ИСТИНА

McKinsey's report (2017) proved that companies, which implement personalization, can increase revenue from 10% to 15% and reduce costs by 15% to 20%. The current trends in personalization are: mobile check-in and room selection, in-room smart-home technology, chat concierge services, AI personal travel agents. However, travelers are concerned about the safety of private data. We developed the methodology to test 4 hypotheseses: Hypothesis 1- While providing personal data to travel agencies, privacy concerns of consumers are positively associated with willingness to disclose personal information; Hypothesis 2 - For travel agencies transparency of information use is negatively associated with privacy concerns; Hypothesis 3 - While providing personal data to travel agencies privacy invasion experience is positively associated with privacy concerns; Hypothesis 4 - For travel agencies and OTA’s intimacy approach towards providing personal offers is negatively associated with privacy concerns. Managerial implications of the research are: Customers’ privacy concerns influence the ability to obtain personal data for travel agency’s CRM base, Travel agencies should realize the importance of transparency, intimacy, and previous invasion experience on privacy concerns for creating effective communication with customers, It is essential to provide a privacy policy to customers, while forming personal offers for consumers, attention should be paid to creation of sense of informal dialogue with a client, Travel agencies should have a proactive managerial plan to deal with consumers’ privacy concerns.