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The on‐line purchase of travel related products has become an important sector to researchers to study the business success of the Internet. Early indications suggested that the Internet was likely to alter the travel industry from a structural perspective leading to a more consumer responsive environment. In this paper we examine the on‐line travel market and determine where the benefits have been for consumers and where problems still exist. We use theories related to market mechanisms to help assess the impact of the Internet on the travel industry.

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