Understanding Digital Marketing Adopted by Small Travel Agencies Using Diffusion of Innovation Theory

The importance of adaptation in facing changes in the business world is a skill needed by every business actor. This also applies to businesses running in the tourism sector. Digital marketing is a concept that can be implemented to increase business expansion. Digital marketing can provide business people with wider space to be able to introduce their business to a wider target audience. However, not all companies are able and willing to adopt digital marketing values. This study aims to re-examine the Diffusion of Innovation theory within small travel agencies in East Java, Indonesia. A total of 150 companies were analyzed to assess their adaptation to changes in digital marketing strategies. The analysis was conducted using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The findings indicate that ease of use is the primary factor influencing these companies to shift their strategies towards digitalization.