Monday, October 25, 2010

The Travel Industry Supply Chain - fat, doomed to failure, full of opportunity?

Recent years have seen many changes in the travel industry, saw almost all driven by the increasing dominance of the Internet. Perhaps more than any other industry is so perfectly aligned to travel technology that their future is inevitably determined by the continuous evolution of the online behavior of the masses. Reviews, websites, programs, countless travel blog, the amount of content and the ability of money services for your trip, you seem endless.

So what to do these changes mean for travel within the relationship, and supply chains that take a product from a local office in Bangkok for a potential client in New York or London

Currently, the office in Bangkok, can run up to 3 series of day trips from the city's relationship with a local agency in-bound in Bangkok. By partnering with this agency, are likely, the supplier chosen by the agency contract with a Western tour operators. The tour operator, promoting its> Program of Thailand as a brochure that end, the customer then sold on the main road to the travel agency. This is in a nutshell is a simplified version of the chain.

Typically, the provider must offer special rates for in-bound agency. The Agency will again be set by the tour operator Western pressure to provide their services at the best price and is often (but not often enough) to ask for guarantees of safety checks that the emergency measures and accreditation. The Travel Companythen have your boxed product to sell traditionally made with the travel agent, giving them a commission (all from 5% to 15%, but now the position at the lower end).

As the consumer has been lured to travel on the tour operator for travel in Thailand? The tour operator has spent part of his income for a PR (or individual) that has attached a story or two in the national and regional press on the beauty of Thailand, with a visibleReference to the operator. A strong chain, with many people who live with them so, all in the final by the end user and the difference between what is charged and funded the cost of local suppliers to provide the service.

But we have already seen major changes. Customers who make more online - from exploration to find out where they want to go to the contact with the small office in Bangkok also bargain a better price for the trip. L 'The suppliers now active also on a web page and is now on the market in the Western public, to guide and encourage a margin than previously managed. And what is to promote public relations staff that have been used to write content to travel agents as part of the value chain? How to change its value if it is the content provider who is driving the purchase decision, the growing number of travelers?

We already have the ruin of many "brick saw andMortar "travel agencies, and this trend will continue. Tour operators are finding profit margins to unsustainable levels, and their survival now depends on the ability to cash flow throughout the year, nearly as they can manage to sell their product well. Producers of content for Media trip turns into a commodity with a rapidly dwindling value. media publications that are struggling to survive, in some cases are less inclined to pay travel writer with so Going RateMany happy professionals ready to increase its profile as a compensation for the expected exposure.

I see the future as one with a sharply reduced supply. Many more entries are made directly with local suppliers, because of new possibilities for this technology to use. Tour operators and travel agents can not survive by demonstrating their expertise in a particular product or market, either Children and young people today is very unlikelyThe use of the old way of buying products and services, and technology advances make purchases at a distance easier and easier. We need to talk about a very good reason for people to another person before buying, and nowhere more than in the travel industry, which is so much around this new behavior patterns.

This may be good news for manufacturers who can take more control of their operations and revenues. There are some risks to travelers, and high profile casesNo doubt highlight these risks. Travel agents usually the problem of financial security, but for me this is a risk that most people would take on board and absorb. From my point of view, the issue of safety of passengers is much more serious. safety procedures at the end of the supply chain are usually driven by a large tour operator, with security call while driving. The cost of a tour operator brand in the UK with a disaster caused by negligenceone of their trips may be devastating. For local operators, it is less likely with their names on the British media to be taken. The responsibility will fall on the hard work for customers - and more will go on, without thinking, or simply hope that it never happened.

As for travel writers, with a market already the way for direct sales, real opportunities may come from the delivery of content to the suppliers. Not the one-man band, strange trip or rental cars for sale, butRather, regional and national corporations that are now in progress, written with professional content for the English-speaking market (and written by a native English speaker without the humorous elements, but harmful Chinglish / Spinglish / Kringlish etc.) have the opportunity to promote their services so that they can control and in a way that brings them closer to their customers without an army of brokers their profits erode.

I'm sure we all have visions ofFuture, and everything will be different in their own way. The only thing that the past teaches us that the future often, no one expects from us. There will be challenges for us all, but it is also undeniable is full of possibilities. Take it away!

No comments:

Post a Comment