Continuing our TTI Travel Tech Talk series, Lee Ainsworth, head of operations, The Advantage Travel Partnership, reflects on the changing landscape of travel retail technology and how digital transformation can optimise the sales process.
The retail technology landscape has drastically changed since the days of viewdata. Over the past 15 years, the industry has seen a major shift in the way retail travel agents harness technology to deliver an enhanced booking experience to customers and, in doing so, the process has become much more streamlined.
By the mid-2010s, the shift away from the aggregated approach, mainly driven and accelerated for pre-packaged holidays by tour operators, had taken hold. During this time, we’ve seen heavy technology investment by operators aiming to digitally deliver the type of content once confined to printed brochures, whilst allowing greater control to provide rich content to revolutionise and enhance the experience for customers across the booking lifecycle.
When looking at technology with a short- to mid-term lens, it’s unlikely we’ll see a unanimous rush to return to an aggregated booking environment. However, there is re-ignited appetite from retail travel businesses to automate and bring efficiencies to all aspects of the booking journey, starting with greater emphasis on the transfer of tour operator bookings to mid- and back-office systems, to reduce “lost counter time” when making new sales.
As the industry continues to face talent pressures and as businesses aim to scale and capitalise on the post-pandemic recovery, it is highly likely we’ll see continued investment and development of automation tools.
In recent years, we have also seen many examples of technology providers developing and integrating automation tools within their platforms, all with the focus of delivering robust efficiencies to back-office administration including supplier payments, bank reconciliation and customer receipting. There’s no doubt that with continued development and access to these tools, retail travel will continue to invest in front-line sales talent, focused on generating sales and ultimately, greater profitability.
Of greater importance will be to regain efficiencies lost during the pandemic which aim to track the flow of monies across the end-to-end chain. Relying on standardisation and integration, this goal will benefit the industry holistically and help reduce the duplication of financial protection.
Elsewhere, it’s encouraging to see a more collaborative approach between technology providers, to lean on each other’s strengths to deliver the right solution for their end customer, the sales agent.
We will continue to see advancements in CRM and interactive customer quoting tools, which will support the capability to deliver the same service offline as we do in-person. Many of these new tools have already been taken up by high street agents, allowing for flexibility over business operating hours and supporting traditional bricks-and-mortar travel agencies to transition to hybrid, online or homeworking agencies, without damaging the customer excellence they provide.
Retail agencies remain open to embracing new technologies, and we’ve seen these businesses rise to the challenge many times in the recent past. When looking at the hot topic of AI, we’ve observed a positive response and adoption of generative AI to support marketing and content generation, and we will continue to see the integration of this technology across their operations in the future.
When looking to the longer term, alignment across the industry to collaborate and place the emphasis on delivering an equally excellent experience for B2B partners, as we have done for the customer booking experience, will be vital to the long-term prosperity of retail businesses. There’s much we can learn also from the TMC sector when it comes to cohesive and efficient booking processes, so perhaps this ideal isn’t an unthinkable one if we can come together as a collective.
Travel Technology Initiative (TTI) is a not-for-profit organisation providing members with the latest thinking on technology as well as developing industry-wide standards for travel. For more information, please visit tti.org
In our TTI Travel Tech Talk series, we have looked at travel's next disruptive technology – the metaverse; whether Artificial Intelligence will replace the human travel agent; and how to stop cyber-criminals infiltrating IT systems.