The impact of the Internet on the distribution value chain: the case of the South African tourism industry

The Internet is an important new channel for commerce in a wide range of industries. While the opportunities afforded by this phenomenon seem readily apparent, there is still much debate and speculation on exactly how the use of the Internet and in particular the World Wide Web will affect established industries. In this article we analyse the value chain of the tourism industry, using as a case study the tourism industry in South Africa. Specifically, we examine the roles played by intermediaries in the distribution chain and explore the threats and opportunities that the emergence of the Internet, and other associated trends, present for the industry. Based on this, a profile is made for successful new intermediaries and, finally, we assess the implications of this profile on the control of the electronic channel.