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

Abstract: 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. The tourism industry, unlike many other industries
is a composite of service providers that are normally grouped with other
industries in the national system of accounts. These service providers
include travel agents and tour operators, air, rail, road, and sea
transportation operators, hotels, guesthouses and inns, tourist attraction
operators, restaurants, shop selling handicraft, souvenirs, clothing,
footwear, leather items, and other items of interest to tourists. In this
Research we analyze the value chain of the tourism industry, using as a
case study the tourism industry in Islamic Republic of Iran. We analyzed
Iranian tourism Industry’s strength and weakness, opportunity and threats.
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.