific to Sri Lanka's SME Travel sector.

2. LITERATURE REVIEW

Traditional marketing strategies are becoming less effective as the tourism industry shifts to digital interactions (Sharma, Sharma, and Chaudhary, 2020). Businesses must adopt digital marketing to be competitive as more and more tourists use online platforms to research destinations, compare deals, and make reservations. Through convenience and customisation, digital marketing supports local companies, promotes sustainable tourism, and improves the visitor experience (Huynh, Stangl, & Thi Tran, 2025). As demonstrated by the Vietnamese Mekong Delta case, destination marketing companies in developing nations have effectively used digital tools to expand their reach, enhance service quality, and adjust to customer expectations. These examples provide important insights for comparable regions like Sri Lanka.

Despite the potential for expansion and resilience, digital marketing technologies like social media, SEO, and content marketing are still not widely used by small and medium-sized travel agencies, especially in developing nations (Buhalis, 2003; Chaffey & Ellis-Chadwick, 2019). By using inexpensive, focused promotional techniques, small-business travel brokers may be able to compete with larger companies. However, several interconnected issues, such as low levels of digital literacy, budgetary limitations, reluctance to adapt, and insufficient IT infrastructure, hinder their capacity to do so (Alford & Page, 2015; Mehrtens, Cragg, & Mills, 2001). Travel agents' capacity to successfully execute and oversee digital marketing is restricted by a substantial skills gap that has been made worse by a lack of digital literacy and training programs (Molinillo & Japutra, 2017). Numerous theoretical frameworks have been employed to comprehend and tackle these issues. Though fundamental to comprehending technology adoption, conventional models such as the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Technology Acceptance Model (TAM) have drawbacks when it comes to digital marketing for SMEs. These models ignore organizational dynamics, environmental constraints, and the comprehensive range of customer contact necessary for digital marketing, instead concentrating on individual evaluations of usability (Davis,1989; Venkatesh et al.,2003). Among these, Smith and Chaffey's (2008) RACE (Reach, Act, Convert, Engage) framework is especially well-suited for understanding digital marketing in the travel industry. It offers a methodical, customerfocused perspective that fits nicely with the ever-changing landscape of online consumer behavior. It enables a detailed examination of the ways in which travel agencies engage with clients, from raising awareness to building enduring connections, by encompassing every phase of the digital marketing funnel. Building on the findings of Huynh et al. (2025), this study acknowledges that both internal (organizational preparation, resources) and external (consumer engagement, infrastructure) factors must be taken into account for a thorough understanding of digital marketing adoption. This dual focus is made possible by the RACE model, which makes it particularly pertinent for SMEs in developing nations like Sri Lanka.

This study makes a significant contribution to our understanding of the barriers faced by small and medium-sized travel agents in Sri Lanka by utilizing the RACE model. This study offers a comprehensive viewpoint that considers both organizational barriers and consumer interaction tactics, in contrast to earlier research that mostly focuses on larger organizations or uses generic technology adoption models. It responds to the pressing demand for workable, context-sensitive solutions that enable digital transformation in tourism SMEs and fills a significant gap in the literature. To sum up, the RACE model provides a thorough, flexible framework that effectively conveys the complexities of digital marketing adoption in the travel industry. By developing a more comprehensive, customer-focused understanding of digital marketing, this study advances theory. It also advances practice by offering strategic insights that enable Sri Lankan SME travel agents to surmount obstacles, make effective use of digital tools, and strengthen their position in a competitive global market.

3. METHODOLOGY

Qualitative research was chosen because these questions focus on the "how" of digital marketing adoption. It is well known in the social sciences for revealing underlying mechanisms and processes (Denzin, 2007). This study conducted 25 in-depth interviews with Sri Lankan SME travel agencies to understand their experiences and viewpoints on digital marketing. Qualitative interviews provide deep insights into opportunities and problems unique to the context, enhancing the understanding of tourism research (Clarke and Braun, 2017).

4. RESULTS

This section provides an analysis of the barriers faced by small and medium-sized travel agents in Sri Lanka during the Reach, Act, Convert, and Engage stages of digital marketing adoption.

4.1 Reach Stage

In the Reach stage barriers identified are technological, Human Resources, Financial and Social Media barriers.

4.1.1 Technological Barriers

21 out of 25 interviewees identified barriers relating to technology as the main barrier to Sri Lankan SME travel agencies' digital marketing use, particularly during the “reach" stage, due to infrastructure constraints and rapid technology development.

Interviewee IN01 noted, “Big companies are focusing on different things. So most of the barriers were related to infrastructure development.” This interview quote highlights the emphasis difference, as larger companies typically allocate resources to more wide areas, resulting in insufficient online infrastructure that restricts the effectiveness of SMEs' digital marketing.

IN04 emphasized the challenge of staying updated with technological advancements, explaining, “The technology is changing, that is a barrier. Time to time technology is changing. It might be hard to sort of keep up with the latest trends and tools…I've seen a lot of people doing new trend, new tools, SEO tools, new digital marketing tools.” Similarly, IN06 expressed the difficulties posed by the dynamic nature of technology, stating, “One of the biggest barriers that we are facing when it comes to digital, it's changing every day.

A robust online infrastructure is crucial for targeted and effective digital marketing, as highlighted in literature on tourism and digital marketing from 2005 to 2023 (Nuseir and Aljumah, 2020; Xiang and Gretzel, 2010; Buhalis and Law, 2008). Countries like UAE benefit from robust digital ecosystems, enabling advanced digital marketing, while Sri Lankan SMEs face challenges due to inadequate infrastructure and limited access to advanced tools (Nuseir and Aljumah, 2020; SLTDA, 2021).

For Sri Lankan SMEs, keeping up with the quickly evolving digital trends is a major technological barrier since new platforms are often appearing, making it difficult to stay current. IN04 brought to light the challenge of incorporating dynamic platforms such as TikTok, which are crucial for digital relevance but challenging to successfully implement. This difficulty can be observed in existing research, which demonstrates that continuous adaptation is necessary due to the rapid development of digital marketing technologies (Leung et al., 2013; Huang et al., 2017). Similar to other Asian nations, Sri Lankan businesses have difficulty with the rapid pace of digital innovations and the efficacy of digital marketing (Hays, Page and Buhalis, 2013; Choe, Kim and Fesenmaier, 2017; Gunawardena, 2017).

4.1.2 Human Resource Barriers

Sri Lankan SME travel agents face challenges in adopting digital marketing due to human resource constraints, skill gaps, and inadequate third-party support. IN02 noted a significant resistance among employees, particularly those who are used to traditional methods, to adopting digital tools like AI, fearing it might replace jobs (Gretzel, 2018; Rusu, Balasuriya, and Bah, 2020).

The lack of inhouse talent in the travel industry is a significant barrier to creating high-quality, engaging content, which often requires skills such as graphic design and video editing (Xiang, Magnini and Fesenmaier, 2015) According to IN10, IN17 Sri Lanka faces a significant digital marketing knowledge gap, with many agents underutilizing user-generated content and visual storytelling in the travel industry. While some agents are proficient in advanced tools like Google Analytics and SEO, most rely on basic social media posting.

Lastly, third-party marketers' lack of understanding makes digital marketing even more difficult.IN22 noted that “I have had discussions with different digital marketing companies, but they don't have any clue about the online domain. They just do normal digital marketing campaigns. So those are not basically relevant to the online travel domain’’.This lack of specialized knowledge among third-party marketers underscores the need for tailored digital marketing expertise within the tourism domain (Carlisle, Ivanov, and Dijkmans, 2021).

4.1.3 Financial Barriers

Financial barriers rank as the third largest obstacle to Sri Lankan SMEs' adoption of digital marketing. These problems are made worse by the nation's foreign exchange crisis, as SMEs find it challenging to finance necessary software, technology, training, and advertising campaigns due to exchange rate volatility (Arora and Sarker, 2022). For example, IN02 emphasized the effects of the US dollar issue by saying, "We are currently paying between Rs. 200 and Rs. 325 per dollar. Who in Sri Lanka has these kinds of dollars? This circumstance is consistent with the results of the 2023 Digital Outlook Report, which highlighted how Sri Lanka's currency decline and financial instability prevent companies from launching large-scale digital advertising, like those on Google AdWords, YouTube. High costs of creating quality content, such as videos and advertisements, often hinder small businesses from maximizing their digital marketing efforts. They often look for stock footage and minimal-cost solutions, which may not be as effective in capturing audience attention (Tiago and Veríssimo ,2014). Financial constraints pose a significant challenge in measuring ROI, as employees often lack the necessary knowledge and tools to assess digital marketing performance. This lack of expertise results in underinvestment in platforms with high engagement potential, such as TikTok. SMEs often struggle with ROI measurement due to limited expertise and resources, affecting their ability to make informed budgeting decisions. The cost of maintaining a digital presence adds to the financial burden. In Sri Lanka's economic context, where capital access is constrained and borrowing costs are high, sustaining a digital strategy is particularly challenging.

4.1.4 Social Media barriers

Social media barriers represent a significant challenge for Sri Lankan SMEs in the tourism sector, as evidenced by interview responses. These challenges can be broadly categorized into emotional and psychological barriers, competitive imitation, targeting issues, and the reliability of social media leads.

One prominent barrier relates to competitive imitation, where the transparent nature of social media allows competitors to easily replicate new campaigns. Interviewee IN02 mentioned, “If you're dealing with Instagram and Facebook, especially in showcasing the products, the other competitors also get to know what we are doing…people like to copy what others are doing.” This competitive imitation dilutes the uniqueness of marketing strategies, impacting brand differentiation. Research by Bharadwaj et al. (2013) supports this observation, noting that while transparency can drive sector wide improvements, it also introduces instability, making it difficult to sustain a unique market position. Targeting difficulties also emerged as a crucial issue, with SMEs struggling to reach their desired audience effectively on social media. As IN04 explained, “Targeting is one of the barriers…we don’t see that we can target the correct clientele.” This issue is especially challenging on platforms like Facebook, where the quality and accuracy of leads have proven unreliable.

Emotional and psychological barriers further complicate digital communication efforts. IN14 pointed out, “The emotional barriers, individual beliefs, attitudes, and values have a strong influence on how they process information. We don’t get vocal inflections, tone of voice, or body language.” The absence of non-verbal cues can lead to misinterpretations which affect the effectiveness of social media messaging. Lastly, the reliability of social media leads is inconsistent across platforms, with Instagram often outperforming Facebook in generating quality leads. This disparity suggests a need for tailored strategies for each platform. Felix et al. (2017) support this view, noting that platform-specific approaches can be critical for achieving success in social media marketing.

4.2 Act Stage

IN14 : “So many big people... a lot of competition. So you have to spend like 60 or $70 per day to advertise." SEO is not free. People think it's free, right? But it's not free…….Our ad is not only showing for them the other one as well... wasting my time and our cost is also money."

IN12 :"It's difficult to win their trust within the social media without directly meeting them."

The competitive online marketplace in Sri Lanka requires constant innovation and strategic investment in digital marketing to build recognition and credibility. To maximize effect and optimize spending, more accurate and data-driven strategies are needed. Inefficient targeting and resource waste are issues, and misconceptions about SEO's costs emphasize the need for precise and data-driven marketing strategies to overcome these barriers.

4.3 Convert Stage

The study identifies the lack of dedicated digital marketing specialists as a significant barrier faced by SME travel agents in Sri Lanka during the convert stage of digital marketing adoption. Out of 25, only four agents (IN1, IN2, IN7, IN14) actively utilize digital marketing during the conversion stage, while the remaining agents do not employ digital marketing strategies. The barriers identified in the study highlight the need for more dedicated digital marketing specialists.

IN 14: “ you know there are no proper staff to conduct the marketing activities during the convert stage, some people think the activities are similar in reach and convert stage both”.

Digital marketing strategies in the conversion stage differ significantly from those in the reach stage, requiring specialized knowledge that many SME travel agents in Sri Lanka lack. While the reach stage focuses on broad audience engagement through social media and content marketing, the conversion stage demands expertise in personalized email marketing, retargeting ads, and conversion rate optimization.

4.4 Engage Stage

To identify the barriers faced by SME travel agents in Sri Lanka during engage stage of Digital Marketing Adoption one question raised which was “Can you identify any barriers or barriers you have encountered when implementation digital marketing initiatives es to enhance customer engagement? “. From responses to this question one barrier which is lack of responses was identified. Table 04 presents the theme of barriers in the engage stage of digital marketing adoption.

If customers are not responding to communications, there may be problems with how engagement activities are understood and implemented. The interview response highlights significant barriers in customer engagement, particularly the low response rate to the messages.

IN05: "Most of the times we don't get any response to the messages we sent; customers are not responsive much."

5. DISCUSSION

When SME travel agents in Sri Lanka use digital marketing, several significant obstacles appear at the Reach stage. SMEs seem to be most active at this stage of their digital marketing activities, which include building awareness and drawing in tourists. Two important insights are shown by the large range of barriers found at this point. First, SME travel agencies understand the strategic significance of the Reach phase they know that being visible digitally is essential to attracting clients and starting the marketing process. Second, the number and intensity of the obstacles indicate that SMEs are trying to create a digital presence but are having difficulty doing so successfully. Specific issues include low brand awareness, restricted funds, insufficient marketing tools, and a lack of digital abilities. The limitations highlight the Reach stage's basic function as well as the critical need for these enterprises to have access to reasonably priced digital technologies and help for capacitybuilding.

SMEs have increasingly subtle but no less substantial challenges when they progress into the Act stage, which entails promoting interactions like website visits, social media involvement, or content consumption. Even while they are less common, these obstacles such as fierce online competition, costly advertising expenses, and inadequate content strategies can reduce exposure and consumer interest. SMEs who have already succeeded in gaining some digital presence but find it difficult to keep up and differentiate themselves in a competitive online market are typically impacted by these issues.

Lack of technical and strategic skills is one kind of barrier that is revealed by the Convert stage, which focuses on converting online encounters into bookings or purchases. Many small-business travel agencies lack the skills necessary to create appealing landing pages, put in place efficient calls to action, or examine consumer behavior to maximize conversion. Even a good Reach or Act strategy might not result in tangible business consequences if this information is lacking. Last but not least, the Engage stage which aims to cultivate enduring relationships with clients and increase loyalty is frequently the one that gets overlooked. The absence of customer relationship management (CRM) systems, uneven post-purchase contact, and low response rates to client inquiries are the main problems here. These results imply that although Sri Lankan SMEs are beginning to embrace digital marketing, especially during the Reach phase, they need focused assistance at every point of the customer experience. These barriers can be overcome with the aid of organized training, easier access to digital infrastructure, and reasonably priced marketing tools.

The RACE framework offers a helpful road map for enhancing SME travel agents' adoption of digital marketing by highlighting specific barriers and solutions at each step.

6. IMPLICATIONS OF THE STUDY

It has been found that many barriers are seen in the reach stage because Sri Lankan SME travel agents primarily use digital marketing in this first phase, with only few SME travel agents are utilize digital marketing during other stages. SME travel agents may make sure that resources are distributed efficiently to support each step by comprehending and reacting to consumer behaviours at the entire four stages rather than focusing on only the first stage of the customer journey. A comprehensive strategy like RACE model would improve the possibility of generating conversions and maintaining long term client connections while also helps in the removal of the barriers faced at the reach stage.

The study also provides a more detailed understanding of how digital adoption barriers impact the customer journey, from initial engagement to post-purchase relationship management, contributing to the literature on digital transformation in tourism by incorporating the RACE model (Buhalis and Law, 2008; Gretzel, 2018).

REFERENCES

Abou-Shouk, M., Lim, W.M. and Megicks, P. (2012). Internet Adoption by Travel Agents: a Case of Egypt. International Journal of Tourism Research, 15(3), pp.298–312. doi: https://doi.org/10.1002/jtr.1876.

Alford, P. and Page, S.J. (2015). Marketing technology for adoption by small business. The Service Industries Journal, 35(11-12), pp.655–669. https://doi.org/10.1080/02642069.2015.1062884.

Arora, R.U. and Sarker, T. (2022). Financing for Sustainable Development Goals (SDGs) in the Era of COVID-19 and beyond. The European Journal of Development Research, 35(1), pp.1–19. doi: https://doi.org/10.1057/s41287-022-00571-9.

Asia Pacific Institute of Digital Marketing (2023). Digital Outlook Sri Lanka. [online] Available at: https://apidm.asia/resources/digital-outlooksrilanka/.

Bharadwaj, Anandhi and El Sawy, Omar A. and Pavlou, Paul A. and Venkatraman, N. Venkat, Digital Business Strategy: Toward a Next Generation of Insights (June 1, 2013). MIS Quarterly (2013), 37 (2), 471-482, Available at SSRN: https://ssrn.com/abstract=2742300.

Carlisle, S., Ivanov, S. and Dijkmans, C. (2021). The digital skills divide: evidence from the European tourism industry. Journal of Tourism Futures, [online] 9(2), pp.240–266. doi: https://doi.org/10.1108/jtf-07-2020-0114.

Central Bank of Sri Lanka (2019). Annual Report 2019 | Central Bank of Sri Lanka. [online] www.cbsl.gov.lk. Available at: https://www.cbsl.gov.lk/en/publications/economic-and-financialreports/annual-reports/annual-report-2019.

Central Bank of Sri Lanka (2022). Annual Report 2022 | Central Bank of Sri Lanka. [online] www.cbsl.gov.lk. Available at: https://www.cbsl.gov.lk/en/publications/economic-and-financialreports/annual-reports/annual-report-2022.

Chaffey, D. and Ellis-Chadwick, F. (2019). Digital Marketing. [online] www.pearson.com. Available at: https://www.pearson.com/engb/subject-catalog/p/digitalmarketing/P200000003911/9781292241623.

Chaffey, D. and Ellis-Chadwick, F. (2022). Digital Marketing. 8th ed. S.L.: Pearson Education Limited..

Chiappa, G.D. (2013). Internet versus travel agencies. Journal of Vacation Marketing, 19(1), pp.55–66. doi: https://doi.org/10.1177/1356766712466613.

Christou, E. (2016). Social Media in Travel, Tourism and Hospitality. doi: https://doi.org/10.4324/9781315609515.

Clarke, V. and Braun, V. (2017). Thematic analysis. The Journal of Positive Psychology, [online] 12(3), pp.297–298. doi:https://doi.org/10.1080/17439760.2016.1262613.

Denzin, N.K. and Lincoln, Y. (2007). Collecting and Interpreting Qualitative Materials. Third Edition. [online] ERIC. SAGE Publications. Available at: https://eric.ed.gov/?id=ED500410.

Dimitrios Buhalis. Buhalis, D., 2003,ETourism: Information Technology for Strategic Tourism Management,Pearson (Financial Times/Prentice Hall), London ISBN 0582357403.

Dimungu Hewage Nilusha Erangi and Inna Stecenko (2023). Digital Transformation In Sri Lanka: Evaluating Progress And Addressing Challenges. Green Blue and Digital Economy Journal, [online] 5(2), pp.1–11. doi: https://doi.org/10.30525/2661-5169/2024-2-1.

Durrani, Z., Zia, Asbah., Ali, T. Y. and Shahid, M. N. (2023). Impact of Digital Marketing on the Tourism Industry Business Profitability of UAE through the role of Effectiveness. IUBJournal of Social Sciences, 5(2), 117–131.

Felix, R., Rauschnabel, P.A. and Hinsch, C. (2017). Elements of Strategic Social Media marketing: a Holistic Framework. Journal of Business Research, [online] 70(1), pp.118–126. doi: https://doi.org/10.1016/j.jbusres.2016.05.001.

Gretzel, U. and Yoo, K.H. (2008). Use and Impact of Online Travel Reviews. Information and Communication Technologies in Tourism 2008, [online] pp.35–46. doi: https://doi.org/10.1007/978-3-211-77280-5_4.

Gunawardene, N. (2017). Digital Transformation In Sri Lanka: Opportunities And Challenges In Pursuit Of Liberal Policies. [online] Available at: https://www.rticommission.lk/web/images/pdf/DigitalTransformationinSriLankareport-FINAL-30Nov2017pdf..

Hays, S., Page, S.J. and Buhalis, D. (2013). Social media as a destination marketing tool: its use by national tourism organisations. Current Issues in Tourism, 16(3), pp.211–239.

Huang, C.D., Goo, J., Nam, K. and Yoo, C.W. (2017). Smart tourism technologies in travel planning: The role of exploration and exploitation. Information and Management, [online] 54(6), pp.757–770. doi: https://doi.org/10.1016/j.im.2016.11.010.

Huynh, D.V., Stangl, B. and Tran, D.T. (2023). Digitalization of information provided by destination marketing organizations in developing regions: the case of Vietnamese Mekong Delta. European Journal of Innovation Management. doi:https://doi.org/10.1108/ejim-06-2022-0334.

Iskender, A., Sirakaya-Turk, E., Cardenas, D. and Harrill, R. (2022). COVID or VOID: A systematic literature review of technology adoption and acceptance in hospitality and tourism since the breakout of COVID-19. Tourism and Hospitality Research, p.146735842211336. doi: ender..

Leung, D., Law, R., van Hoof, H. and Buhalis, D. (2013). Social Media in Tourism and Hospitality: a Literature Review. Journal of Travel and Tourism Marketing, [online] 30(1-2), pp.3–22. doi:https://doi.org/10.1080/10548408.2013.750919.

Martins, C., Salazar, A. and Inversini, A. (2015). The Internet Impact on Travel Purchases: Insights from Portugal. Tourism Analysis, 20(2), pp.251–258. doi: https://doi.org/10.3727/108354215x14265319207632.

Mehrtens, J., Cragg, P.B. and Mills, A.M. (2001). A model of Internet adoption by SMEs. Information and Management, 39(3), pp.165–176. doi: https://doi.org/10.1016/s0378-7206(01)00086-6.

M. Nuseir and A. Aljumah (2020). The Role of Digital Marketing in Business Performance with the Moderating Effect of Environment Factors among SMEs of UAE. [online] Available at: https://www.semanticscholar.org/paper/The-Role-of-Digital-Marketing-in-Business-with-the-Nuseir-Aljumah/eb5bd1b7527cb22d86f3e40aafc0b719b0def5ca..

Molinillo, S. and Japutra, A. (2017). Organizational adoption of digital information and technology: a theoretical review. The Bottom Line, 30(1), pp.33–46. doi: https://doi.org/10.1108/bl-01-2017-0002.

Rusu, L., Balasuriya, P.B.L. and Bah, O. (2020). Cultural Barriers in Digital Transformation in a Public Organization: A Case Study of a Sri-Lankan Organization. Information Systems, pp.640–656. doi: https://doi.org/10.1007/978-3-030-63396-7_43.

Sharma, A., Sharma, S. and Chaudhary, M. (2020). Are small travel agencies ready for digital marketing? Views of travel agency managers. Tourism Management, [online] 79(1), p.104078. doi: https://doi.org/10.1016/j.tourman.2020.104078 .

SLTDA. (2022). SLTDA | Sri Lanka Tourism Development Authority. [online] Available at: https://www.sltda.gov.lk/en/annual-report..

Smith, P. and Chaffey, D. (2008). eMarketing eXcellence. Routledge. doi: https://doi.org/10.4324/9780080878966.

Suhaib Aamir, Nuray Atsan and Mohammad Saud Khan (2023). Going digital with multisided platforms: Assessing the innovation adoption process from the perspectives of travel agents. doi: https://doi.org/10.1177/14673584231186535.

Tiago, M.T.P.M.B. and Veríssimo, J.M.C. (2014). Digital Marketing and Social media: Why bother? Business Horizons, [online] 57(6), pp.703–708. doi:https://doi.org/10.1016/j.bushor.2014.07.002.

Venkatesh, V., Morris, M.G., Davis, G.B. and Davis, F.D. (2003). User Acceptance of Information technology: toward a Unified View. MIS Quarterly, [online] 27(3), pp.425–478. doi: https://doi.org/10.2307/30036540.

Xiang, Z. and Gretzel, U. (2010). Role of Social Media in Online Travel Information Search. Tourism Management, 31(2), pp.179–188. doi: https://doi.org/10.1016/j.tourman.2009.02.016.

Xiang, Z., Magnini, V.P. and Fesenmaier, D.R. (2015). Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, pp.244–249. doi: https://doi.org/10.1016/j.jretconser.2014.08.005.

The Impact of the Covid-19 Pandemic on Travel Insurance Purchases and Factors Affecting Consumers’ Choice of Purchase Channels

Thuy Nguyen Thi Hong,[email protected]

Aisha Jagne, [email protected]

Halimat Shadia Abati, [email protected]

Kejdi Cela, [email protected]

Salzburg University of Applied Sciences, Austria

Abstract

Travel insurance is mentioned as a risk-reduction strategy for travellers, particularly during the pandemic. Therefore, this study aims to evaluate the performance of travel insurance under the effect of the Covid-19 pandemic and investigate the factors influencing purchase decisions. The study also examines participants’ preferences for different purchase channels, including traditional and digital channels. This study employed a quantitative approach, collecting primary data from 125 participants through an online survey. IBM SPSS Statistics version 29-2022 was selected for data analysis. The results indicate that (1) even though the Covid-19 pandemic had a significant impact on the purchase of travel insurance during and post-pandemic, its effect on the intention to purchase travel insurance is negligible. (2) Traditional channels, such as insurance providers with personal contact or official insurance companies’ websites, remain primary selections due to their authority, credibility, reliability, and human interaction. Conversely, convenience, flexibility, and speed are key motivations for respondents selecting digital channels. These findings highlight the necessity for travel insurance providers to enhance their distribution strategy and optimise their existing channels to align with travellers’ expectations.

Keywords: travel insurance; pandemic; COVID-19; distribution channels

1. INTRODUCTION

In recent years, the tourism industry has witnessed significant transformations, influenced by globalisation, technological advancements, and unforeseen global events, such as the COVID-19 pandemic. The pandemic has led to unprecedented increases in risks and uncertainty, posing significant challenges to society (Chen et al., 2023). As travellers are more aware of a variety of risks and uncertainties, such as medical emergencies or flight cancellations, travel insurance has become an essential risk reduction strategy (Leggat et al., 1999).

Demographic factors such as age, income, and education significantly impact in shaping insurance purchasing decisions (Lo et al., 2011). Simultaneously, the digital transformation has significantly shifted the travel industry as well as consumer behaviour, leading to increasing preference for online transactions over traditional channels (World Economic Forum, 2021; Longo, 2024). Nevertheless, there are limited studies exploring the pandemic’s influence on travel insurance purchase decisions as well as purchase methods.

This research aims to address the following research questions: