Magazine Issue: December, 2011
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Faisal Memon, Illusions Online says 2012 should be the year the industry pulls its head out of the sand over the technology revolution.
WHILE REVIEWING WEBSITES OF TOUR OPERATORS and travel agencies for ATN (Arabian Travel News), I have struggled to find a website of a traditional brick and mortar travel company which offers their customers a simple and cost-effective way to book online travel.
Many of the managers and owners of these companies have, over the past few years talked of adopting technology to speed up their online offerings but sadly none seem to have been able to walk their talk.
A new year presents opportunities to make a fresh start and look to the future. And from a travel industry perspective, 2012 could be the year travel agents and tour operators finally wake up and smell the coffee, realising they have to embrace technology to stay in the game. But the million dollar question is - will they?
Until now, most have fallen victim to the 'ostrich effect' - sticking their heads in the sand and hoping the technological revolution will pass them by. But when they do finally surface they could find they've been left behind and are well-and-truly obsolete as a bricks-and-motar agency and no means of communication with their customers.
The biggest nightmare facing agents today is the fierce competition posed by Online Travel Agencies (OTAs). Their dominant existence in the market place meets the immediate needs of information hungry consumers. Unlike retail agencies, OTAs provide real-time product information, rates and availability and are accessible 24/7. Customers don't have to wait for agents to pick up the phone or reply to an email, they can access information at the convenience of their computer, tablet or smartphone, wherever, whenever, and if they so wish, make a booking there and then, using their credit cards.
This scares agencies to the point of paralysis. But fear is only one excuse. Another is unwillingness to invest money, with some agency owners apathetic to the requirements of their travel divisions when it represents such a small slice of the pie of their business empires.
Of course, there are agency managers out there who would prefer not to automate their operations. Let's face it, the thought of having black and white figures relating to revenue and profit automatically emailed to your boss on a daily basis is positively frightening for many, for reasons we won't go into here...
But for those who do take the need to invest in technology seriously, the way forward is clear. Firstly they must define their business strategy. Is the focus corporate, leisure, niche or a mixture of all three? The next step is to fully automate all operations. Technology can no more be just another piece to the puzzle; it must be central to any business strategy moving forward, as important, if not more, than sales and marketing or operations.
My hope for 2012 is that agents will take the plunge and take technology seriously.
If they combine their online presence with the still valued face-to-face service it could prove a winning formula for the future. If they don't, well I guess, the writing is on the wall.
Source: http://www.hoteliermiddleeast.com
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Arabian Travel News - Are you victim to the ostrich effect?
