Mobile could pose biggest threat to travel stores of the future

Mobile could pose biggest threat to travel stores of the future

 

By Travolution
By Travolution

The move by technology giant Apple to establish a high street presence should provide the inspiration for the bricks and mortar travel stores of the future, but mobile could emerge as their biggest threat.

The fourth annual WTM Vision half-day conference in London debated the future of the high street with David Burling, managing director of Tui UK and Andy Washington, managing director of Expedia taking part in a panel debate.

Burling used the example of Apple, which has a network of stores throughout the UK in prime locations showcasing its products, as an example of how the future of the high street might look.

“The travel agency has evolved and it will keep evolving. If you have bookings that can be transacted across different channels the stores of the future may be different from the stores of today.

“What is clear is that the quality of the service and advice that good travel agents can give is still very important.

“Channels are becoming more blurred. The technology will become more available for consumers to start the booking in one channel and finish it elsewhere.

“The strength of the retailer is really around the product knowledge and customer service but there is also a role for the stores of the future offering more inspiration at the very early stages of the booking.

“Who would have believed that Apple of all people would have decided to open a load of retail stores?”

Mike Greenacre, former managing director of Co-operative travel  and a delegate at today’s event agreed.

“I very much agree with Dave about inspiration. The high street has greatly evolved and I think it will continue. The big change that will come is how retail stores embrace this technology.

“Where there is an Apple store it’s the busiest shop in town by a long long way.”

However, Andy Washington, managing director of Expedia UK, said: “The biggest threat to the high street us mobile.

“What’s stopping me going into a high street store getting them to do all the work and then googling it on my mobile to find it cheaper?”

Burling said Tui UK’s strategy is based around its differentiated product offering that stems from its close partnerships with hoteliers that has seen it develop a number of resort concepts.

“We want to be involved in designing a particular hotel experience with our partners. By doing that we get a better consumer experience, better repeat business and better reviews.”

Burling said concepts like its Splashworld water park resorts were showing “huge growth”.

“It’s identifying the customer requirements and working with hotel partners. We can do that because of our scale.”

– See more at: http://www.travolution.co.uk/articles/2012/04/20/5624/mobile-could-pose-biggest-threat-to-travel-stores-of-the-future.html#sthash.keVsk23U.dpuf

Cruise agents demand simpler technology and more aggregation

Cruise agents demand simpler technology and more aggregation

By Travolution
By Travolution

Travolution’s sister site Travel Weekly and Amadeus invited agents to discuss cruise technology o the day the GDS unveiled its Cruise Shop system

Agents bemoan lack of aggregation as lines steer trade to own systems

Agents are battling a lack of aggregation in the cruise sector as operators entice them to use their own in-house booking systems.

Amadeus Cruise Shop features most of the main cruise lines in the UK with the notable exception of Carnival UK’s brands: P&O Cruises, Cunard and Princess Cruises.Carnival UK trade arm Complete Cruise Solution pulled out of the Amadeus system in 2011 to save on distribution costs.

Amadeus hopes to entice lines back with a new trade platform developed with CWT Digital to give agents a one-stop shop to search for and compare product easily and quickly.

However, many lines are incentivising agents to use their own technology – resulting in agents switching between multiple systems to earn more commission.

This is slowing agents down, hampering their ability to compare deals and sell cruise and even putting some off selling cruise entirely, the round-table heard.

Paul Frost (pictured right), marketing director at Jetline Cruise, said: “Lines have pushed everyone away from Amadeus because they want to entice you to sell their product.

“This is no bad thing, but to ask an agent, who has a customer who does not know what they want, to log in to Norwegian Cruise Line, to Cruising Power for Royal Caribbean and Celebrity, to Complete Cruise Solution, to Polar for Carnival, well, no agent’s going to do that.

“To run an effective business you can’t have an agent spending three or four hours on one customer trying to find something when they don’t even know what they are trying to find. Agents are fighting against what should be a really simple process.”

Andy Stark, managing director of Global Travel Group, said: “There is aggregation for every other type of product but it seems to me there’s no aggregator for cruise.”

Frost said: “There used to be Amadeus, but cruise lines decided to invest money to keep the agents within their own framework.”

Cruise Shop has solved a key failing of existing systems, according to Frost.

Frost said one of the major failures of cruise booking systems is they do not enable agents to search for a selection of ports with the required dates.

“It will be interesting to see if Amadeus has solved this as this has been one of the biggest problems for agents,” he said.

“You can never ask an agent to make such a search. I would not want my agents to do that sort of enquiry because it would take them three or four hours and they would end up with nothing.”

Having been shown how the new Amadeus system enables a search by multiple destinations, Frost said: “You have just solved a huge issue the industry has.”

 



Quality of cruise content is key issue in battle for sales

Cruise operators could generate more sales through agents if they ensured the content they have on their own sites was available to the trade.

Leading agency consortium Advantage Travel Centres represents a wide range of cruise sellers, from Cruise.co.uk at one end of the market to single-brand high street stores at the other.

To help its members it has developed its own Gateway booking platform with Multicom.

But Claire Brighton, Advantage commercial account manager, said:

“All our agents are looking for some technology that would allow them to quote a cruise in a quicker way.

“We have built our own gateway and tried to put cruise lines on that. The issue is the content that you pull via XML has not got as much information as on their own sites.”

Dan Caplin, managing director of CWT Digital, said there was a wider issue with online content, with neither agents nor operators answering the questions people have.

“It’s the responsibility of cruise lines to get over what makes their product different. And agents need to get content online to change people’s perceptions.”

Jetline’s Frost said many deals loaded on to systems were overly complex, as cruise operators constantly tweaked offers and incentives to drive sales.

“At times there are five different options to book exactly the same cruise,” he said. “People just want simplicity.

“We are a reasonably-sized agent but we have to put huge resources in just to update our website because none of this comes through any technology feed.”

– See more at: http://www.travolution.com/articles/2013/10/11/7171/cruise-agents-demand-simpler-technology-and-more-aggregation.html#sthash.CV5Ni3sg.dpuf

Travel lacking expertise in technology consulting, claims Codegen

Travel lacking expertise in technology consulting, claims Codegen

Travel firms are often badly advised about their travel technology needs by advisors who are not sufficiently technically minded, according to one leading supplier.

Codegen, which supplies its Travelbox solution to travel companies including Virgin Holidays and Monarch Group among others, believes a lack of strategic strategy is why a lot of travel IT projects go wrong.

Bharat Patel commercial director at Codegen, said too often firms are blinded by the science and lose sight of the strategic control of the technology project they are working on.

He said: “Where a lot of these projects go wrong is the buying decisions are made by the directors but the actual decisions are made on the ground floor.

“This leads to a strategic divergence between the project’s intentions and what is actually implemented.”

Patel said there needs strong strategic control to ensure an IT project doesn’t just become a replication of an old system.

Monarch Group distribution director Stuart Jackson told Travolution how it is using the implementation of Travelbox to underpin a fundamental transformation in how the organisation operates and a modernisation of its various divisions.

Patel said: “If you bring an outsider in with some technological savvy they will be able to make the right decisions with you. You see so many poor consultants who are features-led.

“For Monarch using Travelbox means they can choose the way they approach their business. The benefit we had working with Monarch was their consultants were not entrenched in a way of working.”

Codegen believes it is now reaping the rewards from its decision to base its technology on the Linux open source platform from the outset when it was established in 1999.

Patel said the firm came from outside of the industry and although there was initial resistance to its approach the web and Java has now come to dominate more traditional forms of travel IT architecture.

“We started off with a standard version based on open source because all our guys did not like Microsoft. They also wanted to be independent, they did not want to be tied down to a particular vendor,” he said.

With the stability and power of Oracle sitting behind Codegen, it believes it has the ability to scale up and has done tests to give it the confidence it can cope with large numbers.

Patel said Codegen has a very clear focus on research and development at its headquarters in Colombo, Sri Lanka where it employs nearly 200 people, including a number of PhD students.

“A lot of people build technology based on what they learn, but we test out new technology. Our R&D is active 24/7, whether it’s client-led or not

“We work very closely with universities. They can implement what we are doing in their research. You have to be a true technology person to understand the latest technology, you need academic people to go into research papers to find out what this is all about.”

Codegen says its technology is particularly suited to large tour operators and that it gives them the flexibility to operate as a traditional package supplier but also more dynamically creating product and offers on the fly.

The Travelbox system can sit behind all divisions bringing efficiencies in terms of product loading and better more integrated management information.

A recent innovation known as Wide Search allows the user to switch seamlessly between various booking flows, whether that’s traditional packages, pre-packages or flexible packages, allowing agents to tailor trips without moving between systems.

Wide Search is helping Codegen to hone its mobile offering which uses artificial intelligence aimed at generating more relevant, personalised offers for its customers’ customers.

The firm is also looking to exploit voice search and the new generation HTML5 interface as mobile continues to establish itself as a vital channel for travel firms.

“We want to be in a position to be there when the next big thing comes along,” said Patel. “People are becoming more adaptable to technology. The whole mobility side has opened up a lot of avenues. We have devices around us all the time now.

“Business are still 80:20 when it comes to technology and innovation – they want to make sure they protect their core business first. They do not want to be the pioneer. CodeGen brings strong basics and does the pioneering for them.

“New entrants come in with a technology background and some marketing and sometimes they fall down because they have not got the travel experience.

“We see ourselves as innovators and innovators are looking beyond today, they are not stuck looking at the present because if you do that in the IT world you will never survive.”