Performance and Risks in the European Economy
Challenges Regarding the Romanian SMTEs’ Struggle to Excellence
through Innovation in a Global Economy
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
Keywords: innovation; SMTEs; travel agencies
JEL Classification: O31; O33; L83
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: email@example.com.