[The impact of the Internet on Iran travel Industry]

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Acknowledgement

I would take this opportunity to express gratitude my research supervisor, family and associates for their support and guidance without which this study would not have been possible.

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1. Introduction

Every second in Iran, $5,500 is spent by resident and international tourists on travel and tourism. The fifth-largest retail sales industry in Iran, travel and tourism generated over $580 billion in total expenditures in 2001. 1The enormity of this number parallels the scope of changes that have appeared in this commerce over the past few years — ever since the Internet expanded from an institutional and informative mesh to a buyer mesh, propelled primarily by the development of the World broad world wide web (www.sabre.com).

Why did the Internet so spectacularly sway the journey industry? What influence do the changes have on travelers? What does online registration signify to anyone who likes to take a trip? To response these questions, this report looks at the development of the journey commerce since airline deregulation in the 1970s, and how the commerce evolved into one ripe for change when Internet expertise reached some 20 years subsequent (www.business.hku.hk). The report explores expansion in the 1980s and early 1990s, when computer booking businesses established highly profitable technology systems that sustained industry sales and effective circulation; when thousands of independent journey agencies flourished and prospered; when borrowing business card businesses enjoyed income and earnings development commensurate with advanced Iran airline passenger traffic; and when the number of airlines declined or consolidated and often earned the smallest margins of any person in the journey enterprise (www.forrester.com). The report then examines at what occurred when the Internet suggested financial possibilities for online journey in the mid-1990s and how the rush among vintage and new participants became frantic. Finally, the report discusses what have appeared as today's top online travel companies and what they offer consumers.

2. Travel Industry Key Elements

Travel has been round since the dawn of man. But only since the jet age has it actually accelerated into a commercial undertaking, and only since airline deregulation has it become an equal-opportunity activity, given the cost of flying for the mean Iranian. Prior to airline deregulation, the Iran airline industry operated similarly to a public utility company with each carrier's routes and prices set by a governing body, the Civil Aeronautics Board (CAB). Like many foreign flag carriers whose operations are subsidised by their governments, the Iranian airline industry operated before 1978 with a somewhat imprecise relationship between costs and revenues. Airfares were set by route in consultation with the airlines flying them according to a standard cost-plus formula (www.mckinseyquarterly.com). For both foreign carriers and Iran-regulated carriers, ...