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E Commerce Assignment

The Tanzanian tourism industry faces significant challenges in adopting e-commerce due to intense competition from established international online travel agencies (OTAs) like Booking.com and Expedia. Local tourism operators struggle with limited digital marketing skills and financial resources, making it difficult to gain online visibility and secure bookings. This competitive landscape often forces them to rely on third-party platforms, which reduces their profit margins and control over customer relationships.

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6 views2 pages

E Commerce Assignment

The Tanzanian tourism industry faces significant challenges in adopting e-commerce due to intense competition from established international online travel agencies (OTAs) like Booking.com and Expedia. Local tourism operators struggle with limited digital marketing skills and financial resources, making it difficult to gain online visibility and secure bookings. This competitive landscape often forces them to rely on third-party platforms, which reduces their profit margins and control over customer relationships.

Uploaded by

masoyajumanne3
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

High Competition

The Tanzanian tourism industry faces significant challenges in adopting e-commerce


due to high competition, particularly from established international online travel
agencies (OTAs) and global tourism platforms (The Routledge Handbook of Tourism
Marketing). These large, well-resourced entities possess sophisticated e-commerce
infrastructure, extensive marketing budgets, and established brand recognition, making
it difficult for smaller, local Tanzanian tourism businesses to compete effectively for
online visibility and bookings (Tourism and Hospitality Marketing: A Global Perspective).
The sheer volume of options presented by these global players can overwhelm potential
tourists, diverting attention and bookings away from local Tanzanian operators who may
lack the technical expertise or financial capacity to develop equally robust online
presences (E-Tourism: Information Technology for Strategic Tourism Management).
This competitive landscape necessitates substantial investment in digital marketing,
search engine optimization, and user-friendly online platforms, which can be prohibitive
for many Tanzanian tourism enterprises (The SAGE Handbook of Tourism Studies

Challenge: High Competition

High competition is a major challenge in adopting e-commerce in the


Tanzania tourism industry. The rapid growth of global online travel platforms
such as [Link], Airbnb, and Expedia has created intense competition
for local tourism operators. Many small and medium tourism enterprises in
Tanzania lack strong digital marketing skills, brand recognition, and financial
capacity to compete effectively on these platforms. As a result, local
businesses struggle to attract online customers, gain visibility, and secure
bookings, which discourages full adoption and effective use of e-commerce
systems in the tourism sector

challenge of adopting e-commerce in the Tanzanian tourism industry due to


high competition is that local businesses struggle to achieve visibility and
effectively attract customers in a global market dominated by established
international Online Travel Agencies (OTAs) [1]. These large, well-resourced
platforms, such as Expedia and [Link], have massive marketing
budgets and sophisticated technology that afford them top rankings in
search engines and widespread consumer trust [1]. Consequently, Tanzanian
tour operators and hoteliers find it difficult and expensive to compete for
online visibility and bookings, often having to rely on these third-party
platforms and pay significant commissions, which reduces their profit
margins and control over the customer.

Kajembe, J. W. (2015). Assessment of e-commerce adoption and its effects on performance of Tour
Operators in Arusha, Tanzania (Doctoral dissertation, The Open University Of Tanzania).

Shayo, N. T. (2021). E-commerce applications on tourism industry performance in Tanzania. International


Journal of Multidisciplinary Research and Explorer, 1(10), 80-85.

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