Important Factors Affecting Hong Kong Consumers’ Choice of a Travel Agency for All-Inclusive Package Tours

Abstract

All-inclusive package tours contribute significantly to the success of travel agencies in Hong Kong. It is the major source of revenue for most travel agencies, and success or failure in the market determines the long-term prosperity or closure of the business. This study aims to identify the important travel agency selection factors in relation to choosing a travel agency for all-inclusive package tours, as perceived by Hong Kong consumers. A total of 183 Hong Kong consumers were surveyed and were asked to rate 29 attributes that might affect their choice of travel agency for all-inclusive package tours. Results showed that of the 29 attributes, “agency reputation” was rated as the most important attribute in travel agency selection, followed by “word-of-mouth communication” and “staff attitude.” Using factor analysis, six factors were derived, namely, Interactive Agent Quality, Formal Communication, Overall Convenience, Pricing, Product Features, and Image. Results of independent sample t-test and one-way ANOVA revealed that the Interactive Agent Quality, Formal Communication, and Pricing factors varied significantly by gender, and the Formal Communication and Pricing factors varied significantly by income level. Implications for future studies are given at the end of this article.