Challenges Regarding the Romanian SMTEs' Struggle to Excellence through Innovation in a Global Economy

• Author: Ionica Oncioiu
• Pages: 519-526

Performance and Risks in the European Economy

519

Challenges Regarding the Romanian SMTEs’ Struggle to Excellence

through Innovation in a Global Economy

Ionica Oncioiu1

Abstract: The Internet and e-business adoption are the most important issu es of this century for travel

agencies. At the same time, e -Small and Medium Tourism Businesses do not receive the recognition they

deserve in a world where success is mandatory. This is a strange fact, if one considers that 70% of the world

business is represented by small and medium tourism bu sinesses owned by visionary persons who take

advantages of acting at a small scale and help create a more dynamic economy. With the current rapid

transformation of markets, the first element which influences the strategy of th e economic activity of travel

agencies is the character of the innovation. In order to learn the current business processes and the

requirements of travel agencies, interviews and questionnaires will he conducted, bu siness processes will be

observed and existing reports, forms and procedures will be reviewed. Competitive strength of Romanian

Small and Medium-sized Touris m Enterprises (SMTEs) lies in competitive advantages and distinctive

competencies that we possess in relation to other competitors. The paper also focuses on the question: what

could the contribution of Romanian SMTEs to the development and competitiveness of tourism destination

be?

Keywords: innovation; SMTEs; travel agencies

JEL Classification: O31; O33; L83

1 Introduction

The tourism phenomenon and the diversification of its forms have multiple consequences on the

natural environment, the society and the economy. Meanwhile, the diffusion of the Internet usage to

business environment has been tremendously increasing in the last few years. Thus, commercial

introduction of the Internet has started a process of change in the travel product buying habits of both

leisure and business users.

Small and Medium-sized Tourism Enterprises (SMTEs) must be able to present their products to target

markets with the lowest cost distribution through access to economically tolerable electronic channels,

which are known in the circles of the markets that interest them without having to become experts in

computers and telecommunications. This approach requires reliable and accurate expert advice, to

make the correct choice of material technology.

1 Professor, PhD, Titu Maiorescu University, Romania, Address: 2 2 Dâmbovnicului Str., Bucharest 040441, Romania, Tel.

+4 021 316 1646, Corresponding author: nelly_oncioiu@yahoo.com.