Why technology is needed for Travel Companies

Travel companies can be divided into various types based on their business model and target audience Like Travel Management Companies (TMC’s), Destination Management Companies (DMC’s), Travel Agencies, Tour Operator, Online Travel Agencies, Corporate Travel Agencies, etc. Broadly divided as companies offering inbound or outbound or both kind of services to the B2C – B2B customers. Technology is of paramount importance for anyone selling travel, as it helps travel companies to sell to a larger target audience, increase efficiency, automation resulting in lesser cost and higher profit margins.  

We will explain WHY technology is needed for Travel companies – diving the benefits into different heads: 

Reaching the Larger Customer Base: 

As we all know post the evolution of New Medium i.e Internet – Physical distances or boundaries are virtually non-existent not Travel Companies can sell to their customers be it retail or business based in any part of the world and fulfill their requirements sitting in their office located anywhere on the map. Now Physical meetings between the customers and travel companies are not mandatory to sell. They can sell to retail customers through OTA’s – Online Travel Agencies or B2C websites. B2B Agents – by offering them the dashboard where they can log in and search and book the inventory or through XML API. Corporate customers can have access to CSBT/OBT’s to book the inventory coming from travel companies and also following their corporate travel policies at the same time. 

Ease of use: 

Technology enables anyone who can work on computers or can operate mobile phones to present themselves as a travel consultant. You don’t have to be a GDS expert or destination expert to be able to sell flights or given destinations. With all the information coming through the suppliers be it through their B2B Logins or through the suppliers API – even college graduates can act as a travel expert. 

Streamlining the processes: 

With post-implementation of technologies in travel companies – The operation processes are streamlined like: Markups, commissions, Documentation, etc. are standardized for a set of target customers which gives the feeling of a professional company to the customers at the same time minims the confusion and human error. Companies have gained efficiency varying from 10% to 50%-60% or more as well depending on their process and business model. 

Automation: 

This is one of the biggest advantages of the travel technology – Automation of multiple travel process which are repetitive in nature and doesn’t require much human intervention. Like Applying specific Markups/commission to the group of sub-agents, corporates, etc. Automation of travel documentations be it Quotation, Itinerary,  tickets, vouchers, invoices, etc. 

Focused on Specialized Work: 

Once the technology is implemented the human resources can divert their attention on more focused activities or task which requires their specialized attention than caught in the day to day routine tasks and activities. They can focus more on providing personalized attention to their clients by increasing their touchpoints through email, over the phone, face to face, etc. Managing the escalations more efficiently, retaining the customers, etc. Negotiating and getting better deals from the suppliers – offering more value to their customers. Increase the gamut of destinations which now they can sell to the customers. 

Higher Profit Margins: 

As travel been one of the most competitive vertical – Technology helps travel companies in optimizing their profit margins by reducing the operation cost – Be it through optimizing the human capital, minimizing the human errors resulting in a lesser cost of operations and the same set of human resources can sell to larger target customers. 

There are various other benefits of technology in travel, one thing for sure the way things are progressing and technology is getting involved in travel – to survive and grow one cannot ignore technology for long. So it better to be sooner than later.

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