Designing for reintermediation in the brick-and-mortar world: Towards the travel agency of the future

The Internet and electronic marketplaces have profoundly transformed the travel services industry and challenged the traditional value proposition of travel agencies: What is the reason for their existence if information is abundantly available and transactions can be flexibly conducted in direct buyer-seller interactions on the Internet? Traditional travel agencies are struggling to develop new value propositions which differentiate them against the Internet competition, largely based on expanding their reach through online subsidiaries. We present a reintermediation approach based on a novel way of IT-enabled travel advisory which integrates the advantages of interactive technologies and Internet channels with the advantages of direct customer interaction in the physical agency setting. In particular, we propose a reintermediation framework based on the integration of kernel theories from information seeking behavior, interactive value creation, relationship marketing and the design of hedonic information systems. We argue that physically collocated travel advisory services can create a significant added value, if they succeed in uncovering customers’ hidden needs, heightening trust and relationship building in the advisory process and creating a better user experience. Following the design science methodology we validate the proposed framework through the design, implementation and evaluation of a proof-ofconcept prototype in a field experiment in a real-world travel agency.