travel tech insights

Reach into your pocket, pull out your smartphone, and this is what you’re likely to find: an MP3 player; a GPS device; a calendar; an internet web browser; a video player; and perhaps even a platform for paying for goods and services at the POS in any given supermarket or megamart. In short, you’ll find a suite of applications capable of performing a series of complex tasks and functions designed to make your life easier, more convenient, and more connected, all of which are top priority for many of us in today’s fast-paced, digital world.

Managing your tour operator software solution, like nearly all strategy solutions in the travel industry, is not a one-size-fits-all proposition. Different companies of different sizes with different business and customer engagement goals require a variety of solutions that are aligned with their scale, potential for growth, resource availability, and market share. Simply put, you wouldn’t pick-up your child from school in a moving van, nor would you attempt to haul a large camper or recreational vehicle with a small sedan. In order to complete certain tasks properly, you need to utilize the tools and methodologies that will ensure success and make it easy for you to repeat that success in the future. 

The choices tour operators have in selecting the proper software solutions is no different than deciding what kind of vehicle is best for any given situation. Cost, ease of integration with existing systems - ERP, Global Distribution Systems (GDS), and other optimized solutions - efficiency, agility, and the ability to collaborate with individuals across all points of the value chain are all factors to take into account when selecting a software solution - though, once again, the scale and degree of these factors varies heavily depending on the size of the company and its overall financial and customer-relation goals.

If asked to name industries most affected by the Internet since the 1990’s, most people would think of online retailers like Amazon – draining sales away from small and large store-based retailers; or perhaps the music industry – careening from vinyl to CD’s, CD’s to mp3s and ultimately to Spotify.  Both are good answers. Another answer might be storefront travel agencies; certainly the widespread acceptance of online travel agencies (OTA) transformed the agency business model.  However, the ultimate fate of the traditional agency remains an open question. Ironically, technology – which crippled the travel agency twenty years ago – may be the very thing that saves them in the 21^st century.   

There’s no question every travel company – from travel agency to travel management company (TMC); tour operator to destinationmanagement company (DMC) –has financial statements produced by its travel management software system.  Whether for viewing monthly/annual financial results, meeting shareholder requirements or complying with bank requirements, financial statements are a fixture in the business world.  However, many travel company owners and managers don’t know how to read this financial information; some rely on accountants or advisors to explain the numbers; others just don’t really use the information at all.

What is advanced reporting in today’s travel industry? In this article it's defined as leveraging Big Data and data analytics to make smarter and faster strategic, operational, marketing and sales decisions. Big Data? It means there’s a huge amount of travel data available to mine for insights on: strategy; service offerings; pricing; marketing and user personalization. While every travel agency owner or manager would agree better information can only help to improve performance, odds are they are also part of the 81% that have no business intelligence (BI) solution in their travel business.