The Feasibility of Technology-based Business Model for SMEs in Taiwan Tourism Industry

Aims: This study analyzes the feasibility of tourism business model created by an integrated telecom operator in Taiwan. This research analyze its model design logic at a strategic level and design elements of content at an operational level, hoping to help this case company analyzing their current design to make them fit for the future trend to capture the opportunities in travel market.

Study Design: Case study.

Place and Duration of Study: The study was conducted in Taiwan, between May 2013 and April 2014.

Methodology: In-depth interviews were adopted for this study. To obtain more comprehensive and accurate information, the interviewees included the top-level managers and executives.

Results: This study use Business Model Canvas, which consists of nine basic building blocks, to analyze the feasibility of tourism business platform built by the case Company. The case company utilizes ICT technology and cooperates with domestic six major tourism industries to integrate public and private sector resources to offer free abundant digital tourism information to travelers. Results indicate that the design logic is to associate with opportunity identification and enactment focus in streaming data integration to incorporate firm level strategic thinking, which takes into consideration the alignment of the organization’s resources (Fixed Line, Internet Access, Mobile, MOD, and Cloud) and provides six main services for travelers. It expects SMEs will spending in mobile ad and cloud service. This study also found the case company is significant weak in platform marketing to attract platform participants, both travel services providers and consumers. It needs to leverage social media to harness the platform effect for future rapid growth.

Conclusion: Traditional relevant players in the travel market, from travel suppliers to travel intermediaries up to travel agents, have to adapt their business models to these fundamental changes in the travel industry.