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Brick And Mortar

Brick and Mortar

Learning Team B:

University of Phoenix Online

EBUS 400 – E Business

Mr. Frank Futyma

May 23, 2005

Introduction

Brick and mortar is defined as a "traditional, street-side business that deals with its customers face-to-face in an office or store that the business owns or rents. Web-based businesses usually have lower costs and greater flexibility than brick-and-mortar operations" (Investopedia.com, 2005). A large majority of the travel industry has evolved through technological advancements, thus shifting their services from brick and mortar to providing online service. Web-based companies like Travelocity, Expedia, and Priceline are becoming important avenues for travel shoppers and have become a form of nemeses to traditional travel agents. However, analysts say that the traditional brick and mortar operations will always exist in the travel industry. "Leaders among online agencies, like Travelocity, acknowledge that multichannel competition has always characterized the airline industry and that offline agents have a place, filling the oft-expressed customer need for flesh-and-blood travel services" (Vigoroso, 2001).
Brick and Mortar Travel Industry Supply Chain
The retail travel industry is transitioning to the Internet in order to stay competitive. "The traditional travel business…evolved with an integrated group of players—airlines, Computer Reservations Systems (CRS), travel agents and credit card companies—whose successes were interdependent." (Harrell Associates, 2002) All parties involved received compensation when a ticket was sold. The CRS and travel agents received a commission, the credit card companies received "a percentage or discount fee of the face value of any transaction paid for with their card," and the airlines generated revenue when the ticket was sold. (Harrell Associates, 2002)
The...

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