Institution Buying Process in Purchasing Group Package Tour

Abstract

Educational and governmental institution is classified as the business customer with have the purpose of purchasing is to fulfil the needs of organization. Both institutions organize trips for their students and for their employees with a purpose. Travel agencies are needed in arranging those group tour activities due to the large number of tour members. The buying process in organizations goes through several steps that involve a number of individuals. This research is using a qualitative approach which in collecting the data about B2B buying process in institutions organization, the researcher utilizes in-depth interviews to the respondents from educational and governmental institutions. The purpose of this paper is to identify the process of purchasing activity in the institution organization for buying group packages tour. The step that usually done by the institution in buying group packages tour are starting from recognize the problems and needs, determine the product/service needed, specify the specification and quantity of the service needed, finding the potential vendors, analyse the offering proposal from vendors, and the last part is selecting the best vendor. This paper contributes to the literature by offering insights about the process of travel services purchasing activity in institution organization. The outcomes and applications for the business practitioner are identified for developing marketing planning in travel agencies to propose institutional market.