Yatra Journeys Into Middle
<B>Yatra Journeys Into Middle</B>
By Jay Campbell and Megan Hjermstad
Internet startup Yatra Corp. at the end of this month will go live with what it claims is the "first complete Web-centric travel management solution for middle-market corporations."
Defining the middle market as between $500,000 and $7 million in annual air spending, Yatra has signed five companies with total air volume of $20 million to test a system it said would offer booking and reporting tools superior to what buyers have seen in sites such as Biztravel.com and Trip.com.
Minneapolis-based Yatra is using the BookSmart reservations engine provided by Sight&Sound--now owned by Datalex--in a connection with Amadeus to power its Yatra.net site. The company also will provide customizable, instant management reports via the Web. It contracted with Phoenix-based Southwest Travel Systems for 24-hour fulfillment support and is applying for ARC accreditation.
What's really new here, said Yatra, is its own patent-pending technology called Cognizer. The system will mesh more than 50 factors at the time of booking to produce itineraries that vary depending on, for example, whether the traveler is a salesperson trying to satisfy client demands or a middle manager going to an internal meeting. Cognizer also can weigh itineraries based on a comparison of such traveler profiles with corporate travel booking and spending policies.
"That strikes me as the right way to go," said consultant Norm Rose of TravelTechnology.com, "The idea of combining personal and corporate preferences with supplier availability and integrating it into one screen is the key to the next generation of self-booking tools." For early adopters, Yatra will charge $10 per profile per month and will pass back all commissions. There will be no transaction fees.
In a later release of the product--two more are planned by year-end, including expense reporting integration--Yatra plans to sell to suppliers the ability to view its aggregated spending data from the sell side and make nearly real-time, targeted offers and/or messages to sought-after customers. In other words, United Airlines could profile American's premium frequent flyers as a target base to offer premium-class upgrades, and then measure the effectiveness of those offers.
In this way, Yatra would work almost like a consortium, soliciting offers from suppliers based on aggregated spending volume by the smaller market--one that is difficult for vendors to address through traditional sales organizations. Unlike a consortium, though, Yatra will not go to suppliers guaranteeing business in exchange for discounts.
Yatra was founded by a handful of technology experts with a bit of travel industry experience who squeezed three vice presidents out of Carlson Wagonlit Travel, including former General Electric and United Technologies corporate travel manager Frank Hicks, who is vice president of client services.
Vince Cook, formerly of the Carlson supplier relations group, is vice president of alliances and supplier services. Jeff Coruccini is director of client services after serving as Carlson's onsite rep at GE.
In terms of sales, Yatra now has a sales force of four but it also will sell through channels of "pre-aggregator" marketplaces, such as one Fortune 100 company's network of 3,000 suppliers, said Cook. "Looks like we'll have an agreement with these suppliers, which will build our volume very quickly," he added.
Cook also anticipates connecting to any of the GDSs, with Sabre likely to be next since Sight&Sound already has established such a link. Yatra also has secured a discount hotel program that includes 11,000 properties in all the major chains, Cook said. Yatra got its start-up money from Menlo Park, Calif.-based Network Angel Capital and is seeking additional investors.
"Biztravel.com and Trip.com would view themselves as competitors, but our business model and what we're doing is different," said Cook. "I don't see anyone doing what we're doing with Cognizer. Also, some travel agencies that service smaller clients might see us as competition."
Cook said he is negotiating to partner with a travel agency that has "substantial business in two cities."
Other potential competitors include the established large-market booking providers and traditional agencies, such as American Express and Rosenbluth, that have formed units to target the smaller market. Expedia.com also said it is interested in designing products for this market.
Rosenbluth Interactive, a division of Rosenbluth International, offers Biztravel@myCompany, including the online booking capabilities of the Biztravel.com Web site, purchased last August by Rosenbluth Interactive Inc.
Since January, Biztravel@myCompany has enrolled more than 100 clients with a travel spend between $50,000 and $2 million per year, said Justin Shaw, vice president and general manager of BizTravel.com.
Also aggregating volume, Biztravel@myCompany offers corporate rates to the smaller clients. Clients also can access standard monthly travel activity reports over the Web.
British Airways, Delta Air Lines and other airlines also have announced plans to target the smaller market.
"Can the airlines mount a credible travel management experience?" asked Rose. "That depends on whether they'll leverage their product and price in such a way that makes it difficult for any intermediary to compete. And could they offer the necessary support? Noone knows.