Leisure Travel Distribution 2004, Today and Tomorrow

Smart Mobs – Now a Reality
August 16, 2011
Google Flights
September 13, 2011
Show all

Leisure Travel Distribution 2004, Today and Tomorrow

 

In 2004, I authored and published in conjunction with PhoCusWright a study entitled “Selling Complex Leisure Travel Online- Focus on Dynamic Packaging”. This research described an emerging leisure travel distribution platform based on an N-Tier architecture which blends proprietary content with external connections to deliver dynamic packages that are personalized to a consumer’s needs. I am glad that many of the concepts I described in the study have come to fruition.

Since 2004 I have been involved with a number of technology procurement projects around leisure travel distribution and dynamic packaging. These projects have kept me up to date with offerings from vendors across the globe. The N-Tier architecture I described has now become standard with many vendors also embracing a Software as a Service (SaaS) model for delivery of their solution. Despite these advancements there are a few areas that seem to be lacking in current vendor offerings.  These include:

  • Personalization – Packaging based on true customer personalization using historical patterns, implicit and explicit preferences to alter content to meet customers’ specific needs.
  •  Connecting into social graphs.  An additional way to make offers more personalized is to tap into the consumer’s social graph. Though the concept has been discussed by many, I have yet to see a solution that identifies a preference through social media; such as being a fan of a specific music group or sports team and then tying that preference into a booking suggestion (e.g. you are planning a trip to NYC and your favorite group will be giving a concert while you are there).
  • Connecting to emerging content sources – With the growth of sites such as Home and Away and Airbnb, travelers now have a choice of accommodations beyond the traditional hotel room. Few vendors have actively pursued connections into these emerging platforms. Activities are also a ripe area of connectivity innovation. Activities represent an extremely fragmented market, but simply connecting into Viator is no longer a complete solutions with a range of sites now aggregating activity content.
  • Mobile – With every sector becoming a retailer, selling package components or full blown dynamic packages on mobile devices should be a priority. Vendors need to open up their APIs to fully integrate with a customer’s existing Mobile Web or native apps enabling component and package sales on mobile devices. Tablets are un-tethering the planning process and thus specific applications for iPad and Android tablets can take advantage of location and provide the rich media needed for these devices.
In general, those vendors who wait for customer requests for new connectivity sources,run the risk of turning their product into a commodity. Having an  N-Tier architecture that is connected to the GDS for air, hotel aggregators such as GTA or HotelBeds for accommodations and rental car aggregators such Car Trawler for car hire, no longer classifies as unique capabilities. Connecting to emerging content sources, creating a platform that can deliver truly personalized offerings and making this all available on  mobile platforms is way for vendors in this space to truly differentiate their products.