International Journal of Advanced Engineering, Management and
Science (IJAEMS)
Peer-Reviewed Journal
ISSN: 2454-1311 | Vol-10, Issue-4; May-Jun, 2024
Journal Home Page: https://ijaems.com/
DOI: https://dx.doi.org/10.22161/ijaems.104.6
This article can be downloaded from here: www.ijaems.com 30
©2024 The Author(s). Published by Infogain Publication, This work is licensed under a Creative Commons Attribution 4.0 License.
http://creativecommons.org/licenses/by/4.0/
Analyzing Consumer Cost Efficiency: A Quantitative
Study of Travel Agency Bookings in Cabanatuan City
Eunice Nicole Alcantara, Armella Kate G. Cruz, Jusmir V. Fortunato, Daryl Mae P.
Ricohermozo, Russell Da. Santos, Caryl Justine O. Villamil, Ma. Cecilia P. Reyes, Mark
Alvin H. Abad
College of Management and Business Technology, Nueva Ecija University of Science and Technology, Cabanatuan City, Nueva Ecija,
Philippines
Received: 11 May 2024; Received in revised form: 13 Jun 2024; Accepted: 21 Jun 2024; Available online: 30 Jun 2024
Abstract— This study investigates the consumer cost efficiency of travel agency bookings in Cabanatuan
City, addressing questions regarding price competitiveness, service quality, and consumer preferences. The
research employs a cross-sectional design, utilizing a survey questionnaire to gather data from 100 travelers
who booked through various travel agencies in the city. Purposive sampling ensures representation across
demographics and travel preferences. Statistical analysis reveals insights into consumer behavior and cost
efficiency. Findings indicate that most travelers in Cabanatuan City are young, educated, and primarily
female travelers, with a preference for leisure trips and family packages. In-person bookings were favored,
emphasizing value- added services like travel insurance. Regarding price competitiveness, respondents
perceive travel agency prices as competitive and aligned with service quality, indicating a willingness to pay
for value. The transparency of fees and charges is highly valued, and the highest satisfaction is clarity
regarding booking fees. Customization options for travel packages are essential, particularly in
accommodation, transportation, and activities. Customer service quality, especially responsiveness and
friendliness, significantly impacts overall satisfaction. In conclusion, the study concludes that travel agencies
must tailor their offerings and promotions to meet diverse consumer demands, focusing on transparency,
price competitiveness, and service quality to enhance customer satisfaction and loyalty. The findings
underscore the importance of special offers, customizable packages, and excellent customer service in
attracting and retaining customers in a competitive market. Recommendations include implementing a
consumer cost efficiency plan that addresses these key factors to promote customer happiness and loyalty.
Keywords— cost- efficiency; travel agency; consumer; travel promotions, online booking; travel package;
customer service; transparency; accommodation; and customer service.
I. INTRODUCTION
Tourism and hospitality play an essential role in
the Philippine economy. According to the Philippine
Statistics Authority (2023), the contribution of this sector to
the country's gross domestic product in 2022 was 6.2%; this
indicated an increase from just over five percent during the
COVID- 19 pandemic years; however, it was still lower
than the pre-pandemic GDP share. As the country recovered
from the crisis, the hospitality and tourism industries have
flourished steadily over the years. The sector encompasses
many enterprises, including hotels, restaurants, travel
agencies, and tour operators.
The tourism and hospitality industry is a dynamic
sector that constantly adapts to changing consumer
preferences and technological advancements. Cabanatuan
City, nestled in the heart of the Philippines, is no exception
to this trend. With an increasing number of travelers seeking
cost-efficient accommodations, travel agencies play a
pivotal role in assisting consumers in organizing their trips,
offering plenty of options ranging from flights and
accommodations to tours and transportation. Cost
efficiency encompasses not only the financial aspect but
also the quality of service provided by a travel agency. In
the context of this research cost efficiency entails not just
minimizing expenses but also maximizing the value of