Agents Will Remain Key In Travel Process
<FONT SIZE="+3"><B>Tech Effects Industry Shifts</B>
Whether you are a corporate travel manager, travel agency executive, travel agent or in another travel industry-related position, you will be affected by new industry technology. Should you be concerned?
The answer is that one needs to understand it, and determine the value or negative consequences of how it will effect you and your firm. Having accomplished that, you can use technology to your advantage.
While discussion of the reengineering or paradigm shift of the industry has existed for some time, we are just in the initial stages of what will be an increasingly active repositioning. The rapidity of the changes will occur because of technology. The changes that will see airlines aggressively moving more toward direct distribution, travel departments embracing rent-a-plate operations and corporations moving toward automated workflow are not occurring because of a rash of strategic marketing initiatives, nor are they just an attempt to increase operating efficiencies by streamlining operations and reducing costs. They are happening (and can only be successful) because of technology.
Prior to the existence of personal computers on virtually every desktop, computing networks, e-mail systems and client server technology, the marketplace would not have been successful at implementing the changes desired. For instance, corporations want to increase control and reduce costs by implementing automated expense reporting systems. I am continually asked, why the sudden interest in these systems? Until recently, the corporate infrastructure was not developed sufficiently to support them. They generally require an e-mail system, PCs that are accessible to everyone, advanced client server technology and computer networks. Now that the infrastructure exists, you will see considerable advancement in application development that will automate processes such as expense reporting. This will enable organizations to capture the return on investment needed to justify implementation of the hardware.
The same infrastructure is required to implement the new front-end reservations systems now being introduced. Software companies realize that the barriers to entry are eliminated or certainly reduced, and the race to access this market is on.
The same scenario applies to airlines and CRS companies entering the direct-to-corporate marketplace using advanced software applications. Airlines would probably not have made the move to aggressively attempt to change the distribution system by reducing commissions and instituting more direct sales without a long-range plan. And that plan involves technology. Many airlines are carrying the technology torch themselves with Internet access that will complement some of the booking tools mentioned above such as user-friendly, front-end automated reservations systems. The airline industry and the CRS companies want to implement a suite of products that will provide seamless integration, from front-end reservations to back-end expense reporting and input into a corporate database.
How will these changes affect you? The airlines with direct technology in the marketplace have incredible leverage. Providing a significant marketing tool is just part of the benefit. Why do you think United Airlines has a kiosk in O'Hare Airport, handing out free copies of United Connection? Ultimately, controlling the end user is where both airlines and travel agencies want to be.
Agencies need to pursue the same direction or face giving up more control than has already been lost. This means providing value-added services, which in this case means advanced technology. It has obvious cost-reduction benefits, but it ultimately assists in the element of control. Developing or private-labeling reservations and expense management systems is an important strategic initiative to consider.
Technology also can strengthen the position of the travel manager, who can provide input to the corporation about the appropriate technology plan and, after selling the concept, move toward deployment.<I>Mark Walton is director of business development for Workflow Solutions/Travel Systems Group, a software development and consulting firm in Bellevue, Wash.