• Journal of Distribution Research
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• v.12 no.3
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• pp.49-67
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• 2007

The rapid spread of Internet has significant effects on changes in the distribution channel. The direct transaction between manufacturer and consumer could create the threats of dis-intermediation to existing channel members as middlemen. Air-ticket market also has changed in Internet marketing channel era. This study is mainly concerned with understanding the reaction of travel agency to Internet marketing channel. The objectives of this study is to propose and test the model that the perceived threats of dis-intermediation affect the reactions of travel agency: increasing channel competence, decreasing concentration, and deriving diversification. The model basically adopted the arguments of intertype competition, considering the arguments of re- intermediation in order to explain the reaction of using Internet. The result of survey from 158 travel agencies supported most of hypotheses. All the hypotheses are accepted except the relationship between threats of dis-intermediation and increasing channel competence.