Corporate business model innovation: The case of travel agent

Improvements in electronic information technology and the deployment of the Internet have resulted in the success of e-commerce. Yet the business model of e-commerce must correspond to an ever-evolving Internet business environment. The question remains as to how organizations can establish and innovate their business models to keep up with new Internet technology such as Web 2.0. Few studies have focused on business model innovation. This study uses a qualitative research method to investigate the business model innovations of Lion Travel, the largest travel agency in Taiwan. In-depth interviews and data analyses help identify the major elements of Lion Travel´s business model, including phase changes. The results indicate that Lion Travel has made continual efforts in three areas to innovate its business model for information technological revolution. Those three areas are informatization, Web 1.0, and Web 2.0. This paper concludes with future studies and relevant suggestions for business model innovation in the service industry.